HomeMy WebLinkAbout2017-03-01 Packet CITY OF UKIAH
CITY COUNCIL AGENDA
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
March 1, 2017
6:00 p.m.
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS
a. Proclamation of the Ukiah City Council Recognizing March as Women's History Month.
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 February 15, 2017, a Regular Meeting.
6. RIGHT TO APPEAL DECISION
Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court.
The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days(90)
the time within which the decision of the City Boards and Agencies may be judicially challenged.
7. CONSENT CALENDAR
The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City
Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event
the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the
Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission
recommendations.
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)
Page 1 of 3
Ukiah City Council Agenda for March 1, 2017, Continued
12. UNFINISHED BUSINESS
a. Discuss and Provide Direction for the Establishment of an Oversite Committee to Review
Measure P Expenditures.
b. Update on the Sustainable Groundwater Management Act (SGMA) and Provide Direction on
Groundwater Sustainability Agency Governance.
c. Authorize the Director of Public Works/City Engineer to Pay the Remainder of Fines to the
State Water Resources Control Board for Administrative Civil Liability Order in the Amount of
$39,000 for the Wastewater Treatment Plant.
13. NEW BUSINESS
a. Approve Reclassification and Title Changes for Water and Wastewater Positions and Approve
the Addition of a Mechanic Position, Operator in Training Position, and Deletion of a Senior
Wastewater Treatment Plant Operator/Mechanic.
b. Receive an Overview of the Updated Electric Utility Public Benefit Programs, Consider Options
and Provide Direction (EUD).
c. Discussion and Possible Letter of Support for Senate Bill 2 — Building Homes and Jobs Act.
14. CLOSED SESSION — Closed Session may be held at any time during the meeting.
a. Conference with Legal Counsel —Anticipated Litigation
(Cal. Gov't Code Section 54956.9(d)(2))
Significant exposure to litigation (1 case) (Coastside Settlement)
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. SOUK- 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
Page 2 of 3
Ukiah City Council Agenda for March 1, 2017, Continued
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 24th day of February, 2017.
Kristine Lawler, City Clerk
Page 3 of 3
ITEM NO.: 3a
MEETING DATE: March 1, 2017
/1
iltj f
I kiati AGENDA SUMMARY REPORT
SUBJECT: PROCLAMATION OF THE UKIAH CITY COUNCIL RECOGNIZING MARCH AS WOMEN'S
HISTORY MONTH
Summary: Council to issue a proclamation recognizing March as Women's History Month.
Background and Discussion: The City celebrates and honors women and their contribution to our
community annually during the month of March. In March of 1983, the first Women's History Gala
Celebration in Mendocino County was held at the Anderson Valley High School. Thereafter, each year it
has been held in the City of Ukiah, the seat of Mendocino County, with the March 5th Celebration marking
its 34th anniversary.
The public is invited to attend the 34th Annual Women's History Gala Celebration at 12:30 p.m., at the
Saturday Afternoon Clubhouse. Women to be honored who embody this year's theme, "Honoring
Trailblazing Women in Business" are Maureen Mulheren with Connect Insurance; Barbara Newell, PhD,
with Pennofin Company; and Erika McKenzie-Chapter, Sarah Bennett, and Star White with Pennyroyal
Farm.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title & No.) Required Purchase Order
No.
N/A N/A N/A Yes ❑ No ® N/A
RECOMMENDED ACTION(S): Issue a proclamation of the Ukiah City Council recognizing March as
Women's History Month.
ALTERNATIVES: N/A
Citizens advised: N/A
Requested by: Jim O. Brown, Mayor.
Contact/Prepared by: Ashley Cocco, Deputy City Clerk.
Coordinated with: Katarzyna Rolzinski; Jim O. Brown, Mayor; and Kristine Lawler, City Clerk.
Presenter: Jim O. Brown, Mayor.
Attachment: 1. Proclamation
COUNCIL ACTION DATE: : ❑ Approved ❑ Continued to ❑ Other
RECORDS APPROVED: ❑ Agreement: ❑ Resolution: ❑ Ordinance:
Note:Please write Agreement Noin upper right corner of agreement when drafted.
Approved:
;..e Sa gi .umo„ City Manager
ATTACHMENT 1
PRO CPROCLAMATION
MARCH: WOMEN'S HISTORY MONTH
34th ANNUAL WOMEN'S HISTORY GALA CELEBRATION
WHEREAS, in March 1983 the first Women's History Gala Celebration in Mendocino
County was held in the Anderson Valley High School. Thereafter, each year it has been held in
the City of Ukiah, the seat of Mendocino County, with the March 5th Celebration marking its
34th anniversary; and
WHEREAS, the Mendocino Women's Political Coalition (MWPC) presents the
Women's History Gala Celebration with AAUW-Ukiah, Ukiah Saturday Afternoon Club, and
the Cloud Forest Institute; and
WHEREAS, the aforementioned women's organizations continue to work to increase
and acknowledge the roles of women at all levels of community and public service, and to
become knowledgeable about issues that affect their equality and to foster networks that extend
and expand the creative, social, and political strength of women; and
WHEREAS, promoting and celebrating the equality and achievements of all women
continue to be at the core of this 2017 celebration of Women's History, and the tradition of the
annual Women's History Gala Celebration is to recognize and honor particular women who
exemplify each year's designated theme for contributions in their communities through their
fields of work; and
WHEREAS, on Sunday, March 5, 2017, the public is invited to attend the 34th Annual
Women's History Gala Celebration at 12:30 p.m., at the Saturday Afternoon Clubhouse. Women
to be honored who embody this year's theme, "Honoring Trailblazing Women in Business" are
Maureen Mulheren with Connect Insurance; Barbara Newell, PhD, with Pennofin Company; and
Erika McKenzie-Chapter, Sarah Bennett, and Star White with Pennyroyal Farm.
THEREFORE, I, Jim O. Brown, Mayor and my fellow Ukiah City Councilmembers:
Kevin Doble, Maureen Mulheren, Stephen G. Scalmanini, and Doug Crane do hereby join other
communities in the nation in proclaiming the month of March to be Women's History Month and
to recognize and celebrate the 34th Anniversary of the Women's History Gala Celebration on
March 5, 2017.
Signed and sealed, this h'day of.Illarch, in the year Two Thousand Seventeen.
Jim O. Brown, .Mayor
ITEM NO.: 3b
MEETING DATE: March 1, 2017
.:LtTj of 72kiorJL
AGENDA SUMMARY REPORT
SUBJECT: 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
Summary: 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.
The City of Ukiah continues to request that the District consider a change in process outside of litigation
to resolve the dispute and restore a working relationship, recognizing there is simply too much at stake
for the ratepayers, system operations, and the community.
Background (Chronologic History of Recent Correspondence & Activity): In September 2013, the Ukiah
Valley Sanitation District (UVSD) filed a claim for damages with the City, and one month later filed its
lawsuit. In its lawsuit, the District seeks damages for alleged breaches of the various agreements
between the City and the District related to the operation of the sanitary sewer system, starting with the
original 1955 agreement.
The lawsuit will have significant adverse financial impacts to both agencies, as well as the ratepayers and
the community, and the City is seeking an alternative to litigation to resolve this dispute. Attached is the
letter that was sent on September 14, 2016, by the City Council to the District Board, formally requesting
that the District drop the lawsuit with terms that would allow the District to refile if agreement cannot be
reached (UVSD Litigation Update Box File #1), as well as an informational piece that details the
background/impacts (UVSD Litigation Update Box File #2).
On September 21, 2016, the City Council received a presentation (UVSD Litigation Update Box File #3)
from staff that explained the relationship between the two agencies and provided responses to some of
the most frequently asked questions about this matter to better inform the public about the consequences
of the litigation. This information along with a video link to the September 21st presentation/discussion
are accessible at hftp://www.citvofukiah.com/projects/uvsd-vs-cou/.
The UVSD submitted a letter dated September 20, 2016, (UVSD Litigation Update Box File #4) which
inaccurately asserts that the City's request is for the District to drop the lawsuit until after the recycled
water project funding is received. In fact, the City's request is for the District to dismiss its lawsuit and
Continued on Page 2
........RECOMMENDED ACTION(S):
._.�_......___...... .�_._..
Receive status report. If desired, discuss and provide direction to Staff
and/or consider any actions) related to the matter.
ALTERNATIVES: N/A
Citizens advised: N/A
Requested by: City Council (Councilmembers Crane and Doble)
Prepared by: Sage Sangiacomo, City Manager and Sean White, Director of Water and Sewer.
Coordinated with: David Rapport, City Attorney and Tim Eriksen, Director of Public Works.
Presenter: Sage Sangiacomo, City Manager
Attachments: UVSD Litigation Update Box Files located at:
https://cityofuki h.box.com/v/UVSDIitirationUrdates
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.
Approved:
ge anu como, City Manager
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
(Ntps://ciNofukiah.box.corn/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.
Discussion: The impacts of the District's litigation continues to negatively impact the ratepayers, system
operations, and the community. At the March 1st City Council meeting, Staff will provide the latest status
Page 5 of 5
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 unresponsive to the City's continued
requests for a joint meeting on the FY 16-17 Budget and recycled water project.
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.
Agenda Item 5a
CITY OF UKIAH
CITY COUNCIL MINUTES
Regular Meeting
CIVIC CENTER COUNCIL CHAMBERS
300 Seminary Avenue
Ukiah, CA 95482
February 15, 2017
6:00 p.m.
1. ROLL CALL
2. PLEDGE OF ALLEGIANCE
Ukiah City Council met at a Regular Meeting on February 15, 2017, having been legally noticed on
February 10, 2017. Mayor Brown called the meeting to order at 6:00 p.m. Roll was taken with the
following Councilmembers Present: Stephen G. Scalmanini, Douglas F. Crane, Maureen
Mulheren, Kevin Doble, and Jim O. Brown. Councilmembers Absent: None. Staff Present:
Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Ashley Cocco, Deputy City
Clerk.
MAYOR BROWN PRESIDING.
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.
Presenters: Sage Sangiacomo, City Manager; David Rapport, City Attorney; and Dan Buffalo,
Director of Finance.
Presentation was received.
4. PETITIONS AND COMMUNICATIONS
5. APPROVAL OF MINUTES
a. Minutes of February 1, 2017, a Regular Meeting.
Motion/Second: Mulheren/Doble to approve Minutes of February 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 January - Finance.
b. Adopt an Ordinance (1175) Amending the Zoning Map Changing the Zoning on a Parcel
Located at 350 N. Orchard Avenue— Planning and Community Development.
ORDINANCE NO. 1175
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING THE
OFFICIAL ZONING MAP FOR THE CITY OF UKIAH, CALIFORNIA AND ESTABLISHING
City Council Minutes for I::: ruaiy .1 5, 2017, Continued:
THE COMMERCIAL ZONING (C1)AT 350 N. ORCHARD AVENUE APN 002-370-270
c. Award Contract (COU No. 1617-166) to Provide and Install Electric Service Center Warehouse
Shelving and Pallet Racking System to Next Level Warehouse Solutions, Inc., in the Amount of
$47,429.51 (EUD)-Electric Utility.
d. Award Purchase of a Replacement Sixteen-Foot Hydraulic Tilt Flatbed Truck, 2017 Peterbilt
Model 337 with Scelzi Brand Bed, to National Auto Fleet Group, Watsonville, California in the
Amount of$126,286.14 (EUD)- Electric Utility.
c. Authorize the City Manager to Negotiate and Exccutc a Management Agreement (COU No.
021511 A6) for the Alex Rorabaugh Recreation Center Community Services. - Pulled by
Councilmember Crane and moved to Agenda Item 13d.
■ ._ . . ■
Pulled by Mayor Brown and moved to Agenda Item 13e.
g. Adoption of Resolution (2017-13) Authorizing the City Manager to Apply for a CalRecycle Tire-
Derived Aggregate Grant and Execute All Related Documents- Public Works.
. -- ' -- - -_ _ •- -- - - - -- -- ••- • -- -. - Pulled
by Councilmember Crane and moved to Agenda Item 13f.
-- - - - --- - - -- - - - -- •• -. - Pulled by
Councilmember Crane and moved to Agenda Item 13g.
j. Award Purchase of a Replacement Electric Utility Technician Truck with a 2017 Ford F-350-XL
Super Cab and Chassis with Scelzi Service Body to Ukiah Ford in the Amount of $52,678.41
(EUD)- Electric Utility.
Motion/Second: Crane/Mulheren to approve Consent Calendar Items 7a-d, g, and j. 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
Presenters: Jamie White, Cheryl Thompson, Mike Pallesen, and (unidentified woman).
9. COUNCIL REPORTS
10. CITY MANAGER/CITY CLERK REPORTS
Presenters: Sage Sangiacomo, City Manager and Shannon Riley, Senior Management Analyst.
11. PUBLIC HEARINGS (6:15 PM)
12. UNFINISHED BUSINESS
a. Presentation Regarding Feasibility Analysis for a Hotel in Downtown Ukiah -
Administration.
Presenters: Shannon Riley, Senior Management Analyst and Chris Kraus, Managing Director
CBRE Hotels.
Page 2 of 6
City Council Minutes s cr I ebr aiy .1 5, 2017, Continued.
Public Comment: Steely Inoue, Rick Hansen, Don Crawford, Tom Liden, and Cynthia Coale.
Motion/Second: Doble/Crane to request staff to investigate and bring back options for the Request
for Proposal (RFP) process. Motion carried by the following roll call votes: AYES: Scalmanini,
Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
b. Review of Draft Performance Agreement Between the City of Ukiah and the Economic
Development Financing Corporation (EDFC) For Fiscal Year 2016-17—Administration.
Presenter: Shannon Riley, Senior Management Analyst.
Public Comment: John Kuhry.
Motion/Second: Crane/Scalmanini to authorize the City Manager to negotiate and execute the
agreement (COU No. 1516-132-A2) between Economic Development and Financing Corporation
(EDFC) and the City of Ukiah. Motion carried by the following roll call votes: AYES: Scalmanini,
Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
c. Possible Adoption of a Marijuana Dispensary Ordinance Amending Chapter 8 in Division
6; Table 3 in Section 9223.1 of Article 18, Chapter 2 in Division 9; and Section 9254 in
Article 19, Chapter 2 in Division 9 of the Ukiah City Code, Entitled "Medical Marijuana
Dispensaries" —Planning and Community Development.
Presenters: Kevin Thompson, Interim Planning Director and Darcy Vaughn, Assistant City
Attorney.
Public Comment: Robert Werra MD, Steely Inoue, Don Crawford, and Barbara McClain.
ORDINANCE NO. 1176
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING CHAPTER 8 IN
DIVISION 6; TABLE 3 IN SECTION 9223.1 OF ARTICLE 18, CHAPTER 2 IN DIVISION 9; AND
SECTION 9254 IN ARTICLE 19, CHAPTER 2 IN DIVISION 9 OF THE UKIAH CITY CODE,
ENTITLED "MEDICAL MARIJUANA DISPENSARIES"
Motion/Second: Mulheren/Doble to adopt the Marijuana Dispensary Ordinance (1176) amending
Chapter 8 in Division 6; Table 3 in Section 9223.1 of Article 18, Chapter 2 in Division 9; and
Section 9254 in Article 19, Chapter 2 in Division 9 of the Ukiah City Code, entitled "Medical
Marijuana Dispensaries". Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
RECESS 8:00— 8:06 P.M.
d. Authorize the City Manager to Negotiate and Execute an Agreement with the Sonoma
County Water Agency in the Amount of $34,000 and Approval of a Contribution to the
Inland Water and Power Commission in the Amount of $4,400 Both of Which are for
Joint-Funded Water Planning Studies— Public Works.
Presenters: Sean White, Water and Sewer Director and Jarod Thiele, Public Works Management
Analyst.
Motion/Second: Crane/Mulheren to authorize the City Manager to Negotiate and Execute an
agreement (COU No. 1617-167) with the Sonoma County Water Agency in the amount of $34,000
Page 3 of 6
City Council Minutes s cr I::: ruaiy .1 5, 2017, Continued.
and approval of a contribution to the Inland Water and Power Commission in the amount of $4,400
both of which are for Joint-Funded Water Planning Studies. Motion carried by the following roll call
votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None.
ABSTAIN: None.
e. Approve Plans and Specifications for Talmage Road Interchange Project, Specification
No. 16-05, Direct Staff to Advertise for Bids, and Direct Staff to Make Changes to the
Specifications Necessary to Obtain a Caltrans Encroachment Permit—Public Works.
Presenter: Tim Eriksen, Director of Public Works /City Engineer.
Motion/Second: Crane/Doble to approve plans and specifications for the Talmage Road
Interchange Project, Specification No. 16-05 and direct staff to advertise for bids and to authorize
the City Engineer to make changes to the specifications and plans necessary to obtain a Caltrans
encroachment permit. Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
f. The Ukiah City Council to Adopt the Resolution and Exhibit A Superseding Resolution
No. 2016-66, Proposed Electric Rate Adjustments (EUD) —Electric Utility.
Presenter: Mel Grandi, Electric Utility Director.
Motion/Second: Crane/Mulheren to adopt the Resolution (2017-15) and Exhibit A superseding
Resolution No. 2016-66, proposed Electric Rate Adjustments (EUD). Motion carried by the
following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None.
ABSENT: None. ABSTAIN: None.
13. NEW BUSINESS
a. Approval of Amendment #1 to the Contract with Larry Walker and Associates for
Engineering Services and Technical Assistance Related to the City's National Pollutant
Discharge Elimination System (NPDES) Permit Renewal for the Wastewater Treatment
Plant in the Amount of$54,710 —Public Works.
Presenters: Sean White, Director of Water and Sewer and Jarod Thiele, Public Works
Management Analyst.
Motion/Second: Crane/Mulheren to approve amendment #1 to the contract (COU No. 1617-146-
Al) with Larry Walker and Associates for engineering services and technical assistance related to
the City's National Pollutant Discharge Elimination System (NPDES) permit renewal for the
Wastewater Treatment Plant in the amount of $54,710. Motion carried by the following roll call
votes: AYES: Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None.
ABSTAIN: None.
b. Notification of Acquisition of Emergency Boiler Rental and Installation from Bay City
Boiler and Engineering, Inc. in the Amount of$22,925, Authorization of Continued Boiler
Rental in the Amount of $3,500 Per Month Plus Any Applicable Taxes, Approval of
Purchase of Two New Boilers in the Amount of $99,726.94 from Rite Boiler for the
Digesters at the Wastewater Treatment Plant and Approval of Corresponding Budget
Amendment— Public Works.
Presenters: Sean White, Director of Water and Sewer and Jarod Thiele, Public Works
Management Analyst.
Motion/Second: Crane/Doble to authorize the continued boiler rental in the amount of $3,500 per
Page 4 of 6
City Council Minutes for I ebr aiy .1 5, 2017, Continued.
month plus any applicable taxes, approve the purchase of two new boilers in the amount of
$99,726.94 from Rite Boiler for the digesters at the Wastewater Treatment Plant and approve the
corresponding budget amendment. Motion carried by the following roll call votes: AYES:
Scalmanini, Crane, Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
c. Consideration and Possible Approval of Debt Management Policy— Finance.
Presenters: Dan Buffalo, Finance Director and Daphine Harris, Management Analyst — Finance
Department.
Motion/Second: Crane/Mulheren to approve resolution (2017-16) approving the Debt
Management Policy. Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
(Previously Agenda Item 7e)
d. Authorize the City Manager to Negotiate and Execute a Management Agreement for the
Alex Rorabaugh Recreation Center— Community Services.
Presenter: Tami Bartolomei, Community Services Director and Kerry Randall, Facilities
Administrator.
Motion/Second: Crane/Scalmanini to authorize the City Manager to negotiate and execute a
Memorandum of Agreement (COU No. 021511-A6) for the Alex Rorabaugh Recreation Center with
the Ukiah Valley Cultural and Recreation Center and direct staff to schedule a Community Services
Work Study Session. Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
(Previously Agenda Item 7f)
e. Authorize Award Purchase of a Replacement Aerial Bucket Truck with a 2017 Altec
Model AM60E to Altec Industries, Inc., Dixon, California in the Amount of $314,264.67
(EUD)— Electric Utility
Presenter: Mel Grandi, Electric Utility Director and Tim Santo, Dave Kersh,
Motion/Second: Brown/Crane to award purchase of a replacement Aerial Bucket Truck with a
2017 Altec Model AM60E to Altec Industries, Inc., Dixon, California in the amount of 314,264.67.
Motion carried by the following roll call votes: AYES: Scalmanini, Crane, Mulheren, Doble, and
Brown. NOES: None. ABSENT: None. ABSTAIN: None.
(Previously Agenda Item 7h)
f. Request Approval to Reclassify the Power Engineer Job Series— Electric Utility.
Presenter: Sheri Mannion, Director of Human Resources/Risk Management.
Motion/Second: Crane/Doble to approve the recommended proposal to reclassify the Power
Engineer Job Series. Motion carried by the following roll call votes: AYES: Scalmanini, Crane,
Mulheren, Doble, and Brown. NOES: None. ABSENT: None. ABSTAIN: None.
(Previously Agenda Item 7i)
g. Adoption of Resolution Authorizing the City Manager to Apply for and Submit an
Application for a Housing-Related Parks Program Grant— Community Services.
Presenters: Tami Bartolomei, Community Services Director and Sage Sangiacomo, City Manager.
Page 5 of 6
City Council Minutes for I::: bruaiy .1 5, 2017, Continued.
Motion/Second: Crane/Mulheren to adopt resolution (2017-14) authorizing the City Manager to
apply for and submit an application for a Housing-Related Parks Program grant. 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 9:17 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)
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. SOUK- 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: Ukiah Citizens for Safety First v. City of Ukiah, Mendocino County Superior
Court, Case No. SCUKCVPT 14-63579 (Costco)
e. 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)
f. 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
15. ADJOURNMENT
There being no further business, the meeting adjourned at 9:40 p.m.
Kristine Lawler, City Clerk
Page 6 of 6
.~ ITEM NO.: 12a
MEETING DATE: March 1, 2017 ._..._.._...m._.... ._.
'ay of Vkt.aFi
AGENDA SUMMARY REPORT
SUBJECT: DISCUSS AND PROVIDE DIRECTION FOR THE ESTABLISHMENT OF AN OVERSITE
COMMITTEE TO REVIEW MEASURE P EXPENDITURES
Summary: During the summer of 2014, the Ukiah City Council approved Resolution 2014-28 establishing
a spending plan for Public Safety and the creation of an Oversight Board to make reports on the public
safety plan. The Resolution calls for the City Council to establish an Oversight Board every two years after
the successful passage of Measure P.
The purpose of this report is to begin Council discussion and establishment of the Oversight Board to
review Measure P expenditures from November 2014 to November 2016.
Background: In June of 2005, the Citizens of Ukiah approved a one-half percent general sales tax
measure, called Measure S. The Measure S sales tax had a limited term and expired in September of
2015. Along with Measure S, the Citizens of Ukiah also passed Measure T, an accompanying advisory
measure which asked, "Should additional funds for public safety, including police, fire, and emergency
medical services be first priority for the use of new sales tax revenues in the City of Ukiah?"
During the summer of 2014, the City of Ukiah began the effort to renew Measure S. During this process
the City Council unanimously approved Resolution 2014-28 which established an expenditure plan for
Public Safety and an Oversight Board to make periodic reports on the performance of the public safety
spending plan.
The Ukiah City Council also unanimously adopted Resolution 2014-29, which placed on the November
2014 regular municipal election ballot a measure calling for the extension of the one-half percent general
sales tax without a sunset clause. This measure was subsequently named Measure P for the fall 2014
election. Please see Attachment#1 for Resolution Nos. 2014-28, 2014-29, and Ordinance No. 1149.
The text of the Measure read, "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?"
Continued on Page 2
RECOMMENDED ACTION(S):.._Am__A,,,.......,,....,,,,,,....,,.............�,,..,,,..... �..._.........�_.....,,,,,,...,._ ..... _. ...� ��,�...
Discuss and provide direction for the establishment of an Oversite Committee
to review Measure P expenditures.
ALTERNATIVES: Provide staff with alternate direction.
Citizens advised:
.. . �......_......_._mm, ...._.w.w.w.w..� .w.w.w.�.w.w.w.w..w .......w.............................w......w...............w.,��..,..,,,,,,,,,,,,,,,,,�,,,,,,,_....._................_.... _.�_. ....
N/A
Requested by: N/A
Prepared by/Contact: Chris Dewey, Police Chief.
Coordinated with: Sage Sangiacomo, City Manager; Dan Buffalo, Finance Director; and Kirk Thomsen, Fire
Chief.
Presenter: Chris Dewey, Police Chief.
Attachments: 1. Resolutions 2014-28, 2014-29 and Ordinance 1149
2. Measure P Annual Financial Report
COUNCIL ACTION DATE: : ❑ Approved ❑ Continued to ❑ Other
RECORDS APPROVED: ❑Agreement: ❑ Resolution: ❑ Ordinance:
Note:Please write Agreement No.in upper right a artier of agreement when drafted.
Approved:
S ge angi ` omo, City Manager
Page 2 of 2
In November of 2014, 76% of Ukiah's participating voters approved Measure P.
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 as outlined in Attachment 2.
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 has prepared a
Measure P reporting document for the City Council's review and comment (Attachment#2).
The purpose of this report is to review the prepared financial report, and then to discuss and begin the
process of creating an Oversight Committee to review Measure P expenditures since November of 2014.
Recommendations: Provide staff with direction on the establishment of an Oversight Committee and
committee members.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title& No.) Required Purchase Order
No.
N/A N/A N/A Yes ❑ No ® N/A
ATTACHMENT 1
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 4.7 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")
as 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
4. 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
Interstate Highway 5, and links southern California to Northern 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%. Calls 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 fire department had 15 firefighters; and
12. In 1988, the Ukiah Valley Fire District and City of Ukiah fire departments elected to
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 1 of 9
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 nep|aconnenta, including fire engines,
the City's ladder truck and police patrol cars; and
16. To address the significant demands of an increased public safetyvvorKyVad and provide
funding for necessary equipment, in June of 2005. the Citizens of Ukiah passed by a
majority vote, Measure S, a 1/2 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 Uhiah, experienced a recession
which significantly reduced city revenues from sales taxeo, 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 costa, 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 neductiono, 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 r�imburaem�nts� 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. 2O14and ending onDecember 31. 2O15. 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; and2
2 of 9
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 8.25% 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 for joint 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. Accounting for Public Safety 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
3 of 9
B. Minimum level of Public Safety Services. The City shall maintain a minimum
level of public safety semioeo, but nothing in this resolution prevents the City Council from
establishing a higher level of public safety mervices, 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, porannedic, 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
Committee'onnnldtee^ 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 oxxners, 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
men/ice. The Oversight Committee shall dissolve after it files its report with the City C0uncil,
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. :Idmin. Meyor
ATTEST:
Kristine Lavver, City Clerk
4
4 of 9
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 [ 1 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 Ito 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.
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
5 of 9
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. r.aldwin, Mayor
ATTEST:
/
' )
kristine Lawler, City Clerk
Resolution 2014-29
Page 2 of 2
6 of 9
MEASURE P
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:
IFiscal Year General Fund Measure S Other ITtl
eunawated) z, zzz ///, //,pv///7//
FY2006 55,256,593 $1,092,344 $ $6,379,237
iY2007 '540111;42/4/- 4/%10201740i1Wid ',4/740,7W,ir'/r4f;4f4(2''''ef7///
20108 $5,451,375 $2,322,584 $ 3,794 $7,777,753
II, Y2009 511110110t-i, Z'Aget 1.11;;•fk&I, /17/71rfr
III Y2010 $7,152,310 $2 013 673 $ 79 918 $9245 901
1,
"FY 2 01 11 11 SPOWI/r;/ VAVgell/n7,Ilk( /*ILW////
FY2012 ram— 233 347 $2 229 049 $ 88 158 $8 550 554
/ ; 4ifixtio Fowit /// “p„/, ,y/
F2013* 4 „fr / // fif42//i ,/ 14, %AIL ,/ ';1//k!',/‘i /
IFY 014* $6,250,200 $2,371,888 $ 500 $8,62"x,588
Pagel of 3
7 of 9
8. 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
since 2008 to sustain funding for public safety, and added to it from the General Fund, even
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 members 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.
SECTION 4. SEVERABILITY.
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
8 of 9
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
111/
OP - '
Philip Eildwin, Mayor
ATTEST:
17_ t
Kristine Lawler, City Clerk
Page 3 of 3
9of9
ATTACHMENT 2
CITY OF UKIAH
MEASURE P ANALYSIS
Fiisoal Year 2015-16
i ligiible Measure P Costs
Measure P:Transaction and Use Tax
Measure P,passed by a simple majority(50%plus 1)of Ukiah voters in November of 2014 was a general(unrestricted)transaction and use tax. It
continued a sun-setting transaction and use tax,known as Measure S(2005). Measure T(2005),passed in conjunction with Measure S,was a
distinctly separate,advisory Measure indicating the voting public's preference for the use of Measure S proceeds.
A general,unrestricted tax is one that can be used to fund any program,function,service,or project at the discretion of the City Council. It is not a
special,restricted tax,which would require approval of two-thirds of the voting public.
The language of Measure P(2014)was as follows. It did not have an accompanying advisory measure on the ballot.
Ballot 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?"
The Ukiah City Council established an expenditure plan(Resolution No.2014-28)for the use of Measure P revenues. That resolution stated that
those revenues should be used first to maintain a minimum level of public safety services. The plan defined"minimum level of public safety services"
to be level of services available in fiscal year 2014-15,including the following:1)thirty-two(32)full-time peace officers and 2)"[a]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."
Uses and Sources
Public Safety Activities
Comparative,Baseline(2015)to June 30,2016
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.
Prepared by Finance Department 1 of 2
2/22/2017
Measure S/P Over Time
Expenditures to Revenues
FY 2008-09 to 201546
10,000,000
9,000,000
pp
8,000,000
7,000,000
111
6,000,000 1,1
5,000,000
4,000,000
3,000,000
•
2,000,000
1,000,000
••••••••••
2008.-09 2009-2010 2010.-2011. 20112012 2012-2013 2013-2014 2014-2015 2015-2016
I Police expenditures 11111Fire expenditures —Measure S revenue General revenues
2 of 2
ITEM NO.: 12b
--
MEETING DATE: March 1, 2017
City ofUkiah AGENDA SUMMARY REPORT
SUBJECT: UPDATE ON THE SUSTAINABLE GROUNDWATER MANAGEMENT ACT (SGMA) AND
PROVIDE DIRECTION ON GROUNDWATER SUSTAINABILITY AGENCY GOVERNANCE
Summary: UC Davis will present results of their Groundwater Characterization Study. In addition, staff will
update the Council on local implementation of the Sustainable Groundwater Management Act(SGMA) and
receive direction on governance structure.
Background: On May 6, 2015, City staff provided information to the City Council regarding the new
regulations by the State of California to comply with the Sustainable Groundwater Management Act
(SGMA). The SGMA Act requires that groundwater basins of"medium priority" are monitored and have a
groundwater management plan. On May 20, 2015, Council created a Sustainable Groundwater Ad hoc
and appointed Councilmembers Crane and Doble to the committee. On May 18, 2016, Council approved
a contract with UC Davis to conduct a Groundwater Characterization Study (COU No. 1516-206). On
October 19, 2016, staff provided an update regarding the development of a governance structure for the
Groundwater Sustainability Agency (GSA) and sought Council's concurrence with the proposed structure.
Council concurred with the approach and directed staff to continue participation in GSA development.
Discussion: SGMA has a number of aggressive timelines that must be met or local control will be
abdicated to the State of California. As a"medium priority basin" under SGMA, the Ukiah Valley must have
a governance structure in place by June 30, 2017, and have a Groundwater Sustainability Plan (GSP)
complete by January 31, 2020.
The core of a GSP will be understanding the overall condition of the groundwater supply in a basin. On
May 16, 2016, the City agreed to fund a study proposed by UC Davis to initiate the process of quantifying
our groundwater resources. Since that time, UC Davis has completed their"Groundwater Characterization
Study". Dr. Sam Sandoval Solis and Maritza Flores Marquez will present a summary of their results.
The County of Mendocino has continued to lead the effort to organize the community in response to SGMA,
and the City has remained an active participant in these efforts. Focus has remained on developing a
governance structure for the Groundwater Sustainability Agency (GSA). In the summer of 2016, a number
of alternatives were considered at meetings organized by the County's facilitator, and a "consensus"
alternative emerged. The facilitator then directed participating entities to return to their prospective boards
for approval of the "consensus" alternative (Attachment 1). In the fall of 2016, the "consensus" structure
was approved by the City, the County and the Resource Conservation District.
RECOMMENDED ACTION(S): Receive update on the Sustainable Groundwater Management Act (SGMA)
and provide direction on Groundwater Sustainability Agency Governance.
ALTERNATIVES: N/A
Citizens advised: Sustainable Groundwater Ad hoc.
Requested by: Sage Sangiacomo, City Manager.
Contact/Prepared by: Sean White, Director of Water and Sewer.
Coordinated with: Tim Eriksen Director of Public Works/City Engineer.
Presenter: Sean White, Director of Water and Sewer.
Attachments: 1. Proposed Structure of Governance
2. RRFC proposed GSA
3. Trustee White's proposal
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.
Approved.
a Sa la ��, o, City Manager
Page 2 of 2
Shortly after those approvals, several actions by Russian River Flood Control (RRFC) and the Upper
Russian River Water Agency (URRWA) have given the City concern, which has in turn has stalled efforts
to finalize the governance structure. The actions included altering the "consensus" alternative prior to
approval, and RRFC joining URRWA.
The alteration to the "consensus" alternative moved the Sonoma County Water Agency (SCWA) from a
GSA Board member to a member of the "Advisory Committee". This structure change will result in SCWA
no longer cost sharing equally with the other board members, and possibly charging the GSA for support
services. The Mendocino County Resource Conservation District has also elected to become a member
of the Advisory Committee. The current proposed GSA structure is shown in Attachment 2.
The RRFC joining the URRWA has raised concerns that maintaining separate seats on the GSA will lead
to a "double vote". RRFC has stated that it will recuse itself from voting on SGMA issues at URRWA, and
URRWA has adopted a Resolution prohibiting RRFC from voting on SGMA issues. However, concern
persists among the City's Ad hoc and staff because both entities openly intend to fully discuss SGMA
issues, and only refrain from voting. At its February board meeting RRFC considered a different GSA
structure proposed by Trustee Al White (Attachment 3). In general, the City's Ad hoc and staff thought that
Trustee White's proposal was a workable alternative but this proposal failed on a 2-3 vote. With deadlines
for governance rapidly approaching (June 30th), a direction must be determined soon. Alternatives include
continuing to work with the County to form a structure that works for all concerned parties or for the City to
submit the paperwork to become its own GSA. Should the City choose to form its own GSA, coordination
with the County-led GSA is required under SGMA. Staff is asking for direction from Council on how to
proceed.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title& No.) Required Purchase Order
No.
N/A N/A N/A Yes ❑ No ® N/A
ATTACHMENT 1
Proposed Structure for "Option 2" - New JPA
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Notes:
1. JPA member are Upper Russian River Agency, Russian River Flood Control, Mendocino County,City of Ukiah and Sonoma County Water Agency
(MCRCD—TBD).
2. Governing Board Seats: Upper Russian Rivers Water Agency (URRWA), Russian River Flood Control (RRFC), Mendocino County, City of Ukiah,
Mendocino County Resource Conservation District(MCRCD), Sonoma County Water Agency(SCWA), an Agricultural Seat(appointment defined in
JPA)and a Tribal Seat(appointment defined in JPA).
3.One vote per Governing Board entity. Non-paying members vote on only non-fiscal matters.
4.Governing Board two year appointment terms. Each member will appoint one representative and one alternate.
5. Majority vote for all decisions.
6. Public meetings will provide a mechanism for stakeholders and public input.
7.Create a mechanism for membership dues for operational cost of JPA.
8. Option for an advisory,ad hoc or technical committee in the bylaws,should the JPA need to utilize it at some point.
1 of 1
ATTACHMENT 2
Pro Structure for New JPA
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Technical Advisory
Committee
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Notes:
1. JPA members:Upper Russian River Water Agency,Russian River Flood Control,Mendocino County and City of Ukiah.
2. Technical Advisory Committee: Sonoma County Water Agency, Mendocino County Resource Conservation District, staff from each member
agency. Additional members to the technical advisory committee can be added by the Board of Directors.
2.Stakeholder Director Seats:Agricultural Seat and Tribal Seat(appointments defined in JPA).
3.One vote per Board member entity. Non-paying stakeholder members vote on only non-fiscal matters.
4. Board of Directors two year appointment terms. Each member agency will appoint an elected representative from their respective board.
5. Majority vote for all decisions.
6.Public meetings will provide a mechanism for stakeholders and public input.
7.Annual dues will be developed by the Governing Board in the Bylaws(proposed at$5,000 annually)and an MOU agreement for services will be
developed.
1 of 1
Points to Consider from Al White on SGMA Participation
ATTACHMENT 3
Thoughts on groundwater vs surface water supply:
RRFC is a surface water from storage agency, as is SCWA.
Ensuring continuous water supply is our primary,task.
City of Ukiah and the other water districts are groundwater users.
Does a seat on the GSA best serve the interests of the RRFC?
Would our interests be better served by a seat on the advisory committee along with SCWA?
While we have viewed ourselves as a vote for ag as a member of the GSA,we are only that way due to
the dominance of ag related board members. That can change in an election cycle. Getting a second
voting seat for ag in place of the RRFC seat would better serve the interests of ag and the RRFC going
forward.
To be a voting member requires financial commitments that are undetermined and likely substantial.
With our relationship to groundwater being only in the surface/groundwater interaction, and with that
being essentially the same as SCWA's relationship, it makes more sense for us to sit on the advisory
committee with them and work together on our position. To continue to have input in voting, our
membership in the JPA provides our opportunity to influence that vote and limits our financial
obligations to 20%as opposed to 100%or possibly 120%.
We are a water supply agency, and water supply must be our focus. It is where we must direct our
management and financial resources first and foremost. We have significant financial liabilities ahead as
we move through the FERC relicensing and the raising of the dam. SGMA has diverted our attention
from our primary task. We need to reevaluate our involvement with it before we make any decision
final.
I encourage the board to reconsider our position in light of the above points and restate our position as:
• We will participate as a member of an advisory committee along with SCWA.
• We will participate as a member of the JPA.
• We will advocate for two seats on the GSA for ag.
1 of 1
ITEM NO.: 12c
MEETING DATE: March 1, 2017
City of'Ukiah
AGENDA SUMMARY REPORT
SUBJECT: AUTHORIZE THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO PAY THE
REMAINDER OF FINES TO THE STATE WATER RESOURCES CONTROL BOARD FOR
ADMINISTRATIVE CIVIL LIABILITY ORDER IN THE AMOUNT OF $39,000 FOR THE
WASTEWATER TREATMENT PLANT
Summary: Council will consider authorizing the Public Works Director/City Engineer to pay the remainder
of fines to the State Water Resources Control Board for the Wastewater Treatment Plant
Background: On January 21, 2015, staff presented to Council an Administrative Civil Liability Complaint
(ACLC) issued against the Waste Water Treatment Plant (WWTP) from the North Coast Regional Water
Quality Control Board (RWQCB)for fines as a result of exceeding final effluent limitations. The constituents
where exceedances occurred were mainly for Dichlorobromomethane (DCBM), Copper and Acute Toxicity.
These exceedances were compared to our previous National Pollutant Discharge Elimination Permit
(NPDES) which expired in 2010. Many of these exceedances would be within limits of the current NPDES
permit which went into effect in 2012.
Previously, City staff worked with RWQCB staff to establish an Enhanced Compliance Action Project(ECA)
that would be performed in lieu of 50% of the fines. RWQCB staff informed City staff that since the penalties
are Mandatory Minimum Penalties they misdirected us in regards to the type of project that can be performed
in lieu of a portion of the fines. City staff submitted a Supplemental Environmental Project (SEP) which
would have involved performing a Source Control Study of the collection system to evaluate areas of high
Biochemical Oxygen Demand (BOD) discharges to the system. RWQCB Staff approved this project as well
as an extended project schedule from what was originally proposed due to the amount of time it took them
to prepare the Settlement Order.
The original ACLC covered fines from the period of February 1, 2012, through December 11, 2012, but was
amended to include fines for the period of November 4, 2014, to May 31, 2015. There was no effluent
violation or river discharge for the period between the two previously listed. The total amount of fines for
both time periods is $63,000. In addition, a large number of the fines are exempt from penalties as the City
is under interim effluent limitations for nitrate and ammonia. The amount of fines paid to the State Water
Board was $24,000 and the remaining $39,000 would have been applied toward the proposed Source
Control Study of the collection system. (Attachment 1)
Continued on Page 2
RECOMMENDED ACTION(S): Authorize the Director of Public Works/City Engineer to pay the remainder of
fines to the State Water Resources Control Board for Administrative Civil Liability Order in the amount of
$39,000 for the Wastewater Treatment Plant.
ALTERNATIVES: Do not authorize thepay hent and provide direction to staff
Citizens advised: N/A
Requested by: Tim Eriksen, Director of Public Works/City Engineer.
Contact/Prepared by: Jarod Thiele, Public Works Management Analyst.
Coordinated with: Sage Sangiacomo, City Manager; Tim Eriksen, Director of Public Works/City Engineer; and
Sean White, Director of Water and Sewer.
Presenters: Sean White, Director of Water and Sewer and Jarod Thiele, Public Works Management
Analyst.
Attachment 1. Revised Supplemental Environmental Project
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.
Approved: 5.,
Sege S. giacomo, City Manager
Page 2 of 2
Discussion: The proposed study would likely cost in excess of$60,000. The Sanitary Sewer System would
be responsible for funding the amount in excess of the $39,000 approved with the SEP. Since the
development of the proposed SEP project, the City has changed its approach for complying with nitrate and
ammonia levels with the planned construction of a recycled water system. Since these fines cannot be
applied to the Recycled Water Project, staff feel it is more prudent to pay the fines. The SEP study was not
pursued due to the uncertainty of the Recycled Water Project funding as a result of the litigation with the
Ukiah Valley Sanitation District. In addition, the results from the SEP study would have no real benefit given
the alternate approach with recycled water.
There are currently two options the City can choose:
1) Request a deadline extension to complete the Supplemental Environmental Project study; or
2) Pay the remainder of fines in the amount of$39,000
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title & No.) Required Purchase Order
No.
$50,000 N/A 84024425.94700 Yes ❑ No ® N/A
ATTACHMENT 1
(00
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l w ro `"a,
P
r1 . City of Ukiah
February 8, 2016
North Coast Regional Water Quality Control Board
Attn: Cecile Morris
5550 Skylane Blvd, Suite A
Santa Rosa, CA 95403
Transmitted Electronically to: NorthCoast waterboards.ca.gov and CMorriswaterboards.ca.qov
Re: Revised Supplemental Environmental Project(SEP)for Administrative Civil Liability Complaint No
R1-2015-0069
Dear Ms. Morris,
The City would like to propose a source control study of the collection system to evaluate potential high
areas of BOO. This meets the requirements of the SEP Final Policy by performing a study that could
benefit surface water quality, and the beneficial uses of water of the State by identifying source
identification.
The goals for this project will be to issue a Request for Proposals (RFP)to engineering firms for
technical assistance. The City is anticipating to include language in the RFP that requires a fixed
amount of sample intervals in locations recommended by the selected firm. The City is planning to
release the RFP and have proposals due in September with the following project schedule:
TASK DESCRIPTION DEADLINE
1 Request for Proposals (RFP) &Proposals Due ' 3/17/2016
2 Award Contract to Engineering Consultant I 4 20/2016
3 I Be•in Sam•lin. &Data Collection 5/1 2016
4 I ouarterly Report 16/17/2016
5 I Receive Draft Plan 9/1/2016
6 _ City Submits Comments to Consultant 9/15/2016
7 •uarterly Report 2 9/17/2016
8 Receive Final Plan 9/30/2016
9 SEP Completion & Final Report 12/31/2016
The estimated cost for the Source Control Study is estimated to be $60,000. The City has additional
funds budgeted should they be needed. The City will provide reports to the Regional Board identifying
progress in regards to the Study.
Please let me know if you have questions or would like further information.
Sincerely,
I
Jarod L. Thiele
Project Analyst
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300 Seminary Avenue•Ukiah•CA•95482-5400
Phone: (707)463-6200 ° Fax: (707)463-6204 •www.cityofukiah.com
CITY.PRR.01-31-17.REQUEST#38 001
ITEM NO.: 13a
{ • ;��� MEETING DATE: March 1, 2017
City ofktok AGENDA SUMMARY REPORT
SUBJECT: APPROVE RECLASSIFICATION AND TITLE CHANGES FOR WATER AND
WASTEWATER POSITIONS AND APPROVE THE ADDITION OF A MECHANIC
POSITION, OPERATOR IN TRAINING POSITION, AND DELETION OF A SENIOR
WASTEWATER TREATMENT PLANT OPERATOR/MECHANIC
Summary: Council will consider the approval of restructuring the Water and Wastewater divisions including
reclassifications and title changes.
Background: Around 2008, prior staff began implementing a reorganization of the Water and
Wastewater Departments. Changes made at that time included the reclassification of "Water
Treatment Plant Operators" to "Operator/Mechanic". A similar reclassification was anticipated for
Operators at the Wastewater Treatment Plant but was never completed.
Discussion: The reorganization in 2008, has resulted in an inequality amongst job classifications
between Water and Wastewater divisions. In review, the addition of"Mechanic" to the "Operator"
classification did not substantially change job duties. In order to eliminate inequalities and realign
classifications with actual duties, staff has engaged the Human Resources Director and
recommends the following changes:
1) Change the title of"Water Treatment Operators/Mechanics"to"Water Treatment Operators".
2) Increase the classification of"Wastewater Treatment Plant Operator" to the current "Water
Treatment Plant Operator/Mechanic" level.
3) Change the title of "Senior Water Treatment Plant Operator/Mechanic" to "Senior Water
Treatment Plant Operator" and increase the classification of"Senior Water Treatment Plant
Operator" to the current"Senior Wastewater Treatment Plant Operator" level.
In an effort to improve maintenance effectiveness and reduce costs, staff has engaged the Human
Resources Director and recommends the following changes:
Continued on Page ?
RECOMMENDED ACTION(S): A rove reclassification and title gfor the Water and Wastewater
pp changes
positions and approve the addition of a Mechanic Position, Operator In Training position, and deletion of
a Senior Wastewater Treatment Plant Operator/Mechanic.
ALTERNATIVES: Do not approve and provide direction to staff.
Citizens advised: N/A
Requested by: Sean White, Director of Water and Sewer.
Contact/Prepared by: Sean White, Director of Water and Sewer and Jarod Thiele, Public Works Management
Analyst.
Coordinated with: Sean White, Director of Water and Sewer; Dave Kirch, Fleet Maintenance Supervisor; and
Sheri Mannion, Human Resources Director; Tim Eriksen, Director of Public Works/City
Engineer
Presenters: Sean White, Director of Water and Sewer and Jarod Thiele, Public Works Management
Analyst.
1) Revised Salary Schedule
Attachments: 2) Current Organization Chart
3)_Proposed Organization Chart
COUNCIL ACTION DATE: : ❑ Approved ❑ Continued to ❑ Other
RECORDS APPROVED: ❑Agreement: ❑ Resolution: ❑ Ordinance:
Note.Please write Agreement No in upper right,(orni r of agreement when drafted.
Approved: a.:
y•engi :mo, City Manager
Page 2 of 2
1) Eliminate the "Senior Wastewater Treatment Plant Operator/Mechanic" position, which is
currently vacant.
2) Create an additional "Equipment Mechanic" position which will be overseen by the Fleet
Maintenance Supervisor. This position will be dedicated and shared between the Water and
Wastewater Treatment Plants.
The net cost of eliminating inequalities and restructuring mechanical services is approximately
$6,800 per year.
After reviewing each division's structure and workloads, staff is also recommending the addition of a
"Wastewater Treatment Plant Operator-In-Training" position. This position will primarily perform entry level
duties and assist the Equipment Mechanic with maintenance and repairs of the facility. In addition, the
position will facilitate succession planning within the division. The total cost of adding this position is
approximately $45,760 in Salary. Total cost including benefits is $78,717 annually. This change will keep
the number of FTE's at nine (9) at the Wastewater Treatment Plant. Due to a vacant position at the
Wastewater Treatment Plant there will be no financial impact to the current Fiscal Year.
The above changes can be seen in the Salary Schedule which is included as attachment 1. Attachments
2 and 3 show the current and proposed Organization Charts.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title& No.) Required Purchase Order
No.
N/A N/A N/A Yes ❑ No ® N/A
ATTACHMENT 1
City of Ukiah
Water Utilities/Mechanics Unit Salary Schedule
Revised for ASR 3/1/17
Monthly
Job Class Title Grade Step 0 Step 1 Step 2 Step 3 Step 4
Wastewater Treatment Plant OIT 6029 3,105.11 3,260.37 3,423.39 3,594.56 3,774.29
Water Treatment Plant OIT 6129
Water&Sewer Attendant I 6232 3,343.87 3,511.06 3,686.61 3,870.94 4,064.49
Water&Sewer Attendant II 6135 3,600.99 3,781.04 3,970.09 4,168.59 4,377.02
Environmental Laboratory Technician I 6536 3,691.01 3,875.57 4,069.35 4,272.82 4,486.46
(1) 6136
Water&Sewer Service Attendant 6236
Equipment Mechanic 6038 3,877.87 4,071.77 4,275.36 4,489.13 4,713.59
Environmental Laboratory Technician II 6239 3,974.82 4,173.56 4,382.24 4,601.35 4,831.42
Wastewater Treatment Plant Operator(2) 6X39
Water Treatment Plant Operator i�(3) 6339
Sr \ ateF Trcatmcnt Illant Operat r 1Mcch(4) 6042 4,280.44 4,494.46 4,719.18 4,955.14 5,202.90
Sr.Wastewater Treatment Plant Operator 6144 4,497.14 4,721.99 4,958.09 5,205.99 5,466.29
Sr.Water Treatment Plant Operator(s) 6X44
Water&Sewer Lead Worker 6044
Environmental Laboratory Technician III 6145 4,609.57 4,840.05 5,082.05 5,336.15 5,602.96
(s) 6045
Lead Wastewater Treatment Plant Operator 6046 4,724.81 4,961.05 5,209.10 5,469.56 5,743.04
Reportable Special Compensation
Bilingual Pay $75-$100 per month
Career Step Pay&Longevity Pay 1%-5%added to base
Water Division Certificate pay 2.5%-7.5%added to base
(1)Reclassify to Grade 6X39
(2)New Grade Level
(3)Remove"Mechanic"from job title
(4)Reclassify to Grade 6X44 and remove"Mechanic"from job title
(5)New Grade Level
(6)Eliminate position
ATTACHMENT 2
Public Works & Water/Sewer Utilities '"Director of Public Wor
ks/
Current organizational Chart city Engineer V
Tim Enksen V
�� I eV
Director of Water and
Sewer Utilities
\ Sean White
Deputy Director of
Public Works-
Engineering&Streets
Division
Rick Seanor
Water/Sewer/Streets
Maintenance Management AnalystWWTP Supervisor Water Treatment Plant
Supervisor r. n Jarod Thiele Andy Luke Supervisor
Dan Hunt Lyle Valador
Senior Civil Fleet Maintenance
Engineer Supervisor
Ben Kageyama David Kirch
Lead Wastewater
Senior WiP
Water/Sewer Lead Public Works Administrative Treatment Plant forWOperator/
Worker Maintenance II SecretaryOperator Mechanic
Don Brown Darin Mal ugani Engineering Equipment Lory Limbird Hodge Michelle Whyburn
Analyst Mechanic
Andrew Stricklin Craig Klaisner
Water/Sewer Street Sweeper Chris Walker Senior WWTP WTPOperator/
Service Attendant Operator Operator
Jim Eddie Richard Dale JoAnne Waits Mechanic
Alonzo Frias
Vacant-1
Jennifer
Higbee
Darwin Dick
Water/Sewer
Attendant II Public Works Senior WWTP
Mario Dogali Maintenance I Operator/
Kevin Pierachini Casey Dill Mechanic
Anthony Mandan Vacant-1
Chuck Jdinston
Shane
Shane Young
Water/Sewer Vacant-1
Attendant I WWTP Operator
John Aguilar Randy Barton
Brad Bowers Greg Blancett
Nick Kirby Ken Judd
Vincente Martinez
Don Waddington
Environment
Laboratory
Technician I-Ill
Joan Kelly(Ill)
Vacant—1(I)
ATTACHMENT 3
Public Works & Water/Sewer Utilities
Revised Organizational Chart Director of Public Works/
City Engineer -- V
,, Tim Enksen I V
'Director of Water and
.... Sewer Utilities
Sean White �
Deputy Director of \\\
Public Works-
Engineering&Streets
Division
Water/Sewer/Streets Rick Seanor
Maintenance Management Analyst WWTP Supervisor Water Treatment Plant
Supervisor Jarod Thiele Andy Luke Supervisor
Dan Hunt Senior Civil Fleet Maintenance Lyle Valador
Engineer Supervisor
Ben Kageyama David Kirch
Water/Sewer Lead Public Works AdministrativeTreatment Plant
Lead Wastewater
Senior WTP
Worker Maintenance II Engineering Secretary Operator Operator
Analyst o Lory Limbird Michelle Whyburn
Don Brown Darin Malugani 1 ,. Alan Hodge
Andrew Stricklin 44;11'.*.
^Uig
Senior WWTP
Water/Sewer Street Sweeper
Service Attendant Operator Operator WTP Operator
Jim Eddie Richard Dale JoAnne Walts Alonzo Frias
Vacant-1 Jennifer Higbee
Darwin Dick
Water/Sewer Public Works
Attendant II WWTP Operator
Maintenance I Randy Barton
Mario Dogali Casey Dill Greg Blancett
Kevin Pierachini Anthony Mandan Ken Judd
ChuckJohnston
Shane Young
Young
Water/Sewer Vacant-1
Attendant I `'`'
John Aguilar % "!
Brad Bowers °°®
Nick Kirby
Vincente Martinez
Don Waddington Environment
Laboratory
Technician I-Ill
Joan Kelly(Ill)
Vacant-1(I)
ITEM NO.: 13b
MEETING DATE: March 1, 2017
q,i/ ah
AGENDA SUMMARY REPORT
SUBJECT: RECEIVE AN OVERVIEW OF THE UPDATED ELECTRIC UTILITY PUBLIC BENEFIT
PROGRAMS, CONSIDER OPTIONS AND PROVIDE DIRECTION (EUD)
Summary: Council to receive an overview of the updated Electric Utility Public Benefit Programs,
consider options and provide direction. Based on Council direction, the Public Benefit Programs may be
presented at a future Council meeting for consideration and approval.
Background: The City's Electric Utility Department administers the Public Benefit (PB) Program created
by the State legislation, AB1890, 1996. This legislation specifically requires programs to benefit all
electric customers in four areas including Low-Income Programs, Energy Conservation, Renewable
Energy, Research Development, and Demonstration projects. The PB program is funded based on a
2.85 percent of gross electric energy sales. In 2007, there was a large PB Fund balance being carried
forward. The City Council directed staff to utilize the funds in ways that benefit Ukiah's Electric Utility
customers. The Electric Utility worked closely with our program administrator Efficiency Services Group
(ESG) to create and promote new customer programs. For the last several years, the Electric Utility has
offered generous energy efficiency rebates to encourage residential and commercial customers to save
energy and money. These PB programs were available and benefited either directly or indirectly all City
electric customers. These programs were highly successful, and by Fiscal Year 2015-16, the excess
Fund balance had been utilized.
Since 2008, at the start of the economic downturn, specific energy savings programs were offered to
lower-income customers. These included bill payment assistance, emergency assistance, and no cost
energy conservation measures. These measures included weatherization, incandescent light bulb
replacement, low flow sink and shower heads. No cost energy audits and consultations are performed to
assist customers in saving money and energy. In that same time period, the bill assistance programs
experienced a significant increase in participation.
Beginning in Fiscal Year 2016-17, the Electric Utility modified programs and services to insure services
are available to customers without expenditures exceeding Fund revenues. The Electric Utility and ESG
have continued to evaluate the existing energy efficiency, renewable and low-income assistance
Continued on Page 2
RECOMMENDED ACTION(S): Receive an overview of the updated Electric Utility Public Benefit Programs,
consider options and provide direction (EUD) .
ALTERNATIVES: Remand to staff with direction.
Citizens advised: N/A
Requested by: Mel Grandi, Electric Utility Director.
Contact/Prepared by: Diann Lucchetti, Electric Utility Program Coordinator.
Coordinated with: Mark Gosvener, Consultant with Efficiency Services Group.
Presenter: Mel Grandi, Electric Utility Director.
Attachment: N/A
COUNCIL ACTION DATE: : ❑ Approved ❑ Continued to ❑ Other
RECORDS APPROVED: ❑ Agreement: ❑ Resolution: ❑ Ordinance:
Note:Please write Agreement Noin upper right corner of agreement when drafted.
Approved;
ai,te as gi omo,City Manager
Page 2 of 2
programs in order to provide the best use of available funding. The recommended changes allow best
programs to continue to be offered, while staying within the annual PB fund budget.
Discussion: Historically, PB funds have been utilized to provide services for Solar Photovoltaic (PV)
Program, Energy Efficiency Programs and Services, and Low-Income Billing Assistance. Brief
descriptions of these programs are below including an exciting new program for low-income housing
construction.
Solar PV Program: Beginning in 2008, the State Legislature enacted SB1. This legislation required all
publicly owned utilities in California to offer solar PV rebates to customers to encourage them to install
rooftop solar systems for a period of ten years. For the last ten years, the PB budget included $150K to
fund the solar PV program. On December 31, 2016, the SB1 legislation expired, and there is no longer a
requirement for public utilities to fund a solar PV program. There is now flexibility to utilize funds
previously reserved for solar PV rebates in order to fund other qualified PB programs and services.
Recommendation: Reallocate funding to other programs or as directed and approved by City Council.
Energy Efficiency Programs and Services: In March of 2016, the State Legislature enacted AB2021.
This legislation requires publicly owned utilities to adopt ten-year energy efficiency goals to save energy
(kWh's) and reduce demand (kW reduction). Every four years, goals are reviewed and Council may
revise and adopt new ten-year goals. The annual energy savings and demand reduction achieved by the
Electric Utilities energy efficiency programs are reported to the State each year. As originally identified in
AB1890, PB funds are tied directly to electric efficiency and now must achieve AB2021 energy efficiency
goals.
Recommendation: Yearly, develop a program budget to accomplish Council's energy efficiency goals per
AB2021. Specific program measures are provided and approved during the City's budget adoption
process. City Council may direct alternative method and funding amounts.
Low-Income Billing Assistance: Currently, the City has three low-income bill assistance programs;
Temporary Emergency Assistance, Senior Citizen Monthly Discount, Non-Senior Household Monthly
Discount programs to help low-income and senior customers pay their electric bills. As a percentage of
PB spending, the City has devoted a considerably higher percentage of PB funds to low-income bill
assistance than other California public utilities. In addition, the monthly discount credit is a fixed amount
vs. a tiered or percentage bill credit based on income adjusted quarterly.
Recommendation: That staff provide a public review with Council of Low Income programs provided
currently, other available programs and staff's suggested program alternatives. Council provide direction
and associated approval.
Low-Income Housing Incentive Program: The Electric Utility recommends implementing a new low-
income housing program that would provide incentives to developers to build energy efficient low-income
housing that exceeds Title 24 minimums. This would provide long-term energy savings.
Public Benefit budgets need to be established to adequately fund energy efficiency programs to meet
AB2021 goals, and provide assistance to the City's low-income citizens. Individual program budgets will
be established balancing revenues and expenditures. This requires the evaluation and prioritization of
the City's goals and objectives, and then allocating PB funds to achieve objectives.
Fiscal Impact: These recommendations prioritize and reallocate program funding and have no net fiscal
impact to the Public Benefit fund.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous Contract
Amount in Source of Funds Account Number Amendment or Purchase Order
16-17 FY (Title & No.) Required No.
$428,620 Public Benefits 80626500 Fund Yes ❑ No ® N/A
%
_ ITEM NO.: 13c
J
MEETING DATE: March 1, 2017
City of 4tkfaF
AGENDA SUMMARY REPORT
SUBJECT: DISCUSSION AND POSSIBLE LETTER OF SUPPORT FOR SENATE BILL 2— BUILDING
HOMES AND JOBS ACT
Summary: The Council will review Senate Bill 2,the Building Homes and Jobs Act, and consider authorizing
a letter of support. The bill is intended to create a permanent source of funding for the creation of affordable
housing for low and moderate-income Californians.
Background: SB 2 would create a permanent source of funding for the creation of affordable housing for
low and moderate-income Californians. If enacted, the bill would impose a fee of$75 to be paid at the time
of the recording of every real estate instrument, paper, or notice required or permitted by law to be recorded.
The bill is very similar to SB 391 in 2013, which failed due to insufficient votes in the Assembly. A key
difference between the two pieces of legislation is that SB 2 proposes to cap the cost per transaction at
$225; the fee cap was not present in SB 391. SB 2 has support from the League of California Cities.
The bill would require that funds be used to support the development, acquisition, rehabilitation, and
preservation of affordable homes, including transitional and permanent rental housing, foreclosure
mitigation, and homeownership programs. It is estimated that this fee will generate approximately $500
million each year to support affordable housing in California. Since the proposed fee is considered a tax
under State law, it will require a 2/3 vote of the Legislature. 38 other states already have housing trust funds
with permanent ongoing revenues, including five (Missouri, Ohio, Oregon, Pennsylvania, and Washington)
that have dedicated ongoing revenues generated by document recording fees.
Discussion: If created, SB 2 (Attachment 1) would provide much-needed funding to finance and build
affordable homes in California. This bill would help fill the funding void left following the dissolution of the
State's redevelopment agencies. Funding is critically needed to increase, preserve, and improve the City's
affordable housing stock for the City's workforce and to end homelessness.
While the bill represents a critical first step in identifying a permanent source of funding, it does not include
an allocation method for distributing these funds or the scope of eligible uses at this time. It is unknown
whether rural cities would receive a fair share of the funding or whether there would be a competitive process
for the distribution.
Continued on Page 2
RECOMMENDED ACTION(S): Review SB 2 and determine whether to provide letter of support to the author,
Senator Atkins.
ALTERNATIVES: Provide alternate direction to staff
Citizens advised: N/A
Requested by: Steven G. Scalmanini, Councilmember.
Prepared by: Shannon Riley, Senior Management Analyst.
Coordinated with: N/A
Presenter: Shannon Riley, Senior Management Analyst.
Attachments: 1. SB 2
2. Draft letter of support to Senator Atkins
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.
Approved. - -
S� a ang?acomo, City Manager
Page 2 of 2
Staff is recommending that the Council review and consider authorizing a letter in support of SB 2
(Attachment 2). Regardless of whether a letter of support is authorized, Staff will continue to monitor the
status of this bill and work with our local legislators to encourage a clear plan for the equitable distribution
of funds should the bill pass.
FISCAL IMPACT:
Budgeted New Appropriation Budget Previous
Amount in Source of Funds Account Number Amendment Contract or
16-17 FY (Title& No.) Required Purchase Order
No.
N/A N.A N/A Yes ❑ No ® N/A
ATTACHMENT 1
AMENDED IN SENATE FEBRUARY 22, 2017
SENATE BILL No. 2
Introduced by Senator Atkins
(Coauthors: Senators Beall,Bradford,Dodd,Hertzberg,Hill,Hueso,
Jackson, Mendoza, Mitchell, Roth, Skinner, Wieckowski, and
Wiener)
(Coauthors:Assembly Members Bonta Bonta, Gloria, and Thurmond)
December 5, 2016
An act to add Section 27388.1 to the Government Code, and to add
Chapter 2.5 (commencing with Section 50470)to Part 2 of Division 31
of the Health and Safety Code, relating to housing, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 2, as amended, Atkins. Building Homes and Jobs Act.
Under existing law, there are programs providing assistance for,
among other things, emergency housing, multifamily housing,
farmworker housing, homeownership for very low and low-income
households, and downpayment assistance for first-time homebuyers.
Existing law also authorizes the issuance of bonds in specified amounts
pursuant to the State General Obligation Bond Law. Existing law
requires that proceeds from the sale of these bonds be used to finance
various existing housing programs, capital outlay related to infill
development,brownfield cleanup that promotes infill development,and
housing-related parks.
This bill would enact the Building Homes and Jobs Act. The bill
would make legislative findings and declarations relating to the need
for establishing permanent, ongoing sources of funding dedicated to
affordable housing development. The bill would impose a fee, except
98
SB2 —2—
as provided, of$75 to be paid at the time of the recording of every real
estate instrument, paper, or notice required or permitted by law to be
recorded,per each single transaction per single parcel of real property,
not to exceed $225. By imposing new duties on counties with respect
to the imposition of the recording fee, the bill would create a
state-mandated local program. The bill would require that revenues
from this fee,after deduction of any actual and necessary administrative
costs incurred by the county recorder, be sent quarterly to the
Department of Housing and Community Development for deposit in
the Building Homes and Jobs Fund, which the bill would create within
the State Treasury. The bill would, upon appropriation by the
Legislature, require that 20% of the moneys in the fund be expended
for affordable owner-occupied workforce housing and 10% of the
moneys for housing purposes related to agricultural workers and their
families, and would authorize the remainder of the moneys in the fund
to be expended to support affordable housing, homeownership
opportunities, and other housing-related programs, as specified. The
bill would impose certain auditing and reporting requirements and would
establish the Building Homes and Jobs Trust Fund Governing Board
that would, among other things,review and approve recommendations
made by the Department of Housing and Community Development for
the distribution of moneys from the fund.
This bill would state the intent of the Legislature to enact legislation
that would create the Secretary of Housing within state government to
oversee all activities related to housing in the state.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act
for a specified reason.
This bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
The people of the State of California do enact as follows:
1 SECTION 1. This act shall be known as the Building Homes
2 and Jobs Act.
98
-3— SB2
1 SEC. 2. (a) The Legislature finds and declares that having a
2 healthy housing market that provides an adequate supply of homes
3 affordable to Californians at all income levels is critical to the
4 economic prosperity and quality of life in the state.
5 (b) The Legislature further finds and declares all of the
6 following:
7 (1) Funding approved by the state's voters in 2002 and 2006,
8 as of June 2015,has financed the construction,rehabilitation, and
9 preservation of over 14,000 shelter spaces and 245,000 affordable
10 homes.These numbers include thousands of supportive homes for
11 people experiencing homelessness. In addition, these funds have
12 helped tens of thousands of families become or remain
13 homeowners. Nearly all of the voter-approved funding for
14 affordable housing has been awarded.
15 (2) The requirement in the Community Redevelopment Law
16 that redevelopment agencies set aside 20 percent of tax increment
17 for affordable housing generated roughly$1 billion per year.With
18 the elimination of redevelopment agencies, this funding stream
19 has disappeared.
20 (3) In 2014, the Legislature committed 10 percent of ongoing
21 cap-and-trade funds for affordable housing that reduces greenhouse
22 gas emissions and dedicated$100 million in one-time funding for
23 affordable multifamily and permanent supportive housing. In
24 addition, the people of California thoughtfully approved the
25 repurposing of$600 million in already committed bond funds for
26 the creation of affordable rental and permanent supportive housing
27 for veterans through the passage of Proposition 41.
28 (4) In 2015, the Legislature approved $2 billion in revenue
29 bonds for the construction and rehabilitation of permanent
30 supportive housing for homeless individuals with mental illness
31 through the"No Place Like Home"initiative and increased funding
32 for the CalWORKs Housing Support Program to $47 million per
33 year. Another $45 million was directed to Emergency Solutions
34 Grants to fund rapid rehousing, outreach, shelters, and homeless
35 prevention and $10 million was provided to reduce homelessness
36 among families who are part of the child welfare system.
37 (5) Despite these investments, the need for affordable housing
38 in the State of California greatly exceeds the available resources,
39 demonstrated by the Public Policy Institute of California finding
40 that, as of January 2016, 31.5 percent of mortgaged homeowners
98
SB2 —4-
1 and 47 percent of all renters are spending more than 35 percent of
2 their household incomes on housing.
3 (6) California has 12 percent of the United States population,
4 but 20 percent of its homeless population. California has the highest
5 percentage of unsheltered homeless in the nation,with 64 percent
6 of homeless Californians not having shelter. California has 24
7 percent of the nation's homeless veterans population and one-third
8 of the nation's chronically homeless population. California also
9 has the largest populations population of unaccompanied homeless
10 children and youth, with 28 percent of the national total.
11 (7) Furthermore, four of the top 10 metropolitan areas in the
12 country with the highest rate of homelessness are in the following
13 metropolitan areas in California: San Jose-Sunnyvale-Santa Clara,
14 Los Angeles-Long Beach-Santa Ana, Fresno, and Stockton.
15 (8) California continues to have the second lowest
16 homeownership rate in the nation, and the Los Angeles
17 metropolitan area is now a majority renter area.In fact,five of the
18 eight lowest homeownership rates are in metropolitan areas in
19 California.
20 (9) Los Angeles and Orange Counties have been identified as
21 the epicenter of overcrowded housing, and numerous studies have
22 shown that children in crowded homes have poorer health, worse
23 scores on mathematics and reading tests, and higher rates of
24 depression and behavioral problems—even when poverty is taken
25 into account.
26 (10) Millions of Californians are affected by the state's chronic
27 housing shortage,including seniors,veterans,people experiencing
28 chronic homelessness, working families, people with mental,
29 physical,or developmental disabilities,agricultural workers,people
30 exiting jails, prisons, and other state institutions, survivors of
31 domestic violence, and former foster and transition-aged youth.
32 (11) Eight of the top 10 hardest hit cities by the foreclosure
33 crisis in the nation were in California. They include the Cities of
34 Stockton, Modesto, Vallejo, Riverside, San Bernardino, Merced,
35 Bakersfield, and Sacramento.
36 (12) California's workforce continues to experience longer
37 commute times as persons in the workforce seek affordable housing
38 outside the areas in which they work. If California is unable to
39 support the construction of affordable housing in these areas,
98
-5— SB 2
1 congestion problems will strain the state's transportation system
2 and exacerbate greenhouse gas emissions.
3 (13) Many economists agree that the state's higher than average
4 unemployment rate is due in large part to massive shrinkage in the
5 construction industry from 2005 to 2009,including losses of nearly
6 700,000 construction-related jobs, a 60-percent decline in
7 construction spending, and an 83-percent reduction in residential
8 permits. Restoration of a healthy construction sector will
9 significantly reduce the state's unemployment rate.
10 (14) The lack of sufficient housing impedes economic growth
11 and development by making it difficult for California employers
12 to attract and retain employees.
13 (15) To keep pace with continuing demand, the state should
14 identify and establish a permanent, ongoing source or sources of
15 funding dedicated to affordable housing development. Without a
16 reliable source of funding for housing affordable to the state's
17 workforce and most vulnerable residents, the state and its local
18 and private housing development partners will not be able to
19 continue increasing the supply of housing after existing housing
20 bond resources are depleted.
21 (16) The investment will leverage billions of dollars in private
22 investment, lessen demands on law enforcement and dwindling
23 health care resources as fewer people are forced to live on the
24 streets or in dangerous substandard buildings, and increase
25 businesses' ability to attract and retain skilled workers.
26 (17) In order to promote housing and homeownership
27 opportunities, the recording fee imposed by this act shall not be
28 applied to any recording made in connection with a sale of real
29 property. Purchasing a home is likely the largest purchase made
30 by Californians, and it is the intent of this act to not increase
31 transaction costs associated with these transfers.
32 SEC. 3. Section 27388.1 is added to the Government Code, to
33 read:
34 27388.1. (a) (1) Commencing January 1,2018,and except as
35 provided in paragraph(2), in addition to any other recording fees
36 specified in this code, a fee of seventy-five dollars ($75) shall be
37 paid at the time of recording of every real estate instrument,paper,
38 or notice required or permitted by law to be recorded,except those
39 expressly exempted from payment of recording fees, per each
40 single transaction per parcel of real property. The fee imposed by
98
SB2 —6-
1 this section shall not exceed two hundred twenty-five dollars
2 ($225). "Real estate instrument, paper, or notice" means a
3 document relating to real property, including, but not limited to,
4 the following: deed, grant deed, trustee's deed, deed of trust,
5 reconveyance, quit claim deed,fictitious deed of trust,assignment
6 of deed of trust,request for notice of default,abstract of judgment,
7 subordination agreement, declaration of homestead,abandonment
8 of homestead, notice of default, release or discharge, easement,
9 notice of trustee sale, notice of completion, UCC financing
10 statement, mechanic's lien, maps, and covenants, conditions, and
11 restrictions.
12 (2) The fee described in paragraph(1) shall not be imposed on
13 any real estate instrument,paper, or notice recorded in connection
14 with a transfer subject to the imposition of a documentary transfer
15 tax as defined in Section 11911 of the Revenue and Taxation Code
16 or on any real estate instrument, paper, or notice recorded in
17 connection with a transfer of real property that is a residential
18 dwelling to an owner-occupier.
19 (b) The fees, after deduction of any actual and necessary
20 administrative costs incurred by the county recorder in carrying
21 out this section, shall be remitted quarterly, on or before the last
22 day of the month next succeeding each calendar quarterly period,
23 to the Department of Housing and Community Development for
24 deposit in the California Building Homes and Jobs Trust Fund
25 established by Section 50470 of the Health and Safety Code, to
26 be expended for the purposes set forth in that section.In addition,
27 the county shall pay to the Department of Housing and Community
28 Development interest, at the legal rate, on any funds not paid to
29 the Controller before the last day of the month next succeeding
30 each quarterly period.
31 SEC.4. Chapter 2.5 (commencing with Section 50470)is added
32 to Part 2 of Division 31 of the Health and Safety Code, to read:
33
34 CHAPTER 2.5. BUILDING HOMES AND JOBS ACT
35
36 Article 1. General Provisions
37
38 50470. (a) (1) There is hereby created in the State Treasury
39 the Building Homes and Jobs Trust Fund. All interest or other
40 increments resulting from the investment of moneys in the fund
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1 shall be deposited in the fund, notwithstanding Section 16305.7
2 of the Government Code.
3 (2) Moneys in the Building Homes and Jobs Trust Fund shall
4 not be subject to transfer to any other fund pursuant to any
5 provision of Part 2 (commencing with Section 16300) of Division
6 4 of Title 2 of the Government Code, except to the Surplus Money
7 Investment Fund. Upon appropriation by the Legislature:
8 (A) Twenty percent of moneys in the fund shall be expended
9 for affordable owner-occupied workforce housing.
10 (B) Ten percent of the moneys in the fund shall be expended to
11 address affordable homeownership and rental housing opportunities
12 for agricultural workers and their families.
13 (C) The remainder of the moneys in the fund may be expended
14 for the following purposes:
15 (i) The development,acquisition,rehabilitation,and preservation
16 of rental housing that is affordable to extremely low, very low,
17 low-, and moderate-income households, including necessary
18 operating subsidies.
19 (ii) Affordable rental and ownership housing that meets the
20 needs of a growing workforce earning up to 120 percent of area
21 median income.
22 (iii) Matching portions of funds placed into local or regional
23 housing trust funds.
24 (iv) Matching portions of funds available through the Low and
25 Moderate Income Housing Asset Fund pursuant to subdivision(d)
26 of Section 34176 of the Health and Safety Code.
27 (v) Capitalized reserves for services connected to the creation
28 of new permanent supportive housing, including, but not limited
29 to, developments funded through the Veterans Housing and
30 Homelessness Prevention Program. Bond Act of 2014.
31 (vi) Emergency shelters, transitional housing, and rapid
32 rehousing.
33 (vii) Accessibility modifications.
34 (viii) Efforts to acquire and rehabilitate foreclosed or vacant
35 homes.
36 (ix) Homeownership opportunities, including, but not limited
37 to, down paymcnt downpayment assistance.
38 (x) Grants to local and regional agencies to assist in the
39 development and updating of planning documents and zoning
40 ordinances in order to accelerate housing production, including,
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SB 2 —8-
1 but not limited to,Gcncral Plans,general plans, community plans,
2 specific plans,sustainable communities strategies,and local coastal
3 programs.
4 (xi) Fiscal incentives or matching funds to local agencies that
5 approve new housing for extremely low, very low, low-, and
6 moderate-income households.
7 (3) A state or local entity that receives an appropriation or
8 allocation pursuant to this chapter shall use no more than 5 percent
9 of that appropriation or allocation for costs related to the
10 administration of the housing program for which the appropriation
11 or allocation was made.
12 (b) Both of the following shall be paid and deposited in the
13 fund:
14 (1) Any moneys appropriated and made available by the
15 Legislature for purposes of the fund.
16 (2) Any other moneys that may be made available to the
17 department for the purposes of the fund from any other source or
18 sources.
19 (c) If a local government does not expend the moneys allocated
20 to it,pursuant to this chapter, within five years of that allocation,
21 those moneys shall revert to, and be paid and deposited in, the
22 fund.
23 50470.5. For purposes of this chapter:
24 (a) "Department" means the Department of Housing and
25 Community Development.
26 (b) "Governing Board"board"means the Building Homes and
27 Jobs Trust Fund Governing Board.
28 50470.7. (a) The Building Homes and Jobs Trust Fund
29 Governing Board is hereby established.The governing board shall
30 include one representative from the department,one representative
31 from the California Housing Finance Agency, and one
32 representative from the Office office of the Treasurer. The
33 governing board shall consist also include no fewer than two real
34 estate licensees, one from northern California and one from
35 southern California, each with not less than 10 years of real estate
36 experience and membership in a real estate trade organization with
37 not less than 20,000 licensees. The governing board shall include
38 a local government official from northern and southern California,
39 and a representative from the northern and southern California
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1 home building industry, all of whom shall be appointed by the
2 Governor.
3 (b) (1) The governing board also shall include six public
4 members. Two of the public members must be representative of
5 nonprofit affordable housing development, one appointed by the
6 Speaker of the Assembly and one appointed by the Senate Rules
7 Committcc. Committee on Rules. Two of the public members must
8 be representative of for-profit affordable housing development,
9 one appointed by the Speaker of the Assembly and one appointed
10 by the Senate Rules Committcc. Committee on Rules. The Speaker
11 of the Assembly and the Senate Rules Committee Committee on
12 Rules shall each appoint one additional public member who shall
13 be representative of, or have experience in, one or more of the
14 following areas:
15 (A) Private sector lending.
16 (B) For-profit affordable housing development.
17 (C) Nonprofit affordable housing development.
18 (D) Working with special needs populations,including persons
19 experiencing homelessness.
20 (E) Architecture.
21 (F) Housing development consultation.
22 (G) Academia related to housing issues.
23 (2) Overall public membership shall contribute to a balance
24 among geographic areas and between rural and urban interests.
25 50471. (a) In order to maximize efficiency and address
26 comprehensive needs, the department, in consultation with the
27 California Housing Finance Agency, the California Tax Credit
28 Allocation Committee, and the California Debt Limit Allocation
29 Committee,shall develop and submit to the Legislature,at the time
30 of the Department of Finance's adjustments to the proposed
31 2018-19 fiscal year budget pursuant to subdivision(e) of Section
32 13308 of the Government Code, the Building Homes and Jobs
33 Investment Strategy. Notwithstanding Section 10231.5 of the
34 Government Code,commencing with the 2023-24 fiscal year,and
35 every five years thereafter, concurrent with the release of the
36 Governor's proposed budget, the department shall update the
37 investment strategy and submit it to the Legislature.The governing
38 board shall review and advise the department regarding the
39 investment strategy prior to its submission to the Legislature. The
40 investment strategy shall do all of the following:
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SB2 —10-
1 (1) Identify the statewide needs,goals,objectives,and outcomes
2 for housing for a five-year time period.Goals should include targets
3 of the total number for affordable homes created and preserved
4 with the funds.
5 (2) Meet the following minimum objectives:
6 (A) Encourage economic development and job creation by
7 helping to meet the housing needs of a growing workforce earning
8 up to 120 percent of area median income.
9 (B) Identify opportunities for coordination among state
10 departments and agencies to achieve greater efficiencies,increase
11 the amount of federal investment in production, services, and
12 operating costs of housing, and promote energy efficiency in
13 housing produced.
14 (C) Incentivize the use and coordination of nontraditional
15 funding sources including philanthropic funds, local realignment
16 funds, nonhousing tax increment, the federal Patient Protection
17 and Affordable Care Act, and other resources.
18 (D) Incentivize innovative approaches that produce cost savings
19 to local and state services by reducing the instability of housing
20 for frequent, high-cost users of hospitals, jails, detoxification
21 facilities,psychiatric hospitals, and emergency shelters.
22 (3) Provide for a geographically balanced distribution of funds,
23 including a 50 percent direct allocation of funds to local
24 governments.
25 (4) In order to receive an allocation a local government shall:
26 (A) Submit a plan to the department detailing how allocated
27 funds will be used by the local government in a manner consistent
28 with paragraph (2) of subdivision (a) of Section 50470.
29 (B) Have a compliant housing element with the state, submit
30 annual reports pursuant to Section 65400 of the Government Code,
31 and submit an annual report to the department that provides
32 ongoing tracking of the uses and expenditures of any allocated
33 funds.
34 (C) Emphasize investments that serve households that are at or
35 below 60 percent of area median income.
36 (b) Before submitting the Building Homes and Jobs Investment
37 Strategy to the Legislature, the department shall hold at least four
38 public workshops in different regions of the state to further inform
39 the development of the investment strategy.
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1 (c) Expenditure requests contained in the Governor's proposed
2 budget shall be consistent with the Building Homes and Jobs
3 Investment Strategy developed and submitted pursuant to this part.
4 Moneys in the Building Homes and Jobs Trust Fund shall be
5 appropriated through the annual Budget Act.
6 (d) The Building Homes and Jobs Investment Strategy and
7 updates required by this section shall be submitted pursuant to
8 Section 9795 of the Government Code.
9 (e) The governing board shall have the authority to review and
10 approve department recommendations for all funds distributed
11 from the Building Homes and Jobs Trust Fund.
12
13 Article 2. Audits and Reporting
14
15 50475. The California State Auditor's Office shall conduct
16 periodic audits to ensure that the annual allocation to individual
17 programs is awarded by the department in a timely fashion
18 consistent with the requirements of this chapter. The first audit
19 shall be conducted no later than 24 months from the effective date
20 of this section.
21 50476. (a) In its annual report to the Legislature pursuant to
22 Section 50408, the department shall report how funds that were
23 made available pursuant to this chapter and allocated in the prior
24 year were expended,including efforts to promote a geographically
25 balanced distribution of funds. The report shall also assess the
26 impact of the investment on job creation and the economy. With
27 respect to any awards made specifically to house or support persons
28 who are homeless or at risk of homelessness, the report shall
29 include an analysis of the effectiveness of the funding in allowing
30 these households to retain permanent housing. The department
31 shall make the report available to the public on its Internet Web
32 site.
33 (b) (1) In the report,the department shall make a determination
34 of whether any of the moneys derived from fees collected pursuant
35 to Section 27388.1 of the Government Code are being allocated
36 by the state for any purpose not authorized by Section 50470 and
37 shall share the information with the county recorders.
38 (2) If the department determines that any moneys derived from
39 fees collected pursuant to Section 27388.1 of the Government
40 Code are being allocated by the state for a purpose not authorized
98
SB2 —12-
1 by Section 50470, the county recorders shall, upon notice of the
2 determination, immediately cease collection of the fees imposed
3 by Section 27388.1 of the Government Code, and shall resume
4 collection of those fees only upon notice that the moneys derived
5 from fees collected pursuant to Section 23788.1 of the Government
6 Code are being allocated by the state only for a purpose authorized
7 by Section 50470.
8 SEC. 5. (a) The Legislature finds and declares that the housing
9 market plays a critical role in the functioning of the California
10 economy.
11 (b) The Legislature further finds and declares all of the
12 following:
13 (1) The need for housing is something every Californian
14 encounters.
15 (2) Adequate and stable housing is a crucial component of all
16 Californians' quality of life.
17 (3) The expenditure for housing is one of the largest expenses
18 all Californians undertake in their day-to-day lives.
19 (4) Housing and housing-related activities are of such significant
20 importance to the state that it warrants a clear and unified voice
21 in state government.
22 (c) It is the intent of the Legislature to enact legislation that
23 would create a Secretary of Housing within state government to
24 oversee all activities related to housing in the state.In creating this
25 position, it is the intent of the Legislature that all professional
26 entities that play a role in the housing market would be authorized
27 to be incorporated in order to have a clearer and more unified
28 approach to housing in California.
29 SEC. 6. No reimbursement is required by this act pursuant to
30 Section 6 of Article XIIIB of the California Constitution because
31 a local agency or school district has the authority to levy service
32 charges, fees, or assessments sufficient to pay for the program or
33 level of service mandated by this act,within the meaning of Section
34 17556 of the Government Code.
35 SEC. 7. This act is an urgency statute necessary for the
36 immediate preservation of the public peace,health,or safety within
37 the meaning of Article IV of the California Constitution and shall
38 go into immediate effect. The facts constituting the necessity are:
98
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1 In order to provide affordable housing opportunities at the earliest
2 possible time,it is necessary for this act to take effect immediately.
0
98
ATTACHMENT 2
dvruhl r�irANSa a dub(14,
40
gife 4,944
144
fcity
of Ukiah March 1, 2017
The Honorable Toni G. Atkins
Member, California State Senate
State Capitol, Room 4072
Sacramento, CA 95814
FAX: 916-651-4939
RE:SB 2 (Atkins) Building Homes and Jobs Act--NOTICE OF SUPPORT
Dear Senator Atkins,
The City of Ukiah supports your SB 2, the Building Homes and Jobs Act. This measure would generate hundreds
of millions of dollars per year for affordable rental or ownership housing,supportive housing,emergency shelters,
transitional housing and other housing needs via a $75 recordation fee on specified real estate documents.
Cities, including the City of Ukiah, are eager to help encourage the construction of affordable housing, but with
the loss of over $1 billion per year of redevelopment housing funds they lack the resources to do so. While the
timeliness of the environmental review, permitting, and approval processes can always be improved to help
reduce costs, affordable housing projects require some form of financial assistance. This measure is a significant
step in the right direction.
While SB 2 would provide an ongoing, permanent state source of funding for much needed affordable housing
projects,we also encourage you to help create a clear, equitable system for the distribution of funds. As a small,
rural city,we do not have the resources necessary to engage in a cumbersome competitive process to access these
funds. Specifically, we would be opposed to a process like what non-entitlement jurisdictions are subjected to as
part of the CDBG program.
For these reasons, and with the aforementioned recommendation, the City of Ukiah supports SB 2.
Sincerely,
Jim 0. Brown
Mayor
City of Ukiah
cc: Senator Jim Beall, Chair, Senate Housing and Transportation Committee, fax: 916-651-4915
Senator Mike McGuire, fax: 916-651-4902
Assembly Member Jim Wood, fax: 916-319-2102
Alison Hughes, Consultant, Senate Housing and Transportation Committee, fax: 916-445-2209
Sarah Boot, Legislative Director, Senator Toni Atkins,sar h... cca..@ en.c . c v
Sara Rounds, League of California Cities,sroun.ds. caci.ti.e.s...c rg
Jason Rhine, League of California Cities, Arhi.ne pcaci.ti.e.. rg
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300 Seminary Avenue • Ukiah• CA • 95482-5400
Phone: (707)463-6200 • Fax: (707)463-6204 • www.cityofukiah.com