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HomeMy WebLinkAbout2017-04-05 PacketPage 1 of 4 CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBER 300 Seminary Avenue Ukiah, CA 95482 April 5, 2017 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Introduction of New Employee – Alicia Tlelo. b. Status Report, Discussion and Possible Action Regarding the Ukiah Valley Sanitation District’s Litigation Against the City of Ukiah Related to the Operation of the Sanitary Sewer System. 4. PETITIONS AND COMMUNICATIONS 5. APPROVAL OF MINUTES a. Minutes of March 15, 2017, a Regular Meeting. b. Minutes of March 29, 2017, 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. Update on the Ukiah Valley Golf Course and Request Approval for the City Manager to Execute an Extension of the Amendment to the Lease Agreement for the Upcoming Fiscal Year. b. Adoption of Resolution Making Reappointments to the Design Review Board and Planning Commission. c. Adoption of Resolution Authorizing Access to Criminal History Information for Marijuana Dispensary Licensing. d. Receive Report Regarding the Annual Software Renewal and Enterprise Support Agreement for the City of Ukiah’s Checkpoint Perimeter Firewall in the Amount of $28,099. Ukiah City Council Agenda for April 5, 2017, Continued Page 2 of 4 e. Award Professional Services Agreement in the Amount of $39,586, to Omni-Means, Ltd., to Complete an Update of the City of Ukiah’s Speed Zone Surveys and Approve Budget Amendment. f. Award Professional Services Agreement in the Amount of $5,276 to EBA Engineering to Prepare Bid Documents for Well Abandonment and for Removal of the Remediation System and Approve Budget Amendment. g. Notification of Purchase of Replacement Pump for the Percolation Pond Distribution Structure at the Wastewater Treatment Plant from Cascade Pump Company in the Amount of $28,593.75. h. Notification of Acquisition of Professional Services from SHN Consulting Engineers and Geologist for Materials and Compaction Testing Services for the Sewer and Water Main Replacement Project, Specification No. 16-10 in the Amount of $16,520. i. Reject Bid for Orchard Substation Power Transformer Repair and Testing, Specification No. 17-03 (EUD). j. Authorize Execution of Amendment to the Agreement with GHD in Professional Land Surveying Services for the Talmage Interchange Project and Approve Budget Amendment in the Amount of $13,965. k. Discussion and Consideration of Adding North Coast Opportunities to the 2017 Council Special Assignment List and Appointing Tami Bartolomei as the Council’s Appointed Representative for the City of Ukiah on the Governing Board. 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. Consider the Establishment of the Measure P Oversight Committee and Appointment of Committee Members. b. Discussion and Direction Regarding Next Steps with the Downtown Hotel Feasibility Study. c. Approval of Amendment with Green Valley Consulting Engineers in the Amount of $14,875 for Additional Design Services Related to the 2016 Sewer and Water Main Replacement Project, Specification No. 16-10, and Corresponding Budget Amendment. d. Presentation and Approval of the Electric Utility Public Benefit Programs (EUD). Ukiah City Council Agenda for April 5, 2017, Continued Page 3 of 4 13. NEW BUSINESS a. Authorize City Manager to Execute a Memorandum of Understanding Between the County of Mendocino, the City of Ukiah and the Ukiah Valley Trail Group Regarding the Maintenance and Improvement of Low Gap Regional Park and Adoption of the Ukiah Valley Trail Group 2015 Low Gap Park Trail Plan. b. Discuss and Introduce, by Title Only, an Ordinance Amending Chapter 1, Division 9, Adding a New Section of the Ukiah City Code Entitled “Corrections, Amendments, or Modifications” Related to Subdivisions. c. Receive and File 2015-16 Comprehensive Annual Financial Report (CAFR) and Related Auditor Communication. d. Discussion of Interest in a Resolution Regarding Potential Loss of Federal Funds for Local Programs. e. Presentation and Discussion of the Ukiah Fire Department and Ukiah Valley Fire District Operations Quarterly Reports Resulting in a “True Up” for Payments to Ukiah Valley Fire District. f. Discuss the Continued Reorganization of the City Manager’s Office Including Consideration of the Reclassification of the Senior Management Analyst to Deputy City Manager as Included in the Fiscal Year 16/17 Budget and the Addition of a Communication Manager. 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 (Palace Hotel) 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, Sonoma County Superior Court, Case No. SCV 256737 (UVSD) c. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: Howard Jarvis Taxpayers Assn., et al. v. City of Ukiah, Mendocino County Superior Court, Case No. SCUK-CVG-17-68588 (Measure Y and Z) d. Conference with Real Property Negotiators (Cal. Gov’t Code Section 54956.8) Property: 429 South Dora St. Ukiah, CA 95482 Negotiator: Sage Sangiacomo, City Manager; Negotiating Parties: City of Ukiah and Ukiah Unified School District; Under Negotiation: Price & Terms of Payment Ukiah City Council Agenda for April 5, 2017, Continued Page 4 of 4 15. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Friday, 8:00 am to 5:00 pm. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 31st day of March, 2017. Kristine Lawler, City Clerk Page 2 of 5 City and District devote their time, money and resources to solving the costly issues confronting the sewer system and improving their working relationship. The City’s goal is to eliminate the lawsuit altogether. The City has offered to include terms that would allow the District to refile the lawsuit, if the parties fail to reach agreement, but the City never suggested that the District would simply refile the lawsuit once state funding was obtained. Also, the City never suggested that dismissing the lawsuit is all that would be necessary to obtain State funding. In addition to dismissal of the lawsuit, there would have to be an agreement between the City and the District regarding the recycled water project that would satisfy the State Water Resources Control Board. At the conclusion of the September 21st discussion, the Council directed the City Manager to contact the UVSD District Manager to explore possible alternatives. The City Manager attempted to contact the District Manager by email, but due to a reported medical leave, Mr. McMichael was not available to provide a timely/detailed response. On October 5th the City Attorney received an email correspondence from Duncan James (Attorney representing the District) responding to the City Manager’s email to Mr. McMichael. Mr. James indicated in the email that the District had accepted the City’s request to meet and formed a committee consisting of Frank McMichael, District Manager; Jim Ronco, Board Chair; Bob Page, Board Member; and legal counsel. The City Manager issued a supplemental memo to the City Council for the October 5th City Council meeting regarding this email exchange and included a recommendation to Council for the formation of a City Council ad hoc committee to meet with the District (UVSD Litigation Update Box File #5). At the City Council meeting, Mr. Doug Losak with the Law Offices of Duncan James delivered and read aloud a letter containing some additional allegations, but in the end, agreed to meet with the City. The City Council formed an ad hoc committee consisting of Councilmembers Crane and Doble. The City immediately made efforts to schedule the first meeting between the District’s committee and the City’s ad hoc. At the October 19, 2016, meeting, the City Council discussed the latest correspondence from the District including the District’s request to hold the ad hoc meetings in private and require the City to consent to a confidentiality agreement. The City Manager provided the Council with the correspondence to date from the District regarding the confidentiality condition (UVSD Litigation Update Box File #6) for consideration. At the time of the meeting, the District had not provided a draft of the proposed confidentiality agreement. By consensus, the City Council continued to object to private meetings that do not provide the public with the opportunity to be informed. However, the City Council did direct the ad hoc to meet with the District’s ad hoc to discuss the process for such meetings and report back to the City Council at its regular meeting on November 2, 2016. Prior to the ad hoc meeting, the City Attorney received a letter from Duncan James’ Office regarding the District’s request for a confidentiality agreement for the ad hoc meetings along with a draft of the agreement (UVSD Litigation Update Box File #7). The City Attorney issued a response (UVSD Litigation Update Box File #8) indicating that such agreement would need to be discussed at the first joint ad hoc meeting and ultimately considered by the City Council. In addition, the City Council received correspondence from the District Manager related to the recycled water project dated October 21st (UVSD Litigation Update Box File #9). Most of the questions referenced in the letter had already been either answered or provided to the District. Nonetheless, City staff welcomed the dialogue and discussion in a sincere effort to move this critical project forward. Staff provided a response to the District Manager on October 27, 2016 (UVSD Litigation Update Box File #10). On October 28, 2016, the City’s ad hoc met with the District’s ad hoc. At the meeting, the District presented the City with a take it or leave it condition imposing confidentiality on the ad hoc discussions. On November 2nd and 4th, the City Council considered the District’s confidentiality condition on the ad hoc discussions and approved a letter (UVSD Litigation Update Box File #11) that confirmed agreement to the condition if the District Board would agree to either stay further proceedings in the lawsuit or dismiss the lawsuit without prejudice. The City’s proposal, if accepted, would halt the costly litigation fees currently being incurred by both agencies, but would not preclude the District from terminating the stay or refiling the Page 3 of 5 lawsuit if the District wasn’t satisfied with the discussions/negotiations. The District issued a response to the City’s proposal on November 8, 2016 (UVSD Litigation Update Box File #12) that continues to impose a confidentiality condition on the joint ad hoc meetings. The District further stated “the lawsuit needs to otherwise remain in motion” except to provide a limitation on any discovery requests for a period of 4 weeks. It’s important to note that the District’s legal team has predominately utilized the Public Information Act (PRA) rather than formal discovery to obtain information. Because the City of Ukiah is a public agency, the District’s attorneys have used the PRA process to obtain information, which does not require the District to justify its requests by showing how they are relevant to the issues in the case. In a typical lawsuit, the discovery process is used to obtain documents and is overseen and controlled by the court to prevent burdensome or oppressive requests. The City continues to expense a tremendous amount of staff resources responding to the District’s PRA requests for information dating back to 1955. To date, the District has submitted over 41 requests (with multiple parts) under the PRA process. The City has diligently been responding to the requests for the past 12 months. Suspension of the formal discovery process will not prevent the continued practice by the District nor will it limit the escalating litigation expenses during this proposed period. With regard to the recycled water project, the City received additional correspondence from the District Manager indicating the need for more information (UVSD Litigation Update Box File #13). However, the correspondence did not identify any specific questions or information that had not otherwise been provided. The City Manager issued a response on November 15th (UVSD Litigation Update Box File #14) and included a BOX link to all relevant information on the recycled water project (https://cityofukiah.box.com/v/uvsdpointsofinterest). Most, if not all, of the information and/or documents have already been provided to the District. Furthermore, the City Manager requested a determination from the District regarding its position on the project and offered to provide any other information and/or presentations that would be necessary for a determination. On November 16th, the City Council instructed the City Attorney to contact the lawyers for the Ukiah Valley Sanitation District to work out the details for mediating the outstanding disputes including selecting a mediator. Furthermore, and as a first step in the mediation, the City Council requested the District to provide a detailed written response and any counter proposals to the City’s written proposal that was submitted to the District in March 2014, during the original mediation between the City and the District. On November 17th, the City Attorney sent correspondence to the UVSD’s lawyer to initiate mediation as directed (UVSD Litigation Update Box File #15). As of the publication of the report for the December 7th City Council meeting, the District had not responded. Additional correspondence between the City and District had also been exchanged related to the recycled water project (UVSD Litigation Update Box File #16 & #17). Despite continued attempts to engage and provide the District with information, the District had yet to conclude that the recycled water project is the superior alternative of disposing treated wastewater. In an effort to bring this item to a conclusion, the City Manager proposed in a December 1st correspondence to the District Manager a joint meeting between the City Council and the District Board to discuss and resolve any remaining questions/issues related to the project. As of the publication of the report for the December 7th City Council meeting, the District had not responded. Related to the Fiscal Year 16/17 Budget, the District has not yet identified the District’s timeline for their previously identified budget review process that reportedly extends through various staff, committee and District Board stages before a final joint meeting with the City can be scheduled. The previously approved continuing resolution for the budget was scheduled to expire on December 31, 2016. The City had made inquiries as to the District’s progress and anticipated review timeline (UVSD Litigation Update Box File #18). Staff recognized some level of District review was underway given recent engagement (since November 11th) on the budget, but the District Manager had not provided a timeline for completion of their review and/or indicated readiness for a joint budget meeting. As of the publication of the report for the December 7th City Council meeting, the District had not responded. Page 4 of 5 At the December 7th City Council meeting, the Council adopted a resolution to secure funding for the construction of the recycled water system using water revenues as an alternate to the City’s wastewater revenues. While this was a less desirable option for securing project funding, it was considered a better alternative to losing the project funds altogether. The Ukiah Valley Sanitation District’s lawsuit remains the only impediment to securing project funding with the wastewater revenues given the City must be able to demonstrate to the State an unconstrained revenue source to guarantee repayment of the loan funds. City staff reported that they were vetting the details of the water revenue alternative with the State Water Resources Control Board. The UVSD continued to be unresponsive to the City Manager’s proposal for a joint meeting between the City Council and the District Board to discuss and resolve any remaining questions/issues related to the recycled water project. Related to the Fiscal Year 16/17 Budget, the City Council and the District Board approved a continuing budget resolution at their respective meetings on December 7th and December 27th. The City’s continuing resolution was set to expire on January 18, 2017, unless otherwise extended. The City requested a joint meeting with the District Board prior to the expiration of the resolution. While the District had taken action to extend the continuing resolution beyond December 31, 2016, it had yet to identify a timeline for the completion of its budget review or response to the City’s request for a joint meeting. At the January 4, 2017, City Council meeting, the City Manager and staff reported that terms for mediation continue to be discussed and the District had not responded to the City’s requests for a joint meeting on the Fiscal Year 16/17 budget or the recycled water project. It was further reported that the City received a notice from the District Chair related to communication in the absence of the District Manager due to an extended medical leave (UVSD Litigation Update Box File #19). At the January 18, 2017, City Council meeting, the City Manager and staff reported that terms for mediation continue to be discussed and the District had not responded to the City’s continued requests for a joint meeting on the Fiscal Year 16/17 budget or the recycled water project. Development of the City’s wastewater operating budget is a joint process between the City and the Ukiah Valley Sanitation District (UVSD). The process had been delayed significantly despite efforts by the City to move it forward expeditiously. In the interim, the City had been operating its wastewater enterprise on a continuing resolution, carrying forward the adopted appropriations from Fiscal Year 2015-16. At its meeting of December 7, 2016, the City Council determined that continuing to do so impeded its ability to effectively, efficiently, and responsibly provide wastewater services to the citizens of Ukiah and the UVSD and voted to move the budget process forward with its consideration and potential adoption at its regularly scheduled meeting on January 18, 2017. The City notified UVSD of its intentions and again called on it to schedule a meeting with the City Council to complete the budget review process. As of the January 18th City Council meeting, the UVSD continued to be unresponsive to the requests to meet. As such, the City Council unilaterally considered and approved the FY 16-17 Wastewater Budget (UVSD Litigation Update Box File #20). At the February 1, 2017, City Council meeting, the City Manager and staff reported that terms for mediation continue to be discussed with a location and mediator agreed to, but a date not finalized. Furthermore, the District had not responded to the City’s continued requests for a joint meeting on the Fiscal Year 16/17 budget or the recycled water project. At the February 15, 2017, City Council meeting, the City Attorney reported that a date (May 11th) had been finalized for the first session of mediation. In addition, the City had accepted the District’s conditions that the mediation be subject to a confidentiality agreement in addition to the Evidence Code mediation privilege and to conduct the mediation in Santa Rosa using a mediator from the Judicial Arbitration and Mediation Service (JAMS). The City Manager also reported the District had not responded to the City’s continued requests for a joint meeting on the Fiscal Year 16/17 budget or the recycled water project. Page 5 of 5 At the March 1, 2017, City Council Meeting, the City Manager reported that the District remains nonresponsive to the requests for a joint meeting on the Fiscal Year 16/17 budget and recycled water project. At the March 15, 2017, City Council Meeting, the City Manager reported the District continues to remain nonresponsive to the City’s requests for a joint meeting on the Fiscal Year 16/17 budget and recycled water project. The City Manager also reported that District Manager McMichael had responded to the City’s request for a staff meeting to prepare the bid package to rebid the installation of the barscreen at the Wastewater Treatment Plant as previously directed by the City Council and District Board. The barscreen meeting took place on the morning of March 15th. Discussion: The impacts of the District’s litigation continues to negatively impact the ratepayers, system operations, and the community. At the April 5th City Council meeting, Staff will provide the latest status report on the Ukiah Valley Sanitation District’s Litigation against the City of Ukiah related to the operation of the sanitary sewer system including the most recent correspondence from/to the District (if any). As of the date of publication of this report, the UVSD continues to be nonresponsive to the City’s continued requests for a joint meeting on the FY 16-17 Budget and recycled water project. At the District’s March 16, 2017 Board meeting, the City Manager reiterated the City’s request for the joint meeting during public comment on non-agenda items. In addition, the City continues to respond to budget and billing inquiries from Mr. Dickerson and public information requests from the District’s legal counsel. The Council may elect to discuss the matter further and, if desired, provide direction to Staff and/or consider any related action(s). As part of this agenda item, the Council does not intend to consult with legal counsel regarding the litigation itself and does not intend to waive evidentiary privileges for attorney-client communication or attorney work product. Page 1 of 4 CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 March 15, 2017 6:00 p.m. 1.ROLL CALL Ukiah City Council met at a Regular Meeting on March 15, 2017, having been legally noticed on March 10, 2017. Mayor Brown called the meeting to order at 6:02 p.m. Roll was taken with the following Councilmembers Present: Stephen G. Scalmanini, Douglas F. Crane, Maureen Mulheren, Kevin Doble, and Jim O. Brown. Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk. MAYOR BROWN PRESIDING 2.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Darcy Vaughn, Assistant City Attorney. 3.PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a.Status Report, Discussion and Possible Action Regarding the Ukiah Valley Sanitation District’s Litigation Against the City of Ukiah Related to the Operation of the Sanitary Sewer System – Administration. Presenter: Sage Sangiacomo, City Manager. No action taken. 4.PETITIONS AND COMMUNICATIONS 5.APPROVAL OF MINUTES a.Minutes of February 27, 2017, a Special Meeting. b.Minutes of March 1, 2017, a Regular Meeting. Motion/Second: Mulheren/Crane to approve Minutes of February 27, 2017, a Special Meeting; and March 1, 2017, a Regular Meeting as submitted. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. 6.RIGHT TO APPEAL DECISION 7.CONSENT CALENDAR a.Report of Disbursements for the Month of February 2017 – Finance. b.Annual Review of the Mobilehome Park Rent Stabilization Fees per Resolution 2012-17 and Approval to Waive Fees for 2017 Billing Cycle – City Clerk. Pulled by Councilmember Crane and placed as Agenda Item 13e. City Council Minutes for March 15, 2017, Continued: Page 2 of 4 c. Authorize the City Manager to Execute Annual Renewal Agreement (COU No. 1617-175) with Liebert Cassidy Whitmore (LCW) for Legal Services as Needed, Notification of Exceeding $20,000, and Approve Corresponding Budget Amendment – Human Resources. d. Request Approval of Adjustment to Principal Planner and Building Official Salary Range and Change Title of Principal Planner to Planning Manager – Human Resources. Motion/Second: Crane/Mulheren to approve Consent Calendar Items 7a and c-d. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Presenter: Phil Baldwin. 9. COUNCIL REPORTS Presenters: Vice Mayor Doble and Councilmember Crane. 10. CITY MANAGER/CITY CLERK REPORTS Presenters: Sage Sangiacomo, City Manager and Kristine Lawler, City Clerk. 11. PUBLIC HEARINGS (6:15 PM) 12. UNFINISHED BUSINESS a. Status Report of New Courthouse Project and Consideration of Memorandum of Understanding with North Coast Railroad Authority (NCRA) Regarding Future Improvements to the Rail Crossing at Clay Street – Administration. Presenter: Shannon Riley, Senior Management Analyst. Public Comment: Roger Vincent and Phil Baldwin. Motion/Second: Crane/Mulheren to authorize the City Manager to negotiate and execute the Addendum to the Memorandum of Understanding (COU No. 1617-176) between the City of Ukiah and NCRA, and to include the Council discussion in the record. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. Note: The requested discussion can be heard in the audio/video portion of the record located at http://www.cityofukiah.com/meetings, under the March 15, 2017, Minutes, Agenda Item 12a. 13. NEW BUSINESS a. Consideration and Possible Nomination to the City Selection Committee for an Alternate Cities Representative for LAFCo – City Clerk. Presenter: Kristine Lawler, City Clerk. Council Consensus to not put a nomination forward at this time and to support a coastal representative. b. Presentation, Discussion and Consideration of Implications of AB 2299, SB 1069, and AB 2406 for City’s Existing Second Unit Ordinance – Administration. Presenter: Darcy Vaughn, Assistant City Attorney and Kevin Thompson, Interim Planning Director. Public Comment: Phil Baldwin and Greg Foss, Les Marston, and Becky Thune. City Council Minutes for March 15, 2017, Continued: Page 3 of 4 Council Consensus directs staff to: Refer this presentation and related issues in the existing code to the Planning Commission for their input; Develop a fact sheet to help the public and council identify and explain complexities of the new legislation, and show a path for approval that clearly outlines available options; and Bring a proposed local ordinance back to Council for consideration. c. Authorize the City Manager to Negotiate and Execute an Emergency Management Mutual Aid Memorandum of Agreement Between the City of Ukiah and the City of Lakeport – Administration – Administration. Presenter: Sage Sangiacomo, City Manager Motion/Second: Crane/Mulheren to Authorize the City Manager to negotiate and execute an Emergency Management Mutual Aid Memorandum of Agreement (COU No. 1617-177) between the City of Ukiah and the City of Lakeport. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. d. Discussion and Consideration of the Funding Allocation Agreement Between the County of Mendocino and the City of Ukiah Fire Department for a Portion of the County’s Proposition 172 Funds – Fire. Presenter: Kirk Thomsen, Interim Fire Chief, Sage Sangiacomo, City Manager, and Dan Buffalo, Finance Director. Motion/Second: Scalmanini/Crane to not sign the Funding Allocation Agreement with the County of Mendocino. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. Council Consensus for Mayor Brown to attend and represent the City’s interests at the Mendocino County Association of Fire Districts meeting on April 19, 2017. e. Annual Review of the Mobilehome Park Rent Stabilization Fees per Resolution 2012-17 and Approval to Waive Fees for 2017 Billing Cycle – City Clerk. From Consent Calendar Agenda Item 7b. Presenter: Kristine Lawler, City Clerk. Public Comment: Phil Baldwin. Motion/Second: Crane/Doble to approve waiving annual fee for mobilehome park rent stabilization fund and direct City Clerk to send a corresponding letter to the mobilehome park owners and direct staff to come back with anticipated current costs for Council’s consideration by the end of the calendar year. Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. THE CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 8:44 P.M. 14. CLOSED SESSION a. Conference with Legal Counsel – Anticipated Litigation (Cal. Gov’t Code Section 54956.9(d)(2)) Significant exposure to litigation (1 case) (Coastside Settlement) City Council Minutes for March 15, 2017, Continued: Page 4 of 4 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 (Palace Hotel) c. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9(d)(1)) Name of case: Ukiah Valley Sanitation District v. City of Ukiah, Sonoma County Superior Court, Case No. SCV 256737 (UVSD) d. Conference with Legal Counsel – Existing Litigation (Cal. Gov’t Code Section 54956.9(d)(1)) Name of case: Howard Jarvis Taxpayers Assn., et al. v. City of Ukiah, Mendocino County Superior Court, Case No. SCUK-CVG-17-68588 (Measure Y and Z) e. Conference with Real Property Negotiators (Cal. Gov’t Code Section 54956.8) Property: 429 South Dora St. Ukiah, CA 95482 Negotiator: Sage Sangiacomo, City Manager; Negotiating Parties: City of Ukiah and Ukiah Unified School District; Under Negotiation: Price & Terms of Payment THE CITY COUNCIL RECONVENED IN OPEN SESSION AT 8:57 P.M. City Attorney Rapport reported out of Closed Session that in connection with agenda item 14a, the City and the contractor, Coastside Construction, negotiated a proposed settlement agreement, which the Council considered in Closed Session and are prepared to consider a motion to approve the agreement. Motion/Second: Crane/Doble to approve a proposed settlement agreement (COU No. 1617-180). Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None. THE CITY COUNCIL RETURNED TO CLOSED SESSION AT 8:59 P.M. 15. ADJOURNMENT There being no further business, the meeting adjourned at 10:17 p.m. _____________________________ Kristine Lawler, City Clerk Agenda Item 5b CITY OF UKIAH CITY COUNCIL MINUTES Special Meeting UKIAH VALLEY CONFERENCE CENTER 200 South School Street Ukiah, CA 95482 March 29, 2017 5:00 p.m. Workshop on Water 1. ROLL CALL Ukiah City Council met at a Special Meeting on March 29, 2017, having been legally noticed on March 24, 2017. Mayor Brown called the meeting to order at 5:02 p.m. Roll was taken with the following Councilmembers Present: Douglas F. Crane, Maureen Mulheren, Kevin Doble, and Jim O. Brown. Councilmember Absent by Prearrangement: Stephen G. Scalmanini, Staff Present: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Kristine Lawler, City Clerk. MAYOR BROWN PRESIDING 2.PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Devon Jones, Ukiah Valley Farm Bureau. 3.AUDIENCE COMMENTS ON NON-AGENDA ITEMS No public comment was received. 4. WATER SUPPLY PLANNING WORKSHOP a.Overview and Discussion of the City of Ukiah’s Water Supply Including Sources, Demand, Water Rights, and Pending Change Petitions – Water and Sewer. Presenters: Sean White, Water and Sewer Director and Matt Kennedy, GHD, Inc. Public Comment: Steve Johnson; Bill Koehler, Redwood Valley and Mill View Water Districts; Al White; Phil Baldwin; Linda Bailey; Sarah Reith, Mendo Voice; Phil Baldwin; Susan Knopf; Steve Johnson; Linda Bailey; Susan Knopf; Phil Baldwin; Tamara Alaniz, Russian River Flood Control District; Don Crawford; (unidentified man); Phil Baldwin; Susan Knopf; Tamara Alaniz, Russian River Flood Control District; Bill Koehler, Redwood Valley and Mill Views Water Districts; Linda Bailey; Steve Johnson; Phil Baldwin; Bill Koehler, Redwood Valley and Mill Views Water Districts; Susan Knopf; (PowerPoint Presentation Attached) THE CITY COUNCIL ADJOURNED TO CLOSED SESSION AT 7:06 P.M. 5. CLOSED SESSION a.Conference with Real Property Negotiators (Cal. Gov’t Code Section 54956.8) Property: APN Nos. 002-153-04 and 002-153-30 Negotiator: Sage Sangiacomo, City Manager Negotiating Parties: City of Ukiah and Guillon, Inc. Under Negotiation: Price & Terms City Council Minutes for March 29, 2017, Workshop Continued: There was no action taken on Closed Session item. 6. ADJOURNMENT There being no further business, the meeting adjourned at 7:35 p.m. _____________________________ Kristine Lawler, City Clerk Pre1914 PermitContractAnnualVolume 2023 14,479.6 800DiversionRate 2.8 20 n/aPODYes YesPOUYes YesBeneficialUseMunicipal AllSeason ofUseAllYear AllYearSeniority Pre1914 1954 1949Abandonment * * * 05001,0001,5002,0002,5003,0003,5004,0004,5002006200720082009201020112012201320142015ContractPermitRecycledWaterPre14Groundwater 05,00010,00015,00020,00025,0002006200720082009201020112012201320142015SupplyContractPermitRecycledWaterPre14Groundwater 0500100015002000250030003500400045002006 2007 2008 2009 20102011 2012 2013 2014 2015GroundwaterPre14RecycledWaterPermitContract 0200400600800100012001400160018002000RVCWDSupplyvsDemandDomesticAg 2 encouraging economic growth. The Course also creates and preserves greenspace on land that might otherwise be developed. After it was determined that no on-site water source was feasible and with water being the greatest variable in terms of availability and cost, Tayman approached the City with concerns about the operation of the Course and demonstrated that cost relief was necessary for maintaining operations on the Course. It should continue to be noted that Tayman has done an exceptional job in achieving cost savings from labor and other management areas; but the rising costs of water and declining revenue caused by significant impacts from the recent drought and economic downturn have been difficult to mitigate. The solutions available to the Course, at this point, are the installation of a new irrigation system that will conserve water significantly and will also be ready to receive recycled water should it become available. The City has entered into a Professional Services Contract with an irrigation designer who is currently developing plans and specifications for a newly designed irrigation system. Drafted plans and specifications are anticipated to be ready in June 2017, and will be available for use as support documentation to the next round of recycled water grant funding. The first amendment to the agreement modified, for the short term, the amount of rent payment from Tayman to the City and suspends the contribution by Tayman to the Capital Improvement Project Fund. The adjustment was to remain in effect for one fiscal year. The modification allowed Tayman to shift approximately $68,100 towards daily operations. These funds would likely improve conditions on the Course and should increase rounds played in direct correlation to the course improvements. While some Course improvements have been realized many areas will take longer than one season to correct. Tayman has also been looking for new ways to increase revenue, including an expanded food and beverage service and full liquor license. The original agreement with the first amendment is included as Attachment #1, and the proposed second amendment to the Lease Agreement with Tayman Park Golf Group is included as Attachment #2. As staff finalizes the Fiscal Year 2017/2018 budget the final amounts of the lease reduction will be determined and expenditures in the Golf Enterprise Fund will be covered by the remaining rent payment, this will allow the City to cover enterprise fund-related costs and not incur added debt. Debt payment on the internal loan for the back-nine land purchase and past operational debt will be suspended for another year. Staff has engaged in outreach and discussion with the golfing community and has received support from representatives of the Ukiah Men’s and Women’s Golf Clubs and the City’s Parks, Recreation and Golf Commission to move forward with a second amendment to the Tayman lease. Furthermore, the Men’s Club has continued to provide valuable support and contributions towards the Capital Improvement Program and will be focusing on improvements to the patio area and the Todd Grove Clubhouse with Tayman. Staff is available for comments and to answer any questions. Please contact Tami Bartolomei, Community Services Administrator at 467-5765 or tbartolomei@cityofukiah.com. For the benefit to our community and for the success of our partnership with Tayman, staff is recommending that Council authorize the City Manager to negotiate and execute a second amendment to the Tayman lease. FISCAL IMPACT: Budgeted Amount in 17-18 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A Lease Revenue #72000000.46380 Yes No COU No. 070112, COU No. 1617112 ADDENDUM NO. 2 TO LEASE AGREEMENT CITY OF UKIAH AND TAYMAN PARK GOLF GROUP, INC. This Addendum No. 2 (“Addendum”) to the Lease Agreement (“Agreement”) between the City of Ukiah (“Lessor” or “City”) and Tayman Park Golf Group, Inc. (“Lessee”), dated July 1, 2012, is entered into in Ukiah, California by City and Lessee, effective July 1, 2017 (“Effective Date”). 1. Section 4.1 of the Agreement incorporating the calculation of rent under the heading: Formula for Rent Payment in Exhibit G to the Agreement is hereby amended by substituting for the Formula for Rent Payment the payment of a fixed rent of $38,000 for the 2017 to 2018 Fiscal Year (July 1-June 30). 2. Section 4.2 of the Agreement incorporating Exhibit H to the Agreement is amended by suspending for FY 2017/18 the Lessee’s obligation to contribute to a Capital Improvement Program. 3.The term of this Addendum is one year, commencing on July 1, 2017, and terminating on June 30, 2017, unless the Agreement is extended or amended in writing by the parties prior to it’s expiration Upon expiration of the term of this Addendum, the Agreement, as it read prior to the Effective Date, shall continue in full force and effect. During the term of this Addendum all provisions of the Agreement not amended by this Addendum remain in full force and effect. WHEREFOR, this Addendum is entered on the Effective Date. City of Ukiah By: ___________________________ Sage Sangiacomo, City Manager ATTEST: ________________________ Kristine Lawler, City Clerk Approved as to form: __________________________ David J. Rapport, City Attorney Tayman Park Golf Group, Inc. By: __________________________ Name: Title: Commented [MS1]: This amount will be finalized during the FY17/18 budget process. Page 2 of 2 may be discussed and voted on separately. The balance of the nominations may be enacted by a single motion and roll call vote by the City Council. BOARD/ COMMISSION NAME POSITION NOMINATED BY COUNCIL- MEMBER TERM ENDING Design Review Board Alan Nicholson - incumbent Member – Community at Large Scalmanini December 2020 Design Review Board Thomas Hise - incumbent Member – Community at Large Crane December 2020 Planning Commission Linda Sanders - incumbent Commissioner Scalmanini December 2020 Planning Commission Michael Whetzel incumbent Commissioner Crane December 2020 FISCAL IMPACT: Budgeted Amount in 16/17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A CHAPTER 4 COMMISSIONS AND BOARDS ARTICLE 4. PLANNING COMMISSION SECTION: §1150: Creation §1151: Members; Appointment §1152: Terms Of Members §1153: Expenses Of Members; No Compensation §1154: Chairman; Officers §1155: Meetings; Rules; Record §1156: Appointment Of Officers And Employees; Contract For Services; Limitations §1157: Duties Of The Commission §1158: Other Powers And Duties Of Commission §1150 CREATION There is hereby created a planning commission for the city. (Ord. 396, §1, adopted 1947) §1151 MEMBERS; APPOINTMENT Said commission shall consist of five (5) members who shall be registered voters of the city. At or near the beginning of his or her four (4) year term of office, each member of the city council may nominate one commissioner who shall be appointed to the commission, if approved by a majority vote of the city council. Each commissioner’s term of office shall coincide with the four (4) year term of office of the city council member who nominated him or her, regardless of whether that city council member serves his or her full four (4) year term. If a commissioner vacates his or her office before the expiration of his or her term of office, the city council member who nominated that commissioner (or a city council member elected or appointed to fill the remaining unexpired term of office of the city council member who appointed the commissioner) may nominate a replacement to serve the remainder of that commissioner’s term of office, who shall be appointed, if the nomination is approved by a majority vote of the city council. If a city council member’s nomination receives less than a majority vote, he or she may nominate additional candidates, one at a time, until one of them is appointed by a majority vote of the city council. Commissioners shall be nominated and voted upon at a single city council meeting, unless a different procedure is approved by a majority vote of the city council. If a city council member fails to nominate a commissioner within sixty (60) days after the vacancy occurs, a majority of the city council shall fill the vacancy following the procedure used to appoint members to other city commissions and boards. (Ord. 396, §1, adopted 1947; Ord. 632, §1, adopted 1973; Ord. 710, §1, adopted 1978; Ord. 718, §5, adopted 1978; Ord. 958, §1, adopted 1995; Ord. 1055, §1, adopted 2004; Ord. 1085, §1, adopted 2006; Ord. 1094, adopted 2007) §1152 TERMS OF MEMBERS Div. 1, Ch. 4, Art. 4 PLANNING COMMISSION A commissioner’s term of office shall coincide with the four (4) year term of the city council member who appointed that commissioner, regardless of whether that city council member serves the full four (4) years of his or her term of office. (Ord. 396, §1, adopted 1947; Ord. 710, §1, adopted 1978; Ord. 958, §1, adopted 1995; Ord. 1055, §1, adopted 2004; Ord. 1094, adopted 2007) §1153 EXPENSES OF MEMBERS; NO COMPENSATION The members of the commission shall receive no compensation, except such traveling expenses as are authorized by law. (Ord. 396, §1, adopted 1947) §1154 CHAIRMAN; OFFICERS The commission shall elect a chairman from among the appointed members for a term of one year and, subject to other provisions of law, may elect such other officers as it may determine. (Ord. 396, §2, adopted 1947) §1155 MEETINGS; RULES; RECORD The commission shall hold at least one regular meeting each month. It shall adopt rules for the transaction of business and shall keep a record of its resolutions, transactions, findings and determinations, which record shall be a public record. (Ord. 396, §2, adopted 1947) §1156 APPOINTMENT OF OFFICERS AND EMPLOYEES; CONTRACT FOR SERVICES; LIMITATIONS The commission may appoint officers and employees and contract for services, subject to the provisions of law, provided that all expenditures of the commission, exclusive of gifts, shall be within the amounts appropriated for the purpose by the city council. (Ord. 396, §2, adopted 1947) §1157 DUTIES OF THE COMMISSION It shall be the function and duty of the planning commission to prepare, make and adopt, subject to the provisions of law, a master plan for the physical development of the city, and of any land situated outside the boundaries thereof which in the commission’s judgment bears relation to the planning thereof. (Ord. 396, §3, adopted 1947) §1158 OTHER POWERS AND DUTIES OF COMMISSION The planning commission shall have such other powers and duties as are prescribed by law, and shall be governed by the procedure provided by law. (Ord. 396, §4, adopted 1947) Div. 1, Ch. 4, Art. 4 PLANNING COMMISSION CHAPTER 4 COMMISSIONS AND BOARDS ARTICLE 4B. DESIGN REVIEW BOARD SECTION: §1160: Creation §1161: Members; Appointment §1162: Residency §1163: Qualifications Of Board Members §1164: Expenses Of Members; No Compensation §1165: Chairman; Officers §1166: Meetings; Rules; Record §1167: Attendance §1168: Board To Act In Advisory Capacity §1169: Duties Of The Board §1160 CREATION There is hereby created a Design Review Board for the City of Ukiah ("City"). (Ord. 1136, §2, adopted 2012) §1161 MEMBERS; APPOINTMENT Board shall consist of a total of five (5) members, of which at least three (3) members shall be residents of the City or a business owner in the City and up to two (2) members shall be at-large without a residence or business located within the City. If no at-large candidates are available, the City Council may fill the board seats with City residents or City business owners. At or near the beginning of his or her four (4) year term of office, each member of the City Council may nominate one Board member who shall be appointed to the Board, if approved by a majority vote of the City Council. Each Board member’s term of office shall coincide with the four (4) year term of office of the City Council member who nominated him or her, regardless of whether that City Council member serves his or her full four (4) year term. If a Board member vacates his or her office before the expiration of his or her term of office, the City Council member who nominated that Board member (or a City Council member elected or appointed to fill the remaining unexpired term of office of the City Council member who appointed the Board member) may nominate a replacement to serve the remainder of that Board member’s term of office, who shall be appointed, if the nomination is approved by a majority vote of the City Council. If a City Council member’s nomination receives less than a majority vote, he or she may nominate additional candidates, one at a time, until one of them is appointed by a majority vote of the City Council. Board members shall be nominated and voted upon at a single City Council meeting, unless a different procedure is approved by a majority vote of the City Council. If a City Council member fails to nominate a Board member within sixty (60) days after the vacancy occurs, a majority of the City Council shall fill the vacancy following the procedure used to appoint members to other City Commissions and Boards. (Ord. 1136, §2, adopted 2012) Div. 1, Ch. 4 COMMISSIONS AND BOARDS §1162 RESIDENCY If Board members, other than the at-large members, move outside the City limits after appointment or they no longer own a business in the City limits for Board members qualified to serve on that basis, their terms are thereby terminated. (Ord. 1136, §2, adopted 2012) §1163 QUALIFICATIONS OF BOARD MEMBERS Board members shall have sufficient education and/or experience to perform and fulfill the duties required in section 1169 of this code. This education and/or experience may consist of a college degree, professional license, or employment experience in architecture and design, landscape architecture, building contracting, urban planning, civil engineering, or similar field of study. Alternatively, the City Council may determine that a combination of education and/or experience in lieu of a college degree, professional license, or employment experience may qualify a candidate for the Board. (Ord. 1136, §2, adopted 2012) §1164 EXPENSES OF MEMBERS; NO COMPENSATION The members of the Board shall receive no compensation. (Ord. 1136, §2, adopted 2012) §1165 CHAIRMAN; OFFICERS The Board shall elect a chairperson from among the appointed members for a term of one year and, subject to other provisions of law, may elect such other officers, such as a vice-chairperson, as it may determine. (Ord. 1136, §2, adopted 2012) §1166 MEETINGS; RULES; RECORD The Board shall hold at least one regular meeting each month at a time and place established by the Board, unless a lack of business or a lack of a quorum occurs. The Board shall adopt rules for the conduct of business and shall keep a written record of its findings and determinations, and overall business, which record shall be a public record. The City Manager may assign a City staff member to serve as the Board’s recording secretary, who shall prepare minutes for the Board’s approval. Alternatively, if no recording secretary is assigned to the Board, the Board may assign meeting recording duties to a Board member, who shall prepare minutes for the Board’s approval. (Ord. 1136, §2, adopted 2012) §1167 ATTENDANCE If a Board member absents himself or herself from four (4) regular meetings in any twelve (12) month period without the prior approval of the Board, the City Council member who appointed him or her may vacate that Board member’s seat and fill it as any other vacancy. (Ord. 1136, §2, adopted 2012) §1168 BOARD TO ACT IN ADVISORY CAPACITY Such Board shall act in an advisory capacity to the City staff, Zoning Administrator, Planning Commission and City Council in all matters pertaining to site development permit applications, planned development applications and precise development plans, and urban design. (Ord. 1136, §2, adopted 2012) Div. 1, Ch. 4 COMMISSIONS AND BOARDS §1169 DUTIES OF THE BOARD It shall be the function and duty of the Design Review Board to review proposed site development permit applications, planned development applications and precise development plans, work with staff and the applicants to ensure design consistency with the Ukiah General Plan, Zoning Code, and Design Review Guidelines, and make recommendations concerning architecture, site design layout, landscaping, parking, signage, exterior lighting, and other aspects of urban design to City staff, Zoning Administrator, Planning Commission and City Council as appropriate. (Ord. 1136, §2, adopted 2012) Div. 1, Ch. 4 COMMISSIONS AND BOARDS REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED RESOLUTION NO. 2017-xx RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE NOMINATIONS AND REAPPOINTING INCUMBENTS ALAN NICHOLSON AND THOMAS HISE TO THE DESIGN REVIEW BOARD, TERM ENDING DECEMBER 2020, AND INCUMBENTS LINDA SANDERS AND MICHAEL WHETZEL TO THE PLANNING COMMISSION, TERM ENDING DECEMBER 2020 WHEREAS, Alan Nicholson and Thomas Hise are requesting reappointment to the Design Review Board as Members - Community at Large, terms ending December of 2020; and WHEREAS, Linda Sanders and Michael Whetzel are requesting reappointment to the Planning Commission as Commissioners, terms ending December of 2020; and WHEREAS, the City Clerk’s office has received a written nomination from Councilmember Scalmanini nominating Alan Nicholson to the Member – Community at Large position on the Design Review Board and Linda Sanders to the Commissioner position on the Planning Commission; and WHEREAS, the City Clerk’s office has received a written nomination from Councilmember Crane nominating Thomas Hise to the Member – Community at Large position on the Design Review Board and Michael Whetzel to the Commissioner position on the Planning Commission. NOW, THEREFORE, BE IT RESOLVED, that the Ukiah City Council approves the nominations, submitted and does hereby reappoint the following persons and terms: BOARD/ COMMISSION NAME POSITION NOMINATED BY COUNCIL- MEMBER TERM ENDING Design Review Board Alan Nicholson - incumbent Member – Community at Large Scalmanini December 2020 Design Review Board Thomas Hise - incumbent Member – Community at Large Crane December 2020 Planning Commission Linda Sanders - incumbent Commissioner Scalmanini December 2020 Planning Commission Michael Whetzel incumbent Commissioner Crane December 2020 PASSED AND ADOPTED this 5th day of April, 2017, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: _______________________________ Jim O. Brown, Mayor ATTEST: __________________________________ Kristine Lawler, City Clerk Page 2 of 2 Discussion: To perform a criminal history background investigation, the Ukiah Police Department utilizes a fingerprint Livescan criminal history records check. These checks allow the department to receive a summary of criminal history from both the California Department of Justice and the F.B.I., for out-of-state criminal records. In addition, this check can allow the Ukiah Police Department to receive notifications of future arrests and convictions of crimes which may be in conflict with an applicant’s permit. But, to receive these future notifications, an applicant’s fingerprints must be attached to a specific purpose – like our City’s application for employment, licensing or certification purposes in regards to marijuana dispensary licensing. In order to establish a new Livescan category for the Ukiah Police Department for marijuana dispensary licensing, and receive subsequent notification of arrests and convictions, the California Department of Justice and the F.B.I. require that our City adopt a resolution authorizing access to criminal history information for marijuana dispensary employment, licensing and certification purposes. The California Department of Justice has provided a sample resolution for our city to consider, and staff has reviewed and completed that sample for our City Council’s consideration (Attachment #2). Recommendations: Staff recommends that the Ukiah City Council adopt the attached resolution authorizing our personnel access to criminal history information for the purpose of marijuana dispensary licensing within the City of Ukiah. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A ATTACHMENT 2 RESOLUTION NO. 2017-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING ACCESS TO STATE AND FEDERAL LEVEL SUMMARY CRIMINAL HISTORY INFORMATION FOR EMPLOYMENT AND LICENSING OF MARIJUANA DISPENSARY USE PERMITS WHEREAS, Penal Code Sections 11105(b)(11) and 1330(b)(11) authorize cities to access state and local summary criminal history information for employment, licensing or certification purposes; and WHEREAS, Penal Code Section 11105(b)(11) authorizes cities to access federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) require that there be a requirement or exclusion from employment, licensing, or certification based on specific criminal conduct on the part of the subject of the record; and WHEREAS, Penal Code Sections 11105(b)(11) and 13300(b)(11) requires the City Council to specifically authorize access to summary criminal history information for employment, licensing, or certification purposes. NOW, THEREFORE, BE IT HEREBY RESOLVED, that the City Council hereby authorizes accessing state and federal level summary criminal history information for employment (including volunteers and contract employees), licensing of Marijuana Dispensary Use Permits or certification for Marijuana applicants, his or her agent or employees, or any person who is exercising managerial authority on behalf of an applicant, for purposes of obtaining a Marijuana Dispensary Use Permit, and may not disseminate the information to a private entity. PASSED AND ADOPTED this 5th day of April, 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: __________________________ Jim O. Brown, Mayor ATTEST: ______________________ Kristine Lawler, City Clerk Page 2 of 2 commensurate with the scope of work (Attachment #1). Staff recommends approval of a professional services agreement for this work and approval of the corresponding budget amendment. FISCAL IMPACT: Budget Amendment Amount 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. $5,276 Corporation Yard #20824300.52100 Yes No N/A PUBLIC WORKS DEPARTMENT REQUEST FOR PROPOSAL COMPACTION TESTING SERVICES FOR SEWER & WATER REPLACEMENT PROJECT Specification No. 16-10 PROPOSAL DUE: MARCH 7, 2017 AT 2:00 PM COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 2 of 14 GENERAL INFORMATION / PROJECT LOCATION The City of Ukiah (City) with a population of 16,075 people, is located approximately 115 miles north of San Francisco, CA on the US Highway 101 corridor. Ukiah is the retail service hub to an area reaching a 50 mile perimeter and experiences a daytime service popul ation exceeding 35,000 people. The City awarded a contract to Argonaut Constructors for the 2016 Sewer and Water Main Replacement Project (Project) and will be utilizing City staff for project management and inspections during the course of the project. The Project involves the replacement of existing water mains, sewer mains, sewer manholes, water service lines, sewer laterals from main to back of walk, water valves, fire hydrants, installation of pedestrian facilities and complete street reconstruction. Work will be performed at the following locations: 1) Washington Avenue for approximately 1200 feet between South State Street and Dora Street; 2) Observatory Avenue for approximately 2530 feet between South State Street and Helen Avenue; 3) Luce Avenue for approximately 1220 feet between Sou th State Street and Dora Street; and 4) Luce Avenue for approximately 1320 feet between Dora Street and Helen Avenue. The City of Ukiah requests proposals from qualified firms to provide professional services for the Compaction and Materials Testing for this project. SCOPE OF SERVICES: The scope of services COMPACTION TESTING for this project shall include:  (88) Compaction tests for trench backfill  (11) Compaction tests for lateral trench backfill  (5) In-Place density and relative compaction of Asphalt Concrete (nuclear) – one test per day during placement of at least 300 tons AC. The scope of services for MATERIALS TESTING for the project shall include:  (3) Material Quality – Trench Backfill o Minimum 3 gradation and SE tests COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 3 of 14 SCHEDULE:  Construction is scheduled to start February 27, 2017. However, the first compaction testing is not anticipated until Mid-March, 2017 or shortly thereafter  The City Engineer or his designee will direct the locations of testing and provide consultant 24 hours’ notice of each testing day  The current number of contractor working days is 180 working days though this is likely to increase as additional work is anticipated SELECTION: Consultant selection will be made on the basis of qualifications. The following evaluation criteria will be used in evaluating and selecting candidates:  Candidate’s specialized experience and technical competence as applic able to the services required.  Testing laboratory should be accredited by Caltrans. CONSULTANT’S PROPOSAL: Proposals shall be labeled: “Testing Services for Sewer & Water Replacement Project” Proposals shall be submitted to: Jarod Thiele, Management Analyst City of Ukiah, Department of Public Works 300 Seminary Avenue Ukiah, CA 95482-5400 Five (5) copies of the PROPOSAL are required. Proposals must be received prior to 2:00 PM, March 7, 2017 Proposals shall include the following: The proposal should include a brief overview of the specific approach and procedures the firm proposes to complete the tasks described in the Scope of Services. The proposal must be signed by an official authorize d to bind the successful firm contractually and shall contain a statement to the effect that the proposal is a firm offer for a minimum period of thirty (30) days after the submittal date. The proposal shall also provide the following: name, title, addres s, and telephone number of individuals with the authority to negotiate a contract and bind the consultant to the terms of the contract. Provide a “not to exceed” maximum cost fee proposal for all identified work in the Scope of Services above, including all labor costs for proposed tests. Indicate if travel time, mileage, and per diem will be charged. Include any sub-consultant cost. Additionally, please identify miscellaneous costs associated with this proposal. Submit a copy of your firm’s current COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 4 of 14 itemized hourly rate and testing fee schedule. Consultant selection will be made on the basis of qualifications. In addition, please provide a unit cost for additional tests, if requested by the City during the course of the project Lead Times Please provide the amount of time needed to collect material samples for analysis and the quantity of material needed for each sample. It is assumed the Consultant will collect samples for analysis and coordinate with City and Contractor . Also indicate time for sample to be analyzed for approval/denial. Qualifications Describe the qualifications and experience of the firm as related to the project . References Provide a list of similar projects for which the firm has completed similar projects with a list of at least three client references associated with these projects. Include client references for any proposed sub-consultants. Provide names of contact person, addresses and telephone numbers for all client references. Exceptions Identify any exceptions you are proposing with respect to the Scope of Services. Additionally, if there are any exceptions to the City’s insurance requirements and/or the City’s draft professional services agreement as shown in the attachments, the Consultant should list the exceptio ns in the proposal. SPECIAL PROPOSAL REQUIREMENT Proposal documents shall be produced on recycled paper, when practicable. The proposal front cover shall be labeled in such a way as to identify that the document was produced on recycled paper and the pages of the proposal shall be produced double sided, where feasible. INSURANCE REQUIREMENTS The insurance requirements are set forth in Attachment “B”. RIGHT OF REFUSAL The City reserves the right to reject any and all proposals without qualifications. Proposals will be considered only in their entirety. The City reserves the right to negotiate the specific requirements and costs using the selected proposal as a basis. COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 5 of 14 QUESTIONS Questions shall be directed to Jarod Thiele, Management Analyst, City of Ukiah, Department of Public Works, 300 Seminary Avenue, Ukiah, CA 95482-5400, voice phone: (707) 463- 6755, fax phone: (707) 463-6204, email (preferred contact method): jthiele@cityofukiah.com COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 6 of 14 ATTACHMENT “A” AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES [Design Professional] This Agreement, made and entered into this day of , 2016 (“Effective Date”), by and between CITY OF UKIAH, CALIFORNIA, hereinafter referred to as "City" and _________________, a _____________ [sole proprietorship, corporation, partnership, limited partnership, limited liability company, etc] organized and in good standing under the laws of the state of ______________, hereinafter referred to as "Consultant". RECITALS This Agreement is predicated on the following facts: a. City requires consulting services related to ________________________________. b. Consultant represents that it has the qualifications, skills, experience and properly licensed to provide these services, and is willing to provide them according to the terms of this Agreement. c. City and Consultant agree upon the Scope-of-Work and Work Schedule attached hereto as Attachment "A", describing contract provisions for the project and setting forth the completion dates for the various services to be provided pursuant to this Agreement. TERMS OF AGREEMENT 1.0 DESCRIPTION OF PROJECT 1.1 The Project is described in detail in the attached Scope-of-Work (Attachment "A"). 2.0 SCOPE OF SERVICES 2.1 As set forth in Attachment "A". 2.2. Additional Services. Additional services, if any, shall only proceed upon written agreement between City and Consultant. The written Agreement shall be in the form of an Amendment to this Agreement. 3.0 CONDUCT OF WORK 3.1 Time of Completion. Consultant shall commence performance of services as required by the Scope-of-Work upon receipt of a Notice to Proceed from City and shall complete such services within ________________ from receipt of the Notice to Proceed. Consultant shall complete the work to the City's reasonable satisfaction, even if contract disputes arise or Consultant contends it is entitled to further compensation. 4.0 COMPENSATION FOR SERVICES 4.1 Basis for Compensation. For the performance of the professional services of this Agreement, Consultant shall be compensated on a time and expense basis not to exceed a guaranteed maximum dollar amount of $--- ----. Labor charges shall be based upon hourly billing rates for the various classifications of personnel employed by Consultant to perform the Scope of Work as set forth in the attached Attachment B, which shall include all indirect costs and expenses of every kind or nature, except direct expenses. The direct expenses COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 7 of 14 and the fees to be charged for same shall be as set forth in Attachment B. Consultant shall complete the Scope of Work for the not-to-exceed guaranteed maximum, even if actual time and expenses exceed that amount. 4.2 Changes. Should changes in compensation be required because of changes to the Scope-of-Work of this Agreement, the parties shall agree in writing to any changes in compensation. "Changes to the Scope-of- Work" means different activities than those described in Attachment "A" and not additional time to complete those activities than the parties anticipated on the date they entered this Agreement. 4.3 Sub-contractor Payment. The use of sub-consultants or other services to perform a portion of the work of this Agreement shall be approved by City prior to commencement of work. The cost of sub-consultants shall be included within guaranteed not-to-exceed amount set forth in Section 4.1. 4.4 Terms of Payment. Payment to Consultant for services rendered in accordance with this contract shall be based upon submission of monthly invoices for the work satisfactorily performed prior to the date of invoice less any amount already paid to Consultant, which amounts shall be due and payable thirty (30) days after receipt by City. The invoices shall provide a description of each item of work performed, the time expended to perform each task, the fees charged for that task, and the direct expenses incurred and billed for. Invoices shall be accompanied by documentation sufficient to enable City to determine progress made and the expenses claimed. 5.0 ASSURANCES OF CONSULTANT 5.1 Independent Contractor. Consultant is an independent contractor and is solely responsible for its acts or omissions. Consultant (including its agents, servants, and employees) is not City's agent, employee, or representative for any purpose. It is the express intention of the parties hereto that Consultant is an independent contractor and not an employee, joint venturer, or partner of City for any purpose whatsoever. City shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Consultant under this Agreement, and the general public and all governmental agencies regulating such activity shall be so informed. Those provisions of this Agreement that reserve ultimate authority in City have been inserted solely to achieve compliance with federal and state laws, rules, regulations, and interpretations thereof. No such provisions and no other provisions of this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Consultant and City. Consultant shall pay all estimated and actual federal and state income and self-employment taxes that are due the state and federal government and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for himself and his employees, if any. Consultant agrees to indemnify and hold City and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by Consultant, including the legal costs associated with defending against any audit, claim, demand or law suit. Consultant warrants and represents that it is a properly licensed professional or professional organization with a substantial investment in its business and that it maintains its own offices and staff which it will use in performing under this Agreement. 5.2 Conflict of Interest. Consultant understands that its professional responsibility is solely to City. Consultant has no interest and will not acquire any direct or indirect interest that would conflict with its performance of the Agreement. Consultant shall not in the performance of this Agreement employ a person having such an COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 8 of 14 interest. If the City Manager determines that the Consultant has a disclosure obligation under the City’s local conflict of interest code, the Consultant shall file the required disclosure form with the City Clerk within 10 days of being notified of the City Manager’s determination. 6.0 INDEMNIFICATION 6.1 Insurance Liability. Without limiting Consultant's obligations arising under Paragraph 6.2 Consultant shall not begin work under this Agreement until it procures and maintains for the full period of time allowed by law, surviving the termination of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with its performance under this Agreement. A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office ("ISO) Commercial General Liability Coverage Form No. CG 20 10 10 01 and Commercial General Liability Coverage – Completed Operations Form No. CG 20 37 10 01. 2. ISO Form No. CA 0001 (Ed. 1/87) covering Automobile Liability, Code 1 "any auto" or Code 8, 9 if no owned autos and endorsement CA 0025. 3. Worker's Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. 4. Errors and Omissions liability insurance appropriate to the consultant’s profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability. B. Minimum Limits of Insurance Consultant shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations. If Commercial General Liability Insurance or other form with a general aggregate limit is used, the general aggregate limit shall apply separately to the work performed under this Agreement, or the aggregate limit shall be twice the prescribed per occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. 4. Errors and Omissions liability: $1,000,000 per occurrence. C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 9 of 14 retentions as respects to the City, its officers, officials, employees and volunteers; or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages a. The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects; liability arising out of activities performed by or on behalf of the Consultant, products and completed operations of the Consultant, premises owned, occupied or used by the Consultant, or automobiles owned, hired or borrowed by the Consultant for the full period of time allowed by law, surviving the termination of this Agreement. The coverage shall contain no special limitations on the scope-of-protection afforded to the City, its officers, officials, employees or volunteers. b. The Consultant's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees or volunteers shall be in excess of the Consultant's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Worker's Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from Consultant's performance of the work, pursuant to this Agreement. 3. Professional Liability Coverage If written on a claims-made basis, the retroactivity date shall be the effective date of this Agreement. The policy period shall extend from ------ to ------------. 4. All Coverages Each Insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. E. Acceptability of Insurers COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 10 of 14 Insurance is to be placed with admitted California insurers with an A.M. Best's rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. F. Verification of Coverage Consultant shall furnish the City with Certificates of Insurance and with original Endorsements effecting coverage required by this Agreement. The Certificates and Endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on forms provided or approved by the City. All Certificates and Endorsements are to be received and approved by the City before Consultant begins the work of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. If Consultant fails to provide the coverages required herein, the City shall have the right, but not the obligation, to purchase any or all of them. In that event, after notice to Consultant that City has paid the premium, the cost of insurance may be deducted from the compensation otherwise due the contractor under the terms of this Contract. G. Subcontractors Consultant shall include all sub-contractors or sub-consultants as insured under its policies or shall furnish separate certificates and endorsements for each sub-contractor or sub-consultant. All coverage for sub-contractors or sub-consultants shall be subject to all insurance requirements set forth in this Paragraph 6.1. 6.2 Indemnification. Notwithstanding the foregoing insurance requirements, and in addition thereto, Consultant agrees, for the full period of time allowed by law, surviving the termination of this Agreement, to indemnify the City for any claim, cost or liability that arises out of, or pertains to, or relates to any negligent act or omission or the willful misconduct of Consultant and its agents in the performance of services under this contract, but this indemnity does not apply to liability for damages for death or bodily injury to persons, injury to property, or other loss, arising from the sole negligence, willful misconduct or defects in design by the City, or arising from the active negligence of the City. “Indemnify,” as used herein includes the expenses of defending against a claim and the payment of any settlement or judgment arising out of the claim. Defense costs include all costs associated with defending the claim, including, but not limited to, the fees of attorneys, investigators, consultants, experts and expert witnesses, and litigation expenses. References in this paragraph to City or Consultant, include their officers, employees, agents, and subcontractors. 7.0 CONTRACT PROVISIONS 7.1 Documents and Ownership of Work. All documents furnished to Consultant by City and all documents or reports and supportive data prepared by Consultant under this Agreement are owned and become the property of the City upon their creation and shall be given to City immediately upon demand and at the completion of Consultant's services at no additional cost to City. Deliverables are identified in the Scope-of- Work, Attachment "A". All documents produced by Consultant shall be furnished to City in digital format and hardcopy. Consultant shall produce the digital format, using software and media approved by City. 7.2 Governing Law. Consultant shall comply with the laws and regulations of the United States, the State of California, and all local governments having jurisdiction over this Agreement. The interpretation and COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 11 of 14 enforcement of this Agreement shall be governed by California law and any action arising under or in connection with this Agreement must be filed in a Court of competent jurisdiction in Mendocino County. 7.3 Entire Agreement. This Agreement plus its Attachment(s) and executed Amendments set forth the entire understanding between the parties. 7.4 Severability. If any term of this Agreement is held invalid by a court of competent jurisdiction, the remainder of this Agreement shall remain in effect. 7.5 Modification. No modification of this Agreement is valid unless made with the agreement of both parties in writing. 7.6 Assignment. Consultant's services are considered unique and personal. Consultant shall not assign, transfer, or sub-contract its interest or obligation under all or any portion of this Agreement without City's prior written consent. 7.7 Waiver. No waiver of a breach of any covenant, term, or condition of this Agreement shall be a waiver of any other or subsequent breach of the same or any other covenant, term or condition or a waiver of the covenant, term or condition itself. 7.8 Termination. This Agreement may only be terminated by either party: 1) for breach of the Agreement; 2) because funds are no longer available to pay Consultant for services provided under this Agreement; or 3) City has abandoned and does not wish to complete the project for which Consultant was retained. A party shall notify the other party of any alleged breach of the Agreement and of the action required to cure the breach. If the breaching party fails to cure the breach within the time specified in the notice, the contract shall be terminated as of that time. If terminated for lack of funds or abandonment of the project, the contract shall terminate on the date notice of termination is given to Consultant. City shall pay the Consultant only for services performed and expenses incurred as of the effective termination date. In such event, as a condition to payment, Consultant shall provide to City all finished or unfinished documents, data, studies, surveys, drawings, maps, models, photographs and reports prepared by the Consultant under this Agreement. Consultant shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder, subject to off-set for any direct or consequential damages City may incur as a result of Consultant's breach of contract. 7.9 Duplicate Originals. This Agreement may be executed in duplicate originals, each bearing the original signature of the parties. When so signed, each such document shall be admissible in administrative or judicial proceedings as proof of the terms of the Agreement between the parties. 8.0 NOTICES Any notice given under this Agreement shall be in writing and deemed given when personally delivered or deposited in the mail (certified or registered) addressed to the parties as follows: CITY OF UKIAH -------------- DEPT. OF PUBLIC WORKS -------------- 300 SEMINARY AVENUE -------------- UKIAH, CALIFORNIA 95482-5400 9.0 SIGNATURES IN WITNESS WHEREOF, the parties have executed this Agreement the Effective Date: CONSULTANT COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 12 of 14 BY: __________________________ ____________________ Date PRINT NAME: _________________ __________________ IRS IDN Number CITY OF UKIAH BY: ____________________ SAGE SANGIACOMO Date CITY MANAGER ATTEST ____________________ KRISTINE LAWLER Date CITY CLERK COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 13 of 14 ATTACHMENT “B” INSURANCE REQUIREMENTS FOR CONSULTANTS Consultant(s) shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant(s), his agents, representatives, or employees. I. Minimum Scope of Insurance Coverage shall be at least as broad as: A. Insurance Services Office Commercial General Liability coverage (Form No. CG 20 10 10 01 and Commercial General Liability – Completed Operations Form No. CG 20 37 10 01). B. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto). C. Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. D. Errors and Omissions liability insurance appropriate to the consultant’s profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability. II. Minimum Limits of Insurance Consultant shall maintain limits no less than: A. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage including operations, products and completed operations , as applicable. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Insurance must be written on an occurrence basis. B. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Insurance must be written on an occurrence basis. C. Workman’s Compensation Employer’s Liability: $1,000,000 per accident for bodily injury or disease. D. Errors and Omissions liability: $1,000,000 per occurrence. If written on a claims -made basis, insurance coverage must cover claims filed within 3 years after contract work completed. III. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the insurer to reduce or eliminate such deductibles or self -insured retentions with respect to the City, its officers, officials, employees and volunteers; or the Consultant to provide a finan cial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses; or to approve the deductible without a guarantee. IV. REQUIRED Insurance Provisions Proof of general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: A. The City, its officers, officials, employees, and volunteers are to be covered as ADDITIONAL INSURED with respect to liability arising out of automo biles owned, leased, hired or borrowed by COMPACTION TESTING FOR 2017 SEWER & WATER MAIN REPLACEMENT PROJECT Page 14 of 14 or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts or equipment, furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant’s insurance, or as a separate owner’s policy. B. The workers’ compensation policy is to be endorsed with a waiver of subrogation . The insurance company, in its endorsement, agrees to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses paid under the terms of this policy which arises from the work performed by the named insured for the City. NOTE: You cannot be added as an additional insured on a workers’ compensation policy. C. For any claims related to this project, the Consultant’s insurance coverage shall be primary insurance with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be in excess of the Consultant’s insurance and shall not contribute with it. D. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the City. V. RATING - Acceptability of Insurers Insurance is to be placed with admitted California insurers with a current A.M. Best’s rating of no less than A- for financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating. VI. Verification of Coverage Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City. If endorsements are on forms other than the City’s forms, those endorsements must p rovide coverage that is equivalent to or better than the forms requested by the City. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time. VII. Subcontractors If Consultant uses subcontractors or sub -consultants, it shall cover them under its policies or require them to separately comply with the insurance requirements set forth in Paragraph 6.1 of Attachment “A” If you have questions regarding our insurance requirements contact: Risk Manager (707) 463-6287 or FAX (707) 463-6204 Revised: 11/20/08 RECOMMENDED ACTION(S): Reject bid received in the amount of $207,135. for Orchard Substation Power Transformer Repair and Testing and rebid the transformer and testing work scope. ALTERNATIVES: Provide further direction to staff. Citizens advised: N/A Requested by: Mel Grandi, Electric Utility Director and Jim O’Brien Electric Utility Tech II. Prepared by/Contact: Mary Williamson, Buyer Coordinated with: Sage Sangiacomo, City Manager and Mary Horger, Procurement Manager. Presenter: Mel Grandi, Electric Utility Director Attachments: None 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: 7i April 5, 2017 AGENDA SUMMARY REPORT SUBJECT: REJECT BID FOR ORCHARD SUBSTATION POWER TRANSFORMER REPAIR AND TESTING, SPECIFICATION NO. 17-03 (EUD) Summary: Council will consider rejecting bid for Orchard Substation Power Transformer Repair and Testing, Specification No. 17-03. Background: A Request for Bid was released on February 15, 2017, for the Orchard Substation Power Transformer Repair and Testing. The Bid Notice was published on the Ebid Board with notices being sent via email to contractors listed on the City’s Qualified Contractors list that hold a C-10 State of California Contractors License and posted on the City’s website. A notice was also sent to the North Coast Builders Exchange and was advertised twice in the Ukiah Daily Journal on February 17th and February 24th. The bid opening took place at 2:00 p.m. on March 21, 2017, at the Civic Center located at 300 Seminary Avenue. Only one bid was received in the amount of $207,135.00 from ABB 4350 Semple Avenue, St Louis, MO 63120. Discussion: Staff recommends the bid be rejected for the following reasons: 1. The Bid was Non-Responsive due to the absence of a bid bond. 2. Terms and Conditions, exceptions being attached to their response. 3. The bid was significantly higher than the Engineers Estimate that had been provided. Staff will be reworking the request and going out to bid again at a later date. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A GHD 2235 Mercury Way Suite 150 Santa Rosa California 95407 USA T 707 523 1010 F 707 527 8679 W www.ghd.com January 27, 2017 Reference No. 8410035 Tim Eriksen Public Works Director / City Engineer City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Re: Proposal for Professional Land Surveying Services: Supplemental Services for the Relinquishment of Right-of-Way for the Talmage Road Interchange Project, Ukiah, CA Dear Mr. Eriksen: GHD is pleased to provide this proposal for professional land surveying services to assist the City with survey and legal documentation required for the relinquishment of a portion of the City’s right-of-way at the eastern end of Munson Frontage Road to the State of California as part of the Talmage Road Interchange Projects (Agreement dated March 9, 2010). This proposal is based on our recent discussions regarding right-of-way requirements, and the documentation needed by Caltrans to move forward with the relinquishment process. Background The City is relinquishing a relatively small portion of right-of-way adjacent to the State right-of-way for U.S. 101 at the Talmage Road interchange as part of the improvements to this interchange. Caltrans requires the City to prepare a legal description, plat map and provide a title report or similar records report summarizing the chain of title and encumbrances for the area in question. Rau & Associates is the project surveyor of record, and has provided a proposal to complete the research, documentation and mapping required by Caltrans to move forward with the right-of-way relinquishment process. Talmage Road Interchange Services Right-of-Way Relinquishment Services Ray and Associates proposed scope of services to perform research, prepare a legal description, plat map and provide a title report or similar records report and to field stake the proposed right-of-way relinquishment area is summarized in detail in Attachment 3. GHD has included two (2) hours for the Project Manager to coordinate with Rau and Associates, Caltrans and the City during this process. Proposed Fee GHD and Rau and Associates propose to complete this scope of services for a time-and-materials fee not to exceed $13,956 without written authorization from the City per the attached fee estimate (Attachment 1). Services not included in this proposal can be provided on a time-and-materials basis per the attached GHD Standard Fee Schedule (Attachment 2) or by a negotiated fee. We are available to begin within 5 days of acceptance of this proposal as receipt of an executed contract amendment or written authorization 2017-01-27 GHD Amendment Proposal.docx 2 to proceed. We propose to work efficiently to meet the City’s and other stakeholder’s expectations and goals for this project. We welcome the opportunity to continue to work with the City of Ukiah and the project stakeholders on this important project, and look forward to contributing to its success. Should you have any questions, please do not hesitate to contact me. Sincerely, GHD Inc. Matt Kennedy, PE, TE Project Manager Attachments: 1. GHD Fee Estimate 2. Standard Fee Schedule 3. Rau & Associates Proposal and Fee Estimate Cc: Bill Silva, PE Project Principal Attachment 1 1/27/2017 Page 1 Project Name:Talmage Interchange Client:City of Ukiah Prepared by:Matt Kennedy Date: Job Number:8410035 LABOR CATEGORY >PD Job Civil Sr. Traff Traff Sr Proj.CAD WP PA TOTAL Sub-TOTAL Mgr.Eng.Eng.Eng.Scientist Designer HOURS con- RATE >$225 $195 $160 $195 $165 $140 $125 $100 $100 sultant(s)FEE Task / Item /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr /Hr TASK-1.0 Talmage R/W Relinquishment Services 0 $0 $13,554 $13,554 1.2 GHD Coordination 2 2 $12 $402 2 $12 $13,554 $13,956 TASK- 2.0 APB Pavement Reconstruction 0 $0 $0 0 $0 $0 2.3 Final Design 0 $0 $0 0 $0 $0 $0 TASK- 3.0 APB Low Impact Development 0 $0 $0 0 $0 $0 0 $0 $0 0 $0 $0 $0 TASK- 4.0 RBP Bid Period Support 0 $0 $0 0 $0 $0 $0 TASK- 5.0 Talmage Road Interchange 0 $0 $0 0 $0 $0 0 0 0 0 0 0 0 0 0 0 $0 $0 $0 0 0 0 0 0 0 0 0 0 2 $12 $13,554 $13,956 *OTHER DIRECT COSTS include telephone, mileage, printing, photocopies and other miscellaneous direct expenses. 2.2 Pre-Final Design SUBTOTAL TASK 1.0 SUBTOTAL TASK 4.0 SUBTOTAL TASK 3.0 4.1 Bid Period Services GHD - PROJECT FEE ESTIMATING SHEET January 27, 2017 LABOR COSTS FEE COMPUTATION 1.1 Rau & Associates R/W Services 3.2 Pre-Final Design 2.1 Pavement Reconstruction Strategy SUBTOTAL TASK 5.0 SUBTOTAL TASK 2.0 *OTHER DIRECT COSTS PROJECT TOTALS 3.1 LID Concept & Strategy 5.1 R/W Services 3.3 Final Design 5.2 SWPPP Fee Schedule 2016 USA West Fee Schedule 1 Principals: Environmental Scientists: Level E $185 – 205 Level A $95 - 105 Level F $220 - 250 Level B $110 - 120 Level C $125 – 130 Associates: Level D $130 – 145 Level D $160 - 170 Level E $160 – 175 Level E $180 – 195 Level F $195 – 205 Level F $215 - 240 Industrial Hygienists / Specialist: Safety Professionals: Level B $170 Level A $105 Level C $180 Level B $115 – 120 Level D $190 Level C $125 – 135 Level E $210 - 230 Level D $145 - 160 Level F $250 Level E $170 – 180 Engineers: Technicians/Technologists: Level A $110 – 115 Level A $80 Level B $115 – 125 Level B $95 Level C $135 – 145 Level C $110 – 115 Level D $150 – 165 Level D $120 – 135 Level E $175 – 195 Level E $140 – 155 Level F $210 – 235 Level F $170 - 190 Geologists/Hydrogeologists: Draft/CADD: Level A $110 Level A $75 Level B $120 Level B $85 – 90 Level C $130 - 150 Level C $95 Level D $155 – 180 Level D $110 – 120 Level E $185 – 200 Level E $125 – 155 Level F $210 Level F $165 Environmental Planners: Technical Apprentices: $80 - 90 Level A $115 Level B $125 Intern: $73.00 Level C $130 Level D $135 – 150 Administrative Support: $62.00 Level E $160 – 190 Level F $205 – 210 Environmental Chemists: Level A $115 Level B $125 Level C $130 Level D $135 – 150 Level E $160 – 190 Attachment 2 Fee Schedule 2016 USA West Fee Schedule 2 Employee time will be billed in accordance with the fees listed above. These rates are subject to change on a semi-annual basis. For other than professional employees, time spent over 8 hours per day, time spent on swing shifts, and time spent on Saturdays will be charged at 1.5 times the hourly billing rate. Work on Sundays will be charged at 2.0 times the hourly billing rate and holiday work will be charged at 2.5 times the hourly billing rate. All field personnel charges are portal to portal. Professional employees will not be charged out at premium charge rates for overtime work. Expenses and other similar project related costs are billed out at cost plus 15%. The cost of using equipment and specialized supplies is billed on the basis of employee hours dedicated to projects. Our rates are: A. Office consumables: $6.00/hr B. Environmental Dept/Construction Inspector consumables: $11.00/hr C. Survey Field consumables: $15.00/hr D. Various Environmental, Construction and Land Surveying equipment: At market B. C. D. Payment for work and expenses is due and payable upon receipt of our invoice. Amounts unpaid thirty (30) days after the issue date of our invoice shall be assessed a service charge of one and one half (1.5) percent per month. (*) These rates do not apply to forensic-related services, or to work for which Prevailing Wage obligations exist. It is the responsibility of the client to notify GHD Inc in writing if Prevailing Wage obligations are applicable, in which case the fees will be adjusted proportionate to the increase in labor cost. Rau Project No. 2009-153 Scope of Work – Munson Street ROW Relinquishment to Caltrans Statement of Conditions Defining Work: The Work is to assist GHD and the City of Ukiah with a relinquishment of a portion of Munson Street to Caltrans in order to allow construction of improvements to the south-bound off-ramp onto Talmage road. The City of Ukiah attempted to obtain a title report for the segment of Munson Street, but were not able to because the title company believes it to be too complex of a task to be able to guarantee title. Caltrans has provide information which they believe will aid in establishing any clouds or encumbrances to the title. The Caltrans Right of Way Agent for District 01, Lisa Spellenberg, states: “Lorien Sanchez and I have researched the Talmadge Rd Intersection right of way. The above attachments provide some history of Caltran’s original purchase. The Director’s Deed 992 pertains to the sale of an excess parcel originally a portion of the Caltrans acquisition for Parcel 5077(5098). The Relinquishment document (756) was for excess land relinquished to the County of Mendocino (which appears to have been annexed to the City of Ukiah). The document entitled “Map Talmadge Intersection” may provide some valuable information as it shows survey data. The Policy of Title insurance from the original acquisition showing clean title as of December 27, 1965.” She continues, with a description of what documentation Caltrans will accept in order to recommend that the California Highway Commission accept the Relinquishment from the City of Ukiah. “You are tasked with determining if the area proposed to be relinquished back to Caltrans has had the title clouded by any actions (such as a Utility easement, etc.) since it was relinquished in 1965 to the County, or since the annexation by the City. We would need a statement in writing that you have investigated and that you did or did not find any items that would impact the area proposed for relinquishment back to Caltrans. “ Task 1 – Research, Utility Coordination, Records Report Review documents provided by Caltrans and the City of Ukiah; obtain and review copies of other maps and deeds revealed by the research effort which may pertain to the area to be relinquished; contact the City of Ukiah, PG&E(both gas and electric), AT&T, Comcast to ascertain if they have any records of underground or overhead facilities in the area to be relinquished and their maintenance needs; conduct field review to observe any apparent utility facilities. 1 Prepare a records report. Summarize records in tabular and narrative form to allow an efficient re- tracement of the chain of title in the future. The period of time to be covered will include the time between 12-27-65 when the State of California acquired portions of the right-of-way which is now known as Munson Frontage Road (formerly State Highway 222 – Talmage Road) from Russell Scott, et al in a condemnation proceeding recorded in Book 706, Page 210, Mendocino County Records to the present time. Such records will include maps of record and deeds. A tabular summary will follow the course of the property from one transfer of interest to the next. The narrative will describe what happened and why. Utility interests will be described with facilities affected by the relinquishment together with needs to maintain facilities in the area to be relinquished to the State. The records search document will be signed and sealed by a licensed professional stating his opinion that there are or there are not items which will impact the relinquishment to Caltrans. Task 2 – Review and Sign Legal Description; Prepare Relinquishment Plat and Utility Exhibit Map Review the recommended draft legal description and seal and sign it. Some editing of the preliminary draft will be required to establish a basis of bearings and to establish a location which can be retraced from existing right-of-way monuments. Prepare a relinquishment plat which correlates to the Caltrans Right-of-Way (ROW) established in 2011 using the Grant Boundary Method as described in a “Readme” file prepared by Bob Ray Knuth, PLS, and dated 6/20/2011. RAU has located one monument shown on the 2011 Caltrans ROW map. A second monument to establish a “Basis of Bearing” will be field located as part of this task. The plat will show the “ties” to the Caltrans Monuments. A mathematical closure of the area to be relinquished and between the monuments located for the “ties” and the relinquishment area will also be prepared. Encroachments by various utilities within and immediately adjacent to the area to be relinquished will be included in a separate “Utility Exhibit Map.” It is anticipated that there will be one review with some minor revisions of both documents by the Caltrans Right of Way Department. Task 3 – Field Stake ROW Relinquishment End Points Stake the end points of the relinquishment with impermanent wood stakes for observation by City and Caltrans Personnel. The City may wish to have permanent ROW monuments set and a Record of Survey prepared and filed to make the proceedings of Record in Mendocino County. That is provided as an optional task below. Optional Task 4- Record of Survey (not included) In lieu of impermanent stakes, set ROW monuments at each end of the relinquished area and prepare a Record of Survey. The Record of Survey would show the Monuments set by Caltrans in their 2011 2 survey along the western Caltrans Boundary of US 101 from just south of the Doolin Creek Bridge across US 101 to approximately 1500 feet south. This segment will include the boundary between Caltrans and the City at Talmage road and along the southwestern edge where modifications of the on-ramp to Talmage Road will be made. Deliverables: Records Search Document, wet-signed and sealed by a professional engineer qualified to prepared land survey documents; an electronic version in pdf format will accompany the hard copy. Two copies of each will be delivered to GHD for distribution to Caltrans and the City of Ukiah. Wet signed and sealed hard copies of Legal Description with Plat of the area to be relinquished Electronic Files of Same Signed and sealed hard copy of the “Utility Exhibit Map” Electronic files of Utility Exhibit Map Pdf copies of mathematical closures. It is anticipated that all deliverables will be routed through GHD for distribution. Optional Task Delivery (not included) Prepare a Record of Survey of the Right-of-Way, Including the Relinquishment as described above. Process the Record of Survey through the County Surveyor’s Office for Approval to Record Provide an electronic copy of the map Schedule RAU is prepared to initiate the work within 5 days of receipt of a notice to proceed. The research and utility coordination phase is expected to take two to four weeks, depending on how responsive the utility companies are to requests for information. Within two weeks after information is obtained from the utility companies, it is anticipated that the Record Search Document, together with the relinquishment plat and utility exhibit map will be prepared and submitted for review and comment through GHD to Caltrans and the City of Ukiah. End points of the relinquishment area will be staked during this period. When comments are received back from Caltrans and the City, the changes will be made within a week and the corrected documents returned for review, wet-signed and sealed. If a Record of Survey is desired, permanent monuments of the end points of the relinquishment area will be set and the map submitted for review by the County Surveyor’s Office within two weeks after approval of the documents prepared under Task 1 and Task 2 by the agencies. 3 Attachment 3 Job No. R09153.0- 2017PHASESRate/Costhrs/costtotalhrs/costtotalhrs/costtotalhrs/costtotalhrs/costtotalRegistered Civil Engineer Principal 175 20 3,500.00$ 6 1,050.00$ 1 175.00$ -$ -$ Associate Civil Engineer140-$ -$ -$ -$ -$ Survey Manager1356 810.00$ 4 540.00$ 1 135.00$ -$ -$ Chief of Party (PW)135-$ -$ -$ -$ -$ GPS Specialist 135-$ -$ -$ -$ -$ Construction Inspector (PW)128-$ -$ -$ -$ -$ Instrument Operator (PW)118-$ 4 472.00$ 3 354.00$ -$ -$ Materials Tester (PW)(w/o Nuclear Gauge Charge)116-$ -$ -$ -$ -$ Sr. Staff Engineer115-$ 2 230.00$ 2 230.00$ -$ -$ Rodman (PW)115-$ 4 460.00$ 3 345.00$ -$ -$ QSD/QSP Specialist (non PW)110-$ -$ -$ -$ -$ Technician ll 72-$ -$ -$ -$ -$ Project Coordinator70-$ -$ -$ -$ -$ Administrative60-$ -$ -$ -$ -$ Technician l38Vehicle Use (miles)0.5353016.05$ 105.35$ 105.35$ -$ -$ RTK GPS Equipment (per day)600-$ -$ -$ -$ -$ Lab Unit Prices0-$ -$ -$ -$ -$ Computer Hours10-$ -$ -$ -$ -$ Permit Fees0-$ -$ -$ -$ -$ Backhoe and Operator100-$ -$ -$ -$ -$ Outside Servicecost + 15%-$ -$ -$ -$ -$ Reimbursablescost-$ -$ -$ -$ -$ BUDGET FOR PHASE26 4,326.05$ 20 2,757.35$ 10 1,244.35$ 0-$ 0-$ PW = Prevailing WagesTotal Sheet 18,327.75$ (1) Title Report=Total Sheet 2 3,430.00$ (2) Map Checking Fees=Total Sheet 3-$ (3) Recording Fees=Total Sheet 4-$ (4) Monuments=Reimbursables28.00$ Subtotal0GRAND TOTAL=11,785.75$ Date: 01-24-2017Job Name: Talmage Road ImproveLegal Des -Plat- Ute MapRes -Coord-RecordT-1T-2Stake CornersT-3Fee Schedule 33GHD SubconsultingWorksheet Page 1` Page 2 of 2 Therefore, Staff is recommending that Council consider adding NCO to the Council Special Assignment List, and authorize the Mayor to sign the letter of appointment (Attachment #1) appointing Tami Bartolomei, Community Services Administrator, to serve on the NCO Governing Board as the Council’s appointed representative for the City of Ukiah. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A 300 Seminary Avenue • Ukiah • CA • 95482-5400 Phone: (707)463-6200 Fax: (707)463-6204 www.cityofukiah.com April 5, 2017 Mr. Ross Walker Governing Board Chair North Coast Opportunities, Inc 413 North State Street Ukiah, CA 95482 Dear Mr. Walker On behalf of the City Council of the City of Ukiah, I would like to appoint Tami Bartolomei, Community Services Administrator, to serve on the North Coast Opportunities Governing Board as the City Council of the City of Ukiah’s representative. If you have any questions or require any additional information, please contact me. Sincerely, Jim O. Brown Mayor for the City of Ukiah Page 2 of 2 The text of the measure said: “Measure P – Shall the one-half of one percent (0.5%) transaction and use tax used to fund essential public services, including police, fire prevention and protection, and emergency medical services, set to expire on September 25, 2015, be extended by Ordinance No. 1149 until repealed by majority vote in a municipal election?” In November of 2014, 76% of Ukiah’s participating voters approved Measure P. The Measure P Ordinance No. 1149 is included as Attachment #3. Discussion: Resolution 2014-28 unanimously approved by the City Council, resolved that the City of Ukiah would create; 1) An expenditure plan for the use of revenue from a sales tax measure, which would include the accounting of Public Safety revenues received and established a minimum level of Public Safety services. 2) The creation of an Oversight Committee, to review the public safety budgets and revenue received, and prepare a report to Council. Persons appointed to the committee by Council should, “represent a broad range of interests in the City, including business owners, ethnic minorities, a City firefighter, a City police officer, homeowners and tenants. 3) A report on accounting for the Measure S and P sales tax revenues. In anticipation of City Council establishing an Oversight Committee, the Finance Director prepared a Measure P reporting document (Attachment #4) which was reviewed by Council at the March 1st City Council meeting. At the March 1st City Council meeting, Council received this report, and asked that community members come forward to serve on this committee. From March 6th to March 24th, staff solicited members of the community to serve on the Measure P Oversight Committee. A local newspaper article appeared in the Ukiah Daily Journal indicated our search for members and announcements were made on social media seeking potential volunteers willing to serve. From these recruitment efforts, seven members of the community applied and their applications have been included as Attachment #5 to this report. The purpose of this report is to review the applications and begin the process of creating a Measure P Oversight Committee to review Measure P expenditures since November of 2014. Recommendations: Consider the establishment of the five-member Measure P Oversight Committee. Per Resolution 2014-28, the five-member committee should represent a broad range of interests in the City, including such interests as business owners, ethnic minorities, (1) Ukiah City Firefighter, (1) Ukiah City Peace Officer, and homeowners and tenants. Staff recommends Eric Singleton, City Fire Engineer and Noble Waidelich, Ukiah Police Department Sergeant, to fill the two designated Public Safety positions. Furthermore, Staff recommends that Council review the at-large applications and consider nominations and appointments of the other three seats. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A RESOLUTION NO. 2014-28 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING AN EXPENDITURE PLAN FOR PUBLIC SAFETY AND AN OVERSIGHT BOARD TO MAKE PERIODIC REPORTS ON THE PERFORMANCE OF THE EXPENDITURE PLAN WHEREAS: 1. The City of Ukiah is 47 square miles in size, but is surrounded by additional urban areas and residential subdivisions within an unincorporated portion of Mendocino County. The Ukiah Valley is the most populous portion of Mendocino County, containing, at least, 2/3 of the total county population; and 2. The California Department of Finance estimates the population of the City of Ukiah ("City") Ias of January 1, 2004, at 15,907 people and 16,185 as of January 1, 2014; and 3. Ukiah is the County Seat for Mendocino County and a commercial center for Mendocino County, Lake County, Southern Humboldt County and Northern Sonoma County; and I4. As such during business hours, the City population swells to perhaps as many as 40,000 people, including people who work, shop and receive services in Ukiah; and 5. Ukiah also is located on U.S. Highway 101, which is the major north-south highway west of I Interstate Highway 5, and links southem California to Northem California and Oregon; and 6. Consequently, a small city with a population of 15,907 people in 2004 and 16,185 in 2014 must provide law enforcement, fire protection and emergency medical services to a day time population of 40,000, and respond to emergencies within the City, on U.S. Highway 101, and on a mutual aid basis within the larger Ukiah Valley; and 7. Public safety services are a general fund obligation of the City, which receives revenues from ad valorem property taxes, sales taxes and vehicle license fees. The City receives only 1% of the gross receipts from taxable retail sales within the City and less than 10% of the property taxes collected from real property located within the City; and 8. While population within the Ukiah Valley and City of Ukiah has grown over the last 30 years, calls for police services have also grown significantly. Calls for police services has increased from around 2500 calls in 1969 to over 25,000 in 2014, or by 1000%. Calis for service have increased in virtually every category, including assaults with weapons, burglary, thefts and shoplifting, drugs, sexual assaults and domestic violence; and 9. In contrast, between the years 1989 and 2003, the number of sworn officers in the Ukiah Police Department has remained constant at 28 officers; and 10. Calls for fire services have also grown. Between 1986 and 2012, fire calls increased 61% from 1.353 in 1986 to 3,277 in 2012; and 11. In 1988, the Ukiah Valley Fire District contracted with the City of Ukiah to provide fire services. The combined fre department had 15 firefighters; and 12. In 1988, the Ukiah Valley Fire District and City of Ukiah fire departments elected to I independently provide fire services to their communities. Over the next 20 years, City of Ukiah Fire Department continued to provide at least 15 firefighter staffing; and 13. In 2003, due to the State of California's budget deficit, the City's general fund revenues were decreased significantly; and 14. As a result, the City was faced with substantial deficits for fiscal years 2004-2005, which required lay-offs or other reductions in expenditures for public safety services in the City; and 15. These budget deficits lead to deferment of equipment replacements, including fire engines, the City's ladder truck and police patrol cars; and 16. To address the significant demands of an increased public safety workload and provide funding for necessary equipment, in June of 2005, the Citizens of Ukiah passed by a majority vote, Measure S, a '/z cent general sales tax measure (" Measure S Sales Tax"), and Measure T, an accompanying advisory measure, which said that the first priority for additional sales tax funds should be support of essential public safety services; and 17. Measure S provided funding that has been used to increase the Police Department staffing from 28 sworn officers to 32 sworn officers. The 4 additional officers (one per work shift) were added to address workload increases and decrease response times; and 18. Measure S allowed the Fire Department to replace aging fire equipment, including the City's essential ladder truck, and other fire vehicles, and maintain a staff of at least 15 firefighters, with at least 4 firefighters on duty per shift for emergency services; and 19. In 2008, the Nation, State of California and the City of Ukiah, experienced a recession which significantly reduced city revenues from sales taxes, including revenues received from Measure S. Due to these budget deficits, the City's general fund revenues were significantly decreased; and 20. This unanticipated nation-wide recession forced the City of Ukiah to eliminate open positions, layoff personnel and reduce general fund budgets; and 21. Over the last six years, every employee in the City of Ukiah has had a 5% reduction in pay, and absorbed increases to their health insurance costs, in addition to various unpaid furloughs and reduced work hours which were made necessary by significantly reduced sales and property tax revenues ; and 22. The City of Ukiah fully complied with the PERS retirement cost reductions, reducing retirements costs for new employees; and 23. The Police Department was reduced over a two year period from 32 sworn officers to 30 sworn, then 26 sworn officers, because of the 2008 recession and reduction in General Fund revenues and Measure S revenues; and 24. The Fire Department operated ambulance service was eliminated as an additional measure to economize in response to the 2008 recession and reduction in Measure S Sales Tax and General Fund revenues, because the cost of the ambulance service exceeded the limited compensation from reduced Medi-Cal and Medi-Care reimbursements; and 25. As the economy improved, and General Fund revenues and Measure S Sales Tax revenues have been restored to the levels prevailing before the 2008 recession, the City of Ukiah has worked to improve public safety services to the Ukiah community; and 26. For a two year period commencing January 1, 2014 and ending on December 31, 2015, the City of Ukiah and the Ukiah Valley Fire District have entered a contract to provide fire services to the entire Ukiah Valley and City of Ukiah; and 27. This agreement has increased the available on-duty firefighting staff to 18 firefighters, (11- City paid personnel, 6-District personnel, and shared Fire Chief ) a combined two- department volunteer firefighter force, with an increased firefighter capacity to at least 6 firefighters on-duty each day for firefighting and Paramedic medical services; and 28. The City Council has reauthorized the Police Department to increase staffing back to 32 sworn officers. The additional officers (which allow for an extra officer per work shift) were added to address workload increases and decreased response times; and 29. Unlike the City's 1% share of the current 825% statewide sales tax, all sales taxes produced by Measure S must remain in the City of Ukiah. These taxes cannot be taken away by the State of California. Although enacted as a general tax which can lawfully be used for any municipal purpose, the City Council has and by this resolution will continue to place the Measure S Sales Tax revenue in a designated account within its budget and financial statements so that its use for public safety services can be reviewed, audited and accounted for; and 30. In addition, it is the intent of this resolution to commit the City to maintain the amount of general fund revenues supporting public safety at or above current levels. This resolution also commits the City to maintain the current level of public safety services, including a minimum of 32 sworn police officer, and the level of fire prevention and protective services commensurate with the City of Ukiah's portion of any City and District contractual agreement forjoint fire, paramedic and fire prevention operations; and 31. Measure S will sunset in September of 2015. Without the continuation of Measure S Sales Tax revenue, the City of Ukiah could not maintain current Police and Fire services. Without Measure S Sales Tax revenues, the City of Ukiah would be forced to reduce or eliminate some or all of these essential public safety services. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 1. EXPENDITURE PLAN: While the revenue received by the City from Measure S Sales Tax is unrestricted general fund revenue, by this resolution, the City Council commits to using these revenues to provide public safety services. "Public safety services" means law enforcement and crime prevention services provided by the Ukiah Police Department, and fire protection and prevention and emergency medical services provided by the Ukiah Fire Department, by contract with the Ukiah Valley Fire Protection District or any other arrangement approved by the City Council. These taxes may be used to pay for such public safety services expenses as the training and salaries, including overtime and specialty pay, and fringe benefits, of public safety officers and support staff working in the Police Department and of firefighters, emergency medical technicians and support staff providing fire prevention and protection services to the City. These funds may also be used for operating expenses, and the purchase of vehicles, equipment and supplies, and capital improvements used exclusively for Public safety services. A. Accountinq for Public Safetv Services Revenue. In each fiscal year commencing with the 2014-2015 fiscal year, for purposes of accounting for the use of these revenues, the City shall continue to credit to an account or fund in the City's budget and financial records, to be designated by the Finance Director, all of the following: (1) Measure S Sales Tax revenue; and (2) "Public Safety Revenue" which is the revenue produced by the Police and Fire Departments. 3 B. Minimum level of Public Safetv Services. The City shall maintain a minimum level of public safety services, but nothing in this resolution prevents the City Council from establishing a higher level of public safety services, reorganizing or changing the method of providing public safety services or reducing staffing for public safety where required by financial necessity resulting from circumstances beyond the control of the City, such as a prolonged recession like the one experienced in 2008 or other prolonged and substantial reduction in general fund revenues. The minimum level of public safety services shall be the level of such services available in the City in the 2014-15 fiscal year, including the following: (1) thirty-two 32) full-time peace officers as defined in Penal Code Section 7 and Title 3, Part 2, Chapter 4.5 commencing with Section 830), and the level of fire prevention and protective services commensurate with the City of Ukiah's portion of any City and District contractual agreement for joint fire, paramedic, and fire prevention operations . 2. OVERSIGHT COMMITTEE. Every two years after the Effective Date of Ordinance No. 1149, extending the Measure S sales tax, the City Council shall appoint five people to an Oversight Committee" the only function of which shall be to review the City's budget for public safety services and the expenditure of the revenues so budgeted. The persons appointed to the Oversight Committee should represent a broad range of interests in the City, including such interests as business owners, ethnic minorities, (1) Ukiah City firefighter, (1) Ukiah City peace officer, homeowners and tenants. The City Manager shall provide the Oversight Committee with any information it requests which is not exempt from disclosure under the California Public Records Act and shall assist it in organizing and analyzing the information so provided. The Oversight Committee must prepare a written report which shall be presented to the City Council at a noticed public hearing and which shall be available to the general public for not less than 10 calendar days prior to the scheduled hearing date. The report shall contain an analysis of the level and types of service provided by the City's police department and fire department or other arrangement approved by the City Council, the revenues and expenditures of the designated fund or account. It shall also make recommendations concerning the future use of these funds and levels and types of service. The Oversight Committee shall dissolve after it files its report with the City Council, until a new Oversight Committee is appointed for the next two year review. 3. ACCOUNTING FOR MEASURE S SALES TAX REVENUE. All Measure S Sales Tax revenues and all interest on said revenues shall be credited to the designated fund or account and shall be designated for use in accordance with this Resolution. PASSED AND ADOPTED ON JUNE 24, 2014, BY THE FOLLOWING ROLL CALL VOTE: AYES: Councilmembers Scalmanini, Crane, Thomas, Landis, and Mayor Baldwin NOES: None ABSENT: None ABSTAIN: None Philip E. Idwin, Mayor ATTEST: s. i _ G , - Kristine Lawler, City Clerk 4 i RESOLUTION NO. 2014-29 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH PLACING MEASURE ON BALLOT FOR THE NOVEMBER 4, 2014 REGULAR MUNICIPAL ELECTION, TRANSMITTING MEASURE TO CITY ATTORNEY FOR IMPARTIAL ANALYSIS AND ESTABLISHING DEADLINE FOR ARGUMENTS FOR OR AGAINST THE MEASURE. WHEREAS, 1. Election Code Section 10403 authorizes the City Council of the City of Ukiah (City) to request the Mendocino County Board of Supervisors to conduct a municipal election on behalf of the City and consolidate that election with any other elections scheduled for that date; and 2. On June 4, 2014, the City Council adopted a resolution requesting the Mendocino County Board of Supervisors to perform those services and consolidate the City election with statewide general election scheduled for that date; 3. On June 24, 2014, the City Council adopted Ordinance No. 1149, extending the one-half of one percent sales tax, approved in the election held on June 7, 2005, which only becomes effective if approved by not less than a majority of the voters voting in the November 4, 2014, election; and 4. The Elections Code requires the City Council to set forth in a resolution the exact form of any ballot measures to appear on the election ballot and to take other steps related thereto; NOW, THEREFORE, BE IT RESOLVED that: 1. The City Council hereby places a measure on the ballot for the November 4, 2014. election which shall read as follows: MEASURE _ Shall the one-half of one percent (0.5%) transaction and use tax used to fund essential public services, including police, fire prevention and protection, and emergency medical services, set to expire on September 25, 2015, be extended by Ordinance No. 1149 until repealed by majority vote in a municipal election? Yes No 2. Measure form: City of Ukiah Ordinance No. 1149, enacted by the voters pursuant to subsection 1 of this Resolution. shall be in the form set forth in Attachment 1. 3. The City Clerk shall transmit a copy of the ballot measure set forth in section 1 of this Resolution and the form of Ordinance No. 1149 set forth in Attachment 1 to this Resolution to the City Attorney for the preparation of an impartial analysis as required by Elections Code Section 9280. 4. The City Clerk shall post the notice of the deadline for filing ballot arguments for or against the above ballot measures on June 25, 2014. I 5. In accordance with Election Code Section 9286, ballot arguments for or against the measures are required to be filed by July 8, 2014, after which no arguments for or against the Resolution 2014-29 Page 1 of 2 J measures will be accepted. PASSED AND ADOPTED by the City Council of the City of Ukiah on June 24, 2014, by the following roll call vote: AYES: Councilmembers Scalmanini, Crane, Thomas, Landis, and Mayor Baldwin NOES: None ABSTAIN: None ABSENT: None Philip E. aldwin, Mayor ATTEST: i. Kristine Lawler, City Clerk Resolution 2014-29 Page 2 of 2 I MEASURE ORDINANCE NO. 1149 AN ORDINANCE OF THE VOTERS OF THE CITY OF UKIAH EXTENDING THE EXISTING TRANSACTIONS AND USE TAX BY AMENDING SECTION 1799.5 OF CHAPTER 8C OF DIVISION 1 OF THE UKIAH CITY CODE The voters of the City of Ukiah hereby ordain as follows: SECTION 1. FINDINGS. The voters of the City of Ukiah hereby find as follows: The City Council and the people of the City of Ukiah hereby find: 1. At an election held on June 7, 2005, by a vote of 1442 for and 634 against, 69.46% of the voters of the City of Ukiah approved, as a general tax, a one-half cent (0.5%) Transaction and Use Tax, commonly called a "Sales Tax" and known as "Measure S." 2. Measure S is codified at Chapter 8c of Division 1 of the Ukiah City Code and has an expiration date under Ukiah City Code Section 1799.5 on the tenth anniversary of the Operative Date thereof, unless extended by a majority vote in a subsequent municipal election. 3. The Operative Date of Measure S was the date when the half-cent transactions and use tax was first imposed. That date was September 25, 2005, 110 days after the voters approved the measure. 4. Under Ukiah City Code Section 1799.5, the Measure S Sales Tax will terminate on September 25, 2015. 5. When Measure S passed, the voters overwhelmingly answered "Yes" to the question posed by Measure T, an accompanying advisory measure which asked: "Should additional funds for public safety, including police, fire and emergency medical services, be the first priority for the use of new sales tax revenues in the City of Ukiah?" 6. In 2005, when Measures S and T passed, the City spent $5,670,719 on public safety, including police, fire and emergency medical services. 7. Under the guidance from Measure T, the City has spent as follows for public safety: i . 5,286,893 1,092,344 0- 6,379,237 i i 5,177,424 2,277,084 27,861 7,482,369 i i : 5,451,375 2,322,584 3,794 7,777,753 i • 6,127,841 2, 129,720 1,337 8,258,898 7,152,310 2,013,673 79,918 9,245,901 5,991,911 2,153,968 136,321 8,282,200 6,233,347 2,229,049 88,158 8,550,554 6,826,934 2,412,549 7,670 9,247,153 j 6,250,200 2,371,888 500 8,622,588 Page 1 of 3 I8. While Measure S revenues are general fund revenues subject to the budgeting discretion of the City Council, it has, in fact, used the taxes from Measure S exclusively for public safety. In addition, the City Council has increased general fund support for public safety by over 4.5 million since 2005. The City Council chose consistently throughout the financial crisis I since 2008 to sustain funding for public safety, and added to it from the General Fund, even I in the face of making significant spending reductions in other city operations and non-safety personnel. Despite this level of spending the City has struggled to maintain adequate personnel and equipment to meet the demands for public safety services which have increased substantially over the past 10 years. 9. The 10 year sunset in Measure S has created a significant problem for the City's Police Department in recruiting and retaining new peace officers, because the City cannot assure new recruits that it will have funding for their positions, after the tax revenue from Measure S terminates in 2015. 10. This measure, if passed by the voters, continues the sales tax enacted by Measure S beyond its current repealed date and provides that the tax will remain in effect until it is repealed by majority vote at a municipal election. 11. The City Council determined at its special meeting on June 24, 2014, to place this measure on the ballot for the regular municipal election on November 4, 2014, as authorized by Revenue and Taxation Code section 7285.9. 12. While this measure will continue the tax indefinitely, unless repealed or amended by the voters, a City Council resolution adopted at its meeting on June 24, 2014, will establish a committee composed of inembers of the public (the Oversight Committee) to review and report on the use of the revenue from the tax. The extension of the tax shall be approved if the measure receives at least a majority of affirmative votes. 13. Based on all of the information presented at the City Council meetings on June 18 and 24, 2014, both written and oral, including the staff reports, minutes, and other relevant materials, the City Council finds that under CEQA Guidelines 15060(c)(2) and 15378, subdivisions (2) and (4) of subdivision (b), this action does not constitute a project under CEQA and, therefore, review under CEQA is not required. SECTION 2. AMENDMENT OF SECTION 1799.5 OF THE UKIAH CITY CODE. Section 1799.5, "Repeal of Tax," of the Ukiah City Code shall be amended to read as follows: 1799.5 REPEAL OF TAX The tax imposed by this chapter shall be made permanent and remain in full force and effect, unless and until repealed by a majority vote at a general municipal election. SECTION 3. ORDINANCE TO BE SUBMITTED TO THE VOTERS. This ordinance shall be submitted to the voters at an election to be held on November 4, 2014. Upon approval by a majority of the voters of the City voting on this ordinance, the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 ("Measure S") shall be continued indefinitely, unless repealed by majority vote in a subsequent municipal election. ISECTION4. SEVERABILITY. i If any provision of this ordinance or the application thereof to any person or circumstance is held invalid by a court of competent jurisdiction, the remainder of the ordinance and the Page 2 of 3 application of such provision to the other persons or circumstances shall not be affected thereby. The voters of the City of Ukiah hereby declare that they would have adopted each and every provision of this ordinance regardless of the invalidity of any other provision. SECTION 5. CODIFICATION. Upon adoption of this ordinance pursuant to the voter approval referenced herein, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this ordinance in the Ukiah City Code. SECTION 6. EFFECTIVE DATE. If this ordinance is approved by a majority of the voters voting on the issue at the November 4, 2014 election, pursuant to Elections Code Section 9217, this ordinance shall become effective ten (10) days after the City Council declares the results of the election. The Operative Date of the Transactions and Use Tax set forth in City of Ukiah Ordinance No. 1063 shall not be affected by this ordinance. Approved on June 24, 2014 by the following roll call vote of the Ukiah City Council: AYES: Councilmembers Scalmanini, Crane, Thomas, Landis, and Mayor Baldwin NOES: None ABSENT: None ABSTAIN: None Philip E. Idwin, Mayor ATTEST: li ' Kristine Lawler, City Clerk II Page3of3 CITY OF UKIAH MEASURE P ANALYSIS Fiscal Year 2015-16 Measure P: Transaction and Use Tax Measure P Baseline Increase Expenditure Uses by Category FY 2014-15 FY 2015-16 (Decrease) Police: Sworn officers (Note 1)32 32 - Misc personnel (Note 2)18 19 1 Personnel 6,049,608$ 6,684,697$ 635,088$ Operations (Note 3)2,660,085 2,488,139 (171,946) Capital 186,594 206,006 19,412 Total police (Note 4)8,896,287 9,378,842 482,555 Fire: Firefighters: City 11 11 - UVFD 6 6 - Personnel 1,506,406 1,721,394 214,988 Operations: Contractual 516,180 393,179 (123,001) Other 530,822 778,557 247,736 Capital 30,400 31,129 730 Total fire 2,583,807 2,924,260 340,453 Total public safety 11,480,094 12,303,102 823,008 Dedicated Revenue Sources Measure P transaction and use tax 2,465,521 2,563,698 98,177 Public safety revenue: Police 262,254 277,132 14,878 Fire 37,235 73,828 36,593 Other (Note 5)739,607 574,112 (165,495) Total revenue 3,504,617 3,488,770 (15,847) Excess (deficiency) revenues over expenditures (7,975,477) (8,814,332) (838,855) Other Financing Sources General revenues, general fund 7,975,477 8,814,332 838,855 Remaining resources -$ -$ -$ Notes: 1) The City budgeted for 32 officers in FY 15-16. Actual number of filled positions fluctuated higher and lower due to illness/injury/attrition. 2) Increase reflects addition of a dispatch supervisor. 3) Includes dispatch services. 4) Excludes parking enforcement expenditures. 5) Includes dispatch service revenue, except for general fund contributions. Excludes parking enforcement revenues. Uses and Sources Public Safety Activities Comparative, Baseline (2015) to June 30, 2016 Eligible Measure P Costs Prepared by Finance Department 2/22/2017 - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 2008-09 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Measure S/P Over Time Expenditures to Revenues FY 2008-09 to 2015-16 Police expenditures Fire expenditures Measure S revenue General revenues REDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTEDREDACTED REDACTED REDACTEDREDACTEDREDACTEDREDACTEDREDACTED Page 2 of 3 would provide guests with a wine country hotel experience” Further, sites in this area are not restricted to two stories by the Ukiah Municipal Airport Master Plan, allowing for greater development flexibility. This recommendation is supported by projected occupancy rates, operating income, historic performance of the competitive market, and an evaluation of the current lodging inventory, all of which are detailed in the study. The study has already been utilized by the Receiver for the Palace Hotel. However, the number of rooms that could be provided in the Palace Hotel would not satisfy the overall demand, based on information provided in the study. Therefore, the downtown may be able to support both the development of the Palace Hotel and a new project. Discussion: The results of this study provide the City with the necessary data and the opportunity to invite private developers to invest in Ukiah’s downtown, which could in turn be a catalyst for additional investment. This study is very timely, as the hotel industry is trending toward downtown hotels. Younger travelers are actively seeking “authentic” experiences and properties that possess the personality of the city and neighborhood, as opposed to homogenous environments that could be located anywhere. Proximity to a city’s culture, art, and trendy eateries have become a major selling point for meeting and travel planners. A hotel in downtown Ukiah would be within easy walking distance of the Conference Center, numerous unique dining options, the courthouse, the hospital, and more. Furthermore, an upscale, downtown hotel would provide expanded opportunities to leverage Visit Mendocino County’s $1.6 million budget for marketing. For roughly 20 years, and through various community planning documents, the need for an “anchor business” has been identified for the downtown. An effective anchor business is its own destination, attracting a steady flow of customers, even on weekends and in the evenings. Currently, the courthouse and the Savings Bank are the major attractors, both of which are closed on evenings, weekends, and holidays. As a result, downtown businesses struggle to retain those customers outside the court’s and bank’s office hours. Furthermore, though TOT revenue has increased by over 50% in recent years, an analysis of TOT and sales tax reveals that the bulk of those benefits have been concentrated in the Airport Park Boulevard area, not the downtown. This is because currently, Ukiah’s top-end hotels are situated in a business park along the freeway, 1.5 miles away from the downtown. While convenient for the business traveler or those who are just stopping over for a night, this location is less desirable for leisure travel and, as indicated in the study, doesn’t provide a “wine country” experience. Based on information obtained through Visit Ukiah’s work in the tourism industry, an upscale hotel in the downtown would not just increase Ukiah’s lodging inventory; it would likely attract a new demographic, one that is highly compatible with the expanding wine industry and the downtown dining options. Already, visitor spending in Mendocino County amounts to over $361 million and supports roughly 6,000 jobs. Based on current TOT data, this hotel could expect to bring in over $250,000 of TOT revenue per year, not to mention the multiplier effect on sales tax generation with the nearby businesses. Hospitality is becoming an increasingly important segment of the local economy, and a new hotel in the downtown would create jobs, support existing retail and restaurants, provide additional business for the Ukiah Valley Conference Center, and provide an additional source of revenue for essential services, such as police, fire, streets, etc. At this time, Council is asked to provide direction to Staff regarding the next steps. Options are outlined below: 1. Actively work to attract a hotel developer to downtown Ukiah The typical process to attract a hotel developer would be to release a request for qualifications (RFQ) that provides the feasibility study and defines the City’s role in the process. Under this option, Staff Page 3 of 3 recommends identifying all three publicly-owned lots, along with the possibility of assembling privately- owned parcels, as development sites. Each site has potential advantages that might appeal to different developers, and this open process may reveal opportunities not previously recognized. As for terms, a long-term ground lease would help maximize profits for the City, providing funds that could supplement the City’s essential services or be dedicated to improvements in the downtown. The RFQ and subsequent negotiations could be managed by City Staff or by a firm like CBRE, who performed the study and who has active connections in the lodging industry. If managed by an outside firm, the costs would likely be in the $10,000-30,000 range, depending on the scope of services. There are no guarantees that this process would ultimately result in a development, but this process— with a “fresh” study, offers the highest likelihood of success. If multiple responses are received, Staff (or their agent, if desired) would review and rank those responses for Council’s consideration. Upon Council’s direction, Staff would then develop an exclusive negotiating agreement that would set the stage for the exploration of a possible project. 2. Use the study to incentivize private development on privately owned parcels The study provides important information about the local hotel industry and the Ukiah area. Staff could distribute the study to downtown property owners and developers to attract interest locally. Aside from staff time, there are no costs associated with this option. However, Staff believes a project of this magnitude will require a larger search, like the one envisioned in the RFQ process, in order to attract the right developer. Therefore, Staff believes this option is less likely to yield results. Other Considerations: It is important to acknowledge that developing a hotel in the downtown would likely impact parking. It is feasible, however—and could be made a requirement of the development— that those impacts be mitigated. For example, the peak parking hours in the downtown are between 10am and 2pm. This is extremely compatible with the demand of a hotel, which experiences peak hours from the early evening to the early morning hours. Another possible solution is agreements for shared parking in lots that are otherwise only used during the day. Additionally, when the new courthouse is constructed, it will include dedicated parking for its employees and visitors, which will have a significant positive impact on the downtown parking. The Parking Ad Hoc Committee is working to develop solutions for the downtown and is mindful of the need for flexibility due to changing conditions, whether it is the development of a project like this, the relocation of the courthouse, or other factors. Parking and other impacts, along with mitigation measures, would be explored through project development. Staff is requesting Council’s direction regarding the above options or an alternative. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No COU No. 1617-096 COU No. 1617-096-A1 Date of the Report: November 4, 2016 Prepared for: Mr. Sage Sangiacomo City Manager Ms. Shannon Riley Senior Management Analyst/Visit Ukiah Administrator City of Ukiah 300 Seminary Avenue Ukiah, California 95482 Prepared By: CBRE Hotels 101 California Street, 44th Floor San Francisco, California 94010 16-490SF-0113 Chris Kraus Managing Director CBRE Hotels CBRE, Inc. 101 California Street, 44th Floor San Francisco, CA 94111 +1 415 652 4483 Mobile chris.kraus@cbre.com www.cbrehotels.com COMMERCIAL REAL ESTATE SERVICES November 4, 2016 Mr. Sage Sangiacomo City Manager Ms. Shannon Riley Senior Management Analyst/Visit Ukiah Administrator City of Ukiah 300 Seminary Avenue Ukiah, California 95482 Re: Market Demand and Analysis of Economic Feasibility Proposed Hotel – Downtown Ukiah Ukiah, California 95482 CBRE, Inc. File No. 16-490SF-0113 Dear Mr. Sangiacomo and Ms. Riley: In accordance with your request, we have completed our analysis, which is a study of the potential market demand and preparation of a statement of estimated annual operating results for the development of hotel to be located in Historic Downtown Ukiah (the “Hotel” or “Subject”). Pursuant to our engagement, we have prepared this letter report summarizing our findings. The conclusions set forth are based on an analysis of the existing and potential future supply and demand for the competitive lodging market as of the completion of our fieldwork in September, October, and November of 2016. The purpose of this analysis is for use by representatives of the City of Ukiah to evaluate the potential market and financial performance of a hotel in Historic Downtown Ukiah. The intended users with include city representatives and the intended use will be for soliciting interest from the private sector for the development of a hotel in the local market. As in all studies of this type, the estimated results are based on competent and efficient management and presume no significant change in the status of the competitive lodging market from that as set forth in this report. The terms of our engagement are such that we have no City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 2 obligation to revise our conclusions to reflect events or conditions that occur subsequent to the date of completion of our fieldwork. However, we are available to discuss the necessity for revisions in view of changes in the economy or market factors impacting the competitive lodging market. Since the future performance of the proposed Hotel is based on estimates and assumptions that are subject to uncertainty and variation, we do not present them as results that will actually be achieved. However, our analysis has been conscientiously prepared on the basis of information obtained during the course of this assignment and on our experience in the industry. This report is subject to the Certification and Assumptions and Limiting Conditions presented in the Addenda. After you have had an opportunity to review this report, please feel free to contact us with any questions or comments. Thank you for the opportunity to work with you on this interesting engagement. Yours sincerely, CBRE HOTELS ______________________________________ By: Chris Kraus Managing Director chris.kraus@cbre.com I 415.652.4483 ______________________________________ By: Miky Kuo Director miky.kuo@cbre.com I 415.772.0358 City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 3 A. EXECUTIVE SUMMARY 1. INTRODUCTION CBRE Hotels was formally retained on September 6, 2016 by Mr. Sage Sangiacomo of the City of Ukiah to conduct a study of the potential market demand and estimated financial performance for a proposed Hotel to be located in Historic Downtown Ukiah. As a component of this analysis, we first determined the market potential for a proposed hotel in the local market and offered our recommendations as to the most appropriate size and type of lodging facility. At your specific request, we have also evaluated three hypothetical hotel sites in Historic Downtown Ukiah and ranked them in terms of suitability for the development of the recommended Hotel. Based on the recent performance of comparable hotels in the market, we then provided our projections of the occupancy and average daily room rate (“ADR”) the proposed Hotel could achieve for its first ten years of operation. From this, we then prepared a statement of the estimated annual operating results for the proposed Hotel’s first ten years of operation. For the purpose of this analysis, we have assumed that after a nearly three year pre-development and construction period, the proposed Hotel would be open and available for occupancy by January 1, 2020. 2. SCOPE AND METHODOLOGY OF WORK Specifically, in conducting the study of the potential market demand, we: Met with representatives of the City of Ukiah to fully understand the goals and objectives for the study; Conducted a detailed tour of Historic Downtown Ukiah and personally inspected three hypothetical hotel sites suitable for a hotel development. We assessed the impact of each site’s accessibility, visibility, and location relative to demand generators and proximity to downtown amenities such as retail and restaurants; Conducted market research in the area, including interviews with key demand generators, inspection and evaluation of existing hotels, and discussions with people familiar with development patterns and the local hotel market; Researched and analyzed current economic and demographic trends to determine their impact on future lodging demand in the market; Researched the competitive lodging supply in and around Ukiah, with a particular focus on the hotels that would compete most directly with a hotel in the downtown neighborhood; Reviewed the historical performance of the competitive lodging market over the last 11 years; City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 4 Estimated the anticipated growth in supply and demand for lodging accommodations in the local market area; Prepared a forecast of future performance for the competitive lodging market; Evaluated the appropriateness of the available sites in the City of Ukiah for the development of a hotel and recommended the most optimal site of the three hypothetical sites available; Provided a recommendation for the sizing, concept, potential brand affiliations, amenities to be provided, and timing of the proposed Hotel; Developed a forecast of the likely occupancy levels and the average daily room rates the proposed Hotel could reasonably achieve over its first ten years of operation; and, Developed a statement of the estimated annual operating results for the proposed Hotel for its first ten years of operation, assuming an opening date of January 1, 2020. Several sources were used in compiling the background information and preparing the analyses contained in this report. These sources include CBRE’s Trends® in the Hotel Industry, data gathered through direct interviews with representatives of local businesses, data provided by sources in the lodging chains with which the competitive properties are affiliated, and data from various local government agencies. 3. HYPOTHETICAL DEVELOPMENT SITES We have evaluated and inspected three hypothetical development sites, currently controlled by the City of Ukiah in terms of their individual attributes and constraints for development. In doing so, we have examined the size and location, access and visibility, ambiance, present utilization, and relationship to demand generators and area amenities such as retail, restaurants, and the existing conference center of these three hypothetical sites. Based on our evaluation and inspection of the three hypothetical sites, we are of the opinion that Parking Lot A (West Standley and Oak Streets), or similar, would be the optimal location for the development of a downtown hotel. It is well located in Historic Downtown Ukiah and has the appropriate ambiance for the proposed Hotel. The vicinity of Parking Lot C (East Standley and Main Streets) would be the secondary choice for the development of the proposed Hotel. Finally, we are of the opinion that the Ukiah Valley Conference Center/Parking Lot E (School and Church Streets) would not be appropriate for the development of the proposed Hotel due to the prohibitive cost of redeveloping the Ukiah Valley Conference Center and building above it. 4. RECOMMENDED HOTEL DEVELOPMENT As will be discussed in further detail later in this report, we have determined that there is sufficient market demand to support the development of a new hotel in Historic Downtown Ukiah. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 5 Based on our research, we recommend that the proposed Hotel be positioned as an upscale hotel affiliated with a major hotel company as a “soft brand.” Soft brands allow hotels to be part of a major hotel company’s sales and marketing platforms, including access to their central reservation systems and guest loyalty programs, however, can retain their unique, design, orientation, and independent status. As such, soft-branded hotels do not have to conform to all the stringent standards typically required by traditional hotels. Examples of “soft brands” that may be appropriate for the proposed Hotel include, but are not limited to, Ascend Hotel Collection (Choice Hotels), BW Premier Collection (Best Western), Lexington Legacy Hotels, and IBC Hotels. We envision that the proposed Hotel would be positioned as the highest quality hotel in the local market and would cater to guests seeking an authentic wine country experience in Historic Downtown Ukiah. While subject to further refinement, we recommend that the proposed Hotel contain approximately 75 guestrooms, one meeting room of between 1,500 to 2,500 square feet, a full-service restaurant/bar (operated or leased), possibly a tasting room, and typical amenities found at hotels (fitness center, business center, etc.). The recommended Hotel would be the only hotel in the Ukiah market containing a restaurant. 5. PROJECTED OCCUPANCY AND AVERAGE DAILY RATE Based on our analysis of the competitive market and the local and regional demand generators, we are of the opinion that there would be sufficient demand for the recommended Hotel in Downtown Ukiah. Furthermore, we would recommend that the proposed Hotel be developed on Parking Lot A (West Standley and Oak Streets) or similar setting. Based on the recommended Hotel’s competitive positioning, we have projected the occupancy and ADR of the proposed Subject over its first five years of operation (assumed opening date of January 1, 2020). Proposed Ukiah Hotel Projected Performance Hypothetical Market Introductory Actual Percent Percent Year ADR Growth Discount ADR Change Occupancy RevPAR Change 2015 $130.00 - 2016 $140.40 8.0% 2017 $147.00 5.0% 2018 $153.00 4.0% 2019 $158.00 3.0% 2020 $163.00 3.0% 2.0% $160.00 - 65% $103.45 - 2021 $168.00 3.0% 0.0% $168.00 5.0% 68% $114.76 10.9% 2022 $173.00 3.0% 0.0% $173.00 3.0% 72% $124.50 8.5% 2023 $178.00 3.0% 0.0% $178.00 2.9% 72% $128.09 2.9% 2024 $183.00 3.0% 0.0% $183.00 2.8% 72% $131.69 2.8% Source: CBRE Hotels City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 6 6. ESTIMATED ANNUAL OPERATING RESULTS Based on our analysis of market demand and the estimated occupancy for the proposed Hotel, we have estimated the revenues and expenses for the proposed Hotel’s first ten years of operation. This results in a net operating income (“NOI”) before fixed charges of interest, depreciation, amortization, and income taxes, but after deducting an FF&E reserve in an amount of 4.0 percent. The following table presents a summary of the estimated operating results of the proposed Hotel for the first ten years of operation. Summary of Estimated Annual Operating Results Total Net Operating Ratio to Year Revenue Income1 Total Revenues 2020 $3,982,000 $873,000 21.9% 2021 4,320,000 1,060,000 24.5% 2022 4,668,000 1,244,000 26.6% 2023 4,803,000 1,281,000 26.7% 2024 4,941,000 1,312,000 26.6% 2025 5,079,000 1,344,000 26.5% 2026 5,239,000 1,393,000 26.6% 2027 5,400,000 1,440,000 26.7% 2028 5,561,000 1,484,000 26.7% 2029 5,726,000 1,527,000 26.7% 1 Income before the deduction of depreciation, interest, amortization, and income taxes, but after the deduction of a reserve for capital replacement. B. SITE RECOMMENDATION 1. AVAILABLE HOTEL SITES As we understand it, there are three hypothetical sites in Historic Downtown Ukiah that may be appropriate for a hotel development. These three sites are controlled by the City of Ukiah and have different attributes. These three sites are discussed below and are identified on the map on the following page. SITE NO. 1 - Parking Lot A (West Standley and Oak Streets) The site encompasses and entire city block bound by Pine Street to the west, Standley Street to the north, Oak Street to the east, and Perkins Street to the south; The existing use is as a city controlled surface parking lot; The site is located in Historic Downtown Ukiah and is walking distance to restaurant and retail amenities and is two blocks from Ukiah Valley Conference Center; City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 7 The site has direct access from the Perkins Street Exit off Highway 101 (approximately ¾ of a mile); Based on the Ukiah Municipal Airport Master Plan Compatibility Zoning Map dated July 1996, developments above three stories are permitted on this site; and, The site has good ambiance for an upscale, independent hotel along tree lined streets and would provide guests with a wine country hotel experience. SITE NO. 2 - Parking Lot C (East Standley and Main Streets) The site is bound by Main Street to the west, Smith Street to the north, Mason Street to the east, and Standley Street to the south; It is the largest of the three hypothetical sites with the ability to be combined with the adjacent commercial building site to the east; The existing uses include a city controlled surface parking lot on the west side and a commercial building on the east side; It is not located within the boundaries of Historic Downtown Ukiah. Guests would have to cross State Street to reach Historic Downtown amenities. State Street is a busy, two-way, north/south arterial; This location does not possess the ideal ambiance for an upscale, full-service, wine country hotel; Based on the Ukiah Municipal Airport Master Plan Compatibility Zoning Map dated July 1996, developments above three stories are not permitted on this site; and, The site is the closest to Highway 101 and the Perkins Street Exit (approximately ½ mile). SITE NO. 3 – Ukiah Valley Conference Center & Parking Lot E (School and Church Streets) A hotel would be developed above the existing Ukiah Valley Conference Center; As part of the hotel development, the Ukiah Valley Conference Center would be renovated and updated; The hotel would effectively be part of the Ukiah Valley Conference Center and have access to its meeting and catering facilities; The site is located in Historic Downtown Ukiah and walking distance to restaurant and retail amenities. It is the closest to Alex Thomas Plaza; City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 8 Based on the Ukiah Municipal Airport Master Plan Compatibility Zoning Map dated July 1996, developments above three stories are permitted on this site; and, The development cost of a hotel at this site would likely also include the cost to renovate the Ukiah Valley Conference Center. As such, we are of the opinion that the total development cost of a hotel on this site would be prohibitive in attracting private investment. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 9 Hypothetical City Controlled Hotel Development Sites in Historic Downtown Ukiah 1. Parking Lot A 2. Parking Lot C 3. Conference Center & Parking Lot E City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 10 Upon inspection of the three hypothetical sites in Ukiah and review of their individual attributes, we would rank the three sites in the following order: 1. Parking Lot A: Parking Lot A is the optimal site for the development of a hotel. The site has good ambiance for a wine country hotel and is proximate to Historic Downtown Ukiah amenities. While it will not have visibility from Highway 101, it can be easily accessed from the Perkins Street Exit off Highway 101. The site is rectangular in shape and at grade with its surroundings. Based on our physical inspection, this site is adequate in size and would be well suited for the development of a hotel 2. Parking Lot C: Among the three identified sites, Parking Lot C is the second best site for the development of a hotel. Like Parking Lot A, this site will not have visibility from Highway 101, but it is the closest to the Perkins Street Exit off Highway 101. This site is the largest of the three sites. Based on our inspection, this site is adequate in shape and size for the development of a hotel. We are of the opinion, however, that this location would not provide the ideal setting for an upscale, wine country hotel. 3. Ukiah Valley Conference Center & Parking Lot E: Conference Center & Parking Lot E is well located in the heart of Historic Downtown Ukiah for the development of a hotel. If a hotel were to be developed in this location, it would be constructed above the existing facility. A hotel developed above the conference center would have access to conference center facilities. That being said, we are of the opinion that the cost to develop a hotel above the conference center would be prohibitive in attracting private investment. Presented on the following pages are local and regional maps illustrating the three hypothetical development sites and the location of Ukiah. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 11 Local Map Site 1 Site 2 Site 3 City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 12 Regional Map City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 13 C. AREA REVIEW As previously stated, the proposed Subject will be located in Ukiah, California. Provided in the following section is an overview of the regional and local markets. 1. STATE OF CALIFORNIA Over the past fifteen years, California has experienced the full spectrum of the economic cycle. It entered into a recession in the early 2000s, followed by a period of economic recovery and growth beginning in mid-year 2003. This recovery period was marked by a decline in the state’s unemployment rate, an increase in the employment base, and strong growth in the state’s gross domestic product, fueled by a diversifying knowledge-based economy. In conjunction with the strengthening of the national economy and a booming real estate market, California’s economy prospered from mid-year 2003 through mid-year 2007. Beginning in the second half of 2007, the Californian economy slowed due to a national recession driven by the national mortgage credit crisis. This most recent recession lasted approximately 20 months and is believed to have ended in August 2009. After multi-billion dollar shortfalls in recent years, including a $26.6 billion budget gap in 2011, California ended the 2014/15 fiscal year with revenues for the General Fund totaling $6.8 billion more than anticipated one year ago when the 2014/15 budget was enacted. This is 6.4 percent higher than projected. Compared to the previous fiscal year, California revenues were $12.7 billion higher, an increase of 12.5 percent over prior year levels. For the entire 2014/15 fiscal year that ended June 30th, personal income tax led the surge, accounting for $5.8 billion of the $6.8 billion windfall. Corporation taxes beat projections by $1.6 billion, while retail sales and use taxes for the year came in $395.9 million lower than expected. Of the $12.7 billion revenue increase over the 2013/14 fiscal year, $10.1 billion or 80 percent consisted of personal income taxes. 2. MENDOCINO COUNTY The proposed Hotel lies within Mendocino County, which is located in Northern California, to the north of Sonoma County, to the west of Lake, Glenn, and Tehama Counties, and to the south of Humboldt and Trinity Counties. Mendocino County is approximately 3,500 square miles and features approximately 80 miles of coastal frontage along the Pacific Ocean. The county’s southern boundary is approximately 115 miles north of San Francisco while the county’s northern border is approximately 180 miles south of the Oregon border. Mendocino County is traversed by U.S. Highway 101 in its interior, and by Highway 1 along the Pacific Coast. Several routes connect these major highways including Highway 128 and Highway 20. Most of Mendocino County’s major cities are situated along these highways. The cities of Hopland, Ukiah (the county seat and largest city, as well as the subject of this report), Willits, City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 14 Laytonville, and Leggett all straddle Highway 1. Gualala, Anchor Bay, Point Arena, Manchester, Elk, Albion, Little River, Mendocino, Fort Bragg, and Westport are all small, former logging communities along Highway 1. Mendocino County is characterized by picturesque terrain including breathtaking coastal views, rolling, vineyard-covered hills, redwood forests, and rugged mountains. It is known for outdoor recreational activities such as camping, diving, fishing, whale watching, ocean-kayaking, and hiking. Population: According to the California Department of Finance Demographic Research Unit, Mendocino County has a 2016 population of approximately 88,400, representing an increase of 0.2 percent over 2015 levels. The City of Ukiah is the largest city with approximately 16,200 residents as of January 1, 2016. The countywide population has grown at a compound annual growth rate (CAGR) of 0.1 percent since 2010, slower than the statewide CAGR of 0.9 percent over the same period. Employment: The major employers in Mendocino County consist primarily of government, hospitals, agriculture, and tourism/gaming. Historically, the economy in Mendocino County has been driven by the timber and commercial fishing industries, but employment in these industries has decreased considerably over the past three decades as a result of environmental preservation efforts and the modernization of processing techniques. The following table summarizes the largest employers in the county, as of 2016. Major Employers in Mendocino County - 2016 Employer Location Employer Location City of Ukiah Ukiah Mendocino Redwood Co LLC Calpella Coyote Valley Casino Redwood Valley Raley's Ukiah Dharma Realm Buddhist Assn Talmage Redwood Empire Packing Inc. Ukiah Fetzer Vineyards Hopland Safeway Fort Bragg Forestry & Fire Protection Willits Trinity Youth Services Ukiah Hillside Health Center Ukiah Ukiah Campus Ukiah Hopland Sho Ka Wah Casino Hopland Ukiah City Civic Center Ukiah Little River Inn Golf & Tennis Little River Ukiah High School Ukiah Mendocino Coast District Hospitality Fort Bragg Ukiah Valley Medical Center Ukiah Mendocino College Ukiah Walmart Ukiah Mendocino County Ukiah Source: State of California Employment Development Department As of August 2016, Mendocino County reported a total labor force of approximately 40,900 people. Unemployment for the county was 5.0 percent, on par with the statewide unemployment rate 4.9 percent. Transportation: Primary transportation through Mendocino County is provided by U.S. Highway 101 and State Highways 1, 20, 128, 162, and 253. Highway 101 travels north to the Oregon Border and south to San Francisco. Highway 1, also known as the Pacific Coast Highway, travels south to San Francisco and north through Mendocino County, where it connects to Highway 101. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 15 Highway 128 travels southeast from Highway 1, where it connects with Highway 101 in Cloverdale. Highways 20, 128, 162, and 253 travel in east-west directions. Public transportation is provided by the Mendocino Transit Authority (MTA), serving Ukiah, Mendocino Valley, and other coastal communities. MTA operates several routes, most of which radiate from the main city of Ukiah. Mendocino County has two public airports: the Round Valley Airport and the Little River Airport. The Round Valley Airport is an unmanned airport with a paved runway, runway lights, and a tie down area that serves a remote area of the County. The Little River Airport, which serves the central Mendocino coast, provides more thorough services, is located 3 miles southeast of Little River, and has one runway. The Ukiah Municipal Airport is a public airport located just south approximately 1.5 miles south of Downtown Ukiah. It is a general aviation airport situated on 160 acres and has one runway. The airport opened in the 1930’s and has 87 aircrafts based on site. Tourism: The Mendocino coast is a popular weekend getaway for many San Francisco Bay Area residents. Among the attractions are the coastal scenery, state parks and beaches, and other outdoor activities. Among the most popular destinations are the Russian River, the Albion River, Sinkyone Wilderness State Park, Van Damme State Park, Hendy Woods State Park, Mendocino Headlands State Park, and Navarro River Redwoods State Park. Popular outdoor activities include camping, hiking, rafting, canoeing & kayaking, and diving. Additionally, Mendocino County is known for its many excellent wineries. Indeed, the vineyards in this region are leaders in sustainable, organic, and Biodynamic grape growing practices. Displayed below is a map highlighting some of the county’s most popular wineries. Ukiah serves as the starting point for visitors traveling along the Pacific Coast. From Ukiah, visitors head west along Highway 253 to Boonville which then connects to Highway 128. Heading north along Highway 128 from Boonville, through Philo and Navarro, visitors traverse through the heart of Anderson Valley. Anderson Valley is Mendocino County’s most well-known wine growing region. Only fifteen miles long, Anderson Valley is home to a unique group of vineyards and wineries producing a broad range of excellent wines including world class Pinot Noir and Alsace Varietals. Highway 128 then connects to Highway 1, also known as the Pacific Coast Highway. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 16 Climate: The Mendocino coast is characterized by seasonal weather conditions with lower temperatures and greater precipitation during winter months and higher temperatures and little precipitation during the summer. The average high temperature in July in Mendocino County is 81.3 degrees F, while the average low in January is 36 degrees F. However, it should be noted that Mendocino County has a range of microclimates which are largely influenced by the geography and topography of the region. 3. CITY OF UKIAH The first Anglo settler to dwell in what is now Ukiah was John Parker, a vaquero who worked for pioneer cattleman James Black. Black had taken possession of a block of grazing land just south of present-day Ukiah, and Parker constructed his cabin on the banks of what was known as Wilson Creek. In 1857, seven more settlers arrived in the city. The first United States post office City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 17 opened in the city in 1858, and by 1859 the population of Ukiah had grown to approximately 100 people. Ukiah was incorporated in 1876, but it was not until 1889 that the San Francisco and North Pacific Railroad completed its line from Cloverdale (30 miles south) to Ukiah, finally linking Ukiah to the national rail network. Present day Ukiah is the largest city in Mendocino County and serves as the county seat. With its accessible location along the busy north/south Highway 101 corridor and near the east/west Highway 20 corridor, Ukiah serves as a hub for both Mendocino County and much of neighboring Lake County. The city has an estimated population of approximately 16,075 people. However, as the Mendocino County seat and the business/education/shopping center for much of the region, the weekday population swells to roughly 35,000, generating significant lodging demand. Ukiah is surrounded by natural beauty and hosts a variety of recreational activities, including the county’s only 18-hole golf course, three disc golf courses, Lake Mendocino for boating, fishing, hiking, and camping, and thousands of acres of BLM land for recreation and off-road vehicle use. It possesses a vibrant and diversified economy and a mix of small town charm and big city culture. For these reasons, Ukiah is rapidly being discovered by visitors looking for an easy, inspiring getaway. Since 2010 visitor spending in Ukiah has increased by nearly 50 percent. Presented below is a summary of several of the attributes of the City of Ukiah. Ukiah was voted “Best in California” and “6th Best Small Town in the U.S.” by Norman Crampton’s The 100 Best Small Towns in America and one of the “8 Great Places You’ve Never Heard Of” by Mother Earth News. Ukiah is centrally located to over 30 winery tasting rooms, making it an ideal location for residents of nearby San Francisco or Sacramento interested in a weekend of wine-tasting as an alternative to the more expensive and crowded Napa or Sonoma Counties. The region is also a national leader in organic vineyard practices and has been dubbed the greenest wine region in America. In June and November, the city hosts the weekend- long event A Taste of Redwood Valley, a celebration of the region’s wineries. Wine tourism is one of the primary lodging demand generators in Ukiah. Downtown Ukiah is home to a multitude of visitor attractions, including a bustling restaurant scene largely focused around local, organically grown produce, meats, and wines; the Grace Hudson Museum and Sun House, an art and history museum that features the intricate basketry of the local Pomo Indian tribe; and a wide variety of family-owned boutiques appealing to window shoppers, souvenir seekers, and locals alike. Additionally, Ukiah is home to the City of 10,000 Buddhas, one of the largest Buddhist communities in the Western Hemisphere, and Montgomery Woods Redwood City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 18 Grove, one of the most pristine redwood tree groves anywhere. Historic Vichy Springs, the only warm and naturally carbonated mineral baths in North America, is just outside the city limits. Orr Hot Springs, the first commercial hot springs in the country, is approximately 25 minutes outside of town. The region’s multitude of wineries, combined with its spectacular natural beauty and abundance of visitor attractions, make it a popular destination for events such as weddings and reunions. A variety of major projects will bring significant changes to Ukiah over the next several years. Some of these include the new Costco development planned near Talmage Road and Highway 101; the new Ukiah Courthouse, which is anticipated to cost more than $100 million; a new affordable senior housing project and more multi-family housing to support the growing population; an extension of the existing Rail Trail, which will create a safe and efficient pedestrian and bike pathway through the city; and the Downtown Streetscape Project between Mill and Henry Streets, which will include widened sidewalks, bulbouts for greater pedestrian safety, and improved traffic circulation. Additionally, an expansion of the Ukiah Valley Medical Center, which serves 122,000 people annually, was approved in 2014. This expansion will help the facility’s efforts to advance it trauma designation from level 4 to level 3. Ukiah has a vibrant economy and a friendly business climate, in part due to its comprehensive workforce development network which includes education, training, support services, and the facilitation of business development, job retention, and expansion. On average, the City of Ukiah’s development fees are 50 to 60 percent lower than other cities in the area, and there are no school impact fees. A long list of innovators and industry leaders are based in the Ukiah area. Among others, Maverick Enterprises, a privately owned company that produces capsules and alternative closures for the wine, distilled spirits, and specialty food and beverage industries, and Factory Pipe, which makes specialized mufflers for snowmobiles and jet skis, are based in Ukiah. Solar Living Institute, which manages the Solar Living Center, a 12-acre renewable energy and sustainable living demonstration site that is visited by 200,000 people annually, is located in nearby Hopland. Advance Power, which was the first California business to be solar and wind powered and has been a leader in the energy production industry since 1978, is located just north of Ukiah in Redwood Valley. The area is also home to Parducci Wine Cellars, the first carbon neutral winery in the U.S., and Fetzer Winery, the sixth largest wine producer in the U.S., the first California winery City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 19 to operate on 100 percent renewable energy, the first winery to achieve zero waste, and the site of the largest solar array in the wine industry. Ukiah offers an array of post-secondary educational opportunities. Mendocino College, founded in 1973, is located in Ukiah and is part of the Mendocino-Lake Community College District. The 127-acre campus enrolls approximately 5,150 students and employs 55 full-time and 200 adjunct faculty members. Sonoma State University offers an upper-division extension program in Ukiah leading to a Bachelor of Arts in Liberal Studies, with an emphasis on American Studies. In nearby Hopland, the University of California Davis operates a Research and Extension Center, one of nine such centers operated by the UC Division of Agriculture and Natural Resources. The map on the following page illustrates the relative location of the three hypothetical sites to some of the development projects in Downtown Ukiah. 4. CONCLUSION After review of the general economic and demographic information for the City of Ukiah and the greater Mendocino County area, we are of the opinion that the local and regional economies are poised for continued economic growth. Due to its abundance of visitor attractions and proximity to major population centers, Ukiah is projected to remain a very desirable visitor destination. As such, growth in lodging demand, both from individual business and leisure travelers as well as group demand generated from social functions, is expected to continue to increase. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 20 Site 1 Site 3 Site 2 City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 21 D. HOTEL MARKET ANALYSIS 1. NATIONAL MARKET OVERVIEW The research division of CBRE Hotels (formerly PKF Hospitality Research) owns the database for Trends® in the Hotel Industry, the statistical review of U.S. hotel operations, which first appeared in 1935 and has been published every year since. Beginning in 2007, the powerful Hotel Horizons® was unveiled. Hotel Horizons® is an economics-based hotel forecasting model that projects five years of supply, demand, occupancy, ADR, and revenue per available room (“RevPAR”) for the U.S. lodging industry with a high degree of accuracy. Hotel Horizons® reports are published on a quarterly basis for 59 markets and six national chain-scales. Based on the September - November 2016 National Edition of Hotel Horizons®, revenue per available room for the U.S. lodging market grew by 8.1 percent in 2011, 6.7 percent in 2012, 5.2 percent in 2013, 8.1 percent in 2014, and 6.2 percent in 2015. As a point of comparison, RevPAR declined by 16.7 percent in 2009, the largest percentage decline since CBRE Hotels/PKF Hospitality Research began tracking lodging performance in 1935. This significant drop was a direct result of the severe national and global recession which began in the fall of 2007 and lasted well into 2009. Further, it resulted in a 40.0 percent decrease in hotels’ net operating income (“NOI”), subsequently impacting hotel values throughout the nation. For the following three years (2016, 2017, and 2018), the overall U.S. lodging market is projected to achieve RevPAR growth rates of 3.6 percent, 3.9 percent, and 3.7 percent, respectively, with ADR gains leading these increases. However, it should be noted that these RevPAR growth rates are below the growth experienced over the last five years as the national lodging recovery cycle is nearing an end as supply growth is beginning to have a negative impact on occupancy and subsequently ADR growth. 2. COMPETITIVE LODGING MARKET OVERVIEW In our analysis of the competitive market for the proposed Hotel, we have identified nearly all of the existing hotels in the Ukiah market. The existing competitive hotel supply in the City of Ukiah, which represents a self-contained lodging market along the Highway 101 corridor, consists of upper midscale, midscale, and economy hotels (per Smith Travel Research chain scale definitions). Based on our research, we have identified nine properties as representing the primary competitive market for the proposed Hotel. The total number of rooms in the competitive supply is 522. Competitive properties were identified on the basis of location, room product offered, guest type, and overall quality. These hotels are identified in the table below and we have provided a table highlighting the primary facilities of each hotel on the next table. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 22 Competitive Market Hotel City Rooms Opening Date Chain Class Affiliation Best Western Orchard Inn Ukiah 54 2001 Midscale Best Western Super 8 Ukiah Ukiah 54 1981 Economy Wyndham Days Inn Ukiah Ukiah 54 1959 Economy Wyndham Quality Inn Ukiah Ukiah 40 1960 Midscale Choice Motel 6 Ukiah Ukiah 70 1970 Economy Motel 6 Fairfield Inn & Suites Ukiah Mendocino Ukiah 56 2005 Upper Midscale Marriott Hampton Inn Ukiah Ukiah 76 2002 Upper Midscale Hilton Comfort Inn & Suites Ukiah Ukiah 63 2007 Upper Midscale Choice Travelodge Ukiah Ukiah 55 1997 Economy Wyndham Subtotal 522 - - Proposed Ukiah Hotel 75 - - Total 597 - - As noted, these hotels range in size between 40 guestrooms (Quality Inn Ukiah) and 76 guestrooms (Hampton Inn Ukiah) and opened between 1959 and 2007. It should be noted that while other hotels in the regional market may be deemed competitive to the proposed Hotel, the selected properties were useful in illustrating the general performance of the local hotel market. Specifically, we have excluded independent hotels and motels from our sample. A map of the competitive market has been presented on page 25. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 23 SUMMARY OF UKIAH HOTELS Property Best Western Orchard Inn Super 8 Ukiah Days Inn Ukiah Quality Inn Ukiah Address 555 S Orchard Ave 693 S Orchard Ave 950 N State St 1050 S State St Year Opened 2001 1981 1959 1960 Number of Rooms 54 54 54 40 Affiliation Best Western Wyndham Wyndham Choice Hotels Amenities Food & Beverage Complimentary Breakfast Complimentary Breakfast Complimentary Breakfast Complimentary Breakfast Recreation Fitness Center, Outdoor Pool Fitness Center, Outdoor Pool Fitness Center, Outdoor Pool Fitness Center Meeting Space N/A N/A N/A N/A Property Motel 6 Ukiah Fairfield Inn & Suites Ukiah Hampton Inn Ukiah Comfort Inn & Suites Ukiah Address 1208 S State St 1140 Airport Park Blvd 1160 Airport Park Blvd 1220 Airport Rd Year Opened 1970 2005 2002 2007 Number of Rooms 70 56 76 63 Affiliation Motel 6 Marriott Hilton Choice Hotels Amenities Food & Beverage N/A Complimentary Breakfast Complimentary Breakfast Complimentary Breakfast Recreation Outdoor Pool Fitness Center, Indoor Pool Fitness Center, Outdoor Pool Fitness Center, Outdoor Pool Meeting Space N/A 414 sq. ft. 1,800 sq. ft. N/A City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 24 SUMMARY OF UKIAH HOTELS Property Travelodge Ukiah Address 1720 N State St Year Opened 1997 Number of Rooms 55 Affiliation Travelodge Amenities Restaurant Complimentary Breakfast Recreation Fitness Center, Outdoor Pool Meeting Space N/A City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 25 City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 26 3. HISTORICAL PERFORMANCE OF THE COMPETITIVE MARKET Presented in the following table is a summary of the historical supply and demand and the resulting occupancy percentages for the identified competitive market for the period 2005 to 2015 as well as year-to-date (“YTD”) August 2016 and 2015. Also included are the competitive market’s average daily rate (“ADR”) and revenue per available room (“RevPAR”) figures. RevPAR is an industry standard which equates to the total revenue generated by available rooms and thereby measures the operational success of a market or individual property. As can be noted from the table above, supply for the competitive market has increased at a compound annual growth rate (“CAGR”) of 2.3 percent from 2005 to 2015. During this period, the two additions to supply were the 56-room Fairfield Inn & Suites Ukiah Mendocino (October 2005) and the 63-room Comfort Inn & Suites Ukiah (July 2007). Demand, as measured by occupied room nights for the competitive market, has increased at a CAGR of 3.7 percent from 2005 through 2015. During this period, demand growth ranged from a decline of 11.5 percent to an increase of 11.6 percent. Prior to the recent recession (2005 to 2008), demand growth ranged from 0.9 percent to 11.6 percent. Occupancy declined slightly from 58.9 percent in 2005 to 56.4 percent in 2008 as the two aforementioned additions to supply were absorbed by the competitive market. Demand declined 11.5 percent and occupancy reached a low of 49.9 percent in 2009 due to the effects of the last economic recession. Following the recession, demand growth ranged from 1.7 percent to 7.5 percent, between 2010 and 2015. Occupancy increased from 53.5 percent in 2010 to a record high of 67.8 percent in 2015. As of year-to-date (“YTD”) August 2016, demand increased 1.2 percent over YTD August 2015, resulting in occupancy of 67.6 percent. Demand growth following the recent recession has been driven by the economic growth benefitting all of Northern California. Annual Percent Occupied Percent Market Percent Percent Year Supply Change Rooms Change Occupancy ADR Change RevPAR Change 2005 152,205 89,649 58.9%$70.26 $41.38 2006 167,535 10.1%100,018 11.6%59.7%$73.63 4.8%$43.96 6.2% 2007 178,850 6.8%100,871 0.9%56.4%$77.17 4.8%$43.52 -1.0% 2008 190,530 6.5%107,459 6.5%56.4%$78.27 1.4%$44.14 1.4% 2009 190,530 0.0%95,074 -11.5%49.9%$76.87 -1.8%$38.36 -13.1% 2010 190,530 0.0%101,934 7.2%53.5%$75.06 -2.4%$40.16 4.7% 2011 190,530 0.0%109,555 7.5%57.5%$76.39 1.8%$43.92 9.4% 2012 190,530 0.0%111,460 1.7%58.5%$76.21 -0.2%$44.58 1.5% 2013 190,530 0.0%118,129 6.0%62.0%$78.99 3.6%$48.97 9.8% 2014 190,530 0.0%120,987 2.4%63.5%$86.98 10.1%$55.23 12.8% 2015 190,530 0.0%129,179 6.8%67.8%$96.87 11.4%$65.68 18.9% CAGR 2.3%-3.7%-58.6%3.3%-4.7%- YTD Aug '15 127,020 -84,849 -66.8%$94.39 -$63.05 - YTD Aug '16 127,020 0.0%85,866 1.2%67.6%$101.94 8.0%$68.91 9.3% Proposed Ukiah Hotel Historical Performance of the Competitive Market Source: CBRE Hotels City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 27 The competitive market’s occupancy over this 11-year period ranged from 49.9 percent (2009) to 67.8 percent (2015), with an average of 58.6 percent. As a point of comparison, the long-run average occupancy for the U.S. lodging market is 62.1 percent. As noted, occupancy of the competitive lodging market has been below the long-run national average for nine of the past 11 years. Only recently as of 2013 has the Ukiah lodging market achieved an occupancy level above 62 percent. The performance of the competitive market is indicative of the location of Ukiah relative to local and regional demand generators, the small size of the market, and the relatively low quality/condition of the existing hotels. Overall, Ukiah represents a tertiary hotel market that is quite sensitive to economic changes effecting lodging demand. It will typically be one of the first markets to be affected by economic downturns and the last to benefit from economic growth. At recent occupancy levels (67.8 percent in 2015), however, the competitive market is effectively operating at maximum annual capacity due to seasonality and demand segmentation. As such, the competitive market is unable to accommodate additional demand during peak periods; thereby creating unsatisfied demand. ADR for the competitive market increased at a CAGR of 3.3 percent from 2005 to 2015. During this period, ADR growth for the competitive market ranged from a decline of 2.4 percent to growth of 11.4 percent. ADR increased 4.8 percent in both 2006 and 2007 due to the additions of the Fairfield Inn & Suites and the Comfort Suites. These two hotels were able to achieve ADR premiums over the competitive supply and thus provided a “lift” to the aggregate ADR of the competitive market. It is interesting to note that when occupancy was at its lowest point during the recent recession in 2009, ADR only declined 1.8 percent. Comparatively, the ADR of the national lodging market declined 8.6 percent in 2009. As occupancy in the competitive market reached record levels in 2014 and 2015, hotel general managers have been able to aggressively increase asking room rates during periods of peak demand. This strategy has yielded double-digit ADR growth of 10.1 percent in 2014 and 11.4 percent in 2015, well above the CAGR of 3.3 percent. This trend has continued as the competitive market achieved 8.0 percent ADR growth as of YTD August 2016 over YTD August 2015. With healthy increases in both occupancy and ADR between 2005 and 2015, RevPAR growth has ranged from a decline of 13.1 percent to growth of 18.9 percent. The competitive market achieved record double-digit RevPAR growth levels in 2014 and 2015. YTD August 2016 RevPAR growth tapered to 9.3 percent over YTD August 2015. With the competitive market effectively operating at maximum annual capacity, RevPAR growth was driven primarily by ADR growth. In 2015, the occupancy of the individual properties ranged from approximately 45 to 80 percent. We further estimate that ADR of the individual hotels ranged from approximately City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 28 $50 to $130 in 2015. As the individual upper midscale hotels have historically achieved significantly stronger occupancy and ADR than the individual midscale and economy hotels, it is evident that there is more demand for the higher quality lodging products in Ukiah. We estimate the demand segmentation of the competitive market is comprised of approximately 95 percent transient commercial and leisure demand and 5 percent group demand. We further estimate that the transient demand is comprised of approximately 50 percent commercial demand and 50 percent leisure demand. As illustrated in the chart below, occupancy in the competitive market does exhibit seasonal patterns. The strongest months are the months of June through October when occupancy is in the 70 percent to 80 percent range. April, May, and November are shoulder months with occupancy in the high-50 to low-60 percent range. January, February, March and December are the slowest months with occupancy in the high 40 to mid-50 percent range. Competitive Market Seasonality (Monthly) Monthly Occupancy 2013 2014 2015 3-Year Avg. January 44% 49% 54% 49% February 52% 55% 62% 56% March 51% 53% 56% 53% April 55% 60% 61% 58% May 65% 62% 67% 65% June 75% 71% 76% 74% July 76% 75% 78% 76% August 75% 84% 81% 80% September 71% 73% 84% 76% October 68% 67% 74% 70% November 61% 61% 63% 62% December 51% 54% 57% 54% 62% 63% 68% 64% The chart on the following page illustrates the demand in the competitive market by day of the week. Commercial travel drives demand on Tuesday and Wednesday with occupancy of 70 percent. Leisure travel drives demand on Friday and Saturday with occupancy of 69 percent and 73 percent, respectively. Saturday is historically the busiest day of the week. Monday and Thursday are shoulder periods with a mix of commercial and leisure demand. Sundays are the slowest day of the week with average occupancy of approximately 50 percent. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 29 Competitive Market Seasonality (Weekly) Day of Week TTM 8/14 TTM 8/15 TTM 8/16 3-Year Avg. Sunday 48% 48% 53% 50% Monday 60% 63% 66% 63% Tuesday 67% 70% 72% 70% Wednesday 68% 71% 72% 70% Thursday 63% 66% 69% 66% Friday 67% 69% 70% 69% Saturday 71% 73% 76% 73% Year 63% 66% 68% 66% 4. ADDITIONS TO SUPPLY During the course of our research, we have identified one new hotel project that has been proposed. Upper Midscale Hotel: A 92-room, upper midscale hotel has been proposed near Highway 101 in Ukiah. While it is in preliminary planning stages, it is currently scheduled to open in January 2019. We have included the annualized addition of this hotel in our projection of future supply and demand. 5. RECOMMENDED HOTEL PRODUCT Based on the information obtained during the course of this assignment and a review of the individual performance levels of the competitive hotels, we have determined that there is sufficient market demand to support the development of a new hotel in Historic Downtown Ukiah. As discussed earlier, we are of the opinion that the vicinity of Parking Lot A (West Standley and Oak Streets) would be the optimal site for such a hotel development. Based on our research, we recommend that the proposed Hotel be positioned as an independent, upscale hotel, affiliated with one of the major hotel companies as a “soft brand.” As discussed earlier, soft brands allow hotels to be part of a major hotel company’s sales and marketing platforms, including access to their central reservation systems and guest loyalty programs, while retaining their unique, design, orientation, and independent status. As such, soft-branded hotels do not have to conform to all the stringent standards typically required by traditional hotels. Examples of “soft brands” that may be appropriate for the proposed Hotel include, but are not limited to, Ascend Hotel Collection (Choice Hotels), BW Premier Collection (Best Western), Lexington Legacy Hotels, and IBC Hotels. While subject to further refinement, we recommend that the proposed Hotel contain up to 75 guestrooms, restaurant/bar, approximately 1,500 to 2,500 square feet of meeting space, a full- service restaurant/bar (operated or leased), possibly a tasting room, and typical amenities found at upscale hotels (fitness center, business center, etc.). For the purpose of our analysis, we have City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 30 assumed that the proposed Hotel would be open and available for occupancy by January 1, 2020. We have summarized the recommended facilities in the table below. Proposed Ukiah Hotel Summary of Recommended Facilities Room Count: Up to 75 guestrooms Chain Scale: Upscale Gross Building Area: 48,750 SF Gross Square Feet Per Room: +/-650 SF Floors: Up to four stories Food & Beverage Facilities: Restaurant and Bar Meeting Space: 1,500 to 2,500 square feet Other: business center, fitness center, whirlpool, sundries shop We envision that the proposed Hotel would be uniquely positioned as the highest quality hotel in the local market and would cater to guests seeking an authentic wine country experience in Downtown Ukiah. The proposed Hotel would be located in picturesque Historic Downtown Ukiah and would be the only hotel with a restaurant and bar in Ukiah. We expect that the restaurant and bar would be utilized by both hotel guests and local patrons and could either be operated by the hotel operator, or leased to a local restauranteur. Furthermore, based on our interviews with representatives of local wineries, wine grower’s associations, hotel owners/operators, and the conference center, we are of the opinion that there is demand for an upscale hotel product in Ukiah, which currently does not exist. This is further supported by the fact that the two existing highest quality hotels achieve the strongest levels of performance. Therefore, we deem a full- service, upscale hotel to be the most appropriate hotel product to serve the unmet lodging needs of Ukiah. The recommended Hotel would capture existing unsatisfied demand, existing demand seeking a higher-end experience and would induce new demand into the Ukiah market. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 31 E. PROJECTED MARKET AND SUBJECT PERFORMANCE 1. PROJECTED PERFORMANCE OF THE COMPETITIVE MARKET Presented in the following table is a summary of our occupancy and ADR projections for the competitive market for the years 2016 through 2024, coinciding with the proposed Hotels’ first five full years of operation. As discussed, we have assumed that the proposed Hotel would be open and available for occupancy by January 1, 2020 and the Holiday Inn Express would be delivered in 2019. Supply in the competitive market is projected to increase by 16.3 percent in 2019 due the annualized addition of the 85-room Holiday Inn Express in January 2019. Supply is then projected to increase 12.4 percent following the assumed addition of the 75-room proposed Hotel in January 2020. Consistent with YTD occupancy and demand trends, we project occupancy to increase slightly to 70 percent in 2016. We project occupancy to then decline slightly to 69 percent in 2017 and 68 percent in 2018. While all indicators suggest that lodging demand growth in Northern California will remain strong, normal economic cycles suggest a more reasonable long-term stabilized occupancy level lower than current record highs. In 2019, following the addition of the proposed 85-room Holiday Inn Express, we project occupancy to decline to 64 percent. We then project occupancy to decline to 60 percent in 2020 following the addition of the proposed Hotel. Occupancy is projected to decline following these additions as demand growth will trail the rapid increase in supply. Occupancy is projected to stabilize at 60 percent from 2020 onward. As a point of comparison the occupancy of the competitive market averaged 58.6 percent from 2005 through 2015. This projection of stabilized occupancy assumes that the upscale and upper midscale hotels (including the proposed Subject) operate at above 70 percent Annual Percent Occupied Percent Market Percent Percent Year Supply Change Rooms Change Occupancy ADR Change RevPAR Change 2015 190,530 0.0%129,179 6.8%68%$96.87 11.4%$65.68 18.9% 2016 190,530 0.0%133,100 3.0%70%$105.00 8.0%$73.35 11.7% 2017 190,530 0.0%131,500 -1.2%69%$110.00 5.0%$75.92 3.5% 2018 190,530 0.0%129,600 -1.4%68%$114.00 4.0%$77.54 2.1% 2019 221,555 16.3%141,800 9.4%64%$117.00 3.0%$74.88 -3.4% 2020 248,930 12.4%149,400 5.4%60%$121.00 3.0%$72.62 -3.0% 2021 248,930 0.0%149,400 0.0%60%$125.00 3.0%$75.02 3.3% 2022 248,930 0.0%149,400 0.0%60%$129.00 3.0%$77.42 3.2% 2023 248,930 0.0%149,400 0.0%60%$133.00 3.0%$79.82 3.1% 2024 248,930 0.0%149,400 0.0%60%$137.00 3.0%$82.22 3.0% CAGR 3.4%-1.5%--3.4%1.4% Proposed Ukiah Hotel Projected Performance of the Competitive Market Source: CBRE Hotels City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 32 occupancy while the midscale and economy hotels operate at below 60 percent occupancy. Based on the performance of the competitive market through YTD August 2016, we project ADR to increase 8.0 percent through year-end 2016, resulting in a market ADR of $105. Going forward, ADR growth is projected to taper to 5.0 percent in 2017, 4.0 percent in 2018, and 3.0 percent from 2019 onward, consistent with our long-term outlook for inflation. As a point of comparison, ADR increased at a CAGR of 3.3 percent from 2005 through 2015. 2. PROJECTED PERFORMANCE OF THE PROPOSED HOTEL Based upon our analysis contained herein, including a review of the overall competitive market and of each identified hotel, we have provided our occupancy and ADR projections for the proposed Hotel’s first five years of operation, as stated in calendar years. In providing these projections, we have considered the following advantages and disadvantages impacting the future performance of the proposed Subject. The proposed Hotel will represent the newest and only upscale (per Smith Travel Research chain scale classifications) hotel in Ukiah. The proposed Hotel will be a unique lodging facility in Ukiah. It will be the only hotel with a restaurant/bar and will have the most amount of meeting space (1,500 to 2,500 square feet). The restaurant/bar will be utilized by both hotel guests and local patrons. The proposed Hotel will be well located in Downtown Historic Ukiah and will allow guests to walk to downtown restaurant and retail amenities. The location has excellent ambiance and will provide guests with an authentic wine country experience. The proposed Hotel will have a “soft-brand” and will be affiliated with a national hotel chain. As such, the proposed Subject will benefit from a strong national marketing brand association and guest loyalty program. Based upon the aforementioned, the proposed Subject’s occupancy is projected to stabilize at 72 percent by 2022, the Subject’s third year of operation. During the first and second years of operation, we project the Subject to achieve occupancy of 65 and 68 percent as the proposed Hotel gains recognition in the local market. It should be noted that a stabilized occupancy level of 72 percent results in a market penetration of 120 percent (2022), which is deemed reasonable based on the location, number of rooms, and market share achieved by the other branded, upper midscale hotels in the competitive market. This is also deemed reasonable due to the proposed addition of a 92-room, upper midscale hotel in 2019. At this level of performance, we estimate that approximately 85 to 90 percent of the captured demand would be from the transient business and leisure market segments. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 33 Based on the individual attributes and performance levels of the individual competitive hotels, we believe that the proposed Subject could achieve an ADR of $130 under the hypothetical condition that it was open in 2015. This ADR is approximately $33 above the 2015 ADR for the competitive market ($97), which is warranted due to its high-quality product, brand affiliation, and unique location. Furthermore, this would position the proposed Hotel at the top of the competitive market. It should be noted that we have included a 2.0 percent introductory discount for the proposed Hotel in its first year of operation, which is typical as hotels offer discounts and promotions to create awareness in the local market. This results in an ADR upon opening in 2020 of $160. Based on the analysis contained herein, we have provided our projections for the proposed 75-room Hotel in the table below. Our projections for both occupancy and ADR for the proposed Subject’s first five years of operation are presented in the following table. In providing our projections, we have assumed that the Hotel would be open and available for occupancy by January 1, 2020. Proposed Ukiah Hotel Projected Performance Hypothetical Market Introductory Actual Percent Percent Year ADR Growth Discount ADR Change Occupancy RevPAR Change 2015 $130.00 - 2016 $140.40 8.0% 2017 $147.00 5.0% 2018 $153.00 4.0% 2019 $158.00 3.0% 2020 $163.00 3.0% 2.0% $160.00 - 65% $103.45 - 2021 $168.00 3.0% 0.0% $168.00 5.0% 68% $114.76 10.9% 2022 $173.00 3.0% 0.0% $173.00 3.0% 72% $124.50 8.5% 2023 $178.00 3.0% 0.0% $178.00 2.9% 72% $128.09 2.9% 2024 $183.00 3.0% 0.0% $183.00 2.8% 72% $131.69 2.8% Source: CBRE Hotels Although it is possible that the proposed Subject will experience growth in occupancy and ADR above those estimated in this report, it is also possible that sudden economic downturns, unexpected additions to the room supply, or other external factors will force the property below the selected point of stability. Consequently, the estimated occupancy and ADR levels are representative of the most likely potential operations of the proposed Subject over the projected holding period based on our analysis of the market as of the date of this report. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 34 F. ESTIMATED ANNUAL OPERATING RESULTS Based on the projections of occupancy and average daily rate presented above, we have provided our projections of estimated annual operating results for the proposed Hotel for the ten- year period 2020 to 2029. In preparing these projections, we have relied upon the actual financial performance of a sample of branded, upscale hotels in California (presented in Addendum A). This information was obtained from confidential financial statements submitted in compilation of the 2016 edition (summarizing year-end 2015 data) of CBRE Hotels’ publication Trends® in the Hotel Industry). In addition, in providing our cash flow projections, we have utilized the assumptions below. Direct or departmental revenues and expenses, which typically vary with occupancy, are generally analyzed on a per-occupied-room (“POR”) basis, while undistributed expenses, which are more fixed in nature, are typically analyzed on total expense or a per-available-room (“PAR”) basis. 1. Departmental Revenues and Expenses Rooms Revenue is based on the number of occupied rooms multiplied by the ADR for each respective year as previously presented in this report. For the first year of operation (2020), rooms revenue is projected to be $2,846,000 (17,790 occupied rooms X $160 ADR). We project rooms revenue to increase to $3,410,000 (19,710 occupied rooms X $173 ADR) in 2022, when the proposed Hotel’s occupancy is expected to stabilize. Rooms Expense consists of salaries and wages, employee benefits, commissions, cleaning supplies, complimentary guest services, laundry and dry cleaning, linen, operating supplies, reservation costs, uniforms, and other items related to the rooms department. Rooms expense is estimated to be approximately $26 POR in 2016 dollars and is projected to increase to approximately $31 POR ($549,000) in 2020, the Hotel’s first year of operation. This estimate of rooms expense equates to approximately 18.0 percent of rooms revenue upon reaching operational stabilization. Food and Beverage Revenue is generated from the restaurant, catering, and meeting room, and audio/video equipment rentals. It is assumed that the restaurant will be utilized by both hotel guests and local patrons and operated by the hotel operator. We estimate food and beverage revenue of approximately $20 POR from hotel guests and $600,000 for total local sales, in 2016 dollars. Food and beverage revenue is projected to increase to $22.50 POR from hotel guests and $675,000 for total local sales in 2020 ($1,076,000 total), the Hotel’s first year of operation. Food and Beverage Expense includes product costs, payroll and related expenses, and other items such as laundry and linen, china, glassware and silverware, uniform costs, supplies, and other miscellaneous items. Food and beverage expense for the proposed City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 35 Hotel is estimated to be approximately 95 percent of departmental revenue in 2020 and is projected to decrease to 85 percent upon achieving operational stabilization in 2022. Other Operated Departments Revenue includes income associated with minor departments such as telecommunications, movies, and miscellaneous sources. We estimate other operated departments revenue of $2.00 POR in 2016 dollars and is projected to increase to $2.25 POR ($40,000) in 2020, the Hotel’s first year of operation. This estimate of other operated departments revenue equates to approximately 1.0 percent of the proposed Hotel’s total revenue upon achieving operational stabilization. Other Operated Departments Expense includes expenses associated with other operated departments revenue. Other operated departments expense is estimated to be approximately 60 percent of departmental revenue throughout the projection period. Rentals and Other Income includes revenue from attrition, cancellation fees, vending machines, and other miscellaneous income. We estimate rentals and other income of $1.00 POR in 2016 dollars and is projected to increase to approximately $1.13 POR ($20,000), in 2020, the Hotel’s first year of operation. This estimate of rentals and other income equates to approximately 0.5 percent of the proposed Hotel’s total revenue upon achieving operational stabilization. It should be noted that we have not accounted for any lease income from a potential wine tasting room or other retail vendor at the hotel. 2. Undistributed Operating Expense Administrative and General Expense (A&G) includes the salary and wages of the general manager and office staff, cash overages and shortages, credit card commissions, bad debt expense, security, accounting expense, and office supplies. We estimate administrative and general expense to be approximately 8.5 percent of total revenues in 2020, the proposed Hotel’s first year of operation. A&G expense is then projected to stabilize at 8.0 percent of total revenue upon achieving operational stabilization in 2022. Marketing Expense includes the cost of advertising, printing of brochures, salary associated with sales and marketing personnel, frequent stay programs, and other costs associated with an ongoing sales and promotion program. We have also included franchise-related fees (royalties, marketing assessments, loyalty programs) in this category. We estimate marketing expense to be approximately 10.7 percent of total revenues in 2020, the proposed Hotel’s first year of operation. Marketing expense is then projected to stabilize at 10.5 percent of total revenue upon achieving operational stabilization in 2022. Property Operations and Maintenance Expense (“POM”) is a function of building age and usage. This expense category is comprise of engineering salaries, wages, employee benefits, normal maintenance of the building, normal maintenance of electrical, City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 36 mechanical, and other operating supplies. We estimate POM expense of $1,550 PAR in 2016 dollars and is projected to increase to approximately $1,745 PAR ($131,000), in 2020, the Hotel’s first year of operation. This estimate of POM expense equates to approximately 3.0 percent of the proposed Hotel’s revenue upon achieving operational stabilization. Utility Costs include electricity, gas, water, sewer, and waste removal. These costs vary among hotels given the different building characteristics, HVAC systems, and building age. We estimate utility expense of $2,050 PAR in 2016 dollars and is projected to increase to approximately $2,300 PAR ($173,000), in 2020, the Hotel’s first year of operation. This estimate of utility expense equates to approximately 4.0 percent of the proposed Hotel’s revenue upon achieving operational stabilization. Information and Telecommunications Systems (IT) includes the cost of providing all information technology and telecommunications for both guests and hotel operations. We estimate IT expense of $600 PAR in 2016 dollars and is projected to increase to approximately $675 PAR ($51,000), in 2020, the Hotel’s first year of operation. This estimate of IT expense equates to approximately 1.2 percent of the proposed Hotel’s revenue upon achieving operational stabilization. Management Fees: For the purpose of our analysis, we have assumed a professional management company, with experience operating lodging facilities similar in tier to the proposed Hotel, will be retained by ownership to operate the proposed Hotel for a market rate management fee of 4.0 percent of total revenues. Property Taxes: Our property tax projections are based on the following estimated development costs for the proposed Hotel and an estimated property tax rate of 1.1 percent. Proposed Hotel Ukiah Hard Construction Costs (includes construction contingency) $8,530,000 FF&E and OS&E (includes signage and landscaping) $1,350,000 Total $9,880,000 This results in property tax expenses that stabilize at 2.6 percent of total revenues by the third year of operation, or approximately $113,000. Insurance Expense is for both general liability and property coverage. We estimate insurance expense of $550 PAR in 2016 dollars and is projected to increase to approximately $619 PAR ($46,000), in 2020, the Hotel’s first year of operation. This estimate of insurance expense equates to approximately 1.0 percent of the proposed Hotel’s revenue upon achieving operational stabilization. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 37 We have projected a reserve for capital replacement expense of 4.0 percent of total hotel revenues for the proposed Hotel. Over the first three years of operation, we project the reserve to “ramp up” from 2.0 percent in year one, to 3.0 percent in year two, and 4.0 percent thereafter. With the exception of property taxes, all other revenues and expenses are projected to increase at 3.0 percent per annum throughout the projection period. Property taxes are projected to increase at a rate of 2.0 percent per year in accordance with California law. Based upon this analysis, we project that the Hotel will achieve a total net operating income (“NOI”) of $873,000 in its first year of operation, increasing to $1,244,000 by 2022, at which point occupancy and ADR growth will have stabilized. We have summarized our projections of total revenue, NOI, and ratio of NOI to total revenues in the table below. It should be noted that NOI is reflected before a deduction for interest, depreciation, amortization, and taxes on income. Our ten-year pro-forma for the proposed Subject is presented on pages 35 and 36. Summary of Estimated Annual Operating Results Total Net Operating Ratio to Year Revenue Income1 Total Revenues 2020 $3,982,000 $873,000 21.9% 2021 4,320,000 1,060,000 24.5% 2022 4,668,000 1,244,000 26.6% 2023 4,803,000 1,281,000 26.7% 2024 4,941,000 1,312,000 26.6% 2025 5,079,000 1,344,000 26.5% 2026 5,239,000 1,393,000 26.6% 2027 5,400,000 1,440,000 26.7% 2028 5,561,000 1,484,000 26.7% 2029 5,726,000 1,527,000 26.7% 1 Income before the deduction of depreciation, interest, amortization, and income taxes, but after the deduction of a reserve for capital replacement. City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 38 Proposed Hotel Ukiah Projected Operating Results Calendar Years 2020 2021 2022 2023 2024 Number of Units:75 75 75 75 75 Number of Annual Rooms Available:27,375 27,375 27,375 27,375 27,375 Number of Rooms Occupied:17,790 18,620 19,710 19,710 19,710 Annual Occupancy:65.0%68.0%72.0%72.0%72.0% Average Daily Rate:$160.00 $168.00 $173.00 $178.00 $183.00 Revenue Per Available Room:$104.00 $114.24 $124.56 $128.16 $131.76 Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Revenues Rooms $2,846,000 71.5%$3,128,000 72.4%$3,410,000 73.1%$3,508,000 73.0%$3,607,000 73.0% Food & Beverage 1,076,000 27.0%1,127,000 26.1%1,187,000 25.4%1,223,000 25.5%1,259,000 25.5% Other Operated Departments 40,000 1.0%43,000 1.0%47,000 1.0%48,000 1.0%50,000 1.0% Rentals and Other Income 20,000 0.5%22,000 0.5%24,000 0.5%24,000 0.5%25,000 0.5% Total Revenues 3,982,000 100.0%4,320,000 100.0%4,668,000 100.0%4,803,000 100.0%4,941,000 100.0% Departmental Expenses Rooms 549,000 19.3%578,000 18.5%612,000 17.9%630,000 18.0%649,000 18.0% Food & Beverage 1,022,000 95.0%1,015,000 90.1%1,009,000 85.0%1,039,000 85.0%1,071,000 85.1% Other Operated Departments 24,000 60.0%26,000 60.5%28,000 59.6%29,000 60.4%30,000 60.0% Total Departmental Expenses 1,595,000 40.1%1,619,000 37.5%1,649,000 35.3%1,698,000 35.4%1,750,000 35.4% Departmental Profit 2,387,000 59.9%2,701,000 62.5%3,019,000 64.7%3,105,000 64.6%3,191,000 64.6% Undistributed Expenses Administrative & General 340,000 8.5%356,000 8.2%372,000 8.0%383,000 8.0%395,000 8.0% Marketing (Including Franchise Fees)425,000 10.7%458,000 10.6%490,000 10.5%504,000 10.5%519,000 10.5% Property Operation and Maintenance 131,000 3.3%135,000 3.1%139,000 3.0%143,000 3.0%147,000 3.0% Utility Costs 173,000 4.3%178,000 4.1%184,000 3.9%189,000 3.9%195,000 3.9% Information and Telecommunications Systems 51,000 1.3%52,000 1.2%54,000 1.2%55,000 1.1%57,000 1.2% Total Undistributed Operating Expenses 1,120,000 28.1%1,179,000 27.3%1,239,000 26.5%1,274,000 26.5%1,313,000 26.6% Gross Operating Profit 1,267,000 31.8%1,522,000 35.2%1,780,000 38.1%1,831,000 38.1%1,878,000 38.0% Base Management Fee 159,000 4.0%173,000 4.0%187,000 4.0%192,000 4.0%198,000 4.0% Fixed Expenses Property Taxes 109,000 2.7%111,000 2.6%113,000 2.4%115,000 2.4%118,000 2.4% Insurance 46,000 1.2%48,000 1.1%49,000 1.0%51,000 1.1%52,000 1.1% Total Fixed Expenses 155,000 3.9%159,000 3.7%162,000 3.5%166,000 3.5%170,000 3.4% Net Operating Income 953,000 23.9%1,190,000 27.5%1,431,000 30.7%1,473,000 30.7%1,510,000 30.6% FF&E Reserve 80,000 2.0%130,000 3.0%187,000 4.0%192,000 4.0%198,000 4.0% Net Operating Income After Reserve $873,000 21.9%$1,060,000 24.5%$1,244,000 26.6%$1,281,000 26.7%$1,312,000 26.6% Source: CBRE Hotels Full Year of Operation City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 39 Proposed Hotel Ukiah Projected Operating Results Calendar Years 2025 2026 2027 2028 2029 Number of Units:75 75 75 75 75 Number of Annual Rooms Available:27,375 27,375 27,375 27,375 27,375 Number of Rooms Occupied:19,710 19,710 19,710 19,710 19,710 Annual Occupancy:72.0%72.0%72.0%72.0%72.0% Average Daily Rate:$188.00 $194.00 $200.00 $206.00 $212.00 Revenue Per Available Room:$135.36 $139.68 $144.00 $148.32 $152.64 Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Revenues Rooms $3,705,000 72.9%$3,824,000 73.0%$3,942,000 73.0%$4,060,000 73.0%$4,179,000 73.0% Food & Beverage 1,297,000 25.5%1,336,000 25.5%1,376,000 25.5%1,417,000 25.5%1,460,000 25.5% Other Operated Departments 51,000 1.0%53,000 1.0%55,000 1.0%56,000 1.0%58,000 1.0% Rentals and Other Income 26,000 0.5%26,000 0.5%27,000 0.5%28,000 0.5%29,000 0.5% Total Revenues 5,079,000 100.0%5,239,000 100.0%5,400,000 100.0%5,561,000 100.0%5,726,000 100.0% Departmental Expenses Rooms 669,000 18.1%689,000 18.0%709,000 18.0%731,000 18.0%753,000 18.0% Food & Beverage 1,103,000 85.0%1,136,000 85.0%1,170,000 85.0%1,205,000 85.0%1,241,000 85.0% Other Operated Departments 31,000 60.8%32,000 60.4%33,000 60.0%34,000 60.7%35,000 60.3% Total Departmental Expenses 1,803,000 35.5%1,857,000 35.4%1,912,000 35.4%1,970,000 35.4%2,029,000 35.4% Departmental Profit 3,276,000 64.5%3,382,000 64.6%3,488,000 64.6%3,591,000 64.6%3,697,000 64.6% Undistributed Expenses Administrative & General 406,000 8.0%419,000 8.0%431,000 8.0%444,000 8.0%457,000 8.0% Marketing (Including Franchise Fees)534,000 10.5%550,000 10.5%567,000 10.5%584,000 10.5%601,000 10.5% Property Operation and Maintenance 152,000 3.0%156,000 3.0%161,000 3.0%166,000 3.0%171,000 3.0% Utility Costs 201,000 4.0%207,000 4.0%213,000 3.9%219,000 3.9%226,000 3.9% Information and Telecommunications Systems 59,000 1.2%60,000 1.1%62,000 1.1%64,000 1.2%66,000 1.2% Total Undistributed Operating Expenses 1,352,000 26.6%1,392,000 26.6%1,434,000 26.6%1,477,000 26.6%1,521,000 26.6% Gross Operating Profit 1,924,000 37.9%1,990,000 38.0%2,054,000 38.0%2,114,000 38.0%2,176,000 38.0% Base Management Fee 203,000 4.0%210,000 4.0%216,000 4.0%222,000 4.0%229,000 4.0% Fixed Expenses Property Taxes 120,000 2.4%122,000 2.3%125,000 2.3%127,000 2.3%130,000 2.3% Insurance 54,000 1.1%55,000 1.0%57,000 1.1%59,000 1.1%61,000 1.1% Total Fixed Expenses 174,000 3.4%177,000 3.4%182,000 3.4%186,000 3.3%191,000 3.3% Net Operating Income 1,547,000 30.5%1,603,000 30.6%1,656,000 30.7%1,706,000 30.7%1,756,000 30.7% FF&E Reserve 203,000 4.0%210,000 4.0%216,000 4.0%222,000 4.0%229,000 4.0% Net Operating Income After Reserve $1,344,000 26.5%$1,393,000 26.6%$1,440,000 26.7%$1,484,000 26.7%$1,527,000 26.7% Source: CBRE Hotels City of Ukiah Proposed Hotel – Ukiah, California November 4, 2016 Page 40 G. CONCLUSION Based on the preceding work program, we have made a determination of the market viability for a hotel in Historic Downtown Ukiah. In conclusion, we are of the opinion that there is sufficient market demand to support the development of a 75-room, upscale hotel in Historic Downtown Ukiah. Furthermore, we are of the opinion that the vicinity of Parking Lot A (West Standley and Oak Streets) is the optimal site for the development of the recommended Hotel. This completes our analysis of the potential market demand and preparation of a statement of estimated annual operating results for a proposed hotel in Ukiah. After you have had an opportunity to review this letter, please feel free to contact us with any questions or comments. Thank you for this opportunity and we look forward to working with you on this engagement in the future. Yours sincerely, CBRE Hotels ______________________________________ By: Chris Kraus Managing Director chris.kraus@cbre.com I 415.652.4483 ______________________________________ By: Miky Kuo Director miky.kuo@cbre.com I 415.772.0358 Addenda ADDENDA Addenda ADDENDUM A COMPARABLE FINANCIALS Comparable Financials Proposed Hotel Ukiah Operating Results of Comparable Hotels Hotel A Hotel B Hotel C Ratio Per Room P.O.R.Ratio Per Room P.O.R.Ratio Per Room P.O.R. Revenues Rooms 61.0%$18,157 $97.15 93.2%$33,473 $121.67 91.0%$35,212 $120.87 Food & Beverage 35.2%10,461 55.97 5.5%1,991 7.24 6.5%2,526 8.67 Other Operated Departments 2.7%814 4.36 1.1%408 1.48 2.1%797 2.73 Rentals and Other Income 1.0%311 1.66 0.1%38 0.14 0.4%156 0.54 Total Revenues 100.0%29,744 159.14 100.0%35,910 130.52 100.0%38,691 132.81 Departmental Expenses Rooms 23.0%4,169 22.31 19.9%6,672 24.25 22.7%7,985 27.41 Food & Beverage 84.6%8,850 47.35 108.9%2,168 7.88 129.1%3,262 11.20 Other Operated Departments 69.6%566 3.03 56.2%229 0.83 56.6%451 1.55 Total Departmental Expenses 45.7%13,585 72.69 25.3%9,069 32.96 30.2%11,697 40.15 Departmental Profit 54.3%16,158 86.45 74.7%26,841 97.56 69.8%26,994 92.66 Undistributed Expenses Administrative & General 10.0%2,985 15.97 8.7%3,108 11.30 8.2%3,189 10.95 Marketing (Including Franchise Fees)10.2%3,026 16.19 10.9%3,906 14.20 13.8%5,339 18.32 Property Operation and Maintenance 4.3%1,291 6.91 3.5%1,268 4.61 3.2%1,254 4.31 Utility Costs 5.1%1,506 8.06 4.6%1,670 6.07 3.7%1,423 4.89 Information and Telecommunications Systems 1.7%500 2.67 2.0%704 2.56 0.0%0 0.00 Total Undistributed Operating Expenses 31.3%9,308 49.80 29.7%10,654 38.73 29.0%11,205 38.46 Gross Operating Profit 23.0%6,851 36.66 45.1%16,187 58.84 40.8%15,789 54.20 Base Management Fee 3.0%892 4.77 3.0%1,077 3.92 4.0%1,548 5.31 Fixed Expenses Property Taxes 2.4%709 3.79 2.9%1,059 3.85 2.4%910 3.12 Insurance 4.4%1,298 6.94 1.4%511 1.86 1.9%744 2.56 Total Fixed Expenses 6.7%2,006 10.74 4.4%1,570 5.71 4.3%1,654 5.68 Net Operating Income 13.3%3,952 21.15 37.7%13,540 49.21 32.5%12,587 43.21 FF&E Reserve/Capital Expenditures 4.0%1,190 6.37 4.0%1,436 5.22 4.0%1,548 5.31 Net Operating Income After Reserve 9.3%$2,762 $14.78 33.7%$12,103 $43.99 28.5%$11,040 $37.89 Source: CBRE Hotels Comparable Financials Proposed Hotel Ukiah Operating Results of Comparable Hotels Hotel D Hotel E Weighted Average 1 Ratio Per Room P.O.R.Ratio Per Room P.O.R.Ratio Per Room P.O.R. Revenues Rooms 91.7%$33,109 $109.97 86.3%$36,732 $127.73 85.2%$31,147 $116.35 Food & Beverage 7.6%2,727 9.06 12.0%5,112 17.78 12.9%4,711 17.60 Other Operated Departments 0.7%259 0.86 1.3%574 2.00 1.6%577 2.16 Rentals and Other Income 0.0%0 0.00 0.4%160 0.56 0.4%175 0.68 Total Revenues 100.0%36,096 119.89 100.0%42,578 148.06 100.0%36,573 136.61 Departmental Expenses Rooms 22.4%7,426 24.66 17.8%6,527 22.70 21.0%6,539 24.43 Food & Beverage 101.9%2,780 9.23 90.4%4,619 16.06 94.6%4,457 16.65 Other Operated Departments 62.6%162 0.54 46.2%265 0.92 58.9%340 1.27 Total Departmental Expenses 28.7%10,368 34.44 26.8%11,411 39.68 31.0%11,336 42.35 Departmental Profit 71.3%25,727 85.45 73.2%31,167 108.38 69.0%25,236 94.27 Undistributed Expenses Administrative & General 8.4%3,021 10.03 12.6%5,379 18.71 9.7%3,545 13.24 Marketing (Including Franchise Fees)15.5%5,604 18.61 13.0%5,532 19.24 12.9%4,710 17.60 Property Operation and Maintenance 3.5%1,273 4.23 3.2%1,383 4.81 3.5%1,295 4.84 Utility Costs 4.2%1,533 5.09 3.5%1,507 5.24 4.2%1,521 5.68 Information and Telecommunications Systems 1.4%520 1.73 0.0%0 0.00 0.9%563 2.23 Total Undistributed Operating Expenses 33.1%11,951 39.69 32.4%13,802 48.00 31.2%11,403 42.59 Gross Operating Profit 38.2%13,776 45.75 40.8%17,365 60.39 37.8%13,834 51.67 Base Management Fee 2.5%902 3.00 5.5%2,342 8.14 3.7%1,357 5.07 Fixed Expenses Property Taxes 0.0%0 0.00 3.4%1,448 5.04 2.2%1,026 3.97 Insurance 0.1%37 0.12 0.7%306 1.06 1.6%584 2.18 Total Fixed Expenses 0.1%37 0.12 4.1%1,754 6.10 3.8%1,391 5.19 Net Operating Income 35.6%12,836 42.63 31.2%13,270 46.14 30.3%11,086 41.41 FF&E Reserve/Capital Expenditures 4.0%1,444 4.80 4.0%1,703 5.92 4.0%1,463 5.46 Net Operating Income After Reserve 31.6%$11,393 $37.84 27.2%$11,566 $40.22 26.3%$9,623 $35.95 Source: CBRE Hotels Addenda ADDENDUM B CERTIFICATION Addenda Certification We, Chris Kraus and Miky Kuo, certify that, to the best of our knowledge and belief: 1. The statements of fact contained in this report are true and correct. 2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, conclusions, and recommendations. 3. We have no present or prospective interest in or bias with respect to the property that is the subject of this report and have no personal interest in or bias with respect to the parties involved with this assignment. 4. We have performed no (or the specified) services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. 5. We have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment. 6. Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this report. 7. Chris Kraus and Miky Kuo have made personal inspections of the identified hotel sites. 8. No one has provided significant professional assistance to the persons signing this report. 9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. 10. Valuation & Advisory Services operates as an independent economic entity within CBRE, Inc. Although employees of other CBRE, Inc. divisions may be contacted as a part of our routine market research investigations, absolute client confidentiality and privacy were maintained at all times with regard to this assignment without conflict of interest. 11. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. 12. As of the date of this report, Chris Kraus has completed the continuing education program for Designated Members of the Appraisal Institute. 13. Chris Kraus is a Certified General Real Estate Appraiser in the State of California. Chris Kraus Miky Kuo Managing Director Director chris.kraus@cbre.com miky.kuo@cbre.com 415.652.4483 415.772.0358 Addenda Addendum C ASSUMPTIONS AND LIMITING CONDITIONS Addenda Assumptions and Limiting Conditions 1. CBRE, Inc. through its appraiser (collectively, “CBRE”) has inspected through reasonable observation the subject property. However, it is not possible or reasonably practicable to personally inspect conditions beneath the soil and the entire interior and exterior of the improvements on the subject property. Therefore, no representation is made as to such matters. 2. The report, including its conclusions and any portion of such report (the “Report”), is as of the date set forth in the letter of transmittal and based upon the information, market, economic, and property conditions and projected levels of operation existing as of such date. The dollar amount of any conclusion as to value in the Report is based upon the purchasing power of the U.S. Dollar on such date. The Report is subject to change as a result of fluctuations in any of the foregoing. CBRE has no obligation to revise the Report to reflect any such fluctuations or other events or conditions which occur subsequent to such date. 3. 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FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. $0 STP d(1) 51024220.80230 Yes No COU No. 1516001 PC17002 $0 Water Capital 82224413.80230 Yes No $0 Wastewater 84024421.80230 Yes No Green Valley Consulting Engineers PM/PE Proj Engr CAD I CAD II Survey Admin Subtotal Direct Task Total $145 $135 $110 $125 $190 $70 Costs Fees TASK NUMBER DESCRIPTION Task 1 Construction Support Services 36 0 75 4 $14,875 $14,875 Total Hours 36 0 0 75 0 4 $14,875 -$ Estimated Design Fee Total $14,875 CITY OF UKIAH 2016 Sewer and Water Improvements Project Amendment #1 ESTIMATED DESIGN FEES PROPOSED HOURS March 1, 2017 2 of 2 The Ukiah Valley Trail Group 2015 Low Gap Park Trail Plan is a guide for City and County staff, work crews, and Service Organizations to ensure uniformity in the development and maintenance of a first class trail system at Low Gap Park. Please find this plan attached for your review (Attachment #1). Some of the recommended changes have already been implemented, such as the City has placed signage at the trail head to the City View Trail to better distinguish the trail and visually provide a reminder on the trail rules. The County of Mendocino on November 1, 2016, approved the MOU and adopted the Ukiah Valley Trail Group’s 2015 Low Gap Park Trail Plan. The approved MOU is attached for your review (Attachment #2). While there is no direct fiscal impact on this agreement, the partnership with the UVTG will reduce the amount of time City staff dedicates to the maintenance of the City View Trail. Park crews will continue to maintain the Ukiah Skate Park and parking areas. Staff recommends authorizing the City Manager to execute the proposed MOU between the County, the City of Ukiah, and the Ukiah Valley Trail Group and; Council adopt the Ukiah Valley Trail Group’s 2015 Low Gap Park Trail Plan. FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A 2015 Neil Davis, Executive Director Ukiah Valley Trail Group 12/14/2015 Low Gap Park Trail Plan Ukiah Valley Trail Group Low Gap Park Trail Plan 2 1.Exec Summary 2.Project Scope a.Background b.Need c.Methodology 3.Park Areas a.Dog Park b.Picnic Areas c.Disc Golf d.Archery Range e.Tennis Courts/ Skateboard Park f.PAR Course g.Amphitheater 4.Existing Roads 5.Existing Trail Descriptions and Recommendations a.North Orr Creek Trail b.South Orr Creek Trail c.Lower Canyon Creekside Trails d.“Maple Hill” Trail e.Canyon Creek Trail f.Orr/Canyon Connector Trail g.Unrecognized Canyon Creek Short Cut Trail h.City View Trail i.“Picnic” Trail j.Red Arrow Trail k.“Walkway” Trail 6.Proposed Trails a.Canyon/City View Connector Trail b.Upper City View Trail c.ADA/ABA Access Trail d.Orr Creek Greenway Connection e.Maple Hill View Spot Trail 7.Undesirable Goat (Use) trails a.Trail to the U b.Short cuts 8.Trail Removal 9.Signage 10.Benches and Picnic Tables 11.Creek Access Facilities 12.Caretaker Area 13.Trail Name Auction Plan 14.Bridges Ukiah Valley Trail Group Low Gap Park Trail Plan 3 Appendix The Universal Trail Assessment Process Universal Trail Assessment Plan Example Design and Maintenance Standards Maps Map #1 – All Trail Map Map #2 – Park Resources Map Map #3 – Truck Roads Map #4 – Lower Canyon Creek/Maple Hill Use Trails Map #5 – Canyon Creek Reroute Map #6 – Canyon Creek/City View Connector Trail Map #7 – Upper City View Trail Map #8 - Accessible Trail Map #9 – Orr Creek Greenway Glossary References Acknowledgements Ukiah Valley Trail Group Low Gap Park Trail Plan 4 Executive Summary Low Gap Park, located on the western edge of Ukiah, is Ukiah’s largest and most popular park. The park is home to a wide variety of recreational resources including a skate park, tennis courts, picnic areas, a disc golf course, an outdoor stage, and a trail system. Over half the park’s acreage is devoted to public access open space and trails and trail use and nature related activities are the most common activity in the park. Despite this heavy use there is no Trail Plan to guide the work of City and County staff and the volunteer organizations that assist them. With grant funding from the Community Foundation of Mendocino County, Ukiah Valley Trail Group staff have prepared this document to provide guidance to City and County staff, work crews, and Service Organizations to ensure uniformity in the development and maintenance of a first class trail system at Low Gap Park. Ukiah Valley Trail Group (UVTG) staff and volunteers reviewed maps and documents to develop a history of the park and to document park resources. UVTG staff and volunteers then walked the property to assess the existing trails in the Park. Trails were categorized as (a) Truck Road, (b) Design Built (official), and (c) Use or Goat Trail (unofficial). Some trails appear to be hybrid in that they likely evolved as Use (Goat) Trails and then at some point received maintenance and were tacitly accepted as “official” trails. Some of these hybrids merit adoption, while others may need to be removed. UVTG staff used the Universal Trail Assessment Process, a widely accepted trail assessment tool, to review, categorize, and suggest improvements to the trail system. Areas where new trails or significant reroutes of old trails are recommended have been identified. Maps were created and photos have been included to assist in documenting current trails and conditions and proposed trails and realignments. The roads, and many of the existing trails, are un-named. This plan has provided temporary names to these roads and trails to assist in communication and proposes a process for providing permanent names. The plan describes the trails, outlines the strengths and weaknesses of each trail, and provides suggestions on how problems should be addressed. Some trail problems negatively impact the user experience, while others risk environmental damage and of course, the cost of the suggested Ukiah Valley Trail Group Low Gap Park Trail Plan 5 improvements is highly variable. Decision makers will need to balance the benefits and costs as well as funding sources in setting project priorities. The truck roads are generally in good shape while the bridges are all in poor shape. The trails run the gamut from well designed and in excellent repair to poorly aligned and maintained. Additionally, there is a need for creek access improvements and accessible (Americans with Disabilities Act {ADA} or Architectural Barriers Act compliant {ABA}) trails. The plan identifies a few areas where new sections of trail, including an ADA/ABA compliant trail, may be beneficial and a number of old routes that should be decommissioned and re-vegetated. Efforts should be made to prepare for a connecting route with the proposed Orr Creek Greenway outlined in the City of Ukiah Bike and Pedestrian Master Plan. Project Scope Background Park Location: Low Gap Park is located at the base of the western hills of Ukiah, just across Low Gap Road from Ukiah High School. The park extends to the south and shares a boundary with the Ukiah Golf Course. The park is approximately 160 acres and is situated along Orr Creek, one of the three major streams in Ukiah and an important tributary of the Russian River. The City of Ukiah owns the southern half of the park and the County of Mendocino owns the northern half. Park History: Until 1955, the City of Ukiah used a portion of the County owned land for the City dump. In 1955 the dump was closed and topsoil from what is now the archery range was pushed over the dumpsite to seal it off. Prior to its use as a City dump, there was a lumber mill and millworkers' housing on the site. Remnants of both these former uses can still be found in certain areas of the park. In 1964, when one of the earliest State Park Bond acts was passed, a decision was made by the Mendocino County Board of Supervisors to eventually develop the Low Gap property into a regional County park. However, by 1973, when the County Parks Department was created, nothing had yet been done with the funds allocated for Low Gap, and it became the Park Director's first duty to proceed with the Low Gap project. Development of the park continued beyond the initial construction of restrooms and a parking lot, with the help of funds acquired under the State Park Bond Act, the Roberti-Z'Berg Grant, and the Land and Water Conservation Act. (The latter two grants were competitive grants requiring County match funds.) With this financial assistance, the County was able to reconstruct and develop several recreational facilities including approximately three miles of trail that are now known as Canyon Creek and Orr Creek Trails. Over time the facilities grew to include an archery range, tennis courts, a disc golf course, a dog park, a small outdoor theater, and a PAR course. Ukiah Valley Trail Group Low Gap Park Trail Plan 6 In 2005 members of the City Of Ukiah Paths, Open Space, and Creeks Commission (POSCC) alerted the community to the existence of approximately 80 acres of City-owned, undeveloped natural habitat adjacent to Low Gap Park. The Commission brought a recommendation to the Ukiah City Council that the acreage be used for passive recreation and conservation. The initial proposal was to build a trail from Low Gap Park to Todd Grove Park with a terminus along the side of the golf course. Resistance from the golfing community led to the plan being modified so as to avoid the golf course. In 2007 the Ukiah Valley Trail Group obtained grant funding to build a trail that would later become known as City View Trail. The trail was completed in 2010. In 2012 the Friends of Low Gap Park was formed. The group met routinely for about two years and made a number of recommendations to the City and County. Among the recommendations was a call for a trail plan. In early 2014 County staff arranged for work crews to come and perform what they considered to be routine maintenance on the trails at Low Gap Park. Unfortunately, the work left some members of the community upset with the quality and goals of the work. With the support of Ukiah City Manger Jane Chambers and County Supervisor John McCowen the Ukiah Valley Trail Group offered to draft a plan for the trails at Low Gap Park. Need For the Plan The County of Mendocino does not have a Recreation Department and parks are managed under the General Services Department. The City of Ukiah has a Community Services Department with dedicated recreation staff. However, neither the City nor the County has staff with the specific training to make recommendations regarding the building and maintenance of trails. Both the City and the County have staff members who are willing to pitch in and do what they can to manage the trail system. Additionally, the Ukiah Valley Trail Group and other service organizations are willing to assist with trail maintenance. However, too many “cooks” with no guiding Trail Plan document, is a recipe for disaster. It is the purpose of this document to provide guidance to City and County staff, work crews, and Service Organizations to ensure uniformity in the development and maintenance of a first class trail system at Low Gap Park. Methodology Ukiah Valley Trail Group (UVTG) staff and volunteers reviewed maps and documents to develop a history of the park and to document park resources. UVTG staff and volunteers then walked the property to assess the existing trails in the Park. Trails were categorized as (a) Truck Road, (b) Design Built (official), and (c) Use or Goat Trail (unofficial). Some trails appear to be hybrid in that they likely evolved as Use (Goat) trails and then at some point received maintenance and were accepted as “official” trails. Some of these hybrids merit adoption, while others may need to be removed. Ukiah Valley Trail Group Low Gap Park Trail Plan 7 Universal Trail Assessment Process (UTAP) All existing trails were assessed. The Universal Trail Assessment Process (UTAP) was applied to all significant trails. Use trails and shortcuts that were deemed obviously unsuitable for continued use had their locations logged but were not assessed. The UTAP objectively documents the actual conditions in outdoor, natural environments. The UTAP is a tool that land managers, agencies, and individuals can utilize to learn about, monitor, improve, and use on any outdoor path of travel. Ukiah Valley Trail Group Executive Director Neil Davis is a Certified Trail Assessment Coordinator and supervised the data collection and prepared the UTAP reports. Areas where new trails or significant reroutes of old trails are recommended have been identified. UTAPs for these potential projects can be created if and when the projects are approved. Maps were created and photos have been included to assist in documenting current trails and conditions and proposed trails and realignments. Park Areas Low Gap Park has a wide variety of facilities. This section will briefly describe the current primary uses. This document does not however seek to describe how these facilities should be managed other than to make recommendations where it is deemed potential interests may compete or conflict with the Ukiah Valley Trail Group Low Gap Park Trail Plan 8 preservation of natural habitat and the quality of trail user experience. The original recommendation from the City of Ukiah’s Paths, Open Space, and Creeks Commission was the City portion of the Park should be managed for passive recreation, education, and conservation. It is the recommendation of this plan that broad swaths of the park should be protected and conserved as native habitat. The passive recreational and educational use of the park through trails should be balanced by efforts to minimize the impact on the natural habitat. For both the City and the County’s properties it is imperative that the other uses of the park be limited to their current footprint and not be allowed to expand into any area that is currently being managed for conservation. Dog Park The Dog Park is clearly delineated by existing fencing and should not be expanded further into the park. Pets should remain on leash when outside of the dog park and educational outreach may be necessary to discourage pet owners from allowing their dogs to go off leash or into the creeks. Dogs disrupt and potentially displace native wildlife even when they do not chase. All efforts should be made to reinforce the importance of keeping dogs on leash as well as discouraging bringing them onto trails. Picnic Areas There are four primary picnic areas in the park. 1) Next to the Tennis Courts at the Parking lot. 2) Next to Orr Creek near the bridge that provides access to the park. 3) Next to the Dog Park. 4) Harrison Grove Picnic area. The existing picnic areas provide room for multiple groups to picnic at any given time. It is also possible for a group to reserve a site. The reserve-able picnic areas are not always reserved indicating that there are adequate picnic sites at this time. Picnic areas should not be extended beyond their current footprint. Disc Golf The Low Gap Disc Golf course was established in 1982 and was one of the first Disc Golf Courses in Northern California. The course gets heavy use and is heavily worn and eroded. There is no organized service organization dedicated to managing the use and maintenance of the course. As such it is in bad repair and online forums give it mixed reviews. There have been unsanctioned extensions of the course that spread the significant impact of the course and increase erosion and danger posed by hard plastic discs being thrown form areas where other users are not expecting it. The course should be confined to its current footprint. Ukiah Valley Trail Group Low Gap Park Trail Plan 9 Archery Range The archery range is a simple amenity with minimal impact on the natural environment. It is lightly used and maintained by the users. No extension of the archery range is necessary and safety issues render extension of the range impractical. Tennis Courts/Skateboard Park The Tennis Courts and Skateboard Park are on County property and managed by the City. The tennis courts are lightly used and typically available for use with no wait. There is neither room nor demand for expansion of this amenity. The Skateboard Park is popular and heavily used. The park is shared with bicyclists. There is room to the immediate south of the skate park where a bicycle skills park could be built and there is arguably enough demand to justify it. Extension into this area could however impair the ability to build an accessible (ADA/ABA compliant) trail into the park recommended later in this plan. PAR Course The PAR course was rehabilitated with all new stations placed in the Spring of 2015. There are approximately 20 stations on the course designed to provide users with a complete physical workout. The stations are positioned predominantly along the N Orr Creek Trail* and extend back past the Archery range and the loop is completed near the first tee on the disc golf course. * Low Gap Park does not currently have an adequate or completely named system of trails. This plan identifies what is currently referred to as Orr Creek Trail as North Orr Creek Trail and identifies the un- named trail on the south side of the main entrance as South Orr Creek Trail. Amphitheater The amphitheater seats approximately 150 people and is equipped with power. The theater is located near the 18th hole of the disc golf course. It is a rarely used facility. The lightly used amphitheater at Low Gap Park. Ukiah Valley Trail Group Low Gap Park Trail Plan 10 Existing Roads This plan identifies four unique but un-named roads in Low Gap Park (Map #3). The roads are all wide enough to be used by a truck and are a combination of asphalt and compacted dirt and/or gravel. For the purpose of discussion the roads will be referred to as 1) Main Entrance Truck Rd, 2) Maple Hill Truck Rd, 3) “H” Truck Road, and 4) Picnic Area Service Rd. Maintenance staff are also in the habit of driving vehicles to the upper portions of the Disc Golf course to empty trash cans. These paths do not appear to have been part of a design or maintenance plan. County staff may want to consider addressing this use. Ukiah Valley Trail Group Low Gap Park Trail Plan 11 Quick Notes: UTAP #1: North Orr Creek Trail Length: 2722’ Avg. Grade: 6.% Max Grade: 19% x 56’ Additional 200’ section over 15% grade. Nearly one quarter of the trail is 13+% slope. This trail has a deceptively low average slope due to long flat sections followed by very steep sections. The steep sections hold up well to erosion. Although it is a relatively strenuous trail, it does not require much maintenance. Existing Trail Descriptions and Recommendations The trails of Low Gap Park run the gamut from ill-located and aligned Goat trails to excellently designed and built state of the art purpose built trails. Use patterns indicate that the N Orr Creek, Creekside and and City View Trail are the most popular routes in the park. However, all trails and paths in the park have their adherents. (See Map #1 – All Trails Map) (North) Orr Creek Trail Description: (North) Orr Creek Trail, along with Canyon Creek Trail, is an older and popular trail. It is most readily accessed from Harrison Grove across from the Dog Park. It quickly descends to Orr Creek and parallels the creek for approximately a third of a mile. Glass shards and other evidence of the area’s history as a dump are prominent. The trail allows access to the creek via a number of “Use Trails.” It passes an old non-functioning water fountain and then provides access to the park’s PAR course. At the western edge of the park’s boundary the trail reverses course and climbs steeply to an old iron sundial. The trail then turns to the south and climbs steeply along an old telephone pole retaining wall. It then turns to the east, crosses a 30 foot, wooden bridge before ending at the Main Truck Road. Problem areas: 1) creek-side erosion that threatens to erode into the trail, 2) presence of an old non- functioning water fountain 3) an erosive, fall-line use trail that connects the sundial and the old water fountain, 4) an old section of Firebreak that is used as a “Goat Trail” to climb to Canyon Creek Trail, 5) The bridge is in moderate to poor condition. Recommendations: 1) Realign east end of trail to bring it higher on the hillside away from erosive area of creek. 2) If property boundaries allow, connect (North) Orr Creek Trail with (South) Orr Creek Trail. 3) Close and re-vegetate Use Trails. 4) Remove old drinking fountain. Ukiah Valley Trail Group Low Gap Park Trail Plan 12 Quick Notes: UTAP #2: (South) Orr Creek Trail Length: 856’ Avg. Grade: 10.2.% Max Grade: 30% x 100’ Due to its location in a flood plan, this trails should be completely realigned/relocated on to the hillside to the south of the flood plain. Quick Notes: UTAP #3: Lower Canyon Creekside Trail Length: 540’ Avg. Grade: 12.% Max Grade: 38%% x 32’ Along with South Orr Creek Trail, this tangle of use/goat trails shold be completely realigned. Creek observation decks can serve as bridges to allow the public the ability to observe the creek without disturbing the habitat. (South) Orr Creek Trail Description: (South) Orr Creek Trail starts at the west end of the main truck bridge at the entrance to the park. It immediately uses an old, dilapidated wooden bridge to cross Canyon Creek. The trail immediately turns to the west paralleling Orr Creek. This initial section is narrow and rocky. The trail then descends to a flood plain where it provides a variety of access points to the creek. The area frequently floods. Following each flood, the old trail course is obliterated and users establish a new Goat “Use” trail. The trail continues to parallel the creek for a few hundred yards before climbing steeply to the Maple Hill Truck Road and an unsanctioned access point to the golf course. Problem Areas: 1) The wooden bridge connects with a small area from which trail cannot be properly aligned without removal of large boulders. 2) The flood plain is not suitable for a trail. 3) The creek access is inadequate. 4) The bridge is in very poor condition and should be replaced. Recommendations: 1) The existing trail alignment should be abandoned and re-vegetated. 2) A newly aligned trail can (a) provide views and access to the creek, (b) not depend on the current bridge site and (c) provide access between Maple Hill and the Park Entrance. 3) The trail should be re-aligned to start at the top of the existing stairs near the Dog Park. 4) The existing bridge should be removed. 4) An observation deck/bridge should be used at the creek crossing 5) The new trail should be aligned to stay above the flood plain with specific defined spots to take users to the creek. The new trail should climb on a contour to an observation platform midway up the creek then switchback twice to gain the summit at the bottom of Maple Hill. 6) An observation deck should be placed at the top of the creek where it crosses Maple Hill Road. 7) All platform/bridge/observation decks should have interpretive signage explaining the importance of staying on the trail and out of the creek. Lower Canyon Creekside Trails Description: A variety of poorly situated (aligned) trails criss-cross the lower Canyon Creek drainage. They appear to be Goat Trails that have been adopted with subsequent maintenance providing them with a degree of credibility. The trails are over-steep, redundant, and too close to the creek. The main trail starts at the wooden bridge that provides access to (South) Orr Creek Trail. The trail immediately bisects into multiple paths with one climbing steeply over boulders and the other skirting immediately adjacent to the creek. The main (most heavily used) trail continues to climb along a fall line to eventually connect with the Maple Hill Truck Road. The secondary branch continues up the creek-side, branches Ukiah Valley Trail Group Low Gap Park Trail Plan 13 into multiple goat trails crisscrossing the creek and eventually comes out on the Maple Hill Truck Road to the west of the main branch. Recommendation: This solution to the problems of this area and the South Orr Creek trail are one and the same. The wooden bridge at the bottom of the trail should be removed. The trail should primarily be closed and re-vegetated with a new trail realignment to allow planned crossings with creek viewing platforms. The trail can connect with the newly re-aligned (South) Orr Creek trail and Maple Hill Truck Road. Inclusion in Trail Naming Program is recommended. Stream crossings can be accommodated by providing “Observation Platforms” that allow the dual function of crossing the creek while allowing users to observe the creek. The observation platforms would provide a good place for interpretive signage instructing users on the importance of staying out of the environmentally sensitive creek. Ukiah Valley Trail Group Low Gap Park Trail Plan 14 Quick Notes: UTAP #4: “Maple Hill Trail Length: 558’ Avg. Grade: 12% Max Grade: 20% x 60’ This trail only requires routine maintenance. Quick Notes: UTAP #5: Canyon Creek Trail Length: 3463’ Avg. Grade: 10% Max Grade: 25% x 60’ This is one of the most popular trails in the Park. Although the narrow, tight switch backs are not ideal, they are holding up well. The trail could be realigned to improve the user experience but the effort to realign the trail may not be worth the gain. “Maple Hill Trail” Description: The Maple Hill area is bordered by the Maple Hill Service Road that begins at the private property top of Maple Hill Avenue, circles a knob of land and continues to and past the beginning of Canyon Creek Trail and the Disc Golf Course. “Maple Hill Trail” is likely a use trail that has received improvement/maintenance and drops steeply along the west edge of the property until it meets the Maple Hill Service Road. The trail is over steep and appears to be used primarily by people who are accessing the park from Maple Avenue. The trail is holding up well to its current level of use despite being overly steep. There is no evidence of this trail having been given a specific name and is referred to here as “Maple Hill Trail” for convenience. Renaming this un-named trail is a potential source of one time revenue. Recommendation: No Changes, routine maintenance. Include this trail in the Trail Naming Program Canyon Creek Trail Description: Canyon Creek Trail starts at the Archery Range and climbs to the western boundary of the park via a number of tight and narrow switchbacks. The switchback section is too steep and is likely a reason for the trails relatively light use. Despite the poor trail layout the trail requires little maintenance. It eventually provides an excellent view spot with an existing bench. The trail then contours to the south The blue dotted lines mark the better established routes. The green lines are use trails and should be removed. The effort may not be worth the gain. Ukiah Valley Trail Group Low Gap Park Trail Plan 15 Quick Notes: UTAP #7: Canyon Creek Cutoff Trail Length: 776’ Avg. Grade: 19.4% Max Grade: 28% x 109’ This is a redundant, un-necessary, and overly steep trail that should be decommissioned. and crosses a poorly designed, ill-maintained bridge. It then drops at a reasonable pitch to the City View Trail and continues on to its terminus near the west end of Maple Hill Service Road. Problem Areas: 1) As the trail initially climbs away from the archery range, it intersects with the “Canyon Creek Cutoff Trail.” A 16-24 foot section of split rail should be placed here when the trail is decommissioned as recommended later in the plan. 2) The switchbacks are too narrow and spaced too close together leading to cutting of switchbacks and a less than optimal hiking experience. Significant trail realignment should be considered but would require a major effort. Orr/Canyon Creek Connector Road This 120 foot section of old Truck Road connects N Orr Creek Trail and Canyon Creek trail. The section is preferentially used by hikers who are hiking both trails as a loop (as opposed to hiking to and past the Archery Range). Problem Area: The trail is excessively steep. Canyon Creek Cutoff Trail The history of this trail is unclear. It may be a use trail that received maintenance or it may have been purpose built. It is over-steep and redundant. It does not provide a unique trail experience or destination. It is simply a shortcut that increases long term maintenance requirements and increases human impact on the natural environment and wildlife. Appendix Recommendation: Decommission and restore the area. The black line in this image shows the very steep route of the Canyon Creek Shortcut Trail. Ukiah Valley Trail Group Low Gap Park Trail Plan 16 Quick Notes: UTAP #8: City View Trail Length: 8358’ Avg. Grade: 6.3% Max Grade: 30% x 22’ The most popular trail in the park. Routine maintenance. Quick Notes: UTAP #9: “Picnic Trail” Length: 526’ Avg. Grade: 3.1% Max Grade:9% x 75’ A well designed, pleasant but short section of trail. Routine maintenance. City View Trail City View trail was purpose designed and built to a high standard in 2010. It is the most heavily travelled and popular trail in the park. The trail is 8358 feet long (1.6 miles) and has sustainable grades. Despite heavy use, the trail is holding up well and requires minimal maintenance. The trail has become the preferred jump off point for illegal off trail access to the “U” on the property above Low Gap Park. Efforts to stop this trespass (signage and split rail fence) have proven futile. Further discussion of this can be found in the “Trespass to the U” section of this plan. Recommendation: Routine maintenance. “Picnic” Trail This un-named trail - here referred to as “Picnic trail - is a well laid out and sustainable trail that provides access from the main picnic are to Orr Creek. The Picnic Area is directly uphill from Orr Creek and there are multiple use trails from the area to the Creek. North Orr Creek Trail and “Picnic” Trail should be the two routes between the Picnic area and the Creek. Currently there is no signage to inform users how to get to the creek. Recommendation: 1) Add signage so users can find the trails to the creek and interpretative signage to educate users as to the problems created by shortcutting. 2) Build fence along the creek side of the picnic area. 3) Add interpretative and directional signs. Off trail shortcutting should be able to be minimized by building a fence along the creek sie edge of the area and creating a new route from the east side of the picnic area to N Orr Creek Trail. Routine maintenance of the trail. Inclusion in trail naming program. Red Arrow Trail “Red Arrow” trail is signed as starting next to the 4th tee of the disc golf course and continues onto the disc golf course. Leading hikers onto the disc golf course is undesirable to both disc golfers and hikers. The trail route is unclear (once a user is on the disc golf course there is no single clear path) and its signage is inappropriate and misleading. Ukiah Valley Trail Group Low Gap Park Trail Plan 17 Recommendation: Decommission trail and remove signs. “Walkway” Trail This is not a true trail but a common short cut route across a picnic area and playground. It is frequently used by hikers who are on their way to City View Trail. There is no downside to people walking this way and no significant benefit to improving it as a route. Ukiah Valley Trail Group Low Gap Park Trail Plan 18 Proposed Trails Canyon/City View Connector Trail This proposed trail would be approximately one half mile and would contour at approximately the 1100 foot elevation level from Canyon Creek trail to City View trail. This trail would provide an additional loop option and allow frequent users of the area a different option thereby encouraging more frequent use (a public health benefit). The trail route crosses areas of mixed hardwood before contouring through redwood trees to a seasonal stream crossing. The majority of side slopes are moderate and the alignment would be suitable to hand-built trail techniques. Upper City View Trail The area uphill from City View Trail is large enough to allow a new loop trail to be built. There is room for up to an additional mile of trail. Anecdotal reports of people doing multiple loops of City View Trail and the high use of City View Trail suggest there is a desire for increased trail mileage in the park. The side slopes are not as great as on City View Trail and the area is suitable for hand built trail. The habitat and soil is similar to City View Trail. ADA/ABA Access Trail The existing trail system at Low Gap Park does not include any trails that meet Americans with Disabilities Act (ADA) or Architectural Barriers Act (ABA) standards. Existing trails are not suitable for being improved to meet these standards. The existing access road that starts at the parking lot descends to the bridge at greater than the 5% maximum allowed by the ADA and ascends from the bridge at a greater slope as well. The ABA allows for steeper slopes on recreational trails, however the ADA standard could be interpreted to apply to the primary access road. An ADA trail (paved or unpaved) can and should be built from the parking lot to the picnic area below the Tennis courts. The trail can be aligned to travel between the playground and the upper picnic area near the tennis courts. From there it can traverse to the west and descend to the lower picnic area. This can provide for a one quarter to a half mile of ADA Ukiah Valley Trail Group Low Gap Park Trail Plan 19 compliant trail. The trail would provide access to a picnic area, provide creek access, and provide for a nature trail experience. “Creek access” and “nature trail experience” constitute the primary trail experiences one can have at Low Gap Park. As such, this trail would provide a disabled person with the same experience as any able bodied user and satisfy ADA/ABA guidelines. Orr Creek Greenway Connection The Ukiah Bike and Pedestrian Master Plan calls for the development of a “greenway” along Orr Creek from Low Gap Park to downtown Ukiah and beyond. The Orr Creek Greenway will provide a pedestrian and bicycle trail, creek restoration, riparian restoration, and pocket parks. The best option would be for the Orr Creek Greenway to be an extension of the above outlined ADA/ABA Access trail. This alignment would take the trail along the north side of the creek behind the jail. A second alternative would be for it to connect with the Maple Hill Truck Road after crossing along the Northern boundary of the Golf Course. Both options are feasible from Low Gap Park. Maple Hill View Spot Trail The Maple Hill area of the park is criss-crossed with use trails. The use trails take users to 1) a view spot on the top of the hill, 2) a beautiful, large “old growth” Manzanita, 3) a short-cut route to the top of the hill, 4) and a couple of children’s or homeless user redoubts. This concentration of use trails is probably due to a combination of the area having light use (allowing for unobserved use) and a couple of desirable destinations ( the beautiful tree and the view spot). A new 700-1000 foot section of trail that connects South Orr Creek trail to the top of “Maple Hill Trail” would allow users access to the view spot and the manzanita tree while allowing an additional loop of high quality narrow tread trail. Bringing additional users to this area would discourage the current inappropriate off trail recreation. Harrison Grove Picnic area to Orr Creek People using the Harrison Grove Picnic area can hear the creek below them and will be irresistibly drawn to it. The “Picnic” trail described earlier provides one access route. A second well signed route is Ukiah Valley Trail Group Low Gap Park Trail Plan 20 required to allow users to reach the creek without creating multiple use trails down the hillside. A short section of trail can be built from the east end of the picnic area connecting with N Orr Creek Trail. Undesirable Goat (Use) trails “Trail” to the U The western hills of Ukiah are home to the 40 foot tall “U.” The “U” is on private property uphill and to the west of Low Gap Park and has been in its current location since at least the 1930’s. Hiking to this icon of school and City spirit has provided something of a rite of passage as well as an excuse to get exercise for decades. Many long time Ukiah residents relate stories of hiking to the “U” with school classes and new residents are drawn to hike to the U” as part of an unofficial initiation as a “local.” Most Ukiah residents have hiked to the “U” at least once and many have made the trek multiple times. Although the current property owner is not overly concerned with the trespass, she has not given permission for public access. Once at the “U” some users decide to descend along a truck road that takes them across private property and outlets at the top of Standley Street. These property owners have been outspoken in their displeasure with trespassing. Efforts to stop or discourage users from leaving City View Trail to hike to the “U” have been ineffectual. The heavy use has led to the creation of a well established use trail that leaves from the top of City View Trail and takes the trespasser directly uphill to a location on the firebreak below the “U.” The Upper City View Trail discussed above would take users closer to the “U.” If an easement to the “U” were granted, property boundary limitations would still make it unlikely that a sustainable–grade trail could be built to the same location on the firebreak. Additionally, many trespassing hikers are seeking an arduous hike, or are goal/destination driven, and therefore would likely continue to take the steepest, shortest route to the “U.” Although an Upper City View Trail may be desirable, it is not likely to decrease the short-cutting or trespass to the “U.” Neither is there any reason to believe it will increase trespass to the “U.” The use trail is in relatively good shape despite heavy use and poor design. Should the land owner at some future date allow a public easement to the “U,” a re-evaluation would be necessary to determine the best trail design and maintenance strategies. Recommendations: Efforts to discourage trespass should be continued. Innovative ideas to stop or discourage trespass should be sought. Foster good relations with land owning neighbors. Consider working with local Land Trusts to obtain property rights or easements. Short cuts Short cutting is a significant problem at Low Gap Park. Many short cuts have received enough use to appear to uninformed hikers to be legitimate trails and some “trails” that have received maintenance likely began as short cuts. Short cuts are typically over-steep, but can be desirable to users who wish to quickly get to a desired destination or desire an arduous workout. Significant short cuts are found, 1) between the Harrison Grove picnic area and Orr Creek ( 4-5 short cuts) , 2) in the Maple Hill area, (Maple Ukiah Valley Trail Group Low Gap Park Trail Plan 21 Hill Use Tangle.jpg) 3) along both sides of Canyon Creek between the main access bridge and Maple Hill Truck Road, 4) on the old firebreak on the North West corner of the park, 5) from the bottom of City View Trail to the “U.” Recommendations: 1) Split rail fence around the Harrison Grove picnic area to physically block short cuts with directional signs to inform users the way to the trail and the creek and interpretive signage to discourage off trail scrambles. 2) Improving existing trails to allow sanctioned access to desirable areas, split rail fence along critical areas of Maple Hill Truck Road, and interpretative signage to educate users regarding the reasons not to take short cuts. 3) Realignment of trails on lower Canyon Creek with the addition of observation platforms and interpretive signage. 4) Split rail fence and re-vegetation on the old firebreak. 5) Continue efforts as discussed above to discourage short cutting and trespass from City View Trail. Trail Removal and Restoration Practices Trails that are over-steep, impinge on sensitive habitat, are redundant or are otherwise poorly aligned may need to be removed. Removing or “decommissioning” of trails requires a concerted effort as users are typically tenacious in their efforts to continue to use established and familiar routes. When a trail is removed, all practical efforts should be made to restore the area to its natural condition. The hardened trail course should be scarified to loosen the impacted dirt. Downhill ledges should be removed, and to the extent possible, the natural side slope should be restored. Natural duff materials should be used to cover the old trail. Planting in the old trail-bed, particularly upright tall plants can obscure the trail “doorway” and render the path less apparent and less likely to be accessed. Recommended Signage Trail signs help the user with way finding, inform users of allowed behaviors, and interpretive signage can improve user experience. All trails should have way finding signs at intersections. Park and trail rules should be placed at the main trailhead and minimized through the rest of the park. Interpretive signage tends to do a better job of guiding behavior than does prohibitive signage because it tells users why not to do things rather than simply stating to not do it. The vast majority of users will visit the park many times and will only read the interpretive signs the first time they see them. However, interpretive signs remain a magnet for vandalism through their life. Benches and Picnic Tables on Trails Benches are appreciated by many users and may allow some users to extend the length of their outing by facilitating rest. Additionally, memorial plaques on benches can provide an additional source of revenue. However, they are not essential and can be a target for vandalism and increase the need for This view of the Maple Hill area shows multiple use trails (in red). Ukiah Valley Trail Group Low Gap Park Trail Plan 22 maintenance. Benches should not be placed more than once per mile or once per trail if the trail is shorter than a mile. Picnic tables are also appreciated by some users. The above pros and cons for benches apply to picnic tables as well. However, there is an increased incidence of garbage and fire risk associated with picnicking. This plan advises against picnic tables. Creek Access Facilities Creek access is one of the two primary user experiences provided by the Low Gap Trail System. Orr Creek and Canyon Creek are potentially accessible. Both creeks are seasonally dry. Orr Creek historically was a steelhead fishery and steelhead can still occasionally be seen in the creek. Historically people and their pets have accessed Orr Creek from the picnic area below the tennis courts, the South Orr Creek trail, and the North Orr Creek Trail. There is significant erosion along the edge of the picnic area on Orr Creek, largely but not exclusively, from recreational access at this spot. Canyon Creek between the main access bridge and Maple Hill Truck Road has been significantly impacted with multiple use trails and multiple inappropriate and environmentally unsound access points along both sides of the creek. Ecologically it would be best if people and their pets did not go in either of the creeks. This however is unlikely an achievable goal. Setting a goal of limiting and controlling access points, while minimizing impact, is a realistic goal. Recommendation: 1) The primary creek access point should be at the Picnic area below the tennis courts. Hardening of the stream bank with some type of rock or cement stairs/benches and an ADA accessible ramp to the water will provide access and sediment/erosion control (see Photo XX). ADA or ABA trail should and can be built from the parking lot to this location. Ukiah Valley Trail Group Low Gap Park Trail Plan 23 2) Additional access points along the other side (southern side) of the river from South Orr Creek Trail can be provided using natural surfaces. Re-aligning the Canyon Creek Trail and removing the current wooden bridge as discussed earlier in this plan will render this location more remote and should act to decrease the amount of access from this location. Extensive seasonal flooding of this area render it impracticable to harden access areas. 3) Access points to Orr Creek from North Orr Creek trail should be at the two sites. These could be rock or stair/benches but would not require a ramp as the trail to this location is not ADA compatible. A wooden viewing deck with or without a rock stairway to the creek would concentrate user impact to the area at location x and could be employed as a way to decrease creek access. 4) Access to lower Canyon Creek should be limited to the viewing platforms as described in the Lower Canyon Creek trail portion of the plan above. The goal for Canyon Creek would be to provide viewing access of the creek while keeping people and their pets out of the creek. Caretaker Area The Caretaker area as described here includes the bathrooms and the fenced area immediately adjacent to them. Historically a caretaker lived in a trailer in the fenced area with reduced rent in return for providing a “neighborhood watch” to the park. The County administered the caretaker program and at some point in the not distant past the program was discontinued and the trailer was removed. The area still has power and plumbing. There are a few storage sheds inside the fence that county staff use for Park Maintenance supplies. Recommendation: The Bathrooms at this location should be kept and maintained. Options for this area should be explored as the site is becoming a nuisance and eye-sore. The review process of this draft should be used to identify a best option for the Caretaker area. Trail Naming Plan The truck roads and many of the trails at Low Gap Park do not have names. All roads and approved trails should have names to assist users with way finding and planners and staff with communication. The need for trail and road names with the concomitant need for project funding presents the possibility of meeting both ends with a process of auctioning naming rights with proceeds to benefit trail projects at Low Gap Park. Auctioning of naming rights could happen at a charity event or it could be done in an online format. Although all trails and road naming rights could be done at once, it is likely a greater total return would be obtained by auctioning one or two trails or roads at a time over the course of years. There are three roads and between three and eight trails that could be auctioned ( ADA/ABA trail, S Orr Creek Trail, City View/Canyon Creek Connector, Upper City View, Lower Creekside, Maple Hill, Maple Hill View). Ukiah Valley Trail Group Low Gap Park Trail Plan 24 Simple guidelines could be outlined in advance to ensure trail names are appropriate and inoffensive. The Ukiah Valley Trail Group or similar non-profit organization could be enlisted to organize and manage the process as well as to hold the funds until a Low Gap Park trail project is identified that is suitable Bridges There are four bridges plus a number of puncheons in Low Gap Park. All four of the bridges are in moderate to poor shape and planning for their replacement should be a priority. Puncheons can be maintained or replaced with minimal effort during the course of routine maintenance. Existing puncheons are in moderate to excellent shape. Ukiah Valley Trail Group Low Gap Park Trail Plan 25 Appendix The Universal Trail Assessment Process (UTAP) By Kathy Newman, Beneficial Designs American Trails is helping promote and further the Universal Trail Assessment Process (UTAP). The UTAP is a tool that land managers, agencies and individuals use to monitor, improve, and document any outdoor path of travel. Data collected during the assessment can also be provided to trail users for specific conditions, such as grade, tread width, features, obstacles, and trail surface. An updated discussion on UTAP and its goals with regard to the diversity of trail activity types was made available May 14, 2003. Beneficial Designs developed UTAP with land management agencies and organizations focused on accessibility; several are now using it to assess trails. As UTAP has evolved over the last eight years, the need to expand how the process is taught and used has become evident. Funding has been received to create software for managing UTAP data and also to develop an educational program to increase the number of UTAP Trainers in partnership with American Trails. Workshops on UTAP training are posted on the Calendar. The UTAP sponsors are also members of the National Trails Training Partnership. Background Beneficial Designs received funding in June of 1993 to create a universal mapping system to communicate detailed and pertinent information about individual trails. The information was designed to be useful to anyone who might want to hike a trail, regardless of their hiking ability. Existing trail rating systems using subjective descriptions such as "difficult" do not give users the information they may need to safely attempt a hike. Summary of the UTAP Process The Five Access Characteristics-- During a 1991 pilot study conducted in Yellowstone National Park and the Gallatin National Forest, Beneficial Designs identified five characteristics of a trail that greatly affect access. A system to collect and provide to the public information about grade, cross slope, surface type, obstacles, and trail width was developed into the Universal Assessment Process to help make trail systems more accessible to users. Grade -- The average grade between two designated stations along the trail is measured with a clinometer. These measurements are then used to compute the average grade for the entire trail. Short, steep sections are measured with an inclinometer and recorded as maximum grade sections. The inclinometer is 24 inches in length and thus measures the grade as it would be experienced over the course of a single stride, or by a stroller or wheelchair. Information about the maximum grade sections found on a trail is used to add detailed information to maps. The average and maximum grades are displayed with the grade symbol to convey this pertinent information on TAI Strips and trailhead signage. Objective information about the average and maximum grade is very useful to all user groups, especially mountain bike riders and persons with mobility limitations, including older persons and those that use canes, crutches, walkers or wheelchairs. Cross Slope Cross -- slope is measured at designated stations along the trail with a 24-inch inclinometer. These measurements are then used to compute the average cross slope for the entire trail. Similar to Ukiah Valley Trail Group Low Gap Park Trail Plan 26 maximum grade, steep cross slope sections are measured with an inclinometer and recorded as maximum cross slope sections. This information is used to add detailed information to maps. The average and maximum cross slopes are displayed with the cross slope symbol to convey this pertinent information on TAI Strips and trailhead signage. Cross slope information is most useful to wheelchair users. Wheelchairs are very difficult to drive or maneuver on steep cross slopes. Width -- A tape measure is used to measure the width of the trail. The minimum tread width, or "beaten path," is measured at each station and is used to calculate the average tread width. The minimum amount of usable passage space between stations, or minimum clearance width, is also measured. Objective information about the width of the trail and the locations of the narrowest sections is critical for people who use mobility devices such as strollers, walkers, and wheelchairs. The average manual wheelchair has a wheelbase width of less than 28 inches. If a trail narrows to 26 inches, persons in a 28- inch wheelchair will know that they will not be able to venture past this point unless they are capable of transferring out of their chair and maneuvering their chair through this narrow location. If the width of the trail is disclosed, mobility device users will be able to determine before embarking on a trail exactly how far they will be able to hike and whether they will be able to reach their destination. Surface -- The type of surface found in between stations is recorded, as well as a description of its characteristics. Trail surface type is a major influence on the degree of access for all user groups. Trail Length -- The distance from the trailhead is continuously recorded to indicate the total length as well as the position of each measurement site relative to the start of the trail. UTAP Tools and Materials Our Universal Trail Assessment Tool Kit includes a complete array of inexpensive and easy-to-use devices that will enable you to assess your trail accurately while keeping your costs down. Each kit includes a Suunto compass to determine the trail bearing; a Suunto clinometer to measure the average grade between two points of the trail; a digital SmartTool inclinometer to measure trail sections for maximum grade and maximum and average cross slope in percent, degrees, or rise:run a Rolatape to measure the trail length and the positions of trail features and points of interest. Also included in the tool kit is a good old-fashioned tape measure to measure tread and clearance widths and the magnitude of obstacles, two clipboards to hold data sheets, pre-printed marking flags, a roll of marking tape, a dictaphone and cassettes, a 2-3 person First-aid Kit, master copies of the Trail Data Forms, a permanent marker for writing on flags, and a backpack for carrying essentials. All items fit into a sturdy carrying bag, with plenty of room left for granola bars and rain gear. The above items can be purchased separately or as a kit. The Minimum Kit includes all of the above items for one low price, and the Preferred Kit includes a second compass and inclinometer. For purchasing information, contact kathy@beneficialdesigns.com Trail Assessment Training Manual The Universal Trail Assessment Coordinator Training Manual teaches you how to asses a trail for access, mapping, and maintenance information. Illustrated step-by-step instructions show how to use each assessment tool, how to accurately measure grade, cross slope , width, and obstacles and how to describe surface type. Ukiah Valley Trail Group Low Gap Park Trail Plan 27 The manual includes tips for putting together an effective trail assessment team, checklists for organizing a trail assessment, slope conversion tables (percent:degrees:run/rise), and both the Access Board's and Beneficial Designs' proposed design standards for outdoor recreation access routes and trails. The Training Manual also teaches you how to correctly complete each line on the Trail Data Form and record trail descriptions. The Training Manual includes examples of obstacles, trail features, points of interest, maintenance issues, and other descriptive information. Although the Training Manual offers detailed instruction for conducting a Universal Trail Assessment, there's no substitute for hands-on training. We strongly recommend that before you conduct a Universal Trail Assessment, you participate in a Universal Trail Assessment Coordinator Training Workshop. The complete list of UTAP training opportunities by date are posted on the National Trails Training Partnership Calendar. Benefits of UTAP The UTAP can be used to:  provide Trail Access Information to users document and monitor trail conditions and the environmental impact of the trail  identify and prioritize maintenance, access and construction needs create detailed logs of signs, bridges and other facilities  increase user safety and enjoyment by enabling informed trail choices  gather interpretive information about the trail environment  enhance trail access and use for a wide variety of users, including older adults, inexperienced users, families and people with disabilities  track changes in trail conditions over time  determine trail compliance with design standards  create trail maps, signs and other information products accurately  budget for trail maintenance activities  provide detailed reference information for search-and-rescue plans and activities  UTAP Train-the-Trainer Program Ukiah Valley Trail Group Low Gap Park Trail Plan 28 Universal Trail Assessment Plan Example All UTAPs created for this plan are available in excel format upon request. Ukiah Valley Trail Group Low Gap Park Trail Plan 29 Design and Maintenance Standards Ukiah Valley Trail Group Philosophy and Design and Maintenance Standards Trail Philosophy: Central to the Ukiah Valley Trail Group’s approach to trails is the recognition that our world is one of finite resources and, since demand for these resources is increasing steadily; insightful management is of utmost concern. The Inland Mendocino County Trail system must be designed to utilize resources in ways that benefit all non-motorized users. This entails providing adequate accommodation and accessibility, rather than focusing on individual user groups. The increased sharing of resources sometimes creates friction between the diverse user groups vying for more trail space. This Trail Plan acknowledges that a certain amount of friction is inevitable and therefore focuses on planned communication to minimize the differences and optimize the benefits derived from these precious resources. Plans for optimal use of trail resources must be in concert with the objective of natural and cultural resource protection. Any decisions on resource use affect not only local residents and visitors, but our natural and cultural habitat as well. If we make responsible decisions concerning preservation of our resources, we will succeed in our custodial duties to the environment while at the same time providing enjoyment for current and future generations. Through well designed, constructed and maintained trails we will accomplish optimal public access while accommodating resource conservation. Providing the public with increased access to trail and greenways is not enough; we must also strive to promote the abundant benefits that derive from them. Trail benefits include recreation, transportation, energy conservation, environment and habitat protection, fire suppression, improved physical and mental health, and local economic benefits. Informing the public of the significant benefits expands public awareness of the advantages that trails and greenways offer to the individual and the community. Gaining public support thereby encourages policy makers to support trails and greenways and to increase funding to better manage the trail system. Improving relationships and interaction between government entities and the private sector will be necessary for the effective development of a well planned and managed trail and green-way system. Open communication between all levels of government and interested parties enhances the finding of common objectives by making individuals and groups part of the solution. Linking communities and trail advocates in trail planning minimizes land use conflicts and allows for optimal resource use. Joint planning emphasizes the development of interconnected trails in natural settings and a united effort creates a stronger voice for advancing trail proposals. Ukiah Valley Trail Group Low Gap Park Trail Plan 30 The general goals that define a quality trail system include: 1-Adequate mileage - Moderate strong bike or horse riders ride 15-20 miles in a day - Endurance riders will ride 100 miles in a day - There are approximately 30 miles of trail in the Ukiah Valley Lake Mendocino currently has approximately 16 miles of trail and is near to maximum capacity. Small increases are necessary but can be mitigated with road closures and road to trail conversions. Employing a “stacked loop” design can maximize the trail experience within the capacity. 2- Connectivity - A single recreation area is unlikely to meet all the community’s needs. - Trails that connect the various areas are therefore necessary. - Connectivity allows trails to fulfill a transportation role. - Lake Mendocino Trails do not currently connect with any other trail systems. - Priority should be given to approving trails that link Lake Mendocino to outlying areas. 3- Variety of environments - An example of each of the area's micro-ecosystems should be included, such as Riparian, oak woodland, mixed hardwoods etc. - Trails should include sunny areas, which will be more desirable in the winter, and shady areas for summer use. 4- Variety of trail experiences - Different trail users appreciate different trail characteristics. - Equestrians generally prefer wider trails. - Mountain bikers generally prefer lots of rolling ups and downs with lots of turns. - Runners tend to prefer gentle grades. - Advanced users desire more “technical” or challenging trail - narrower with a rougher, more uneven tread. A quality trail system will provide a variety of trail experiences. A small trail system should focus first on trails that meet the needs of the majority of users. 5- Easy Access/Options - Users need to be able to get from home to trail quickly and start their experience. Ukiah Valley Trail Group Low Gap Park Trail Plan 31 - The first trail from the trailhead should be an easy trail, wide and smooth - suitable for all users. - As users delve further into the system, the trails should increase in difficulty. - “Stacked loops” of trails allow users to return by a different route while providing a variety of options. 6- Signage / Mapping - All trails should be named and signed. - All trailheads should have an information kiosk. - Maps should be readily available for all trails. 7- Sustainability & Maintenance - Trails need to be well maintained. - Trails designed to sustainable standards require much less maintenance. Trail tread and slope characteristics 1. Trail Width: Trail beds shall be built and maintained with a goal of being three feet wide. Topographical, vegetation, or resource constraints may require sections that are less than three feet. Rationale: Allows users to pass by each other safely. 2. Rolling “Contour” Trails: Trails shall be built with the contour of the topography (plus or minus 10%) utilizing side-slopes and avoiding flat areas as much as feasible. Rationale: Building trail along fall lines or in flat areas creates erosion. “Contour” trails allow water to sheet off the trail and flow downhill. Keeping trails on hillsides keeps them out of flatter, wetter areas. Trails built in wet areas are not sustainable. Users tend to walk along edge of trails, creating trail widening. Wet areas are more prone to soil compaction and displacement. “Contour trails create changing view sheds that add to the enjoyment of the trail. 3. Average trail grade less than or equal to 10%: The average slope of the trail will be less than or equal to 10%, some slopes will be greater and some less. Side slope, soil type and natural obstacles will determine the grades for each individual section of Ukiah Valley Trail Group Low Gap Park Trail Plan 32 trail. Sections that are over 10% should be short and followed by a relatively flat section or grade reversal. Rationale: Most soil types can withstand up to 10% grades. Minimizes user-caused erosion. Allows for possible reroutes at a steeper grade if there is a future problem such as a slide. Accommodates undulations/grade reversals. Feels comfortable to most trail users. Grade reversals after steep sections allow the user to recover from the increased effort. 4. Sustainable trail alignment - Trail grade does not exceed “half-rule”: The grade of the trail should not be greater than half the grade of the sideslope that the trail traverses. Rationale: Prevents erosion caused by water flowing down the trail rather than flowing down the hillside. Guides individual trail planning segments to fit the topography. 5. Maximum trail grades should be less than 15%: Rationale: Although this rule might occasionally need to be broken, at least for short segments of trail, our observation is that most of the existing trails in the Ukiah Valley are sustainable up to a grade of 15%. Higher grades, especially in areas exposed to weather, have suffered more erosion and damage from users. 6. Incorporation of grade reversals: Trails should incorporate frequent grade reversals every 10 to 50 feet, depending on soil type and topography. Rationale: Grade reversals provide areas for water to drain off of trails. As trails age, the shape of the trail bed tends to become concave, leading to the trapping of water. Grade reversals divide the trail into short, individual watersheds. 7. Build in outslope: Outer edges of trails shall be built and maintained so that they create an approximate 3-5% slope from the inner edge of the trail. Rationale: Allows water to sheet off of trail, decreasing erosion. 8. Build in backslope: Depending on soil stability and composition, the area uphill of the trail shall be sloped extending upward from the trail. Rationale: Prevents a waterfall effect from water coming down the hill and dropping onto the trail tread. Ukiah Valley Trail Group Low Gap Park Trail Plan 33 9. Water Crossings: Water crossings should be avoided when possible. Trails shall be designed, built, and maintained to minimize sedimentation in streams. Bridges shall be the ideal with puncheons, culverts or “hardening” being considered should resource limitations, infrequent water flow, or low use combine to make a bridge impractical. Prioritization of water crossings should be considered with high use crossings receiving first resources. Rationale: Minimize impacts to the stream channel and environment. Create a safe and sustainable passages for trail users. Work within limits of resource availability and predicted impacts. 10. Tree Cutting/Care: Prudent efforts to avoid cutting trees should be made in routing the trail. Greater care should be extended with older and/or slow growing trees and shrubs. Dirt excavated from the trail bed should be distributed and not allowed to mass at the base of trees. All efforts should be made to avoid cutting roots greater than 4” in diameter. Generally, a trail should not be located on the downhill slope within 2 feet of the base of oaks greater than 2 feet in diameter. Rationale: Minimize disruption to the vegetation along trail. Protect the health of vegetation along trail 11. Pruning Pruning vegetation is an essential and regular part of trail maintenance, especially in brushy chaparral areas. Equestrian trails should have 10' vertical clearance while hiking/biking trails can be maintained with 7’ clearance. Greater than four foot horizontal clearance should be avoided as it creates unnecessary disruption and decreases the aesthetic of the trail experience. Attempts should be made to ensure that pruned branches are distributed in a natural manner with the cut ends away from the trail. Pruning should be done sensitively so that the trail appears natural. Prune to the collar of any branch stem for the health of the shrub and a more natural looking result. At the base of any branch there is a wide section that contains a plant's natural healing agents. Any pruning performed away from this collar will expose the plant to a greater risk of infection. A cut at the collar will naturally heal. For large branches over 2" in diameter, cut from the bottom, then cut down from the top. This prevents tearing of the bark, reducing infection. Rationale: Maintain safe sight lines along trail. Protect the health of the vegetation. Maintain a naturally aesthetic setting. Ukiah Valley Trail Group Low Gap Park Trail Plan 34 Maps Map #1 – All Trail Map Ukiah Valley Trail Group Low Gap Park Trail Plan 35 Map #2 – Park Resources Map Ukiah Valley Trail Group Low Gap Park Trail Plan 36 Map #3 – Truck Roads Ukiah Valley Trail Group Low Gap Park Trail Plan 37 Map #4 – Lower Canyon Creek/Maple Hill Use Trails Ukiah Valley Trail Group Low Gap Park Trail Plan 38 Map #5 – Canyon Creek Reroute Ukiah Valley Trail Group Low Gap Park Trail Plan 39 Map #6 – Canyon Creek/City View Connector Trail Ukiah Valley Trail Group Low Gap Park Trail Plan 40 Map #7 – Upper City View Trail Ukiah Valley Trail Group Low Gap Park Trail Plan 41 Map #8 - Accessible Trail Ukiah Valley Trail Group Low Gap Park Trail Plan 42 Map #9 Orr Creek Greenway Ukiah Valley Trail Group Low Gap Park Trail Plan 43 Glossary Fire Break –a clearing, usually on a ridge designed to stop fire. Typically at least 8’ wide. Although trails can act as small firebreaks and have been known to stop fires and can be used as locations to start backfires, a firebreak is not a trail. Firebreaks are often very steep. A small subgroup of users may appreciate the physical challenge of hiking on these steep grades. Goat Trail – See Use Trail Puncheon – A short, low bridge. Usually 8’ or less long and less than three feet off the ground; typically does not require a handrail. Reroute – a trail maintenance project that starts and ends on a single existing trail and abandons the trail between those points will be termed a reroute. Road - Any transportation corridor designed for motor vehicle use and open to motor vehicle use. Although roads may be necessary for maintenance, further road building should be avoided and road closures should be pursued where possible. A road may be used for recreation but is not a trail. Trail - A trail is specifically designed, designated, developed, and maintained as a recreational corridor for the exclusive use of non-motorized vehicles. It is typically not more than 4 feet wide, unpaved and generally requires users to travel single file. Trail Maintenance and Repair 2 - Maintenance and repair of existing trail is performed to return the trail or trail segment to the standards or conditions to which it was originally designed and built, or to improve it to comply with more current design standards to achieve sustainability. The act of maintenance and repair includes but is not limited to: - Removal of debris and vegetation from the trail corridor, clearing encroaching brush and grasses, removing rock slides, etc.- Maintenance of trail tread such as filling ruts and entrenchments; reshaping trail bed, repairing trail surface and washouts; installing rip rap; constructing retaining wall or cribbing - Erosion control and drainage, replacing or installing necessary drainage structures, water bars, culverts; realigning sections of trail to deter erosion or avoid boggy/marshy areas. - Repair or replacement of existing trail structures. - Upgrades and short reroutes to improve sustainability and decrease maintenance needs. Universal Trail Assessment Process (or Plan) – The UTAP objectively documents the actual conditions in outdoor, natural environments. The UTAP is a tool that land managers, agencies, and individuals can utilize to learn about, monitor, improve, and use on any outdoor path of travel. Use (or User) Trail (Goat Trail)- A Use Trail is a trail that has been created without a planning process and or approval by the repeated historic exploration of users. Sometimes referred to as a Goat Trail. Ukiah Valley Trail Group Low Gap Park Trail Plan 44 References: Weber, Peter (Ed). 2007 Managing Mountain Biking: IMBA’s Guide to Providing Great Riding International Mountain Biking Association. Boulder CO ISBN978-9755023-1-X Birkby, Robert. 2005 Lightly on the Land: The SCA Trail Building and Maintenance Manual. 2nd edition. The Mountaineers Books. Seattle WA ISBN Felton, Vernon. 2004 Trail Solutions; How to Build Sweet Single Track. Johnson Printing, boulder CO ISBN 0-9755023-0-1 Flink, Charles, A. Olka, Kristine, Searns, Robert. Trails for the Twenty-First Century; Planning, Design, and Management Manual for Multi-Use Trails 2nd Edition. Island Press, Washington, Covelo, London. Parker, Troy Scott, 2004. Natural Surface Trails by Design. NatureShape, Boulder,CO. ISBN0-9755872-0-X Steinholz, Robert & Vachowski, Brian. 2001. Wetland Trail Design and Construction. USDA Forest Service Technology and Development Program Misoula, MT 8E82A3 Birchard, William & Proudman, Robert 2000 Appalachian Trail: Design, Construction, and Maintenance. 2nd Edition Appalachian Trail Conference Harper’s Ferry WV Demrow, Carl & Salisbury, David 1998. The Complete Guide to Trail Building and Maintenance, 3rd Edition. Appalachian Mountain Club Books. Boston, MA ISBN1-878239-54-6 Federal Highway Administration. Office of Planning, Environment, & Realty (HEP) http://www.fhwa.dot.gov/environment/recreational_trails/publications/rwt/fencing.cfm Ukiah Valley Trail Group Low Gap Park Trail Plan 45 Acknowledgements: Thanks to the following volunteers who assisted in the UTAP assessments of trails. Marc Carson, Mark Cerri, Andrea Davis, Jim Hatfield, Howie Hawkes, Alan Nicholson, Steve Prochter, and Lisa Ray. Also thanks to John Bilderbeck, Gail Johnson, Dave Lohse, and Bill Radtkey for assistance with formatting and editing of the plan. This trail plan made possible by the generous funding of the Community Foundation of Mendocino County. information, to the county surveyor, who shall maintain an index, by geographic location, of the documents. The county surveyor may charge a fee not to exceed the fee charged for recording the document, for purposes of financing the costs of maintaining the index of the documents. The requirements of this subdivision shall not apply to any county that requires a document filed pursuant to this section to be transmitted to the county surveyor and requires that official to maintain an index of those documents. 66467. This chapter shall not prevent filing in the office of the county recorder of a final or parcel map of a subdivision for which a final or parcel map is not required, provided such map meets the requirements of this division and any local ordinance. 66468. The filing for record of a final or parcel map by the county recorder shall automatically and finally determine the validity of such map and when recorded shall impart cconstructive notice thereof. 66468.1. Whenever separate documents are to be recorded concurrently with the final or parcel map pursuant to Section 66435.1 or 66445, the county recorder shall complete the cross- reference to such concurrently recorded separate documents. 66468.2. The board of supervisors may, by resolution, authorize any county officer to: (a) Perform the duties required of the clerk of the board of supervisors under this article. (b) Approve the security for payment of taxes required pursuant to subdivision (b) of Section 66464 if that county officer also performs the other duties required of the clerk of the board of supervisors under that subdivision. Subdivision Map Act 66469. After a final map or parcel map is filed in the office of the county recorder, it may be amended by a certificate of correction or an amending map for any of the following purposes: (a) To correct an error in any course or distance shown thereon. (b) To show any course or distance that was omitted therefrom. (c) To correct an error in the description of the real property shown on the map. (d) To indicate monuments set after the death, disability, retirement from practice, or replacement of the engineer or surveyor charged with responsibilities for setting monuments. (e) To show the proper location or character of any monument which has been changed in location or character originally was shown at the wrong location or incorrectly as to its character. (f) To correct any additional information filed or recorded pursuant to Section 66434.2, if the correction does not impose any additional burden on the present fee owners of the real property and does not alter any right, title, or interest in the real property reflected on the recorded map. (g) To correct any other type of map error or omission as approved by the county surveyor or city engineer that does not affect any property right, including, but not limited to, lot numbers, acreage, street names, and identification of adjacent record maps. As used in this section, "error" does not include changes in courses or distances from which an error is not ascertainable from the data shown on the final or parcel map. Subdivision Map Act & Division 3 59 66470. The amending map or certificate of correction shall be prepared and signed by a registered civil engineer or licensed land surveyor. An amending map shall conform to the requirements of Section 66434, if a final map, or subdivisions (a) to (d), inclusive, and (f) to(i), inclusive, of Section 66445, if a parcel map. The amending map or certificate of correction shall set forth in detail the corrections made and show the names of the fee owners of the real property affected by the correction or omission on the date of the filing or recording of the original recorded map. Upon recordation of a certificate of correction, the county recorder shall within 60 days of recording transmit a certified copy to the county surveyor or county engineer who shall maintain an index of recorded certificates of correction. The county recorder may charge a fee, in addition to the fee charged for recording the certificate of correction, which shall be transmitted to the county surveyor or the county engineer, as compensation for the cost of maintaining an index of recorded certificates of correction. The amount of this additional fee shall not exceed the fee which is charged for recording the certificate of correction. If the property affected by a map is located within a city, the county recorder shall, upon request of the city engineer, provide copies of recorded certificates of correction to the city engineer. 66471. (a) If the subdivision is in unincorporated territory, the county surveyor shall examine the amending map or certificate of correction and if the only changes made are those set forth in Section 66469, he or she shall certify to this fact on the amending map or certificate of correction. If the subdivision is in the city, such examination and certification shall be by the city surveyor or city engineer. (b) As to a certificate of correction, the county surveyor, city surveyor, or city engineer shall have 20 working days in which to examine the certificate of correction for compliance with Sections 66469 and 66470, endorse a statement on it of his or her examination and certification, and present it to the county recorder for recordation. In the event the submitted certificate of correction fails to comply with Sections 66469 and 66470, the county surveyor, city surveyor, or city engineer shall return it within the same 20 working days to the person who presented it, together with a written statement of the changes necessary to make it conform to the requirements of Sections 66469 and 66470. The licensed land surveyor or registered civil engineer submitting the certificate of correction may then make the changes in compliance with Sections 66469 and 66470 and resubmit the certificate of correction to the county surveyor, city surveyor, or city engineer for approval. The county surveyor, city surveyor, or city engineer shall have 10 working days after resubmission and approval of the certificate of correction to present it to the county recorder for recordation. 66472. The amending map or certificate of correction certified by the county surveyor, city surveyor, or city engineer shall be filed or recorded in the office of the county recorder in which the original map was filed. Upon that filing or recordation, the county recorder shall index the names of the fee owners of the real property reflected on the original recorded map, and the appropriate tract designation shown on the amending map or certificate of correction in the general index and map index respectively. Thereupon, the original map shall be deemed to have been conclusively so corrected, and thereafter shall impart constructive notice of all those corrections in the same manner as though set forth upon the original map. 60 Subdivision Map Act & Division 3 66472.1. In addition to the amendments authorized by Section 66469, after a final map or parcel map is filed in the office of the county recorder, the recorded final map may be modified by a certificate of correction or an amending map, if authorized by local ordinance, if the local agency finds that there are changes in circumstances that make any or all of the conditions of the map no longer appropriate or necessary and that the modifications do not impose any additional burden on the fee owners of the real property, and if the modifications do not alter any right, title, or interest in the real property reflected on the recorded map, and the local agency finds that the map as modified conforms to Section 66474. Any modification shall be set for public hearing as provided for in Section 66451.3 of this division. The legislative body shall confine the hearing to consideration of and action on the proposed modification. Subdivision Map Act 66473. A local agency shall disapprove a map for failure to meet or perform any of the requirements or conditions imposed by this division or local ordinance enacted pursuant thereto; provided that a final map shall be disapproved only for failure to meet or perform requirements or conditions which were applicable to the subdivision at the time of approval of the tentative map; and provided further that such disapproval shall be accompanied by a finding identifying the requirements or conditions which have not been met or performed. Such local ordinance shall include, but need not be limited to, a procedure for waiver of the provisions of this section when the failure of the map is the result of a technical and inadvertent error which, in the determination of the local agency, does not materially affect the validity of the map. 66473.1. (a) The design of a subdivision for which a tentative map is required pursuant to Section 66426 shall provide, to the extent feasible, for future passive or natural heating or cooling opportunities in the subdivision. (b) (1) Examples of passive or natural heating opportunities in subdivision design, include design of lot size and configuration to permit orientation of a structure in an east-west alignment for southern exposure. (2) Examples of passive or natural cooling opportunities in subdivision design include design of lot size and configuration to permit orientation of a structure to take advantage of shade or prevailing breezes. (c) In providing for future passive or natural heating or cooling opportunities in the design of a subdivision, consideration shall be given to local climate, to contour, to configuration of the parcel to be divided, and to other design and improvement requirements, and that provision shall not result in reducing allowable densities or the percentage of a lot that may be occupied by a building or structure under applicable planning and zoning in effect at the time the tentative map is filed. (d) The requirements of this section do not apply to condominium projects which consist of the subdivision of airspace in an existing building when no new structures are added. (e) For the purposes of this section, "feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social and technological factors. 66473.3. The legislative body of a city or county may, by ordinance, require the design of a subdivision for which a tentative map or parcel map is required pursuant to Section 66426 to provide for appropriate cable television systems and for communication systems, including, but not limited to, telephone and Internet services, to each parcel in the subdivision. "Appropriate Subdivision Map Act & Division 3 61 ATTACHMENT ORDINANCE NO. _______ ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH ADDING A NEW ARTICLE 22 TO CHAPTER 1 IN DIVISION 9 OF THE UKIAH CITY CODE, ENTITLED “MODIFICATIONS TO FINAL OR PARCEL-MAP.” The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. Division 9, Chapter 1, entitled “Subdivisions,” of the Ukiah City Code, is hereby amended to add a new Article 22, entitled “Modifications to Final or Parcel Map” which shall read as follows: ARTICLE 22. MODIFICATIONS TO FINAL OR PARCEL MAP. § 8460 REQUIREMENTS After a final or parcel map is filed in the office of the County Recorder, it may be amended by a certificate of correction or an amending map to make modifications when there are changes which make any or all of the conditions of the map no longer appropriate or necessary and the modifications do not impose any additional burden on the present fee owner of the property, and if the modifications do not alter any right, title or interest in the real property reflected on the recorded map. § 8461 APPLICATION FOR MODIFICATION Whenever a person or party desires to make a modification on a filed map that is allowed by Government Code Section 66472.1 and by City Code Section 8460, he shall submit an application to the City Engineer, which includes the reasons for the modification(s) and copies of a proposed amending map or a certificate of correction (prepared and signed by a civil engineer or land surveyor) as required. A filing fee and the public hearing fee as established by resolution of the City Council shall be paid at the time said application is filed. § 8462 DETERMINATION ON APPLICATION The modification shall be set for public hearing by the City Engineer, in the case of a parcel map, or by the Planning Commission, in the case of a final map, in accordance with California Government Code §§ 65090, 65091, 66451.3, and 66472.1, as they currently read or as they may be amended in the future. The City Engineer or Planning Commission shall confine the hearing to consideration of, and action on, the proposed modification. § 8463 APPEAL OF DECISION REGARDING MODIFICATION OF MAP CONDITIONS An interested party has the right to appeal a decision regarding modifications of conditions on a filed map. Such appeal will be heard by the Planning Commission, in the case of a parcel map, or by the City Council, in the case of a final map. Within ten (10) days of the date the decision on the modification was made, the interested party must file with the City Engineer a written appeal, stating the reasons for the appeal, and the appeal fee, if any, as established by resolution of the City Council from time to time. No appeal shall be considered, if the written appeal is not filed within the required 10 days or does not state the reasons for the appeal. The Planning Commission or the City Council shall affirm, reverse or modify any determination of the City Engineer or the Planning Commission with respect to the decision on the modification to the conditions on a filed subdivision map within thirty (30) days. ATTACHMENT 1 § 8464 FILING WITH THE COUNTY RECORDER The amending map or certificate of correction, certified by the City Engineer, shall be filed in the Office of the County Recorder. Upon such filing, the County Recorder shall index the names of the fee owners and the appropriate tract designation shown on the amending map or certificate of correction in the general index and map index respectively. Thereupon, the original map shall be deemed to have been conclusively so corrected, modified, or amended and thereafter shall impart constructive notice of all such corrections, modifications, or amendments in the same manner as though set forth in the original map. SECTION TWO. 1.Severability: If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council of the City of Ukiah hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases may be held invalid or unconstitutional. 2.Publication: Within fifteen (15) days after its adoption, this Ordinance shall be published once in a newspaper of general circulation in the City of Ukiah. In lieu of publishing the full text of the Ordinance, the City may publish a summary of the Ordinance once 5 days prior to its adoption and again within fifteen (15) days after its adoption. 3.Effective Date: The ordinance shall become effective thirty (30) days after its adoption. Introduced by title only on April 5, 2017, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Adopted on ___________, 2017 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: _______________ Jim O. Brown, Mayor ATTEST: _______ __ Kristine Lawler, City Clerk Page 2 of 2 needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. While traditionally addressed to the governing body of the City, this report is intended to provide relevant financial information to external users (non-management employees), who include the citizens of the City of Ukiah, City staff, creditors, investors, and other concerned readers. We encourage all readers to contact the Finance Department with any questions or comments concerning this report. The City’s financial statements have been audited by Van Lant & Fankhanel, LLP, a firm of certified public accountants. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2016, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Based upon the audit, the independent auditors concluded that there was reasonable basis for rendering an unqualified opinion, which states that the City’s financial statements for the fiscal year ended June 30, 2016, are presented fairly in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report. There were, however, audit findings, recommendations, and subsequent management responses made to several items related to internal control, most of which were carryovers from the prior fiscal year (2014-15). That information is found in the CAFR beginning on page #148. Management is committed to addressing those items in the 2016-17 year and beyond. Management will present the 2015-16 CAFR to Council and highlight key elements of the report for its consideration, including how to navigate the document. Fiscal Impact: FISCAL IMPACT: Budgeted Amount in 16-17 FY New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Previous Contract or Purchase Order No. N/A N/A N/A Yes No N/A Budget amendment required Yes No (If yes, Finance review required) Current budget appropriation $ N/A Requested amendment increase (decrease) $ N/A Amended budget appropriation $ N/A Source of financing New revenue Current revenue Fund balance/working capital Other : Affected fund(s) General Special revenue Water Sewer Electric Other enterprise Internal service Fiduciary funds Account(s) N/A Associated contract or PO No. N/A Finance reviewed Yes No Comments: N/A Comprehensive Annual Financial Report For the fiscal year ended June 30, 20 City of Ukiah Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 201 Prepared by the Finance Department Government Auditing Standards Introductory Section TOP 10 - REVENUES Current to Prior Period Ended June 30, 2016 Percent of Percent Total 2015-16 REVENUE 2015-16 2014-15 Change Revenues Top 10: Bradley-Burns Sales Tax 4,213,264$ 3,457,946$ 21.84% 27.40% 1/2% District Sales Tax (Measure P) 2,563,699 2,465,522 3.98% 16.68% Prop Tax In Lieu Of Vlf 1,293,374 1,252,905 3.23% 8.41% Transient Occupancy Tax (TOT), 8% 976,927 850,321 14.89% 6.35% City Utility Franchise Fee 893,522 1,043,404 -14.36% 5.81% Triple Flip Property Tax In Lieu 890,025 1,177,729 -24.43% 5.79% Redevelopment Tax Increment Pass-Through 662,724 639,199 3.68% 4.31% Secured Property Tax 617,563 593,189 4.11% 4.02% Refuse Disposal Franchise Fee 489,129 473,349 3.33% 3.18% Business License Tax 360,590 364,385 -1.04% 2.35% Total top 10 12,960,820 12,317,948 5.22% 84.30% Other Revenue 2,413,554 2,283,993 5.67% 15.70% Total operating revenue 15,374,374$ 14,601,941$ 5.29% 100.00% GENERAL FUND Five-Year Trend 2012 2013 2014 2015 2016 Revenue 13,211,341 13,453,616 13,235,450 14,493,862 15,374,374 Expenditures 13,650,142 15,349,387 15,167,827 15,099,745 15,407,401 Excess (deficiency) (438,801) (1,895,771) (1,932,377) (605,883) (33,027) Other sources (uses) 1,065,910 304,768 1,714,573 250,351 (157,430) Change in fund balance 627,109$ (1,591,003)$ (217,804)$ (355,532)$ (190,457)$ Beginning fund balance 6,237,800 6,864,909 5,273,906 5,715,426 5,359,105 Ending fund balance: Nonspendable 559,134 619,044 619,044 645,728 1,512,943 Restricted - - - - - Committed - 183,956 203,105 - - Assigned 4,851,110 89,859 - - 3,655,705 Unassigned 1,454,665 4,381,047 4,233,953 4,714,166 - Total ending fund balance 6,864,909$ 5,273,906$ 5,056,102$ 5,359,894$ 5,168,648$ Fiscal Year Ended June 30, ELECTRIC ENTERPRISE Five-Year Trend 2012 2013 2014 2015 2016 Revenue 16,329,459 15,177,990 15,080,656 15,413,370 14,789,340 Expenditures: Operating 12,279,037 12,679,304 12,829,515 14,496,789 15,367,124 Debt service 2,033,125 2,035,312 2,037,187 2,076,253 2,095,715 Capital outlay 1,637,808 426,194 860,408 1,730,441 1,013,394 Total expenditures 15,949,970 15,140,810 15,727,110 18,303,483 18,476,233 Excess (deficiency) 379,489 37,180 (646,454) (2,890,113) (3,686,893) Other sources (uses) (1,065,910) (1,029,127) (1,009,418) - 623 Change in working capital (686,421)$ (991,947)$ (1,655,872)$ (2,890,113)$ (3,686,270)$ Beginning working capital 28,824,415 28,137,994 27,146,047 25,490,175 22,600,062 Ending working capital, reserved for: Rate stabalization - - - - - Restricted - - - - 109,595 Debt service 4,043,341 4,043,341 4,043,341 4,043,341 4,043,341 Capital - - - - 2,848,748 Operations 24,094,653 23,102,706 21,446,834 18,556,721 11,912,108 Total ending working capital 28,137,994$ 27,146,047$ 25,490,175$ 22,600,062$ 18,913,792$ Fiscal Year Ended June 30, WATER ENTERPRISE Five-Year Trend 2012 2013 2014 2015 2016 Revenue 4,943,509 5,847,196 6,063,225 5,640,655 5,593,810 Expenditures: Operating 2,174,248 2,446,509 2,487,945 2,621,130 3,415,743 Debt service 1,088,369 1,075,780 1,066,651 1,013,800 600,302 Capital outlay 83,969 279,693 137,327 520,893 887,301 Total expenditures 3,346,586 3,801,982 3,691,923 4,155,823 4,903,346 Excess (deficiency) 1,596,923 2,045,214 2,371,302 1,484,832 690,464 Other sources (uses) - (15,000) (250,000) - 271,227 Change in working capital 1,596,923$ 2,030,214$ 2,121,302$ 1,484,832$ 961,691$ Beginning working capital 373,400 1,970,323 4,000,537 6,121,839 7,606,671 Ending working capital, reserved for: Rate stabalization - - - - - Restricted - - - - 1,285,254 Debt service - - - - - Capital - - - - 5,141,017 Operations 1,970,323 4,000,537 6,121,839 7,606,671 2,142,091 Total ending working capital 1,970,323$ 4,000,537$ 6,121,839$ 7,606,671$ 8,568,362$ Fiscal Year Ended June 30, SEWER ENTERPRISE Five-Year Trend 2012 2013 2014 2015 2016 Revenue 9,347,024 9,085,498 8,956,123 9,394,906 9,838,802 Expenditures: Operating 6,329,228 6,342,258 3,190,205 3,351,625 3,164,746 Debt service 5,307,129 5,288,494 5,281,493 5,278,494 4,842,900 Capital outlay 953,783 158,112 52,295 578,890 1,903,028 Total expenditures 12,590,140 11,788,864 8,523,993 9,209,009 9,910,674 Excess (deficiency) (3,243,116) (2,703,366) 432,130 185,897 (71,872) Other sources (uses) - (18,000) (68,000) - 202,313 Change in working capital (3,243,116)$ (2,721,366)$ 364,130$ 185,897$ 130,441$ Beginning working capital 19,460,405 16,217,289 13,495,923 13,860,053 14,045,950 Ending working capital, reserved for: Rate stabalization - - - - 2,933,236 Restricted - - - - 443,959 Debt service 3,786,579 3,786,579 3,786,579 3,786,579 3,786,579 Capital - - - - 715,845 Operations 12,430,710 9,709,344 10,073,474 10,259,371 6,296,772 Total ending working capital 16,217,289$ 13,495,923$ 13,860,053$ 14,045,950$ 14,176,391$ Fiscal Year Ended June 30, Fiscal Year 2015-16 Measure P Baseline Increase Expenditure Uses by Category FY 2014-15 FY 2015-16 (Decrease) Police: Sworn officers (Note 1)32 32 - Misc personnel (Note 2)18 19 1 Personnel 6,049,608$ 6,684,697$ 635,088$ Operations (Note 3)2,660,085 2,488,139 (171,946) Capital 186,594 206,006 19,412 Total police (Note 4)8,896,287 9,378,842 482,555 Fire: Firefighters: City 11 11 - UVFD 6 6 - Personnel 1,506,406 1,721,394 214,988 Operations: Contractual 516,180 393,179 (123,001) Other 530,822 778,557 247,736 Capital 30,400 31,129 730 Total fire 2,583,807 2,924,260 340,453 Total public safety 11,480,094 12,303,102 823,008 Dedicated Revenue Sources Measure P transaction and use tax 2,465,521 2,563,698 98,177 Public safety revenue: Police 262,254 277,132 14,878 Fire 37,235 73,828 36,593 Other (Note 5)739,607 574,112 (165,495) Total revenue 3,504,617 3,488,770 (15,847) Excess (deficiency) revenues over expenditures (7,975,477) (8,814,332) (838,855) Other Financing Sources General revenues, general fund 7,975,477 8,814,332 838,855 Remaining resources -$ -$ -$ Notes: 1) The City budgeted for 32 officers in FY 15-16. Actual number of filled positions fluctuated higher and lower due to illness/injury/attrition 2) Increase reflects addition of a dispatch supervisor. 3) Includes dispatch services. 4) Excludes parking enforcement expenditures. 5) Includes dispatch service revenue, except for general fund contributions. Excludes parking enforcement revenues. Eligible Measure P Costs Comparative o o Organization Chart City Officials Mayor Stephen G. Scalmanini Vice Mayor Jim O. Brown Councilmember Kevin Doble Councilmember Maureen Mulheren Councilmember Douglas F. Crane City Manager Sage Sangiacomo Electric Director Mel Grandi Finance Director (Vacant) Human Resources Director Melody Harris Police Chief Chris Dewey Fire Chief John Bartlett Planning Director Charley Stump Public Works Director Tim Eriksen Water and Sewer Director Sean White City Attorney David Rapport City Clerk Kristine Lawler Financial Section Independent Auditor’s report, Management’s discussion and analysis, basic financial statements and notes to the financial statements. Management’s Responsibility for the Financial Statements Auditor’s Responsibility Government Auditing Standards Opinions Other Matters Required Supplementary Information Other Information Government Auditing Standards Government Auditing Standards Government Auditing Standards Management’s Discussion and Analysis As management of the City of Ukiah (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2016. Please read it in conjunction with the accompanying basic financial statements. This analysis is organized into sections, moving from highlights of FY 2015-16, through descriptions of the financial statements and analysis of the selected information. The final section discusses some of the City’s financial processes and the upcoming budget outlook. Note: Unless otherwise indicated, all amounts are expressed in thousands of dollars. 1. FINANCIAL HIGHLIGHTS The City’s total net position increased 3% to $102,104 from $98,961 a year ago. Governmental activities net position ended the year at $20,705 up 3% from $20,100 in the prior year while the net position for Business Type activities was up 3% to $81,399 from $78,861 in 2015. Total tax revenue, other governmental revenues and business activity revenues were higher than expenses by $3,142. Total revenues from all sources were $51,319, up 3% from $49,987 in the prior year. The total cost of all activities was $48,177, down from the prior year at $53,753. General Fund revenues exceeded expenditures by $11,020 (actual dollar amount, not expressed in thousands) before transfers. 2. USING THIS ANNUAL REPORT This annual report consists of five parts – management’s discussion and analysis (this portion), the basic financial statements, the required supplemental information, an optional section that presents combining statements for non-major governmental funds and enterprise funds and a statistical section. The basic financial statements include two kinds of statements that present different views of the City: (1) The first two statements are government-wide financial statements that provide both long-term and short- term information about the City’s overall financial status. These include the Statement of Net Position and the Statement of Activities. (2) The remaining statements are fund financial statements that focus on individual parts of the City government, reporting on the City’s operations in more detail than the government-wide statements. The governmental funds statements tell how general governmental services like public safety were financed in the short-term as well as what remains for future spending. Proprietary fund statements offer short and long-term financial information about activities the government operates like businesses, such as the electric, water and wastewater funds business-type activities. Figure A-1 summarizes the major features of the City’s financial statements, including the portion of the City government they cover and the types of information they contain. The remainder of this overview section of Management’s discussion and analysis explains the structure and contents of each of the statements. Figure A-1 Major Features of City of Ukiah’s Government-wide and Fund Financial Statements Fund Statements Government-wide Statements Governmental Funds Proprietary Funds Scope Entire city government The activities of the City that are not proprietary or fiduciary, such as police, fire, and parks Activities the City operates similar to private businesses: such as electric, water, and wastewater systems. Required financial statements Statement of net position Balance sheet Statement of net position Statement of activities Statement of revenues, expenditures, and changes in fund balances Statement of revenues expenses, and changes in net position Statement of cash flows Accounting basis and measurement focus Accrual accounting and economic resources focus Modified accrual accounting and current financial resources focus Accrual accounting and economic resources focus Type of asset/liability information All assets and liabilities, both financial and capital, and short-term and long-term Only assets expected to be used up and liabilities that come due during the year or soon thereafter; no capital assets included All assets and liabilities, both financial and capital, and short-term and long-term Type of inflow/outflow information All revenues and expenses during year, regardless of when cash is received or paid Revenues for which cash is received during or soon after the end of the year; expenditures when goods or services have been received and payment is due during the year or soon thereafter All revenues and expenses during year, regardless of when cash is received or paid Government-wide Statements The government-wide statements report information about the City as a whole using accounting methods similar to those used by private-sector companies. The statement of net position includes all the government’s assets and liabilities. All of the current year’s revenues and expenses are accounted for in the statement of activities regardless of when cash is received or paid. The two government-wide statements report the City's net position and how it has changed. Net position – the difference between the City's assets, deferred outflows, liabilities, and deferred inflows – is one way to measure the City's financial health, or position. Over time, increases or decreases in the City's net position is an indicator of whether its financial health is improving or deteriorating, respectively. The government-wide financial statements of the City are divided into two categories: Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works, and community services. Property taxes, sales taxes, vehicle license fees, transient occupancy taxes, and franchise fees finance most of these activities. Business-type (Proprietary) activities –The City charges a fee to customers to cover all or most of the cost of the services provided. The City’s utility services (water, wastewater and electric), street lighting, parking, airport, golf course, and conference center are reported in this category. Fund Financial Statements The fund financial statements provide more detailed information about the City's most significant funds. Funds are accounting devices that the City uses to keep track of specific sources of funding and spending for particular purposes. Some funds are required by State law. The City establishes other funds to control and manage money for particular purposes or to show that it is properly using certain taxes and grants. The City maintains three fund categories (governmental, proprietary, and fiduciary) and various fund types within those categories: Governmental funds – Most of the City's basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental funds statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Because this information does not encompass the additional long-term focus of the government-wide statements, we provide additional information at the bottom of the governmental funds statement, or on the subsequent page, that explains the relationship (or differences) between them. The City maintains three fund types in the governmental fund category: general, special revenue, and capital. These funds are accounted for using the current financial resources measurement focus and modified accrual basis. Proprietary funds – Services for which the City charges internal and external customers a fee are generally reported in proprietary funds. Proprietary funds, like the government-wide statements, provide both long-and short-term financial information using the economic resources measurement focus and full accrual basis of accounting. In fact, the City's enterprise funds (one type of proprietary fund) are the same as its business-type activities, but provide more detail and additional information, such as cash flows. The City’s internal service funds are another type of proprietary fund used to account for activities charged to other funds on a cost reimbursement basis. Fiduciary funds – The City maintains two fund types in this category: agency and private purpose trust funds. They are used to account for resources held by the City but not necessarily available for its use, Such funds include resources held by the City on behalf the Ukiah Valley Sanitation District, the Russian River Watershed Association, and the Ukiah Redevelopment Successor Agency. The City accounts for these funds using the economic resources measurement focus and full accrual basis of accounting. 3. FINANCIAL ANALYSIS OF GOVERNMENT WIDE STATEMENTS The Summary of Net Position (Table 1) and Summary of Changes in Net Position (Table 2) present the City’s governmental and business activities in total for the years ending June 30, 2016 and June 30, 2015. The City accounts for general government functions such as police, fire, public works, community development and other community services in the General and Special Revenue funds categorized as Governmental Activities on Table 1. The City accounts for its utilities, including electric, water, wastewater and solid waste disposal as proprietary enterprise funds. The airport, parking district, golf course, conference center, street lighting system are also accounted for as enterprise funds. These funds are categorized as Business Type Activities on Table 1. Internal service funds are consolidated with either governmental or business-type activities for government-wide reporting. The City’s combined net position for the fiscal year ended June 30, 2016 was $102,103. The City’s net position for governmental activities increased 3% from $20,100 to $20,705. Business-type activities net position increased 3% from $78,861 to $81,398. The Net Position’s restricted amounts are restricted funding sources for specific purposes by various agreements or restricted uses of revenues. Unrestricted Governmental and Business-type net position included assets received for specific purposes and amounts accumulated for capital assets. For fiscal year 2016, the Electric Utility transferred $894 to the General Fund as payment in lieu of taxes that would be charged to an outside provider. This amount is calculated at 7% of electric revenues. Table 1 Summary of Net Position For the Fiscal Years Ended June 30, 2016 and 2015 (Full Accrual, in Thousands) Governmental Business-type Total Activities Activities 2016 2015 2016 2015 2016 2015 Assets: Current and other assets 17,964 20,062 54,321 56,270 72,285 76,332 Non current assets 36,349 34,500 132,433 132,182 168,782 166,682 Total assets 54,313 54,562 186,754 188,452 241,067 243,014 Deferred outflows of resources 4,385 2,951 1,679 639 6,064 3,590 Liabilities: Current liabilities 1,392 1,307 2,929 2,386 4,321 3,693 Non current liabilities 32,407 31,095 102,703 106,820 135,110 137,915 Total liabilities 33,799 32,402 105,632 109,206 139,431 141,608 Deferred inflows of resources 4,193 5,061 1,403 1,024 5,596 6,085 Net position: Capital Assets 29,089 27,625 54,757 50,088 83,846 77,713 Restricted Public Safety 218 704 218 704 Public Works 1,308 1,471 1,308 1,471 Housing & Community 10,659 10,678 10,659 10,678 Development Parks & Recreation 78 78 78 78 Debt Service - 2,072 2,072 2,072 2,072 NCPA projects - 355 468 355 468 Unrestricted (20,647) (20,456) 24,215 26,233 3,568 5,777 Total net position 20,705 20,100 81,399 78,861 102,104 98,961 (in Thousands) Note: FY 2015 assets changed to reflect Inventory and Land held for resale as a current asset and Internal Balances as non-current. In Table 2, Governmental revenues increased by $ 1,278 or 7% due primarily to increased operating grants and taxes, offset in part by decreases in capital grants and other revenues. Expenses decreased by $67 or less than 1% with the continuation of a cost allocation plan and the completion of projects. Business type revenues increased by $54 reflecting slightly lower charges for services due to lower electric and water usage with a higher interest received for money held by the funds. Expenses decreased $5,643 as the increase in the landfill closure liability was significantly less that FY2015 and both the Electric Utility and the Airport had decreases in expenses. Table 2 Statement of Change in Net Position For the Fiscal Years Ended June 30, 2016 and 2015 (Full Accrual, in Thousands) Governmental Business-type Total Activities Activities 2016 2015 2016 2015 2016 2015 Revenues: Program revenues: Charges for services 1,599 1,482 32,129 32,266 33,728 33,748 Operating grants and contributions 2,284 1,472 - - 2,284 1,472 Capital grants and contributions 860 889 10 25 870 914 Taxes 13,438 12,833 23 15 13,461 12,848 From other agencies - - - - - - Use of money 323 337 650 449 973 786 Misc. 3 216 - 3 3 219 Total revenues 18,507 17,229 32,812 32,758 51,319 49,987 Expenses: General government 143 773 - 143 773 Public safety 11,081 10,564 - 11,081 10,564 Public works 2,555 2,848 - 2,555 2,848 Housing & Community Development 892 348 - 892 348 Parks & Recreation 2,758 2,829 - 2,758 2,829 Electric - 15,779 16,140 15,779 16,140 Water - 3,930 3,783 3,930 3,783 Sewer - 8,621 8,230 8,621 8,230 Solid Waste Disposal Site (closed) - 389 5,951 389 5,951 Parking District - 163 138 163 138 Street Lighting - 315 258 315 258 Airport - 1,109 1,466 1,109 1,466 Conference Center - 393 377 393 377 Golf Course - 49 48 49 48 - - Total expenses 17,429 17,362 30,748 36,391 48,177 53,753 Change in Net Position before Transfers 1,078 (133) 2,064 (3,633) 3,142 (3,766) Net Transfers (473) - 473 - - - Change in Net Position 605 (133) 2,537 (3,633) 3,142 (3,766) Beginning Net Position 20,100 45,271 78,861 80,371 98,961 125,642 Restatement of Net Position (25,038) - 2,123 - (22,915) Ending Net Position 20,705 20,100 81,398 78,861 102,103 98,961 Governmental Activities Table 3 presents the cost of each of the City’s major governmental programs for FY 2015-16 and FY 2014-15. On a full accrual basis, including financing and capital costs as reported under GASB 34, the City’s total cost of governmental activities increased by less than 1%. The decreases in General Government, Public Works and Parks & Recreation were offset by increases in Public Safety and Community Development. Governmental expenses reflect a wide variety of projects and on-going activities, many of which are supported in part by program fees or other funding sources. Table 3 Cost of Governmental Activities For the Fiscal Years Ended June 30, 2016 and 2015 (Full Accrual, in Thousands) Total Cost to Provide Services Cost Percentage Change Change 2016 2015 General Government 143 773 (630) -82% Public Safety 11,081 10,564 517 5% Public Works 2,555 2,848 (293) -10% Community Development 892 348 543 156% Parks & Recreation 2,758 2,829 (72) -3% 17,429 17,362 67 0% The City’s PERS retirement benefits costs increased by $17 from 2015 to 2016 (to $3,463 from $3,446). General government services, functions that support Public Safety and all the other City services, include the City Council, City Clerk, City Treasurer, City Attorney, and the City Manager’s office as well as Finance, Administrative Services, Legal, Human Resources, Risk Management, and any other programs not specifically identified. The decrease of $630 is primarily due the net effect of pension activities by CalPERS for the year as well as the effects of the cost allocation of general government services to other government City services and Business-type activities. Public Safety is the largest component of governmental activities. The majority of public safety cost is for personnel. Police salaries and overtime increased by $348. Fire salaries and overtime decreased by $364 with the combining of the Fire Department with the Ukiah Valley Fire District. Parks and Recreation activities include a wide range of services to the public. Principal activities include maintaining all City parks and other landscaped areas, managing a modern museum, providing a year round calendar of youth and adult recreation programs, and operating a public swimming pool. The recreation programs are primarily self-funded through user fees and cooperative use agreements with the school systems and others. Community Development is primarily grant-funded projects. FY 2015-16 expenses included $575 for the Multi- Unit Residential Rehab program and $131 for the Visit Ukiah TOT program. Business Type Activities The City’s net position for business-type activities in continuing operations resulted in a $1,639 increase in net position or 5% of total revenues (before revenue from the use of money and property and transfers to other funds), compared with a $1701 increase, or 5% in 2015. The Solid Waste Disposal Site was closed in 2001 and its current position is presented separately so as to not distort the results of continuing operations presented on Table 4. Table 4 Statement of Operating Income and Expenses - Business Type Funds For the Fiscal Years Ended June 30, 2016 and 2015 (Full Accrual, in Thousands) Operating Operating Increase (decrease) Expenses Revenue From Operations 2016 2015 2016 2015 2016 2015 Electric 15,779 16,140 15,077 15,244 (702) -5% (896) -6% Water 3,930 3,783 5,447 5,579 1,517 28% 1,796 32% Sewer 8,621 8,230 9,668 9,264 1,047 11% 1,034 11% Street Lights 315 258 187 186 (128) -68% (72) -39% Airport 1,109 1,466 1,113 1,349 4 0% (117) -9% Parking 163 138 87 91 (76) -87% (47) -52% Golf Course 49 48 68 86 19 28% 38 44% Conference Center 393 377 351 342 (42) -12% (35) -10% Total 30,359 30,440 31,998 32,141 1,639 5% 1,701 5% Closed Program Solid Waste Disposal Site 389 5,951 132 126 (257) (5,825) Electricity purchase costs increased from $8,307 last year to $8,660 in FY 2015-16, while rates charged by the Utility were held constant. Purchase costs represented 55% of the Operating Expenses for FY 2015-16 up from 53% in FY 2014-15. The Electric Utility transferred $894 to the General Fund as a franchise fee that would be charged to an outside provider. This amount is calculated at 7% of the electric revenues. Annual water revenue was down 2% from the prior year. The non-major operations of Parking District, Street Lighting and Conference Center continue to be unable to fully fund operating expenses after depreciation. Management will continue its effort to improve marketing, restructure operations and reduce operating costs in relation to revenue. The Solid Waste Disposal Site was closed in 2001 and State regulations require the site to be monitored for 30 years with funds set aside for closure expenses, post-closure expenses, and contingencies. The City is working with the regulatory agencies to complete the formal closure of the site. 4. FINANCIAL ANALYSIS OF THE FUND STATEMENTS Governmental Funds The total increase in government revenues was $629 or 4% from $17,708 to $18,337. Increases in Sales and Use Tax ($847) and Transit Occupancy Tax ($168) reflecting improving growing economy, were offset in part by a decrease in the Property Tax ($198) and Franchise Fees ($129). The governmental expenses increased by $1,733 or 10% due primarily to increases in public safety and capital outlay costs. Table 5 Revenue, Expenditure and Fund Balance Summary: Governmental Funds For the Fiscal Years Ended June 30, 2016 and 2015 (Modified Accrual Basis, Stated in Thousands) General Other Total Fund Governmental Funds Governmental Funds 2016 2015 2016 2015 2016 2015 Revenues: Taxes and Franchise Fees 13,503 12,816 - 13,503 12,816 Licenses and permits 342 186 - 342 186 Fines, forfeitures & penalties 79 59 - 79 59 Interest, Rents and Concessions 162 219 174 113 336 332 Intergovernmental 165 183 2,746 2,866 2,911 3,049 Charges for services 714 883 41 150 755 1,033 Miscellaneous 360 148 51 85 411 233 Total revenues 15,325 14,494 3,012 3,214 18,337 17,708 Expenses Current General Government 392 839 151 13 542 852 Public Safety 10,829 9,754 268 475 11,097 10,229 Public Works 1,847 2,011 326 327 2,173 2,338 Housing & Community Development 148 203 722 125 870 328 Parks & Recreation 2,081 1,982 535 711 2,616 2,693 Capital Outlay 17 311 2,596 1,428 2,613 1,739 Total expenses 15,314 15,100 4,598 3,079 19,912 18,179 Excess(Deficiency)of revenues 11 (606) (1,586) 135 (1,575) (471) over Expenditures Other Financing Sources(Uses): Transfers In 345 712 595 637 940 1,349 Transfers Out (503) (461) (910) (917) (1,413) (1,378) Total Other Financing Sources (158) 251 (315) (280) (473) (29) Net Change in Fund Balances (147) (355) (1,901) (145) (2,048) (500) Fund Balances July 1 5,360 5,056 17,094 10,153 22,454 15,209 Prior Period Adjustment - 659 - 7,086 - 7,745 Fund Balances, June 30 5,213 5,360 15,193 17,094 20,406 22,454 The voter approved one-half percent sales tax went into effect in October 2005. In FY 2015-16, revenue from this tax increased by 4% from $2,466 to $2,564 reflecting continued economic improvement and the further establishment of Ukiah as an economic hub for the greater Mendocino County area, including parts of Lake, Humboldt, and Sonoma Counties. Other Governmental Funds Revenue classified as “Intergovernmental” include many Federal, State or Special District grants which vary dramatically from year to year. In FY 2013-14, the intergovernmental revenues were $2,017, which increased in FY 2014-15 to $2,866 but decreased to $2,746 in FY 2015-16. The largest components of this year’s grants were $1,351 for the Museum Prop 84 grant and $569 for CDBG. Current General Fund expenditures increased 1% from $15,100 to $15,314. General Fund Capital Outlay decreased from $311 in FY 2014-15 to $17 in FY 2015-16 as projects were completed. Other Governmental Funds saw a 49% increase in expenditures primarily in Capital Outlay largely associated with the Museum Grants. The net change in fund balance in the General Fund for FY 2015-16 was a decrease of $147, as compared to a decrease of $355 in FY 2014-15. The net change in fund balances for the Other Governmental Funds was a decrease of $1,901 in FY 2015-16 as compared to an increase of $6,941 in FY 2014-15 (which included a prior period adjustment). 5. GENERAL FUND BUDGETARY HIGHLIGHTS Actual General Fund revenues exceeded budget by $87, a variance of 1%. Total tax revenues exceeded the budget by 2%, with the sales and use tax over budget by $199 (3%), transient occupancy taxes exceeded budget by $177 or 17%, offset in part by Property Tax which was under the budgeted amount by $144 or 4%. Total General Fund expenditures finished the year over budget by $392 driven by a $981 or 9% increase in Public Safety spending. Table 6 Revenue, Expenditure and Changes in Fund Balance Summary-Budget to Actual-General Fund For the Fiscal Year Ended June 30, 2016 (Full Accrual, Stated in Thousands) Budgeted Variance Amounts Actual with Final Final Amounts Budget Revenues: Taxes 13,240 13,503 263 Licenses and permits 279 342 63 Fines, forfeitures & penalties 64 79 15 Interest, Rents and Concessions 197 162 (35) Intergovernmental 146 165 19 Charges for services 983 714 (269) Miscellaneous 329 360 31 Total revenues 15,238 15,325 87 Expenses Current General Government 447 392 (55) Public Safety 9,848 10,829 981 Public Works 2,114 1,847 (267) Housing & Community Development 371 148 (223) Parks & Recreation 2,125 2,081 (44) Capital Outlay 17 17 - Total expenses 14,922 15,314 392 Excess(Deficiency)of revenues 316 11 (305) over Expenditures Other Financing Sources(Uses): Transfers In 326 345 19 Transfers Out (411) (503) (92) Total Other Financing Sources (85) (158) (73) Net Change in Fund Balances 231 (147) (378) Fund Balances July 1 5,360 5,360 - Fund Balances, June 30 5,591 5,213 (378) 6. CASH MANAGEMENT The City contracts with Public Financial Management, Inc. (PFM), a specialist in municipal cash management, to direct its investments and maintain flexibility by utilizing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds to ensure maturities coincide with cash needs. Cash is invested in certain eligible securities, as constrained by law, and further limited by the City’s investment policy. The goals of the City’s investment policy are safety, liquidity, and yield. The City Council has appointed an Investment Oversight Committee, chaired by the elected City Treasurer, to direct and monitor the activities of PFM. 7. CAPITAL ASSETS The capital assets of the City are those assets that are used in performance of City functions including infrastructure assets. Capital Assets include equipment, buildings, land, park facilities, and roads. At June 30, 2016, the value of capital assets of the governmental activities, net of accumulated depreciation, totaled $28,804 and the value of capital assets of the business-type activities, net of accumulated depreciation, totaled $134,078. Depreciation on capital assets is recognized in the Government-Wide financial statements but not in the Fund financial statements. Additional information regarding the City’s capital assets can be found in the Notes to the Financial Statements. 8. CURRENT LIABILITIES AND LONG-TERM DEBT At year-end, current governmental liabilities are $1,392 and business-type liabilities are $2,929, which total $4,321 and are $628 higher than the prior year. The City has long-term governmental liabilities totaling $32,407 and long-term business-type liabilities of $102,703 for a total of $135,110, which is a decrease of $2,805. Additional information regarding the City’s outstanding debt can be found in the Notes to the Financial Statements. 9. NEXT YEAR’S BUDGET AND ECONOMIC FACTORS The Ukiah economy continues to move forward at a robust pace. Sales tax revenue continue to grow on an estimated average of 7 percent annually for the next 3 years. Property values also are expected to grow more than the 2 percent annually indexed inflationary factor prescribed by Prop 13 as home values increase and existing home sales trend upward. The Mendocino County region continued to lag behind the rest of the state in overall property value recovery, but it is headed in a positive direction. As the Ukiah economy grows, we see local businesses engage in more hiring and possible expansion. The success of these businesses is vital to the City’s fiscal health. The state’s impact on, and relationship with, local government will continue to impose barriers to economic growth within the City and in unincorporated Mendocino County as a result of realignment and more draconian regulatory requirements on local government and small business. The imposition by the State on local government to solve the state’s housing shortage crisis is one element that local governments – including Ukiah – will be forced to address with little meaningful help from Sacramento. Maintaining and growing revenue streams to the City to support service delivery and quality of life for our community remains a high priority for staff. Existing sources to the general fund – predominately sales and property taxes – are stable, and our estimates for the future will continue to be conservative. Revenue for enterprise activities will be evaluated throughout the 2016-17 fiscal year to ensure charges for services are fair, equitable, and sufficient to meet their operating and capital needs. Expenses, city-wide, related to personnel (primarily in health premium and pension costs) continue to increase at a substantial, though manageable, pace. We continue to look to find cost saving measures to help offset these expenses. The challenge remains providing the highest level and quality of service that the community needs, expects and deserves. Other Information Development: A proposed Costco store in the City’s Airport Business Park, is moving forward. All legal challenges were heard and successfully defended against. The City expects Costco to break ground on their new Ukiah store in the fall of 2017. A lawsuit was filed by the Ukiah Valley Sanitation District (District) on October 18, 2013 seeking more that $28 million in restitution for alleged overcharging of the District for services provided by the City pursuant to a series of agreements beginning in 1967. The City contests the allegations, and despite the best efforts of the City to come to mediation with the District, the lawsuit moves forward. Summary The City continues to manage a general fund with limited resources and provide high-quality services to the community without jeopardizing its financial well-being. Management takes a proactive approach to ensuring this. Ukiah’s revenue base is growing. That, along with a combination of prudent expenditure control and value added investments in infrastructure, will move this organization forwarded securely in the promise to provide the best quality public services to the citizenry of Ukiah that it deserves and can afford. 10. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City’s Finance Department at (707) 463-6220, Finance Department, City of Ukiah, 300 Seminary Ave, Ukiah, California 95482 or online: at http://www.cityofukiah.com. Basic Financial Statements Governmental activities business-type activities Direct expenses Indirect expenses Program revenues general revenues economic resources measurement focus accrual basis of accounting current financial resources measurement focus modified accrual basis of accounting available General Fund Electric Fund Water Fund Sewer Fund Disposal Site Fund Special Revenue Funds Capital Project Funds Internal Service Funds Private-Purpose Trust Funds - Agency Funds program revenues operating nonoperating Net investment in capital assets Restricted Unrestricted deferred outflows of resources Accounting and Financial Reporting for Pensions. deferred inflows of resources, Accounting and Financial Reporting for Pensions, unavailable revenue, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. Required Supplementary Information Optional Supplementary Information Nonmajor funds combining financial statements, budgetary schedules, combining internal service funds, and combining fiduciary funds. Statistical Section This part of the City of Ukiah’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government’s overall financial health. c bbdea Other Compliance Reports Government Auditing Standards Government Auditing Standards deficiency in internal control material weakness significant deficiency Government Auditing Standards Government Auditing Standards 2016-1 Accuracy and Timeliness of Accounting Records Finding: Statements on Auditing Standards No. 115, ”Communicating Internal Control Related Matters Identified in an Audit” Recommendation: 2016-1 Accuracy and Timeliness of Accounting Records - Continued Management’s Response: 2016-2 Fraud Prevention and Detection Program Finding: Recommendation: 2016-2 Fraud Prevention and Detection Program - Continued Management’s Response: 2016-3 Segregation of Incompatible Duties Over Cash Receipts for Community Services Condition: Criteria: Cause of Condition: Potential Effect of Condition: Recommendation: 2016-3 Segregation of Incompatible Duties Over Cash Receipts for Community Services - Continued Management’s Response: 2016-4 Cash Receipts System Condition: Criteria: Cause of Condition: Potential Effect of Condition: Recommendation: 2016-4 Cash Receipts System - Continued Management’s Response: 2016-5 Building Permits Condition: Criteria: Cause of Condition: Potential Effect of Condition: 2016-5 Building Permits - Continued Recommendation: Management’s Response: Agreed- upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIIIB of the California Constitution) Article XIIIB of the California Constitution. Government Auditing Standards, Qualitative Aspects of Accounting Practices Fair Value Measurement and Application. Difficulties Encountered in Performing the Audit Corrected and Uncorrected Misstatements Disagreements with Management Management Representations Management Consultations with Other Independent Accountants Other Audit Findings or Issues Findings and Recommendations: Government Auditing Standards” New Accounting Pronouncements Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ATTACHMENT 1 PROPOSED RESOLUTION Whereas President Trump’s draft budget would get rid of the $3 billion Community Development Block Grant program and also target Community Services Block Grant funding, which supports local anti-poverty programs such as Meals on Wheels for homebound seniors.[i] Whereas President Trump has proposed to move $54 billion from human and environmental spending at home and abroad to military spending[ii], bringing military spending to well over 60% of federal discretionary spending[iii], Whereas part of helping alleviate the refugee crisis should be ending, not escalating, wars that create refugees[iv], Whereas President Trump himself admits that the enormous military spending of the past 16 years has been disastrous and made us less safe, not safer[v], Whereas fractions of the proposed military budget could provide free, top-quality education from pre-school through college[vi], end hunger and starvation on earth[vii], convert the U.S. to clean energy[viii], provide clean drinking water everywhere it's needed on the planet[ix], build fast trains between all major U.S. cities[x], and double non-military U.S. foreign aid rather than cutting it[xi], Whereas even 121 retired U.S. generals have written a letter opposing cutting foreign aid[xii], Whereas a December 2014 Gallup poll of 65 nations found that the United States was far and away the country considered the largest threat to peace in the world[xiii], Whereas a United States responsible for providing clean drinking water, schools, medicine, and solar panels to others would be more secure and face far less hostility around the world, Whereas our environmental and human needs are desperate and urgent, Whereas the military is itself the greatest consumer of petroleum we have[xiv], Whereas economists at the University of Massachusetts at Amherst have documented that military spending is an economic drain rather than a jobs program[xv], Be it therefore resolved that the City Council urges the United States Congress to move our tax dollars in exactly the opposite direction proposed by the President, from militarism to human and environmental needs. [i] "The budget also would get rid of the $3 billion Community Development Block Grant program, which cities use to fix up distressed neighborhoods. The budget also targets ATTACHMENT 1 Community Services Block Grant funding, which supports local anti-poverty programs, such as Meals on Wheels for homebound seniors.”, NPR http://www.npr.org/2017/03/17/520467050/advocates-say-trump-budget-cuts-will- hurt-countrys-most-vulnerable [ii] "Trump to Seek $54 Billion Increase in Military Spending," The New York Times, February 27, 2017, https://www.nytimes.com/2017/02/27/us/politics/trump-budget- military.html?_r=0 [iii] This does not include another 6% for the discretionary portion of veterans' care. For a breakdown of discretionary spending in the 2015 budget from the National Priorities Project, see https://www.nationalpriorities.org/campaigns/military-spending-united- states [iv] "43 Million People Kicked Out of Their Homes," World Beyond War, http://worldbeyondwar.org/43-million-people-kicked-homes / "Europe's Refugee Crisis Was Made in America," The Nation, https://www.thenation.com/article/europes- refugee-crisis-was-made-in-america [v] On February 27, 2017, Trump said, "Almost 17 years of fighting in the Middle East . . . $6 trillion we've spent in the Middle East . . . and we're nowhere, actually if you think about it we're less than nowhere, the Middle East is far worse than it was 16, 17 years ago, there's not even a contest . . . we have a hornet's nest . . . ." http://www.realclearpolitics.com/video/2017/02/27/trump_we_spent_6_trillion _in_middle_east_and_we_are_less_than_nowhere_far_worse_than_16_years_ago.htm l [vi] "Free College: We Can Afford It," The Washington Post, May 1, 2012, https://www.washingtonpost.com/opinions/free-college-we-can-afford- it/2012/05/01/gIQAeFeltT_story.html?utm_term=.9cc6fea3d693 [vii] "The World Only Needs 30 Billion Dollars a Year to Eradicate the Scourge of Hunger," Food and Agriculture Organization of the United Nations, http://www.fao.org/newsroom/en/news/2008/1000853/index.html [viii] "Clean Energy Transition Is A $25 Trillion Free Lunch," Clean Technica, https://cleantechnica.com/2015/11/03/clean-energy-transition-is-a-25-trillion- free-lunch / See also: http://www.solutionaryrail.org [ix] "Clean Water for a Healthy World," UN Environment Program, http://www.unwater.org/wwd10/downloads/WWD2010_LOWRES_BROCHUR E_EN.pdf [x] "Cost of High Speed Rail in China One Third Lower than in Other Countries," The World Bank, http://www.worldbank.org/en/news/press-release/2014/07/10/cost-of-high- speed-rail-in-china-one-third-lower-than-in-other-countries ATTACHMENT 1 [xi] Non-military U.S. foreign aid is approximately $25 billion, meaning that President Trump would need to cut it by over 200% to find the $54 billion he proposes to add to military spending [xii] Letter to Congressional leaders, February 27, 2017, http://www.usglc.org/downloads/2017/02/FY18_International_Affairs_Budget_Hou se_Senate.pdf [xiii] See http://www.wingia.com/en/services/about_the_end_of_year_survey/global_results/7 /33 [xiv] "Fight Climate Change, Not Wars," Naomi Klein, http://www.naomiklein.org/articles/2009/12/fight-climate-change-not-wars [xv] "The U.S. Employment Effects of Military and Domestic Spending Priorities: 2011 Update," Political Economy Research Institute, https://www.peri.umass.edu/publication/item/449-the-u-s-employment-effects- of-military-and-domestic-spending-priorities-2011-update Page 2 of 3 Discussion: Reclassification of the Senior Management Analyst Position During the Fiscal Year 17/18 budget discussions, the City Manager provided a brief overview regarding emerging management and service gaps. As part of the discussion, the Council allocated funds in the current fiscal year budget for the reclassification of the Senior Management Analyst position to a director level position, but requested the item be brought back for separate consideration. As part of the of the City Manager’s ongoing evaluation of the City Manager’s Office, it has become evident that the organization would significantly benefit from an executive level position like that of the Assistant City Manager that was vacated with the promotion of Mr. Sangiacomo to the City Manager position. Executive leadership from the City Manager’s Office currently lacks the operational and backup coverage necessary given the organization’s size and diversity of services. Additionally, the City Manager’s Office lacks the duplicity needed for signatory authority on critical and noncritical process items from banking to travel requests. In order to maintain the appropriate checks and balances and separation of authority from departmental operations, best practice calls for oversight from the City Manager’s Office. Current coverage is only one person deep, whereas in the past, the City Manager served as the primary and the Assistant City Manager served in a backup role. Furthermore, operational oversight and accountability was shared among the two executive positions. Given the current pace and scope of operations, programs and projects, it is simply not possible to sustain or improve operational or policy objectives with current staffing levels. In order to improve the coverage and efficiency of the City Manager’s Office, staff is requesting authorization to move forward with the reclassification of the Senior Management Analyst position to a Deputy City Manager position. Given that the reclassification was factored into the current budget, there is no increased fiscal impact. A draft job description is attached for reference (Attachment #1). Communication Manager Communication and engagement is a foundational necessity of governmental and business operations. Currently, the City has a piecemeal approach to these functions with each department expending varying efforts with mixed results in quantity and quality. In addition, the City’s budgeting of these functions is disjointed and not well planned from an agency-wide effort. While the City has seen marked improvements over the past two years due to some added oversight provided through the City Manager’s Office, staff recommends the addition of a Communication Manager that can provide expertise and dedicated management of the City’s communication and engagement efforts. Communication methods have changed substantially and there is a need for immediacy when getting messages out to the public. The public gets information from multiple sources now, including social media and other online outlets. It is imperative for the City not just to share information on those sites but also to monitor them and be responsive to questions and concerns. It is no longer adequate to just send a press release to the newspaper and radio. The Communications Manager is recommended at a full-time position, rather than a contracted position, because of the need for a comprehensive understanding of the many facets of the City. It’s expected the position would assist nearly every department in the City. The City’s current communication methods tend to be fragmented and lacking consistency, due to the number of employees handling them. Furthermore, the position would help ensure that messaging throughout the organization and to the public is clear, professional, consistent, and timely. A draft job description is attached for review (Attachment #2). Note, the position would be responsible for a wide breadth of communication and engagement actives internal and external to the organization Page 3 of 3 including legislative activities. In addition, the position would assist with the final production of agenda summary reports, which will significantly relieve the City Manager from biweekly editing efforts. Recommendation: Staff recommends Council authorize moving forward with the reclassification of the Senior Management Analysist in the City Manager’s office to a Deputy City Manager position and the addition of a Communication Manager position. FISCAL IMPACT*: Position Cost for Communication Manager New Appropriation Source of Funds (Title & No.) Account Number Budget Amendment Required Fully Loaded Cost est. $136,000 Salary Range: $6,137 - $7,459 General, Water, Sewer, Electric Apportioned in future years per Council authorization Yes No * For the purpose of evaluating fiscal impacts, costs are calculated at the top step within the range and are fully loaded including wages and benefits. There are no fiscal impacts associated with this current Fiscal Year due to anticipated cost savings in the City Manager’s Budget from the delayed reclassification the Senior Management Analyst. There is an anticipated no net increase to the General Fund due to future budget saving from the cut of contractual expenses with the Community Development Commission and revenue from a fingerprinting program administered by the Community Services Department. 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Phone# (707) 463-6200 Fax# (707) 463-6204 Web Address: www.cityofukiah.com Attachment #1 JOB DESCRIPTION DEPUTY CITY MANAGER DEFINITION: Under general direction of the City Manager, to plan supervise, and initiate programs of an administrative nature; assist the City Manager on special projects and policy formulation; demonstrate a variety of professional, technical, analytical, and administrative skills in providing staff assistance to the City Manager; supervise departments as assigned by City Manager; and perform other related duties as assigned. EXAMPLES OF DUTIES: (These examples are intended only as illustrations of the various types of work performed. The examples of work performed are neither restricted to nor all-encompassing of the duties to be performed under this job title.) (E=Essential Duty; M=Major Portion of Time) Provides responsible and professional staff assistance to the City Manager, including participating in the development, planning, and implementation of City goals, objectives, policies, and priorities, as assigned. (E-M) Manages, plans, supervises, and coordinates a comprehensive program of redevelopment, housing and economic development activities, including planning, community involvement/acceptance, and implementation. (E-M) Acts as the City Manager’s liaison with various community, business and special stakeholder groups including the Ukiah Main Street Program, Chamber of Commerce, and Visit Ukiah. Facilitates, leads, and/or participates in meetings and committees; represents the City Manager’s office and/or the City at meetings and conferences; serves as liaison between departments, external organizations, the general public, and other agencies. (E-M) Identifies problems, conducts research, analyzes data, and makes recommendations on a variety of administrative, fiscal, and operational issues. (E-M) Assists with the negotiation and oversight of leases and land transactions (E). Manages the City’s Visit Ukiah program and other community relation activities. (E) Assists with the preparation and review of the City Council agenda and staff reports. (E) Organizes, coordinates, and implements various assigned programs and procedures requiring intradepartmental cooperation. Prepares and presents staff presentations to the City Council. (E) Prepares/participates and administers budgets for assigned departments; monitors revenues and expenditures. Serves as a project manager in negotiating, implementing, and administering the City’s participation in various joint operating ventures and contracts; manages contracts with external service providers. Responds to questions and comments from the public in a courteous and timely manner. Acts as the City Manager in his/her absence. (E) Works flexible hours. (E) Performs other duties as assigned. 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Phone# (707) 463-6200 Fax# (707) 463-6204 Web Address: www.cityofukiah.com QUALIFICATIONS Knowledge of: Principles, practices, and techniques of municipal administration; Principles and practices of budget development and administration; Principles and practices of economic community development, redevelopment, and housing; City operations, rules, policies, and methods; Principles and practices of public relations and public information, program development and administrations, and public/private negotiations; Organization and management practices as applied to the analysis and evaluation of programs, policies, and operational needs; Research techniques and methods of report presentation; Principals of analysis concepts and computer operation; Principals of supervision, training, and performance evaluation; Applicable Federal, State, and local laws, regulations, ordinances, and policies; Ability to: Communicate well with all sectors of the community and make effective public presentations; Effectively represent the City with individual citizens, community groups, and other governmental agencies; Establish and maintain effective and cooperative working relationships with those contacted in the course of work; Communicate and present ideas clearly and concisely, orally and in writing; Properly interpret and make decisions in accordance with laws, regulations, and policies; Evaluate extensive data effectively and objectively, and prepare oral and written reports and recommendations clearly, logically, and concisely; Analyze administrative issues and situations and develop effective resolutions; Comprehend various aspects of local governmental operations; Work successfully with a wide range of people, including members of the community, City staff, elected officials, and outside public agencies and private companies. Use and operate computer system which requires manual dexterity. EXPERIENCE At least five years of increasingly responsible experience in municipal administration. EDUCATION Education equivalent to a Bachelor's Degree in public or business administration from an accredited college, or closely related field. SPECIAL REQUIREMENT Possession of a valid Class C California Driver's License. Attachment #2 Communications Manager The Communications Manager reports directly to the City Manager and works closely with the leadership team, City Council,community members and staff throughout the organization and plays a critical role in coordinating the pro active development,production,and distribution of City information to the public.This position supports the communication and engagement needs of the City and overall works to keep the public,providers, media,community partners,other agencies,employees and other City stakeholders informed about valuable City information such as available resources,programs,events and projects. Important and Essential Duties Develop and ensure the success of a city wide strategic communications plan that communicates to employees, residents,business and regional partners. Advise and coordinate with staff in departments on strategic communication and engagement issues,including ways the City can be positioned in the news media,social media,the community,other government agencies and City partners. Develop and implement marketing and branding plans for department specific services,programs,projects,and events. Writing:Assist in research,writing,editing,and proofing social media,website and other online and print content. Graphic Design:Create or oversee and support development of print and online materials,which may include reports,brochures,flyers,newsletters,posters,PowerPoint presentations,training materials,signage,ads, displays,fact sheets and other promotional efforts. Website:Oversee development and/or create,edit,publish,monitor and track content for public and Intranet websites,helping to keep the sites relevant and up to date and visitor engaged. Social Media:Assist with overseeing the creation,editing,publishing and monitoring of social media content for Facebook,Twitter,and You Tube and assist in recording and/or posting videos on social media platforms. Research and recommend new social media websites,as needed. Outreach:Support and coordinate community and program outreach strategies to improve public awareness of and involvement in City services,programs,plans and projects. Legislative Support:Assist with the cultivation and management of relationships with State legislators,research various legislative issues,and prepare correspondence for various related matters. News Media:Support press and media relations,including drafting and editing of news releases,media advisories,talking points,maintaining a current press list and media materials,and coordinating media training. Production:Coordinate production schedules,track timelines,oversee photo and video library and support ongoing relationship with designers,printers,photographers,and videographers. Inter/intra departmental Communication:Assist with approaches to ensure strong communication between departments and among team members throughout the agency with a focus on developing/maintaining open and clear channels for collaboration and information exchange. General Communication Support:Update guide and other process and policy manuals,research,compile and organize communication materials,help maintain and track contracts,accounts,invoicing,inventory,and filing system.Review and track print and online communications to ensure proper use and compliance of branding components of City policies and protocol. Customer Service:Evaluate and report on customer service satisfaction including the development of surveys and feedback strategies. Review and Edit:Provide peer review support in the development of agenda summary reports,press releases, grants,and other department specific documents. Job related Qualifications Ability to: Work proficiently with Microsoft Office,including effective use of Excel and PowerPoint Write clearly and concisely for a variety of audiences Communicate effectively orally Prepare public presentations for a variety of audiences including the community,service organizations and volunteers Organize events,activities,and self motivate Make group presentations Comprehend and follow oral and written instructions Provide leadership to appropriate staff Implement program plans Function independently with minimal supervision Effectively manage project assignments Operate within budget allocations and to meet deadlines The ideal candidate will bring a high level of credibility based on strong leadership skills,proven performance in promotion and engagement,and a history of positive engagement with elected officials and/or boards, employees,community groups,businesses,and peers. This position requires a candid and open communicator,who is politically astute but operates in an apolitical and objective fashion. Other key attributes include the ability to keep abreast of current and future organizational programs and goals; create and foster strong partnerships with the media,elected officials,residents,business community members, and City employees. The ideal candidate will have the ability to problem solve and make sound decisions;the ability to operate quickly in a fast paced environment;the ability to effectively resolve conflict situations;and a solid background in the strategic development and implementation of organizational marketing and/or communication programs. The ideal candidate will also possess the highest level of ethics and integrity,be non bureaucratic,and have a record of performance that demonstrates vision,innovation,and creativity.