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HomeMy WebLinkAboutCC Reso 2018-05 - Authorizing the Public Works Dept. to Use Real Property Comprising a Portion of the Ukiah Municipal Airport for the Corp Yard RESOLUTION NO. 2018-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE PUBLIC WORKS DEPARTMENT TO USE REAL PROPERTY COMPRISING A PORTION OF THE UKIAH MUNICIPAL AIRPORT FOR THE DEPARTMENT'S CORPORATION YARD AND ESTABLISHING A REASONABLE FEE FOR THE USE THEREOF WHEREAS, 1. The City of Ukiah ("City") provides certain municipal services as general fund services funded primarily from revenue from taxes, such as sales and use tax, locally adopted transaction and use taxes, ad valorem real property taxes, transient occupancy taxes, and business license fees; and 2. The City provides other municipal services through enterprise funds which are funded by user fees charged for the municipal service by the enterprise fund; and 3. Enterprise funds are self-supporting and do not depend on tax revenues to provide their services; and 4. The following are established in the City's annual budget and for other accounting purposes as enterprise funds of the City: Fund No. Fund Title 700 Sanitary Disposal Site Fund 701 Landfill Corrective Action Fund 702 Disposal Closure Reserve Fund 704 Post Closure Fund-Solid Waste 705 Landfill Self-Insurance Trust Fund 720 Golf Fund 730 Conference Center Fund 750 Visit Ukiah Fund 777 Airport Fund 800 Electric Fund 802 Electric Rate Stabilization Fund 803 Lake Mendocino Bond Fund 805 Street Lighting Fund 806 Public Benefits Charges Fund Page 1 of 3 820 Water Fund 830 Recycled Water Fund 840 City/Dist. Sewer Operating Fund 841 Sewer Bond Debt Service Fund 842 Rate Stabilization-City Fund 843 Connection Fee Sewer Fund 844 City Sewer Capital Projects Fund; and 6. The Ukiah Municipal Airport ("Airport") is enterprise fund number 777. The Airport provides a regional airport for inland Mendocino County; and 7. A portion of the real property comprising the Airport has been occupied by the Corporation Yard ("Corporation Yard Property"), as more particularly described in the attached Exhibit A; and 8. In the City's annual budget and other financial records,the Corporation Yard is Division Code 243 within the Public Works Department; and 9. The Corporation Yard is the base of operations for Public Works field crews and Electric crews, and serves as the City Fleet and Plant Maintenance Facility. The Street Maintenance Crew, the Water and Sewer Maintenance Crew, and the Electric Utility Maintenance Crew stage their equipment and maintenance supplies at the Corporation Yard; and 10. Expenses for the Corporation Yard are divided respectively based on the amount of square feet that each department occupies; and 11. The Corporation Yard was constructed and has been used without formal written authorization from the City Council other than through the adoption of annual budgets; and 12. The Corporation Yard occupies Airport real property which deprives the Airport of the ability to lease the real property for Airport Related businesses and hangar space, which, if so developed, would produce revenue to the Airport enterprise; and 13. The purpose of this resolution is to formally approve the use of the Corporation Yard Property and to charge the Corporation Yard a fee for the use thereof equal to the lease rate charged to lessees of undeveloped Airport real property. NOW, THEREFORE, BE IT RESOLVED as follows: 1. Retroactive to the date the Corporation Yard was first constructed on the Corporation Yard Property, the Public Works Department is granted the possession and use of said real property for the purposes of a Corporation Yard to provide services to City general and enterprise funds. Page 2 of 3 2. A. Commencing on July 1, 2017, the Public Works Department is directed to compensate the Airport for the occupancy and use of the Corporation Yard Property, which measures 178,385 sq. feet at the rate of $0.0375 per square foot per month, which is $6,689 per month. This is the same rate per square foot that the Airport charges lessees of undeveloped Airport real property for the development and use of airport-related businesses on such real property. B. This amount shall be adjusted annually on July 1 based on the percentage change in the CPI for the twelve (12) month period ending on April 30. CPI means the Consumer Price Index for All Urban Consumers (1982-1984 = 100), San Francisco-Oakland-San Jose, CA, All Items, published by the United States Department of Labor, Bureau of Labor Statistics. In the event the CPI is discontinued or otherwise not available, "CPI" shall mean such comparable statistics on the purchasing power of the consumer dollar as is determined by the City Council. C. Payments shall be made in periodic transfers from the Public Works Department budget to the Airport, Fund No. 777, or any subsequent fund number assigned to the Airport Enterprise, not less often than annually at the discretion of the City Manager. Transfers shall be treated as a Corporation Yard expense and revenue to the Airport in the City's budgets and financial statements. PASSED AND ADOPTED this 7th day of February 2018, by the following roll call vote. AYES: Councilmembers Brown, Scalmanini, Crane, Mulheren, and Mayor Doble NOES: None ABSENT: None ABSTAIN: None Kevin Doble, Mayor ATTEST: A I �j� Kristine Lawl , City Clerk Page 3 of 3