HomeMy WebLinkAbout2000-04-05 Packet3a
MINUTES OF THE UKIAH CITY COUNCIL
Regular Meeting
Wednesday, March 15, 2000
The Ukiah City Council met at a Regular Meeting on February 16, 2000, the notice for
which had been legally noticed and posted, at 6:30 p.m. in the Civic Center Council
Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following
Councilmembers were present: Smith, Libby, Baldwin (6:32 p.m.), Ashiku (6:34 p.m.),
and Mayor Mastin. Staff present: Public Utilities Director Barnes, Electr...i~::.Supervisor
Bartolomei, Community Services Director DeKnoblough, Finan~ Dir~i~°' Elton, City
Manager Horsley, City Attorney Rapport, Deputy Public Works.:~i~i~~i~eanor, Police
Chief Williams, and City Clerk Ulvila .....
.... iiiiiiilili:?:~ ........ ~:~.::.-ii::i..-".:iiiiiiiiiiiiiiiiiiiiiiii!i!iii!ii~ ...........
Councilmember Smith led the Pledge of Allegia~
Councilmember baldwin arrived at 6:32 p.m.
3a. Rec~ular Meetinc~ of March 1, 2000 ...........
Councilrn~mber Smitl~ noted a correction.::.t.~ili~i!i~i~.:..sevent'"~i!~:~.~:~aph, to change the
spelling of the speaker to "Dr. Mark Lu0~iiiiiiiiiiii::i::!~i?:iiii!iiiiiiiiiiiiii!iiiiiiiiii!i~!iii~ .......
MIS Libby/Smith approving the Midi:es of~:~!~'' R'~~!!!~;ting of March 1, 2000 as
corrected, carried by the followi~ii!~ll call::~i~te: AY~i:~:~:~'ouncilmembers Smith, Libby,
Baldwin, and Mayor Mastin. NO~i::i~one,:?:ii~'BSENT.:iiii~ouncilmember Ashiku. ABSTAIN:
..i:?:?:?:i:i:i:?:?:i:
4. RIGH'i~i~!i~EEAL D:EG~.S.i.'.'~?:~ ....
Mayor
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Coun..c....~ember" '~'-"-'~Bai~i~ii~.'questions concerning item 5b.
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C~cilmember Libb~!ii~-e~0mmended that item 5c be pulled from the Consent Calendar
~!i:'p..laced on the ag..~da for discussion. In regard to item 5a, she referenced page 16,
~~1Supplies,..~hqent to Friedman Brothers Hardware in the amount of $560.58 and
{~iiii~.'e...r...:::.:j.t.e...~:.s.~iiii~i~' well as page 22, Special Supplies, payment to Parnum Paving, in
~~ii~i~'i and inquired if this went out to bid.
Finance Director Elton advised that "Special Supplies" is the title for General Ledger
account number 690.
City Manager Horsley explained that staff will inquire about the Friedman Brothers
March 15, 2000
Page 1 of 19
purchases and noted Parnum Paving purchases for rock, sand, and gravel, were most
likely used for street repair, special projects, and landfill in account number 820.
Councilmember Libby inquired as to how the City determines which business they will
use to purchase gas.
City Manager Horsley explained that the City goes out to bid and obtains several Iow
bidders who can provide a card system that the City started several years ago. She
explained this bidding system ........
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Mayor Mastin advised that Items 5b and 50 will be heard as 7g;~i~':..~::..~iiii!~';Pectively. In
the future any Councilmember who has questions c~rningiii!iii!~~ such as these,
shou. ld contact staff ahead of time so they will be prep~!i~ an~i~ii~..U.....estions at t~
meeting.
M/S Baldwin/Smith approving item 5a of the Con~t.'::~i~.a...t~:~ar as
a. Approved Disbursements for Month of Februa~i~iiiiiii!~ .... ~. ....:"~:~ ........
The Motion carried by the following roll call vote:.:~~?ili~i[~embers Smith, Libby,
Baldwin, Ashiku, and Mayor Mastin. NOES: N.o...~.*e... ABS~iiii~.'.e..~. ABSTAIN: None.
o,
Ernest Jones advised that aendocin.~ii~::~'unty.:~i~{ii!~!~p~:~' tobacco settlement and
inquired if the City had any intentio~iii~"askin~ii~r S'~i~ii~'se funds.
City Manager Horsley explai..n...~i.li~at ab~:'i a yea...r..iii~igo the City had identified several
items needing funding such as::i~ii~creat~ii!~3enter.~:the Youth Center and a Skateboar, d
Park. At that time, staff .S:p....o~i?:to the ~.d.:::::.of:.:-!!i~i~ervisors, advising them of the City s
support fB~ii~e group....~ili!~~ was a~~i:~, $3- $4 million worth of requests, while
the Co.~ii!~ii~ld o~iiii~iii!!i~eiving '~:$::¥1~i~!~*illion. Since that time, the City has not
approa(~iii~ili~.o..unty ¥~ii~ii~.On of those funds.
Mr. Jones e~i~i!~ilili~t th;~iiii~~:?;::)f Supervisors has decided to form a committee
concerni .n.:.gii~::i::~~ii!~ii~0Pe~ii:i/there will be additional time for public input on how
the fund~?'~hould be ::~6a~i',iiii!i?,iiii?,!',?:,,
7.~ii!ii.! Ador)tion of.,.~gency Ordinance to Amend Ukiah City Code Section 7071
.~iiiiiiiiiiiiiiiiiii~: Reaardincl .R~:Adwav Soeed Zones
~i~ii~p.n..a-ger.~i~y exph~in~d that this project was budgeted and it has taken at least
~i!i~~i~i!ii~i~ extra staff and put the project together. It is good to see the project
c~ii~ii~":~i~:~ at this time.
Deputy Public Works Director Seanor advised that the proposed urgency ordinance
would amend Ukiah City Code Section 7071 to list all street segments in the City on which
the posted speed limit is not 25 miles per hour (mph). The ordinance is proposed as an
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Page 2 of 19
urgency measure so that the City can implement the necessary signing immediately rather
than wait until May 5, the date when a typical adoption process would be effective. He
explained that, by law, in order to provide radar enforcement of speeds in speed zones,
the City is required to update its speed surveys every five years. One of the main changes
in the speed zones is in the area of Gobbi Street, between Dora and Leslie Street which
staff is proposing decrease from 30 mph to 25 mph. The second location is on Low Gap
Road between Bush Street and the west City Limits, which is proposed to be increased
from 30 mph to 35 mph. In reviewing the proposed speed zones, the Public Safety
Committee had expressed concern that the 35 mph may be fast for a street.:.::.that is used
by a number of pedestrians and cyclists traveling to schools. ~:~ ..... ~.:..:iiiiiiiiiii?
He discussed the Low Gap Road speed survey an.d..~iii!~..e..view~!!!~i!!~ident rate and
roadside conditions. There are bike lanes and side~~!~)n b~!ili~i~!i~.f...=:..the street a~
no parking is allowed on Low Gap Road. He discus~ii~'he 85th..:~!ii~iii~[i~:.establis.~
by Caltrans Guidelines, with regard to establishing aiii~eed zo~ii~nd h~iii~i!~".J~i[~ii~;3w
City Attorney Rapport explained that in the prop~iii!~i~ce,~i Section 7071 is titled
"Excess Speed Zone", however, one of the propos~ii~~ii~iii~ less than 20 mph and
therefore staff is suggesting that the title be cha...n..i~ed to ~'~~i~.es E,,xceptions". He
also recommended the actual text of the o..[d..i~~ be ci~:~iii!~m Excess Speed
Zone"., under Section 7071, to "Speed Zo..::~ili~~~§:ii. He ~i~:ined that some of the
speed zones were set by resolution, rat~::[han ~ii~~::a.ndlii~e Vehicle Code speaks
specifically of an ordinance for the ~ss s .p....~d":~iiiiiii~i~refore, staff has included
those zones that were previousJyiiiii~'nly in~i~led ir~iii?i~iiiil;:i~solution and the amended
Discussion followed conc~...rni~ii![:he sp~?!iij~.i....t.~::::i~:' it was noted by staff that the speed
limit on al!.::~ets, unle~i~~ise po~i!iiii~i~ii~ph. Considerable discussion followed
concer~i~ii~:..her toi!!i~~.the sp~ii~iii~:~'~ on Low Gap Road.
Mayor Ma~iiii".~~:::.s. sed':~~~ii~i:t..h raising the speed limit on Low Gap Road since
there is incre~:~i~i~i~i~from t~ililHi~i::i~chool, Mendocino County Administrative Center,
and a new.::[~~iiii~~...e, x p~ed at the corner of Low Gap Road and Bush Street.
Should..:::~::"Speed I~iiiiii~~.e, vehicles will continue to increase their speed over the
limit ~:F,,h may result'=i!i~i~!~~sed accidents in the area.
C~cilmernber Lib~!i~hared Mayor austin's concerns. She expressed concern with the
~~ent complex,~.t.~::~be constructed in the area since it is unknown at this time what its
~ii~ill be on..t~C.
~!~:::~i!i~iiiii~~::'~apport explained that there is a roblem of usin, radar to e
~i~.--.::::::~::~:~:~ ~ ~ ~:..:.>~: ...... P g nforce the
spe~"'11~t'on Low Gap Road. He discussed the Vehicle Code which states that you have
to set the speed limit based on a traffic and engineering survey approved by the City
Engineer. The survey does not have to be approved by the City Council, however, the
ordinance amendment does need City Council approval. The survey is an engineering
determination based on Caltrans criteria. He inquired of Mr. Seanor that if Council finds
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Page 3 of 19
35 mph is too fast for Low Gap Road, would the City Engineer's office be prepared to
revise their survey to reflect 30 mph for that street.
Mr. Seanor answered affirmatively and noted staff would look into the matter.
Police Chief Williams explained that he was part of the Public Safety Committee and felt
it might be a problem to raise the speed limit on Low Gap Road because it would
encourage the younger drivers to go faster than the speed limit. He encouraged Council
to justify the speed remain at 30 mph on Low Gap Road so radar enf~.r::-~ement can
co n t i n u e. ::~ .... :~ii~ii::::i~ ....
City Attomey Rapport responded to an inquiry by Co.u.~i.!me~ii!~~u with regard to
Council adopting the proposed ordinance with the re~~ded '~iii~.Y..:.. advising t .l~..'.t
if Mr. Seanor sees no problem with amending the re~mende.d..::i~~{~iii~O.r Low..:~)
Road to 30 mph, then the proposed ordinance coui~ii~be am..e..~d
Low Gap Road segment under the 35 mph zone an~!ii~d.e..'i~i~:~nder the
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Mr. Seanor advised that staff can look at it again an~iii~~i~stification for the 30 mph
speed limit on Low Gap Road, based on the fact th~i~ ~~iii:.c..omplex will be located
in the area and other issues. He noted that the r..e.~0rt has"~i~~!i!~en approved by the
City Engineer and he would need to recertif, yi~::!E~iiiiiiiiiiiiiiiiiiiiiiiiiii?:~::.
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Seo ion 707
in A~ticle 4 of Chapter ~ of Division.~ii~"::0f the..::,~i~:~iiii~i~iiii~a'e Providing Speed Zones
Exemptions for the City of Ukiah,.:,.a..~: amen.,~g the ti~i~'~":~;ection 707~ to read "Speed
Zones Exceptions, and that Low..:,~?:Roac!,.:,:~auld be,:~ssified under the 3O mile per hour
zone; carried by the following r.~iiii~ll vote..i~ii~YES: C~cilmembers Smith, Libby, Baldwin,
Ashiku, and Mayor Masti.n:;... N.".:~S: No~ii~...S.E~: None. ABSTAIN: None.
City Cl~',iiUi~!a read!i~iii~!il.'..o..f the O~~'Ce.
Orc,,o. amenUing Section 707 in
Article 4 of ~~iiiii~iiii::;of Di~i~i~iiii~:'"of the Ukiah City Code Providing Speed Zones
Exception...~i::~ii~i~~i~i:ah, a~iii~'rnended; carried by the following roll call vote: AYES:
Counc~J~'mbers S'~iiiiii~i~i~by, Baldwin, Ashiku, and Mayor Mastin. NOES: None.
ABSENT:....... None. AB~:....'~i:?None.
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N~ BUSINESS
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~!iiii!!i!.~:. Authorize PJ~ment to the Inland Water and Power Commission of $8,000 to
!iiiiiiiiiiiiiiiiiiiiiiiiiiii.:C. over th~ii~:i{v of Ukiah's Share of Outstanding and Future Leaal ExDense~
'!~iiiiiii!iiiiiiiii!iiiii!ii!i~~iiii~) th~ Eel River Diversion and the Sale of the Potter~Valle~ Hydro
City Manager Horsley advised that the Inland Water and Power Commission
(Commission) has hired an attorney, Mr. Antonio Rossman, to assist all of the agencies
with the Potter Valley Project in the sale of the hydro project. The bills for legal services
have accumulated to $20,000 for January and February, and it is suggested that the
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Page 4 of 19
Commission budget an additional $5,000 per month up to June 30, 2000. The City's
portion of that would be $8,000. Staff is recommending Council approve a budget
amendment in the amount of $8,000 to pay the legal bills.
Councilrnember Baldwin explained that members of the Commission believe that we are
getting our money's worth. He inquired if there is any way to make a judgement about
whether or not all the work listed in billed hours is valuable or justified.
There was discussion of Mr. Rossman's work for the Commission and how te:..monitor his
billing statements .....
City Manager Horsley explained that for a calenda~?~ar it ...i~i!i~~ied $14,000 per
agency would be needed. The City would then be p..a.~$8,0~~i~i~xt fiscal yea~:
The City has paid $2,000 for the Inland Water and.~&~ver Co .~.~i~'~~~i~:.a. nd
for attorney fees this year, as well as $2,000 for I~iilyear's .~ney ~liiiiiiiiiiiiiiiiiiiiiiiiiiiliiii::i~i~i~i~?:!i!iliiiiiii!!iii~ .....
Councilmember Baldwin responded to an inquiry ~!~~i.!member Libb~:;~i~i~i~::"felt they
are representing Ukiah, by stating yes. At some poii~ii~ii~.mission will need to seek
voter approval for operating costs and that is the:~i~'S~i~ii~.'.e..y are currently working
on an educational video to prepare the voters f~:~' discU~iii~t increased fees or
assessment districts for taxation ..... ~?:ii::iiiiili~iiiiiiiiiii!iiiii~iii!i~
City Manager Homley explained that ~t.:::~::~:i.ime...iii~iii~~[s...s..j.~.,s!i budget was prepared
not enough was known in order to e~i~ate C.O..'~S. "::~iii~!ii~'°w preparing their budget
needs for the coming year ....... ~::!iiiii!i?' .~iiiii!?
Councilmember Baldwin e l~d that ~' Fishe :?~view ro '
xp..:::~:~:.::~:~.. .::~::::::::::::i: ~i~ G up s proposal of no more
than 15% reduction was acc~able byili;!~?:~m~~' of the Commission. They also want
to make .s...:~!~...t. hey can....~i!~~ on th~iiii~i!~!ili~e sale.
City A~~".~iiiii~po~i::iiii~~.. on-going legal issues. Most of the issues aren't
primarily leg:~ii!...i..~iiiii~ut h~~!ii::.,a...nd engineering issues. He also discussed issues
related to ade'~~i~!ii~mtecti~ii~i!ii~lmon and steel head in the Eel River.
MIRC ~!~/Bald~iii~~Bzing~! payment to the Inland Water and Power Commission
of $~!~ to cover Uki~:..._:....~ii~ of Outstanding and future legal expenses; carried by the
fol!~'ng roll call vote: ~~'i Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor
~!in. NOES: Non~iiliiABSENT: None. ABSTAIN: None.
:":*:~:::::::7-"~iiiiiiiiiii~&~i~:i3o,rt from the Electric Utilitv Outlininc~
::"'"iiiiiii!iiiiii!iiii.~!i~::bki~h s Electrical System anc~ Considerati~)nSvstemof alm°r°vementsB~dget Amendmentt° th:
in the Amount of $77,000
Public Utility Director Barnes gave a presentation outlining the electric system
improvements that have been accomplished since Fiscal Year 1991-92. Two rules of
electric utility operations are that 1 ) You will always have outages, and 2) No matter what
March 15, 2000
Page 5 of 19
you do, you cannot change Rule 1. He attempted to give Council a perspective of where
we need to spend money and what we will accomplish. He discussed the primary causes
of outages from: Animals - birds and squirrels (as well as humans), Trees, Transmission
switching, and System component failures - connections, switches, wire and transformers.
He briefly discussed the percent of outages and percent of duration for each of these types
of outages.
The goals for rebuilding a distribution system are: 1 ) Reduce the frequency of outages, 2)
Reduce the duration of outages, and 3) Understand the affect changes will hav. e on Goals
1 and 2. He summarized the System Upgrade to include: Trans[ormers~':i~ Program,
Pole Replacement, Meter Replacement, and Wire Replacement.,iiiiiiiiiiiiii~:.. .....
He discussed problem areas in the City with regard.~ii~":i:age;:~i~ii~!~..stern hills, t~
hydro plant hooked into the feeder at the nort~iiii!~:~d of U~?iiiiii~!iiii!~ntents
transformers must be in compliance with EPA
replacing transformers that are under EPA stan~? .......... ~ Public
hopes to have the remainder of these items chan~iii~i~:.s., budget year, ~iii!j~::'~epends
on time and availability of staff. He discussed "=~?iii~i~:.. calibration program and
replacement to raise the meter standards. He fu .r:t:~:"~i~~::=:the replacement of wire
within the system. He explained that there is ap~ximai~i~ii~ii~i.t.e..,s within the system.
He discussed circuits that have new wire,..:...:~iii~t..ed a r~iii~' of concern is the
underground section along Orchard Ave .n~ii!i~~ii!~ilBrush
He explained that one of their goals i.~i~:"use th~ili!~'~i~i~iii~:'""Low Gap Road, get rid of
the transformers, and make it a swjt~ing stafi:6n. T~iii~¥i'ngency plan during a power
outage was discussed with re~ii~ swit i g a He expressed a need for a new
feeder in this area so that they~ii~?~witc..b..'i~ound ~:~then pick the load up if there is an
outage. Their strategy basii=:~iii~en to.=~!~., a..=.=A.t':~g feeder through town. He further
discussed..==~i~ili~0ntingenc..yiii~ii?=~ke the ~~i~ssing on P.G.&E. poles in order to get
to the E~ii~bi St~!~i~=. He r~~= Council that the City's eak load in the
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summe¢::~ii~i~?~as 18.5:.~::~~s and last summer we had 32.5 megawatts. We have
doubled tl~:~i!~~iii[.o...ad O'~iii~ii~..wire. Typically the life of wire is approximately 30
He slides":~~iii~? inside of vaults and described the working conditions for
work~" going into th'~iii~S to find power outages, noting that at times they have to
pu~ii~ater out or dig ~:~1 and debris from the vaults. He explained that California is
v~!iStrict about pump.=.i~~ ..... vaults due to hydrocarbons and he further discussed the process
f~!ii~i..sposing of the=:~ter. He compared the overhead to the underground system and
~~sed techn~, for detecting outages.
~~~~ed concerning the cost of switches with a comparison of underground to
ov~~i=.~i~'es. Mr. Barnes noted that outages on overhead lines are of a shorter duration
because it is easier to find. Underground outages are more difficult to detect since all
transformers and pull boxes need to be opened to find the source of the outage.
He displayed a chart showing budget and expenditures for distribution, materials, and the
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Page 6 of 19
personnel for the period from Fiscal Year 1991/92 to 1999/00. He discussed the number
of personnel needed to complete the utility rebuilding project, the current number of
personnel in the department, and emphasized the lack of lineman employed with the City.
He estimated that the system is approximately 60% complete but noted the remaining 40%
will be difficult to replace. Their goal is to work on Orchard Avenue and Gobbi Street.
Councilmember Ashiku advised that he spoke to employees of P.G.&E. as well as Pacific
Bell and they were impressed with the fine work the City's lineman have been doing and
the quality of work from the Department.
Mr. Bames complimented Electric Supervisor Start Bartolomei an~iii~i~s. ~ii'i~3r their hard
work. He addressed Councilmember Smith's query r~[ding.~iii~.nstruction in the
Henry Street area, noting they were responding to a c~..-..~:~r se~i~i!~iiii~'r.::.o.m a busine~
having problems with their computers.
City Manager Horsley noted that people tend t~iii!~.e...t.=:~[' 10 years":"~i!iii!~~:Were
many outages and now there are a few during th~i~"_~i!iiiiiiB, ecause most o~i~{~""outages
have been in the area of Orchard Avenue, they have.ii~i!i~iilAIonger duration, although
the number of outages has decreased ....
Mr. Barnes responded to a query by Co.~,~i~~er Lib'~'"'~i!~!iii!~gard to when the
upgrade to the electrical system began, .b~i~~i~..t..~::it bega~iiii~::"the 1994 season. Of
concern at that time was the danger of r.[~!iii~"'the ~~ili~.i.!!:.s..?~[~ the use of copper wire.
He discussed the quality of copper wi~" and t~!~'m~iiii~~¢~l. It took their department
a couple years in order to ge.....t...:~iii~eir stewards ~!iii::i::~" plan established to make
improvements to the system. .::~iiiii!i!i!~ii~ii~i~i~II
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In response to an inquiry b:y..::.C~cflme~i?~!~iii~'ih regard to the projected time frame
for upgra~i~..t, he electr!~iii!~y~m, Mr. ~~~!i~B'vised that a lot depends on the amount
of man~ii~:ilable:?~i~ii.::p, lan wi'iii::i~i!~:"upgrading, and if the City will contract out
a portio~i~ii~..k.. He'::~~::the situation of having the funds to complete the work,
but lacking'"~~::. He {~~ii~~ined the problems associated with not being able
Counc....i..~::'~mber I'"'"~/~ii~iiii..0..f the opinion that the City needs to have the manpower
need~:~o get the wor~!i~i?~'"~ quickly as possible, rather than delay the completion for
se~l more years. ~:~'/~:~luested information on salaries so that Council can address
t~!~i:iii~sue during its r~ew of the budget.
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nager H i'ey explained that Personnel Officer Harris would have information
~~i~.g. ii!!~i~s, and noted that some information is obtained from NCPA. She will
~iii~~il with a survey and look at various options.
Ernie Jones advised that he was previously employed with P.G.&E. as a maintenance
electrician and spent time doing electrical design. He discussed repair problems and felt
the main problem is with the substation on Low Gap Road. He inquired as to the
March 15, 2000
Page 7 of 19
maintenance schedule for the vault sites, and wondered if part of what the City is looking
to improve would include improvement on the maintenance at these locations. He
discussed his experiences working with P.G.&E.
Councilmember Libby encouraged Council to take an active, positive approach to the
repair and upgrade of the electrical system so that the City's rate payers have a reliable
system.
Councilmember Baldwin inquired if there are plans to continue the Appren.'-tic~. Program.
He also inquired if it is state law to require a new subdivision to have:;unde~'nd utilities.
Mr. Bames responded that the Department plans to con...ti.'.~e the!~~iiCe Program and
the number of apprentices will depend on the amount.:~::.:::....~iii::..~!~ng. .......... ~:.:.i::i~::~:"':::~!iiii:::~ii?:~::"~i::~::i.C.... it y ordinan ~"
that requires new subdivisions have underground ~lities ....
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City Attomey Rapport related his experiences wh~i~.ai~ii~'evelopers
subdivisions within the City and argued strenuo~iii!~..use they hadt'~''y for the
improvements and installation of electrical servic~;ii!iii!i!~i!iii'.f::.'e.,[.t it increased the cost of
housing and they wanted to be able to purchase ~i~~ii~!i~..ould Cost less for them
to install. They lobbied the City Council and 0.....b::~.~ii~:ed so~.i~~~i:0ns, such as cable
and conduit. .-~-::~:~:~:~-~:~:~:~:~:~:~:~:~:~:~:~-~:~ .... '-::~::iii!i!iii!iiiiiiiiilili!iiiili~::~ ....
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Councilmember Ashiku recalled that ~ii::~:~ ::::::::::::::::::::::::::::::::::::::::::::::: [.or:..~?~lr Barnes' em Io ment
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with the City, was having the wrong..~!i~nnecto.'~', p'~!i~.i.'~nance, and trying to keep
rates Iow. He discussed maint..e..:~:ce iss..:~i~ and ~~:~::ihat Mr. Barnes has a good
understanding of the problem.s..~ii~in the..::iii~stem...~though maintenance is essential,
there is no need to patch som~i~''whe~i~ equip.:~'nt needs to be replaced in order to
affect a permanent solutig.,..n. ~iiii!i~e utilit..~ili~.,s...:.:t..O..:~ii~:~t certain pressures such as staying
within a b,..~:,t without.~~i~ates, a~ii~ii~iii::~ith the growth of businesses within the
commu~J~['~::a limit~ii§~ht of sta'~i~J:iable.
"::i:!:!:!:!:!:i:i:~:~:i:i:i:i:i:i:i:i:i:!:!:!:!:!.:. ' "'::i:i:i:i:i:?:~:i:i:~:!:~:i:i:i:i~:i:i:i:i:-::i:;..
· "::i:i:!:~"":!:ii!:i:i:i:i:::i:'":~:~;:":::
Councdm~~i~b.y dis~~ii~ii~.t..ential budget amendment for operating expenses
and recomme~ii~.i, ng th~!ii.:.'.$.~ii~0 until Council can look at it again during budget
review to ~iiii~ii~ii~iii.o. btair~:~:'i~'ditional linemen.
city.M~ager Horsle~!i~i~::that the money has been accepted in General Revenues.
8:~?p.m.- Recess .e...:~?
~ii::p.m. - Recon~&~ed.
ii!?:!::iiiii::ii!i!iii?:iiii?:i::i~ ...... ~i~!ilili::::~ ....
? iiiiiiiii!ii!iii 6 iaeration and Adoption of Resolution Revising Compensation for City
Clerk
City Manager Horsley explained that in 1997 the City Council approved a procedure for
recommendation of compensation of the City Clerk. Approximately 75% of the City Clerk's
responsibilities and duties involve other City staff functions. It was approved that the City
March 15, 2000
Page 8 of 19
Manager would meet with the City Clerk and other staff to evaluate and make
recommendations regarding compensation. Marie Ulvila was appointed City Clerk in 1998
and has proven to have excellent skills. She has organized many of the City Clerk's
procedures and constructed a Clerk's manual. This year she has accomplished two
significant projects. She organized the records retention boxes that were ready for
destruction and had the departments review their contents. This consisted of over 100
boxes due to nearly a two year backlog. In addition, she has reorganized the records
retention schedule, working with the City Clerk's Association, and will be returning to
Council with recommendations for some of those changes. This process invo~.yed meeting
with departmental staff to assess their needs. Additionally, at her .r:..eques~i!i~i~ City Clerk
compiled lease information for all City leases, as well as the Ai~h~'rs and for the
Ukiah Valley Conference Center, making it easier to j.d.'~ntify t..~~i~n dates and the
terms of each lease. ::~iiiiiiiiiiiii?~i?:~::~ ........ ~i!ii!iiiiiiiii!iiiiiiiiiili!i!!iiiii!iiiii~::. ~ :;~:~:~:
Overall, City Clerk Ulvila is performing in a
compliments have been received from the public. ~i~..r.....0..~:mended a '~!!i~i!~::~i'iving
increase, based on the cost of living figures of 4.2%:'~iii~:..San Francisc~i~:i:~nd/San
Jose Consumer Price Index, December 1999. The ir~~ii~..tween March 19 and June
30 equals $255, which can be absorbed by savings~j~::~:i~iii~~t~::City Clerk budget. The
goal for next year is to have Council consider th;~i~ity Ci~ii~i~Eensation adjustment
in April, to be effective in the subsequent fisc~....~::i~:.....~iiib....udget. "~ili~i~ssed this proposal
with the City Clerk and she finds the plaq:~~j~i?~ili~i~ .... '~!!i!!ii? ....
Mayor Mastin noted that the City Cler:.~iiii~:"an e!.~i~;~!i~~iiii~i~ inquired if she fell under
the same rule as Councilmembers .~{'h regal?to sal~i?~i~'ease.
City Attorney Rapport advise.,d.,ii~?~here.:::ii~' sepa~iiil;tatutes for the City Clerk and City
Treasurer and it has been ~rprete~.diiiiii~:.~..a!lo~i~ the incumbent to benefit from an
increase..:i~!i!ii~..ompensat. J~ii~ing thei~!iiii~!iiiiiiiii!i~e City Council falls under a different
MIRC BaI~~ ad0~ii~~...:u..tion No. 2000-32 approving compensation for City
Clerk; carried .~!~i~i~ing ~ii~iiii~te: AYES: Councilmembers Smith, Libby, Baldwin,
Ashiku, ar~..di::~~i?~(~::. NO~?'None. ABSENT: None. ABSTAIN: None
7e~:-...!iiii!?"Re_Dort of A~i~::"Northern California Power Association eecjistativ:
..~iiiiiiiiiiiiiiii? Conference -::~buncilmembers Ashiku and Libby
~cilmember Lib.'."~ explained that she provided Council With some written information
~ili~ recent...::~:~ern California Power Association (NCPA) Conference that her and
~~~i~hiku attended in Washington, D.C. She explained that in January, she
a:{~~i.i!~!iiii~o day conference in Sacramento which provided her with background
infor~'~{'i'0n on NCPA. She was also part of a legislative group and then went through a
training session on the framing of quality issues relative to NCPA.
There were approximately 40 people who attended the conference in Washington, D.C.,
March 15, 2000
Page 9 of 19
with about 16 being elected officials. Most of the jurisdictions had at least two
representatives accompanying them to Washington. The information provided to Council
concerned various issues that NCP^ are lobbying. All the issues concern keeping our
rates Iow for the consumer. She discussed the procedure for the various meetings, noting
that representatives were basically on-call, because the meeting times and days could
change at any given time. She explained that the congressional leaders of Senator
F einstein, Senator Boxer and Congressman Thompson would only see elected officials
because they represent voters.
Councilmember Ashiku pointed out that NCPA was not succe.ssful i.~iiii~i~quiring the
audience of Senators Feinstein and Boxer until they were able ~ii~.t.:~t they had 16
elected officials. NCPA has been unable to effectively..=:~mun.~iiii~i~'~ssues directly to
the Senator's and had been communicating with....::~i!ii~i~ staff;~!i!!iiiii~~!iiii~.S...~aff were ~
sympathetic to the interests of NCPA cities and a st~i~ate ha...d...::::i~:~i!i~~, on iss..u..~.
Councilmember Libby felt that the meeting with ~...:...~iii~:instein wa~?:~!~~icial.
With regard to the Trinity Water Environmental Imp~iii~.t..'~.ment (ELS), if thi'~:~i~"'diverted,
it could mean anywhere from $5 to $10 million per yi~iiii~:.~!~tern power. On the local
level, it could be anywhere from $28,000 to $58~ ~ii~!?~ii!i::~:..When they visited with
Senator Feinstein and asked that she look at a m(~;~'e mod~ii!~each to this situation
or other ways to address, she was very o,pen...~ii!~i~.t...ed her':=~;:?~iii~ok at the situation.
She basically agreed that NCPA doesn t ~i~i~ii~i~uch a s~'ent perspective.
Councilmember Ashiku discussed.:S~ator E~i:nS'{~i~i?~i~i~::direction to staff members
as to what she wanted done. ~i. lii.~xplaiq:~:'that t~:?:::~ii§''' that was developed by the
Department of Interior basically ~[~d to r.;~ce flow~ii~om the Trinity River to the Central
Valley Project in a significant.:~":"and ..i~iii!~oked a..t.:::i!~e impact it had on the Trinity River
as opposed to the enviro...n..m~l cons~.~.c..e..~iiii~i::i~ad for the entire Delta area and the
NC~i~ii~ument ~i!i~::i~e study should have considered a more
Sacrame~!!~asin. .:.~?~::~:. :~,~:~,' .~::~ ii:::~i?::~:::~i~?::::!:?~:::~::~ .... .
moder~ii~ii~d the~i~ii~:A$itive t(~::~!i::~:~vironment. There are other structural and
environ'~:.~ii~blem~i~ii~ii~ii~.t, er shed that need to be addressed and NCPA would
prefer to i::;~iii~~iiiii:pto i~i~~iii~:...e water shed and riparian corridor before leaping
ahead with t~ii~i~i~ion b~!i!ili~iii~e Trinity River. Fortunately, Senator Feinstein
understood::~!~ii~~?:impa~'i!iii~::~r constituents and the environment in the Delta area.
.....?..: -:.:.:-:.:.:.:.:.:.:.:-:.:.:.:-:.:-:-:-'
Co~ilmember Bald~i'~ii::~i:hquired as to who paid for them to attend the conference.
. ..:.:.:.:.:
~cilmember A.s..:~iAu explained that NCPA sponsored the entire portion of his trip and
~ii!~. portion..~iii~uncilmember Libby's activities. The City paid for some airfare for
~~i~ii!!~:ibby. He advised that the entire trip was work related and worthwhile.
i~!.ii~:!iiiii~!~:e money the City spent was well worthwhile and wished that more City
repre'~'htatives could have attended the conference. He found meeting with the Senators
and Congressman very informative. He noted that a number of times he has attended
NCPA meetings at his own expense and it is only recently that he has used a City vehicle.
Councilmember Baldwin inquired if the potential federal requirement that we would open
March 15, 2000
Page 10 of 19
our market, was an issue.
Councilmember Ashiku responded that it doesn't appear to be an issue and there does
not seem to be legislation this year that would be supportive to require opening of our
market. One of the big issues for the City of Ukiah, and all customers in California, is the
hydro divestiture of P.G.&E.'s hydro assets. A monopoly type situation is created whereby
a particular entity could acquire all the hydro assets and then manipulate the utility market
by putting the reliability and delivery of power, as well as the cost of power, at risk. This
is one of the big issues that was presented to the Senators and CongressmaB:::.'l'hompson.
There is also the issue of protecting the environment. These are all j.,ssues..~:"NCPA was
lobbying to exercise more Oversight in the sale of those assets....~iiiiiiii!i!i!iiiiii~..: ....
Councilmember Libby advised that Senator Feinstei~!i!~ered'~'~i~i!i~iLb. jll, with NCE~
creating the language for it. .:~ii~iiiiii? .... ....:?:~!iii?':::'~iiiiiiii!iiiiiilililili!iii!ili!i!i!i!iiii!~i!!i~: .........
Councilmember Ashiku felt that Senator aoxe~iii~:s..::~:...n.~ii?:~i:'nterested
however, if someone sponsored a bill, she woui~iii~i!iii!~e, rested in supp~!~'~ it. He
discussed the calculations of the royalties that N~i~iiiii~id to the Department of
Interior for the right to geothermal wells. Other com...~:hi~:~!i~~.i..B:g similar type fields on
similar type lands receive different treatment,..i':.'which "~i!i!iii~{~E.-.A. at a competitive
disadvantage. He discussed negotiation.s..:::~.:::~~::..Lake '~~~!?hd NCPA and that
Congressman Thompson has been very i~~i!i~ii~~ negoti~l~ns, to assure that, not
only Ukiah and Healdsburg's interest%~::~" repr.~..t..'~;~?~ii~:t::..:.t,~{ an equitable solution is
devi sea. ..::~ .... ..::i?:::!::~ ...... ~~:'.:~::
..:~iiii? .::~::~i::i::~ .... "::~::~iiiii!iiiiiiiiiiiiiiiiiiiiiiiiii? ....
..... -,:.:.;.:.:.:.:.:.:.:.:.:.:.:.:.:..
..........
..... ...:.:.:.: ~ -.-,-.,,-.-,-.-,-,-.-,-.-..
.:.:.:.:.:. · .... .....v.v.....-.v...-.
..... .,.,...,. ......
. ;;:;. ::::::::::- ..:.:.:.:.- .:::::::::'
He summarized that the confer~iiaealt ~ on-g0.i~ problems and challenges in flow
to hydro plants, excess royaltyii~::~ent~iii~ geoth.,e,'~als and to the entire market place,
how divestiture of assets i:..s. Sii~ult of t~ii~B1.8.:9..'~i!::i~:ihe Deregulation Bill, and how those
generatio.n...~::!~..S, ets are S.~i!!~i'the aff~i~!ii~ii' have on the market place. One of the
require~i~::i.d...ereg~i~ii!i~!i~ put s~!!~smission facilities and assets into general
public U'~i~!i!i!ii~!i~..cuss~ii~i~i~i...ta. x exempt status and how to make deregulation work
by having"~~i~ii~.pon~:'~iiii~!i?!~.dment to the IRS Code to provide for tax exempt
status, or reli~i~:i~i~..t.:..rule."::~?:~iiii~iii~ected that the Bill will most likely pass this year.
======================================================================== -...,.-.....v...v
~~;~~~:~:~:~:~~~:~:~:~~~:~~~:~:~~~~~:~:~:~~~:~:~:~~~~~~~:~:~:~:~:~:~:~:~:~:~~~:-;~~ '~:::::::::::::-'
~::::i:!:!:i~:i::::~:.:~...:~:~::::i:i:i:!~:i:i:i:i:!:i:i:i:i:i:i:i:i:i:i:i..:.:i:i::~
· ..::i:~:i:i:i:: .....
Counc~t~i~:~ber ~i~ii!i~sse'd the Bond Fairness and Protection Act and felt it is
fund~ntally a comp~~ii~asure since it does not advantage one market participant
ov0..~!i~nother. The la~i?~'i~t they were in Washington, they attended a Congressional
r~tion by the Calif~'nia delegation and it was well attended.
· i:i:i:i:i:i:i:i:i:i:i:i::. ..::!:!:!:!:i"
~i~?~iS U SIN E S S!i~i ii?
.:.:.;.;.;.;.;,:.;.;.;.;.;.;.;.;.;.;.;.;.:. ....;.:.:,;,;.:.:.:,..
-.:~::i~i?:i~i~i~i~::~Dls~--uss~.on of AB483. Billboard Removal Councilmember Baldwin
i:i:i:i:i:i:i:i:i::i:i:i:i:i:~:'::!:i:i:i:i:!:i:!:i:i:i:!:!:i:i':'!::"
'~BB!~ember Baldwin advised that he submitted information regarding AB483, as
pro~'""~'?by Assemblyman Wildman. He explained that there is some interest in bringing
back to local control the ability to regulate outdoor advertisement. He encouraged his
fellow Councilmembers to lend their support for the Bill. It was his opinion that there is an
epidemic of billboards along Highway 101 in inland Mendocino County. He noted several
areas where billboards exist in Hopland as well as the area between Highway 20 and
March 15, 2000
Page 11 of 19
Ukiah. Even though they are all in the unincorporated areas, he believes they affect how
the City of Ukiah is perceived by people who pass through the Ukiah Valley or choose to
visit Ukiah. He felt it is vital that whenever we can bring power back to the local level, we
should. He discussed the Outdoor Advertising Act, and noted that it basically denies local
governments the power to remove billboards without full compensation and is one of the
most pro-billboard Acts in the United States. He recommended Council send a letter to
relevant State officials asking that authority be returned to local government for regulating
outdoor advertisement. The letter would also be supportive of the concept of returning
authority to an act of amortization programs. He noted that driving north to .Eureka, after
passing Willits, there are virtually no billboards along Highway 1...( 1. He~i~i~ noted the
same is true driving on Highway 101 south of Hopland to Sono~!ii ~ .u..~i~'~' Even though
there are many wineries nearby, most people who like::~[~::tour ~j~ ~iii~ our community
find it less attractive due to the billboards. He recom~~d C(~'~ ~iiii~i~i~encourage t..~..~
County to work with the City of Ukiah if Highway_?~iii~i~l we re ..::~t~?:~ ~iii~[i. gible
declared a Scenic Highway, noting that billboards~ not a..::!!~d
Councilrnember Libby understood that the go~~~i::..can ask that ;i!ii!i~'~ii~;3ard be
Councilmember Baldwin explained that the"::~:=i~ildm~iiiii!iii~!iiii!ii!i!i~yocates that many
communities simply don't have the funds to p......a..'~i~ii~iii~mpen~i~i~¢iii~ave the billboards
removed. Mr. Wildman's proposal is to am~~iii~ii!~i~e base~!'""::.:'.~i!~i'ts original value over
a certain amount of years, depending o~::i.i.~?~'rigin~!ii~i~!ii~ili~b.e..::~i~iboard lobbyists are now
supporting denial of local governme~{~, abilit~ii!i~o':"~:. ~i!ii~::'a plan and they say that
billboards should be treated like ar~ .~er im '~nt d0'~::::i::~'sue which '
.... -Y..:~ ....... ~ ..... ' would require full
compensation, and issues of futur.:.~iii~rning.s...'iii~:~ well. ~refore, it is too expensive to have
billboards removed under the::~i~j'~g la'ii?
Upon a q..u..~ by May~i!ii~ii~ with ~~iiii~i?~'!i~; removal of billboards in the Scenic
Highway.:...i~~i~.tion, if!~iii~? by C~ii::~ernber Baldwin that the Scenic Highway
section"::i~iii~?~ii~te la~:~i~iii!i~?pt as provided in a different section, no advertising
display m,~iii!~ili~.d or "~~i~:. along any highway or segment of any interstate
higl~way, or p~:i~i!~~ay, t"~i!~~, on or after the effective da,,te of the United States
Code, is a~i!~~i~!~.......~ted ~ic Highway or Scenic Byway. He did not know how
a high~!~ecome~ii~i~..e.d as a Sceni,c Highway. He was also unsure if it could be
an e.!~nt that coul(Jili~ii~~'d in the City s General Plan.
;:.-:.';:::;::::. . ..... ...
C~cilmember Lib~i!~,as of the opinion that this is a County issue because the City has
a~i'i~[I~board ordinan~ili~ithin the City Limits.
:::::::::::::::::::::::::::::::: ..::iiiiii!ii~!!::"
~~::i!~~.r..:::Baldw~n explained that Council has passed resolutions for and against
~i~iiii~!~:~::~f legislation in the past and endorses State legislation all the time. He
thou(~lS["[hat support of AB483 makes sense because it is important that power be returned
to the local level over key issues such as this.
Discussion followed concerning the restrictions that may be imposed on the County
concerning removal of billboards and compensation. The Outdoor Advertising Act was
March 15, 2000
Page 12 of 19
also discussed.
Councilmember Baldwin was of the opinion that the City should encourage the County
to join the City of Ukiah in working towards a Scenic Highway designation and also
encourage the State to return that power to regulate outdoor advertising to the local
governments, as it was prior to 1978.
MIRC AshikulBaldwin directing staff to draft a letter to the appropriate government
agency voicing the City's support of the AB483, Billboard Removal, and autb. orizing the
Mayor to sign the letter. ..~ ...... :~i::i:.:ii!ii? ....
. :':~:' ~:~:~ ~:-:~::.. ,: -:~ ~ ~:-~-.
Councilmember Libby was of the opinion that ..~:. pro~!!ii~ers should be
compensated in some way for the removal of billboard.$."ii~i~eir p~iiiiiiii~be was uns~
if she could support taking someone's personal prop~';rights w.J.~t?~a, ting t~.
Councilmember Ashiku explained that while th~i!ili~iii~; some e;~i~~ii~¥~e in
billboards as far as future use of that asset, he does'~i~der a billboard ~::~:~;;personal
piece of property, such as a residence. - ~::~~iiiiii~!~iii~i!~ii~ii!ii~iiii!~i~ii~iii!i!i!ii
Councilmember Libby advised that she has not....h."~;rd of"~'~~?i~ying that they do not
come to Ukiah because of billboards. ....:~i~::::ii!i~i!~!i!iiiii!i!iiiiiiiiiii~ii::i~::. ':~iiiiiiiiiiiiiiiiii!iiiiiiiiiiiii?:'
Councilmember Baldwin felt the City ~:~' to ~i!~i!i~{i~9~t'ics so that more people
will be attracted to Ukiah and felt bi.riChards .a..'~' a"~i~ii~i!i~e aesthetics on the Ukiah
Mayor Mastin explained th~iiiii~ii~0ard~!iiiii!i~nlike ~!~r signage, tends to be filled with
national ad ...campaigns rater ~n local .~~i~ii~?'lt is less of an asset to the area than
it would ~ii~:..Iocal bu..:~i~i!i~dvertisi~i?!i!iii!iiiiiiiiiii!ii!iii!~ilili::i~:''
Motion":"'"~~ii!i~i~the f'"~!ii~~iiii~.!, call vote: AYES: Councilmembers Smith, Baldwin,
Ashiku, ana~i:=~~iii~.stin.':"~:;~~iiiii~Buncilmember Libby. ABSENT: None. ABSTAIN:
7g...:~;idered":;~!~~ved Lease Renewal with South Ukiah Little League
May~ii~astin noted t~ii~i!!~m was originally item 5b on the Consent Calendar but was
pult~ at the request ~i!~:~ncilmember Baldwin.
~~cilmember B~win referred to page 2, section 4.3, which referenced the Little
~~::::..spons0...[~!i~ race. In speaking with Community Service Director DeKnoblough,
~ii~~ informed him that this is a typographical error. He also expressed
~ii~!~e South Ukiah Little League is expected to maintain a fence which prohibits
access to the adjoining properties to the south and the west. He referred to Council's
previous approval of construction of a fence around the perimeter of the Gobbi Street
Riverside Park. He inquired as to why the City would construct a fence if the South Ukiah
Little League is expected to maintain a fence as well.
March 15, 2000
Page 13 of 19
City Manager Horsley explained that the fence that Councilmember Baldwin referenced
is for the Gobbi Street Riverside Park, which would extend back near agricultural lands.
Community Services Director DeKnoblough explained that the fence is located along
the perimeter of their ball fields and will help to retain baseballs and children from
wandering out of the area. The outfield in that area backs up to within 10 feet of the
property line and there is a house and yard nearby. This particular ballfield is not located
near the vineyard area.
.-::i::,.
Councilmember Baldwin also inquired of section 4.6 of the I~se th.~iii~fers to the
"...relocation, alteration, removal, construction, reconstruction of .~i~m~¥~ipal or private
facilities...", and noted the section does not say "with Ci...t..~iii~prov..~iiiiiiii~iii~.nquired how this
section would coincide with the fact that the City wo~?~iii~ to c0'~iiii~.opment of t~
Gobbi Street Riverside Park in the future.
Mr. DeKnoblough explained that before the S~i~i::~~::"Little Lea~!iii~!ii~' any
improvements or alterations to the property, they wo~i~ii~iii~;....quired to obtain ~:~:~0val from
the City by submitting plans, as noted on section 4.~ii~iii~~2 of the lease.
M/RC aaldwin/Ashiku approving Lease Renewa!....~:.ith So~!iii!~~i?~E'.[ttle League; carried
by the following roll call vote: AYES: Council. m~~:.Smith,"::Eii~iiii~i~ldwin, Ashiku, and
Mayor Mastin. NOES: None. ABSENT:..N~!i!ii?~~~N: No~?
7h. Authorized to Proceed with ~'uest ~i::i~i~~ii~Fp) for Cable Television
Renewal Consulting Servj.~
Mayor Mastin noted that this ~i~i!~as .o...:~!~inally it~' 5c on the Consent Calendar but
pulled at the request of Coun~i~mber.~i~by ....
· i::?:::iiii::ii::' ~:i!::!?:~::iiii::iii: ...::i~i~?:~::~i~i ....
Counci!.~er Lib~!iiiii~i~...ed as t~i~:!i~ii~" consulting fees are being paid by the
comm~~i~yst~iii!~~~::.0f us s'i~::"We are the ones asking for a consultant.
City Mana'~ii!i~ley ex'~i~~ii~t·~i Assistant City Manager Fled attended the group
· ..:.. +:.:...-..:...:.:.:... -.:.:<.:.-.:, =========================================
meetings reg.a..~l~.g.'i~::!~atter 'ea~e spoke to her about discussions at their meetings.
In previo..:~:~ii~::~i~!iii~~:.was '~' agreement that the cable company would pay for a
series..::~:"things, ir~:~i~i~iiiii~rchasing equipment for the public access educational
cha il In providing '~ii~ss there was a community benefit, type of charge used to
fu~ili~ese items from ~"~ble company, which was approved by the group at that time.
~!~!!i~urther explai.~~· that the consultant fee is part of the negotiations with Adelphia
..u...nicatio.n..~iii~d has not been agreed upon as yet. She noted that Council's vote
iii~ii~i!i~:~d with the RFP. If Council feels that the committee should not require
~ii~ii~'~, for the fees as part of the negotiations, then staff will advise the committee
of Council's actions. The RFP is to hire a consultant and does not determine who will pay
for the cost.
Discussion followed concerning negotiations for a cable franchise agreement and the
March 15, 2000
Page 14 of 19
ownership of the wires for transmittal. There was also discussion concerning Adelphia
Communications owning the system and how costly it would be for another provider.
City Attomey Rapport advised that the existing franchise agreement may have a
provision concerning the expiration of the initial term and may have language that require
the parties to negotiate a new term in good faith.
Further discussion followed concerning the City of Ukiah joining other cities as a collective
bargaining unit. It was noted by City Manager Horsley that the original ~..tract was a
joint group contract. The mason for hiring a consultant is because.=:.t:...h, ese ~tiations are
very technical and have many aspects of them and there is .~iiiii.O...n.~iiii~ithin the local
governmental system that feels they are qualified for ~i~positi~iiiiiiiiiii!iiiiii!iii!iiiiiiiiiiii.
Councilmember Ashiku was of the opinion that th~ili~'St of th.e..:ii~~~i~, shoul.d.-:!~
the burden of the cable company because it would ~!~ctly tr~i~3ted t~!ii~ii~!ii~i~ey
charge subscribers. He felt it is unreasonable, parti~!~:~:~ii::~nincorpora{'"~i!~~-':"::"~Vhere
certain citizens are not provided the service but w~i!~.e., to pay for the ~~ment.
Councilmember Baldwin expressed concern wit .h.:ili~::~'"~ii~ii!~. December 6, 2000 for
the consultants to compile community surveys, .~etings'i?::~iii!~ii'.ff....they will be able to
meet the requirements within this time frame~i::iii?~ii~iiiiiiiiiiiiiiiiii~ii::i~ .... "::~iii~i?~iiiiiii~i~ii~i!iiiiiiiiii~i~ii?
Ms. Horsley advised that the committ.~!!i6~gan:~i~ii~:' ....... ~::~rly a year ago and there
has been some delays. She assu~B that .i..t.:i~iii~a~:~::~iii~~ary for the parties to the
negotiations to extend the Dece~' 6, 20~?{imelin~ili~i;~g negotiations. This type of
consultant has experience neutering c~{:~acts w.~!:'cable companies throughout the
United States, and can very c[~i~Ely revi~:~the coD. t'~ct.
:-:-i:i:i:!:i:!~' .;.:ii!i.:.-'iiiii~i~ii -'~:::::::!:::::
Mayor M~tl. was of th~ii~~;3 that itiiii~!!~~i'ate to have the cable company pay for
the con...s...~?i~s sin~ii~iii~ically '~ii~::~:'n~onopoly on it. He was unsure as to how
City Manage~i~i~ili.-.e. xplai':~ii~!i~:[=ort aragg tried to get involved with the rates, but
found tha..t..,,~ili~~~i~S,::.horr~a'0us and did not pursue it.
City.::~[~3rney RapP~!iii~i~:i'ned that there is a new Telecommunications Act which
re~tes how local jur~i~ns can become involved with rate setting. He explained that
S~ Federal Court ~ii~ppeals decisions have said that setting rates for cable television
~:anies is a vi~!~t~on of the First Amendment rights of the cable company. In 1996,
~~...s.s respo....~:'with the Telecommunications Act, provided some standards and put
~i~iiii~[ff~!~!~'n the jurisdiction that wants to regulate rates. The jurisdictions can do
it?~~i~i~::~""~ not easy.
Discussion followed concerning other types of technology taking a monopoly away from
cable companies. Cable companies aren't just competing against other companies that
may want to take over the wires, but are competing against those that are selling access
March 15, 2000
Page 15 of 19
to programming, Intemet through satellite connections, telephone lines, and other things.
City Manager Horsley advised that the City received a letter from the cable company that
they plan to diversify into various areas in which they will be competing directly with Pacific
Bell and others.
Discussion followed concerning the negotiations and the cable company meeting the
previous requirements of the franchise agreement. The relationship of the consultants and
Adelphia was briefly discussed
MIRC SmithlAshiku authorizing staff to issue a Request for P~.a...[ii!i~:~'P) for Cable
Television Renewal Consulting Services .....
Councilmernber Libby inquired if the motion pass~!!~ould it .~ili~~::..ofi the ,~
and if another directive by Cou, ncil would be need~ili~o the..~i:e cor~:~i~~ii~::"be
responsible for the consultant s fee.
City Manager Horsley explained that the committ'~iii!i~!!!i~nding to ask that the cable
company pay the consultant's fee. Therefore, if C~i¥ii~~ii::.t..hey do not want that to
happen, they can direct staff to inform the comm. i.t."ii~e that~!~ii~t in agreement.
Councilmember Baldwin referred to p..:a~!iii~i!i~iii~ii!i~June 3'ii!!!i~i~8 Agenda Summary
Report, last.paragraph, in which it was..~.:t...'~ii~d th~ii~iiiii!!~?ii~..e..::!y~:~i~resents authorization to
proceed with the concept of hiring a.~hsulta~i!!::'." ....
Motion carried by the followi.n..~iiii~il cal!:~iiii~te: AY.~': Councilmembers Smith, Libby,
Baldwin, Ashiku, and Mayor ~~i NQ~: Non~iiii~'BSSNT: None. ABSTAIN: None.
Counci~~~Smit~ili~ii~::t..hat or{~~"2, 2000 he attended a meeting of the Main
Street B6"~iii~?~..ctors i:~ii~ii~i~g and then a Main Street Board Recognition Dinner
later that ni'~!iiiiiii~iii~y of {'~iii~~te which the City received was sent to Council. It
was a very weiiii!~~ mee:~:~iiiiiiii?
He rep~':'ihat se~i~ii...C, hesbro visited the Ukiah Valley Association for Habilitation
(UV~i~:::facility and he':'~~iiii~"him further about City concerns, especially about the Eel
Ri~:'diversion plan..~i~i~i~i~i:' ":,~ ....
.-:::::::::::::::' .::':i:i:i::
~cilmember .L..~y reported attending the Town House Meeting on March 2, 2000.
~~'.O..r. Chesbr:eli~s in attendance and discussed his concerns about medical care.
~ii~~; County Film Advisory Committee is moving on.
The Chamber of Commerce plans to come before Council in May requesting $19,000.
She had recommended to them that they not approach Council in June for funds, since the
budget would be close to being finalized. They will be contacting each Councilmember
March 15, 2000
Page 16 of 19
and taking them to lunch, asking about their concerns, and inquiring if there is anything
they would like to see the Chamber doing, or not doing. They are looking at increasing the
membership dues by possibly 3% or more. They are revising their current Status and
Policy and Procedures Manual and she has a draft copy available for those wishing to
review the document. Their Organization Structure, Policies and Procedures, as well as
their Employee Handbook is also in the process of being revised and she has a draft copy
available for review.
Councilmember Baldwin inquired if Councilmember Libby had seen the B!....~ Avenger.
..::::::::::::..:-'
~:i-.
Councilmember Libby advised that she helped at the booth .~iiii..{...h...e..iiiiiEDFC Business
Symposium and stayed to hear their speaker, who w...~:spons.'.:~iii~iilthe Chamber of
Commerce. She briefly discussed the speaker, wh~ili~ke or~:~!~i!i!~i~s issue. T~
Chamber plans to hold the Business Symposium a~i~ and
to make it better and to increase attendance.
Councilmember Baldwin reported that the Mend~~i!~nty Inland wa~iii~ Power
Commission (IWPC) is going forward with the pro~?~?~?~e..ate an educational video
using Sonoma County Water Agency money. Th.e..:.iiii~iii~iii~...ng on finding someone
to compile data and create a narrative for the 3.0.'i::.:minutei~!~~:30,000 educational
video. There is a lot of controversy regard!.~...g...i?~'ii~posed"~iii~und the lake. The
growers in Potter Valley are extremely ne~iii~i?~, to be '~'ing in total opposition
because they are concerned about the:::ii~':~lang~ii!~~..e......s.::~t affecting their ability to
practice agriculture and are also worri:~i~bout ~:~p~~i~al around the lake. There
is a meeting scheduled for March.~l:~i!~in Pott~i~/alley.~?~il
Discussion followed between...!iii~"'~ncilm~'ber Ba:!~in and City Manager Horsley with
regard to having a present.a...ti~ii~ Coun~ili~JW..~iiii~'ttorney, Antonio Rossman regarding
where the::~:.!~...PC stand.::~ii~!~i~ie work i~i:~i.i~ing.
Counc'i¥~~~i?::Ashi'~i~i!ii~~d that ai the last LAFCO meeting, the entire agenda
addressecJ'~:':':{~ii~!~:, of a "~[~ii~i~...:h was performed by a blue ribbon committee with
regard to rec~~i~..t...i.0ns ~i.i~ges to overhaul LAFCO. One of the significant
componen..t:..s...ili~ii~i~ii~...Spec~i::i~bistricts is LAFCO's vicinal law that would require all
membe.r...:~!i!~¥ LAFC~::::i~ii~iii{..h.....eir fair share. Currently, the County pays for LAFCO. It is
unce..:~i~ if it will eve~!.~~:='law. There were other revisions that were recommended
as.::~"as redistricting.i~i?~:~0ol district, expanding some of the authority of LAFCO and
ta..~i~g some of the a~hority of subdivisions away from local planning departments and
~i9g them part.,,~:.~'review by LAFCO. If the entire policy recommendations were
i~!~ented, it ~~ create a super agency. Therefore, it was the consensus of LAFCO
{~iiii~ii?~b~::?:~'i:bn, similar to other LAFCO agencies, to oppose some of the major
I:J~:. ~~iii~:~es. There is not a I°t of activity at the current time with LAFCO.
He will attend the next NCPA meeting on March 23, 2000.
He reported speaking with Featherlight today and they are very pleased with the
assistance they received from Mike Fled and other City staff who participated in the project
March 15, 2000
Page 17 of 19
review for their manufacturing facility at the Airport.
Mayor Mastin advised that MSWMA met in special session on March 14, 2000 and the
North State Street property is officially on the market. The Board chose Realty World as
their brokers for the 9+acres on North State Street where the consolidated transfer station
is planned to be developed,. The asking price is ,$1.025 million· It is hoped that MSWMA
will be able to sell the property quickly and they have had a number of inquiries already.
The proceeds of that sale will first go to pay off the loan and the remainder coming back
to the agencies that are part of MSWMA, to decide what should be done w..:Ltb the profit.
He estimated that the loan balance on the North State Street?:::prope~iiiii~ less
$W5~~,~00. ...ili!iiiiiiiiii~i ........ i~i~iii!iiiii'" than
· egard to the Taylor Drive site, he advised....,iiii~iii~:'the '~iiii~iii?~..t..i..~::...being ,ega,
challenged. He received word today that Redwood~i~i~:ealth
a law suit. There was a brief discussion concernin~ii~he dead~l~"'~ for
the matter. He discussed the Taylor Drive siteii!ili~sibt~!iii~i:~gal chall~~iiiiii~"their
attempt to move forward with the project. :~::~::::!::!ii!::i::!i!::::::i::i~::!i::!::!i!::!::::::~::::~::.. '"':':::-':::-':-':
He advised that he will miss the April 19 City Co .u.~¥:"~~ii~:..he will be on vacation.
He was suppose to meet with the Mendocino Cou'~'ty Gra'~:'~iii~i!ii~i.s. week, however, he
received notice that the meeting was cancele.~i::~!i~ or ma~!i~iii~ii!~scheduled for this
year. They wanted to meet with him to d.i~{iii~ii~i~:.s oper~":~s and practices.
City Manager Horsley reported th~t..!::~e rece.~d a ca[~ii~ from the Employers Council
because they have not received.~i!i~SVP..~ Coun~i~embers concerning the reception
on March 24, 2000. Council~~'~rs U~/, Ashi..k~?nd Mayor Mastin said they would
Mayor.:~i~iii~.dvisea!~iii~i~::will b~iii~ii!~i~I event and to be aware of the Brown Act
regulati~ii~i~i~ree "~~...mbers will be in attendance.
City Manag~ii~~~i~::..furtl,~'~ii~i'~d of a meeting on March 16, 2000 at 7:00 p.m.
regarding..~.r...'.'~iii~i~i!iM.~as~ for the Clara Avenue/Ford Street.
Coun~'~ii~embers~i ilLi~ii~~'d her desire to attend that meeting.
~i~anager Horsle~i~dvised that the City received a letter from Ascot Air and they have
~~d to change.~.t.:~ir initial schedule to only one flight a day, around 10:30 or 11:00.
~ii~.i. II return..:::..-..t-.~iii!~°uncil for approval of their schedule and lease agreement for their
~!~i~iii!i~:'"have a list of all their fares for five destinations.
Ci~i~::::~Jlvila advised that the Fair Political Practices Commission recently sent a copy
of the Political Reform Act of 1974, as amended to January 1, 2000, and is available in the
City Clerk's office for review. She reminded Council that the Fair Political Practices
Commission Form 700 - Statement of Economic Interest is due in the City Clerk's office
March 15, 2000
Page 18 of 19
April 3, 2000.
She reported that she missed the last Council meeting due to a trip she took to
Washington, D.C. with her husband. He and other members of the Mendocino Private
Industry Council and the Workforce Investment Board (WIB) were attending a conference
there. She had an opportunity to meet with Congressman Thompson, as part of this group
and received a tour by his aid of both Congress and Senate.
She explained that she will be absent from he April 5, 2000 Council meeting.;.a.s she plans
to attend the annual City Clerks Association of California conferen ..c~e in C~:~'d. Deputy
City Clerk Karen Yoast will take the minutes at that meeting.
9:55 p.m.-Adjourned to sit as Ukiah
10:00 p.m.- Reconvened.
a. Public Employee Performance Evaluati*:::.~iii~!i!M.anager---'-----~ "--'-*
MIRC Smith/Libby approving 4% increa~iiii~i!~iii~ii~...a, nage~i~ili~lary contract; carried
by the following roll call vote: AYES: C .o..~ilme~~!i~t...h~::~:~!~y, Baldwin, Ashiku, and
Mayor Mastin. NOES: None. ABSE~:~
..::::::::.-
====================== ':*:*:':':'* .ii!i:*:.i!"
ADJOURNMENT ii!iiiiiiiiiiiiiiii ..... ........ :" .':':':'?'
13. ..::!i ::?.:::::::::r .........
· .::::,-::::¥ ..:.;.:.:.:
There being no further bus in .e.~!i?i'he m~i~g was::ii'~ourned at 11:45 p.m.
· '~:~:~:~:~:?' iiiiiii!~ ..... !::i~ ....
..:.:,:.:.:.:.:
~iiii?:iiiii!?:iiiiii?:..,,:.:.:.:..":::::'": ....
March 15, 2000
Page 19 of 19
ITEM NO. 6.a
DATE: April 5, 2000
AGENDA SUMMARY REPORT
SUBJECT: INTRODUCTION OF ORDINANCE REZONING PORTIONS OF ASSESSOR PARCEL
NUMBERS 003-471-27, 003-472-13, AND 003-472-14
SUMMARY: Approval of the proposed Rezone (#99-51) would change the zoning for an 8,743 square foot portion
of land from the C-2 (Heavy Commercial) Zoning District to the C-N (Neighborhood Commercial) Zoning District in
order to provide the proper zoning category for the development of an assisted living facility on the affected property.
The affected area is currently located on the western half of Assessor Parcel Nos. 003-472-13 and 003-472-14, but
would be made part of Assessor Parcel No. 002-471-27 once a separate Boundary Line Adjustment application (#99-
53) is completed. This item is before the City Council because all zone changes ("rezoning") are legally accomplished
by ordinance, which is a legislative act requiring Council introduction and adoption.
Background: On March 8, 2000, the Ukiah Planning Commission approved a Major Use Permit (#99-52) to allow
the development of an assisted living facility on a 2.5-acre project site that includes a portion of a parcel in the C-N
(Neighborhood Commercial) Zoning District and portions of two parcels in the C-2 (Heavy Commercial) Zoning
District. Most of the assisted care facility would be developed in the area zoned for C-N uses, but the Planning
Commission made the Use Permit approval contingent on the approval of the Rezone application since some
development would also occur on the portions of the site located in the C-2 zone.
The Planning Commission also voted 5-0 to recommend that the proposed Rezone be approved, based on the fact
that the change in zoning and the resultant transfer in ownership would be consistent with the Ukiah General Plan
and would not affect the commercial viability of the portion of the site remaining in C-2 zoning. The Commission also
noted the rezone would allow the development of the proposed assisted living facility with a twenty-foot rear yard
setback, which is wider than the required setback of ten feet.
The applicant has also applied for a Boundary Line Adjustment (BLA #99-53) to allow the common property lines
between the contiguous parcels to be shifted 20 to 100 feet to the east, which would allow the facility to be developed
without buildings crossing over property lines. This BLA application, which was tentatively approved by the City
Engineer on March 23, 2000, effectively allows 2,648 square feet of land from APN 003-472-13 and 6,095 square
feet of land from APN 002-472-14 to be transferred to APN 002-471-27.
RECOMMENDED ACTION:
1. Conduct a Public Hearing regarding Rezone #99-51;
2. Approve the Mitigated Negative Declaration prepared for the project; and
3. Introduce the Ordinance rezoning affected lands from the C-2 Zoning District to the C-N Zoning District.
ALTERNATIVE COUNCIL POLICY OPTION:
1. Do not introduce the Ordinance and provide direction to staff.
Citizen Advised: Publicly noticed according to the requirements of the Ukiah Municipal Code.
Requested by: Firstmark Group, Inc.
Prepared by: Dave Lohse, Associate Planner
Coordinated with: Candace Horsley, City Manager, Bob Sawyer, Planning Director, & David Rapport, City Attorney
Attachments:
1. Mitigated Negative Declaration/Initial Study (reference Attachment #5 for Item 8-b)
2. Proposed Rezone Ordinance with Site Plan and Zoning Map for Project Area
- Candace Ho~sl;gy,~ity Manager
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ORDINANCE NO.
AN ORIDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH
AMENDING THE OFFICIAL ZONING MAP FOR THE CITY'OF UKIAH, CALIFORNIA
The City Council of City of Ukiah does hereby ordain as follows'
SECTION ONE
Pursuant to the procedures set forth in Section 9009 of the Ukiah Municipal
Code, the Official Zoning Map for the City of Ukiah is amended to change the zoning on
a 2,648 square foot portion of Assessor Parcel Number 003-472-13 and a 6,095 square
foot portion of Assessor Parcel Number 003-472-14 from the C-2 (Heavy Commercial)
Zoning District to the C-N (Neigborhood Commercial) Zoning District.
SECTION TWO
This rezoning action and amendment to the official Zoning Map of the City of
Ukiah is necessary to establish a zoning classification (C-N) on the entire subject
property in which an assisted living facility can be accommodated.
SECTION THREE
This ordinance shall be published as required by law in a newspaper of general
circulation published in the City of Ukiah.
SECTION FOUR
This Ordinance shall become effective thirty (30) days after adoption.
Introduced by title only on April 5, 2000, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Ordinance No.
1 Passed and adopted on ,2000, by the following vote'
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AYES'
NOES'
ABSENT:
ABSTAIN'
ATTEST:
Marie Uvila, City Clerk
Jim Mastin, Mayor
Ordinance No.
EXHIBIT "A"
REZONE NO. 99-51
5(~o, WA BASH
193
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75'
O2.
BEACON
L~NE
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Ordinance No.
Page 3 of 2
ZONING MAP
for
REZONE NO. 99-51
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1MILE
AGENDA SUMMARY
ITEM NO. 6.b
DATE: April 5, 2000
REPORT
SUBJECT: APPEAL OF PLANNING COMMISSION DECISION TO CONDITIONALLY APPROVE
MAJOR USE PERMIT NO. 99-52
SUMMARY: On March 8, 2000, the Ukiah Planning Commission considered Major Use Permit No. 99-52,
to allow the development of an assisted living care facility with 43 apartments on a 2.5-acre portion of a
project site made up of three contiguous parcels located in the C-N (Neighborhood Commercial) and C-2
(Heavy Commercial) Zoning Districts. After conducting a public hearing, the Commission approved both
the Negative Declaration prepared for the project and the Use Permit to construct the proposed facility. The
approval of the Use Permit was based on the Findings included in the Planning Report (attached) prepared
for the Planning Commission. The approval was also subject to the twenty-five (25) Conditions of Approval
included in the attached Use Permit Agreement for the project, including five conditions added by the
Commission at the hearing.
On March 17, 2000, Ms. Rita Samols filed a timely appeal of the Planning Commission decision to approve
the project. The appellant was not present at the hearing, but she did provide input through the submittal
of a letter (attached) that expressed concern with the potential for noise, dust, and fumes caused by the
construction of the proposed facility. The appellant was also concerned with the potential disruption of
"peacefulness" caused by the loss of the open field and the construction of the facility at a distance of
twenty-five feet from the house she rents.
(Continued on page 2)
RECOMMENDED ACTION: 1. Conduct a Public Hearing regarding the appeal of Major Use Permit No. 99-52, and
2. Deny the appeal and approve Major Use Permit No. 99-52 as recommended by the Ukiah Planning
Commission
ALTERNATIVE COUNCIL POLICY OPTION:
1. Approve the appeal and deny Major Use Permit No. 99-52.
Citizen Advised: Publicly noticed according to the requirements of the Ukiah Municipal Code.
Requested by: Ms. Rita M. Samols, Appellant
Prepared by: Dave Lohse, Associate Planner
Coordinated with: Candace Horsley, City Manager, Bob Sawyer, Planning Director, & David Rapport, City
Attorney
Attachments:
1. Letter of Appeal from Ms. Rita M. Samols
2. Use Permit Agreement with Conditions of Approval
3. Letter of Opposition from Ms. Rita M. Samols
4. Planning Report for Major Use Permit No. 99-52
5. Mitigated Negative Declaration/Initial Study for Major Use Permit No. 99-52
APPROVED:
"~"'~-~andace Horsle:~, lty Manager
The Planning Commission discussed these concerns at length, noting that standard dust suppression
methods and the restricted hours of construction included in the conditions for the project should provide
adequate protection for the occupants of nearby residential buildings.
The Commission also discussed the potential for reorienting the proposed facility and its parking area to
provide an additional setback for the one-stow structure, but reached a consensus that the twenty-foot
setback should be sufficient to reduce noise impacts and loss of privacy. Individual Commissioners also
agreed with staff and the applicant that the development of the parking lot next to the southern property line
would cause greater long-term noise impacts than the building would since it would introduce regular human
activity, lighting, and noise into this area. The Planning Commission also cited the fact that the five to seven
additional trees required by the Commission for shading of the building's south side will provide additional
screening of the building and additional privacy for the residents to the south.
The letter of appeal cites the same reasons listed in the letter of opposition submitted to the Planning
Commission, and no new issues are raised. Therefore, it is the conclusion of Planning Department staff that
the appeal of the Planning Commission's decision to approve Use Permit No. 99-52 should be denied.
1371 Berkeley Wa),
Rita M. Samo!s
Ukiah, California 95482 , 707-462-9396
e-mail: npeck@pacific.net
March 17, 2000
Eric Larson, Chair
Planning Commission
Ukiah, California 95482
RECEIVED
2{}00
Dear Mr. Larson,
THIS IS AN APPEAL of the Planning Commission's approval on March 8 of permit application
No. 99-52 for Firstmark Group, Inc.
In speaking with the Planning Commission secretary, I was not sure to whom I am supposed to
appeal, so I am sending both you and the Ukiah City Council an appeal.
I am deeply concerned about this proposed building project. It impacts the quality of my life to the
extent that I almost certainly will be forced to move from my home, for the following reasons.
· The house I live in is about 25 feet from the wall of the proposed building. We're not
talking about another house; we're talking about a nearly-39,000-square-foot monolith.
· I make my living at home. The impact of noise, dust, and fumes while the facility is being
built will endanger my health, my peace, and my comfort for an extended period of time.
The Planning Commission's notification process leaves much to be desired. I have lived in this
house for six months and have never received notification of this proposed project that will impact
my life so greatly. I only found out about it when I read the story in the UDJ.
I cannot help but believe that if any member of the planning commission lived where I live, this
project would never have been considered, much less approved.
To reiterate, I APPEAL the project and I PROTEST the notification process.
Sincerely,
Rita M. Samols
CITY OF UKIAH
USE PERMIT
APPROVAL AGREEMENT
Project Title:
Project Applicant:
Project Location:
Major Use Permit No. 99-52
Firstmark Group, Inc.
1343-1345 South Dora Street, Ukiah, Mendocino County, CA
Pursuant to Ukiah Municipal Code §9263, Major Use Permit No. 99-52 was reviewed and
approved by the City Planning Commission on March 8, 2000, with the attached
Conditions of Approval being made components of the project's design and development.
The applicant understands that all of the approved Conditions of Approval must be
implemented in order to comply with the terms of the Planning Commission's approval,
and that failure to satisfy such terms constitutes justification for the City withhold~n9 ~.he
final Building Permit and/or initiating revocation of the Site Development Permit.
Decisions of the Planning Commission, including the imposition of Conditions of
Approval, may be appealed to the City Council no later than May 10, 1999, provided the
interested party attended the hearing and stated his or her position on the project
appealed. Decisions of the City Council are final in terms of City of Ukiah administrative
review or relief. However, pursuant to §1094.6 of the California Code of Civil
Procedure, an individual may have the right to a review of the City Council's decision by
a court of law.
Accordingly, the City of Ukiah hereby grants the applicant the subject Site Development
Permit, as conditioned, with the understanding that, notwithstanding referral to a court,
the project will be developed according to the approved set of plans and the approved
Conditions of Approval.
Issued by:
Date:
Issuing Agent of the City:
City of Ukiah Planning Department
March 9, 2000
Associate Planner Dave Lohse
Signature of Issuin
c: Code Enforcement Officer
CONDITIONS OF APPROVAL: The following Conditions of Approval shall be made a
permanent part of Major Use Permit t/99-52, shall remain in force regardless of property
ownership, and shall be implemented in order for this entitlement to remain valid:
.
All use, construction, or occupancy shall conform to the application approved by the
Planning Commission, and to any supporting documents submitted therewith, including
maps, sketches, renderings, building elevations, landscape plans, and alike.
,
Any construction shall comply with the "Standard Specifications" for such type of
construction now existing or which may hereafter be promulgated by the Engineering
Department of the City of Ukiah; except where higher standards are imposed by law, rule,
or regulation or by action of the Planning Commission.
o
In addition to any particular condition, which might be imposed, any construction shall
comply with all building, fire, electric, plumbing, occupancy, and structural laws, regulations
and ordinances in effect at the time the Building Permit is approved and issued.
4. Applicant shall be required to obtain any permit or approval, which is required by law,
regulation, or ordinance, be it required by Local, State, or Federal agency.
o
Building Permits shall be issued within two years after the effective date of the Site
Developrnent Permit, or it shall be subject to the City's permit revocation process and
procedures. In the event the Building Permit cannot be issued within the stipulated period
from the project approval date, a one year extension may be granted by the Director of
Planning if no new circumstances affect the project which otherwise would render the
original approval inappropriate or illegal. It is the applicant's responsibility in such cases to
propose the one-year extension to the Planning Department prior to the two-year expiration
date.
o
The approved Site Development Permit may be revoked through the City's revocation
process if the approved project related to the Site Development Permit is not being
conducted in compliance with the stipulations and conditions of approval; or if the project is
not established within two years of the effective date of approval; or if the established land
use for which the permit was granted has ceased or has been suspended for twenty four
(24) consecutive months.
.
Except as otherwise specifically noted, the Site Development Permit shall be granted only
for the specific purposes stated in the action approving the Site Development Permit and
shall not be construed as eliminating or modifying any building, use, or zone requirements
except as to such specific purposes.
,
Improvement Plans for curb, gutters, sidewalks, driveways and street paving along Dora
Street shall be prepared by a licensed civil engineer in accordance with City Standard
Drawing Nos. 101 and 102.
,
All improvements shall be constructed in conformance with the approved improvement
plans under an Encroachment Permit issued by the Public Works Department. The
Encroachment Permit shall be submitted to the City Engineer for review and approval prior
to the City Engineer prior to the issuance of a Building Permit for the project with a fee
equal to three percent (3%) of the cost of the improvements.
10. All improvements shall be done by a properly licensed Contractor with a current City of
Ukiah Business License who shall submit copies of proper insurar~ce coverage (Public
Liability: $1,000,000; Properly Damage: $1,000,000) and current Workman's Compensation
Certificate.
11. The City Engineer shall permit no site preparation or grading activities on the project site
without the review and approval of a Grading and Drainage Plan. This Plan shall include
the following:
a) The extent of modifications to existing drainage patterns;
b) The extent of storm drainage improvements and erosion control measures for building
pads, driveways, parking lot areas, and other movements of soil;
c) The extent of other development the City Engineer determines could adversely affect
existing drainage patterns on the site or on abutting properties or could cause wind or
water erosion..
12. Stockpiled soil shall be protected from erosion; drainage from all disturbed and stockpiled
soils shall be directed on-site to a disposal location approved by the City Engineer.
13. All on-site paving shall be a minimum of 2" (inches) of asphalt concrete with a 6" (inch)
aggregate base, or, alternatively, any option approved by the City Engineer
14. Sewer, water, and electric service shall conform to the specifications of the City Public
Utilities and Public Works Departments.
15. A Landscaping and Lighting Plan shall be submitted by the project applicant and approved
by the Director of Planning prior to the issuance of a Cedificate of Occupancy for the
building. This plan shall include, but not be limited to the following:
a) A planting legend that includes the names, location, coverage area, and canopy cover
of proposed vegetation;
b) A planting schedule for all vegetation installed on the site;
c) A maintenance schedule for existing or proposed vegetation, including a watering
schedule and irrigation system design; and
d) A lighting plan for any proposed exterior lighting installed or otherwise used on the site,
including the design of the light standards used.
16. Landscaping on the project site shall include at least four deciduous trees that are either
native to the Ukiah area or adapted to its climate, shall be 15 gallons or more in size.
17.
Five to seven deciduous trees shall be planted in the 20-foot wide setback area
along the southern elevation of the building. The species, location, planting size,
and schedule for planting of these trees shall be reviewed and approved by the
Planning Director prior to the issuance of an occupancy permit for the assisted
living facility.
18.
All landscaping shall be maintained in a neat, weed-free manner, and may not be
removed or substantially altered unless the Director of Planning reviews and approves
the removal or replacement of vegetation determined to be diseased, unstable,
hazardous, or poorly located on the site. Any vegetation removed from the site shall be
replaced with similar vegetation approved by the Planning Director.
19. Any roof-mounted air conditioning, heating, and/or ventilation equipment shall be
aesthetically screened from view consistent with the architecture of the building upon
which it is located.
20. Outdoor refuse/recycle containers shall be aesthetically screened from view; garbage
shall not be visible outside the enclosures.
21. Hours of construction shall be limited to the hours between 7:00 a.m. to 7:00 p.m.,
Monday through Saturday unless additional hours of construction for special
construction activities or projects are reviewed and approved by the Planning Director.
22.
The width of the access driveway shall be reduced to a maximum of twenty feet
and located in a manner that would allow optimum opportunity to preserve the
oak trees located on the northwest portion of the site.
21.
A minimum of twenty-four parking stalls shall be developed on the project site
prior to the Issuance of an occupancy permit for the assisted living facility. Five
additional parking stalls shall be developed in tandem fashion along the western
property line or other location approved by the Planing Director if the Director
determines that additional parking stalls are required to alleviate persistent on-
site parking problems or circulation impacts.
22.
The development of the assisted living facility at the size and location shown on
the project site plans shall not be permitted unless Rezone No. 99-51 is approved
by the Ukiah City Council and Boundary Line Adjustment No. 99-53 approved by
the Ukiah City Engineer. A smaller structure may be permitted on the site sol
long as a 20-foot wide rear yard setback is maintained along the eastern elevation
of the facility structure.
23. Existing public utility easements shall be relocated to areas approved by the
Utility Department Director and the Director of Public Works.
24.
A recycling program that provides the oppodunity for all residents of the assisted living
facility to recycle shall be implemented by the facility managers prior to the occupancy
of any of the units and shall remain in effect so long as they are occupied. This
program shall be reviewed and approved by the Planning Director prior to its
implementation to ensure it provides an efficient method for recycling and is consistent
with the requirements of the Municipal Code.
25. All conditions that do not contain a specific date or time period for completion shall be
completed prior to the issuance of a Certificate of Occupancy.
CITY OF UKIAH
PLANNING REPORT
DATE: March 3, 2000
TO: City of Ukiah
FROM:
City of Ukiah Planning Department
SUBJECT:
Rezone No. 99-51 and Use Permit No. 99-52
APPLICANT:
Firstmark Group Inc.
PROJECT SUMMARY: The proposed project consists of Rezone No. 99-51and Major Use
Permit No. 99-52. Approval of these projects would allow 8,743 square feet of area from the
two smaller parcels on the site to be rezoned from the C-2 Zoning District to the C-N Zoning
District, and the construction and operation of a 43-unit assisted living facility on the western
portion of the project site.
These projects are being processed concurrently with Boundary Line Adjustment No. 99-53,
which will be heard by the City Engineer in a separate hearing. The approval of the property
line adjustment would allow the 8,743 square foot area proposed for rezoning to be transferred
from the smaller lots on the site to the larger parcel on the west. This area would allow the
proposed assisted living facility to be constructed with a rear yard setback of twenty feet (20').
The discretionary actions associated with this project are quasi-judicial in nature; therefore
each decision-maker must physically and personally visit the site prior to participating in the
vote to approve, disapprove or modify the projects.
LOCATION: The project site consists of three contiguous parcels, including a single lot (APN
003-471-27) located at 1343-1345 South Dora Street and two lots (APN's 003-472-13 and 14)
located at 1346 South State Street. Most of the development activities proposed in the projects
described above would occur on the western parcel, which is accessed via an unpaved entry
located between the convalescent hospital on the parcel to the south and the parking lot for a
church facility on the parcel to the north, or at the termini of Berkeley Way and Ranee Lane.
DEPARTMENT RECOMMENDATION: The Planning Department recommends
APPROVAL of Rezone No. 99-51 on the grounds the proposed rezone to the C-N
(Neighborhood Commercial) land use designation would be consistent with the Ukiah
General Plan and the land use designations on abutting lands.
The Planning Department also recommends APPROVAL of Major Use Permit No. 99-52 on
the grounds the proposed assisted living facility would be consistent with the Ukiah General
Plans for community commercial and high density residential land uses and circulation, and
with the applicable development standards of the C-N (Neighborhood Commercial) and R-3
(High Density) Zoning Districts.
ENVIRONMENTAL DETERMINATION: The City of Ukiah has determined the project is not
exempt from the provisions of the California Environmental Quality Act (CEQA), and an Initial
Study was prepared for the project. Planning staff determined that as a result of this study
that potential significant adverse impacts to site soils and water resources could be' reduced
to levels that are not substantial by the adoption of mitigation measures included in the
analysis, and a Negative Declaration has been prepared.
GENERAL PLAN DESIGNATION: C (Commercial)
ZONING DISTRICT: C-N (Neighborhood Commercial) for APN 003-471-27 and C-2 for
APN's 003-472-13 and 14
PROJECT DESCRIPTION: The project site is comprised of three parcels of record. The
largest parcel (APN 003-471-27) is a 2.3-acre lot established eadier this year by the approval
and recordation of a common boundary line adjustment (#98-36) that effectively separates the
buildings occupied by the Ukiah Convalescent Hospital from contiguous vacant areas under
the same ownership. This lot is now irregular-shaped, with a 45-foot wide corridor extending
approximately 155 feet from the Dora Street frontage to the wider part of the lot and a smaller
flag-shaped portion on the southeast portion of the lot. The majority of site topography is
relatively flat, with a 2.0% to 4.5% decline in grade extending from the west to the east. There
are no structures on the site, but it does contain eleven mature trees, including native oaks.
The second largest parcel (APN 003-472-13) is located to the east of the lands described
above. This rectangular lot is approximately 135 feet wide by 560 feet long, with a total area of
1.7 acres. It is relatively fiat, with a slight slope (approximately 3%) running from the west to
the east and culminating at a grade that is several feet lower than the State Street right-of-way.
A towing and tire replacement shop with a storage yard is located on the eastern portion of this
parcel, while the western half of the site remains undeveloped.
The third parcel (APN 003-472-14), which is on the southeast portion of the project site is 103
feet longer than the lot to the north, but is only 53 feet wide. It has a similar topography and
grade, with a single-story single family residence on the eastern third. Several trees and other
vegetation are located near the residence, but the remaining areas of the lot are vacant.
The approval of Boundary Line Adjustment No. 99-53, which will be reviewed by the City
Engineer at a separate hearing, would allow the common property line between the two larger
parcels to be shifted 20 feet to the east, effectively expanding the western parcel by 8,743
square feet. It would also allow common property lines between the largest parcel and the
smallest parcel to be shifted approximately 123 feet to the east, which would allow the transfer
of 6,095 square feet of area to the larger lot. These adjustments are being proposed to allow
the proposed assisted living facility and setback areas to be developed on portions of the two
smaller parcels.
Approval of Rezone No. 99-51 would allow the areas transferred to the largest parcel to be
rezoned from the C-2 (Heavy Commercial) Zoning District to the C-N (Neighborhood
Commercial) Zoning District. This rezone is necessary to maintain the same zoning
designation throughout the assisted living facility site.
Approval of the proposed Use Permit would allow the development of the 43-unit assisted living
facility on the western parcel once it is expanded to the 2.43-acre site established by the
approval of the proposed boundary line adjustment and rezoning applications. This facility
would include 31 studio apartments and 12 one-bedroom apartments that would each have
private food preparation and living room areas. The building would also have an interior
landscaped courtyard, a library, group living and dining rooms, and an activities room with
residential-style kitchen for group activities. A reception area, manager's office, commercial
kitchen and dining room, laundry facilities, and a nurse's office would be located adjacent to the
front entrance of the building.
The assisted living building would be constructed in the widest part of the lot, approximately 20
feet from the southern property line and 20 feet from the proposed eastern boundary. A 20-
stall parking lot would be developed in the area between the northern building elevation and the
northern property line, with an entry driveway and turnaround island between the west side of
the building and the western property line. Ingress and egress to both these vehicle accesses
would be over a 30-foot wide paved driveway constructed in the 45-foot wide portion of land
located on the northwest portion of the site. This area connects the bulk of the project site to
Dora Street, which is approximately 260 feet to the west.
The exterior walls of the building would be approximately 152 feet wide and 217-250 feet wide,
encompassing a 38,850 square foot area that constitutes roughly thirty-four percent (34%) of
the affected property. However, the total area of the enclosed portion of the building would be
only 27,050 square feet since the building design includes an 11,800 square foot courtyard that
would be located in the center portion of the building. Group facilities and administrative offices
would be housed in the portion of the structure on the west side of the courtyard, with tenant
rooms on the north, east, and west sides of the courtyard.
The entire building would be one stow, but the building height for the western portion of the
structure would vary considerably due to different roof heights and pitches. The highest
portions of the structure would be the pitched roofs over the front entrance, administrative
offices, and group facilities, which would be between 13 and 26 feet high. The roofs covering
the north and south wings of the building would be approximately 18 feet high, with lower gable
roofs over areas on the north and south building walls.
STAFF ANALYSIS:
General Plan & Zoninq Consistency Planning staff determined the modified lot sizes and
assisted living facility proposed in this project would be consistent with the Ukiah General Plan
goals and policies for the Commercial land use designation, including standards for allowable
uses and siting criteria.
Environmental Analysis: Planning Department staff prepared an Initial Study (attached) for the
proposed rezone, use permit, and boundary line adjustment, in accordance with the California
Environmental Quality Act. In this analysis, staff concluded the proposed projects would cause
potential adverse environmental impacts to water resources, earth, and soils if the grading and
compaction required to prepare the site for the assisted living facility was done without
adequate review and oversight by the City Engineer. Based on these concerns, staff
recommended that all grading and other site preparation be reviewed and approved by the City
Engineer prior to the issuance of any grading or building permits to ensure that such work did
not cause adverse drainage problems or erosion.
Airport Master Plan Compliance: The activities of the assisted living facility would definitely be
affected by the operations at the Ukiah Municipal Airport, which is located approximately fifty
feet east of the project site, on the opposite side of State Street. Due to this proximity, the 400-
foot wide portion of the project site fronting State Street is located in Airport Compatibility Zone
B-2, which designates areas subject to increased risk and noise impacts from airplanes flying
lower than 800 feet. The remaining areas of the site, including the proposed assisted living
facility, are in Airport Compatibilty Zone C.
Staff notes that hospitals and nursing homes are not normally acceptable in either of the two
compatibility districts discussed above, but the proposed facility is designed for persons that
are generally ambulatory and do not require routine medical care. Therefore, it is the opinion of
staff that the proposed assisted living facility would operate as an apartment complex that is
acceptable in Compatibility Zone C.
In this case, the unit density for the portion of the site occupied by the assisted living facility
would be approximately 17 units per acre, which is considered a medium to high density for
Ukiah. Staff notes, however, that all the proposed rooms would be for single-occupancy and
that the typical occupancy of the structure by residents and staff would be 50-60 persons, or a
density of 20-24 persons. This is a much lower human density than the 150 persons per acre
recommended in the Airport Master Plan.
Consistency with C-N and R-3 Zoninq District Development Standards: Planning staff also
determined the reduced lot areas for the two parcels on the east side of the project site would
be consistent with the development standards for the C-N and R-3 Zoning Districts. This
determination is based on the fact that the areas transferred to the western parcel are not
essential to continue the commercial operation on one lot or the single family residence on the
other lot.
The expanded parcel on the western portion of the site would be located within the C-N
(Neighborhood Commercial) Zoning District if the proposed rezone is approved, and staff
determined this area would be consistent with minimum building site and lot area requirements
for this district. The location and design of the proposed facility would also comply with the C-N
development standards for building heights, building setbacks, yard areas, and parking.
The parking standards for typical studio and one-bedroom apartments require one parking stall
for each unit, or 43 stalls for this project. The applicants, however, have requested that the
parking requirements for the site be reduced to a total of 20 full-size stalls and two
handicapped stalls based on the fact that less than one-third of the residents in assisted care
facilities typically own their own vehicles. Planning staff supports this request since the 22
stalls would provide 14 parking stalls for the building's residents plus eight stalls for staff and
visitors.
The design of the proposed parking lot is also consistent with the parking standards of the
Municipal Code, as are the entry driveway and turnaround lanes located in front of the western
side of the structure. Planning staff also noted landscape planter areas with proposed widths
of six to 17 feet would be located next to the parking lot and access driveway and planted with
tree species that would provide adequate shade and screening of these facilities.
Landscapin(7: According to the landscape plan submitted with the application, large planter
areas would be installed along the northern property line, and the north and south sides of
the proposed assisted living facility. These areas would be planted with a variety of
groundcovers, shrubs, and trees, including three Ornamental Pear trees, three Western
Redbud trees, two Crape Myrtle trees, an Agapanthus tree, and a White Birch tree. Grass
lawns would be planted on the east and south sides of the building.
The vegetation in this landscape plan would be proportional to building elevations and would
cover at least twenty percent (20%) of the total area of the project site, including a live
planting ratio of at least fifty percent (50%) of the landscape area. This plan would also utilize
tree species that have adapted to the Ukiah area and deciduous tree species on the southern
and eastern boundaries.
The landscape plan originally submitted does not provide a sufficient number of trees to
comply with the shading requirement of one tree for every four parking stalls, but the
applicants indicated that two additional trees would be added to the planter before building
plans are submitted. The applicant was also agreeable to planting one or more native oak
trees or other native vegetation that would be consistent with the oak trees on the property to
the north.
The initial landscape plan does not show any pedestrian access from Dora Street to the
assisted living facility, but the applicant has agreed to reduce the proposed driveway to a
width of twenty (20) feet and install a five-foot wide sidewalk along its south side. This
sidewalk would run past five native oaks that would be preserved as part of an amended
landscape plan.
The landscape plan does not include a lighting plan because the applicant did not have firm
plans to install exterior lighting in the landscape planters or on the building. However, it is
possible that lighting would be added to provide accent lighting or parking lot security, and
Planning staff recommends that the design and placement of any lights be reviewed and
approved by the Planning Director as part of a final landscape plan.
Building7 Design: The building housing the proposed assisted living facility would be
approximately 150 feet wide and 240 feet long, and would cover approximately 38,000
square feet of the project site. The residential wings on the north and south sides of the site
would be approximately 18 feet high, with an 18-26 foot high roof over the western end of the
building.
Due to this sized, the applicant has chosen a design scheme intended to soften, aesthetic
impacts of the structure by limiting its visibility and mimicking architectural features found on
nearby single family residences. Specific design features include the one stow height, the
use of multi-level roofs with steep pitches and gables, lap-side paneling, and a covered entry.
Building materials would also be similar to those commonly used on single family homes,
including lap-sided wooden walls, multi-paned windows, and composition roof coverings. This
design does not fully conceal the multiple family nature of the building, but Planning staff
considers it to be highly consistent with the architecture on surrounding residences and, in
general, superior to the designs on other multi-family projects in the city.
Neighborhood Compatibility: The proposed assisted living facility would be located in a
mixed-use neighborhood that includes single family homes to the south, west, and east, a
convalescent hospital to the west, and a large church complex to the north. The proposed
facility would be highly consistent with the convalescent hospital and church, but its
development and operation could cause conflicts with the single family residences located on
Berkeley Street and Ranee Lane.
In order to reduce potential conflicts, the applicants designed the building to be one story in
height. In addition, parking facilities were placed on the north side of the lot to provide
privacy for the residents to the south and an interior courtyard was included to encourage
outdoor activities that would be contained within building walls. Further compatibility
measures include establishing a twenty-foot wide side yard setback along the southern
property line instead of the five feet required in the C-N Zoning District and the construction of
a six-foot high wooden fence along this boundary.
Neighborhood Circulation: The assisted living facility would be accessed via a 20-foot wide
private driveway extending between the proposed parking area and the South Dora Street
frontage. Staff from the Public Works Department and the Ukiah Fire Marshal reviewed this
access and found it acceptable. Pedestrian access would also be provided by the
construction of a five-foot wide sidewalk along the south side of the driveway.
The construction of the facility would preclude connecting Berkeley Way, a public street, and
Ranee Lane, a private drive, with any public streets. Neiqhborhood residents indicated to
Planning and Public Works staff that the City of Ukiah origin'ally intended to connect Berkeley
Way with a through connection to either State Street or Dora, or both. Public Works staff
reviewed the Circulation Element of the Ukiah General Plan and policy documents to
determine if this connection was still one that was being considered, and determined that no
firm plans for connecting these streets had ever been established. Therefore, the Public
Works Department does not object to road closures on either street.
CONCLUSIONS: Planning Department staff concludes the proposed assisted living facility
would be consistent with the Ukiah General Plan goals and policies for the C (Commercial)
land use classification, including policies in the Housing Element that encourage the
maximum development of high density lots. The project would also comply with the
applicable use and development standards for the C-N (Neighborhood Commercial) Zoning
District, and is consistent with all applicable design standards and the appearance of the
buildings on abutting lots.
FINDINGS: The Planning Department's recommendation for the approval of Rezone No. 99-
51 and Major Use Permit #99-52 is based, in part, on the following findings:
.
The assisted living facility, as conditioned, would be consistent with the General Plan
goals and policies for development of multiple-family housing in the C (Commercial) land
use classification, including Housing Element policies for encouraging maximum
development of high density residential properties;
.
The assisted living facility, as conditioned, would comply with applicable use and
development standards for the C-N (Neighborhood Commercial) and R-3 (High Density
Residential) Zoning Districts;
.
The assisted living facility would not create hazardous or inconvenient impacts to existing
vehicular or pedestrian patterns since the anticipated increase in levels of average daily
traffic from the site would not be substantial enough to cause service levels for abutting
public streets or intersections to decline;
.
The proposed driveway and parking lot would not create a hazardous or inconvenient
condition to adjacent or surrounding uses since the City Engineer determined the
proposed driveway and sidewalk access would be adequate to provide safe and efficient
ingress and egress when developed to City of Ukiah standards;
5. The proposed landscaping plan has adequate planting areas and vegetation to provide
sufficient open space, shade, and screening of buildings;
o
The assisted living facility would not restrict or cut out light or air on abutting parcels since
the building height would be a single stow high and would be set back far enouqh from
abutting property lines that large amounts of shade would not be cast on abutting ~'ots;
7. The assisted living facility would not excessively damage or destroy natural features
since none are present on the site;
o
The assisted living facility, as conditioned, would not have a detrimental effect on the
character of nearby residential homes since the building has an aesthetically pleasing
design and would be screened by landscaping and fencing;
.
The assisted living facility, as conditioned, would generate no significant adverse
environmental impacts, as determined in the Initial Study prepared in accordance with the
California Environmental Quality Act; and
10.
The development of the assisted living facility, as conditioned, would not be detrimental
to the public's health, safety and general welfare since it is consistent with applicable
General Plan goals and policies and the use requirements, development standards, and
design guidelines for the C-N (Neighborhood Commercial) and R-3' (High Density
Residential) Zoning Districts. Furthermore, the structure is designed to be compatible
with nearby residential and institutional buildings and would be heavily screened by,
landscaping and solid fencing.
CONDITIONS OF APPROVAL: The following Conditions of Approval shall be made a
permanent part of Major Use Permit #99-52, shall remain in force regardless of property
ownership, and shall be implemented in order for this entitlement to remain valid:
.
All use, construction, or occupancy shall conform to the application approved by the
Planning Commission, and to any supporting documents submitted therewith, including
maps, sketches, renderings, building elevations, landscape plans, and alike.
.
Any construction shall comply with the "Standard Specifications" for such type of
construction now existing or which may hereafter be promulgated by the Engineering
Department of the City of Ukiah; except where higher standards are imposed by law, rule,
or regulation or by action of the Planning Commission.
.
In addition to any particular condition, which might be imposed, any construction shall
comply with all building, fire, electric, plumbing, occupancy, and structural laws,
regulations and ordinances in effect at the time the Building Permit is approved and
issued.
4. Applicant shall be required to obtain any permit or approval, which is required by law,
regulation, or ordinance, be it required by Local, State, or Federal agency.
o
Building Permits shall be issued within two years after the effective date of the Site
Development Permit, or it shall be subject to the City's permit revocation process and
procedures. In the event the Building Permit cannot be issued within the stipulated
period from the project approval date, a one year extension may be granted by the
Director of Planning if no new circumstances affect the project which otherwise would
render the original approval inappropriate or illegal. It is the applicant's responsibility in
such cases to propose the one-year extension to the Planning Department prior to the
two-year expiration date.
o
The approved Site Development Permit may be revoked through the City's revocation
process if the approved project related to the Site Development Permit is not being
conducted in compliance with the stipulations and conditions of approval; or if the project
is not established within two years of the effective date of approval; or if the established
land use for which the permit was granted has ceased or has been suspended for twenty
four (24) consecutive months.
o
Except as otherwise specifically noted, the Site Development Permit shall be granted
only for the specific purposes stated in the action approving the Site Development Permit
and shall not be construed as eliminating or modifying any building, use, or zone
requirements except as to such specific purposes.
,
Improvement Plans for curb, gutters, sidewalks, driveways and street paving along Dora
Street shall be prepared by a licensed civil engineer in accordance with City Standard
Drawing Nos. 101 and 102.
o
All improvements shall be constructed in conformance with the approved improvement
plans under an Encroachment Permit issued by the Public Works Department. The
Encroachment Permit shall be submitted to the City Engineer for review and approval
prior to the City Engineer prior to the issuance of a Building Permit for the project with a
fee equal to three percent (3%) of the cost of the improvements.
10. All improvements shall be done by a properly licensed Contractor with a current City of
Ukiah Business License who shall submit copies of proper insurance coverage (Public
Liability: $1,000,000; Property Damage: $1,000,000) and current Workman's
Compensation Certificate.
11. The City Engineer shall permit no site preparation or grading activities on the project site
without the review and approval of a Grading and Drainage Plan. This Plan shall include
the following:
a) The extent of modifications to existing drainage patterns;
b) The extent of storm drainage improvements and erosion control measures for
building pads, driveways, parking lot areas, and other movements of soil;
c) The extent of other development the City Engineer determines could adversely
affect existing drainage patterns on the site or on abutting properties or could cause
wind or water erosion.
12. Stockpiled soil shall be protected from erosion; drainage from all disturbed and stockpiled
soils shall be directed on-site to a disposal location approved by the City Engineer.
13. All on-site paving shall be a minimum of 2" (inches) of asphalt concrete with a 6" (inch)
aggregate base, or, alternatively, any option approved by the City Engineer
14. Sewer, water, and electric service shall conform to the specifications of the City Public
Utilities and Public Works Departments.
15. A Landscaping and Lighting Plan shall be submitted by the project applicant and
approved by the Director of Planning prior to the issuance of a Certificate of Occupancy
for the building. This plan shall include, but not be limited to the following:
a) A planting legend that includes the names, location, coverage area, and canopy cover
of proposed vegetation;
b) A planting schedule for all vegetation installed on the site;
c) A maintenance schedule for existing or proposed vegetation, including a watering
schedule and irrigation system design; and
d) A lighting plan for any proposed exterior lighting installed or otherwise used on the
site, including the design of the light standards used.
16.
Landscaping on the project site shall include at least four deciduous trees that are
either native to the Ukiah area or adapted to its climate, and shall be 15 gallons or
more in size.
17. All landscaping shall be maintained in a neat, weed-free manner, and may not be
removed or substantially altered unless the Director of Planning reviews and approves
the removal or replacement of vegetation determined to be diseased, unstable,
hazardous, or poorly located on the site. Any vegetation removed from the site shall
be replaced with similar vegetation approved by the Planning Director.
18. Any roof-mounted air conditioning, heating, and/or ventilation equipment shall be
aesthetically screened from view consistent with the architecture of the building upon
which it is located.
19. Outdoor refuse/recycle containers shall be aesthetically screened from view; garbage
shall not be visible outside the enclosures.
20. Hours of construction shall be limited to the hours between 7:00 a.m. to 7:00 p.m.,
Monday through Saturday unless additional hours of construction for special
construction activities or projects are reviewed and approved by the Planning Director.
21. All conditions that do not contain a specific date or time period for completion shall be
completed prior to the issuance of a Certificate of Occupancy.
22.
A recycling program that provides the opportunity for all residents of the assisted
living facility to recycle shall be implemented by the facility managers prior to the
occupancy of any of the units and shall remain in effect so long as they are occupied.
This program shall be reviewed and approved by the Planning Director prior to ils
implementation to ensure it provides an efficient method for recycling and is
consistent with the requirements of the Municipal Code.
ATTACHMENTS:
1. Location Map
2. Project Description
3. Site Plan
4. Floor Plan
5. Landscape Plan
6. Exterior Elevations
7. Negative Declaration/Initial Study for project
10
LOCATION MAP
REZONE NO. 99-51 & MAJOR USE PERMIT NO. 99-52: FIRSTMARK GROUP, INC.
1343 South Dora Street and 1346 South State Street
l~Assessor Parcel Nos. 003-471-09, 003-472-14, & 003-472-15).
MIS
ITARY
~OL
0 500 1000 1500 2000 2500 3000 Feet
SCALE' 1 inch = 500 feet
Firstmark Group, Inc.
Assisted Living Facility
Ukiah, CA
Firstmark Group, Inc. i~ requesting a Kezoning, a Use Permit, and a Boundary Line Adjustment for a 43
unit assisted living facility.
The proposed assisted living facility is located on the property described as Assessor's Parcel # 003 - 472 -
117, formerly #003 - 472 - 09(map attached). The area surrounding the parcel can be described as single
family residential in the immediate area with commercial activities on U.S. Highway 101 (South State
Street), to the eait and less than ~00 feet from the property. Immediately adjacent to the proposed site is
the Ukiah Convalescent Hospital to the West. undeveloped land to the E~st, single-family residential to the
South and the Church of leans Christ Ladder'Day Saints and light industrial to the North.
As individuals age their capacity for independent living diminishes. According to the most recent data
available from he National Health Interview Survey, for example, more than half (54 percent) of the older
population reported having at least one disability which Iimi~ them carrying out activities of daily living.
The assisted living facility is intended to provide housing for the City of Ukiah's aging population.
The proposed assiated living facility is a single story; wood framed building containing .43 apartment units
designed specifically for elderly independent living. The building will be 27,060 feet and contain 43
units, 31 studios and 12 one-bedrooms. Each resident unit includes a small kitchenette with refrigerator
and microwave, private bathroom with an American with Disabilities Act compliant shower and sining
The facility will include common areas for the socialization and activities of residents Including a common
dining room, interior landscaped courtyard, activities room with a residential style kitchen, library with a
television, and living room.
The facility will have ~ receptionist desk, manager's office, commercial kitchen, laundry facilitie~ and
nurae's office to provide services to the residents.
Due to the age and general health of most of the residents of the facility the project will generate very httle
noise or truffle. The traffic generation will be approximately 92.5 vehicle trips per day, base upon the
Institute of Traffic Engineers estimate of 2.1 $ vehicle trips per da7 per unit for assisted living facilities.
The project design complies with all height Iimitation~, setback requirements, lot width, and density
requirements a~ described in the City of Ukiah Zoning Ordinances. Detailed construction drawings will be
submitted to the City for review and approval. The "Possible Future Addition" is shown for general
information only. We are not applying for approval of this portion o£ the project at this time and
understand that future approvals will be required from the City of Ukiah should this addition ever be
constructed. At this time we ar~ not applying for any development of parcels # 003 - 472 - 13 or # 003
472- 14. -
There is a private utility easement across the eastern 20 feet of the site. This easement belongs to the
Church of Jesus Christ Ladder Day SaInts. We under~tand that this easement must be relocated to gain
approval for this project. We have begun discussing relocating the easement to a mutually acceptable
location. We would ask that the City make the relocation and acceptance of construction documents
pertaining to this relocation a condition of approval for the land use requests in this application.
(Iii
The proposed use of the faciIity would I~e an amenity to the City of Ukiah and Mendocino County and
provides a uecessary and important community service. Due to the age of the residents, this project will
place little demand on public services such as sehooIs, park, and transportation facilities. The building i~
very residential in appearance and will blend well with the surrounding properties.
We are confident that the project will not be detrimental fia any way to the health, safety, morals, peace,
eom£ort, or general welfare o£ the persons residing or working in the surrounding n~ighborhood. Such use
is in harmony with the general intent of the zoning code and the approval of th~ Conditional Use Permit is
appropriate.
'l~'3'fl g/,' OZ;dl
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UKIAH
AS~$TED UYIHG FACILITY
FLOOR PLAH
CITY OF UKIAH
NEGATIVE DECLARATION
DATE:
APPLICANTS:
PROJECT NO.:
LOCATION:
February 17, 2000
Firstmark Group, Inc.
Rezone No. 99-51; Major Use Permit No. 99-52; and Boundary Line
Adjustment No. 99-53
1343 South Dora Street / 1346 South State Street, City of Ukiah, County of
Mendocino (Assessor Parcel Nos. 003-471-09; 003-472-13; & 003-472-14)
DESCRIPTION OF PROPOSAL/ENVIRONMENTAL SETTING: The project consists of three
applications that are being processed concurrently. Approval of the Rezone and Boundary Line
Adjustment applications would allow the effective transfer of 8,743 square feet of area from the two
smaller parcels to the largest parcel and the rezoning of this area from the C-2 (Heavy
Commercial) Zoning District to the C-N (Neighborhood Commercial) Zoning District.
Approval of the proposed Use Permit application would allow the construction and operation of a
43-unit assisted living facility. All development of the proposed assisted living facility would occur
entirely on the 2.3-acre parcel established on the western portion of the project site by the transfer
of approximately 8,743 square feet of area from the two smaller parcels on the eastern portion. No
development is proposed for the smaller lots as part of this project.
The largest existing parcel (APN 003-471-27) is a 2.3-acre lot established earlier this year by the.
approval and recordation of a Boundary Line Adjustment application (#98-36) that effectively
separates the buildings occupied by the Ukiah Convalescent Hospital from contiguous vacant
areas under the same ownership. This lot is now irregular-shaped, with a 45-foot wide corridor
extending approximately 155 feet from the Dora Street frontage to the wider part of the lot and a
smaller flag-shaped portion on the southeast portion of the lot. The majority of site topography is
relatively flat, with a 2.0% to 4.5% decline in grade extending from the west to the east. There are
no structures on the site, but it does contain eleven mature trees, including native oaks.
The second largest parcel (APN 003-472-13) is located to the east of the lands described above.
This rectangular lot is approximately 135 feet wide by 560 feet long, with a total area of 1.7 acres.
It is relatively fiat, with a slight slope (approximately 3%) running from the west to the east and
culminating at a grade that is several feet lower than the State Street right-of-way. A single family
residence and yard area is located on the portion of the site fronting State Street, but the western
portion of the site is vacant.
The third parcel (APN 003-472-14), which is on the southeast portion of the project site is 103 feet
longer than the lot to the north, but is only 53 feet wide. It has a similar topography and grade, but
is vacant except for several trees and other vegetation.
ENVIRONMENTAL ANALYSIS: Potential significant adverse impacts identified in this initial study
include the following:
1. Impacts to earth and soils from fill materials, grading, and compaction; and
2. Impacts to water resources from grading and covering over of soils.
FINDINGS SUPPORTING A NEGATIVE DECLARATION:
1. Based upon the analysis, findings and conclusions contained in the Initial Study, the project
does not have the potential to degrade the quality of the local or regional environment;
.
Based upon the analysis, findings and conclusions contained in the Initial Study, the project will
not result in short-term impacts that will create a disadvantage to long-term environmental
goals;
3. Based upon the analysis, findings and conclusions contained in the Initial Study, the project will
not result in impacts that are individually limited, but cumulatively considerable; and
.
Based upon the analysis, findings and conclusions contained in the Initial Study, the project will
not result in environmental impacts that will cause substantial adverse effects on human
beings, either directly or indirectly.
STATEMENT OF DECLARATION: After appraisal of the possible impacts of this project, the
City of Ukiah has determined that the project will not have a significant effect on the
environment, and further, that this Negative Declaration constitutes compliance with the
requirements for environmental review and analysis required by the California
Environmental Quality Act.
This document may be reviewed at the City of Ukiah Planning Department, Ukiah Civic Center,
300 Seminary Avenue, Ukiah, California.
Charles Stump, Senior Planner/Environmental Coordinator
City of Ukiah
INITIAL STUDY
OF
POTENTIAL ENVIRONMENTAL IMPACTS
BACKGROUND INFORMATION
1. Project Proponent:
Firstmark Group, Inc.
2. Address of Proponent:
2601 25th Street, East, Suite 450
Salem, Oregon 97302
3. Name of Project:
Rezone #99-51; Boundary Line Adjustment #99-52;
& Major Use Permit #99-53
4. Site Location:
1343 South Dora Street and 1346 South State
Street, Ukiah, CA 95482
Assessor Parcel Nos. 003-471-19; 003-472-13 and
003-472-14
5. Date of Initial Study Preparation: February 11, 2000
6. Name of Lead Agency:
City of Ukiah Planning Department
7. Phone Number of Lead Agency:
707/463-6207
8. Address of Lead Agency:
300 Seminary Avenue, Ukiah CA 95482
9. Project Description: The proposed project consists of three applications that are being
processed concurrently. The approval of the Rezone and Boundary Line Adjustment applications
would allow the transfer of 8,743 square feet of area from the two smaller parcels .to the largest
parcel and the rezoning of this area from the C-2 Zoning District to the C-N Zoning District.
Approval of the .proposed Use Permit application would allow the construction and operation of a
43-unit assisted living facility on the parcel established by the approval of the lot line adjustment.
10. Environmental Setting: The largest existing parcel (APN 003-471-27) is a 2.3-acre lot
established earlier this year by the approval and recordation of a Boundary Line Adjustment
application (#98-36) that effectively separates the buildings occupied by the Ukiah Convalescent
Hospital from contiguous vacant areas under the same ownership. This lot is now irregular-
shaped, with a 45-foot wide corridor extending approximately 155 feet from the Dora Street
frontage to the wider part of the lot and a smaller flag-shaped portion on the southeast portion of
the lot. The majority of site topography is relatively flat, with a 2.0% to 4.5% decline in grade
extending from the west to the east. There are no structures on the site, but it does contain
eleven mature trees, including native oaks.
The second largest parcel (APN 003-472-13) is located to the east of the lands described above.
This rectangular lot is approximately 135 feet wide by 560 feet long, with a total area of 1.7 acres.
It is relatively fiat, with a slight slope (approximately 3%) running from the west to the east and
culminating at a grade that is several feet lower than the State Street right-of-way. A single family
residence and yard area is located on the portion of the site fronting State Street, but the western
portion of the site is vacant.
The third parcel (APN 003-472-14), which is on the southeast portion of the project site is 103 feet
longer than the lot to the north, but is only 53 feet wide. It has a similar topography and grade, but
is vacant except for several trees and other vegetation.
10. Person(s) Responsible for Preparing Initial Study:
Dave Lohs'e~, As§ociate Planner
LOCATION MAP
REZONE NO. 99-51 & MAJOR USE PERMIT NO. 99-52: FIRSTMARK GROup, INC
1343 South Dora Street and 1346 South State Street
(Assessor Parcel Nos. 003-471-09, 003-472-14, & 003-472-15}
)KOMIS
dENTARY
;HOOL
0 500 1000 1500 2000 2500
3000 Feet
SCALE: 1 inch = 500 feet
.I
UKIAH
ASSISTED LIVING FACILITY
ENVIRONMENTAL CHECKLIST :: ?-;; :" '::
.
: - · ::: ': . :
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING' Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
1, EARTH / SOILS:
a. Unstable eadh conditions orchanges
in geologic structures.
b. Disruptions, Displacements,
c. Change in topography or ground
surface relief features.
d. The destruction, covering, or
modification of any unique geologic or
physical features.
e. Any increase in wind or water erosion
of soils, either on or off the site.
f. Changes in deposition or erosion of
beach sands, or changes in siltation,
deposition, or erosion that may
modify the channel of a river, stream,
inlet, or bay?
g. Exposure of people or properly to
eadhquakes.
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
2. WATER:
a. course Changes in the currents, or the[-~-- [~ [~ [~ ~
of water movements, in either ~
fresh or marine waters.
b. Changes in the absorption rates, r-~
drainage patterns, or the rate and ~ ~~ ~ [~
amount of surface runoff.
c. Alterations to the course or flow of ~ [~ [~ [~ [~
flood waters or ground waters.
d. Change in the amount of surface ~ [~ E~ E~ E~
water in any water body or any
discharge into surface water.
e. Any degradation or alteration of C~ [~ ~ [~ ~
surface water quality, including but
not limited to temperature, dissolved
oxygen or turbidity.
f. Alteration of the direction or rate of ~ [~' [~ ~ [~
flow of ground water.
g. Change in the quantity of ground r-~
water, either through direct additions ~~ [~ ~ ~
or withdrawals, or through
interception of an aquifer by cuts or
excavations.
h. Change in the quality of ground [~ [~ [~ ~ ~
water.
i. Substantial reduction in the amount of E~ [~ E~ E~ E~
water otherwise available for public
water supplies.
j. Exposure of people or property to [~' [~ ~ [~ [~
water related hazards such as
flooding or tsunamis.
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS' Mitigation
3. PLANT LIFE:
a. Change in the diversity of species, or
numbers of any species of plants
including trees, shrubs, grass, crops,
and aquatic plants.
b. Reduction of the numbers of any
unique, rare, or endangered species
of plants.
c. Introduction of new species of plants
into an area, or in a barrier to the
normal replenishment of existing
species.
d. Reduction in acreage of any
agricultural crop.
4. ANIMAL LIFE:
a. Change in the diversity of species, or
number of any species of animals
including birds, land animals, reptiles,
fish, insects, and bethnic organisms.
b. Reduction in the number of any
unique, rare, or endangered species
of animals.
c. Introduction of new species of
animals into an area, or in a barrier to
the migration or movement of
animals'
d. Deterioration of existing fish or wildlife
habitat.
I
I WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
5. NOISE:
a. Increase in existing noise levels. E~ [~ E~ E~ E~
b. Exposure of people to severe noise ~
levels. E~[~ E~ ~ E~
6. LIGHT AND GLARE:
a. Production of new light and glare. E~ [~ E~ E~ [~
b. Reduction of solar exposure or /
adverse impacts to existing solar E~[~ E~ E~ E~
collection facilities.
7. LAND USE:
a. Substantial alteration of the present E~ [~ E~ [~ ~
or planned land use of a given area.
8. NATURAL RESOURCES:
a. Increase in the rate of use of any E~ ~' E~ E~ ~
natural resources.
WILL THE PROJECT RESULT .o Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
9. RISK OF UPSET:
a. A risk of an explosion or the release /,'
of hazardous substances, (including [~[~ E~ [~ [~
oil, pesticides, chemicals, or radiation)
in the event of an accident or upset
conditions.
b. Possible interference with an //
emergency response plan or E~[~ E~ E~ [~
evacuation plan.
10. POPULATION:
a. Alterations in the location, distribution, E~ E~ E~ E~ E~
density, or growth rate of human
populations.
1'1. HOUSING:
a. Will the proposal effect existing E~ [~ E~ [~ E~
housing or create a demand for new
housing?
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
12. TRANSPORTATION:
a. Generation of substantial additional
vehicular movement?
b. Effects on existing parking facilities,
or demand for new parking facilities?
transportation systems?
d. Alterations to present patterns of //
circulation or movement of people
and/or goods?
e. Alterations to waterborne, rail, or air
traffic?
f. Increase in traffic hazards to motor
vehicles, bicyclists or pedestrians?
g. Degradation of the level 'of service
(LOS) of any intersection to an
unacceptable level?
13. PUBLIC SERVICES:
a. Will the proposal have an effect upon,
or result in a need for new or altered
government services in any of the
following areas:
1. Fire protection?
2. Police protection?
s oo,s?
4. Parks & recreation facilities?
,,,
5. Maintenance of public facilities?
6. Other governmental services? [~"'
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
14. ENERGY:
a. Use of substantial amounts of fuel or ~ [~ ~ [~ ~
energy?
b. Substantial increase in demand upon-- [~ [~ [~ ~
existing sources of energy, or require ~
the development of new energy
sources?
15. UTILITIES:
a. Will the project result in a need for
new systems or substantial alterations
to the following:
1. Potable water? ~ [~ [~ [~ [~
3. Transmission lines? [~ [~ [~ ~ [~
16. HUMAN HEALTH:
a. Creation of any health hazard or ~ [~ [~ [~ [~
potential health hazard?
b. Exposure of people to any existing /
13
WILL THE PROJECT RESULT No Not Significant Significant Cumulative
IN THE FOLLOWING Significant Unless No Impacts
Mitigated Apparent
ENVIRONMENTAL EFFECTS: Mitigation
17. AESTHETICS:
a. Obstruction of any scenic vista or-- [~ ~ [~ ~
view open to the public, or create an ~ll
aesthetically offensive site open to
public view?
18, RECREATION:
a. Impact upon the quality or quantity of ~ [~ ]~ [~ ~
existing recreational opportunities?
19. CULTURAL RESOURCES:
a. Alteration or destruction of a [~ ~ ~" E~ [~
prehistoric or historic archaeological
site?
to a prehistoric or historic building or
structure?
/
c. Cause a physical change that would ~. [~ ~ ~ [~
effect the unique ethnic cultural
values?
20. AIR:
a. Violation of any State or Federal air [~ [~// [~ ~ ~
quality standard.
b. The creation of objectional odors. [~ [~ [~ ~ ~
c. Alteration of air movement, moisture,-- [~ [~ ~ [~
or temperature, or any change in ~1]
climate, either locally or regionally?
DISCUSSION OF POTENTIAL ENVIRONMENTAL IMPACTS
AND
SUGGESTED MITIGATION MEASURES
1. EARTH/SOILS: The Ukiah Valley is part of an active seismic region that contains the
Maacama Fault, which traverses the valley to the east and north of the City. According to
resource materials maintained by the Ukiah Planning Department, the projected maximum
credible earthquake along this fault would be 7.4 magnitude on the Richter scale.
The site contains no unique geologic or physical features, but it is lower than the parcel to
the west since this site was filled to provide the building pad for the Ukiah Convalescent
Hospital building that covers most of the lot. The project site topography is relatively even,
with a defined slope of 1.5% to 4.0% that declines from the west to the east and southeast.
Surface waters from the site and abutting streets then drain down this slope into a swale
on the eastern edge of the site that, in turn, flows into a drainage ditch on the southeast
portion of the site. This ditch then drains into storm drains located in the public right-of-
way for State Street.
The Soil Survey of Mendocino County, Eastern Part prepared by the Soil Conservation
Service of the U.S. Department of Agriculture classifies the soils on the project site as
"urban soils mix", which consists of naturally occurring soils that have been covered and
mixed with various fill materials. Planning staff notes, however, that there is no evidence
of any recent fill or grading activities on the site.
a.
Impacts: According to information from the Soil Conservation Service, at least some
portions of the project site have been subject to fill activities over the years. However,
there is no evidence of any recent filling on-site, or of any fill operations or other soil-
alteration activities that have covered or caused adverse changes to any known unique
geological structures or other physical features. There is also no visible evidence of
regular or major slippage, collapse, or unstable earth conditions that would cause
hazards to persons or significant increases in wind or water erosion.
The development of the proposed assisted living care facility on the western portion of
the site will require major grading, fill, compaction, and covering over of soils with
building foundations and pavement on approximately 1.3 acres of the 2.3-acre project
site. These soil-modifying activities would cause substantial changes to site
topography, altering site contours and drainage patterns that generally route surface
drainage east and southeast to a drainage ditch on the southeast side of the project
site. They would also cause increased levels of wind and water erosion if disturbed
soils were left uncovered for long periods of time. According to the City Engineer's
staff, these impacts would be significant if standard grading, paving and soil
suppression measures typically used during construction are not implemented.
Therefore, the City Engineer requires that a Grading and Drainage Plan for the project
be reviewed and approved prior to site preparation and grading activities, and that
earth modification activities be regularly inspected to ensure they are done in
compliance with the provisions of the approved plan. The required components of the
Grading and Drainage plan are outlined below in recommended Mitigation Measure #1.
15
b. Mitigation: The following measure shall be required to mitigate anticipated adverse
impacts associated with development activities required to develop the project site:
o
No site preparation or grading activities on the project site shall be permitted until a
Grading and Drainage Plan has been reviewed and approved by the Ukiah City
Engineer. This Plan shall include the following:
a. The extent of modifications to existing drainage patterns;
b. The extent of storm drainage improvements and erosion control measures for
building pads, driveways, parking lot areas and other movements of soils;
c. The extent of soil modification activities (trenching, grading, compaction, etc.)
within the driplines of existing trees; and
d. The extent of any other development or soil modification activities that the City
Engineer determines could adversely affect existing drainage patterns on the
site or abutting properties or cause wind or water erosion.
2. WATER: Water on the project site generally drains from the west to the east, into a
swale that extends along the eastern boundary for the portion of the site that would be
developed. This swale carries surface waters from the northern portion of the site and
parcels to the north to a drainage ditch on the southeast portion of the site. This
drainage ditch also picks up the drainage from the southern portion of the site and the
streets to the south and it carries it to the storm drain system located in the public right-
of-way on the west side of State Street.
The Federal Insurance Rate Map (FIRM Community-Panel Number 060183 0811 B)
prepared by FEMA shows the project site is located in Flood Zone C, which indicates it is
not subject to 100-year flood events.
a.
Impacts: The construction of the proposed assisted living facility and paving for
parking areas and access roads would require the grading and covering of soils over
1.3 acres of the 2.3-acre site, or approximately sixty percent (60%) of the project
area. Engineering staff anticipated these activities would cause substantial
reductions in the rate of water absorption and a resultant increase in surface runoff
of at least 2.25 cubic feet per second (cfs) during major storms. Engineering staff
notes that this amount of drainage could cause significant adverse impacts on the
site and on adjacent lands if standard grading and paving techniques were not
utilized to ensure drainage is effectively routed to the storm drain system that runs
through the State Street right-of-way. Therefore, the City Engineer will require that
all changes in drainage patterns and its affects on the safe removal of storm waters
from the site are shown on the Grading and Drainage Plan recommended for the
mitigation of adverse EARTH and SOILS impacts.
ag
A substantial reduction in water absorption rates and ground water quantities at the
site will also occur due to the extensive amount of soils being covered by building
foundations and paving. However, Planning staff does not anticipate the reduced
water absorption rates to significantly affect the supplies, quality, or movements of
ground waters since the water table beneath the site is regularly replenished by
surface and subterranean water sources draining from the hills west of the project
site. Therefore, no groundwater mitigation measures are recommended.
Water usage at the site is expected to increase substantially due to human
consumption and irrigation of landscaping, but the water volumes anticipated are not
considered significant since the site is zoned for the proposed use and water is
available from mains in the Dora Street corridor. In fact, staff of the City Water and
Sewer Department noted the site could be served without causing substantial
impacts to area water supplies or any reductions in water services to other parcels.
Mitigation: See the surface drainage measures included in Mitigation Measure #1
under the EARTH/SOILS discussion above.
3. PLANT LIFE: The portion of the project site proposed for development contains eleven
mature trees, including native oak species, that are all located along the perimeter areas of
the site. However, resources maintained by the Planning Department reveal no known
plant species included in Federal or State listings as rare, threatened or endangered.
The landscape plan submitted for the project shows that eight of the oak trees located in
the proposed access strip would be preserved, but three ornamental trees on the
southern side of the site would be removed to accommodate the proposed building.
Impacts: As noted above, eight native oak trees located on the site would be
preserved, mainly by the reduction of the proposed driveway access width from the
30 feet initially proposed to a maximum of 20 feet. The narrower pavement width
will allow the road to be shifted north to provide as much distance from the trunks of
the trees as possible, and would effectively limit the impacts to root systems from
grading, trenching, compaction, pavement, and other construction. It would also
allow additional room for the planting of compatible native plants beneath the oaks.
The proposed development would require the removal of three introduced trees
located along the southern property line. However, the loss of these trees is not
considered a substantial adverse impact to area vegetation since most of the
existing trees would be preserved, including most of the native trees. Furthermore,
two of the trees are too small to provide substantial shade or screening for the
building.
According to this plan, a number of ornamental plant species would be introduced to
the site. However, Planning staff notes that all the proposed plants have been used
regularly in other developments in the Ukiah area without affecting the reintroduction
of native plant species and no plant life mitigation measures are recommended.
b. Mitigation: None recommended.
17
,,
ANIMAL LIFE: The project site is not developed at this time, but is surrounded by
residential and commercial buildings that greatly limit the potential for animal habitat
or movements. In fact, the Natural Diversity Database prepared by the California
Department of Fish and Game shows that' there are no known rare, threatened, or
endangered animals using the property for habitat or migration.
Impacts: The undeveloped project site contains no known rare, threatened, or
endangered animal populations, and potential wildlife habitat for animals has been
greatly limited by the development of residential and commercial buildings on all
sides. Therefore, no animal life mitigation measures are recommended.
b. Mitigation: None recommended.
5. NOISE: Ambient and incidental noise levels are expected to increase during the
construction of the proposed building, but there are no known sources of substantial noise
associated with the operation of the assisted living facility.
a.
Impacts: The construction activities needed to fully develop the assisted living facility
could cause substantial short-term noise increases, but there is nothing in the design of
the project that warrants the use of extraordinary construction activities (such as
blasting) that would expose persons to significant or hazardous noise levels. Regular
construction activities may cause nuisance noises for persons residing in the
convalescent hospital to the west and the residences to the east, west, and south, but
the effects from this noise would be short-lived and is not expected to cause long-term
health hazards or other problems. Furthermore, all construction activities would be
subject to the noise standards of the Ukiah Noise Ordinance, which limits the amount
and duration that noise may occur. Therefore, no significant adverse noise impacts are
expected during the construction phase of the project.
Ambient and incidental noise levels at the site are also expected to increase due to the
operation of the assisted living facility, but there is nothing in the design of the project
that would cause a substantial noise increase or expose persons to severe or harmful
noise levels. In fact, the majority of day to day activities would occur within the building
walls or the enclosed courtyard area. Therefore, staff recommends no noise mitigation
measures be required for this project.
b. Mitigation: None recommended.
6. LIGHT AND GLARE: The development of the proposed assisted living facility structure
will cause additional sources of light and glare from the large number of windows on the
building, and additional lighting on the building and in the parking lot.
]8
a.
Impacts: Light and glare at the site would be increased over existing levels at the site
due to the use of over fifty windows on the various building elevations. Planning staff
does not, however, anticipate significant adverse impacts from these lighting and glare
sources since the majority of the windows would be located at least twenty feet from
the nearest residential lots and shielded by the six-foot high wooden fence proposed
for construction along all abutting property lines. Even the lighting that could shine
from second-story windows proposed for the western elevation of the structure is not
expected to shine beyond the setback area between the building.
Increased lighting impacts will also be increased as the result of the windows and
external lighting sources and parking lot lighting. However, it is not anticipated these
impacts will be significant due to the setbacks for the proposed building and the
location and height of proposed and existing vegetation and fencing.
The proposed building would not adversely affect solar heating opportunities on the
site since it would be located far enough from abutting lots to limit shading from
structures or vegetation on these lots. No substantial interfererence with solar power
system use on abutting lots since most of the structure would be one story high and
constructed on a lot with a lower grade than abutting lots.
b. Mitigation: None recommended.
7. LAND USE: The two parcels comprising the eastern portion of the project site and the
larger parcel on the western portion of the site are all designated on the General Plan
Land Use Map for C (Commercial) uses. However, the smaller parcels are located in the
C-2 (Heavy Commercial) Zoning District that extends along the State Street frontage,
although the only development on these lots consists of a legal, nonconforming single
family residence. The undeveloped area proposed for the development of the assisted
living facility is located in the C-N (Neighborhood Commercial) Zoning District.
a.
Impacts: The area proposed for the assisted living facility is not developed at this time,
so the construction and operation of the facility would be a substantial alteration of the
existing use of the property. However, the proposed use is allowable in the
Commercial land use designation of the Land Use Element in the Ukiah General Plan
and is a permitted use in the C-N Zoning District. Furthermore, it is the opinion of staff
that the assisted living facility operation would be similar in its size and scope to the
convalescent hospital located to the north and the church on the property to the north.
The proposed residential density of 19 persons per acre is considered to be consistent
with the Iow to high residential densities permitted in the C-N Zoning District. In fact,
this density is only slightly higher than the 31 to 40 persons that could occupy the 16
single family homes that could be developed on the site, and much less than if it were
developed with a high density apartment complex. However, it is not anticipated that
activities at the assisted living facility would cause the intense impacts (e.g. noise) that
are typical of some traditional apartment buildings since the occupants of such
apartments are generally more active than facility residents are expected to be.
b. Mitigation: None required.
8. NATURAL RESOURCES: The construction of the proposed assisted living building
would require the use of common natural resources, including wood materials and other
natural materials or alloys.
a.
Impacts: The development of the proposed assisted living structure would require the
use of woods, metals, and other natural building materials, as well as the use of
earthen materials for access roadway and parking area paving. However, there is
nothing in the project design that indicates that such materials would be used at a
significantly higher rate than expected for a building of this size or that the development
would require the development of new sources of natural resources. Therefore, no
natural resources mitigation measures are required.
b. Mitigation: None required.
9. RISK OF UPSET: Operation of the facility would require the use and storage of
hazardous substances such as oil, pesticides, or materials for buildings and grounds
maintenance.
a,
Impacts: The project would increase the use of hazardous substances on the site
since the operation and maintenance of the assisted living facility would require the use
and storage of cleaners, pesticides, and other potential contaminants that could cause
pollution if not used, stored, and disposed of in the proper manner. However, there is
no evidence the amounts of these substances would be substantial enough in volume
or toxicity to cause adverse environmental impacts. Furthermore, the use and storage
of these materials is generally regulated by environmental health standards enforced
by the Ukiah Fire Marshal or the County Environmental Health Department.
According to the Ukiah Municipal Airport Master Plan, the proposed assisted living
facility would be developed on a portion of the site that is located in Zone C, which
demarcates those areas subject to increased risks and noise from aircraft operating at
or below 1000 feet above ground level. Planning staff notes, however, that the
assisted living facility is considered a multiple family housing structure that is consistent
with the requirements for Zone C since it would be occupied by persons that are
ambulatory and able to evacuate the building on their own or with help from staff.
Furthermore, the proposed residential density would be well below the 345 persons
permitted on the 2.3-acre project site, which would reduce the potential numbers of
persons exposed to aircraft hazards.and allow a more efficient evacuation of the site in
the event of an emergency. In fact, the Ukiah Fire Marshal reviewed the project design
and indicated that the proposed ingress and egress is sufficient to provide evacuation
in the event of an emergency. Therefore, Planning staff anticipates no significant risks
or adverse impacts to the emergency evacuation plan for the area.
b. Mitigation: None required.
10. POPULATION: The current population for the City of Ukiah is approximately 15,000
persons, with a projected annual growth rate of less than two percent (2.0%) per year.
The proposed project could attract additional residents to Ukiah, but the development of
only 43 single-occupancy rooms would effectively preclude any large population increase.
a.
Impacts: The development of the proposed assisted living facility would provide 43
housing units for a portion of Ukiah's population that typically has unique housing
needs that are not part of standard housing or nursing home units. This facility may
attract eldedy persons to Ukiah, but the resultant increase in population would not
cause .adverse impacts to population levels since it would only have 43 single-
occupancy rooms. In addition, it is expected many of these rooms would be occupied
by current residents of Ukiah, making other housing units available as they transfer
from their own apartments or institutional units. Therefore, no significant population
increases or adverse impacts to local population levels are anticipated.
b. Mitigation: None required.
Il. HOUSING: The proposed assisted living facility would provide 43 single-occupancy
rooms, which is equivalent to a residential density rate of approximately 18.7 persons per
acre. Based on a standard occupancy rate of 1.92 persons per housing unit, Planning
staff determined this rate is approximately midway between the residential density rates of
13 persons per acre for Iow density residential development and 26 persons per acre for
medium density residential development.
a.
Impacts: The 43-person occupancy designed for the assisted living facility is
considered a Iow to medium residential development that can be permitted in the C-N
Zoning District assigned to the western portion of the site. This density is not expected
-to cause adverse impacts to area housing since it provides housing for a segment of
the Ukiah population that has few, if any, facilities designed to accommodate their
unique lifestyle. In addition, the potential adverse impacts often associated with the
residential density rate of this project are not expected to be significant since the facility
would be occupied by persons who are generally not as active as the persons that
would occupy a traditional apartment building. Also, the design of the building includes
an interior courtyard for recreation and places the proposed access driveway and
parking lot on the north side of the site, which is bordered by a church complex.
b. Mitigation: None required.
12. TRANSPORTATION: The proposed assisted living facility would be located on an
interior portion of a parcel that has approximately forty feet of street frontage along Dora
Street. The southern portion of the site also abuts Ranee Lane, a private drive, and
Berkeley Way, a public street, but project plans show that no direct access to these streets
is proposed as part of this project.
Planning staff used standard traffic studies listed in Trip Generation, 6~h Edition (Institute of
Traffic Engineers, 1998) to determine the assisted living facility would cause traffic
volumes along Dora Street by approximately ninety-two (92) vehicle trip ends per day.
Three of these trips would occur during peak morning hours, with seven trips during peak
evening hours.
2]
am
Impacts: Traffic caused by the proposed assisted living facility would cause minor
adverse impacts to existing transportation systems and the present patterns of
circulation and movements of people in the area. However, these effects would not be
significant since increases in traffic from the project would be relatively Iow when
compared to the traffic volumes along Dora Street. In fact, the vehicle counts done in
1996 for the City of Ukiah Speed Zone Summary Table indicate the traffic volume for
the segment of Dora Street between Gobbi Street and the south city limits was
measured at approximately 5,800 vehicles per day. The Segment Level of Service
criteria of the Ukiah General Plan shows this two-lane segment of Dora Street is now
operating at Level of Service C (LOS C), which is the LOS at which traffic still moves in
the zone of stable flow with only small delays caused by turning vehicles. The traffic
from this project would not cause any direct change in the level of service for this street
segment since the total traffic volume for Dora Street would still be substantially less
than the 8,700 vehicles per day required for a full decline in service to LOS D.
There are no traffic counts for the intersection where Dora Street crosses Wabash
Avenue, but Planning staff noted during site visits that this intersection appears to be
functioning during most of the day under conditions that are consistent with LOS A.
Minor vehicle stacking does occur during peak a.m. and p.m. travel hours as a result of
morning and evening commuter traffic, but delays seldom involve the stacking of more
than two or three vehicles and are generally short-lived. It is not anticipated the
proposed assisted living facility will cause any noticeable decline in the levels of service
for this intersection since it would add only three vehicle trips per day to the peak
morning hour traffic and seven trips per day to the peak evening hour traffic.
The 92 vehicle trips per day caused by this project would contribute incrementally to
cumulative traffic increase that would cause a decline in the levels of service for Dora
Street and nearby intersections, but it is not anticipated that these impacts will cause
significant adverse impacts. This determination is based on the fact that the subject
area is almost entirely built out and is zoned for Iow density residential development (7
units per acre) or Iow intensity commercial uses that would preclude substantial
increases in development and the traffic it would cause.
The approval of the .proposed rezone and boundary line adjustment and the
subsequent development of the proposed assisted living facility would require the
termination of Berkeley Way at the southern boundary of the project site. The City of
Ukiah was at one time exploring the possibility of extending this 45-foot wide public
street from its southern terminus at Beacon Lane to an intersection with Wabash
Avenue. However, the City Council determined during the preparation of the General
Plan that this route would not be required and it was not included in the Circulation
Element as a planned roadway extension.
The City Engineer reviewed the option of extending Berkeley Way as part of this
project, but determined that this extension would not be needed for through circulation.
This determination is based, in part, on the fact that development in this area has
effectively eliminated the development for high density residential development in the
area between Wabash Avenue and Beacon Lane. This reduction in the potential for
residential development has, in turn, effectively reduced the need to accommodate the
traffic increases such development would have caused.
22
The City Fire Marshal also reviewed the potential termination of Berkeley Way to if
through-access to another public street was required for ingress and egress by
emergency vehicles and the evacuation of residents. Based on the existing street
width and improvements for Berkeley Way and Beacon Lane, the Fire Marshal noted
that the existing circulation plan was adequate, although the improvement of Beacon
Lane would be preferred.
b. Mitigation: None required.
13. PUBLIC SERVICES: The City of Ukiah provides a wide array of public services to the
site, including the provision of public safety services and electrical, water and sewer
services. The City also maintains the Dora Street frontage on the west side of the site.
a.
Impacts: Planning staff contacted various agencies that would provide public services
to the site and noted that none of the agency staffs anticipate any substantial impacts
to existing services or the need for substantial new services. Individual analyses are
outlined below:
.
The Ukiah Fire Marshal noted the proposed assisted living facility structure would
have to comply with a number of Fire Code mandates, including building sprinklers,
second key access, fire access lane requirements, and building code requirements.
However, the Fire Marshal also indicated the development would have no
substantial adverse impacts on fire protection services or area evacuation plans,
and would not require hiring additional fire personnel.
.
City Police Department staff also reviewed the proposed development, indicating
no substantial effects on police services and no additional personnel would be
required to protect the site.
.
Due to the institutional nature of this project and the lack of potential increases in
the school-age population, no referral was made to the Ukiah Unified School
District as the result of the development of the assisted living facility.
.
Due to the institutional nature of this project and the lack of potential population
increases, City Community Services staff anticipates no substantial impacts to
existing recreational facilities as a result of the assisted living facility operation.
.
The proposed assisted living facility would be privately owned and operated, and
would not require public maintenance of its facilities. It would require trenching and
other work to construct underground electrical transmission lines and connection to
off-site water and sewer lines. However, Public Utilities staff determined this work
could be supervised and inspected by existing staff.
.
No other impacts to other governmental service would be caused by the
development of the assisted living facility since no other governmental agencies
provide services on the property.
b. Mitigation: None required.
23
14. ENERGY: The construction and operation of the proposed assisted living facility
would require the use of fuels and other common energy sources, such as electricity.
a.
Impacts: It is not anticipated the development and operation of the proposed assisted
living facility would require substantial levels of fuels or other energy sources since it
would be constructed with an energy-efficient design and materials. In addition, the
project would not substantially increase the number of gasoline-using vehicle trips in
the Ukiah Valley since the number of trips is expected to be less than 100 per day (see
TRANSPORTATION discussion above).
It is not anticipated the construction and operation of the assisted living facility would
require the development of additional energy sources since the project site is in service
areas for existing electrical and natural gas transmission utilities and fossil fuel
dispensers.
b. Mitigation: None required.
15. UTILITIES: The development of the assisted living building would require only the
minor expansion of existing electrical transmission facilities and minor extensions to
existing sewer and water mains that serve the site.
a.
Impacts: Staff of the City Electrical Department indicated the provision of electrical
service to the project site will require expansion of the existing electrical transmission
systems located to the west, which is under the same ownership. Electrical
Department staff indicated this work is not expected to cause long-term power
stoppage or other significant adverse impacts to the transmission facilities in the area.
Water services could also be connected to water mains located in the public right-of-
way for Dora Street, and sewer services could be extended to a main located on the
property to the north, according to staff from the Water and Sewer Department. This
staff also determined the connections required to serve the warehouse building would
not cause long-term stoppages or adverse modifications to existing systems.
b. Mitigation: None required.
16. HUMAN HEALTH: The subject property is in an area of the City that is generally
recognized as having no known sources of contamination or other hazardous conditions
that could expose persons to existing health hazards or create new health hazards.
The project site is located less than 500 feet west of the Ukiah Municipal Airport runway.
As a result of this proximity, the eastern portion of the project site is designated as Zone B-
2 (Approach/Departure Zone Adjacent to Runway) on the Current Compatibilty Criteria
Map of the Ukiah Municipal Airport Master Plan. This zone designates lands that are
considered subject to substantial risk and noise due to aircraft operating at or below 400
above ground level (AGL), and lists multiple family residential land uses as one that is not
normally acceptable. No adverse impacts would be caused from the inclusion of this
portion of the site since no development activities are proposed for this area.
24
The portion of the site proposed for the assisted living facility is located in Airport
Compatibilty Zone C (Common Traffic Pattern), which designates lands subject to frequent
noise intrusion and limited risk from aircraft below 1000 feet AGL. Multiple family
residential land uses are considered normally acceptable uses in these criteria zoning.
a.
Impacts: The proposed assisted living facility would be located in an area of the City
of Ukiah with no known sources of contamination or other environmental hazards.
Furthermore, there is nothing in the proposed design or operation of the building that
would expose its occupants or users of abutting properties to such hazards.
According to the project applicant, all occupants of the assisted living facility will elderly,
but will be ambulatory and able to evacuate the structure with little or no assistance
from staff or emergency personnel. Therefore, no significant adverse impacts to site-
specific or area emergency response or evacuation plans are anticipated. The
anticipated density of 25-30 persons per acre is also well below the permitted density
of 150 persons per acre.
b. Mitigation- None required.
17. AESTHETICS: The proposed assisted living care facility would be a rectangular-
shaped building of approximately 38,850 square feet built around an open courtyard area.
The entire structure would have only one floor, but the western wing would be constructed
with staggered exterior walls covered by roofs that would be between 20 to 26.5 feet in
height. Twenty-foot high roofs would cover the other three wings of the building.
The building would present an institutional appearance due to its large size, but the
architecture purposely includes a number of features designed to make the building more
compatible with the single family homes located to the south and east. These features
include vertical wood siding, gabled roofs, and large paned windows on all elevations and
the use of staggered elevations and patio columns on the west elevation. The building
would also be partially shielded by six-foot high wooden fences and landscape trees on all
sides of the structure.
am
Impacts: The building will definitely present an institutional appearance due to its large
size and the surrounding parking lot facilities. However, it is the opinion of Planning
staff that the one-stow height, the residential design features, and the fencing and
landscaping proposed as part of the building and site design would sufficiently limit the
adverse impacts caused by the building's size to levels that are not significant.
Therefore, no aesthetic mitigation measures are recommended.
b. Mitigation' None required.
18. RECREATION: The closest City-maintained recreation area is Observatory Park,
approximately one-half mile northwest of the project site; the closest full-use park facility is
Oak Manor Park, which is over one mile northeast of the site.
25
The proposed assisted living facility includes an activities room and a large outdoor
courtyard for individual or group activities by building residents. Off-site activities for
resident groups may also be arranged and supervised by facility staff, according to the
applicant.
a. Impacts: Due to the distances between City-maintained parks and the proposed
assisted living facility and the anticipated ages of the facility's residents, substantial
adverse impacts to area recreational facilities are not anticipated from the development or
operation of the facility.
b. Mitigation: None required.
19. CULTURAL RESOURCES: According to resources maintained by the City of Ukiah,
there are no known significant historical, architectural, or ethnic resources on the site.
a.
Impacts: The development of the proposed assisted living facility would not require
the demolition of any buildings or the disturbance of any known prehistoric, historical,
or cultural resources since there are no known resources of this type present on the
property.
b. Mitigation: None required.
20. AIR QUALITY: Potential impacts to air quality at a project site are measured by the
concentrations of a pollutant in the atmosphere above the site, which are largely
dependent on the volumes of pollutant emitted and the atmosphere's ability to dilute the
pollutant. The project site is located within the Ukiah Valley air basin, where air quality has
generally been in compliance with the attainment levels required for all air-borne pollutants
by federal and state air quality standards. According to information received from the
Mendocino County Air Quality Management District, the only known exceptions to air
quality attainment consist of isolated, but regular, occurrences of non-attainment for small
particulate matter (PM- 10).
a.
Impacts: The development of the proposed assisted living facility would cause
increases in pollutants from vehicle emissions caused by traffic to and from the site.
However, this increase is not expected to cause substantial increases in emission
volumes, or any violations of any State or Federal air quality standards or impacts to
local or regional air quality since the number of vehicle trips would not entail substantial
increases in overall traffic volumes. In fact, staff anticipates that persons already living
and working in the Ukiah Valley would account for most of these trips, which would
cause emission volumes to increase at an even lower rate.
The project could also contribute to PM-10 levels if site soils are improperly graded or
heavy construction equipment is used during construction, or open areas are exposed
to wind erosion once the yard area is completed. However, the applicant intends to
construct the building using standard dust suppression methods and standard
construction equipment that does not typically cause major releases of PM-10
materials, and there is no evidence that such levels would increase substantially.
.
.
a. Mitigation: The following measures are.required to mitigate short-term adverse
impacts to air quality from particulate matter caused by construction:
The project site shall be regularly watered to control dust and all mobile equipment
shall be washed regularly to prevent dust from leaving the site.
The following construction methods shall be utilized, as needed, during
development activities to reduce sources of dust and other particulate matter:
a. Extended construction periods to reduce the numbers of days that soils are
left exposed and heavy equipment is in use;
b. Limiting the use of heavy equipment at the same time;
c. Providing adequate spacing between emission sources (e.g. heavy
equipment) on the site; and
d. Reducing or changing hours of construction if work causes congestion
during heavier commute periods.
21. MANDATORY FINDINGS OF SIGNIFICANCE:
al
b=
Potential to degrade: Does the project have the potential to degrade the quality of
the environment, substantially reduce the habitat of a fish or wildlife species, cause
a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate
a plant or animal community, reduce the number or restrict the range of a rare or
endangered plant or animal species, or eliminate important examples of the major
periods of California history or prehistory?
YES
~/NO
Short-term: Does the project have the potential to achieve short term, to the
disadvantage of long term, environmental goals? (A short-term impact on the
environment is one, which occurs, in a relatively brief, but definitive, period or.time;
long-term impacts will endure into the future).
YES
?
~ NO
Cumulative: Does the project have impacts that are individually limited, but
cumulatively considerable? (A project may have impacts on two or more separate
resources where the impact on each resource is relatively small, but where the
effect on the total of those impacts on the environment is significant.)
YES
27
d.
Substantial Adverse: Does the project have environmental effect that will cause
substantial adverse effects on human beings, either directly or indirectly?
YES
22. DETERMINATION: On the basis of this initial evaluation'
I:1 I find the proposed project COULD NOT have a significant effect on the
env, jr. onment, and a NEGATIVE DECLARATION will be prepared.
~~1 find that, although the proposed project could have a significant effect on the
environment, there will not be a significant effect in this case because the mitigation
measures described within the initial study will be incorporated into the design of the
project or required by the City of Ukiah. A NEGATIVE DECLARATION will be
prepared.
/' Title
j~'r lanner/Environmental Coordinator
I find that the proposed project MAY have a significant effect on the environment,
and an ENVIRONMENTAL IMPACT REPORT shall be required.
Charles Stump
Print Name
February 17, 2000
Date
28
RESOURCES USED TO PREPARE INITIAL STUDY
For
FIRSTMARK GROUP Rezone No. 9951; Major Use Permit No. 99-52; and
Boundary Line Adjustment No. 99-53
(Available for review at the Ukiah Planning Department)
1. City of Ukiah General Plan, 1995
2. Ukiah Transit Center Conceptual Desiqn, Thompson & Associates, October, 1996
3. Soil Survey of Mendocino County, Eastern Part, U.S. Department of Agriculture Soil
Conservation Service and U. S. Department of Forestry, 1991
4. Flood Insurance Rate Map (Community/Panel Number 060186/0001 E-revised
August 8, 1985), Federal Emergency Management Agency
5. Landscape Plants for Western Regions, Land Design Publishing, 1992
6. Natural Diversity Data Base, California Department of Fish and Game, 1995
7. City of Ukiah Municipal Code-Noise Requlation (Chapter 1, Article 6), adopted 1980
8. Trip Generation, (6th edition), Institute of Traffic Engineers, 1997
9. Speed Zone Survey Summary (Group A), Ukiah Engineering Department, 1996
10.1993-1996 Ukiah Monthly Ozone Maximums by Hourly Averages, graphics
produced by the Mendocino County Air Quality Management District, 1997
11.Ozone Data Summary (1992-1995), Ukiah-East Gobbi Street Monitoring Station,
State Air Resources Board, 1997
12. Historical and Architectural Resources Inventory Report for the City of Ukiah,
Historic Environment Consultants, 1985
29
AGENDA
SUMMARY
ITEM NO, 7a
DATE: April 5. 2000
REPORT
SUBJECT.
DISCUSSION OF RESULTS FROM MARCH 16, 2000 MEETING WITH
CLARA AVENUE AND FORD STREET RESIDENTS AND CONSIDERATION
OF IMPLEMENTATION OF TRAFFIC CALMING MEASURES
On January 19, 2000, the City Council directed staff to work with the Clara Avenue and
Ford Street neighborhood residents to reach a consensus regarding traffic calming
measures. The City Council wanted to receive input from the neighborhood before
implementing further traffic calming measures.
On January 24, 2000, staff held a pre-meeting with Gordon Bourke, Ukiah Unified School
District; Donna Roberts, former resident of Wagonseller Neighborhood; Anne Cristiani, Eric
Larson, and Tom Greenaway of the Wagonseller Neighborhood; and Steve Turner,
Mendocino Transit Authority. Staff explained the City Council's desire and indicated that a
neighborhood meeting would be scheduled to discuss traffic calming measures. Staff also
indicated that a draft meeting agenda would be sent to those present for their review and
comment before distributing to the neighborhood residents and other interested parties.
(Continued on Page 2)
RECOMMENDED ACTION: Direct staff to implement traffic calming measures reached by
consensus with the Clara Avenue and Ford Street residents at the March 16, 2000 informal
public meeting.
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Direct staff to design and construct other traffic calming measures.
Citizen Advised'
Requested by:
Prepared by'
Coordinated with'
Attachments:
N/A
City Council
Rick Seanor, Deputy Director of Public Works
Otto Bertolero, Interim Director of Public Works/City Engineer
Candace Horsley, City Manager
1.
.
3.
4.
5.
Invitation and agenda for March 16, 2000 Neighborhood Traffic
Calming Meeting
Press release regarding informal neighborhood meeting
Memorandum regarding distribution of notification
Sign-in sheet from March 16, 2000 neighborhood meeting
Minutes of March 16, 2000 neighborhood meeting (to be hand-
delivered)
Candace Horsley, anager
4/Sec.ASRClara
MARCH 16. 2000 MEETING NOTIFICATION
On March 9, 2000, Department of Public Works Street Maintenance staff distributed a total
of 357 invitations and meeting agenda (Attachment 1) notifying residents of the informal
March 16, 2000 neighborhood meeting. The reverse side of the invitation and meeting
agenda was also translated into Spanish. On the same date, a press release regarding the
meeting (Attachment 2) was distributed to 13 local newspapers/radio stations. A
memorandum summarizing the distribution of the invitation, agenda, and press release is
included as Attachment 3.
March 16. 2000 NEIGHBORHOOD MEETING
On March 16, 2000, an informal neighborhood meeting was held at the Civic Center to
discuss traffic calming measures and obtain consensus for an action plan. Approximately
25 citizens attended the meeting, in addition to City Councilmembers Phil Baldwin and
Kathy Libby and Planning Commissioners Eric Larson and Judy Pruden. Staff presented a
brief history of traffic calming on Clara Avenue and Ford Street, and explained various
traffic calming measures. Extensive discussion was had and input was received from those
in attendance. Minutes of the meeting are currently being completed. They will be
distributed to the City Council Monday, April 3, 2000.
MARCH 16. 2000 MEETING CONSENSUS ITEMS
Staff offered a list of various traffic calming measures and took a show of hands to obtain
consensus from the group. The following short-term implementation items were supported
by a majority of those in attendance'
,
2.
3.
4.
Repaint street center line and add raised reflective pavement markers;
Paint white fog line striping to separate travel lanes from parking lanes;
Repaint the white limit bars and pavement markings for the railroad crossings;
Paint the speed limit on street pavement.
FUTURE CLARA AVENUE AND FORD STREET TRAFFIC CALMING ACTION PLAN
At the conclusion of the meeting, staff discussed options for future neighborhood meetings
to evaluate location, design, and cost of other traffic calming measures. The majority of
those present agreed with the recommendation to initiate a core committee to study long-
term solutions for traffic calming. The proposed committee would meet and discuss the
effectiveness of the near term consensus items, and determine which additional traffic
calming measures are to be recommended. Staff stated that all residents would be advised
prior to implementation of future permanent traffic calming measures on the two streets.
CONCLUSION
Staff recommends that the City Council approve implementation of the four March 16, 2000
consensus items.
300 SEMINARY AVE.~ UKIAH, CA 95482-5400
· Al)MIN. 707/463-6200 · PUBUC SAFEI~ 463-6242/6274
· FAX # 707/463-6204 ·
March 7, 2000
RE:
Informal Neighborhood Meeting on Traffic Calming on Clara Ave. and Ford St.
7'00 PM March 16, 2000, Ukiah Civic Center
Dear Clara Ave. / Ford St. Property Owner / Interested Party:
Please accept this invitation to meet with City staff and discuss measures to calm traffic on
Clara Ave. and Ford St. at the Ukiah Civic Center on Thursday, March 16, 2000 at 7:00 PM.
A copy of the agenda for the subject meeting is attached for your convenience.
We appreciate your comments on the neighborhood traffic calming survey which was
presented to the City Council on December 15, 1999. The City Council agreed with the
majority of the respondents to the survey and directed City staff to remove the traffic circles
from Clara Ave. and Ford St. In addition to this action, the City Council directed staff to return
with a report on alternate traffic calming measures, which was discussed on January 19,
2000. At that meeting, City staff was directed to meet with the citizens of Clara Ave. and Ford
St. to discuss options for traffic calming.
If you are not able to attend or if you have any questions, please feel free to call Rick Seanor,
Deputy Director of Public Works, at 463-6296 to discuss your thoughts regarding traffic
calming. Notices will be sent out prior to any future meetings.
Sincerely,
Otto Bertolero
Interim Director of Public Works / City Engineer
Enc.
CC:
Mayor Jim Mastin & City Council Members
Candace Horsley, City Manager
file
'~Ve Are Here To Serve"
Espano'l a'[ rever'so
300 SEMINARY AVE., UKIAH, CA 95482-5400
· ADMIN. 707/463-6200 · PUBLIC SAFETY 463-6242/6274
· FAX # 707/463-6204 ·
Marzo 7, 2000
REF:
Junta Informal de Vecinos, Para Discutir Medidas Para Calmar el
Tr~fico en Clara Ave y Ford Street, el 16 de marzo, 2000, a las
7:00 p.m. en el Ukiah Civic Center. (donde paga el agua)
Estimado Vecino / Propietario / Personas Interesadas:
Por favor acepte esta invitaciOn para discutir m~todos para calmar el tr~fico en
Clara Avenue y Ford Street. Se Ilevar~ a cabo en el Ukiah Civic Center (donde
se paga el agua) el jueves, 16 de matzo del 2000, a las 7:00 de la noche.
Adjunta encontrar~ una copia de la Orden del Dia con los puntos a tratar en esta
reunion.
Apreciamos sus comentarios en la encuesta acerca de las medidas para calmar
el tr~fico, la cu~l fu~ presentada a la junta municipal el pasado15 de diciembre
de 1999. La junta municipal estuvo de acuerdo con la mayoria de las encuestas,
y con los miembros municipales, en remover las glorietas de Clara Avenue y
Ford Street. Adem~s de esto la junta municipal solicitO un reporte con
alternativas para calmar el tr~fico, el cu~l se discutio el 19 de enero, 2000. En
esa junta, se decidio hacer una junta informal con los vecinos y habitantes de
Clara Avenue y Ford Street para discutir las opciones para calmar el tr~fico.
Si Usted no puede asistir a esta reunion, o si tiene alguna pregunta, puede
Ilamar al Sub Director de Obras PQblicas Rick Seanor, al 463-6296 y discutir con
~1 sus ideas referentes a las medidas de tr~fico. Se le enviar~n con anticipaci0n
avisos de reuniones en el futuro.
Sinceramente,
Otto Bertolero
Director Interno de Obras P~blicas/Ingeniero de la ciudad
CC:
Presidente Municipal Jim Mastin y Miembros de City Council
Candace Horsley, City Manager
file
'~X/e Are Here To Serve"
City of Ukiah
INFORMAL NEIGHBORHOOD MEETING ON TRAFFIC .CALMING
ON CLARA AVENUE AND FORD STREET
Ukiah Civic Center
Council Chambers
300 Seminary Avenue
Ukiah, California 95482
THURSDAY, MARCH 16, 2000
7:00 P.M.
AGENDA
I. INTRODUCTION
II. BRIEF BACKGROUND
III. PURPOSE OF MEETING AND GOALS
a,
Discuss Various Types and Methods of Traffic Calming.
Discuss the Need for Future Meetings.
Determine Action Steps/Options.
Receive Public Comment on Traffic Calming.
IV. QUESTIONS AND DISCUSSION.
V. SET DATE AND TIME FOR NEXT MEETING
VI. CLOSING REMARKS.
Espanol al reverso
City of Ukiah
JUNTA INFORMAL DE VECINOS, PARA DISCUTIR MEDIDAS PARA CALMAR
EL TRAFICO EN CLARA AVENUE Y FORD STREET
Ukiah Civic Center (donde paga el agua)
En el Council Chambers
300 Seminary Avenue
Ukiah, California 95482
Jueves 16 de Marzo del 2000
A las 7:00 p.m.
ORDEN DEL DIA
,
II.
III.
IV.
V,
VI.
INTRODUCCION
ANTECEDENTES EN BREVE
METAS Y PROPOSITO DE LA REUNION
a,
Discusi6n de varios tipos y m6todos para calmar el trAfico
Discusi6n de futuras reuniones
Determinar pasos de acci6n
Recibir comentarios del publico acerca de medidas para calmar el
tr~fico
PREGUNTAS Y DISCUSIONES
FI JAR FECHA Y HORA DE LA SIGUIENTE JUNTA
COMENTARIOS FINALES
300 SEMINARY AVE., UKIAH, CA 95482-5400
· Al)MIN. 707/463-6200 · PUBLIC S/~FETY 463-6242/6274 ·
· FAX # 707/463-6204 ·
NEWS RELEASE
DATE:
FOR RELEASE:
THROUGH:
SUBJECT:
INFORMATION:
March 9, 2000
IMMEDIATELY
March 16, 2000
Informal Neighborhood Meeting on Clara Ave. & Ford St. Traffic
Calming
Rick Seanor, Deputy Director of Public Works, 463-6296
The City of Ukiah will host a neighborhood meeting to discuss traffic calming on Clara
Avenue and Ford Street on Thursday, March 16, 2000 at 7:00 PM at the Ukiah Civic
Center, 300 Seminary Avenue. All those interested in discussing traffic calming
measures on these two streets are welcome to attend.
Further questions regarding the meeting should be directed to Rick Seanor, Deputy
Director of Public Works, at 463-6296.
Candace Horsley~
City Manager
CC:
Ukiah Daily Journal
Main Street News
Press Democrat
KUKI & KIAH
KWNE
KFWU
KMFB
KZYX & KZYZ
KNTI
KOZT
Q106
'~Ve Are Here To Serve"
CITY OF UKIAH
MEMORANDUM
DATE:
TO:
FROM:
SUBJECT:
March 15, 2000
The Record
Rick Seanor, Deputy Director of Public Works ~'~
Clara Ave. and Ford St. Informal Neighborhood Meeting
On March 9, 2000, Department of Public Works staff distributed the attached letter to
residents and businesses located in the Clara Ave. and Ford St. neighborhood as shown
highlighted on the attached map. In addition, copies of the letter were delivered to the
store managers of Mervyn's and K-Mart. A total of 357 copies of the letter/agenda were
distributed.
On March 9, 2000, copies of the attached letter were also specifically distributed to the
following:
o
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Candace Horsley, City Manager
Otto Bertolero, Interim Director of Public Works / City Engineer
Mayor Jim Mastin and City Council Members
Police Chief John Williams
Fire Chief Roe Sandelin
Darryl Barnes, Public Utilities Director
Stan Bartolomei, Electric Supervisor
George Borecky, Water/Sewer Operations Superintendent
Bob Sawyer, Planning Director
Gordon Bourke, Ukiah Unified School District
Bob Mort, Pacific Gas & Electric
Maureen Devany, Pacific Bell
Dave Southwick, Adelphia Cable
On March 9, 2000, copies of the attached press release were distributed to the following:
1. Ukiah Daily Journal
2. Santa Rosa Press Democrat
3. Main Street News
4. El Sol
Page 2
March 15,2000
Clara Ave. and Ford St. lnformal Neighborhood Meeting
5. Parents Journal
6. KWNE Radio
7. KFWU
8. KNTI Radio
9. KUKI Radio
10. KZYX Radio
11. Q106 Radio
12. KOZT Radio
13. KMFB Radio
On March 10, 2000, a copy of the attached letter was delivered by hand to Steve Turner,
MTA.
On March 15, 2000, a second copy of the news release was faxed to the Ukiah Daily
Journal at fax'number 468-3544.
CC:
Candace Horsley, City Manager
Otto Bertolero, Interim Director of Public Works / City Engineer
MASONITE
INOZZ~'~
LN.
· * I
City of Ukiah
NEIGHBORHOOD MEETING ON TRAFFIC CALMING
ON CLARA AVENUE AND FORD STREET
Ukiah Civic Center
Council Chambers
300 Seminary Avenue
Ukiah, California 95482
THURSDAY, MARCH 16, 2000
7'00 P.M.
SIGN-IN SHEET
NAME
ADDRESS
775'
CiO; of Ukiah
NEIGHBORHOOD MEETING ON TRAFFIC CALMING
ON CLARA AVENUE AND FORD STREET
Ukiah Civic Center
Council Chambers
300 Seminary Avenue
Ukiah, California 95482
THURSDAY, MARCH 16, 2000
7:00 P.M.
SIGN-IN SHEET
ADDRESS
2.
Z
AGENDA ITEMS 7a
ATTACHMENT NO. 5
MINUTES
CITY OF UKIAH
INFORMAL NEIGHBORHOOD MEETING ON
TRAFFIC CALMING FOR CLARA AVENUE AND FORD STREET
March 16, 2000
STAFF PRESENT
Otto Bertolero, Interim Public Works Director
Rick Seanor, Deputy Public Works Director
Ina Ford, Recording Secretary
OTHERS PRESENT
See Sign In Sheet
(Attached)
The meeting was called to order by Interim City Engineer Otto Bertolero at 7:08 p.m. in
the Council Chambers of the Ukiah Civic Center, 300 Seminary Avenue, Ukiah,
California.
I. INTRODUCTION
Otto Bertolero introduced himself, Rick Seanor, and the Recording Secretary to the
audience, stating this would be an informal meeting to allow residents to express concerns
regarding the past and future traffic calming measures for Ford Street and Clara Avenue.
He advised those present to use the sign in sheet as those persons would receive
information regarding any future meetings for this area.
II. BACKGROUND
Mr. Bertolero stated he has reviewed the files regarding this on-going problem and was
awed at the amount of time and energy which has already been expended in an attempt
to alleviate the situation. He commended residents for their persevering efforts and
although he did not possess every aspect of the history and background, he Wished to
move forward on this project rather than dwell on the past.
A brief review of the project's history revealed:
a. End of 1997- traffic circles were installed and evaluated for approximately
one year.
b. End of 1998 - a petition was submitted to the City requesting the removal of
the traffic circles as they were creating a safety hazard. A neighborhood
meeting was held to discuss the residents' issues.
c. During 1999 - a survey was sent to area residents to determine the desire
of the entire neighborhood. Results of the survey indicated the overall
direction of the neighborhood was to remove the traffic circles.
d. December 1999 - City Council directed the Public Works Department to
Neighborhood Meeting
March 16, 2000
Page 1
remove the traffic circles and return to the Council with alternative traffic
calming measures.
e.
January 2000 - Public Works Department Staff presented the City Council
with a two-pronged option. First, a Iow cost recommendation which could
be implemented quickly while a second long term option could be
determined with input from the residents in order to determine where to
place speed reduction devices with little or no impact to the property owners.
Council did not wish to make a decision without concensus from the
community and directed staff to solicit input from the area residents.
Iii. PURPOSE OF MEETING AND GOALS
Mr. Bertolero explained the purpose for the meeting is to develop an Action Plan for
Traffic Calming on Ford Street and Clara Avenue and reach a consensus with the
neighborhood. The Action Plan may take many forms but if the neighborhood can arrive
at a concensus for the Plan, he will be able to return to Council with the proposals for
consideration and approval. He felt there are measures which can be implemented
immediately while working with the neighborhood on other options which may require more
time and effort to assess locations, costs, and design.
Rick Seanor provided a demonstration with the projector to better explain the examples
of traffic calming contained in the handout (attached). He advised some of the options
discussed in January with the City Council are #16 Chicane which is located at the east
end of Clara Street. The next is #17 the Bulbout, which is being used on School Street.
The roundabout as shown in #21 is a larger version of a traffic circle but requires a larger
area than is currently available. The Speed Hump shown in # 14 is a raised portion, with
a Street Table being similar, only a longer version. Offset Speed Humps were discussed
which would provide a hump in one lane and offset humps alternating along the street at
different intervals in different lanes. One option, which is not listed on the diagram, is
striping a white fog line. A fog line creates psychological traffic calming as it creates the
illusion the street is more narrow. Another option is painting speed limits on the pavement.
Public Works Department has also considered painting the centerline and placing raised
reflective pavement markers along the centerline. This option will provide a better visual
centerline at night as well as create a noticeable physical effect when crossing the raised
markers. As a final option, the possibility of placing stop signs on Ford Street and Clara
Avenue was discussed but the warrant criteria set by CALTRANS would probably not be
sufficient for CALTRANS to allow them. Stop signs could also create a potential for
accidents as well as additional exhaust fumes from stopping and starting.
Mr. Bertolero stated he had recently attended a conference regarding traffic calming
measures and learned which measures were more effective than others. There is no one
set method which works everywhere. He added the striping, which is a Iow cost measure,
Neighborhood Meeting
March 16, 2000
Page 2
was tried in Larkspur with positive results as far as speed reduction. There was a defined
fog line so traffic was not meandering. He stated, currently, there is no centerline on Ford
or Clara allowing traffic to meander to the center without oncoming traffic. Installation of
a centerline and fog line will create 12 foot lanes and if motorists are abiding by the laws
and staying within the 12 foot lanes, they will not be exceeding speed limits. A secondary
result of the slower street speed is traffic will use alternate streets in order to travel at a
faster rate of speed. Another way to explore alternative measures at a minimal cost is
using sandbags to demonstrate a narrow street. This would provide data as to whether
narrowing will work, if not the sandbags will be removed.
IV. QUESTIONS AND DISCUSSION
A question, answer, comment, and response period followed with the below listed results:
Question: Why were the traffic circles removed?
Answer: The petition from the community indicated the traffic circles were hazardous.
Question:
A resident stated he understood the original plan was to continue Orchard
Street across Orr Creek to Brush Street. Is this plan still being anticipated?
Answer:
Mr. Bertolero was not familiar with the history of this project. His opinion
was if this were to be opened, it would relieve some traffic from Ford Street
and Clara Avenue. This project, however is not going to happen soon, so
other measures will need to be considered.
Question:
Would it not be logical to transfer some funding from traffic measures on Ford
and Clara to completion of the Orchard Street Bridge project.
Answer: It could be an option to be considered.
Comment:
A gentleman stated he had watched traffic at the traffic circles and drivers
had difficulty determining how to complete a left hand turn. Should the turn
take place in front of the circle or should the driver go around and turn from
behind the circle. The confusion could lead to a head on collision.
Question:
Are any results available as to the effect the traffic circles had on Ford and
Clara. He did not receive any information and was involved in the original
traffic calming process.
Answer:
Mr. Bertolero stated the information he has seen the before and after
speed studies. Immediately after the implementation of the traffic circles,
there was a three to five mile per hour decrease in speed. Six months
Neighborhood Meeting
March 16, 2000
Page 3
Question:
Comment:
Question:
Answer:
Comment:
Comment:
Response:
afterward when another speed study was conducted, traffic was no longer
traveling at a reduced speed.
Why were traffic calming devices established in one location as opposed to
being implemented along the entire length of the street.
Planning Commissioner Eric Larsen stated traffic circles were done in one
area as an experimental program and this was the target area. The overall
goal was to implement traffic calming along the entire street. In response to
transferring funding from one project to another, the budget for the
experimental project was $40,000 while the budget for the Orchard Bridge,
Brush Street, and the Low Gap intersection is two to three million dollars.
A gentlemen stated his understanding was that funds were given to the City
from K-Mart to build the Orchard Street Bridge, with the City of Ukiah
matching funds. His question was where are the funds for this project and
why are they not being utilized. He felt another traffic corridor such as the
Orchard/Brush Street connection would help to minimize traffic on Ford and
Clara.
Mr. Bertolero stated he was not involved in that process and did not posses
information regarding funding. He wished to have the discussion focus on
traffic calming measures which could be implemented by Public Works
Department at this time.
Comment was made from a lady who had attended previous meetings
regarding the Orchard Bridge stating it was her understanding that K-Mart
had put up funds for the bridge construction, however the City of Ukiah and
the County of Mendocino have not reached an agreement as to the issue of
the property on the opposite side of the Creek. The County of Mendocino
owns the Brush Street extension and the property surrounding it. She felt
the traffic calming would still be an issue whether the bridge were to be
constructed or not.
A gentlemen stated the issue that has arisen concerns the City's failure to
inform the residents as to the progress of the bridge.
Mr. Bertolero stated he will be providing all those persons who signed the
sheet with their names and addresses of the progress of the traffic calming.
He will probably not be able to inform them of the progress on the bridge
construction as this is not under the direct control of Public Works
Department. He added a comment regarding the traffic circle stating
whenever this type of device is implemented, it is necessary to install them
Neighborhood Meeting
March 16, 2000
Page 4
Comment:
Response:
Comment:
Comment:
Comment:
along the entire length of the street, not just at one end. Traffic will speed up
once it has passed the traffic circle, which defeats the purpose. Traffic
calming measures need to be spaced out.
Comment was made regarding the possible marking of the street as this
would be implemented along the entire length. It is important to not hinder
the progress of traffic flow, as this is vital. Concerns are to slow traffic but
not hinder the flow. Periodically the traffic monitoring device would be used
which was helpful to make drivers aware of their speed. These reminders
are helpful in training drivers to slow down.
Mr. Bertolero stated part of the program would involve striping, with speed
limit signs at different intervals along the street. City Council approved
speed zones for the area at their recent meeting. Since last summer, the
City has been doing speed surveys for all the streets within the City limits.
Clara and Ford were reduced. Guidelines indicate signs should read the
next lowest 5 m.p.h, increment. Clara Avenue should have been 30 m.p.h.
with an average of 31 m.p.h., but if circumstances justify lowering the speed
it can be done. In the case of Clara and Ford, with the residential
neighborhood having driveways, bicycle, and pedestrian traffic, they were
able to lower the speed limit to 25 m.p.h.
Planning Commissioner Judy Pruden stated although she does not reside in
the neighborhood, she does own rentals on Clara Avenue. She indicated
her husband works for the school district as a bus driver dropping 100
children per day in this neighborhood. In his opinion, the traffic calming
measures were significant in slowing traffic. In her observation, where no
curbs are available residents park vehicles in their yards which causes
children to walk in the street. She felt curbs, even without the advantage of
sidewalks, would cause vehicles to park at the curb providing children a safer
place to walk. She stated she would like to see some necking down by the
railroad tracks.
A gentleman stated he has a shop on Ford Street to which he frequently rides
his bicycle. He felt traffic devices such as choking are a disaster waiting to
happen as they are dangerous. His suggestion was the Orchard Street
Bridge completion, speed bumps or dips in the road, which appear to work
well in slowing down traffic, and finally having more frequent police patrols
issuing citations for speeding.
Comment was made that the area does not feel like a residential
neighborhood as there are no curb, gutters, or sidewalks. She would like to
see these added, together with bike lanes and centerlines. These additions
Neighborhood Meeting
March 16, 2000
Page 5
would create a safer environment for walkers and bike riders as well as
provide a more residential flavor for the neighborhood causing traffic to slow
down. She realizes this would be a costly solution but questioned the
possibility.
Response:
Mr. Bertolero agreed this is an expensive proposal and might be considered
as a long term solution. He informed the audience that, in California,
installation of sidewalks are not the responsibility of the municipalities but of
each fronting property owner. It could be possible to form a sidewalk
assessment district which would require participation of a majority of the
homeowners. The property owners would fund the improvement costs and
the City would process the district formation. If the majority of the block
approves, the remainder of the property owners on each block must comply.
Comment:
Comment was made with reference to aesthetics and general quality of the
neighborhood being deterred with lots of signs and distractions. He stated
he lives at the end of Ford Street on State and does not feel it is 40 feet
wide.
Response:
Mr. Bertolero stated that portion of Ford Street is narrow and explained
on portions that are less than 40 feet wide, alternate provisions would need
to apply.
Comment:
Mention has been made with reference to the West side of town having a
more residential flavor. He questioned what creates that type of atmosphere.
Is it created by curb, gutter, sidewalk, trees, or what? Perhaps rather than
install deterrents to traffic, the ambiance could be changed to create the
neighborhood flavor.
Response:
Mr. Bertolero stated options such as tree planting have been discussed.
Tree canopies reduce the sense of width of the street, creating a
neighborhood environment, and thereby causing a slow down of traffic
speed.
Comment:
Eric Larsen stated when the Wagonseller neighborhood was constructed, it
was not a part of the city, there were no sidewalk requirements, no traffic
other than neighborhood, and dead end streets. When annexation occurred
and shopping centers were built, the City made Ford and Clara through
streets and designated them as collectors. This resulted in an increase in
traffic from approximately 200 cars per day to around 7000 cars per day
which is city circulation traffic as opposed to neighborhood traffic. He felt
expecting the property owners to provide for curb, gutter, and sidewalk for
Neighborhood Meeting
March 16, 2000
Page 6
safety is ludicrous. In his opinion, it is the City's responsibility to install street
improvements as the through street created the increased traffic problem,
the City is unable to enforce the speed limit, and has no alternative for
diverting traffic. The neighborhood inherited the traffic from the City but has
not received any other compensation such as parks, the least the City can
offer is curb, gutter, and sidewalks. He stated in response to rumble strips,
they are too noisy. The white line issue can be defined by driving down
North Bush Street. He questioned if anyone felt confined while driving that
street. Upon measuring North Bush Street he determined it is 40 feet wide,
as is Clara, has 8 foot parking bays on both sides, sidewalks, curbs, and
gutters, and 4 foot bicycle lanes on both sides. Travel lanes are 9 feet wide.
The City Engineer has required 12 foot travel lanes on Clara and Ford since
this project was begun. North Bush Street carries twice the volume of traffic
as Clara Avenue. He also wished to dispel the notion that the Bridge
construction on Orchard Street would probably not make the neighborhood
safer. He felt that fewer vehicles would tend to increase speed as a larger
volume of traffic has a tendency to decrease speed. Bush Street is one
traffic calming measure which has been successful with no history of
accidents. He added there are several intersections on Church Street which
have humps, making it impossible to drive in excess of 25 m.p.h. With
reference to narrowing lanes, the tree lined lane in Longs parking lot creates
a more relaxed atmosphere. Regarding stop signs, he stated Hortense
Street lobbied for stop signs and now has one on every block. The down
side is an increase in pollutants generated by the stopping and accelerating
of vehicles.
Comment:
A Gentlemen stated, in the past, the City had a cost sharing program with the
property owners as far as installation of sidewalks. Some owners did not
wish to contribute so there are portions where no sidewalk exists.
Question:
A Gentlemen questioned if any response has been received from residents
on Lorraine Street where speed humps have been placed. He felt that
measure was productive in slowing traffic.
Response:
Mr. Bertolero deferred to Rick Seanor who stated there were similar issues
on Lorraine Street. Primarily the volume of traffic as opposed to the speed.
Several measures were tried without much success resulting in speed
humps on Betty and Lorraine Streets. Lorraine Street is unique as it is quite
narrow, with fog lines, which qualifies for a decreased speed limit. With
reference to feedback from the residents, the response to speed humps has
been positive.
Neighborhood Meeting
March 16, 2000
Page 7
Comment:
Comment was made with reference to emergency vehicles being able to
respond appropriately. She felt slowing down emergency traffic could be
crucial. In addition the island at the end of Ford and Orchard Streets
appears to be too large for making a left turn onto Ford from Orchard. She
indicated she has seen larger cars having difficulty making the turn. She
added rumble strips do slow down traffic but are quite noisy. She felt speed
hump would cause problems with people parking along the street. She was
surprised to learn that four way stop signs have to be approved by
CALTRANS. She would like to see four way stop signs at Myron and Ford
and Sidnie and Ford.
Response:
Mr. Bertolero stated in order to have stop signs developed by CALTRANS
the warrant process needs to be completed based on engineering
calculations and criteria, and City approval of the stop signs. He felt
attendees were beginning to develop an appreciation of the different
perspectives and possible solutions of the varied residents. He informed the
residents of another option which would upgrade railroad crossings facilities.
A program known as the 90-10 program exists which municipalities can
apply for. Within this program, the Federal Government will pay 90% of all
costs to upgrade railroad crossings and signals. The process takes about
three years once it has been applied for and he is going to suggest the City
apply for it.
Comment:
A resident indicated she is opposed to the noise connected with rumble strips
which would be psychologically wearing. She is opposed to stop signs
restricting the flow of traffic as well as creating air quality issues in the
neighborhood. She indicated she would be in favor of off set speed tables
which would accommodate emergency vehicles. She is also in favor of
narrowing the lanes and installing sidewalks. She felt addition of sidewalks
would provide more safety as well as increase the aesthetics.
Mr. Bertolero stated due to the lateness of the hour he would take a few more comments
and would like to provide suggestions as to proposals and attempt to determine a
consensus.
Comment:
It appears, from a cost issue as well as use issue, striping with bike lanes
would be easy to accomplish. He felt if the cars were to be placed at a curb
it would provide the effect of a more narrow driving area. He thought speed
tables could be feasible with double striping to eliminate vehicles from
dodging.
Response:
Mr. Bertolero commented a traffic count was completed after the recent
removal of traffic circles. More will be done over time. If any future
Neighborhood Meeting
March 16, 2000
Page 8
measures are attempted, a traffic count will be completed in order to
determine their effectiveness. In answer to a question regarding bike lanes,
he stated as parking is allowed on Ford and Clara, a stripe is placed 12 feet
away from the curbline to allow for bicycles and parking between the fog line
and face of curb.
Mr. Bertolero informed the audience he would present them with a series of proposals too
implement and would like to see, by way of a show of a majority of hands which appeared
to be the most desirable, in order to arrive at a concensus.
.
2.
3.
4.
5.
6.
7.
Centerline Striping - Yes
Speed limit signs painted on the roadway- Yes
Speed Limit Signs posted along the side of the street - No
Railroad crossing painted on the pavement- Yes
Fog lines in each direction, 12 feet (+/-) away from Centerline - Yes
Evaluate narrowing the travel lane from 12 feet to 9 feet. - Yes
Rumble Strips - None
Question arose regarding the possibility of curbs, gutters, and sidewalks. Mr. Bertolero
stated those fall into the long term project category, together with speed humps, tables,
and chokers which are more expensive, and can be discussed at future meetings.
He asked the audience how to proceed. Should the existing neighborhood committee
continue or should there be more of these open meetings?
Eric Larsen suggested smaller committees which would work on their own block, and then
meet with other committees.
Question was raised as to whether there were enough individuals who would be willing to
devote time to these committees with regular consistency. Also whether these committees
would be working on short term or long term plans.
Mr. Bertolero felt he had received the input necessary to provide a concensus on small
items which can be implemented, at Iow cost, to present to the City Council. He felt there
was also concensus on continuing to work with the community on the more difficult
measures which could impact individuals. These items will take longer and require more
meetings with the community.
One resident felt meeting at City Hall was more productive as there are larger facilities and
she was quite impressed with the turnout of the neighborhood.
Concern was expressed with the idea of smaller committees complicating the issues.
Neighborhood Meeting
March 16, 2000
Page 9
Mr. Larsen suggested having a formal committee with representatives from all segments
of the neighborhood. He expressed what may work in one area may not work in another
area.
Judy Pruden suggested the noticing process be adjusted to inform property owners who
do not reside in the area.
Mr. Bertolero assured her that could be accomplished.
CLOSING REMARKS
Mr. Bertolero stated all those attending as well as property owner will be notified of the
next meeting. He thanked all those who attended and participated.
The audience thanked Mr. Bertolero and Mr. Seanor for their presentation, expressing a
positive feeling of community and City cooperation in resolving the issues at hand.
THERE BEING NO FURTHER BUSINESS, THE MEETING WAS ADJOURNED AT 8:45
P.M.
ATTACHMENTS- Sign In Sheet
March 16, 2000 Meeting Agenda
Handout
Otto Bertolero, Interim Public Works Director
Ina D. Ford, Recording Secretary
Neighborhood Meeting
March 16,2000
Page10
ITEM NO. 8a
DATE: April 5. 2000
AGENDA SUMMARY REPORT
SUBJECT:
CONSIDERATION OF EXTENSION OF CONTRACT WITH JEFF McMILLEN FOR
GOLF PROFESSIONAL SERVICES AT UKIAH MUNICIPAL GOLF COURSE
THROUGH OCTOBER 31,2004
On June 16, 1999, the City Council approved a 16-month extension to the Golf Professional Services
contract with Jeff McMillen, commencing June 30, 1999 and terminating October 31, 2000. The
contract (Attachment #1 ) includes a provision allowing the City to extend the contract for four years
through October 31, 2004, contingent upon the Pro requesting renewal by February 15, 2000.
Subsequent to the Pro's submittal of his request on February 7, staff met with him to discuss a minor
revision to the agreement including language clarifying payment of a percentage of the cart rental
revenues to the City.
Clarification of the cart revenue issue is necessary because Paragraph 2.1 of the contract requires
that the "Golf Pro shall pay to City on a quarterly basis 6% of his gross receipts from all concessions
under this contract." Golf cart rentals are included in the list of concessions provided in Paragraph
2, but have not been included in the list of required fees in the past. However, upon commencement
of a new contract, it would be appropriate for the City to collect a concession fee. Staff has also
received comments from the Golf Committee as well as individual golfers regarding the fairness of
the Pro's exemption from these fees. Individual golfers are currently required to pay between $415
and $475 annually for cartpath access and cart storage. These services are currently provided to the
Pro for his 28 rental carts at no charge.
(Continued on Paae 2~
RECOMMENDED ACTION' Approve contract extension with Jeff McMillen for Golf Profess~ona'!
Services through October 31, 2004.
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Determine contract requires further revision and remand to staff with direction.
2. Determine approval of contract extension is inappropriate and move to not approve.
Citizen Advised:
Requested by:
Prepared by:
Coordinated with'
Attachments:
N/A
Jeff McMillen, Golf Pro
Larry W. DeKnoblough, Community Services Director
Candace Horsley, City Manager
1. Current Contract
2. Proposed Contract
_
Candace Horsley~'~3~y Manager
LD4:PROAGR2.ASR
Staff met with the Pro on March 7 to discuss the necessary revisions, at which time the Pro indicated
he understood the need for the revision and was agreeable to the amendments. Through subsequent
negotiations staff and the Pro have tentatively agreed upon an annual fee of $2,500 paid by the Pro
to the City on June 30 of each year of the contract. That amendment to the contract is provided in
paragraph 2.1c of the proposed agreement (Attachment #2). It was further agreed that the Council
would consider the matter during the first meeting in April.
Mr. McMillen has performed satisfactorily and complied with the terms and conditions of the previous
contract. Staff has discussed the contract extension and amendments with representatives of the
Men's and Women's Golf Clubs and all parties are satisfied with terms of the agreement as well as
the Pro's performance. Staff believes the contract, with the inclusion of the fee for cart rentals, is
consistent with the best interests of the Golf Course and therefore recommends approval of the
contract for Golf Professional Services with Jeff McMillen, commencing upon the date of approval and
execution and terminating on October 31, 2004.
GRANT OF LICENSE AND CONCESSIONS
AT UKIAH MUNICIPAL GOLF COURSE
AND INDEPENDENT CONTRACT FOR
GOLF PROFESSIONAL SERVICES
THIS AGREEMENT, made in Ukiah, California, this'.~day of June, 1999, by and
between the City of Ukiah, a municipal corporation, hereinafter called "City," and Jeff
McMillen, a Golf Professional acting as Director of Golf, hereinafter called "Golf Pro."
RECITALS:
1. The City owns and Municipal Golf Course, consisting of an eighteen-hole golf
course, a clubhouse, storage sheds, and equipment for the care and maintenance of the
course.
2. The City wants the services of Jeff McMillen, a Golf Professional (Golf Pro)
available to the public at the course.
3. In order to secure these services the City is willing to grant the Golf Pro a
non-exclusive license to use the City owned Municipal Golf Course facilities to operate and
maintain a pro shop and its contents, golf cart rental business, provide golf lessons for a
fee, and operate an maintain food concessions and related business. In exchange, the
City receives a percentage of the gross revenues from the Golf Pro's businesses operated
under the license, the Golf Pro to act in an advisory capacity between the golfing public
and the City. The Golf Pro schedules play and collects green and other City imposed fees
for use of the Municipal Golf course by the public.
.... 4.. ...... Golf Pro -is-a-.duly--qualified Golf Professional--who..has.the-.necessary
experience and expertise to operate the concessions and manage the facilities subject to
this Agreement.
TERM:
The term of the License and Concessions granted hereunder shall be sixteen (16)
months commencing on approval and execution, and ending at midnight on October 31,
2000. This agreement may be extended at the City's option for an additional four (4) years
prior to October 31,2000 contingent upon the following terms and conditions:
1. Pro shall submit to City in written form a request for extension by February
15, 2000. Upon receipt of Pro's request City shall have until March 31, 2000 to either
extend the agreement for the term specified above, or shall provide written notice to Pro
of its intent not to renew.
2. Should the City terminate the separate Golf Course Consultant contract for
any reason other than material breach with Pro prior to March 31,2000 this contract will
automatically be extended to October 31,2004 without regard and independent of all other
terms and conditions of this agreement.
AGREEMENT:
Therefore, in reliance upon the facts recited herein and upon the conditions and
agreements hereafter stated the parties agree as follows:
1. Revocable License. City grants Golf Pro a non-exclusive, revocable
license to the use of the Municipal Golf Course facilities subject to this Agreement, as
more fully described in the attached Exhibit "A", which is incorporated herein by reference,
for the purpose of operating various concessions as more fully described in Paragraph 2
of this Agreement.
2. Grant of Concessions. City hereby grants to Golf Pro the exclusive
right to operate concessions at said Municipal Golf Course facilities, including golf
instruction, the sale of golf supplies, golf clothing and equipment, and other enterprises
incidental to and consistent with a Pro Shop, and the sale of foodstuffs, confection and
drinks, including beer and wine, but no other alcoholic beverage, provided that the sale
of beer and wine shall not be permitted if it in any way prohibits or interferes with the use
of any portion of the course and clubhouse by any member of the public, including minors,
and golf cart rentals. Such concessions shall be operated by Pro for his own profit and
benefit, and in connection with such operation, he shall maintain the Pro Shop and
immediate area (as on Exhibit "A") in a neat, clean, and orderly condition. Pro shall also
be expected to act as starter and to provide golf cart rentals, both pull and motorized,
sufficient to meet the demand for such items. The Golf. Pro's right to operate the
concessions as provided herein is expressly conditioned on the following:
2.1 Financial Consideration for License and Concessions
a. As partial consideration for the license and concessions
granted hereunder, Golf Pro shall pay to City on a quarterly basis 6% of his gross receipts
from operating all concessions under this contract, including, but not limited to, income
from the sale of food, beverages, and merchandise. "Gross receipts" means all income
to said concessions before deduction for any expenses as determined by generally
accepted accounting principles.
b. The City shall pay on the same quarterly basis to the Golf Pro
6% of the first $150,000 of the daily green fees only, and 5% of the daily green fee
revenues over $150,000.
c. Golf Pro at his own expense will maintain in his own name the
necessary ABC License to permit the sale of beer and wine for consumption on premises
at the Clubhouse, a resale permit from the State Board of Equalization and any other
permits or licenses required by law to engage in the activities authorized by the
Agreement.
2.2 Accountino
Pro shall submit quarterly to City through its City Manager financial
statements satisfactory to City and in compliance with generally accepted accounting
principles, showing his gross receipts and expenses from operating the concessions
granted hereunder for the quarter. Such statements shall be furnished on June 30,
September 30, December 31, and March 31 of each year or on the next business day after
those dates, and shall be prepared and signed by a certified public accountant. City
further reserves the right to inspect and audit at anytime the books and records of the Golf
Pro, which must be maintained at a mutually agreed upon location which is accessible to
City during normal business hours. The Golf Pro shall also keep a detailed record of all
rounds played by fee category and shall make that record available to the Community
Services Director on a monthly basis.
3. Services as Consideration for License and Concessions
As further consideration for 'the grant of the license and concessions
hereunder, Golf Pro shall provide the following services:
3.1 Pro shall supervise the use of the golf Course including golf cart sheds
and golf cart paths and including the opening and closing of the course each day and shall
enforce all rules and regulations adopted by City relating to use of said Golf Course or
conduct of the players thereon now in effect or which may hereafter be adopted. This will
include observation and enforcement of proper private cart registration renewal and use.
Pro shall supervise the speed of play and starting times for all golfers. He shall collect all
green fees, cart storage fees, and path use fees in accordance with the schedule of fees
from time to time adopted by City. The Golf Pro shall account for and remit the cash
receipts to the City every other day April through October and weekly November through
March. He shall keep books and accounts and handle cash in the manner required by
City. In order to protect City against loss, Pro shall file with City a fidelity bond of an
approved surety company in the sum of $5,000.
3.2 Pro shall devote his entire time, skill, labor, and attention to his duties
as herein agreed at said Golf Course during the term of this agreement, permitting,
however, absence at such times for tournaments, conferences, vacation, or other sufficient
reasons as may be approved by City through the Director of Community Services. Pro
shall provide the Director on at least thirty (30) days notice with a schedule of tournaments
and personal vacation days. Pro shall keep the Golf Course and the Pro Shop open,
either by himself or by qualified persons employed by him, seven (7) days each week,
including all holidays except Christmas Day, during all playable hours as determined by
the City Manager or designated agent. Pro shall employ, supervise, and train at his own
expense such number of persons to assist him as may be necessary to provide the
services required of him under this agreement, including, at least one full-time assistant
professional, at no time shall there be less than one (1) qualified person constantly in
charge of the Pro Shop while the course is open. Golf Pro shall have sole discretion to
hire or discharge any employees he requires to fulfill his obligations under this Agreement.
All employees in contact with the public or responsible for the unsupervised care or
protection of City property at any time must meet minimum standards for appropriate dress
and demeanor, as established from time to time by the City Manager, and be bondable.
3.3 Pro agrees to promote and accept credit card payment and pay at his sole
expense all fees and charges related to the acceptance of credit card charges for the
collection of greens and golf related fees.
3.4 Pro shall contribute to City a matching amount, not to exceed $1,000
annually, for the life of this agreement or any extension thereof, for the purpose of
advertising and promotion of increased play at the Course.
4. Independent Contractor, Indemnification
With respect to Golf Pro's provision of services under this Agreement, the parties
intend to.create an independent contractor relationship in which Golf Pro is responsible
for all taxes as a self-employed person wh..o may have employees working for him. They
do not intend to assume the relation of employer and employee, and the City assumes no
relation whatsoever to Golf Pro's employees. The City relies upon Golf Pro to pay al
legally required estimated and actual tax liabilities, self-employment taxes, and to comply
with all tax withholding and other laws in his employment of others in the performance of
this Agreement, including workers' compensation and unemployment insurance laws. Golf
Pro agrees to supply the City with documents which indemnify and hold harmless City and
its officers, agents, and employees from and against any claims by the Internal Revenue
Service, the California Franchise Tax Board, the California Unemployment Insurance
Board, the Division of Industrial Relations or the Worker's Compensation Appeals Board,
the Public Employees Retirement Board and any other similar agency for taxes, fees,
contributions, premiums, penalties, interest or any other sums, including costs of defending
against any such claims, arising from Golf Pro's performance of this Agreement, including
any claims of any nature whatsoever based on said agencies' conclusion that the parties
have assumed any relation other than that of principal and independent contractor.
4.1 Indemnification and Insurance
4.1.1 Indemnification. Pro shall indemnify and hold harmless City
and its officers, agents, and employees from and against any claim, loss or damage,
including the legal and other costs of defending against any claim of damage or loss by
third parties, which arises out of the Pro's performance under this Agreement, except for
claims, losses, or damages resulting from the sole and exclusive negligence or other
wrongful conduct of the City or its officers, agents, and employees.
4.1.2 Insurance. Pro shall comply with the insurance requirements
set forth in the attached Exhibit "C", which is incorporated herein by reference as though
set forth in full.
5. Best Efforts.
Pro shall, to the best of his ability, plan, promote, and conduct the game of golf and
golf events including clinics, lessons, tournaments, and other promotional activities; be
courteous, friendly, cooperative, and responsive to players' needs; maintain a good
relationship and cooperative spirit with the players, Golf Clubs, staff, and committees;
render professional advise, opinions, assistance, and services as required. Pro shall also
participate on all committees and meetings as related to the golf operation; cooperate and
work closely with the Director of Community ServiCes to discuss the quality and playability
of the course, and ways to increase efficiency and lower operating costs; continue to
promote involvement and activities at the clubhouse and course including active
development of new tournaments; play with customers either at home course or in local
pro-ams; actively and enthusiastically promote golf instruction for all groups and levels of
players; represent the City in local or national golf events; and provide merchandise, lunch
concession itemsand a service level which best serves the public. He shall aid,
encourage, and assist in the development of the Junior Golf Program and shall cooperate
with the adult clubs in promoting golfing activities. He shall oversee and administrate
contract provisions for all tournaments and have the exclusive right to designate the pin
placement during tour. nament activities.
6. Full Payment.
The right of concessions hereinabove set forth shall constitute full
payment for all services rendered by Golf Pro to City. .
7. Inventory
The List of Assets, attached hereto as Exhibit "B" and incorporated
herein, identify those items in the Pro Shop and Clubhouse which belong to Pro and City,
respectively. Pro's right of use under this Agreement includes those Cit owned items listed
in Exhibit "B". City and Pro will revise Exhibit "B" from time to time as necessary.
8. TERMINATION
The City may terminate this agreement based on a matedal breach
by Pro. The City shall notify the Pro of any alleged breach of the agreement and of the
action required to cure the breach. If Pro fails to cure the breach within the time specified
in the notice, the contract shall be terminated as of that time. City shall pay Pro only for
the services performed and expenses incurred as of the date of notification of termination.
In such an event all finished or unfinished documents, data, studies, surveys, drawings,
maps, models, photographs, and reports prepared by the Pro under this agreement shall
become City's property and Pro shall immediately deliver such items to City. Within 15
days of said termination Pro shall remove all items from the premises described in Exhibit
"A"which belong to Pro, including those items included in Exhibit "B". The City shall
reimburse Pro for the cost of all items identified in Exhibit "B" less any straight line
depreciated value resulting from use. Pro shall be entitled to receive the compensation
provided herein, subject to off-set for any direct or consequential damages City may incur
as a result of Pro's breach of contract
CITY OF UKIA, I~
Candace-Florsley '~
LD/^GREEMENTS
GOLFPRO.CON
GOLF PRO
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OF UKI.AH
MUNICIPAL GOLF COURSE
County of Mendoc/~o. Cc.'..:'
Match,
GRANT OF LICENSE AND CONCESSIONS
AT UKIAH MUNICIPAL GOLF COURSE
AND INDEPENDENT CONTRACT FOR
GOLF PROFESSIONAL SERVICES
THIS AGREEMENT, made in Ukiah, California, this day of April, 2000, by and
between the City of Ukiah, a municipal corporation, hereinafter called "City," and Jeff
McMillen, a Golf Professional acting as Director of Golf, hereinafter called "Golf Pro."
RECITALS:
1. The City owns and operates a Municipal Golf Course, consisting of an
eighteen-hole golf course, a clubhouse, storage sheds, and equipment for the care and
maintenance of the course.
2. The City wants the services of Jeff McMillen, a Golf Professional (Golf Pro)
available to the public at the course.
3. In order to secure these services the City is willing to grant the Golf Pro a
non-exclusive license to use the City owned Municipal Golf Course facilities to operate and
maintain a pro shop and its contents, golf cart rental business, provide golf lessons for a
fee, and operate an maintain food concessions and related business. In exchange, the
City receives a percentage of the gross revenues from the Golf Pro's businesses operated
under the license, the Golf Pro to act in an advisory capacity between the golfing public
and the City. The Golf Pro schedules play and collects green and other City imposed fees
for use of the Municipal Golf course by the public.
4. Golf Pro is a duly qualified Golf Professional who has the necessary
experience and expertise to operate the concessions and manage the facilities subject to
this Agreement.
TERM:
The term of the License and Concessions granted hereunder shall supersede any
and all previous agreements for Golf Professional Services between City and Pro and shall
commence upon approval by City Council and execution, and terminate at midnight on
October 31, 2004.
AGREEMENT:
Therefore, in reliance upon the facts recited herein and upon the conditions and
agreements hereafter stated the parties agree as follows:
1. Revocable License. City grants Golf Pro a non-exclusive, revocable
license to the use of the Municipal Golf Course facilities subject to this Agreement, as
more fully described in the attached Exhibit "A", which is incorporated herein by reference,
for the purpose of operating various concessions as more fully described in Paragraph 2
of this Agreement.
2. Grant of Concessions. City hereby grants to Golf Pro the exclusive
right to operate concessions at said Municipal Golf Course facilities, including golf
instruction, the sale of golf supplies, golf clothing and equipment, and other enterprises
incidental to and consistent with a Pro Shop, and the sale of foodstuffs, confection and
drinks, including beer and wine, but no other alcoholic beverage, provided that the sale
of beer and wine shall not be permitted if it in any way prohibits or interferes with the use
of any portion of the course and clubhouse by any member of the public, including minors,
and golf cart rentals. Such concessions shall be operated by Pro for his own profit and
benefit, and in connection with such operation, he shall maintain the Pro Shop and
immediate area (as on Exhibit "A") in a neat, clean, and orderly condition. Pro shall also
be expected to act as starter and to provide golf cart rentals, both pull and motorized,
sufficient to meet the demand for such items. The Golf Pro's right to operate the
concessions as provided herein is expressly conditioned on the following:
2.1 Financial Consideration for License and Concession~
a. As partial consideration for the license and concessions
granted hereunder, Golf Pro shall pay to City on a quarterly basis 6% of his gross receipts
from operating all concessions under this contract, including, but not limited to, income
from the sale of food, beverages, and merchandise. "Gross receipts" means all income
to said concessions before deduction for any expenses as determined by generally
accepted accounting principles, except "Gross Receipts" shall not include cart rental fees.
b. The City shall pay on the same quarterly basis to the Golf Pro
6% of the first $150,000 of the daily greens fee revenue only, and 5% of the daily greens
fee revenues over $150,000.
c. The Golf Pro is granted a license for the term of this agreement
to operate any and all carts held by the Pro for rental on the paths of the Golf Course and
to store such carts in the runway area of the cart storage building owned by City. This
license does not extend to any carts or maintenance vehicles owned by City. In full
consideration for the granting of this license, Pro shall pay to City an annual fee of $2,500.
This annual fee shall be paid each year during the term of this agreement to the Director
of Finance commencing on and no later than June 30, 2001 with final payment on June
30, 2004.
d. The Golf Pro agrees to report Gross Cart Rental fees to the City
annually. City agrees not to disclose this Gross Cart Rental revenue information to any
third party, unless compelled by law. The City further agrees to treat this information as
having been received in confidence and will use its best efforts to preserve that
confidentiality provided, however, that Pro shall pay any legal expenses, including
attorney's fees, incurred by City if legal proceedings are commenced to compel the City
to disclose any such information.
e. Golf Pro at his own expense will maintain in his own name the
necessary ABC License to permit the sale of beer and wine for consumption on premises
at the Clubhouse, a resale permit from the State Board of Equalization and any other
permits or licenses required by law to engage in the activities authorized by the
Agreement.
2.2 Accounting
Pro shall submit quarterly to City through its City Manager financial
statements satisfactory to City and in compliance with generally accepted accounting
principles, showing his gross receipts and expenses from operating the concessions
granted hereunder for the quarter. Such statements shall be furnished on June 30,
September 30, December 31, and March 31 of each year or on the next business day after
those dates, and shall be prepared and signed by a certified public accountant. City
further reserves the right to inspect and audit at anytime the books and records of the Golf
Pro, which must be maintained at a mutually agreed upon location which is accessible to
City during normal business hours. The Golf Pro shall also keep a detailed record of all
rounds played by fee category and shall make that record available to the Community
Services Director on a monthly basis.
3. Services as Consideration for License and Concessions
As further consideration for the grant of the license and concessions
hereunder, Golf Pro shall provide the following services:
3.1 Pro shall supervise the use of the golf Course including golf cart sheds
and golf cart paths and including the opening and closing of the course each day and shall
enforce all rules and regulations adopted by City relating to use of said Golf Course or
conduct of the players thereon now in effect or which may hereafter be adopted. This will
include observation and enforcement of proper private cart registration renewal and use.
Pro shall supervise the speed of play and starting times for all golfers. He shall collect all
green fees, cart storage fees, and path use fees in accordance with the schedule of fees
from time to time adopted by City. The Golf Pro shall account for and remit the cash
receipts to the City every other day April through October and weekly November through
March. He shall keep books and accounts and handle cash in the manner required by
City. In order to protect City against loss, Pro shall file with City a fidelity bond of an
approved surety company in the sum of $5,000.
3.2 Pro shall devote his entire time, skill, labor, and attention to his duties
as herein agreed at said Golf Course during the term of this agreement, permitting,
however, absence at such times for tournaments, conferences, vacation, or other sufficient
reasons as may be approved by City through the Director of Community Services. Pro
shall provide the Director on at least thirty (30) days notice with a schedule of tournaments
and personal vacation days. Pro shall keep the Golf Course and the Pro Shop open,
either by himself or by qualified persons employed by him, seven (7) days each week,
including all holidays except Christmas Day, during all playable hours as determined by
the City Manager or designated agent. Pro shall employ, supervise, and train at his own
expense such number of persons to assist him as may be necessary to provide the
services required of him under this agreement, including, at least one full-time assistant
professional, at no time shall there be less than one (1) qualified person constantly in
charge of the Pro Shop while the course is open. Golf Pro shall have sole discretion to
hire or discharge any employees he requires to fulfill his obligations under this Agreement.
All employees in contact with the public or responsible for the unsupervised care or
protection of City property at any time must meet minimum standards for appropriate dress
and demeanor, as established from time to time by the City Manager, and be bondable.
3.3 Pro agrees to promote and accept credit card payment and pay at his
sole expense all fees and charges related to the acceptance of credit card charges for the
collection of greens and golf related fees.
3.4 Pro shall contribute to City a matching amount, not to exceed $1,000
annually, for the life of this agreement or any extension thereof, for the purpose of
advertising and promotion of increased play at the Course.
4. Independent Contractor, Indemnification
With respect to Golf Pro's provision of services under this Agreement, the parties
intend to create an independent contractor relationship in which Golf Pro is responsible
for all taxes as a self-employed person who may have employees working for him. They
do not intend to assume the relation of employer and employee, and the City assumes no
relation whatsoever to Golf Pro's employees. The City relies upon Golf Pro to pay al
legally required estimated and actual tax liabilities, self-employment taxes, and to comply
with all tax withholding and other laws in his employment of others in the performance of
this Agreement, including workers' compensation and unemployment insurance laws. Golf
Pro agrees to supply the City with documents which indemnify and hold harmless City and
its officers, agents, and employees from and against any claims by the Internal Revenue
Service, the California Franchise Tax Board, the California Unemployment Insurance
Board, the Division of Industrial Relations or the Worker's Compensation Appeals Board,
the Public Employees Retirement Board and any other similar agency for taxes, fees,
contributions, premiums, penalties, interest or any other sums, including costs of defending
against any such claims, arising from Golf Pro's performance of this Agreement, including
any claims of any nature whatsoever based on said agencies' conclusion that the parties
have assumed any relation other than that of principal and independent contractor.
4.1 Indemnification and Insurance
4.1.1 Indemnification. Pro shall indemnify and hold harmless City
and its officers, agents, and employees from and against any claim, loss or damage,
including the legal and other costs of defending against any claim of damage or loss by
third parties, which arises out of the Pro's performance under this Agreement, except for
claims, losses, or damages resulting from the sole and exclusive negligence or other
wrongful conduct of the City or its officers, agents, and employees.
4.1.2 Insurance. Pro shall comply with the insurance requirements
set forth in the attached Exhibit "C", which is incorporated herein by reference as though
set forth in full.
5. Best Efforts.
Pro shall, to the best of his ability, plan, promote, and conduct the game of golf and
golf events including clinics, lessons, tournaments, and other promotional activities; be
courteous, friendly, cooperative, and responsive to players' needs; maintain a good
relationship and cooperative spirit with the players, Golf Clubs, staff, and committees;
render professional advise, opinions, assistance, and services as required. Pro shall also
participate on all committees and meetings as related to the golf operation; cooperate and
work closely with the Director of Community Services to discuss the quality and playability
of the course, and ways to increase efficiency and lower operating costs; continue to
promote involvement and activities at the clubhouse and course including active
development of new tournaments; play with customers either at home course or in local
pro-ams; actively and enthusiastically promote golf instruction for all groups and levels of
players; represent the City in local or national golf events; and provide merchandise, lunch
concession items and a service level which best serves the public. He shall aid,
encourage, and assist in the development of the Junior Golf Program and shall cooperate
with the adult clubs in promoting golfing activities. He shall oversee and administrate
contract provisions for all tournaments and have the exclusive right to designate the pin
placement during tournament activities.
6. Full Payment.
The right of concessions hereinabove set forth shall constitute full
payment for all services rendered by Golf Pro to City.
7. Inventory
The List of Assets, attached hereto as Exhibit "B" and incorporated
herein, identify those items in the Pro Shop and Clubhouse which belong to Pro and City,
respectively. Pro's right of use under this Agreement includes those Cit owned items listed
in Exhibit "B". City and Pro will revise Exhibit "B" from time to time as necessary.
8. Termination
The City may terminate this agreement based on a material breach
by Pro. The City shall notify the Pro of any alleged breach of the agreement and of the
action required to cure the breach. If Pro fails to cure the breach within the time specified
in the notice, the contract shall be terminated as of that time. City shall pay Pro only for
the services performed and expenses incurred as of the date of notification of termination.
In such an event all finished or unfinished documents, data, studies, surveys, drawings,
maps, models, photographs, and reports prepared by the Pro under this agreement shall
become City's property and Pro shall immediately deliver such items to City. Within 15
days of said termination Pro shall remove all items from the premises described in Exhibit
"A'which belong to Pro, including those items included in Exhibit "B". The City shall
reimburse Pro for the cost of all items identified in Exhibit "B" less any straight line
depreciated value resulting from use. Pro shall be entitled to receive the compensation
provided herein, subject to off-set for any direct or consequential damages City may incur
as a result of Pro's breach of contract
CITY OF UKIAH
GOLF PRO
BY:
BY:
Candace Horsley
Jeff McMillen
LD/AGREEMENTS
GOLFPRO.CON
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HOLE NO. I0
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GOLF COURSE ....
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CITY OF
J
UKI.AH
MUNICIPAL
GOLF COURSE
I II1 II I
/$ '~ ' ¢$ 9
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¢oun{y o! Mendoc/no. Cc,'..:'
Mat~ , 1974
ITEM NO.
DATE: April 5. 2000
AGENDA SUMMARY REPORT
SUBJECT: CONSIDERATION OF APPOINTMENT TO VACANCY ON THE TRAFFIC
ENGINEERING COMMITTEE
A Press Release was distributed to the Ukiah Daily Journal and other media in the area, which
announced an opening for a public member on the City of Ukiah Traffic Engineering Committee, with
the deadline of February 22, 2000 extended to March 24, 2000. The City received two applications
for the vacancy of a City of Ukiah resident member to the Committee. This vacancy is the result of
Ordinance No. 1025, adopted February 16, 2000, which designated two City of Ukiah residents on
the Committee.
The first applicant is Bill Fernandez, who is retired and a 38 year resident of Ukiah. Mr. Fernandez
had 20 years of service on the Traffic Engineering Committee as the California State Automobile
Association (AAA) representative prior to his retirement from AAA. He is now applying as a public
representative on the Committee. Although he did not completely answer the questionnaire, he
indicated that his past tenure on the Committee should suffice. The second applicant is Diane
Zucker, a Medical Independent Study Teacher for the Ukiah Unified. School District who has been a
resident of Ukiah for the past 11 months, and a resident of Mendocino County for the past 26 years.
Currently, the Traffic Engineering Committee is comprised of the City Manager, Chief of Police, City
Engineer, Planning Director, the Superintendent of Public Works or their duly appointed
representative, together with a representative of the local transit authority (MTA), and two City
residents of driving age, each of whom may from time to time be determined and appointed by the
Council.
RECOMMENDED ACTION: Adopt Resolution Making Appointment to the Traffic Engineering
Committee.
ALTERNATIVE COUNCIL POLICY OPTIONS: Direct the City Clerk to re-advertise for the vacancy.
Citizen Advised: N/A
Requested by: Traffic Engineering Committee
Prepared by: Marie Ulvila, City Clerk
Coordinated with: Candace Horsley, City Manager
Attachments: 1. Press Release advertising vacancy
2. Applications: Bill Fernandez and Diane Zucker
3. Resolution making appointment to the Traffic Engineering Committee
APPROVED: c-~~'',
Car~da~e Horsley, City IV~nager Asr:trafapmt
300 SEMINARY AVE., UKIAH, CA 95482-5400
· ADMIN. 707/463-6200 · PUBLIC SAFETY 463-6242/6274
· FAX # 707/46_~-6204 · EMAIL: ukiahcty®jps.net ·
NEWS RELEAS
VACANT SEAT ON CITY OF UKIAH
TRAFFIC ENGINEERING COMMITTEF
DATE:
FOR RELEASE:
SUBJECT:
CONTACT:
February 24, 2000
Immediately
Vacancy on City of Ukiah Traffic Engineering
Committee
Marie Ulvila, City Clerk, 463-62t7
UKIAH, CA. - The City of Ukiah announces an opening for a public member on the City
of Ukiah Traffic Engineering Committee. If you are a City of Ukiah resident, of driving age,
and are interested in serving as a volunteer on the committee, we urge you to fill out an
application. Any qualified individual who would like to make a difference in the community
may apply.
Pursuant to the Municipal Code, the Traffic Engineering Committee serves as the City's
Traffic Engineer. The general duty of the Traffic Engineer is to determine the installation
and proper timing and maintenance of traffic control devices and signals, to conduct
eng.ineer, ing analyses of traffic accidents and to devise remedial measures, to conduct
eng~neenng and traffic investigation of traffic conditions and to cooperate with other City
officials in the development of ways and means to improve traffic conditions, and to carry
out the additional power and duties imposed by City Ordinances. In most cases, the
Traffic Engineer submits its recommendations to the City Council for approval.
Applications may be obtained at the reception counter in the administration wing of the
Ukiah Civic Center, 300 Seminary Avenue, or call 463-6217 and an application will be
mailed to you. The extended deadline for submittal is 5:00 p.m. on March 24, 2000. The
pointment will be made at the regular City Council meeting of April 5, 2000.
Marie Ulvila, City clerk
c~
KUKI/KIAH KMFB
KWNE KZYX
KFWU KOZT
KNTI Q106
Ukiah Daily Journal
Main Street News
Press Democrat
Clerk:pr022400
'~(/e Are Here To Serve"
Date
CITY OF UKIAH
APPLICATION FOR TRAFFIC ENGINEERING COMMITTEE APPOINTMENT
I am applying for an appointment to the City of Ukiah's Traffic Engineering Committee
, .
2. Residence Address .,4'".~/,"
3. Business Address ------
4. Employer / / p' -, ''''~ ¢ ~!A:;'Job title
Res. Phone__~/~-
Bus. Phone ---~
Employed since
5. How long have you resided in Ukiah? ~'~ years; Mendocino County?.. ?,-~ California?
6. Please list community groups or organizations you are affiliated with. Indicate office held.
I?'. '
~, ,/ .?.;-' .
?
Please answer the following questions on separate sheets of paper and attach.
7. Why are you applying to serve on the City of Ukiah's Traffic Engineering Committee?
8. What is your understanding of the purpose, role and responsibility of the Traffic Engineering
Committee?
.
How do you believe your own skills, experience, expertise and perspectives will be beneficial
to the work of the Traffic Engineering Committee?
10.
What do you believe is the single most important traffic related issue facing our community?
and why? ·
11.
In your opinion, what other transportation issues/problems should the City expend its limited
resources to resolve?
12. What kind of ideal community do you envision for Ukiah?
13.
Are there any other City of Ukiah Committees/Commissions in which you are interested, and
on which you would be willing to serve?
14. Do you have any known projects or conflict of interest related to this Committee?
SUBMIT THIS APPLICATION TO: City of Ukiah, Attn: City Clerk, 300 Seminary Avenue, Ukiah,
CA 95482-5400
Comms:aptrafc
Revised: 8/20/99
CITY OF UKIAH
CITY CLERK'S DEPARTMENT
i i i i i
CITY OF UKIAH
APPLICATION FOR TRAFFIC ENGINEERING COMMITTEE APPOINTMENT
Date ~,~~_.~/
I am applying for an appointment to the City of Ukiah's Traffic Engineering Committee
1. Name., ,~./?~~,.. _~__ [,}C/~ ¢~/~
2.
Residenoe
Address
8. Business Address Bu~. Phone
5. How long have you resided in Ukiah?/[~~a~; Men~ocino County9 ~~alifornia9
6. Please list community grouEs or omanizations vou are affilia~dwith. In~te office hRId.
Please answer the following question~ on separate sheets of paper and attach.
7. Why a~e you applying to se~,e oq the City of Ukiah's Traffic Engineering Committee?
8. What is your understanding of the purpose, role and responsibility of the Tra~c Engineering
Committee?
,
How do you believe your own skills, experience, expertise and perspectives will be beneficial
to the work of the Traffic Engineering Committee?
10.
What do you believe is the single most important traffic related issue facing our community?
and why? '
!1.
In your opinion, what other transportation issues/problems should the City expend its limited
resources to resolve?
12. What kind of ideal community do you envision for Ukiah?
13.
Are there any other City of Ukiah Committees/Commissions in which you are interested, and
on which you would be willing to serve?
14. Do you have any known projects or conflict of interest related to this Committee?
SUBMIT THIS APPLICATION TO: City of Ukiah, Attn: City Clerk, 300 Seminary Avenue, Ukiah,
CA 95482-5400
Comms:aptrafc
Revised: 8/20/99
MAR 6 2000
CITY OF UKIAH
CITY CLERK'S DEPARTMENT
7. Although I have been a resident of Mendocino Couny for 28 years, I am a fairly new resident
in Ukiah. My family purchased a home at 624 Joseph Street about a year ago. I am very
interested in becoming involved in Ukiah and feel serving on the Traffic Engineering Committee
would be an important start in contributing to my community.
8. I believe the Committee reviews concerns and questions of community members involving
the traffic engineering guidelines and regulations.
9. I have had extensive experience on committees and boards as both an involved community
member in Fort Bragg, and as a teacher/administrator in Laytonville. I am always willing to do
my homework, listen to others, and follow through.
10. I feel the most important traffic related issue facing our community is how to plan for the
most efficient use of our roads and sidewalks to accomodate a growing amount of automobiles;
along with planning for increased opportunities for people on bikes and on foot.
11. Dealing with question 10 is plenty.
12. I have fallen in love with Ukiah. I feel the community cares about reserving old buildings,
takes care of the parks, and generally shows a spirit that makes the town a pleasure to live in. I
hope that with the inevitable growth that the town will retain the positive characteristics of a
small town.
13. I need to become more acquainted with the workings of Ukiah before answering this
question.
14. No.
RESOLUTION NO. 2000 -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH
MAKING APPOINTMENT TO THE TRAFFIC ENGINEERING COMMITTEE
WHEREAS, the vacancy on the Traffic Engineering Committee was duly advertised
until the close of applications on March 24, 2000, with submitted applications timely
received and submitted to Council for consideration; and
WHEREAS, the appointment to said vacancy meets the requirement of Ukiah
Municipal Code [}7030, that a City resident of driving age be appointed as a member of the
Traffic Engineering Committee; and
NOW, THEREFORE, BE IT RESOLVED, that the Ukiah City Council hereby makes
the appointment of to fill the vacancy of a public member on the
Traffic Engineering Committee.
PASSED AND ADOPTED this 5th day of April, 2000, by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
Jim Mastin, Mayor
Marie Ulvila, City Clerk
reso:trafceng
Item No. 8c
Date: April 5, 2000
AGENDA SUMMARY REPORT
SUBJECT: Authorize the Mayor to Execute an Interest Rate Exchange Transfer Agreement
with Palo Alto, Roseville and Silicon Valley Power relative to the Hydroelectric Project
operated by the Northern California Power Agency.
REPORT: The Northern California Power Agency ( NCPA ) Commission voted in October
1999 to enter into an interest exchange agreement with respect to bonds issued for the
Hydroelectric project owned by the participants and operated by NCPA. This agreement
basically allows the swap or exchange of fixed rate debt for a variable interest rate. It would
be structured so that participants would pay the market maker or bank the fixed rate payment
due on the bonds and the market maker would pay the participants interest based on the
variable rate. Therefore, when variable rates are below the fixed rate, the exchange results in
a savings or payment to the participants. However, if the variable rate increases above the
fixed rate, the exchange results in increased payments by the participants. This arrangement
would create a derivative instrument that "plays the odds" of variable rates staying below fixed
rate debt over time.
The participation percentages in the Interest Rate Exchange will be exactly the same
as in the third phase agreement for construction, operation and financing of the Hydroelectric
project except as provided in the various side agreements among the Project participants.
Under that agreement Healdsburg and Ukiah combined have a 3.7 % interest.
( Continued on page 2 )
RECOMMENDED ACTION · Authorize the Mayor to Execute an Interest Rate Exchange
Transfer Agreement with Palo Alto, Roseville and Silicon Valley Power relative to the
Hydroelectric Project operated by the Northern California Power Agency.
ALTERNATIVE COUNCIL POLICY OPTIONS: Deny Authorization and Direct Staff as to
Alternative.
Citizen Advised: N/A
Requested by: Darryl L. Barnes, Director of Public Utilities//L~;~.
Coordinated with: Candace Horsley, City Manager
Attachment:l) Memorandum from City Attorney
2) January 11,2000 NCPA Memorandum from James W. Walen
3) Interest Exchange Transfer Agreement
4) October 21, 1999 NCPA Memorandum from George Fraser
APPROVED:(,~~, o I~
Can~ace 'Ir---Ior--sl~y~ ~ty~Manager
Page 2
Staff believes that the financial risk associated with this type of interest rate derivative
would not be appropriate for Ukiah. In addition, this type of exchange only works if variable
rates stay below the fixed rate of the bonds of approximately 6.75%. The current trend of
interest rates have been upward and staff believes that this deal has a greater potential for
risk than reward. Therefore, Ukiah did not want to participate in the Interest Rate Exchange
Agreement, but did not want to stop the other participants from going ahead. We requested
that the other participants take our share of the Interest Rate Exchange Agreement.
Subsequent discussions led NCPA to believe that the three largest participants in the
Hydroelectric Project would be willing to each take a 1/3 share of Ukiah's 2.0 % participation
in the Interest Rate Exchange Agreement. The Transfer Agreement was prepared to transfer
a 1.233 % of the Interest Rate Exchange Agreement to each of Roseville, Palo Alto and
Silicon Valley Power to cover both Ukiah and Healdsburg's 3.7% share of the Project.
The Transfer Agreement is to be executed before the Interest Rate Exchange
Agreement to ensure that the market maker to the Interest Rate Exchange Agreement looks
only to Palo Alto, Roseville and Silicon Valley Power and not Ukiah for any payments that
need to be made under the Interest Rate Exchange Agreement. Ukiah will continue to make
payments based on the debt requirement already in place, and will not change as a result of
this agreement.
The City Attorney has reviewed the Transfer Agreement and may want to advise the
Council of any legal concerns relative to the execution of the aqreement. Should the City
Attorney have no legal concerns with execution of the agreement, staff would recommend that
Council authorize the Mayor to execute the Interest Rate Exchange Transfer Agreement.
Law Offices Of
RAPPORT AND MARSTON
An Association of Sole Practitioners
405 W. Perkins Street
P.O. Box 488
Ukiah, California 95482
e-mail: drapport@pacbell.net
David J. Rapport
Lester J. Marston
Scott Johnson
(707) 462-6846
FAX 462-4235
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Honorable Mayor and City Counqil~
David J. Rapport, City Attorney~
March 30, 2000
- ',.1..><~
Agreement to transfer rights and obligations under interest rate exchange agreement
I was asked to review and comment on the proposed agreement between the Cities of Ukiah and
Healdsburg, on the one hand, and the Cities of Palo Alto, Roseville and Santa Clara, on the other.
The principal concern for the City of Ukiah under the terms of the agreement is that the City remains
liable under the Interest Rate Exchange Agreement, if the "Acquiring Participants" (Palo Alto, Roseville
and Santa Clara) default?
The agreement provides certain assurances and remedies to the City in the event of a default.2
Nevertheless, since the City has decided not to participate in the interest rate swap, the City Council
must decide whether it wants to assume this risk. If the City declined to enter the Transfer Agreement,
none of NCPA's members could enter the Transfer Agreement.
NCPA believes that an interest rate swap will produce interest savings. The interest rate swap is made
under an Exchange Agreement. Under the Exchange Agreement, NCPA agrees to pay the fixed interest
due under the bonds it issued to finance the North Fork Stanislaus River Hydroelectric Project ("Hydro
Project No. 1") to a bank or investment banker. In exchange, the bank agrees to pay NCPA interest
based on variable interest rate securities owned by the bank. If the short-term variable interest rate in a
ZAgreement for Transfer of Rights and Obligations Under An Interest Rate Exchange Agreement
Relating to Hydroelectric Project Number One Revenue Bonds ("Transfer Agreement"), Section 7 (b), p.
6.
2For example, the Acquiring Participants are only obligated to make payments due under the
Exchange Agreement from the revenues of their electric utility (Sec. 5(b)), but they are obligated to set
their electric rates and operate their utilities in a manner to raise sufficient revenues to satisfy their
obligations under the Exchange Agreement. (Sec. 5(d).) Similarly, if an Acquiring Participant elects to
sell its electric system, it must provide the Transferring Participant with 90 days advance notice of the
sale, and set aside in a trust account sufficient funds to satisfy its obligations under the Exchange
Agreement and the Transfer Agreement.
Memorandum to Council
Subject: NCPA interest rate swap agreement
Date: March 30, 2000
Page 2
given month is lower than the long-term fixed rate on the bonds, then NCPA gets the difference as a
payment from the bank. If the short-term variable rate is higher than the long-term fixed rate, NCPA
must pay the difference to the bank. NCPA's financial advisers project that overall the short-term rate
will be lower and NCPA will derive net interest savings.
City staff believes that interest rates are likely to go up rather than down, and prefers the certainty of the
relatively Iow fixed interest rate on the bonds. The staff at Healdsburg has reached the same conclusion.
As a result, Ukiah and Healdsburg have elected not to participate in the Exchange Agreement.
In order to permit the other participants in Hydro Project No. 1 to make this interest rate swap, NCPA has
proposed the Transfer Agreement, under which Palo Alto, Roseville and Santa Clara (the "Acquiring
Participants") will assume the obligation of Ukiah and Healdsburg (the "Transferring Participants") to
make payments to the bank, when the long-term fixed rate is lower than the short-term variable rate, and
Transferring Participants assign to the Acquiring Participants the right to receive payments from the
bank, when the fixed rate is higher than the variable rate.
Under the Transfer Agreement, Palo Alto, Roseville and Santa Clara each take 113 of the combined
percentage of the Exchange Agreement held by Healdsburg (1.66%) and Ukiah (2.04%), totalling 3.7%.
This means that each of the Acquiring Participants assumes an additional 1.2333333% interest in the
Exchange Agreement.
Healdsburg's City Council has already approved this agreement.
''cPA
A PUBLIC AG£NCY
180 Cirby Way, Roseville CA 95678
(916) 781-4246
(916) 781-4255 FAX
January 11, 2000
Darryl Barnes
City Ukiah
300 Seminary
Ukiah, CA 95482
Subject: Interest Rate Exchange Transfer Agreement
Dear Darryl'
As you recall, the NCPA Commission recently approved interest rate exchange agreements on
NCPA's Hydroelectric Plant and Geothermal Plant, contingent on other members taking
Healdsburg's and Ukiah's shares. Subsequent to that, Dick Rosenbaum contacted Palo Alto,
Roseville, and Silicon Valley Power about doing that for only the Hydroelectric plant - since
Healdsburg's and Ukiah's shares are relatively small (3.7% combined share). This letter is sent as
follow-up to Dick's contact with you.
Enclosed is a draft of an agreement to transfer one-third of Healdsburg's and Ukiah's shares in the
Hydroelectric Plant interest rate exchange agreement to each of Palo Alto, Roseville and Silicon
Valley Power. I am advised by NCPA's legal counsel, Dennis DeCuir, that all parties will need
their city council's approval of this agreement. Please submit this document to your city attorney to
begin the review and approval process.
This transfer agreement's terms and conditions are based on a prior Geothermal Plant Transfer
agreement which involved most of the geothermal project participants and which was approved by
city councils in 1984. Although the agreement is difficult for laymen to read and understand, the
process of obtaining city council approval for this type of document has worked in the past.
The transfer agreement will become effective upon its execution by all parties. Therefore, your city
attorney will need to coordinate with NCPA and all other participants in this agreement (currently
Healdsburg, Palo Alto, Roseville, Silicon Valley Power and Ukiah) on a single agreement
acceptable to all parties.
Following execution of the agreement by all parties, NCPA will then proceed to solicit bids from
qualified financial institutions and will enter into the interest rate exchange agreement. You may
want to consider also each taking one-third of Healdsburg's and Ukiah's share of a Geothermal
Plant interest rate exchange agreement. (Their combined share is currently 7.3%, rising to 9.4% in
2001). Doing so would make the potential benefits greater and make it more worthwhile to go
through the effort to obtain city council approval. This would require your city council to approve a
second transfer agreement similar to the enclosed transfer agreement.
Attached for your background information is a table showing the estimated benefits of the
transaction after the Hydro transfer and also after both the Hydro and Geo transfer. If you would
like NCPA to have another version of this agreement drafted for a Geothermal Plant interest rate
exchange transfer agreement, please let me know. Also, enclosed for your information is a copy of
the previous staff report to the NCPA Commission on this subject.
It seems to me that it may be helpful to have some or all of the following to facilitate the review
and approval of the attached transfer agreement by your city attorney and city council:
1. A presentation to your city council on the merits of an interest rate exchanee agreement and this
transfer agreement.
2. A short, written layman's explanation of the transfer agreement.
3. Q & A page for common questions that are sure to be asked about the transfer agreement.
4. A draft staff report which recommends approval of this transfer agreement by your city council.
I am not familiar with the process that you used in the past in dealing with issues like this with your
city council, i.e. how much of the above you chose to do yourself. As you proceed in this transfer,
NCPA staff can assist you, if you wish, in all of these tasks. I'd be pleased to answer any of your
questions. A copy of this letter is being sent to all project participant's Utility Directors for their
information.
Sincerely,
Xlame's W. Whalen
Administrative Services
Business Unit Manager
JWW/mm
2.16
cc: Dennis DeCuir
Gene Carron
Tony Fisher
George Fraser
Dale Lain
Dick Rosenbaum
John McGuire
UD's of: Alameda, Biggs, Gridley, Lodi, Lompoc, Plumas Sierra, TID
Attachments: 1. Interest Rate Exchange Agreements estimated annual savings
2. Agreement to the transfer of rights and obligations under an interest rate exchange
3. Form of City council opinion
4. NCPA staff report
This letter was also addressed to:
· Bill Duarte, City of Healdsburg
· Tom Habashi, Utility Director
· James Pope, Utility Director
· John Ukich, City of Palo Alto
Daryl Barnes, City of Ukiah
NORTHERN CALIFORNIA POWER AGENCY
INTEREST RATE EXCHANGE AGREEMENTS
ESTIMATED ANNUAL SAVINGS
HYDROELECTRIC Original Estimate~
With Healdsburg's and Ukiah's
share of Hydroelectric Plant
Palo Alto Roseville
Silicon Valley
Power
$ 366,720 $192,000 $ 592,320
386,453 211,733 612,053
GEOTHERMAL Original Estimate2
With Healdsburg's and Ukiah's
share of Geothermal Plant
0 91,341 478,042
34,412
125,753
512,454
BOTH Geothermal and Hydroelectric
Original Estimate
With Healdsburg's and Ukiah's share of
Hydroelectric and Geothermal Plants
366,720
420,866
283,341
337,487
1,070,362
1,124,508
Based on a $107,140,000 interest rate exchange agreement.
Based on a $75,660,000 interest rate exchange agreement.
NCPA
January 7, 2000
AGREEMENT FOR TRANSFER OF RIGHTS AND OBLIGATIONS UNDER AN INTEREST
RATE EXCHANGE AGREEMENT RELATING TO
HYDROELECTRIC PROJECT NUMBER ONE REVENUE BONDS
Dated as of 2000
By and Among
City of Healdsburg
City of Ukiah
and
City of Palo Alto
City of Roseville
City of Santa Clara
D\WHALENqqYDRO -AGP. F_~{ENT.DOC
TABLE OF CONTENTS
Page
.
.
6.
7.
8.
.
10.
11.
12.
13.
14.
DEFINITIONS ............................................................................................................... 2
PURPOSE ...................................................................................................................... 3
CONSENT TO ASSIGNMENTS ................................................................................... 3
TRANSFER OF RIGHTS, BENEFITS AND OBLIGATIONS UNDER THE
MEMBER AGREEMENT WITH RESPECT TO THE INTEREST KATE
EXCHANGE AGREEMENT ......................................................................................... 3
RATES AND CHARGES .............................................................................................. 3
ANNUAL BUDGET AND BILLING STATEMENT .................................................... 4
OBLIGATIONS IN THE EVENT OF DEFAULT UNDER THIS AGREEMENT ......... 5
OBLIGATIONS IN EVENT OF DEFAULT UNDER THE MEMBER
AGREEMENT ............................................................................................................... 6
TRANSFERS, SALES AND ASSIGNMENTS OF TRANSFERRED
PERCENTAGES ............................................................................................................ 6
SALE OF ELECTRIC SYSTEM .................................................................................... 7
DIRECTION AND REVIEW ......................................................................................... 7
TERM ............................................................................................................................ 7
TERMINATION AND AMENDMENTS ....................................................................... 8
MISCELLANEOUS ....................................................................................................... 8
APPENDIX A- SCHEDULE OF TRANSFERRING PARTICIPANTS AND
TRANSFERRED PERCENTAGES ........................................................................... A- 1
APPENDIX B - FORM OF OPINION OF COUNSEL ..........................................................B-1
D\WH..XLEN~YDRO -AGREEIvtLa'NT.D OC -i-
An extra section break has been inserted above this paragraph. Do not delete this section break if
you plan to add text alter the Table of Contents/Authorities. Deleting this break will cause Table
of Contents/Authorities headers and footers to appear on any pages following the Table of
Contents/Authorities.
D\WH.q. ENx/-IYDRO -AGREEMENT.DOC
AGREEMENT FOR TRANSFER OF RIGHTS AND OBLIGATIONS UNDER AN INTEREST
RATE EXCHANGE AGREEMENT RELATING TO
HYDROELECTRIC PROJECT NIJMBER ONE REVENUE BONDS
This AGREEMENT FOR TRANSFER OF RIGHTS AND OBLIGATIONS
UNDER AN INTEREST RATE EXCHANGE AGREEMENT RELATING TO
HYDROELECTRIC PROJECT NUMBER ONE REVENUE BONDS (as amended and
supplemented in accordance with the terms hereof, the "Agreement"), dated as of December 1,
1999, by and among the City of Healdsburg and the City of Ukiah (each, a "Transferring
Participant") and the City of Palo Alto, the City of Roseville and the City of Santa Clara (each,
an "Acquiring Participant"),
WlTNESSETH:
WHEREAS, the Northern California Power Agency ("NCPA") is a public entitv
duly organized and existing pursuant to the Northern California Power Agency Joint Powers
Agreement, dated as of July 19, 1968, as amended and supplemented (the "Joint Powers
Agreement") and the provisions relating to the joint exercise of powers found in Chapter 5 of
Division 7 of Title 1 of the Government Code of the State of California (the "Act"); and
- WHEREAS, NCPA is authorized pursuant to the provisions of the Joint Po~vers
Agreement and the Act to acquire and construct, or cause to be acquired and constructed, and to
operate or cause to be operated, a project within the State of California for the generation or
transmission of electric energy (including a capacity right in such a project) and to sell the
capacity and energy of such project; to enter into agreements with respect to any matters relating
to the acquisition, construction and operation of such project and the sale of capacity and energy
of such project; and to finance the acquisition, construction and operation of such project through
the issuance of bonds, notes and other evidences of indebtedness under the Act; and to issue
bonds to refund such bonds, notes or other evidences of indebtedness; and
WHEREAS, NCPA and the cities of Alameda, Biggs, Gridley, Healdsburg, Lodi,
Lompoc, Palo Alto, Roseville, Santa Clara, and Ukiah and the Plumas-Sierra Rural Electric
Cooperative (collectively, the "Project Participants") have entered into the Agreement for
Construction, Operation and Financing of the North Fork Stanislaus River Hydroelectric
Development Project, dated as of September 1, 1982, as amended (the "Member Agreement"), to
provide for the construction, operation, and financing of the North Fork Stanislaus River
Hydroelectric Development Project (the "Project"), the sale by NCPA of capacity and energy of
the Project to the Project Participants, and the security for the bonds, notes and other evidences
of indebtedness to be issued to finance the Project; and
WHEREAS, the City of Healdsburg has a 1.66% Project Entitlement Percentage
(as defined in the Member Agreement) in the Project pursuant to the Member Agreement and the
City of Ukiah has a 2.04% Project Entitlement Percentage in the Project pursuant to the Member
Agreement; and
WHEREAS, pursuant to an Indenture of Trust, dated as of March 1, 1985 (as
amended and supplemented, the "Indenture"), between NCPA and State Street Bank and Trust
D\WHALEN'~I YDRO -AGREEMEN-r. DOC
Company, N.A., as successor Trustee, NCPA has issued its bonds (the "Bonds") to f'mance the
cost of acquisition and construction of the Project or to refund any outstanding bonds; and
HERAS, NCPA has authorized certain officers of NCPA to enter into one or
more interest rate exchange agreements with respect to the outstanding Bonds as authorized by
Sections 5922 and 53534 of the California Government Code; and
WHEREAS, the interest rate exchange agreement is being entered into with the
intention of obtaining a net economic benefit over the life of the agreement; and
WHEREAS, periodic payments under the interest rate exchange agreement may
result in either a payment to NCPA from the counterparty or payments to the counterparty from
NCPA, and
WHEREAS, the terms and conditions of each such interest rate exchange
agreement shall be as set forth in the ISDA Master Agreement, as amended and supplemented by
the Schedule to the Master Agreement, in the form approved by NCPA (such ISDA IVlaster
Agreement, as so amended and supplemented, being referred to as the "Exchange Agreement");
and '~
WHEREAS, each such interest rate Exchange shall constitute a transaction under
the Exchange Agreement (a "Transaction"), the specific terms of which shall be contained in a
Confirmation (a "Confirmation") to be delivered on the date such Transaction is agreed upon by
the parties; and
WHEREAS, the NCPA's obligations under each Transaction will be a special,
limited obligation payable solely from amounts received from the Project Participants pursuant
to the Member Agreement and available for such purpose pursuant to the Indenture; and
WHEREAS, under the Member Agreement, each of the Project Participants shall
be entitled to its Project Entitlement Percentage of any payments made to NCPA under the
Exchange Agreement and shall be obligated to pay its Project Entitlement Percentage of any
payments required to be made by NCPA under the Exchange Agreement; and
WHEREAS, the Transferring Participants have determined to transfer their
respective rights, benefits and obligations under the Member Agreement with respect to the
Exchange Agreement to the Acquiring Participants on the terms and conditions herein contained'
and '
WHEREAS, each of the Acquiring Participants has agreed to acquire its
Transferred Percentage (as defined below) of the rights, benefits and obligations of the
Transferring Participants under the Member Agreement with respect to the Exchange Agreement
on the terms and conditions contained herein, including the obligation to make payments with
respect to such Transferred Percentages to the extent that the Transferring Participants' are
obligated to make payments under the Member Agreement with respect to such Transferred
Percentage; and
D\WHALENXHYDRO oAGRF_~Ek4EN-F. DOC
mm
WHEREAS, the transfer to the Acquiring Participants of the rights, benefits and
obligations of the Transferring Participants under the Member Agreement with respect to the
Exchange Agreement does not relieve the Transferring Participants of their respective
obligations under the Member Agreement or the Indenture;
NOW THEREFORE, the parties hereto do agree as follows:
1. Definitions. Unless otherwise defined herein, terms used herein which are
defined in the Preambles to this Agreement shall have the meanings set forth in such Preambles
and terms used herein which are def'med in the Member Agreement shall have the same
meanings herein as are given such terms in the Member Agreement. In addition, the following
terms shall, for all purposes of this Agreement, have the following meanings:
"Transferred Percentage" means, as of any date of determination and with
respect to each Acquiring Participant, such Acquiring Participant's participation in the rights,
benefits and obligations of the Transferring Participants under the Member Aereement with
respect to the Exchange Agreement identified and set forth opposite the name of s~ch Acquiring
Participant in Appendix A hereto, as such Appendix A shall be amended from time to time in
accordance with Section 8(a) hereof.
2. Purpose. The purpose of this Agreement is to provide for the transfer of
the Transferring Participants' rights, benefits and obligations under the Member Agreement with
respect to the Exchange Agreement to the Acquiring Participants and to establish the terms and
conditions of such transfer. The obligations of the Acquiring Participants hereunder are the
several obligations of each Acquiring Participant with each Acquiring Participant being entitled
to the benefits, and obligated with respect to payments, relating to its Transferred Percentage and
no Acquiring Participant shall be entitled to the benefits, or obligated for payments, relating to
the Transferred Percentage of any other Acquiring Participant.
3. Consent to Assignments.
The Acquiring Participants hereby consent to the pledge and assignment to
NCPA, to any Trustee for any Bonds, and to the counterparty under the Exchange Agreement of
all of the Transferring Participants' right, title and interest in, to and under this Agreement,
including all or any portion of the payments received or to be received hereunder from the
Acquiring Participants. Upon notice from a Transferring Participant or from NCPA or any
Trustee or the counterparty under the Exchange Agreement, in each case who is an assignee of
such rights, each Acquiring Participant shall make payments due by it hereunder directly to the
Trustee. Such pledge and assignment shall be made effective for such time as the assigning
Transferring Participant shall determine and provide.
4. Transfer of rights, benefits and obligations under the Member Agreemenl
with respect to the Exchange Agreement.
(a) Subject to the terms and conditions of this Agreement, each Transferring
Participant hereby sells, transfers, assigns and conveys to each of the Acquiring Participants, and
each of the Acquiring Participants hereby accepts, such Acquiring Participant's Transferred
D'WH.-XLEN%}t YIDRO -AGREEMENT. DOC
Percentage of the rights, benefits and obligations of the Transferring Participants under the
Member Agreement with respect to the Exchange Agreement.
(b) Each Transferring Participant shall direct NCPA to provide to each
Acquiring Participant such Acquiring Participant's Transferred Percentage of the rights, benefits
and obligations of the Transferring Participants under the Member Agreement with respect to the
Exchange Agreement, subject to the terms of this Agreement.
5. Rates and Charges. (a) Each Acquiring Participant shall pay for the
Transferred Percentage acquired by it pursuant to this Agreement, in accordance with the
provisions of Section 6 hereof, such amounts as the Transferring Participants are obligated to pay
with respect to such Transferred Percentage under the Member Agreement. In the event any
Transferring Participant pays any amount under the Member Agreement with respect to the
Transferred Percentage of any Acquiring Participant, the Acquiring Participant shall repay such
amounts to such Transferring Participant, together with interest thereon from the date of
payment, to the extent permitted by law, at an annual rate to be established by the Commission
of NCPA at the time of the adoption of the then most recent annual budget.
(b)_._~_~_~.. ~ u~ Participant shall make payments una~'lfis-~...qreement
~nT-the Acquiring Participant's Revenues and as an operating expense of the~.~c uirin
(."-su_~.P. articipant's Electric System. Nothing herein shall be construed as prohi'bit~ng ang
'--'"Acquiring Participant from using any other funds and revenues for purposes of satisfying any
provisions of this Agreement.
(c) The Acquiring Participants shall make payments under this Agreement
whether or not the Project is completed, operable, operating or retired and notwithstanding the
suspension, interruption, interference, reduction or curtailment of Project output or the capacity
and energy of the Project in whole or in part for any reason whatsoever. Such payments are not
subject to any reduction, whether by offset or otherwise, and are not conditioned upon
performance by NCPA or any Project Participant, including any Transferring Participant, under
this Agreement, the Member Agreement, the Exchange Agreement or any other agreement.
(d) Each Acquiring Participant covenants and agrees to establish and collect
fees and charges for electric capacity and energy furnished through facilities of the Acquiring
Participant's Electric System sufficient to provide Revenues to such Acquiring Participant
adequate to meet its obligations under this Agreement and to pay any and all other amounts
payable from or constituting a charge or lien upon any or all the Acquiring Participant's
Revenues.
(e) Each Acquiring Participant covenants and agrees that it shall, at all times,
operate the properties of its Electric System, and the business in connection therewith, in an
efficient manner and at reasonable cost and shall maintain its Electric System in good repair,
working order and condition.
6. Annual Budget and Billing Statement. The Transferring Participants and
the Acquiring Participants acknowledge that the Member Agreement provides that, prior to the
beginning of each NCPA fiscal year, the Commission of NCPA will adopt an annual budget for
D\WHALZ"N' HYDRO -AGREEMENT.DOC
such fiscal year for costs and expenses relating to the Project and shall promptly give notice to
each Project Participant of its projected share of such costs and expenses.
Each Transferring Participant will direct NCPA to give notice to each of the
Ac'quiring Participants of the projected share of such costs and expenses related to the
Transferred Percentage of such Acquiring Participant and to prepare a billing statement, based on
estimates, to be sent to each of the Acquiring Participants not later than the fifteenth (15th) day
of each calendar month showing the amount payable by the Acquiring Participant of costs
payable under Section 5(a) of this Agreement by the Acquiring Participant for the second
succeeding calendar month, and the amount of any credits or debits as a result of any appropriate
adjustments. Amounts shown on the billing statement are due and payable thirty (30) days after
the date of the billing statement. Any amount due and not paid by an Acquiring Participant
within thirty (30) days after the date of the billing statement shall bear interest from the due date
until paid, to the extent permitted by law, at an annual rate to be established by the Commission
of NCPA at the time of adoption of the then most recent annual budget. To the extent NCPA
uses any other method for billing Project Participants in connection with their respective project
entitlement shares with respect to amount due under the exchange agreement, the parties agree to
make any payments to NCPA required hereunder in accordance with such alternative method.
In the annual billing settlements after the end of each NCPA annual fiscal year
settlements, the Transferring Participants shall direct NCPA to submit to each of the Acquiring
Participants a statement of the aggregate monthly income or costs related to the Transferred
Percentage of such Acquiring Participant for such fiscal year. If the actual aggregate monthly
(costs) and other amounts payable for any fiscal year with respect to the Transferred Percentage
of an Acquiring Participant exceeds the billings to such Acquiring Participant with respect to its
Transferred Percentage, the deficiency shall be added to such Acquiring Participant's
immediately succeeding billing statement. If the actual aggregate monthly costs and any
Acquiring Participant's obligations with respect to its Transferred Percentage, and any
adjustment of or credit to an Acquiring Participant's obligations with respect to its Transferred
Percentage, are less than the billings to the Acquiring Participant, such excess shall be credited to
the Acquiring Participant's billing statement for such period (not to exceed the immediately
succeeding six months) and in such amounts as shall be determined by NCPA.
If an Acquiring Participant questions or disputes the correctness of any billing
statement by NCPA with respect to its Transferred Percentage, it shall pay the amount claimed
when due and shall within thirty (30) days of the receipt of such billing statement request an
explanation from NCPA. If the bill is determined to be incorrect, the Transferring Participants
shall direct NCPA to issue a corrected bill and refund any amount which may be due the
Acquiring Participant with respect to its Transferred Percentage, which refund shall bear interest
from the date NCPA received payment until the date of the refund, to the extent permitted by
law, at an annual rate to be established by the Commission of NCPA at the time of adoption of
the then most recent annual budget. If NCPA and an Acquiring Participant fail to agree on the
correctness of a bill with respect to its Transferred Percentage, within thirty (30) days after the
Acquiring Participant has requested an explanation, each Acquiring Participant agrees to, and the
Transferring Participants shall cause NCPA to, promptly submit the dispute to arbitration under
section 1280 et seq. of the Code of Civil Procedure.
D\WHALEN'qlYDRO -AGREEMENT.DOC
mm 5
7. Obligations in the Event of Default under this A~reement. (a) Upon
failure of an Acquiring Participant to make any payment in full when due under this A~reement,
NCPA or a Transferring Participant shall make written demand upon the Acquiring P~-ticipant,
and if said failure is not remedied within thirty (30) days from the date of such demand, such
failure shall constitute a default at the expiration of such period. Notice of such demand shall be
provided to NCPA and to each other Transferring Participant by the Transferring Participant
making such written demand.
(b) Upon the failure of an Acquiring Participant to make any payment, which
failure constitutes a default under this Agreement, the Transferring Participants shall cause
NCPA to sell and transfer for the Acquiring Participant's account all or a portion of the
Acquiring Participant's Transferred Percentage for all or a portion of the remainder of the term
of this Agreement, including, if so directed by the Transferring Participants, such a sale to any or
all of the Transferring Participants. The Transferring Participants shall not permit NCPA to sell
such rights to a defaulting Acquiring Participant's Transferred Percentage, directly or indirectly,
in any manner, and shall not take or permit to be taken any other action or actions, which would
result in any of the Bonds being treated as an obligation not described in Section 103(a) of the
Internal Revenue Code of 1986, as amended. Notwithstanding that all or any portion of an
Acquiring Participant's Transferred Percentage is so sold or transferred, the Acquiring
Participant shall remain liable to pay the full amount of its obligations under Section 5 hereof as
if such sale or transfer had not been made, except that such liability shall be discharged to the
extent that NCPA shall receive payment from the purchaser or transferee thereof.
(c) Upon the failure of an Acquiring Participant to make any payment which
failure constitutes a default under this Agreement and causes NCPA to be in default under the
Exchange Agreement or any Bond Resolution, the Transferring Participants may (in addition to
the remedy provided by subsection (b) of this Section 7) terminate the provisions of this
Agreement insofar as the same entitle the Acquiring Participant to its Transferred Percentage.
Irrespective of such termination, the obligations of the defaulting Acquiring Participant under
this Agreement shall continue in full force and effect.
(d) If NCPA fails to act in accordance with the direction of the Transferring
Participants, the Transferring Participants shall consent to the Acquiring Participants initiating
and maintaining a suit directly against NCPA to enforce this Agreement.
8. Obligations in Event of Default under the Member A~reement.
(a) To the extent that any Transferring Participant's Project Entitlement
Percentage is increased pursuant to Section 7(d) of the Member Agreement, each Acquiring
Participant's Transferred Percentage shall be increased by the amount of each increase in the
Transferring Participant's Project Entitlement Percentage multiplied by such Acquiring
Participant's Transferred Percentage; provided, however, that the sum of such increases for each
Acquiring Participant shall not exceed, without written consent of the Acquiring Participant, an
accumulated maximum of 25% of the aggregate amount of such Acquiring Participant's
Transferred Percentages transferred hereby, as initially set forth in Appendix A.
D',WHALEN~H YDRO -AGREEIV[ENT.DOC
mm 6
(b) The Member Agreement provides that if a Project Participant shall fail or
refuse to pay any amounts due to NCP& the fact that the other Project Participants have
increased their obligations to NCPA pursuant to Section 7 of the Member Agreement shall not
relieve the defaulting Project Participant of its liability under the Member Agreement and that
the nondefaulting Project Participants may recover from such defaulting Project Participant any
increased obligations resulting from such default. Each Transferring Participant hereby assigns
to each Acquiring Participant all of its right of recovery from a defaulting Project Participant
with respect to its Transferred Percentage to the extent of any increase in the Acquiring
Participant's obligations hereunder caused by the defaulting Project Participant.
(c) If the Transferring Participants' rights under this Agreement are assigned
to NCPA or a Trustee for any Bonds or a counterparty under the Exchange Agreement, NCPA,
or to the extent provided in the related Bond Resolution, such Trustee or such counterparty shall
have the right to initiate and maintain suit to enforce this Agreement.
9. Transfers, Sales and Assignments of Transferred Percentages. Each
Acquiring Participant has full and unfettered rights to make sales, transfers and exchanges
(collectively "assignments") of its Transferred Percentage except as expressly provided
otherwise in this Agreement.
Notwithstanding any other provision of this Agreement, no Acquiring Participant
shall assign, sell, transfer or exchange any portion of its Transferred Percentage, directly or
indirectly, in any manner, and shall not take or permit to be taken any other action or actions,
which would result in any of the Bonds being treated as an obligation not described in Section
103(a) of the Internal Revenue Code of 1986, as amended.
10. Sale of Electric System. No Acquiring Participant shall sell, transfer,
assign ownership of or otherwise dispose of all or substantially all of its Electric System to
another entity until it has first complied with the provisions of Section 10. A consolidation with
another govern~-~ntal entity or change in governmental form is not deemed a transfer of
ownership.
(1) Such sale, transfer, assignment or disposition shall be under
terms and conditions that provide assurance that the obligations of the Acquiring
Participant under this Agreement, and that the Transferring Participants'
obligations under the Member Agreement with respect to the Acquiring
Participant's Transferred Percentage will be promptly and adequately met. The
Transferring Participants or NCPA may require that sufficient moneys of the
Acquiring Participant to discharge such obligations be irrevocably set aside and
maintained, in a trust account, as a condition to the transfer of the Acquiring
Participant's Electric System, if no other adequate assurance is available.
(2) Each Acquiring Participant shall give ninety (90) days
advance written notice to the Transferring Participants and NCPA of any
proposed transfer pursuant to this Section 10. Appendix A to this Agreement
shall be amended as appropriate to reflect any transaction pursuant to this
Section 10.
D\WHALEN'HYDRO -AGREEMENT. DOC
11. Direction and Review. All directions to NCPA with respect to the
Ex.change Agreement and all meetings of NCPA in connection therewith shall be as provided in
Section 12 of the Member Agreement and for such purposes, the Transferring Participants agree
that each Acquiring Participant may vote on matters relating to the Exchange Agreement at such
meetings of the Project Participants pursuant to Section 12 of the Member A~reement with
respect to its Transferred Percentage as if it had the Project Entitlement Percentaee equal to its
Transferred Percentage of the Transferring Participants' Project Entitlement Percentage, and the
voting rights of the Transferring Participants sh~ll be reduced accordingly, unless the Project
Participants agree at such meeting that voting will be on a one member one vote basis, with a
majority vote of those present required for action, in which case the Acquiring Participants shall
be entitled to one vote; provided that the Transferring Participants shall not agree that voting
shall be on a one member one vote basis unless the Acquiring Participants direct the Transferring
Participants to do so.
12. Term. (a) This Agreement shall become effective for all purposes upon
the execution hereof by the Acquiring Participants and the Transferring Participants and delivery
to the other parties hereto by each Transferring Participant and Acquiring Participant of an
opinion of an attorney or firm of attorneys acting as counsel to such Transferring Participant or
Acquiring Participant in substantially the form attached hereto as Appendix B.
(b) The term of this Agreement shall continue until the termination of the
Exchange Agreement.
13. Termination and Amendments. This Agreement shall not be subject to
termination by any party under any circumstances, whether based upon the default of any other
party under this Agreement, the Exchange Agreement or any other instrument, or otherwise,
except as specifically provided herein.
14. Miscellaneous. The headings of the sections hereof are inserted for
convenience only and shall not be deemed a part of this Agreement.
If any one or more of the covenants or agreements provided in this Agreement to
be performed should be determined to be invalid or contrary to law, such covenant or agreement
shall be deemed and construed to be severable from the remaining covenants and agreements
herein contained and shall in no way affect the validity of the remaining pt;ovisions of this
Agreement.
This Agreement may be executed in several counterparts, all or any of which shall
be regarded for all purposes as one original and shall constitute and be but one and the same
instrument.
D\WHALi-X'xH YDRO -AGREEMENT.DOC
IN WITNESS WHEREOF each Transferring Participant and each Acquiring
Participant has executed this Agreement by its duly authorized officers, and caused its official
seal to be affixed hereto, all as of the date first above written.
CITY OF HEALDSBURG
CITY OF PALO ALTO
By By
And And
[SEAL]
CITY OF UKIAH
CITY OF ROSEVILLE
By By
And And
[SE a4
CITY OF SANTA CLARA
By
And
[SEAL]
D\WHALEN~a~IYDRO -AGREEMENT.DOC
APPENDIX A
TRANSFERRED PERCENTAGES
Each of the Acquiring Participants shall have the Transferred Percentaye of the
City of Healdsburg's 1.66% Project Entitlement Percentage and the City of Ukiah s 2.04%
Project Entitlement Percentage of the benefits, rights and obligations of such Transferring
Participants under the Member Agreement with respect to the Exchange Agreement.
Acquiring Participant
City of Palo Alto
City of Roseville
City of Santa Clara
Transferred
Percentage
33.3333%
33.3333%
33.3334%
100.0000%
Interest in
Exchange Agreement
1.2333333%
1.2333333%
1.2333334%
3.7000000%
D\WH-4J-EN~tI YDRO -AGREEMENT. DOC
A-1
APPENDIX B
Northern California Power Agency
180 Cirby Way
Roseville, California 95678
[Strike name of Participant on whose behalf opinion is being delivered]
City of Healdsburg
City of Palo .<o
City of Roseville
City of Santa Clara
City of Ukiah
Ladies and Gentlemen:
We serve as counsel to [Insert Name of Project Participant] (the "Participant") in
connection with the Agreement for Transfer of Rights and Obligations Under an Interest Rate
Exchange Agreement Relating to Hydroelectric Project Number One Revenue Bonds, dated as of
December 1, 1999 (the "Agreement"), among the Participant and certain other entities.
We have examined the proceedings of the Participant with respect to the
authorization, execution and delivery of the Agreement, and such other certificates, documents,
records and proceedings, as we have deemed necessary or appropriate for the purposes of this
opinion. Capitalized terms used herein and not otherwise def'med shall have the meanings given
such terms pursuant to the Agreement.
On the basis of the foregoing and examination of applicable California and federal
law, we are of the opinion that:
1. The Participant is a municipal corporation duly created, organized and
existing under the laws of the State of California.
2. The Participant has full legal right, power and authority to enter into the
Agreement and to carry out and consummate all transactions contemplated thereby, and the
Participant has complied with the provisions of applicable law in all matters relating to such
transactions.
3. The Agreement has been duly authorized, executed and delivered by the
Participant, is in full force and effect as to the Participant in accordance with its terms and,
assuming that the other parties to the Agreement have all the requisite power and authority, and
D\WHALENXHYDRO -AGREEivlEN'T.DOC
mm
B-1
have taken all necessary action, to execute and deliver such Agreement, constitutes the legal,
valid and binding obligation of the Participant enforceable in accordance with its terms.
4. Payments by the Participant under the Agreement will constitute an
operating expense of the Electric System of the Participant. Payments by the Participant under
the Agreement are to be made solely from the Revenues of the Participant's Electric System as
provided in Section 5(b) of the Agreement.
The opinion expressed in paragraph 3 above is qualified to the extent that the
enforceability of the Agreement may be limited by any applicable bankruptcy, insolvency, debt
adjustment, moratorium, reorganization, or other similar laws affecting creditors' rights
generally or as to the availability of any particular remedy.
This opinion is rendered only with respect to the laws of the State of California
and the United States of America, and is addressed only to the parties named above. No other
person is entitled to rely on this opinion, nor may you rely on it in connection with any
transactions other than those described herein.
Very truly yours,
D\~kHYDRO -AGKEEMEN~.D~
B-2
A/CPA
Commission Staff Report
ITEM NO.
lq
October 21, 1999
TO:
The NCPA Commission
SUBJECT:
Interest Rate Exchange Agreement - Hydroelectric and Geothermal Projects
This staff report was presented to the Commission at the September 1999 meeting. Action was
deferred so that a workshop could be held for the project participants. The workshop was held on
October 19, 1999.
In 1998 NCPA accomplished a very successful debt restructuring of its outstanding project debt.
The restructuring activities were primarily fixed rate refundings based on the low fixed interest rates
of that time. Interest rate movements in 1999 favor a type of transaction called synthetic variable
rate debt or more specifically a "fixed to floating" interest rate exchange agreement or a "swap."
This type of interest rate exchange agreement provides to project participants the interest rate
benefits (and risks) of variable rate debt. Currently NCPA has no variable rate debt on any project.
This staff report describes the nature of the transaction, the potential debt service savings
achievable, and the mechanism for completing this type of transaction. Additional information is
attached to this staff report on the features of a swap agreement. A general summary will be
provided here. Staff recommends that the Commission approve the attached resolutions, which
allows the General Manager to enter into swap transactions with swap providers that meet the
criteria established in the resolutions.
Usually the advantages of variable rate debt are achieved by financing projects with variable rate
debt or doing a variable rate refunding of outstanding fixed rate bonds. This has been done
periodically in the past when interest rates were favorable. However, this cannot be done today
because there are currently no refunding opportunities for NCPA's fixed rate bonds. In addition, if
there were, tax law uncertainties may still prevent NCPA from issuing variable rate debt.
Fortunately, there are swap agreements available through a variety of financial providers, which
will yield the benefits of variable rate debt to NCPA. The credit rating agencies typically feel it is
prudent for a public agency like NCPA to have up to 15 to 20 percent of its total outstanding debt in
variable rate debt or swaps. Therefore, the economic results presented below are based on assuming
that NCPA issues swap agreements on the hydroelectric and geothermal projects for 20 percent of
all outstanding project debt.
The attached resolution will enable NCPA staff to issue requests for proposals and enter into
agreements if certain target savings are achieved. Because of the nature of variable interest rates,
there is no guarantee that these savings will be realized every month. Savings depend on variable
interest rates, which are beyond our control. If variable rates move significantly upwards, swap
transactions can result in an increase in debt service costs from present levels. If this happens,
future actions can mitigate the impact.
Interest Rate Exchange Agreement - Hydro & Geo Projects
Page 2
In general, a swap is an agreement between parties to exchange interest rates paid on an agreed
upon notional amount. For example, NCPA would enter into an agreement with a counter party
(typical a bank or investment banker). Under this agreement the counter party will pay NCPA a
fixed interest rate on the agreed upon notional amount and NCPA agrees to pay the counter party a
variable rate on the same agreed upon amount. The difference in interest rates between the fixed
interest rate determined at the time the contract is signed and the variable interest rate, which is
determined by a published index on a monthly basis, determines the relative payments of the
parties.
The table below shows the annual estimated debt service savings for hydroelectric project and
geothermal project participants based on contract values equal to 20 percent of NCPA current
project outstanding debt.
20% of Project Debt Swapped to Floating --- Index Assumed to Average 3.57%
Notional Amount Assumed 10-Year Term Spread Annual Savings
Hydro $107,140,000 ] 153 bps { $ 1,600,000
_Geo $ 75,660,000 [ 153 bps t $ 1,100,000
Attached is some general background information on swaps, which will serve as an introduction.
The following actions are required to implement the swap agreement:
1. Commission approval of attached resolutions.
2. Finalize exchange agreement terms.
3. Review with credit rating agencies and adjust terms as necessary.
4. Determine individual member variable rate limitations. Determine "group" solutions and
implement.
5. Prepare and issue Request for Proposals.
6. Decision on proposals.
7. Swap execution by General Manager.
In past variable rate transactions, NCPA billed participants for debt service assuming a
conservatively high estimate of variable rates. If actual variable rates are lower than budgeted,
savings accrue for distribution at the time of settlements.
Currently some of NCPA project participants are entering into their own variable rate financial
instruments to benefit from today's interest rate environment. Because of that, certain participants
may have limited capacity for synthetic variable rate debt. Once the notional amount is set, each
participants share is determined by its current project participation percentage. Therefore, any one
participant who has limited capacity for additional variable rate debt will serve to determine the
limiting notional amount.
There are other options for dealing with individual participant limitations on variable rate exposure.
The simplest way is a layoff of a participant's share to another. There are even other options but
they become more complex and difficult to execute.
Interest Rate Exchange Agreement - Hydro'& Geo Projects
Page 3
,.
The.notional mount of the interest rate exchange agreements will be finalized after further
discussions with credit rating agencies and after consideration of individual project participant
requkements. The resolution sets the maximum amount of the notional amount; the actual amount
may be reduced. The terms and conditions of the agreement will be finalized, within the framework
established by the resolution, and reviewed by the Finance Committee prior to execution of the
agreement. For example, as a result of comments from the workshop, we are reviewing locking in a
variable rate for the first year of the exchange agreement. Finalizing the terms and conditions will
involve work by NCPA staff, our financial advisor - Tony Fisher, the Finance Committee and the
General Manager before signing the agreements.
Staff recommends this as a prudent action to further improve NCPA's competitive position. The
Finance Committee has also reviewed this and recommends approval. Credit rating agencies will
not view this unfavorably. Your competitors are taking similar actions.
Recommendation
Staffrecommends that the Commission approve the attached resolutions 99-13 and 99-14, which
will allow staff to issue a request for proposals and enter into a swap agreement if proposals meet
certain conditions defined ia the resolutions.
Attachments: 1. General information on swaps
2. Sample calculation of swap results
3. Resolutions
Respectfully submitted,
~ Manager
Prepared by:
JAMES W. WHALEN ~"5.' "'
Administrative Services
Business Unit Manger
JWW/mm
Attachments
Description:
Purpose:
Illustration:
INTEREST RATE SWAP CONTRACTS
An interest rate swap contract, or "swap," is an agreement between
two parties to exchange periodic payments, for an agreed pedod of
time, whic,fl are based upon interest rates. One party agrees to make
payments based upon an assumed prindpal, or 'notional," amount
times a variable rate index, and the other party (the "counter-party")
agrees tc make payments based upon the same notional amcunt
times a fixed rate of interest. A swap, by itself, does O.¢..t involve the
issuance of new debt. or the refunding of existing debt.
Governmental entities and businesses enter into swaps as a way of
managing their exposure to changes in interest rates. Swans allow a
pa,,'W tc either assume or reduce varia~cle interest ra~.e exposure
without refinanclng outstanding debt. or licuida.:inc existing
inves:me2~s.
F:xeC-.'.O-v=_. ;-~'ie '=-~.e . . -_
,,_ swa_- A =cvercmen.:=_i is=uer has !ccc-.'.erm fixed
in,eras: ra.'.e bonos outstanding, and wishes tc realize some dec:
= .... cnve~inc = ;cm..iCh ~'¢ :ha,'. deC, into = shcr':-~erm
vanacie ;r::eres: ra.'.e cc"c-,;- ' ' "" re!Iv a
· ' ~,.=.,~.n. Shcr':-term. var[at~e rs:es _:....e
lower tha~. long-term fixed rates. As an alternative :o a bcnc
the issuer could e~er in:c a fixed-.to-variable rate swap
instf:u:icn (t;.-.e 'ccu;.~=;.=:..; ), which tycicaily is an in,.,es:ment or
ccmmercla! 2a2k.
The issuer would make 2ayments tc the c.cunterpa,,'~y over the te,.,"m of
the swa:e'"" ~
.,,.,a. :ca va.';,ah_.ie rate index, tim, es a princ!,2al =_mount equal
to some ..czicn or all cf :he ..-'rinclpal amount of the outstanding bonds.
In exchange, the coun.:er.sa,..-y would make payments to the issuer
ecuat to a fixed rate, times the same principal amount. The periodic
payments are o,ffset, sc only the ne.'. amcunt is paid. The issuer would
aptly the payments from the counterpa,~m/ to pay interest on the
outs:ending bonos. The issuer, in effect, gains the advantages of
shc ' '~,-',.~-~_.,,, variah.,ie rate debt, but without refunding, the outstanding
bonds. -
xsc %
Fixed-to-Variable Swap
Swa~ =armed. ts '
~- -' '~";~'~-- ' ...................... Var. a~le Rate %~:>~r-
xed % . . _
.
Variable-to-fixed r~te swap. The ccunterparty typically is acting as'a
"middleman" or market-maker in connection with its swaps. GeneraIly,
therefore, the counterpart,,/ also will enter into a separate variable-to- "
fixed rate swap with another customer to offset the fixed-to-variable ' '
Benefits:
Risks:
swap with the governmental issuer.
Assume ~a: there is an insurance company with a significant amount
of shcrt-~erm variable rate debt outstanding, but a substantial long-
term fixed rate investment pcrtfotio. The insurance company c~n agree
to pay a fixed rate on a swap, because of the fixed rate it is earning on
its investment portfolio. In turn, the variable rate it receives under the
swap can be apDiied to pay the variable interest rate on the company's
outstanding short-term debt. The insurance company thus gains a
be~er match on its assets and liabilities through the use of a variable-
to-fixed rate swap, and without refunding its indebtedness or
liquidating any of its investments.
The counter.daffy will apply the variable rate payments it receives from
the .~cvemmental issuer, in effect, tc make the variable rate payments
, · =7?
to the insur=-nce comcany Simiiar!y, the ccu~.:er.-.~-,'-'..v ,,viii _.._ly the
fixed-rs.te payments it receives ,,~.m the insur=-nce comps-ny tc roCk"
the fixed r=_,:e 2avments ,'.o the .gcvemmen,ta! ssuer
-~eme, mr-:zhimc cf assets =_.md liatiii,.ie~. Gener=_ilv szeaKimc.
atlcws ac issuer to be:~er me-:ch its in;ere_=: income and
· · .
exce. ,se.,'es-actively,.. ce ~ts assets =-: ,d :,laciii;ies, =_nc thereby
itse',f from =~,~nces in interest ra.'.es. Sw~_cs cr-_r' =_lsd be entered
ccnnec'.;,c~ with exisdn_c assets, such as cc~s;rucdcr', funds, de~t
~eF./iC5 ~. ,4_ ' , --r~;,"~
;u~,~.-.- =_nd rese?.,e func_Ls rather t~an ~'~
_ . cuts,~-, ;..:, ..-. ce---.'. This
allows the issuer ~o enhance its cash flows, rather than reduce its de:t
ser¢ice costs.
Reduce ne,'. interest ex:er'se. S,,c~-~=,m variabJe Jr, rarest rates
.ceneraily are lower than long-.term fixed rates. Thus. governmental
issuers chec enter into fixed-,to-variable interest ra,".e swa~s as a
me~ns .cf recucln_c net interest costs with respect to outstanding fixed-
rate de~t.
Alte,.mzr.;:ve tc bond refundincs. The lC=~ amendments tc the Internal
Revenue Code imoosed sicnifica:t ' ;'-"
, _ hm,~=~ons on tax-exempt bond
refundings. In general, for example, bond issues c~n only be advance
refunded once In ce~ain circums,anc..s, a swao can allow a
governmental issuer to gain the financlal advantages of a refunding,
without actually unde~aking one.
Ease cf execution. Swaps can be executed quickly, and without
significant transaction costs. Governmental issuers thus can respond
to changing interest rate environments more quickly and with less
expense than if they were to refinance outstanding debL In addition,
unlike with variable rate debt, a swao does not require a letter of credit
or other liquidity facility from a bank, nor a remarketing or tender
agent, 'and does not involve exposure to bank credit risk.
Counter=arty credit risk. When executing a swap, a governmental
issuer assumes the credit risk of the ccunterpa,m/. If the counterparty
defaults and a replacement is not instituted, the swap will terminate
Basic Terms:
Approval
Process:
Documents
Required:
and NCPA rever:s tc its original dei:t Service schedule.
_Payment of 'termin. ation value." If the swap terminates eady due to.
amcng other things, a default 12y the governmental issuer, the issuer
may be obii_cated tc pay the current market value of the swap to the
counterparty, if any. If, however, the swap then has a current market
value to the issuer, the issuer may be entitled tc receive such a
payment.
Exccsure tc variable interest rates. A fixed-to-variable rate swap
expcses the issuer to increases in short-term interest rates. (This risk
can be mitigated any time by entering into a "reveme" variable-to-fixed
rate swap.)
Interest rate swaps include :he fcllcwing general terms'
Exchar'ce ¢: csvmer'ts. A swap .:rcvides that one ca,~'y makes
_ r-..., index, as .'.he index char.,''=~ from time
payments
-' --'- z=_~,/ . . · _ .-;';=~ fixed
to time. i ne ..,,;er. . mat<es 2avments us;~g = see_,,,--, rate.
Bcth -ayme,.. :s are ca!~'''=','','4,..,,,_~,.... ~'-=,~=..e. ~ ucon the same assum_d
princi.ca!, or '-c;icnai," amcunt. The payments are ne.-="' "-i'~inst each
other, ann
Prelect reia.'.s.Z. S'wa~ ._-'avments are made frcm a fiesic~:-.:ed source of
WI
funcs. For N3= ~ ..~ i, wculc be
, .~. "- c"" swa2 e~e:ed into res..cect
specific NCF--*. project A2y_net'_payments due under the swap would
be paid by crtc the Prelect Pa~icicants under the rel~_.'.ed Third
Agreement :_s =_. cost of or income with respect to the Project.
Term :f sw=_c. Swazs=*-, e entered into fcra desicnated "edcd of time,
usuall':, one :c te~ years.
Termir~aticn :armor-ts. A swap can terminate 'prior tc its expiration
date ucon t,he occurrence of an event cf default, or in certain other
limiteC circumstances. Swans with governmental issuers typically are
structured with "limited ~¥c-way" termination payments. That is, upon
earl,,., termination, the then-current market value, if any, cf the swap is
payabie to the party, who otherwise wculd be economically harmed by
the early terminaticn, unless that party is the defaulting party.
Swans would be subject tc approval by the Commissicn and by the
Proje~ Pa~iclpants in the same manner as bond financings and other"
Project-reiated m~,,=.s""'-* as provided under the resoective. 'Fnird Phase
Agreements.
Unlike a bond financing, which requires, among other things, a Trust
Indenture and Officlal Statement, a swap generally involves only the
swap contract itself, together with certain certificates and legal
opinions at closing. Swap contracts are fairly standardized in form.
~0o.
o ~~=
RESOLL~ON 99-13
RESOLUTION OF TIlE NORTTtE1LN CALIIOtLNIA POWER AGENCY
32PROV'LNG TIlE FOi:LM OF A~,N' Eh'Tgi:LEST 1L4.TE SWAP
AGREEMENT ANT) AUTIIORITENG TIlE ENTRY Eh'TO ONE OR
MOR.E EN'TEI:LEST I:L-kTE SWAP TI:LA_N'SACTIONS ANT) CERTAEN
ACTIONS REL-XTENG TIIERETO
W'HE~AS, the Norr~e."n Califorrfia Power Agency ("NCPA") is a public entity
duly organized and exisr'~ng pursuant to the Northern California Power Agency Joint Powers
Agreement, dated as of July 19, 1968, as amended and supplemented (the "A_m-eement") and the
provisions relating to the joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of
the Government Code of ~e State of California (~e "Act"); and
,N' '
WI--Z,KEAS.. CP.~ is aut?,ofized pursuant :o :he provisions of the Agreement and
the Ac: to acquire ,_.nd cons:rat:, or cause tc be acquired and constructed, and to operate or cause
to be operated, a project withir, the State of California for the generation or transmission of
electric energy (including a .a!--~.~, right in such a project) a.nd to sell the capacity and energy
of such project; to enter toro a~eeme.nts w;,th respect te any matters feinting to the acquisition,
constracrion and operation of r,:ch project ~d the sale of ca:noir': and energy of such project;
and to finance the acquisition, constmcson and opera:ion cf such pro.iota tkrough the issuance of
bonds, notes and other evidences of indebtedness under the Act; and to issue bonds to re.nd
such bonds, notes or otSer evidences of indebtedneSs; and
Wt~KEAS, NCPA and the cities of Alameda, Biggs, Gridley, Healdsburg, Lodi,
Lompoc, PaJo )die, Raseviile, Santa Clara, and Ukiah and the Plumas-Sierra Rural Electric
Cooperative (collectively, the "Project Partic:~pants") have entered into the Agreement for
Construction, Operation and Financing of the North Fork Stanislaus River Hydroelectric
Development Project, date~ as of September 1, 1982, as amended (the "Member A=re..ment ), to
provide for the constru~ion, operation, and financing of the Nor'da Fork Stanislaus R/ver
Hydroelectric Development Project (the" '
Project' ), the sale bv NCPA of capacity and energy of
the Project to the Project Participants, and the security for the bonds, notes and other evidences
of' indebtedness to be issued to finance the Project; and
V~'D_T1LEA$, pursuant to an Indent, are of Trust, dated as of March 1, 1985 (as
Indenture ), between NCPA and State Street Baal< and Trust.
amended and supplemented, the" ~ "
Company, N.A., as successor Trustee, NCPA has authcr',ze~ the issuance ofbonds (the "Bonds")
to finance the cost of acquisition and constr~ction of the Project or to refund any outstanding
Bonds; and
x,~,~'T~_IL~S, NCPA desires to authorize cen,_in officers of NCPA to enter into one
or more interest rate swap agreements with respect to the outmanding Bonds as authorized by
Sections 5922 and 5.3534 ortho California Government Code; and
VvSiEKEAS, the terms and conditions of each such interest rate s~vap shall be as
set forth in the ISDA Master Agreement, as amended and supplemented by the Schedule to the
Master Agreement, in the form submitted to this meeting (such ISDA Master Agreement, as so
I}OC..gl..A 1:319057.1
41009-14 LIe
amended and supplemented, as the same may be modified and completed in accordance with this
Resolution, being referred to as a "S~vap Ag'reement"); and
WS-~REAS, each such interest rate swap shall constitute a Transaction under the
Swap A_m'eement (a "Transaction"), the specific terms of which shall be contained in a
ConS. rmation (a "Confirmation") to be delivered on the date such Transaction is a__ov, eed upon by
the par'des; and
WIq]EREAS, the NCPA's obligations under each Transaction will be a special,
limited obligation payable solely from amounts received from the Project Participants pursuant
to the Member Agreement and available for such purpose pursuant to the Indenture: and
WI-IEREAS, the NCPA's obligations under each Trmxsacrion max' be secured by
se:urity arrangements desert, bed in a Credit Support Annex in the form submitted :o this meeting
(such Credit Support .atone, as :he same may be modified and completed in ac:.ardance with this
Resolution, being, =~=:~ ~,,'~'~-=~ to as a "Credit Su:por...-knnex") or by an [nsurancs pcticv:.
NOW, TI-."F~FOKE. BE IT KESOL¥'E_D by the Commission :f ~.he Ncr. hem
California Po~ver A~,encv, as follows:
Section I The t'crm of Swap Agreement, as submitted to ~.~.~,. meet,,n_= and
made a pan thereof as thoug!,, set fcnh in full herein, is hereby approved. The Chairman ef this
Commission (the "Chairman") and the General ,_X.[anager of NCPA (the "General Manager") and
such other officer of NCPA designated by the Chairman or the General Manager, each acting
singly, are hereby authorized to execute the Swap Agreement in connection with the Bonds in
substantially said form with such counterparty meeting the criteria described below as shall be
selected by the officer executing the Swap Agreement and with such changes, insertions and
deletions to such Swap A~eement as may be consistent with this Resolution and the
determinations made pursuant here~.c and as may be approved by the officer executing such
Swap Agreement, said execution being conclusive evidence of such approval; and the Secretary
or an .Assistant Secret-raZe of NCPA is hereby authorized te affix and attest the seal of NCPA
thereto.
The counterpmxy to the Swap Agreement shall be an entity O.e long-term,
unenhanced obligations of which are rated at least Aa3 by Moody's Investors Service, Inc
("Moody's") or A_-k- by Stand~d & Poor's Rating Services ("S&P") at the time of execution of
the Swap Agreement or the obligations of which under the Swap Agreement and the Credit~
Support Annex are unconditionally guaranteed by an entity the long-term, unenhanced
obligations of which are rated at least Aa3 by Moody's or A_-k- by S&P at the time of execution
of the Swap Agreement
Section 2. At any time that the then applicable adjustable rate to be paid by
NCPA under a Transaction is at least one hundred (100) basis points less than the fixed rate to be
received by NCPA under such Transaction, the Chairman and the General Manager, each acting
singly, are hereby authorized to enter into one or more Transactions in connection with the
Bonds and accept and execute the Confirmation describing related Transaction; provided,
however, that the following limitations shall be applicable to each Confirmation and Transaction:
(i) the term of the Transaction shall not exceed firleen (15) yegs, (ii)the aggregate notional
-2-
~1:319057.1
41009-14
amount of ali Trmusa~ions relating to the Bonds then in effe~ shall not exceed one hundred
seven million dollars ($I07,000,000), (iii)the rate payable by NCPA at any time under any
Transa~ion shall not exceed t~'enty percent (20%) per annum, (iv)the fixed rate to be received
by. NCPA under ~e Traasaction shall not be less than four percent (4%) per annum, and (v) all
payment obligations of NCPA under the Confirmation and the Transaction shall be special
obligations of NCPA payable solely from the pa)znents received from the Proje~ Participants
under the Member A~eement and available for such purpose pursuant to the Indenture.
Sec:ion S. The Commbsion hereby finds and determines that the Transactions
authorized hereby are designated to reduce the amount of interest cos~ to NCPA with respect to
the Bonds.
Se:zion 4. The form of Credit Support Annex, as submitted to this meeting
and made a par. :,hereof as though set fo~.5 in full here[n, is hereby approved. The Chahwnan and
the General Man:~,o' and such other officer ofNCPA desi_~nated by the Chairman or :he General
Manao,,r each ac:in~ sin_~tv, are hereby authorized to execute a Credit Su=oon .Annex in
substantially said form in connec:mn :va,, each Transaction with such cnange~, insertions and
de!orions as may be approved bv the cfficer ..... ' f
ex~.,tm_ such Credit Sup?om .-~nnex. said
execution being ccnclusN'e evidence cf such apg:oval. If a Credit Suppom .-U".nex is executed
and delivered pursuant te Sec:ion 5 of r.~is Resolution, the proper officers of NCPA are hereby
authorized and dice.areal to deliver secu~fies and re other:vise take all actions re perform the
NCPA obli?_.:icns under such Credit SuF~cm .-~,nex.
Sec.:ion 5. The secur:,.n_= of the NCPA's obli~atiens under each Transaction
either through the use of an insur-~nce policy or the execution and delivery of a Credit Support
Annex is hereby authorized and approved. The Chairman and the General Manager and such
other officer of NCPA designated by the Chairman or the General Manager, each acting singly,
are hereby au.'.lerized to dete.,'x'nine who:her to utilize an insurance po'ticy or a Credit Support
Annex to secure the NCPA's obiiga:iens under each Transaction, which determination shall be
made on the basis of which securit:-arr~gement is in the best interests of the NCPA and which
determination skalI be conclusively evidenced by the execution and delivery of a Credit Support
,Annex or ti,,e deliveu of an insurance policy, as applicable.
Sec:ion 6. The Chaiman, the Vice Chairman of the Commission, the General
Nlanager, each Business Unit Manager, the Treasurer-Controller, the Secretary., each Assistant
Sec:oreO', tko Authorized NCPA Representatives, and any other proper officer of NCPA are
hereby authorized and directed to execute such ether agreements, documents and certificates, and
to take such actions as may be necessarf or convenient, to carry out NCPA's obligations under
and to effect the purposes of, each Swap Agreement, Credit Support ,~nnex, Transaction,
ConSrmation, this Resolution and the tree. sac:ions herein authorized.
Sec:ion 7. All ac:ions heretofore taken by any committee of the Commission,
or any officer, representative or agent of NCP& in connection with the execution and delivery of
the Transactions and the other ac.ions contemplated by this Resolution is hereby ratified,
approved and confn'med.
Section 8. This Resolution shall take effect immediately upon its adoption.
-3-
i:)OC..~L~ :319057. I
41009-14 E..TC
PASSED AaN'D ADOPTED this
vote on roll call:
d~y of
,1999 by the following
VOTE
ABSENT
Alameda.
Biggs
Gddley
Healdsburg
Lodi
Lompoc
Paio A.lto
Port of O~k!and
Reddin~
Roseville
Santa Clara
Truckee Dormer
Turlock
Ukiah
Plumas-Sierra
--. RESOLUTION 99-14
RESOLUTION OF T~E NORTffER.N' CALIFORNIA POWER AGENCY
A.PPROVE"~'G THE FOR3I OF A.N EN'TEREST RATE S%YAP
AGREEM'ENT AND AUTHO1LIZL-N'G THE ENTRY EN'TO O.hE OR
MORE L-NTEREST RATE SWA.P TI:L-kNSACTIONS A_ND CERTALN
ACTIONS RELATLNG THERETO
WIKEREAS, the Northe.,-a California Power .Agency ("NCPA") is a public entity
duly org~ized and existing pursuant to the Norzhern California Power Agency Joint Powers
A_m'eement, dated as of July 19, 1968, as amended and supplemented (the "A=o-reement") and the
provisions relating to the joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of
the Gore.inmont Code of ~.e Stare of California (the "Ac:"); and
WS{Ei~AS, NCPA is authorized pursuant ?.o the provisions of the Agreement and
the Act to acquire and cansn-uc:, or cause to be acquired and constvxc:ed, and to operate or cause
·
, W...4h, =...,e, ~Lon Or
to be o~erated, a prQec: ';'~ ~ the Stare of Caliiomia for the *~- ' ; transmission of
e!eczric energy (~c!ud~ng a sapss{r: r~hz ~n such a projecz) ~d tc sell the capacity and energy
of such projecz; [o enter ~zc a~eements w~h r~spec~ ~o ~y ma~er~ relating to ~he asqu~sizicn,
concerto:ion and operazion ef such pr.zjezz and ~he sale of caFas[r/ and energy of ~sh prcjecz%
~d [o ~nance ~he acquisition, cons:r~c:~cn and operation of such projesz [~ougk :he issuance of
bonds, notes ~d other evidences cf :-~' '
m~.~edness under the Act; an~ to issue bonds to re,nd
such bonds, notes or crier evidences ~f ~ndebredness; and
WI~REAS, NCPA and the cities of Alameda, Biggs. Gridley, Healdsburg, Lodi,
Lompoc, Palo Alto, Koseville, Santa Clara and Uldah and the PIumas-Sierra Rural Electric
Cooperative (collectively, the "Project Participants") have entered into the Agreement for
Construction, Operation and Financing of Geothermal Generating Project Number 3, dared as of
July 1, 1983, as amended, to provide for the construction, operation and financing of the
Geothermal Generatin*_ Project No. 3 (the" '
_ Project ), the sale by NCPA of capacity and energy
of the Project to the Project Participants, and the payment of and security for the bonds, notes
and other evidences of indebtedness to be issued to finance and refinance the Project; and
WHaEtLEAS, pursuant to an Indenture of Trust, dated as of November 1, 1983 (as
amended and supplemented, the "Indenture"), betw~'een NCPA and State Street Bank and Trust
Company, N.A., as successor Trustee, NCPA has authorized the issuance ofbonds (the "Bonds")
to finance the cost of acquisition and construction of' the Project or to refund any outstanding . .:
Bonds; and ....... : .................... ...:_
..
WI-~RAS, NCPA desires to authorize cenain officers of NcPA to enter into one ....
or more interest rate swap agreements with respect to the outstanding Bonds as authorized by ..... .
Sections 5922 and 53534 of the California Government Code; and ,.- ....
WHEREAS, the terms and conditions of each such interest rate swap shall be as
set forth in the ISDA Master Agreement, as amended and supplemented by the Schedule to the
Master Agreement, in the form submitted to this meeting (such ISDA Master Agreement, as so
DOCSLA 1:31905 ~. 1
41009-14-F, JC
amended and supplemented, as the same may be modified and completed in accordance with this
Resolution, being referred to as a "Swap A~eement"); and
WHEREAS, each such interest rate swap shall coustitute a Trausaction under the
Swap Agreement (a "Transa~ion"), the specific terms of which shall be contained in a
Confirmation (a "Confu'maticn") to be delivered on the date such Transaction is a_m:eed upon by
the parries; and
WHEREAS, the NCPA's obligations under each Transaction will be a special,
limited obligation payable solely from amounts received from the Project Par'3cipants pursuant
to the Member A~eement and available for such purpose pursuant to the Indenture; and
W~KEAS, the NCPA's obligations under each Transaction max' be secured by
security arrangements described in a Credit Support .-~mnex in the form submined ro this meeting
(such Credit Support Annex, as the same may be modified and completed in accordance with this
Resolution, be;,ng ret%rred to as a "Credit Support Annex") or by an insurance policy;
NOW, TI-U~REFOKE, BE IT RESOLX,,~D bv the Commission of the Northern
Cal/fcrnia Power Agency, as follows:
Section 1 The form of Swap Agreement, as submit:ed to tins me.,n_ aad
made a part thereof as uhough set forth in ~II herein, is hereby approved. The Chairman of this
Commission (the "Chairman") mud the General X[anager of NCPA (the "General Manager") and
such other officer of NCPA desi=nat~d by the Chairman or the General Mana_~er, each actin~
singly, are hereby authorized to execute the Swap Agreement in connection with the Bonds in
substantially said form with such counterpany meeting the criteria described below as shall be
selected by the officer executing the Sxvap Agreement and with such changes, insertions and
deletions to such Swap Agreement as may be consistent with this Resolution and the
dete,'-minations made pursuant hereto and as may be approved by the officer executing such
Swap A=m-eement, said execution being conclusive evidence of such approval; and the Secretary
or an Assistant Secretary.' of NCPA is hereby authorized to affix and attest the seal of NCPA
thereto.
The counterpa.wy to the Swap Agreement shall be an entity the long-tot-m,
unenhanced obligations of which are rated at least Aa2 by Moody's Investors Service, Inc
("Moody's") or AA- by Standard & Poor's Rating Se~'ices ("S&P") at the time of execution of
the Swap Agreement or the obligations of which under the Swap Agreement and the Credit
Support Annex are guaranteed by an entity the long-te,,-n, unenhanced obligations of which are~..:
rated at least Aa2 by Moody' s or AA- by S&P at the time of execution of the Swap Agreement
Section 2. At any time that the then a~plicable adjustabte rate to be paid by.
NCPA under a Transaction is at least one hundred (100) basis points less than the fixed rate to be
received by NCPA under such Transaction, the Chairman and the General Manager, each acting
singly, are hereby authorized to enter into one or more Transactions in coanection with the
Bonds and accept and execute the Conhrmation describing related Transaction; provided,
however, that the following limitations shall be applicable to each Confirmation and Transaction:
(i) the term of the Transaction shall end on or before July 1, 2010, (ii)the aggregate notional
DOCSI.A1:3190511. I
4~00O-t4.-EJC -2-
amount of all Transactions relating to the Bonds then in effect shall not exceed seventy-five
million dollars ($75,000,000), (~ii) the rate payable by NCPA at any time under any Transaction
shall not exceed t~venty percent (20°,~) per annum, (iv) the fixed rate to be received by NCPA.
under the Transaction shall not be less than four percent (4%) per annum, and (v) ali payment
obligations of NCPA under the Confirmation and the Transaction shall be spec;,al obligations of
NCPA payable solely from the payments received from the Project Participants under the
Member A~eement and available for such purpose pursuant to the Indenture.
Section 3. The Commission hereby finds and determines that the Transactions
authorized hereby are designated to reduce the amount of interest cost to NCPA with respect to
the Bonds.
Section 4. The form of Credit Support Annex, as submitted to this meeting
and made a parr thereof as though set forth in ~11 herein, is hereby approved. The Chairman and
the General Manager and such other officer of NCPA designated by the Chairman or the General
Manager, each ac:in_~ sin*~v are hereby authorized to execute a Credit Support .~nex in
substantially said form in connection w'irh each Transaction with such changes, insertions and
deletions as may be a?proved by the officer executing such Credit Support .-knnex. said
execution being conclusive evidence of such approval, k~ a Credit Support .~nnex is executed
and delivered pursuant tc Section 5 of this Resolution. the proper officers of NCPA are hereby
author, zed and directed to deliver se:ur(ties :,-nd re otke.~vise take al! actions te pe~er.-n the
NCPA oblig.~tions under such Credit Supper: Annex.
Section 5. The se,arin_~ of the NCPA's obli?tions under each Transaction
either through the use of an insurance policy or the execution and delivers' of a Credit Support
Annex is hereby authorized and approved. The Chairman and the General Manager and such
other officer of NCPA designated by the Chairman er the General Manager, each acting singly,
are hereby authorized to determine whether to utilize an insurance policy or a Credit Support
.~aanex to secure the NCPA's obligations under each Transaction, which determination shall be
made on the basis of which security arrangement is in .'.he best interests of the NCPA and which
determination shall be conclusively evidenced by the execution and delivery of a Credit Support
.~anex or the deliveu of an insurance policy, as applicable.
Section 6. The Chairman, the Vice Ch;-irman of the Commission, the General
Manager, each Business Unit Manager, the Treasurer-Controller, the Secretary, each Assistant
Secretary, the Authorized NCPA Representatives, and any other proper officer of NCPA are
hereby authorized and directed to execute such other agreements, documents and certificates, and
to take such actions as may be necessary or convenient, to carry.' out NCPA's obligations under
and to effect the purposes of, each Swap Agreement, Credit Support Annex, Transaction,
Confirmation, this R~solution and the tra.nsactions herein authorized.
Section 7. All actions heretofore taken by any commi~ee of the Commission,
or any officer, representative or agent of NCPA, in connection with the execution and delivery of
the Transactions and the other actions contemplated by this Resolution is hereby ratified,
approved and confirmed.
Section 8. This Resolution shall take effect immediately upon its adoption.
DOCSLAI :J 1905~1.1
410O9- t 4- F..JC -3 -
PASSED AND ADOPTED this
vote on roll call:
day of
1999 by the following
VOTE
ABSTAIN
ABSENT
Alameda
Biggs
Gridley
Healdsburg
Lodi
Lompoc
Pale )alto
Port of Oakland
Kedding
Koseville
Santa Clara
Truckee Donner
Turtock
LLkiah
Plumas-Sierra
ITEM NO. 8d
DATE: April 5, 2000
AGENDA SUMMARY REPORT
SUBJECT: APPROVAL OF LEASE WITH ASCOT AVIATION FOR 138 SQUARE FEET OF
OFFICE SPACE AT THE UKIAH REGIONAL AIRPORT
Over the past several weeks staff has worked with Mr. Rogers McKinnon and other
representatives of ASCOT Aviation Inc., a Redding based air charter company, and negotiated
the attached lease terms and conditions. ASCOT Aviation is preparing to commence a six-
month "trial" of scheduled passenger flight service beginning in the month of April and wishes
to enter into a Lease with the City for office and operations space.
The site identified by both staff and ASCOT Aviation, which would most appropriately serve its
needs, is an existing office located in the Flight Service Station. Because ASCOT Aviation's
limited operations are classified by the Federal Aviation Administration (FAA) as a Federal
Aviation Regulation (FAR), Part 135 "Air Taxi," and not a "scheduled air charter," their terminal
space and security needs are greatly reduced.
Once the ASCOT Aviation is in operation, the Airport may be eligible to apply for FAA funds for
the development of a new terminal facility, which could then house a permanent operations
center for passenger, pilot, and other Airport services.
(Continued on Page 2)
RECOMMENDED ACTION: Approve Lease with ASCOT Aviation for 138 square feet of office
space at the Ukiah Regional Airport and authorize City Manager to execute agreements.
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Determine Lease requires revision and approve as revised.
2. Determine approval is inappropriate and remand to staff with direction
Citizen Advised:
Requested by:
Prepared by:
Coordinated with:
Attachments:
ASCOT Aviation, Inc.
ASCOT Aviation, Inc.
Michael Flad, Assistant City Manag~
Candace Horsley, City Manager
David Rapport, City Attorney
Don Bua, Airport Manager
Proposed Lease
Cand~'Ce Horsley, C~'ty'l~anager
As proposed, ASCOT Aviation will fly a 9-passenger Cessna 208 Grand Caravan aircraft, similar
to the Pilatus PC-12 that was proposed by Community Air. The Caravan is an extremely safe,
reliable, and quiet aircraft. For the passenger, the aircraft is also very comfortable and provides
a smooth ride. This aircraft has also been used for freight deliveries in Ukiah in the past and
could potentially provide that service on a regular basis in the future.
Ukiah Regional Airport standard office lease rate is $.72 per square foot per month or roughly
$100 per month for the 138 square feet requested by ASCOT Aviation. Staff has negotiated a
rate of approximately $1.15 per square foot per month or approximately $158 per month to be
paid in the form of travel vouchers. As proposed, the City of Ukiah will receive six (6) space
available travel vouchers for City related business use only. In an effort to comply with FAA
facility and ground leasing requirements and maintain an equitable distribution of revenues, any
City departments using the travel vouchers will then reimburse the Airport fund. Staff feels that
given the number of current business related trips to both Sacramento and the San Francisco
area, the voucher will be used fairly quickly. Paragraph 3. RENT of the attached proposed lease
agreement contains ASCOT Aviation's lease terms with the Ukiah Regional Airport.
Because ASCOT will land at the General Aviation Terminal adjacent to the commercial airlines
in Sacramento, passengers will be required to take a shuttle to the main terminal if they have
connecting flights. Passengers flying to San Carlos and Redding will also arrive at General
Aviation Terminals. While this represents a slight inconvenience to passengers (shuffle rides
to commercial terminals) it eliminates the need for the extensive security measures, previously
required under the Community Air's proposed service model. Since all passengers will be
required to check their bags in Sacramento or San Francisco, many of the FAR Part 107/108
security sections no longer apply. This means no x-ray equipment, no additional security
personnel, etc.
Attached is a draft copy of ASCOT Aviation's latest proposed schedule. As proposed, the initial
service leaves Ukiah in the early morning for Sacramento and returns in the early evening on
Tuesdays and Thursdays. They are also planning round-trips to San Carlos in the mid-morning
and afternoon on Tuesdays and Thursdays. Lastly, they have a one-way from Sacramento to
Ukiah on Monday and Friday. Passengers can also travel from Ukiah to Redding in the early
evening on Monday, Tuesday, Thursday and Friday, with a return trip (Redding to Ukiah) at
several times on Tuesday and Thursday. In summary, and with exceptions, ASCOT Aviation
is basically offering round-trip travel from Ukiah to Redding, Sacramento, and South San
Francisco twice a day on Tuesdays and Thursdays. While the schedule is subject to change
based upon customer demand, this initial schedule outlines ASCOT Aviation's intentions.
As the City Council discussed during the lease negotiations with Community Air last year, the
type of service proposed represents an unusual opportunity, for an airport the size of Ukiah's,
to bring to the community not only a potential employer but a transportation service of significant
economic value. The development of regular flight service will greatly assist with business
development and tourism which will benefit the entire region and the Airport will be eligible for
increased assistance from the FAA. Staff believes the long term public benefits to the
community are substantial and more than offset the limited assistance provided in the Lease and
recommends approval and authorization for the City Manager to execute the Lease Agreement.
Mar-13-O0 03:55P ASCOT AVIATION INC 530 226 8426 P.02
ASCOT AVIATION INC.
Phone: (530) 226-0717
Mobile: (530) 941-4712
Pager: (530) 225-1860
ascot · compuserve, corn
3770 Right Ave. · Reddlng Municipal Airporf · Radding, CA 96002
REDD iNG I SACRAIqENTO I $.A.N C.A. RL~OS I UIq_AH I REN~_
FI./GHT SCHEDULE:
0645
O645
1300 (1:00 PM)
1300 (:1.:00 PM)
1615 (4:1S PM)
1730 (5:30 PM)
2900 (7:00 PM)
1900 (7:00 PM)
RDD - UKZ - SHF
RDD - SHF
RDD - UICZ - SqL
RDD - SHF- SqL
RDD - UIC[ - SqL
RDD - SHF
SMF - UKI - RDD
RDD- RNO
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T-TH
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SUN
RETURN CHARTER FLIGHTS ARE USUALLY AVAZLABLE FOR BOOI(ING
CA I.I. (530) 224F- 07.~ 7 FOR RE$£R IFA TZOIV$
RDD-RNO
RDD-RNO
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$ 99
$ 49
$ 79
$199
$149
$250 ROUND TRIP
$198 ROUND TR.TP
$ 98 ROUND TRZP
$:1.58 ROUND TR.TP
$398 ROUND TR.TP
$298 ROUND TRIP
DAY ADVANCE PURCHA$?
i·
LEASE AGREEMENT
This Lease, made this ~ day of ,2000, by and between the City of Ukiah, State
of California, acting by and through its City Council, hereinafter referred to as "Lessor", and ASCOT
Aviation Inc., a for-profit corporation organized and existing under and in compliance w/th the laws
of the State of California and its officers, hereinafter referred to as "Lessee."
RECITALS:
1. Lessor has the authority contained in Government Code Section 37380 and 37395 and
does determine that the use of certain property owned by the Lessor is not required for its use at this
time and is available for Lease, and
2. The use of said property by the Lessee would be and is beneficial for the citizens of the
City of Ukiah.
1. LEASE.
LEASE AGREEMENT
The parties hereto agree that on the terms and conditions hereinafter expressed, Lessor does
hereby let to Lessee and Lessee does hereby hire from Lessor a portion of that certain parcel of
property commonly referred to as "Ukiah Regional Airport", 'consisting of 138 square feet of
exclusive use area, and a "Ramp Area" between the Flight Service Building and the taxi-way, more
specifically described on the attached "Exhibit A", together with a right of access thereto.
(Collectively, "the Leased Premise.")
2. TERM.
The term of this Lease is for a period of six (6) months commencing on the date set forth
above.
3. RENT.
As rent for the leased premises, Lessee shall pay to Lessor the sum of $100 per month to be
paid by providing the City with six (6) "roundtrips" on scheduled flights when space is available.
-1-
The City may use these roundtrips at anytime during the six month term of the lease, provided space
is available.
4. USE AND IMPROVEMENTS.
4.1. Lessee shall use the premises exclusively as offices, passenger terminal,
baggage processing area and other uses incident to a scheduled airplane service for passengers and
cargo.
4.1.1 Lessee specifically represents that the purpose of this lease is to operate a
scheduled air flight service.
4.1.2 Lessee further represents that Lessee agrees to provide regularly scheduled
flight service to and from Ukiah, depending upon reservations..
4.1.3 Lessee shall file with the Lessor a description of its flight schedule for flights
to and from Ukiah ("flight Schedule"), and any changes in its flight schedule prior to or
within 10 days after the effective date of the changes. Lessor shall have the right to terminate
this lease, if lessee terminates flight service to Ukiah.
4.2 At all times during the term of this Lease and at Lessee's sole cost, Lessee shall
keep the Premises, excluding the ramp area, but including the plumbing and window glazing, in
good conditions and repair, ordinary wear and tear and damage to the Premises by fire, earthquake,
or act of God or the elements are excepted. Lessee waives all rights to make repairs at the expense
of lessor or instead to vacate the Premises, and lessee further waives the provisions of Civil Code
§§ 1941 and 1942 with respect to Lessor's obligations under this Lease. At the end of the term of
this Lease, Lessee shall surrender to Lessor the Premises and all Alterations that are to remain in the
Premises in the same condition as when received; ordinary wear and tear and damage by fire,
earthquake, or act of God or the elements are excepted. Lessor has no obligation and has made no
-2-
promise to alter, remodel, improve, repair decorate, or paint the Premises or any part thereof except
as specifically set forth in this Lease. Lessor has made no representations respecting the condition
of the Premises or the Building, except as specifically set forth in this Lease.
4.3. Lessee shall not make any changes to the leased premises without the prior
approval of Lessor. Lessee shall acquire the necessary and required permits from the appropriate
regulating body for any future improvements proposed under this lease.
4.4. Lessee shall only use or permit the leased premises to be used in full compliance
with all applicable City, state or federal rules, regulations, statutes or ordinances.
4.5. Lessee shall not do or permit to be done on the Premises, nor bring or keep or
permit to be brought or kept in the Premise, anything (a) which is prohibited by or in conflict with
any law, ordinance or governmental rule, or (b) which is prohibited by the standard form of fire
insurance policy or, (c) which will increase the existing rate of or affect fire or other insurance on
the Building or its contents or cause a cancellation of any insurance policy covering the Building or
any part of it or its contents. Lessee shall not use or store in the Premises any hazardous or toxic
substances, with the sole exception of reasonably necessary substances that are kept in reasonably
necessary quantities for normal office operations, provided that their use and storage are in
accordance with applicable laws. Lessee shall not do or permit anything to be done on the Premises
that will obstruct or interfere with the rights of other tenants of the Building or injure or annoy them,
or use or allow the Premises to be used for any unlawful purposes, nor shall lessee cause, maintain,
or permit any nuisance or waste on or about the Premises.
4.6. Lessee shall pay its proportionate share of the cost for all utilities furnished to
the leased premises, and the full amount of any possessory interest tax imposed on Lessee's
leasehold interest in the leased premises. Lessee shall pay all telephone, cable television or other
communication utility fees or any other utilities furnished solely to the leased premises.
-3-
Lessee shall pay for the cost of furnishing central heating and air conditioning,
electricity, water and sewer service to the leased premises. That cost will be computed by using a
fraction, the denominator of which is the total square footage of the building and the numerator of
which is the square footage of the leased premises. That same fraction will be used to compute the
Lessee's share of the cost of providing water and sewer service to the leased premises. The total cost
of furnishing central heat and air conditioning, electricity, water and sewer service to the building
will be multiplied by that fraction to compute the Lessee's proportionate share of the cost.
Lessee and the Federal Aviation Administration ("FAA") shall determine between them who
will apply for different utility services. Whoever has the account will be entitled to reimbursement
from the other party within five days after presenting a bill for the monthly service.
4.7. Lessor agrees to waive any Landing, Passenger Facility, or Short Term Parking
Fees related to Lessee's operations during the term of this lease.
5. ASSIGNMENT.
Lessee shall not, without the prior written consent of Lessor, assign or hypothecate this Lease
or any interest in this Lease, sublet the Premises or any part 6f them, or license the use of the
Premises by any party other than Lessee. Neither this Lease nor any interest in this Lease shall be
assignable without he consent of Lessor. Any of the previous acts without consent shall be void and
shall, at the option of Lessor, constitute a noncurable default under this lease.
6. INDEMNIFICATION AND INSURANCE.
6.1: Lessor shall not be liable for and is free from the cost of any damages for
personal injury or property' damage resulting from the use made by Lessee of the demised premises,
any defective condition or faulty construction of the demised premises existing at the time of letting
or arising thereafter and Lessee covenants and agrees to indemnify and save harmless said Lessor
and its officers, agents and employees from and against any and all liability, loss, cost, or other
-4-
obligation, including reasonable attorney's fee, on account of or arising out of any such injuries or
losses however occurring.
6.2. Lessee covenants and agrees during the life of this Lease at Lessee's sole
expense to comply with the requirements of Exhibit B, Insurance Requirements for Lessees (No
Auto Risks), attached hereto and incorporated herein by reference.
7. DEFAULT AND TERMINATION.
7.1. Events of Default. The following events shall constitute events of default
under this Lease (each an "Event of Default"):
(a) A default by Lessee in the payment when due of any rent or other sum payable
under this Lease and the continuation of this default for three (3) or more days m°ter notice of default
from Lessor;
(b) A default by Lessee in the performance of any of the terms, covenants,
agreements, or conditions in this Lease, other than a default by Lessee in the payment when due of
any rent or other sum payable under this Lease, and the continuation of the default beyond ten (10)
days after notice by Lessor or, if the default is curable and wouldYequire more than ten (10) days to
remedy, beyond the time reasonably necessary for cure;
(c) The bankruptcy or insolvency of Lessee, a transfer by Lessee in fraud of creditors,
an assignment by Lessee for the benefit of creditors, or the commencement of proceedings of any
kind by or against Lessee under the Federal Bankruptcy Act or under any other insolvency,
bankruptcy, or reorganization;
(d) The appointment of a receiver for a substantial part ofLessee's assets;
(e) The abandonment of the Premises; and
(f) The levy upon this Lease or any estate of Lessee under this Lease by attachment
or execution and the failure to have the attachment or execution vacated within thirty (30) days.
-5-
7.2 Termination upon Default. On occurrence of any Event of Default by lessee, Lessor
may, in addition to any other rights and remedies given here or by law, terminate this Lease and
exercise remedies relating to it without further notice or demand in accordance with the following
provisions:
(a) So long as the Event of Default remains uncured, Lessor shall have the right to
give notice of termination to Lessee, and on the date specified in this notice, this Lease shall
terminate.
(b) If this Lease is terminated, Lessor may, by judicial process, reenter the Premises,
remove all persons and property, and repossess and enjoy the Premises, all without prejudice to other
remedies that Lessor may have because ofLessee's default or the termination.
(c) If this Lease is terminated, Lessor shall have all of the fights and remedies of a
landlord provided by Civil Code § 1951.2, in addition to any other rights and remedies Lessor may
have. The damages which lessor may recover shall include, without limitation, (I) the worth at the
time of award of the unpaid rent which had been earned at the time of termination; (ii) the worth at
the time of the award of the amount by which the unpaid rent which would have been earned after
termination until the time of the award exceeds the amount of the ~ental loss that Lessee proves could
have been reasonably avoided; (iii) the worth at the time of award computed by discounting the
amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus
one percent (1%) of the amount by which the unpaid rent for the balance of the term after the time
of award exceeds the amount of rental loss that Lessee proves could be reasonably avoided; (iv) all
reasonable costs incurred by Lessor in restoring the Premises to good order and condition to relet the
Premises; and (v) all reasonable costs, including without limitation, any brokerage commission
incurred by lessor in reletting the Premises.
7.3 Continuation after Default.
Even though Lessee has breached this lease and abandoned the Premises, this Lease shall
continue in effect for so long as Lessor does not terminate Lessee's right to possession, and Lessor
may enforce all rights and remedies under this Lease, including the right to recover the rental as it
becomes due under this Lease. Acts of maintenance or preservation, efforts to relet the Premises,
or the appointment of a receiver upon initiative of Lessor to protect Lessor's interest under this
Lease shall not constitute a termination of Lessee's right to possession.
7.4 Other Relief. The remedies provided in this Lease are in addition to any other
remedies available to Lessor at law, by statue, or otherwise.
7.5 Right of Lessor to Cure Defaults. Agreements and provisions to be performed by
Lessee under this Lease shall be at Lessee's sole cost and without abatement of rental, except as
specifically provided in this Lease. If Lessee (a) fails to pay any sum of money, other than rental,
required under this Lease, or (b) fails to perform any other act under this Lease, and this failure
continues for ten (10) days after notice of the failure by Lessor, or a longer period as may be allowed
under this Lease, Lessor may, without waiving or releasing Lessee from any obligations of Lessee,
make payment or perform other acts required by this lease on Lessee's behalf. All sums paid by
lessor and all necessary incidental costs shall be payable to LesSor on demand and shall constitute
additional rental under this Lease.
8. TIME OF ESSENCE.
Time is of the essence of this agreement.
9. WAIVER.
City's waiver of any default in Lessee's performance of any condition of this Lease, including
the obligation to pay rent, shall not constitute a waiver of remedies available for a subsequent breach
of the same or a different condition of this Lease. Acceptance of subsequent rental payments from
Lessee or its assignees shall not constitute a waiver of the failure of Lessee to pay rent or obtain prior
approval to an assignment of this Lease.
-7-
10. NOTICES.
Any written notice required hereby shall be deemed sufficient when placed in the United
States mail, postage prepaid and addressed as follows:
TO LESSEE: TO CITY:
ASCOT Aviation Inc.
3370 Flight Avenue
Redding, CA
93401
City Manager
Ukiah Civic Center
300 Seminary Avenue
Ukiah, CA 95482
11. RECORDING AND BINDING EFFECT
This Lease may be recorded and shall be binding upon and inure to the benefit
of any successor to or purchaser of either party's interest.
12. PARAGRAPH HEADINGS.
Paragraph headings are included for the convenience of the parties and are not intended to
define or limit the scope of this Lease.
13. PREVIOUS AGREEMENTS. '
Any and all existing statement or agreements, whether oral or written, or renewals thereof,
between the parties hereto, covering the same subject matter, are hereby canceled and superseded
by the terms of this Lease, and such prior agreements, statements or understandings shall have no
further force or effect.
14. DUPLICATE ORIGINALS.
This Lease may be executed in one or more duplicate originals bearing the original signature
of both parties and when so executed any such duplicate original shall be admissible as proof of the
existence and terms of this Lease.
-8-
Entered on the date first written above.
ATTEST:
Marie Ulvilla, City Clerk
CITY OF UKIAH
By:
ASCOT Aviation, Inc.
By:
-9-
AGENDA
SUMMARY
ITEM NO. 8e.
DATE: April 5. 2000
REPORT
SUBJECT: i.
ii.
UPDATE THE CITY COUNCIL REGARDING MAJOR
TRANSPORTATION CORRIDOR ENHANCEMENT PROJECT
APPROVE PROPOSED PARKING LOT "C" LAYOUT PLAN
ADOPT RESOLUTION GRANTING BLANKET AUTHORITY TO CITY
MANAGER TO EXECUTE RIGHT-OF-WAY CERTIFICATES AND
OTHER PROJECT DOCUMENTS
Purpose
On August 18, 1999, the City Council directed staff to apply for Transportation Enhancement
Act (TEA) funding, through a competitive process, for the Major Transportation Corridor
Enhancement Project. The project involves a variety of landscape and streetscape
improvements on State Street and the area surrounding Parking Lot "C" located directly behind
the Library. At this time, staff wishes to update the City Council concerning the expansion of
(Continued on Page 2)
RECOMMENDED ACTION' After discussion regarding Major Transportation Corridor
Enhancement Project, Council approve proposed Parking Lot "C" Layout Plan, and Adopt
Resolution Granting Authority to City Manager to Execute Right-of-Way Certificates and Other
Project Documents
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Council approve variation of project outlined by staff.
Citizen Advised: Tom Greenaway
Requested by: N/A
Prepared by' Michael Flad, Assistant City Manage~~'
Coordinated with: Candace Horsley, City Manager; Larry DeKnoblough; Director of
Community Services; Otto Bertolero, Interim Director of Public Works/City
Engineer; Rick Seanor, Deputy Director of Public Works
Attachments: 1. Resolution for Adoption
2. Agenda Summary Report, dated August 18, 1999
3. Letter, dated August 31, 1999, to MCOG
4. Letter, dated December 9, 1999, from MCOG
5. Letter, dated February 10, 2000, to MCOG
6. Memorandum, dated February 24, 2000, from MCOG
7. Agenda Summary Report, dated September 15, 1999
8. 3-[~ark Layout from New Dimensions Radio
/
APPROVED:' (~-:~
Candace Horsley, CitylManager
4/Sec.ASRFEMA.400 I
the project's scope and available funding, discuss and review a proposed layout plan for the
northwest corner of Parking Lot "C," and obtain authorization for the City Manager to execute
right-of-way and other project documents.
Background
The following timeline provides a comprehensive outline of the City's Maior Transportation
Corridor Enhancement Proiect grant application and the funding process. For more detailed
information please refer to the attached documents.
August 18, 1999
Staff presents a variety of grant application options eligible for TEA
funding. It was the direction of the Council to proceed with the Major
Transportation Corridor Enhancement Project. (Attachment 2)
September 1, 1999
Major Transportation Corridor Enhancement Project application submitted
to the Mendocino Council of Governments (MCOG). Total amount of the
project is $276,000. ($236,000 grant + $40,000 local match) (Attachment
3)
December 6, 1999
Ukiah project recommended for TEA grant funding by MCOG in the
amount $221,000. Matching funds were increased to $55,000.
Recommendation for funding forwarded to the California Transportation
Commission (CTC). (Attachment 4)
February 2, 2000
Phil Dow, Director of MCOG, advises staff that additional TEA funding
may be available. Mr. Dow requests additional information and cost
estimates from Ukiah staff for an expansion of the enhancement project.
Mr. Dow further advises Ukiah staff that he needs the information no later
than February 10, 2000, for presentation to the CTC.
February 10, 2000
Staff provides MCOG with the requested information. Additional
proposed project components increase the overall scope of the project to
$503,000 plus a local match of $69,000. (Attachment 5)
March 6, 2000
MCOG reviews and approves the increase in funding for the project in the
amount of $503,000 in grant funding plus $69,000 in local matching
funds. (Attachment 6)
March 10, 2000
Planning Department staff completes and sends Environmental Review,
California Environmental Quality Act, and National Environmental Quality
Act documents, as required by MCOG, to the California Department of
Transportation.
April, 2000
CTC meeting and public hearing scheduled. Project funding approval has
been placed on the agenda and recommended by CTC staff.
May, 2000
If approved at the April CTC hearing, a second public hearing is required
and would take place at the regularly scheduled CTC meeting in May.
June, 2000
Funding allocation request expected and earliest date for Ukiah to begin
incurring project related costs,
Discussion
As detailed in the original application, The Major Transportation Corridor Enhancement Project
has two primary components, the State Street corridor and the area surrounding Parking Lot
"C." In both components, the main project enhancement is the introduction of street trees. As
outlined on page 3 of Attachment 4, the grant application also includes the replacement of
sidewalks, addition of ADA ramps, irrigation improvements, tree well covers, benches, trash
and recycling containers.
At the September 15, 1999 meeting of the Ukiah Redevelopment Agency, staff presented and
received input from the Agency concerning the development of Parking Lot "C" (Attachment
6). Since that time, staff (with assistance from the Mendocino County ReLeaf and community
volunteers) has successfully completed Phase 1 of the project.
Recently, staff has been approached by Mr. Tom Greenaway of New Dimensions Radio
regarding their desire to financially contribute to the landscaping of the northwest corner of
Parking Lot "C," also referred to as the "Pocket Park." New Dimensions' offices are located
on the northeast corner of Smith and Main Streets, directly across from the proposed project
area. The entire perimeter of the lot is planned for landscaping improvements as part of the
TEA grant, however, because the landscape area of the northwest corner is approximately 100'
x 45', the area will support a small park. Other than basic tree planting and mulch,
improvements to this area are not included in the TEA grant.
Staff met with Mr. Greenaway and New Dimensions owner, Mr. Michael Toms, and developed
a conceptual improvement plan for the Council's review. The proposed plan includes a small
fountain with a meandering, shallow waterway leading to a small pond surrounded by a
concrete walkway with benches and picnic tables. The landscape will include mostly trees and
shrubs surrounded by a mulch ground cover and an interior lawn area between the waterway
and the interior of the parking lot. The design is intended to provide a much needed green
space in an area of Main Street currently devoid of streetscape features with a minimum impact
on maintenance staff. Staff believes the proposed plan meets those criteria and maintains the
standard set for landscaping of the City's parking lots. Once Council has reviewed the Plan,
Mr. Greenaway has indicated the radio station will pursue public donations to fund the
improvement costs (Attachment 8).
Lastly, in an effort to implement the local agency streamlining procedures outlined in Chapter
13 of the California Department of Transportation's Local Assistance Procedures Manual, staff
has prepared a "Blanket Authorization" Resolution for Council approval. The attached
resolution would permit the City Manager to sign Right-of-Way documents like the one
attached for the Major Transportation Corridor Enhancement Project as well as other project
documents. Staff feels that not only does the proposed Resolution bring the City of Ukiah in
line with Caltrans recommended procedures, it will help to streamline and reduce the
bureaucracy surrounding federal and state grant-funded projects.
Recommendation and Conclusion
It is staff's recommendation that the City Council review and discuss the expanded Major
Corridor Enhancement Project, discuss and review the proposed layout plan for the northwest
corner of Parking Lot "C," and authorize the City Manager to execute right-of-way and other
project documents for federal and state transportation grant-funded projects.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF UKIAH GRANTING BLANKET AUTHORIZATION
TO THE CITY MANAGER TO EXECUTE RIGHT-OF-WAY
CERTIFICATES AND OTHER PROJECT DOCUMENTS
WHEREAS, the City of Ukiah routinely must certify rights of way and execute
other project documents on Federal Highway Administration (FHWA) and State of
California funded highway projects; and
WHEREAS, such certification is in the form of Right-of-Way Certifications
according to Caltrans procedures, which facilitate FHWA program regulations, as set
forth in the Caltrans Local Assistance Procedures Manual, dated 1 January 1998; and
WHEREAS, Caltrans regulations, as stated in Chapter 13 of the Local
Assistance Procedures Manual, provide that local public agencies may grant blanket
authorization to a particular officer, or his or her designee, to approve and sign such
Right-of-Way Certifications; and
WHEREAS, the City Manager is the appropriate City officer to sign such Right-
of-Way Certifications by virtue of being responsible for the City Maintained Street
System; and
WHEREAS, Caltrans encourages streamlining of procedures involving local
public agencies and has therefore suggested that blanket authorization be obtained by
the City Manager to approve and sign Right-of-Way Certifications, and other project
documents.
NOW, THEREFORE, BE IT RESOLVED by the Ukiah City Council that the City
Manager be and hereby is authorized and directed to approve, execute, and sign Right-
of-Way Certifications and other project documents for all FHWA and State of California
funded projects on behalf of the City of Ukiah; and
BE IT FURTHER RESOLVED that this authorization shall remain in force until
rescinded by this Council.
Page 1 of 2
PASSED AND ADOPTED this 5th day April, 2000, by the following roll call vote'
AYES:
NOES:
ABSENT:
ABSTAIN:
Jim Mastin, Mayor
ATTEST:
Karen Yoast, Deputy City Clerk
Page 2 of 2
ITEM NO. 1 Ob
DATE: August 18, 1999
AGENDA SUMMARY REPORT
SUBJECT:
CONSIDERATION OF 1999 MENDOCINO COUNCIL OF GOVERNMENTS (MCOG),
TRANSPORTATION ENHANCEMENT ACTIVITIES (TEA) GRANT APPLICATION
OPTIONS.
As the Regional Transportation Planning Agency (RTPA) for Mendocino County, the Mendocino
Council of Governments (MCOG) has the responsibility to identify and select local projects for funding
through the Transportation Enhancement Activities (TEA) Program. The MCOG has a total of
$1,847,000 available for programming over the six year TEA-21 period. MCOG has decided on two
separate competitive funding cycles, of roughly $900,000 each to distribute the funding. Applications
for the first funding cycle are due no later than September 1, 1999. The minimum project size is
$100,000 and staff feels that, while there is technically no "cap" on project size, the realistic maximum
project for the City of Ukiah is between $200,000 and $300,000 per funding cycle. After an initial
analysis of projects that are both eligible for funding under the program and identified as a priority
need in Ukiah, staff has developed an initial list of potential projects. Staff is presenting the following
information to the City Council to receive input, direction, and prioritization of potential projects for the
purpose of submitting an application(s) to the MCOG for a 1999 TEA grant.
Background
Transportation enhancement funds are to be used for transportation-related projects that enhance
quality-of-life, in or around transportation facilities. Projects must be over and above required
mitigation and normal transportation projects, and the project must be directly related to the
transportation system.
Continued on Page 2.
RECOMMENDED ACTION:
1. Consider, discuss and prioritize potential TEA grant project application options and direct staff
to proceed with the application process.
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Determine that an alternative action is warranted and remand to staff with direction.
Citizen Advised:
Requested by:
Prepared by:
Coordinated with:
Attachments:
N/A
Candace Horsley, City Manager
Michael Flad, Assistant City Manager
Rick Kennedy, Director of Public Works/City Engineer
Candace Horsley, City Manager
None.
APPROVED:
nager
Candace Horsley, City
Consideration of 1999 Mendocino Council of Governments (MCOG),
Transportation Enhancement Activities (TEA) Grant Application Options
August 18, 1999
Page 2
Transportation enhancement activities are a means to integrate more creatively and sensitively
transportation facilities into their surrounding communities. What distinguishes transportation
enhancement activities from other worthwhile "quality of life" and environmental activities is their
potential to create a transportation experience that is more than merely adequate. At the same time,
they may protect the environment and provide a more aesthetic, pleasant, and improved interface
between the transportation system for the communities and people adjacent to transportation facilities.
Eligibility
All projects selected by the MCOG will be reviewed by Caltrans Headquarters TEA Program staff for
eligibility confirmation. During its review, Caltrans will review the following:
Direct relationship to the surface transportation system.
Projects must have at least one direct relationship to the surface transportation system. This
relationship may be one of function, proximity, or impact.
Scope over and above a normal project.
Enhancement activities are over and above normal transportation projects. Transportation
enhancement activities may not in and of themselves be routine or customary elements of
transportation projects, or mitigation for project impacts in compliance with the requirements
of environmental, or other federal, state, or local laws, even if those aspects will otherwise
constitute specified transportation enhancements.
Projects must be selected from one or more of the twelve activities categories listed in
U.S. Code Section 101(a).
If the project eligibility in these 12 categories is not clear, the City needs to provide reasoning
for including it, and a determination will be made by the MCOG, Caltrans, and the Federal
Highway Administration. The 12 categories are:
.
2.
3.
4.
.
.
.
10.
11.
12.
Provision for facilities for pedestrians and bicycles.
Provision of safety and education activities for pedestrians and bicyclists.
Acquisition of scenic easements and scenic historic sites.
Scenic or historic highway programs (including the provision of tourist and
welcome center facilities).
Landscaping and other scenic beautification.
Historic preservation.
Rehabilitation and operation of historic transportation buildings, structures, or
facilities (including historic railroad facilities and canals).
Preservation of abandoned railway corridors (including the conversion and use
thereof for pedestrian or bicycle trails).
Control and removal of outdoor advertising.
Archeological planning and research.
Mitigation of water pollution due to highway runoff or reduction of vehicle caused
wildlife mortality while maintaining habitat connectivity.
Establishment of transportation museums.
Consideration of 1999 Mendocino Council of Governments (MCOG),
Transportation Enhancement Activities (TEA) Grant Application Options
August 18, 1999
Page 3
Eligible Costs
Enhancement activities must be for capital improvement; it cannot be a maintenance expenditure
project with a life of less than five years, or a one-time temporary improvement. Feasibility study
projects are ineligible which in and of themselves provide no enhancement to the public.
Transportation enhancement activities are public funds. They are to be used for facilities that are in
public ownership for public use. Improvements to private property and commercial facilities are not
eligible, but may include properties for public use, owned by a public not-for-profit corporation. Eligible
costs incurred after the project has "Authorization to Proceed" include the preliminary engineering, real
property acquisition, and construction costs associated with conducting a eligible activity.
Transportation enhancement activities are reimbursable projects. The City is expected to finance the
project as it proceeds.
A match of approximately 12 match dollars to each 88 federal dollars for a total of 100 dollars is
required in each enhancement project phase. Match may be local dollars, state dollars (including
Environmental Enhancement and Mitigation program), non-transportation federal dollars, or private
funding. Up to 88% of the actual eligible expenditures - up to the ceiling of the federal funding share-
will be reimbursed with each invoice. The City must commit to cover any cost overruns if the project
turns out to be underfunded.
Application Screening Process
All of the screening requirements must be met, where applicable. If a proposal meets all of the
applicable criteria, it is eligible for consideration; if not, it will be dropped. The screening criteria falls
into seven groups:
.
.
3.
4.
5.
6.
7.
Transportation Enhancement.
a) Relationship to surface transportation
b) Scope over and above a normal project
c) Within at least one of 12 activities categories
Consistency with land use and transportation plans.
Financial viability of the agency and the project.
Project specific requirements (well defined scope and schedule).
Air Quality - no significant unmitigatible impacts.
Americans with Disabilities Act (ADA) consistency; and
Secretary of the Interior's Standards and guidelines for Archeology and Historic
Preservation and Secretary of the Interior's Standards for Treatment of Historic
Properties.
Consideration of 1999 Mendocino Council of Governments (MCOG),
Transportation Enhancement Activities (TEA) Grant Application Options
August 18, 1999
Page 4
Application Timeline
September 1, 1999 and 2001
Applications Due
SeptembedOctober, 1999 and 2001
Technical Advisory Committee (TAC) Review
and Recommendation
November, 1999 and 2001
MCOG Selection of Projects
December, 1999 and 2001
Regional Transportation Improvement Plan
(RTIP) Due.
Proposed City Projects
After reviewing the MCOG approved TEA Grant application minimum eligibility requirements and
application screening methodology, staff began an analysis of potential projects within the City. The
City of Ukiah has compiled a significant amount of useful plans and studies for the purpose of
assisting the City Council and staff with these types of planning decisions. Staff has reviewed the
following documents with the goal of extracting some common project "themes" that will be competitive
in the grant application process. The following is a list of the documents that were reviewed:
City of Ukiah
City of Ukiah
City of Ukiah
City of Ukiah
City of Ukiah
City of Ukiah
City of Ukiah
City of Ukiah
- General Plan
- Streetscape Guidelines Study (UDAW)
- Community Forest Management Plan
- Downtown Revitalization Master Plan
- Downtown Design Guide
- Municipal Code
- Landscape and Streetscape Design Guidelines
- Bicycle and Pedestrian Master Plan
City of Ukiah - Economic Study
Mendocino County Regional Transportation Improvement Program (RTIP)
Overall Economic Development Plan (OEDP)
In reviewing these various plans, staff was focusing on two primary issues. First, is there a
demonstrated need for the project? Each of the above listed plans and studies discusses the need
for and priority of a large variety of potential projects. By cross-referencing the various documents,
several common needs or themes were found. Second, do these common recommended projects
meet the criteria of the grant funding source? Regardless of the documented need, potential projects
must meet the eligibility requirements for funding. In addition, the process is a competitive grant
process. Projects must not only be eligible, they must out score competing projects from throughout
Mendocino County.
Consideration of 1999 Mendocino Council of Governments (MCOG),
Transportation Enhancement Activities (TEA) Grant Application Options
August 18, 1999
Page 5
Again, the minimum project size is $100,000 and staff's recommended maximum project size for the
City is between $200,000 and $300,000. Staff's recommended application "cap" is based on a variety
of factors including the information received from the MCOG at the August 4, 1999 grant application
training. Staff feels that given the roughly $900,000 in funding available, the highly competitive nature
of the process, the City's history of past transportation related funding cycles, the City's population,
the amount of City road miles, and the MCOG's commitment to equitably disperse the funding county-
wide, projects in excess of $300,000 will be at a substantial competitive disadvantage.
With the above in mind, staff is recommending a project or projects that include the following
components:
Additional street trees on State Street
The need for additional street trees (including irrigation) on our primary transportation
corridor is well documented. Trees not only provide an aesthetic enhancement of the
transportation right of way, they provide much needed pedestrian walkway shade.
Downtown crosswalk enhancements.
The Ukiah downtown core would benefit greatly from a unifying pedestrian element.
Stamped concrete or other materials that enhance crosswalk visibility would also alert
motorists to the pedestrian presence on State, Main and School Streets.
Landscape improvements at east block of Main St., Smith St. and Standley St.
The improvement of our large unshaded parking lots, like the one located on Main
Street, has a multitude of benefits. In addition to shading the parked vehicles, perimeter
landscaping will shade the pedestrian walkway. Landscaping will also greatly enhance
what is currently considered a blighted area.
Streetscape enhancements on State Street and Downtown.
In addition to street trees, many other pedestrian level streetscape enhancements have
been recommended. Typically these improvements include uniform trash receptacles,
lighting, planters, signage, etc.
Pedestrian and bicycle enhancements.
Particularly the need for improved bicycle parking facilities is recommended. Them are
currently no enclosed bicycle storage units in Ukiah. For pedestrians, the addition of
benches would provide rest areas throughout our pedestrian corridors.
Staff continues to develop project details and cost estimates for the above slate of recommended
potential activities. Staff will provide the City Council with detailed information concerning each
potential activity at the August 18, 1999 City Council meeting.
Recommendation
It is staff's recommendation that after receiving additional project details that the City Council consider,
discuss and prioritize the recommended Transportation Enhancement Activities for the purpose of
preparing a 1999 TEA grant application.
300 UKIAH, CA 95482-5400
· ADMIN. 707/4.63-6200 · PUBLIC SAFETY 463-6242/6274
· FAX # 707/4.63-6204 · EMAIL: ukiahcty®jps~net ·
August 31, 1999
Phil Dow
Executive Director
Mendocino Council of Governments
367 North State Street, Suite 206
Ukiah, California 95482
Dear Mr. Dow:
Attached please find the 1999 City of Ukiah Transportation Enhancement Activities (TEA) grant
application for the "Major Transportation Corridor Enhancement Project."
At the August 18, 1999 meeting of the City Council, staff was given direction to proceed with the
attached application. The City Council selected this project from a list of several potential projects
for a variety of reasons. First, the addition of street trees on State Street and the eastern portion
of downtown, will greatly improve the aesthetics of this vital transportation artery. Second, the
project will promote additional pedestrian activity. Especially at this time of year, the addition of
shade to our walkways and streets makes the thought of walking instead of driving much more
attractive. Third, the addition of trees to our environment just makes good sense. As stated in the
application, trees are attractive, provide shade, screen noise, improve air quality, control erosion,
and are extremely cost effective. Perhaps the only negative aspect of planting additional
landscaping is the cost of continued maintenance and in this case, those expenses will be paid by
the City of Ukiah. While the maintenance costs for this project alone will easily exceed $100,000
over the life of the grant, the City of Ukiah remains committed to improving both the aesthetics and
pedestrian accessibility of our major transportation corridors.
I recognize that the ranking and funding process for these grants will be a difficult one. In addition
to being a competitive program, the wide range of projects you receive will make it truly difficult to
prioritize the needs of the County. With this in mind, staff and the City Council have made every
effort to select a project that would meet the needs of the City while benefiting the entire region.
Thank you in advance for your consideration of this worthwhile project, and I look forward to hearing
from you with the Technical Advisory Committee's results.
Sincerely,
Candace Horsley ~'~
City Manager .
'~(/e Are Here To Serve"
Transportation Enhancement Activities (TEA) Application Form
PART ONE: GENERAL PROJECT INFORMATION
X Project is located entirely within the RTPA. RTPA/County: Mendocino Council of Governments
. Proposal is statewide or multi-regional in scope. Legislative District Number: Assembly District 1
PROJECT TITLE: Major Transportation Corridor Enhancement Program
ADMINISTERING AGENCY APPLICANT Project
Administrator/person with day-to-day responsibility for
implementing project (Name, title, agency, address, phone, fax)
Michael Fiad, Assistant City Manager
City of Ukiah
300 Seminary Ave.
Ukiah, CA 95482-5400
(707) 463-6269 (phone)
(707) 463-6204 (fax)
TEA FUNDS REQUESTED $236,000
NON-FEDERAL TEA MATCH ,$,40,000
TOTALTEA PROJECT COST $276,000
,~ TEA is a stand-alone project.
~] TEA is part of a larger project.
Total Project Cost $.
(Round dollars to nearest thousands)
Person who can answer questions about this
application (Name, title, phone, fax)
Michael Flad, Assistant City Manager
(707) 463-6269 (phone)
(707) 463-6204 (fax)
PARTNER(S) (Name, title, agency, address, phone, fax)
PROJECT SCOPE OF PROPOSED TRANSPORTATION ENHANCEMENT ACTIVITIES
Describe the project's location, limits of work, size, etc. (Not the justification or benefits).
The project is located within the City of Ukiah on State Street, Main Street, Smith Street, and Standley Street. Street trees will
be planted along the streets to provide beautification of the corddor and to encourage pedestrian activity. Existing sidewalk at
selected locations will be removed and replaced. A handicap access ramp will be constructed at the southeast comer, of Main
Street and Smith Street.
PROPOSED SCHEDULE:
Start Environmental Studies
Draft Environmental Document
Final Environmental Document
Begin Design Engineering
Plans, Specifications, and Cost Estimates complete
Start Right of Way Acquisition
Right of Way Certification
Ready to Advertise
Award Construction
Project Completion (open for use)
Quarter and Year
Q1-2000
Q1-2000
Q1-2000
Q2-2000
Q2-2000
N/A
Q2-2000
Q2-2000
Q3-2000
Q3-2000
WHICH CATEGORY OR CATEGORIES ENCOMPASS THE TEA? (May be more than one.)
List approximate amount of federal TEA funds to be spent in each of the TEA categories:
$236,000
$
1. Pedestrian or bike facilities $.
2. Acquisition of sites $
3. Historic highway programs $.
4. Landscaping/scenic beautification $.
5. Historic preservation $
6. Historic transportation rehabilitation
7. Rails to trails
8. Outdoor advertising removal
9. Archaeology planning/research
10. Runoff water pollution control
Activities outside the categories: List approximate amount of federal TEA funds to be spent in activities outside the ten categories
(must be necessary and incidental to the portion inside the categories): $
Describe:
TEA Application Fo~n - RTPA
2 November 1998
City of Ukiah, TEA Application, Major Transportation Corridor Enhancement Program
August 24, 1999
P el of 4
PART TWO: FUNDING
Prepared by: Michael Flad
Agency: City of Ukiah
PROJECT COMPONENT COSTS
Phone: (707) 463-6269
Title: Assistant City Manager
FAX: (707) 463-6204
PRELIMINARY ENGINEERING PHASE:
· Construction Documents
· Environmental Documents
TOTAL PRELIMINARY ENGINEERING
RIGHT OF WAY PHASE (ACQUISITION):
· Capital
· Support costs
TOTAL RIGHT OF WAY
CONSTRUCTION PHASE:
· Construction contract items
Contingencies
Construction engineering
TOTAL CONSTRUCTION
*see next sheet for detail
CASH FLOW CHART
$19,000
$1,000
$20,000 (City of Ukiah, In-kind match, consultant work)
$0
$0
$197,000
$39,000
$20,000(City of Ukiah, ln-kind match, DPWStaff)
$256,0OO
Preliminary
Engineering $ $
Right of Way $ $
Construction $ $
TOTAL $0 $0
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Beyond
1998/99 1999/00 2000/01 2001/02 2001/02
$ $ $
$ $ $
$236,000 $ $
$236,000 $0 $0
LOCAL FUNDING SHARE DETAIL
Phases A + B
Federal Match
Preliminary Eng $0 $20,000
RightofWay $0 $0
Construction $236,000 $20,000
TOTAL $236,000 $40,000
= C D*
TEA Cost Total Cost
$20,000 $
$0 $
$256,000
$276,000 $
*Fill in column 'D' only when TEA is part of larger project, not a stand-alone project
SOURCE(S) OF MATCH
(Spell out; No acronyms)
Preliminary
Engineering
Right of Way
Construction
City of Ukiah, In-kind match (Consultant)
N/A
City of Ukiah, In-kind match (Dept. of Public Works Staff)
MAINTENANCE Who will maintain? City of Ukiah
What is the source of maintenance funds? City of Ukiah General Fund
TEA Application Form - RTPA
2 November 1998
City of Ukiah, TEA Application, Major Transportation Corddor Enhancement Program
August 24. 1999
Page 2 of 4
PART TVVO: FUNDING (continued)
Item
~tion
ITEM ESTIMATE - CONSTRUCTION CONTRACT ITEMS
Unit ~ Uni___kt Price
Amoun.._.._._.._.~t
SEE ATTACHED COST ESTIMATE
TEA Application Form - RTPA
2 November 1998
Page 3
,~., .~,
PART THREE: ASSURANCES
This page must be signed for the project to be considered for funding.
Commitment/Prior Commitment:
Has the project Administering Agency certified that it is willing and able to maintain and operate the project?
~Yes [-] No
Please descdbe the best evidence of the certification available. If none is available, when can one be provided?
Attached are the minutes of the August 18, 1999 Ukiah City Council Meeting. As recorded in the minutes, staff was directed
by the City Council to submit an application to MCOG for the purpose of funding the Major Transportation Corddor
Enhancement Project with the understanding that all future maintenance costs, including the cost of watering, repair and
pruning will be the responsibility of the City of Ukiah. Also attached is the letter of assurance from Ukiah City Manager
Candace Horsley.
Project Administering Agency possesses legal authority to nominate transportation enhancement activity and to finance,
acquire, and construct the proposed project; and by formal action (e.g., a resolution) the Administering Agency's goveming
body authorizes the nomination of the transportation enhancement activity, including all understanding and assurances
contained therein, and authorizes the person identified as the official representative of the Administering Agency to act in
connection with the nomination and to provide such additional information as may be required.
Project Administering Agency will maintain and operate the property acquired, developed, rehabilitated, or restored for the life
of the resultant facility(les) or activity. With the approval of the Califomia Department of Transportation, the Administering
Agency or its successors in interest in the property may transfer the responsibility to maintain and operate the property.
Project Administering Agency will give the California Department of Transportation's representative access to and the right to
examine all records, books, papers, or documents related to the transportation enhancement activity.
Project Administering Agency will cause work on the project to be commenced within a reasonable time after receipt of
notification from the State that funds have been approved by the Federal Highway Administration and that the project will be
carried to completion with reasonable diligence.
Project Administering Agency will comply where applicable with provisions of the Califomia Environmental Quality Act, the
National Environmental Policy Act, the Americans with Disabilities Act, the Secretary of the Interior's Standards and Guidelines
for Archaeology and Histodc Preservation, and any other federal, state, and/or local laws, rules and/or regulations.
I certify that the information contained in this transportation enhancement activity application, including required attachments,
is accurate and that I have read and understand the important information and agree to the assurances on this form.
(TEA Administering Agency Representalve as shown in Resolution)
Pdnted (Name and Title) ~(~v,.~_,._¢_~_ /\~i"~ ~,~ .,'
Administering Agency C,',---'~ ~)t ~-' ~ ~"'~
Date
TEA Application Form - RTPA
2 November 1998
Page 4
Cost Estimate for Major Transportation Corridor Enhancement Program
CITY OF UKIAH J J
Cost Estimate for Major Transportation Corrid?r Enhancement Program
Prepared By: Rick Seanor I
Item i Estimated ; Unit of
No. Item i Quantity . Measure , Unit Price Total Price
I ]Sawcut Concrete ! 3,894 LF
$19,470.00
2IRemove Concrete i 8,658 SF I $4.00 i $34,632.00
3 IConstruct ADA Ramp ! I EA $3,200.00 I $3,200.00
4 Construct Sidewalk 7,560 , SF , $7.00 I $52,920.00
i I $17,300.00
5 Construct Vertical Curb 865 LF
6 Street Trees ! 312 t EA I $100.00 ! $31,200.00
7 Irrigation System i 945 i LF $40.00 i $37,800.00
i i i Subtotall $196,522.00
[ i Subtotal, Rounded to Nearest $1000 $197,000.00
I
I i ! Contingenciesl @ 20% i $39,000.00
i I Total Estimate (TEA Funds Requested) $236,000.00
!City of Ukiah In-kind Match I i
Preliminary Engineering @ 10% I i I $20,000.00
Construction Engineering @ 10%1 Total $20,000.00
i I Project Cost, $276,000.00
Date/Time Printed: 8/24/99 at 10:18 AM
Filename: TEATransCorrEnhProg ~I~
10b. Consideration of 1999 Mendocino Council of Governments (MCOG)_
Transportation Enhancement Activities {TEA) Grant Application Option~
Assistant City Manager Fled noted that a cost estimate of staff's recommended activities
was distributed to Council. He explained that, as the Regional Transportation Planning
Agency (RTPA) for Mendocino County, the Mendocino Council of Governments (MCOG)
has the responsibility to identify and select local projects for funding through the
Transportation Enhancement Activities (TEA) Program. The MCOG has a total of
$1,847,000 available for programming over the six year TEA-21 period. MCOG has
decided on two separate competitive funding cycles, of roughly $900,000 each to distribute
the funding ,':-.-"~--:..
· ..::::::::.-:::.-.
.:iii:
He advised that Public Works Director Kennedy and Dep.u. ty Publi.~ii~H~¢;~:i~ector Seanor
prepared the cost estimates for the City and assist~iiiii~, ideni~ii~iiii~i...o, rity needs and
recommending potential proje?s. The minimum
while there is technically no "cap on the project sizeiiii~e realis..:t.-.~¢ii~a~J~iii~..e, ct f.~i!ii~e
City of Ukiah is between $200,000 and $30o,000i¢~r fundi~"'cycle.
projects must be over and above required mitigati~!i~':~iiii¢~rmal transpo'~i~{i~?~;¢ejects,
and the project must be directly related to the tra~-~~ii~..n, system. Proje'~ts must be
selected from one or more of the twelve activities ~~i~iiiii.[s...ted in U.S. Code Section
101(a). He reviewed eligible costs and note~iiii~'""~ha~:'"~iii~i~iiii~s:.::..must be for capital
improvements; it cannot be a maintenance ..e~:e.n. diture':~~i!iiiii~nce transportation
enhancement activities are public funds. Al~!i?:i~ii~i~!~eening":~ii':.~:~ents must be met
if a proposal meets all of the applica.b.J.~!i;i;i~i~i~{~i~iiiiiii~iiiii~:eligib!~.::ii¢i~)r consideration. He
discussed the seven groups of screeni~.:..crited~?::~i~i~iiiiii~ii~i~i?~iiiiiiii~ii?~iiiiiiii~i?~i~i~ii~iiiiiii ....
City Manager Horsley advise.d...;iiii~:t duri~¢ii?~he :~i~::? .................. ,
early, 1990 s, several committees met
regarding Redevelopment an.d...iiii.i~y pl.~ and pCjScts were prioritized at that time.
Unfortunately, during the fu¢~:g proc~, so~ii!i~ the initial prioritizations were not
followed, w.h. jch resulted i.n..~ii~o~: memb~ii~ii.:.t~eii~mittees having bad feelings that they
had spent¢!~e and eff~ili~ii~ioritize i~.~i~~i's and were not funded. Staff attempted
.-:-:-:-:-:-:-:.:.:.:-:-:-:.:-:-:-:.. ,~;.:.:.:.:.:.:.:.:.:.:.:.:.:.:,:.:.:.: .:,:.:.:.:.:. =================================
to reco~~a!i;~eme of':iB~i:~j~....cts that'":~iSuld fit into the criteria of this grant, that were
not preVi:~i~j~i~ed.
Assistant C.i:i'~iiii~~r..:.. Fla~iiiii~i~i;'~ that Judy Pruden pointed out the Streetscaping
Guidelin.e....S..'ii!i~(~:~i~i~ii~yide~:'~i~'elpful information to staff. He discussed in detail the
propose."~!~:j~roject acti:~i~iiiJ~tified by staff of 1) Additional street trees on State Street,
2) D.:...~'ntown crosswal~i~~"cements' 3) Landscape improvements at the eastern block
of::~in, Smith, and S.t:~d'l:~y Streets, 4) Streetscape enhancements on State Street and
t~iii~owntown area, ~8 5) Pedestrian and bicycle enhancements. He discussed the Cost
~i~!~ate for Addi.t..[~'al Street Trees on State Street which was broken down into three
~i~:.:..o.f the..:.Gi(~!?~l) North Section - Norton Street to Garrett Drive, 2) Downtown Section
i! iiJJili 8 iii[ iiii rton Street, and 3) South Section - Washington Avenue to Mill Street.
City Manager Horsley noted that, although the projects have been included in specific
sections, Council has the option of selecting a combination of projects.
Discussion followed between Staff and Council regarding the five proposed projects.
Topics of discussion included providing additional benches in various areas, and the
August 18, 1999
Page 11 of 15
composition of a "stamped cross walk" and its benefits. Extensive discussion followed
concerning the cost of street trees and their irrigation, as well as the attrition rate should
the trees not be watered on a regular basis. The concept of acquiring agreements with
business owners to water trees in front of their business, in addition to obtaining the
assistance of the Shade Brigade for watering purposes was discussed. It was noted that
cross walk enhancement would be a safety as well as visual asset to the community. The
idea of a watering truck was discussed, however, it was noted by staff that the City does
not currently own such a vehicle, and would need to hire personnel to the operate the
vehicles.
Public Works Director Kennedy noted that staff previously co.'h:..vertedii~::"truck into a
watering truck and explained the watering procedure ...... ~iiiiiiiiiiiiiiiiiiiii~:..::?:iiiii? ....
Mr. Flad advised that the shading of the area surro.u.~¥~:~' the p.a.':~i~iiii~{iii~ Main Str.e..~'
is part of a project currently being developed by
Ms. Horsley explained that staff prefers that some i~'"......'~i~' allocated fo;ii~:;~ii~i~ing of
the area surrounding the parking lot since staff h:~iiii~ti!~..six months with'"~'he Shade
Brigade to design the parking lot and surrounding?:~iiiiii~.e..r, than funding through a
small grant program that The Shade Brigade ol~i"ns,"~'~iii~iif~unding is available to
complete this project. ....:.::::~:~:~:~:~
Discussion continued with regard to enha..~~iii~i~ii~ea su~::~nding the parking lots
along Main Street and that this area:?:i~*'Consi.d.~iiiii~?~ii~jli~h..t:-~'' area. The area is also
located in close proximity to transpo~iion se~i:~,eS'i'::~!iiii~, the downtown area, and
the State Street corridor, thereb~ii~.i~king i.t.;ili~prime ~!~:~idate for funding. The topic of
focusing on other areas of th~!iiii~i~ rather::' than fo~sing on the downtown area was
===================== ;':'":'"":
pursued. It was noted that t~.~i?~'orther.¢?i~hd sou..t~"rn portions of State Street have not
received m..uch attention.::**i-;iiiiD~ihg disc.~iS~...s..~iiii;~ii~as noted that the majority of costs is
containe .d?:i~i.~.e irrigati~i~.t.:~ of the ~iiiiiiii¢~as noted that watering of the trees could
be hand. ji~!iii~.use ~i!i!iil;~i~ need 'i~i~i~':"budgeted for next year.
Mr. Kenned"~i!~~~d his ~~ii~to stamped crosswalks, noting that soon after they
are installed.~ii!8~.e....dirty"f~;i~6il stains and tire marks. T, hey also become rumble
strips and:~-~:~iii~i~{~ce h'~dache. Based upon the City s accident history during
the PaS.;¢ii~elve mor : iii¢i iiCbost dangerous area for a pedestrian has been in marked
crosS~lks on State ~ii¢i?
..-.-,...........
.........
A...:(~ considerable di~ussion, it was the consensus of Council to select the following
~¢ts for TEA g.r...-~i funding:
~i~iiiiii~it.i.onal...st..-~(:'trees on State Street, but not including irrigation.
~i¢iiiiii~~~!ilJ~)rovements at the east block of Main, Smith, and Standley Streets which
':~iiiili~iiiiii~~:~e and provide shade to the large parking lot, shading for parked vehicles,
perimeter landscaping will shade the pedestrian walkway, and will greatly enhance a
blighted area.
Mayor Mastin briefly discussed Mendocino Transit Authority's (MTA) grant application,
which he provided a copy to Council. Bruce Richard, MTA General Manager, had inquired
August 18, 1999
Page 12 of 15
if Council would be supportive of their grant application. However, it was pointed out that
the applications are competitive and that the City may not be willing to write a letter in
support of MTA's grant application for rehabilitation for the railroad depot building. He
noted that MTA has received notice from Caltrans that they have approved a $312,000
grant to MTA for the depot project. It is MTA's estimate that the entire project, including
the purchase of the property, will be $1.9 million. MTA currently has approximately $1
million.
10c. Consideration of Project Application Options for the SB45 Bike and Pedestrian
Funding Program
9:40 p.m. - Mayor Mastin excused himself from the meeting dueii[e., a c...~i:~t of interest
because one of the properties is near his place of residence.
Public Works Director Kennedy advised that aco~iii~ii~i~cepting:ii~i~~::,s for fund. i~:
considerations under the SB45 Bike and Pedestri~?:'Set
result of the 1998 State Transportation Improvement!ii, lan
state and federal funds in the amount of $7, 826, 0~iii~a~ available to'~;~ili~:docino
County Region for funding allocation by the MCO~iiii~ji~b::.$391,000 was ~'~t aside for
bike and pedestrian projects. He reported that the P.,.:~,~J~ii~~jO. n process will be highly
competitive and open to the five member agencie~iii~f M'~iiiiiii~!~ii::.-.d. iscussed the ranking
criteria for the projects and a Scoring Form w.a..~::~.d, jstribut~i~iiii~ii~.~cil for review. He
discussed in detail the three candidate pr.e...~iiii~t..i~f..ied in I~i~iiii~' Report:
1. Improvement of safer route to school a.t.~i~{~iii~iiilside of.~'ndocino Drive fronting
Yokayo School grounds. .,~iiii?~ ....
2. Construction of pedestrian facili(~!ii~'t Gobbi?~tre~:~ii~!~:~ Manor Drive.
Option #1: Culvert extension.::...?:iii?:i~iiii?
3. Construction of ADA ramP..:~!i~{"vario.~¢:iiii!~cati .o..:~?~ithin.,........... the City of Ukiah.
With rega..'-"~iiiii~.o, projec, t.--i::i!~iiiiiii~ii: Kenn~iiiii~i~:;d that the project was brought to his
attentio~!i~i~~cilrn~~ii~by, an(J"::~{~:{"he had an opportunity visit the site with her
and discd:~iii~i~:ps to'""~ii~:!0cation ~~ii~ili~:...~i~i~ safe¢. He discussed
the field su~iii~ii~e..as in '{~ii~i~!ii!i~cking ADA ramps an~'"~'~'l~'~;Dssed a considerable
Mr. K ..~..'~:~ly continu~ii~!i~ili~etailed estimated cost for each project. The total funding
for ::~i!i?projects is $3~ii~::?~nd he recommended Council select projects which total
~i~~ii~ii~i!~!!!~"elose-to this amount. He reported that the City should be
....... :~i~i~i:i~i~iii:::f'"";' .......................................................... " .............................
r.~l~ng funds in theiii~mount,.:.:.:.:.:, of $125,385 of Surface Transportation Funding and only a
§~E:portion is obligated. He discussed this funding program in detail.
::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .... ..:,::!:.-':i:i:i.-'
~~i~~::~,ibby discussed the situation of the area at Gobbi Street and Oak Manor
S:~jiiiiii~{i~:"that the corner is heavily used by people in the neighborhood, those living
in the mobile home park, and by children. She noted that the area does not have a safe
way to walk around the corner. She recommended that project #2 be placed on the priority
list for funding or that the City provide funds to complete the work. She discussed the two
options for project #2.
August 18, 1999
Page 13 of 15
Grea er Cllciah chamberc Commerce
200 South School Street
Ukiah, CA 95482
(707) 462-4705 fax (707) 462-2088
August23,1999
Executive
Pre.sicJent
Kathie Spencer
Mendo-Lake Credit Union
Vice Presiclcn~
Chuck Sim&n
5LP, Inc,
chief rinandal
Jim Harrison
Savings Bank of Mendocino County
Immeclia~e Past Presiclent
Jim Moyfiold
Rainbow Agricultural Service
l~x~rcl of Directors
Dennis Wilson
Ukiah Daily Journal
Butch Bainbridge
Param aunt Signs
Bernard Lemke. MD
Duane Mahan
Duane Mahan Insurance
Sheridan Malone
Marathon Foreign Auto
Ken McCormick
Visual Identity Printing
Jim Mulheren
Ukiah Custom Cabinet
Jeanie Nord
KUKI
OzzJe Oswald
Ukiah Speedway
George Phelan
Dunnewood vineyards
Tod UIIrich
National Bank of The Redwoods
Ex ~io Directors
Kathy Libby
Council Member, City of Ukiah
Richard Shoemaker
Mendocino County Supervisor
Green Lion Nursery
Elizabeth Brazil
CEO
Cherie Blower
Marketing & Chamber
Development Coordinator
Phil Dow
Executive Director
Mendocino Council of Governments
367 North State Street, Suite 206
Ukiah, CA 95482
Dear Mr. Dow:
Upon the request of the Board of Directors of the Greater Ukiah Chamber of
Commerce, I offer this letter of Ch. amber of Commerce support for the City of
Ukiah's Transportation Enhancement Activities (TEA) grant application. As
proposed, the Ukiah Transportation Corridor Enhancement Project will
beautify and enhance an important area within the Ukiah City limits through
the addition of hundreds of street trees and other landscaping. Currently not
only is this area the County's busiest but also the most aesthetically displeasing
thoroughfare.
If funded, the City's proposal will make immensurable'improvements to the
aesthetics of Ukiah's major transportation corridor, invite increased pedestrian
use, overshadow area limitations, conserve energy, and improve air quality.
The proposed project has been researched, developed and recommended as a
priority need for the Ukiah Valley. In fact, the need for this project has been
documented through several planning guidelines and studies including the
Ukiah General Plan.
The Greater Ukiah Chamber of C6mmerce supports this proposal not only for
the aforementioned benefits but also for the positive affects it will have on one
of our community's largest business districts and for the individual business
owners.
Thank you for your consideration of this worthwhile endeavor.
Sincerely,
Elizabeth R. Brazil/
CEO
lO OF4 Z,
Uki~'b CA 9546~
[707) 463-6720
Uklah Main Street
Board of Directors
August 24th, 1999
Dennis Denny
President
Denny Bicycles
Ed Eversole
Vice President
Eversole Mortuary
Paul Shimmin
Treasurer
Savings Bank of
Mendocino ~ount~
Joy Beeler
Promotions Chair
Carousel Carpets
Beeler's Mufflers
Donna Berry
Cononiah Vineyards
Kenn Cunningham
KNTI Radio
Larry DeKnoblough
City of Ukiah
Dede Ledford
R & D Rentals
Ledford Ranch
Roy Smith
City Council Member
Jason Van Housen
Full Spectrum Pro
Kathy Fowler
Kathy Fowler Chevrolet
Christine 'Dillard
Executive Director
Douna Dooley
Associate Director
Phil Dow :
Executive Director
Mendocino Council of Governments
367 North State Street, Suite 206
Ukiah, CA 95482
Dear Mr' Dow:
Please accept this letter in support of the City of Ukiah's Transportation
Enhancement Activities (TEA) grant application. The Ukiah Transportation
Enhancement Activities Project addresses the desperate need to add hundreds of
street trees and landscaping to Mendocino Counties' busiest and most
aesthetically offensive thoroughfare.
Funding the City's proposal will i.mmeasurably improve the aesthetics of our
major transportation artery, increase pedestrian access,-remove blight, conserve
energy, and improve air quality. The project has been researched, developed,
and recommended as a priority for the Ukiah Valley. This project is imperative,
and is supported by many planning guidelines, studies, and the Ukiah General
Plan. Similar downtown Ukiah projects, though on a much smaller scale, have
been warmly welcomed, and greatly appreciated, by local private and business
sectors.
Your time and consideration of this invaluable endeavor is greatly appreciated.
Sincerely,
Christine Dillard
Executive Director
MENDOCINO COUNTY EMPLOYERS COUNCIL
597-B South Main Street I Ukiah, CA 95482 I Tel (707)462-5021
Fax (707) 462-0318
August 30, 1999
Mr. Phil Dow, Executive Director
Mendocino Council of Governments
367 North State Street, Suite 206
Ukiah CA 95482
Dear Mr :
/
Please accept this letter of support for the City of Ukiah
Transportation Enhancement Activities (TEA) grant application.
As proposed, the Ukiah Transportation Corridor Enhancement
Project will add hundreds of street trees and landscaping to
what is currently the County's busiest and most aesthetically
displeasing thoroughfare.
If fund, the City's proposal will immeasurably improve the
aesthetics of our major transportation corridor, increase
pedestrian access, remove blight, conserve energy, and improve
air quality. The proposed project has also been researched,
developed and recommended as a priority need for the Ukiah
Valley. In fact, the need for this project has been documented
in several planning guidelines and studies, including the Ukiah
General Plan.
Thank you for your consideration of this worthwhile endeavor.
Sincerely,
A1 Beltrami
Executive Director
AB:ph
~cc: Mike Flad
Mendocino Council of Governments
367 North State Street- Suite 206 - Ukiah, CA 95482
Phone (707) 463-1859 - Fax (707) 463-2212
December 9, 1999
Michael Flad
Assistant City Manager
City of Ukiah
300 Seminary Avenue
Ukiah, CA 95482
Dear Mike:
Congratulations on your Transportation Enhancement Activities (TEA) grant. As you know, at
the meeting of December 6, MCOG awarded $221,000 to the Major Transportation Corridor
Enhancement Project, for tree planting and sidewalk improvements in Ukiah.
Please be advised that you should not expend any funds that you want reimbursed from this TEA
grant until your project is included in the Federal State Transportation Improvement Program
(FSTIP). You should contact the Caltrans District 1 Local Assistance Engineer, Jan Bulinski, at
(707) 445-6399, for assistance with initiating this project. Please deal directly with the Local
Assistance office in Eureka.
We are delighted to see this important regional project go forward and wish you best of luck in
your endeavor. Do not hesitate to call any of the staff here at MCOG if we can be of assistance.
Sincerely,
Janet M. Orth
Deputy Director for Administration
enc:
cc.'
cTanA Program Cycle 1 Awards
dace Horsley, Ukiah City Manager
Jan Bulinski, Caltrans District 1
Z ,'-
LLi ~ 'o
:::::) 0 a- ~
IJ.I 0
300 SEMlt~RY AVE., UKIAH, CA 95482-5400
· ADMIN. 707/4.63-6200 · PUBLIC SAFETY 4.63-624.2/6274
· FAX # 707/4-63-6204. · EMAIL: ukiahcty®jps~net ·
February 10, 2000
Phil Dow, Executive Director
Mendocino Council of Governments
367 North State Street, Suite 206
Ukiah, CA 95482
Dear Mr. Dow:
In response to you request for additional information concerning our initial Transportation
Enhancement Activities (TEA) grant application please review the enclosed spreadsheet.
The top portion of the spreadsheet (items 1-7) outlines the original request for funding
submitted on September 1, 1999 as part of the City of Ukiah's Major Transportation
Corridor Enhancement Project application. As you know, these costs have been
recommended for funding by the Mendocino County Organization of Governments.
The second portion of the spreadsheet titled "Tier 1" (items 8-11) outlines the City of
Ukiah's first priority should additional funding become available. Without going into great
detail, the following is a brief description of the need for these items'
8) Trees
9) Water
Since the time of the original application, staff has conducted
additional research concerning the cost of planting street trees
in an urban environment. It is staff's belief that the increased
per unit price better reflects actual costs of the size, type and
amendments necessary for sustainable street trees.
The addition of a "quick connect" water source at various
locations on State St. will greatly reduce watering costs. The
ability to water by hose, instead of purchasing a truck-mounted
water tank will also increase the likelihood of developing a
volunteer watering program.
'~v'e Are Here To Serve"
Phil Dow, Executive Director
Mendocino Council of Governments
February 10, 2000
Page Two
10) Grates
11 ) Gutter
Metal tree well covers or grates provide a variety of
benefits. Well covers increase the area that can be
accessed by pedestrians and eliminate the potential
liability created by the installation of uncovered tree
wells. This is critical in the downtown area and has
been prioritized in Tier 1. The remaining covers for
north and south State Street have been prioritized in
Tier 2. Covers also reduce soil compaction while
allowing water and air to permeate. Covers also
provide a uniform aesthetic quality that is very common
in downtown areas, including the Plaza in Ukiah.
Adding a gutter to the originally proposed vertical curb
for the Main Street portion of the project will assist
drainage and prevent flooding of the landscape areas.
The third portion of the spreadsheet, "Tier 2" (items 12-17) outlines additional items that
staff feels would enhance the project, but are less significant than items 8-11. This second
tier includes pedestrian benches, trash and recycling containers, increases in tree well
diameters, tree well covers for the north and south end of State Street and
decorative/protective tree guards.
Not knowing how much funding may be available, I have attempted to provide you with a
prioritized "menu" of additional project components should various amounts of funding
become available. The total cost of these added enhancements is $295,501, yet individual
components range from $4,325 to $63,000 in price. If you have any questions concerning
the description, prioritization or need for any of these project components, please don't
hesitate to contact me at (707) 463-6269. Thank you again for ali of your assistance with
this project and ! hope your are successful in your quest for additional funding.
Sincerely,
Assistant City Manager
:mf
Enc.
Cost Estimate for Major Transportation Corridor Enhancement Program
CITY OF UKIAH I
Cost Estimate for Major Transportation Corridor Enhancement Program
Alternate One. Additional Enhancement
.Prepared By: Pdc]~ Seanor
item Estimated
No. Item Quantity I Measure Unit Price lotal Price
1 Sawcut Concrete 3,894I. LF $5.00 $19,470.00
2 Remove Concrete 8,658 J SF $4.00 $34,632.00
3 Construct ADA Ramp ----1 E~,' $3,200.00 $3,200.00-
~ SF $7.00 $52,920.00
4 Construct Sidewalk 7,560
5 Construct Vertical Curb 865 ~ LF $20.00 $17,300.00
i E-A $100.00 $31,200100
6 ~;treet Trees I 312
7 Irrigation System i___945 i LF -]- $40.00 $37,800100
-----I ~ ~ Subtotal $196,522.00
.......... i Subtotal, Rounded to Nearest $1000 $197,000.00
.... ~ ............ L___. Contingencies @ 20%1 $39,000.00
I Total Estimate (TEA Funds Requested)i $236,000.00
-- Preliminary Engineering @ 10% i--$20,000.00
, Construction Engineering @ 10% $20,000.00
ier 1, Enhancem~n:t~,~-~-diti~-~-O-~-i~- .............
8 Street Tree (increase unit cost) 312 i EA $75.00q' $23,400.00
9 Water Service w/quick connect 74 t E/~ $300.00 $22,200.00
10 Metal Tree Grates 3 ft. x 3 ft. 100 i EA $275.00 $27,500.00
11 Concrete Curb & Gutter 865 I LF $5.00 $4,325.00
(additional cost instead of vertical curb)t ....
! Subtotal, Tier I $77,425.0~-
Tier 2, Enhancements, Additional Costs ; .....
12 ~ Benches 50 i EA $600.00 $30,000.00
--
._ 13 ...... Trash / Recycle Containers ............... 100 d~ EA $500.00 l $50,000.00
14 Sa_w__cg_t.__C_o__n_c_r__e_t_.e_ ........................... , ...... _1;0_4_.8_ ..... i LF $5.00 i $5,240.00
(additional for 4 ft. x 4 ft. tree boxes)
....... i-F~ ......... R~ m o-~-ig~-~ ~-r:~-t'~-- __--_.-- ~-~- 7~ ......... ~ .......
................ I 1,834 : ..... S-~ ................... -$-4760 $7,336.00
(additional for 4 ft. x 4 ft. tree boxes)
-'- '1'6- Metai'Tr~e Grates-4-ft- X''-4'fi .... ~ '- i 5'0 ............
17 Metal Tree Guards ! 250 EA .__1 $250.00 ] $62,500.00
'I ..................................... i ......... : ............... t Subtot~:l'-~'~2~ $218,076.00
Date/Time Printed: 2/9/00 at 3:07 PM
Filename: TEATransCorrEnhProgAltOne
MENDOCINO COUNCIL OF GOVERNMENTS
STAFF REPORT
Attachment # 13a3
MCOG Meeting
316100
TITLE: TEA PROGRAM STATUS - LAPSING FUNDS
SUBMITTED BY: Phil Dow ~ ~.
DATE: 2/24/00
BACKGROUND/ANALYSIS:
At the last two MCOG meetings we have had discussions regarding my effort to seek lapsing TEA funds
for the Ukiah Major Transportation Corridor Project. These efforts were, in chronological order: (1)
contact State Parks & Recreation to see if the bike &ped. trail (California Coastal Trail) was going to
proceed to construction, (2) contact other agencies to see if lapsing TEA funds were available for
purchase, then (3) appeal directly to the California Transportation Commission (CTC) to use lapsing TEA
fimds available from other counties.
Yesterday, CTC staff reported on their plan to deal with lapsing TEA funds. They are satisfied with the
ability, of the Conservation Lands Program to obligate funds in a relatively short period (2-4 months).
Staff does not want to open up lapsing TEA use statewide due to continued concerns over delivery. But
because they are now convinced that the State Parks project in Mendocino County will not be constructed,
and the regional agency in the home county of statewide projects has the right of first refusal on
ISTEA-era TEA funds, and MCOG asked for additional funds in a timely manner, staff will be
recommending that MCOG be the lone exception to this policy in the state.
As reported at the last MCOG meeting, I had asked Ukiah to "enhance" their enhancement project to their
desired level in case additional funding would become available. This incentive would be to ensure this
project would be advanced along a tight schedule so that lapsing funds could be used and the $221,000 in
TEA-21 era TEA funds programmed in the 2000 RTIP could be used for other purposes. The TEA share
of the "enhanced" project is $503,000 with a local match of $69,000.
State Parks has not yet requested reimbursement for work completed to date, so it is not known how much
may remain for use on the Ukiah project. CTC staff, Local Assistance, and Caltrans TEA staff believe that
enough will remain to fully fund the enhanced Ukiah project.
I have asked Ukiah to proceed with a schedule that would produce plans, specifications, and estimates on
an environmentally cleared project by the first week of April so that I can place an Allocation Request
before the CTC at their June meeting.
ACTION REQUIRED: None.
ALTERNATIVES:
None identified.
RECOMMENDATION:
We may at some point need to amend this expanded project into our RTIP in order to program the
ISTEA-era T~EA fitnds into the SIP. Since this is a last nfinute maneuver, I am not yet sure how CTC
staff wants this to proceed.
5a
ITEM NO.
DATE: September 15, 1999
UKIAH REDEVELOPMENT AGENCY
AGENDA SUMMARY REPORT
SUBJECT: DISCUSSION OF LANDSCAPE IMPROVEMENTS TO PARKING LOT"C' AT MAIN,
SMITH, MASON, AND STANDLEY STREETS
In recent months staff has been working with the Shade Brigade, now formally designated as
Mendocino County Releaf, to provide landscape improvements to Municipal Parking Lot "C". Through
a State Releaf grant, the Shade Brigade has received funding for the purchase of approximately 50
trees and other support items such as stakes, ties, and soil. The organization approached staff
regarding a partnership to utilize this grant as an opportunity to upgrade a municipal parking lot with
badly needed landscape and shading. It was mutually agreed upon to target Lot "C" as a pilot project
and should it be successful, future grants could be utilized to improve the remaining parking facilities
throughout the Downtown.
During budget discussions for FY 99/00, the Agency designated $50,000 for streetscape
improvements with a focus on State and School Streets. At that time the Agency also indicated
support for improvements to the public parking lots. Staff is presenting this item to the Agency at this
time to provide an update as to the expanding scope of the project and receive direction from the
Agency regarding future commitments of staff time and funds to the project.
(Continued on Page 2)
RECOMMENDED ACTION' After discussion of landscape improvements provide direction to staff
regarding future Agency commitments.
ALTERNATIVE AGENCY POLICY ACTION: N/A
Citizen Advised:
Requested by:
Prepared by:
Coordinated with:
N/A
Mendocino County Releaf
Larry DeKnoblough, Assistant Redevelopment Director
Candace Horsley, Executive Director
Michael Flad, Assistant City Manager
LD4 Ca'ace Horsley,-E~xe~utive
LOTC.ASR
Director
Title: Lot "C" Landscaping
Date: September 15, 1999
Page 2
VVhile the focus of the current project has been limited to the planting of trees acquired through the
grant, additional improvements have been proposed by the Shade Brigade. Those improvements
include landscaping and replacement of sidewalks around the perimeter, addition of pedestrian walks
through the interior of the lot to increase pedestrian safety, and landscaping of the expansion area
on the corner of Main and Smith Streets to create a small pocket park. A second small pocket park
has also been proposed for the southwest corner near the library. Due to the extent of the landscape
installation, the parking will need to be reconfigured and ten additional stalls will be included in the
expansion area. Once completed the total number of spaces will increase from 115 to 125. A
conceptual plan of the improvements has been provided by Richard Ruff, Architect and will be
presented at the meeting.
Should the full scope of improvements recommended by the Shade Brigade be included in the final
project, the cost could easily exceed $200,000. Due to the extent of these costs staff is proposing
funding be a combination of Redevelopment funds and grants as they are available. As approved by
the Council at the August 18, 1998 meeting City has included the perimeter improvements of this
project in its recent Transportation Enhancement Act (TEA) grant, that if approved would be adequate
to complete the majority of perimeter improvements. Should the grant not be approved, staff will
return the plan to the Agency for discussion regarding reducing the scope of the project and related
costs.
The first phase of the project, which includes planting the trees provided for in the Releaf grant, is
scheduled for Saturday, October 16 and will include volunteers from both the Mendocino County and
Sonoma County Releaf programs as well as City staff. Should the Agency wish to proceed beyond
this first phase staff will have a detailed improvement plan and cost estimates prepared for future
Agency approval.
Title: Lot "C" Landscaping
Date: September 15, 1999
Page 2
While the focus of the current project has been limited to the planting of trees acquired through the
grant, additional improvements have been proposed by the Shade Brigade. Those improvements
include landscaping and replacement of sidewalks around the perimeter, addition of pedestrian walks
through the interior of the lot to increase pedestrian safety, and landscaping of the expansion area
on the corner of Main and Smith Streets to create a small pocket park. A second small pocket park
has also been proposed for the southwest corner near the library. Due to the extent of the landscape
installation, the parking will need to be reconfigured and ten additional stalls will be included in the
expansion area. Once completed the total number of spaces will increase from 115 to 125. A
conceptual plan of the improvements has been provided by Richard Ruff, Architect and will be
presented at the meeting.
Should the full scope of improvements recommended by the Shade Brigade be included in the final
project, the cost could easily exceed $200,000. Due to the extent of these costs staff is proposing
funding be a combination of Redevelopment funds and grants as they are available. As approved by
the Council at the August 18, 1998 meeting City has included the perimeter improvements of this
project in its recent Transportation Enhancement Act (TEA) grant, that if approved would be adequate
to complete the majority of perimeter improvements. Should the grant not be approved, staff will
return the plan to the Agency for discussion regarding reducing the scope of the project and related
costs.
The first phase of the project, which includes planting the trees provided for in the Releaf grant, is
scheduled for Saturday, October 16 and will include volunteers from both the Mendocino County and
Sonoma County Releaf programs as well as City staff. Should the Agency wish to proceed beyond
this first phase staff will have a detailed improvement plan and cost estimates prepared for future
Agency approval.
AGENDA
SUMMARY
8f
ITEM NO.
DATE' April 5. 2000
REPORT
SUBJECT'
APPROVAL OF LETTERS OF OPPOSITION TO THE FEDERAL
EMERGENCY MANAGEMENT AGENCY PUBLIC ASSISTANCE
INSURANCE PROPOSAL
The Federal Emergency Management Agency (FEMA) has recently published an Advance
Notice of Proposed Rulemaking, which will have a significant impact, especially on
California governmental agencies. FEMA has proposed new insurance rules as a method
to reduce the federal expenditure of disaster funds; the target being publicly-owned
buildings. Some non-profit organizations, such as hospitals, are also included.
Under the proposed rules, FEMA would require that every public building be insured for all
hazards before a disaster. If an agency carries insurance on a building but it is destroyed
or damaged by a hazard that has not been included under that insurance policy, then
FEMA will not provide any public assistance funds for its repair or replacement. The rules
are both vague and confusing. They do not define what needs to be insured and on what
basis. Essentially, if an entity guesses wrong on what are potential disasters, it is out of
luck for any assistance. For most states that insure against flood and tornado losses,
paying the astronomical prices for earthquake insurance is not a factor. However, if
another earthquake hits a state like Missouri and it does not have earthquake insurance, it
would receive no relief from FEMA.
(Continued on Page 2)
RECOMMENDED ACTION: Council approve preparation of letters of opposition to Federal
Emergency Management Agency Public Assistance Insurance Proposal
ALTERNATIVE COUNCIL POLICY OPTIONS'
1. Council determine letters of opposition are not required for one or more selected
agencies.
Citizen Advised:
Requested by:
Prepared by'
Attachments'
N/A
Candace Horsley, City Manager
Candace Horsley, City Manager
1. OES Summary
2. Letter from Rick Paige of MESA
APPROVED'~~;,
Candace Horsley, City, Manager
4/Sec. ASRFEMA.400
Currently, California is most concerned about these proposed rules. Enclosed is a
document from the Governor's Office of Emergency Services (OES) which comments on
the proposed FEMA insurance rules. OES points out that though insurance for floods and
windstorms are commonly available, there is a dearth of options for earthquake insurance.
For most entities that are able to purchase such insurance, the cost is so prohibitive that
many agencies cannot afford it. "Insurance industry losses were so great following the
Loma Prieta and Northridge earthquakes that the state had to create a publicly financed
reinsurance program to support the private market. No such support exists for the oublic
building earthquake insurance market."
The Redwood Empire Municipal Insurance Fund (REMIF) has informed its pooled cities that
if we were able to purchase increased coverage for earthquake insurance, it would cost a
minimum additional premium of 60% over what we are paying now, and this would only
cover about half of our asset values. The brokers, both nationally and internationally,
question whether REMIF could receive sufficient coverage for such a small JPA and if it
could, the cost would greatly exceed the proposed dollar limits under the FEMA rules. In
addition, whenever there is a natural disaster like an earthquake, the insurance community
immediately ceases writing coverage for a period of anywhere from three months to a year.
After the Loma Prieta earthquake, it was six months before earthquake and flood insurance
became available, and at a much higher cost and deductible. The 15 cities that make up
REMIF are comprised of about 192,000 citizens. The cities are currently spending $.52 per
citizen, per year for general property coverage and $1.15 per year for the additional
coverage for flood and earthquake. If we were required to go with the coverage levels
recommended by FEMA, we would be taxing each citizen an additional $3.67 for the
additional coverage alone.
Also enclosed for the Council's review is a memorandum from Rick Paige, General
Manager for Mendocino Emergency Services Authority (MESA), which provides additional
information on this issue. Staff is requesting Council's approval to write letters to OES and
FEMA, and participate in a letter being sent from REMIF in opposition to this new FEMA
proposal. These rules could result in the taxpayers of California being without assistance to
rebuild needed infrastructure in the event of a major disaster.
S
C ~ L IF 0 lIN I~
OES COMMENTS ON
PROPOSED FEMA INSURANCE RULE
March 8, 2000
Prepared by:
D.A. CHRISTIAN
OES PUBLIC ASSISTANCE OFFICER
OES COMMENTS ON
PROPOSED FEMA INSURANCE RULE
March 8, 2000
CONTENTS
I,
II.
III.
IV.
V.
VI.
VII.
Introduction
Background
General Observations
Specific OES Concerns
State of California Position
State Contact Information
Federal Contact Information
1
1
2
4
9
9
10
I. INTRODUCTION
The Governor's Office of Emergency Services (OES) has reviewed the Advance Notice of Proposed
Rulemaking (ANPR), recently published in the Federal Register by the Federal Emergency
Management Agency (FEMA). OES is providing its observations and comments in this
document to stimulate discussion on the possible impact of this proposed rule, and to encourage
all interested parties to comment on the rule before April 10, 2000. All contact information is
provided in part VII of this document.
Please note that OES is working with the Department of General Services Office of Insurance
and Risk Management, the Department of Finance, and other state and local agencies to
consider the full range of impacts this rule could pose to the citizens of California. The State of
California is not opposed to reasonable and well-planned efforts to increase the role of private
insurance as one method of recovering from future disasters. The Governor, the California
Congressional delegation, and other state and local interests have consistently opposed any
effort to change insurance requirements before the full range of impact is known.
Since this is the latest in a series of efforts by FEMA to develop a new insurance rule, we have
provided some background information (below) to help you understand the context of this latest
iteration. We have also provided some general observations and specific concerns about
provisions of current and previous insurance proposals. These observations and concerns are not
comprehensive. We encourage everyone to consider the proposed rule from theft own
perspective, and to comment favorably or unfavorably to FEMA. By announcing the ANPR,
FEMA is not only soliciting comments on the existing proposal, but is encouraging state and
local governments to broaden the debate by providing new or alternative ways to meet the
overall objective of increasing governmental reliance on insurance. Your comments will be more
effective if they are specific and to the extent possible, supported by data.
II. BACKGROUND
For more than a year, FEMA has been working on a revision to Title 44 of the Code of Federal
Regulations, Section 206, Subpart I. The General Accounting Office (GAO) summarizes FEMA's
effort as a proposal "...that funding under the Public Assistance Program for buildings damaged
in a disaster be limited to those state and local agencies and other public entities that maintain
specified minimum levels of insurance coverage." The GAO goes on to say that "According to
FEMA, the draft rule is intended to remove a disincentive under current rules for such entities to
both carry insurance and manage their risk of disasters. The [GAO] notes that FEMA's draft
rule could have significant financial implications for states, municipahties, and private nonprofit
hospitals and universities.''~
~GAO Report to Congressional Committees, Disaster Assistance, Issues Related to the
Development of FEMA's Insurance Requirements, February, 2000.
The Office of Management and Budget (OMB) plays a pivotal role in the federal rulemaking
process. Federal agencies must submit a proposed rule to OMB for approval before publication
in the Federal Register for comment. A rule may become law only after completing this process.
FEMA was well on the way to completing this process when key interests objected that FEMA
had not conducted the required cost/benefit analysis, nor had FEMA prepared a comprehensive
analysis of other alternatives. The ANPR is intended to fulfill the requirement to consider other
alternatives, and it will also give FEMA sufficient time to conduct the required cost/benefit
analysis.
Please note that FEMA has already indicated its preferences in the previous draft rule. OES
recommends therefore, that you review OES' comments to the previous draft rule on OES' web
site before commenting on the ANPR.
III. GENERAL OBSERVATIONS
1. While FEMA maintains that it is fulfilling the intent of Congress to "encourage"
the utilization of private insurance, the proposed rule is punitive and relies too
heavily on insurance as the only method to protect public buildings. FEMA has
ignored the possibility of providing a true incentive to state and local agencies that
insure, or take other important steps to protect public buildings.
The Stafford Act (Public Law 93-288, as amended by P.L. 100-707, Section 101 (b)) states
that it is the intent of Congress to encourage "States and local governments to protect
themselves by obtaining insurance coverage to supplement or replace governmental
assistance." FEMA, however, has apparently ignored the option of supplementing
assistance, in favor of replacing governmental assistance. Furthermore, Executive Order
12866 requires FEMA to consider other alternatives before imposing a rule that will have
a major financial impact upon state and local government. The three options considered
by FEMA (i.e., do nothing, deny federal ehgibihty for all buildings irrespective of
insurance, and impose mandatory insurance requirements as a precondition of federal
assistance) are obviously intended to demonstrate that FEMA has fulfilled this
requirement. Yet FEMA has failed to consider'the most effective and least onerous option:
to develop a program that provides financial incentives to entities that maximize
insurance or take other appropriate actions to protect public buildings. Rather, FEMA
has opted for the punitive "one insurance requirement fits all" approach. Admittedly,
developing an effective incentive program will take more thought and effort. It is also
likely that the Stafford Act would have to be amended to grant the President flexibility to
vary the level of federal assistance to state and local agencies (currently the Stafford Act
states that federal assistance will be not less than 75 percent). Nevertheless, OES
believes that a fair and effective incentive program could be developed over time, if FEMA
just had the will to work with Congress, state and local government to do so.
2. FEMA is being pushed toward implementing new insurance rules as a method to
reduce the federal expenditure of disaster funds. To the extent that the fiscal bottom-
line is driving the process, that is Unfair.
The increase in cost associated with federal disasters over the past two decades is, to a
great degree, because of an extraordinary spate of enormous federal disasters: Hurricanes
Hugo, Andrew and Iniki, the Mid-West Floods, the Loma Prieta and Northridge
Earthquakes, and a series of lesser disasters have all driven up the cost of disasters.
Pressure by Congress to reduce disaster expenditures therefore begs the question as to
who will pay the cost of disaster recovery. Critical public infrastructure must be
repaired quickly after a disaster in order to provide orderly governmental services,
maintain public safety, and to facilitate general economic recovery and stability. If the
desire to reduce federal disaster expenditures is a fundamental goal, then we must remind
our federal officials about the consequences to public safety and economic recovery at the
local level. Furthermore, as the federal government shifts a greater responsibility for
disaster recovery to state and local governments, we must develop and implement
programs to assure public safety and economic recovery in future disasters, whatever the
level of federal support.
3. While the FEMA insurance proposal purports to be fair since it applies to all
potential threats, in truth the proposed FEMA insurance rule disproportionately
impacts earthquake prone states.
Insurance for floods and windstorms is commonly available, and there is a vibrant private
market for this type of coverage. One reason that this market exists is that the frequency
of floods and windstorms is statistically predictable. Another reason is that most disaster
mechanisms - not even powerful hurricanes - commonly destroy multi-story buildings.
The private insurance market can therefore predict the rate of claims and level of
financial liability. This permits them to calculate a rate schedule, which assures
profitability. Earthquakes, on the other hand, are manifestly unpredictable, even in areas
known to be seismically active. Furthermore, earthquakes can and do destroy multi-story
buildings outright, and destroy their structural integrity in ways that were unknown
when many large buildings were originally constructed. Thus, the very nature of the
earthquake threat assures that the costs will be greater, and the hkehhood of ever
actually needing the insurance is, at best, unpredictable. California's experience with
recent earthquakes is that the private insurance market has a difficult time sustaining
meaningful coverage. Insurance industry losses were so great following the Loma Prieta
and Northridge earthquakes, that the state had to create a publicly financed reinsurance
program to support the private market. No such support exists for the public building
earthquake insurance market.
4. No one, including FEMA, knows whether the private earthquake insurance
market has sufficient capacity to provide "meaningful" coverage for all public
buildings. Furthermore, the effect of all public agencies accessing the private
earthquake insurance market at the same time is unknown.
FEMA has made a point in earlier versions of the insurance rule, of requiring applicants
to seek insurance in both the domestic and international insurance markets. These
markets can surely provide some level of coverage at a price, but less certain is whether
these markets will be able to fulfill its commitment in the event of a major earthquake, or
perhaps a series of earthquakes.
5. The proposed FEMA rule represents a major policy change in federal public
assistance, transferring the cost of disaster recovery from the federal government to
state and local government, not to the private insurance market as suggested.
The fundamental intent of the Stafford Act was to assist state and local governments that
are overwhelmed by major disasters. The very nature of a major disaster is that state and
local governmental functions are disrupted, to the extent that it is beyond our capability to
respond. State and local government obviously cannot function without buildings, and the
withdrawal of federal disaster funding for the repair of pohce buildings, fire stations,
hospitals, universities, social service agencies and general government will have a direct
and adverse impact on public safety and the quality of life after a disaster. Providing
disaster assistance for the repair of such buildings is an appropriate role for the federal
government. FEMA suggests that they are merely transferring some of the responsibility
for the repair of buildings to the private insurance market, and to some extent they are
correct. State and local governments will, however, pay for disaster damages over the
long term by increasing insurance coverage costs as the private insurance market seeks to
recover disbursements. This presupposes, of course, that the private insurance market
has the capacity to sustain personal, residential, business and governmental losses in a
truly major disaster.
IV. SPECIFIC OES CONCERNS
1. Having once proposed an insurance rule with specific provisions, FEMA has
reverted to the less formal ANPR. Should the reader, therefore ignore past proposals
and comments strictly on the ANPR, or should our comments reflect the full scope of
FEMA insurance proposals, past and present?
OES discussed this concern with FEMA. FEMA acknowledged that they have taken the
unusual step of publishing an ANPR after having proposed a specific rule. They therefore
expect that the reader may wish to comment on the past proposal within the context of the
ANPR. OES recommends that you carefully consider OES' comments to the first version
of the FEMA insurance rule before commenting on the ANPR. It is unknown at this time
what portions of the original prbposal, if any, will be resurrected in a final rule.
2. FEMA states in (I) Background, page 2, second paragraph that "our [FEMA's]
information up to this point is that, with a few exceptions, insurance is available for
buildings." What is the basis for this claim?
OES discussed this concern with FEMA. FEMA stated that their impression that
insurance is available for buildings was based upon informal discussions with national
risk managers associations and with state insurance commissioners. Beginning with
FEMA's first insurance proposal, OES strongly protested that any insurance requirement
should be imposed after a national study was conducted to determine whether the private
insurance market had the capacity to absorb the risk for public buildings (particularly
with regard to earthquakes), what the fiscal impact of such requirements would be on
state and local government, and whether the proposed insurance requirement would
adversely impact public safety. Congress and the GAO reiterated this requirement.
Nevertheless, FEMA seems to have ignored this step on the basis of informal discussions
with certain individuals and organizations. We urge all parties to mention this issue in
their comments to FEMA, and request that FEMA impanel a group of national experts in
governmental insurance, the private insurance market, and pubhc safety to be sure that
the proposed rule is fair, reasonable, cost effective, and improves pubhc safety.
3. When FEMA first proposed an insurance rule more than a year ago, OES
expressed concern that FEMA was requiring state and local governments to obtain
and maintain insurance for all possible hazards, no matter how small the threat. This
requirement is retained in the current proposal.
OES strongly beheves that scarce state and local resources should be used to insure
against credible threats. It seems wasteful to require insurance for a threat that exists
only in theory (such as earthquakes in the Central Valley of California), or where the
statistical probability of the threat occurring in any year is very low (such as a hurricane
in San Diego). Yet under the FEMA proposal, state and local government will be forced to
insure against low probability events in order to maintain their federal ehgibility for
future disasters.
4. By establishing mandatory thresholds, FEMA is giving a competitive advantage
to the insurance companies.
State risk managers have expressed concern that FEMA's rule will harden the insurance
market. Private insurers will know in advance what level of coverage is required for a
public building, limits on deductibles the state or local agency will be seeking, and the
maximum cost for all insurance (30~ per hundred dollars of coverage). This advance
knowledge will permit the private insurer to offer coverage that maximizes profitability
and minimizes risk (for the insurer). This will reduce state and local flexibility to
purchase the most advantageous insurance given local conditions.
5. The proposed FEMA rule does nothing to acknowledge or encourage non-
insurance methods of reducing risk from disasters.
FEMA should be commended for its substantial efforts over the past few years to increase
attention on pre-disaster mitigation. The punitive "one insurance requirement fits all"
approach, however, does nothing to acknowledge state and local efforts to increase
building codes, manage growth to redirect development away from high hazard areas,
implement specific hazard mitigation efforts, or any other activity which would reduce the
need for federal disaster assistance. Under the proposed rule, state and local government
may be forced to redirect funds from mitigation and planning, to fund federally mandated
insurance requirements. This reduces state and local flexibility, and may ultimately
increase reliance on federal disaster assistance.
6. The proposed rule will slow down the delivery of vital recovery aid and increase
administrative costs as FEMA inspectors individually analyze each building's
insurance policy before approving federal assistance. This will directly impact public
safety.
Unfortunately, FEMA is prone to over-bureaucratization of federal disaster programs, and
the proposed insurance rule plays into this predilection. Under the proposed rule,
whenever a state or local building is damaged in a future disaster, FEMA will insist upon
analyzing the provisions of each individual insurance policy before granting federal
assistance. As discussed earlier, this will have a negative impact on public safety as the
repair or reconstruction of police, fire, school and hospital buildings are delayed by FEMA.
Under existing insurance rules, FEMA has a history of improperly interpreting insurance
policies and coverage, and dictating how insurance proceeds will be used (i.e., FEMA
always insists that insurance funds be used for the federally eligible work first, almost
irrespective of policy provisions). Our experience is that FEMA inspectors already
determine maximum coverage hmits, and set federal eligibility beyond that point. This
does not address the fact that the actual payout is typically less than coverage limits.
FEMA's unrealistic position is that the applicant should not settle for less than maximum
coverage limits, and if it does, it's at their own expense. FEMA also determines for itself
what the insurance proceeds should be used for, and typically requires that the applicant
use insurance proceeds for the federally eligible scope of work first. These existing
practices are contrary to effective administration, and do nothing to increase public safety.
OES is concerned that the ANPR does nothing to address this problem.
7. The proposed rule will result in numerous programmatic appeals, again
increasing administrative costs and slowing the delivery of vital federal assistance.
OES' experience is that Public Assistance applicants rely heavily on the administrative
appeal process when they believe FEMA has over-stepped its bounds, or acted arbitrarily.
The administrative appeal process is slow, costly, and largely ineffective. It is however, an
applicant's only mechanism to register a formal complaint with FEMA, and it is a
mandatory precondition of pursuing rehef in the federal courts. Based on past experience,
OES expects appeals to increase greatly after the next earthquake should the current
insurance rule be imposed.
8. Previous versions of the FEMA insurance rule unreasonably limited the ability
of the state insurance commissioner to grant a waiver for the FEMA insurance
requirements. The ANPR does not address this issue.
The "safety valve" for any insurance rule is the authority of the state insurance
commissioner (IC) to grant a waiver. Existing regulations admittedly grant the IC
unrestricted authority to grant waivers. The mandate is overly broad, and we
acknowledge that FEMA should provide additional guidance concerning when a waiver
may or may not be granted. In earlier versions of the rule however, FEMA went from zero
guidance to an incredibly restrictive rule. In effect, IC's would have been required to
grant waivers before a disaster (there were no provisions for post-disaster waivers), on a
building-by-building basis (there was no provision for waivers by jurisdiction, by proximity
to an earthquake fault, by type of building, etc.), annually (no provision for multi-year
waivers), and when the cost of insurance exceeded a prescribed threshold as demonstrated
by three formal bids (verbal or written indications that an insurance company was not
interested in even bidding were not acceptable). In California, these requirements would
have had the effect of making earthquake insurance waivers impossible to obtain. FEMA
has reported that the need for IC waivers will be greatly reduced under the current
proposal, because every jurisdiction would be required to have insurance up to the 30~ per
$100 threshold, and would have an automatic waiver above that. OES believes that this
does not adequately provide the needed safety valve.
9. Previous versions of the FEMA insurance rule did not adequately address the
issue of self-insurance and joint risk authorities. The ANPR does not address this
issue.
FEMA previously held that any self-insurance program must be supported by a non-
discretionary self-insurance fund. This was a problem for the State of California, where
state agencies do not have a dedicated self-insurance fund. In effect therefore, the State of
California uses its "full faith and credit" to provide self-insurance. We argued therefore,
that FEMA ought to make a predefined deductible ineligible, and then fund building
repairs above that level. We noted, without effect, that the federal government uses its
"full faith and credit" to insure itself under most circumstances and the states should not
be held to a higher standard. OES also remains concerned that past and current
insurance proposals do not adequately address the wide diversity of joint power
authorities and other shared risk mechanisms. Our concerns still exist, even though
FEMA has accounted for a "blanket policy." OES still believes that this provision will not
cover the diversity of insurance programs.
10. Previous versions of the FEMA insurance rule did not adequately address the
issue of historic building restoration and the acknowledgement of state and local
building codes. FEMA has failed in its support of these issues in the existing Public
Assistance program, and the ANPR does not address this issue.
Under current regulations, FEMA fails to adequately fund the restoration of historic
buildings, and it fails to recognize the legitimate authority of state and local building
codes and officials, even though the federal regulations states that it must fund code
upgrades. OES is aware that some applicants have made over-reaching claims for historic
restoration and code upgrades, but this does not reheve FEMA of the responsibility to fund
code required upgrades. FEMA takes the position that a local building code may apply,
and even be necessary to obtain a certificate of occupancy, yet FEMA is only responsible
for funding repairs to the pre-disaster condition of the building. This is incomprehensible
in hght of FEMA's commitment to hazard mitigation. OES is concerned that these
problems will be exacerbated as applicants are caught between insurance companies that
want to hmit financial exposure, FEMA denies the eligibihty of mandatory code upgrades,
and state and local building officials who refuse to grant occupancy without those
upgrades. Whether this insurance proposal succeeds or not, FEMA should be encouraged
to comply with existing regulations.
V. STATE OF CALIFORNIA POSITION:
The Governor's Office of Emergency Services opposes the proposed rule, because:
· It is too bureaucratic, and will increase administrative costs, and slow the delivery of vital
disaster assistance.
· It fails to adequately address uncertainty in the commercial earthquake insurance market.
FEMA has not established that the commercial earthquake market can absorb the risk of
insuring all public buildings or what will happen to world insurance markets as all state and
local agencies seek identical earthquake insurance at the same time.
· Utilizes a punitive approach which may unintentionally impact pubhc safety as police and
fire buildings, schools and hospitals go unrepaired or have repair delayed by this rule.
The Governor's Office of Emergency Services recommends that all interested parties support an
alternative that would reward state and local entities that protect themselves through a variety
of mechanisms, including insurance, hazard mitigation, implementation of threat specific
building codes, emergency preparedness, or other methods to reduce the cost of disasters and
improve public safety.
VI. STATE CONTACT INFORMATION
Comments submitted to OES will be summarized periodically and posted on the OES web site
(http://www.oes.ca.gov) for your information. Please send your comments to OES using the
following:
Preferred by e-mail to: fema_insurance_comments@oes.ca.gov
Or, by facsimile to: (916) 464-2194
Or, by mail to:
ATTENTION: FEMA RULE
D.A. Christian
Public Assistance Officer
Governor's Office of Emergency Services
P.O. Box 419023
Rancho Cordova, CA 95741-9023
. VII. FEDERAL CONTACT INFORMATION
Official comments regarding FEMA's published ANPR are due by April 10, 2000. Please provide
your comments to:
Rules Docket Clerk
Office of the General Counsel
Federal Emergency Management Agency
500 C Street, SW., Room 840
Washington, DC 20472
Or, by facsimile to: (202) 646-4536
Or, by e-mail to: rules@fema.gov
Other federal contacts for this proposal are listed below:
James L. Witt, Director
Federal Emergency Management Agency
The Honorable Christopher S. Bond, Chairman
The Honorable Barbara Mikulski, Ranking Minority Member
Subcommittee on VA, HUD, and Independent Agencies
Committee on Appropriations
United States Senate
The Honorable James T. Walsh, Chairman
The Honorable Alan Mollohan, Ranking Minority Member
Subcommittee on VA, HUD, and Independent Agencies
Committee on Appropriations
House of Representatives
10
STATE OF CALIFORNIA
GOVERNOR'S OFFICE OF EMERGENCY SERVICES
Disaster Assistance Program Branch. Public Assistance Section
Post Office Box 419023
Rancho Cordova. CA 95741-9023
Phone: (916)464-1013. Fax: (916) 464-1038
May 15, 1999
Mr. Curtis Carleton
Community Services Branch Chief
Federal Emergency Management Agency
Washington, D.C. 20472
Dear Mr?C'~leton:
GRAY DAVIS, Governor
SUBJECT: PROPOSED FEMA REGULATION CHANGE - INSURANCE
This letter is in response to the re-draft of the proposed insurance regulations which
was recently sent to me for final comment. While I sincerely appreciate having been
invited to Washington to review the first draft, I am disappointed that the Federal
Emergency Management Agency (FEMA) has not made more of the modifications
recommended by California and the review committee. Before proceeding with my final
comments about the re-draft, let me summarize why the Governor's Office of Emergency
Services (OES) is opposed to this regulation:
1. The regulation is being rushed to completion for artificial reasons, and neither
FEMA nor Public Assistance applicants can determine what the exact impact will
be on state and local budgets; the insurance industry's ability to provide the type
of coverage mandated, and more importantly, to. pay claims in a major disaster;
and public safety if some essential public facilities, such as major hospitals go
unrepaired after a major disaster.
2. The regulation does not relate to the realities of the commercial insurance market.
In addition to questions about the insurance industry's capacity to provide such
insurance, the "all hazard" approach requires insurance for every conceivable
threat, regardless of the likelihood of the threat in the area. Since there is no such
thing as an "all hazard" policy, each jurisdiction will have to carry multiple
policies for each building - earthquake, fire, flood, windstorm, etc. There is no
provision for federal eligibility when insurance carriers go bankrupt, or offer low
settlements instead of full coverage, forcing the jurisdiction to wage an extended
legal battle without the benefit of any federal funding.
3. The regulation will greatly slow the delivery of eligible public assistance funding
due to an unprecedented layer of federal review imposed to determine whether the
applicant is in compliance with the insurance regulations. This will, contrary to
Senator Bond's concern, increase the cost of administering the federal disaster
program at all levels.
4. The regulation transfers total disaster responsibility from the federal Public
Assistance program to the local jurisdiction and insurer, once any federal funds
are expended to repair a building, regardless the amount of federal funding in
comparison to the value of the building. In other words, a $10 million building
which receives the $1,000 federal minimum, would be required to have 100%
replacement insurance for the building and contents - for all disasters - in
perpetuity. Thus, once funded it is off the federal disaster rolls forever.
5. The definition of"self-insurance" eliminates the eligibility of self-insurance
programs with discretionary funding, and requires FEMA approval of a "self-
tnsurance plan." It should be noted that FEMA will be holding the State of
Insurance Regulations
May 15. 1999
Page Two
.
.
California to a higher standard than the federal government must have, since both
rely on their full faith and credit to back self-insurance programs.
The stipulation of thresholds for the eligibility of deductibles will limit local
flexibility in obtaining insurance, thus driving up the cost. Moreover, these
thresholds are not based on any valid statistical basis, as far as I can determine
from FEMA staff comments, but are intended only to reduce federal Public
Assistance expenditures. Finally, with blanket insurance policies in major
jurisdictions with billions of dollars in total insured value, the deductible limit
may eliminate federal eligibility for localized but catastrophic losses, because they
do not exceed the FEMA threshold.
The provisions concerning the State Insurance Commissioner waiver are
completely unworkable in California, since the State Insurance Commissioner
will never be able to process waivers that must be: in place prior to the disaster;
on a.b.uilding-by-building basis; based on exceeding the one percent cost
prov~sxon (which is itself too onerous) and confirmed by three formal bids. It is
worth noting that those jurisdictions that obtain or fund insurance annually will
have to request annual waivers from the Commissioner. Finally, there is no
provision for post-disaster waivers under extenuating circumstances.
Our objections having been established, let me again recommend specific changes
to the proposed FEMA insurance regulation, in the order presented in your latest draft:
1. Condition future PA grants for buildings on adequate insurance coverage.
The provision which states "Insurance coverage may be provided under the 5
percent or the $150 million ceiling where the applicant can demonstrate that the
maximum insurance package available and affordable was less than that amount."
is hopelessly vague, is redundant to paragraph "c" in this section, is in direct
conflict with the Insurance Commissioner waiver provisions in section six, and
gives neither FEMA nor the applicant any guidance as to what constitutes a valid
basis to ask for, or receive such a waiver. This will become a highly ad hoc, and
therefore political and unfair process. As an alternative, OES requests that FEMA
delete this provision from section one, and strengthen the authority of the State
Insurance Commissioner to grant pre and post disaster waivers. See section six
comments for further information.
Grant federal PA eligibility based on reasonable settlements, even if the insurance
settlement is below the required threshold, with the stipulation that the applicant
reimburse FEMA for any additional insurance proceeds that may be obtained
through post-disaster lawsuits. Also, PA applicants should remain eligible for
federal PA funding if their insurer goes bankrupt.
2. Post-disaster: Require adequate insurance coverage as a condition of PA funding.
The requirements of paragraph "a" are much too onerous. It basically stipulates
that once a building receives any federal PA funding, regardless of how small
those federal thnds may be in comparison to the actual value of the building, the
applicant must obtain f00% insurance for replacement and contents in perpetuity.
Insurance Regulations
May 15, 1999
Page Three
This is decidedly unfair in a circumstance where an applicant may receive a
minimal $1,000 DSR for a $10 million building. Additionally, it does not
conform well to blanket policies, since an applicant will be faced with the choice
of increasing the blanket policy to 100% coverage (impractical due to cost), or
eliminating the federally funded building from the blanket policy and obtaining a
separate policy (impractical due to cost and administrative concerns). Rather than
enact this provision, OES requests that FEMA consider retaining the current
regulation which requires only that the applicant obtain and maintain insurance to
cover the amount and type of federal PA funding received. If so, FEMA should
strictly enforce this requirement.
Eliminate all provisions which require insurance for building contents and
equipment. Most subgrantees have indicated this is impractical due to the high
cost of identifying the exact dollar value of contents and machinery. Therefore,
most large entities will never be able to fully comply with this requirement,
leading to extensive appeals in future disasters.
3. Specify the amount of PA funding for deductibles.
· OES believes the that any limitation on the eligibility of deductibles should be
based on a valid statistical analysis to determine the appropriate threshold, which
will neither harden the insurance market, nor improperly burden applicants for PA
funding. OES therefore requests that FEMA replace this specific requirement
with language that allows FEMA to impose deductible limits by region and
disaster type, based on the recommendation of a national panel of experts in both
insurance and emergency management. This panel should take time to carefully
consider the appropriate threshold before publishing them in the Federal Register,
and should revisit the threshold periodically, such as every three years.
· As an alternative, we recommend that FEMA include a provision whereby higher
percentages could be funded, if the applicant can justify federal eligibility of the
higher deductible, based on financial need, or in the net interest of the public. For
example, there may be circumstances where an applicant will be forced to ask for
an Insurance Commissioner waiver based on the overall cost, instead of obtaining
some insurance with a higher deductible, and a lower cost. Failure to address this
scenario would inadvertently force applicants to rely on federal PA funding rather
than some level of insurance.
· FEMA must develop some provisions for risk pools, where the "deductible" may
be spread over a number of applicants. Under such circumstances, each
subgrantee should not be held to an individual deductible, if the insurance pool as
a whole has met the requirement.
4. Define insurance for the purposes of PA program funding.
OES objects to the requirement that insurance consist ora non-discretionary fund.
With respect to self-insurance programs, the applicant should be allowed to have a
discretionary self- insurance program. Please see additional comments under
section five. OES has no objection to the other elements of the proposed
definition.
Insurance Regulations
May 15, 1999
Page Four
C:
5. Clarify the self-insurance option.
The realities of current budgetary reality at the state and local level makes it
difficult to justify a non-discretionary self-insurance fund. The State of California
for example, backs disaster losses with the full faith and credit of the State, and
losses not paid for by the federal PA program are borne by the individual
department budgets. It is understood, however, that it is unfair to claim that the
State is self-insured, and then to ask FEMA to fund disaster losses with the first
dollar. If self-insurance is claimed, there should be some reasonable threshold for
an automatic deductible, based on the size of the jurisdiction. While we believe
FEMA should take whatever time is needed to work with state and local self-
insurers to determine what the appropriate threshold should be based on the size
of the jurisdiction, as a minimum alternative, OES would ask the thresholds in
section one be utilized. Where each department is individually self-insm'ed, as
with the State of California, the deductible should be applied to each department.
Therefore, in a future disaster, each department would have a 5Vd$150 million,
whichever is less, self-insurance deductible. This would also eliminate the need
for FEMA pre-approval of the self-insurance program, a provision which OES
views as an ~mproper federal interference with state and local government.
6. Establish certification guidance and criteria for the insurance commissioners.
OES objects to this entire section as completely unworkable in the State of
California. If passed as drafted, it will mean tlmt virtually no waivers will be
granted in California because the State Insurance Commissioner lacks the staff
resources to process waivers. Therefore, I refer you to my earlier
recommendation, which provided for the following:
Provisions for waivers based on building-by-building, or by jurisdiction,
geographic area, or type of building.
Waivers for up to five years.
Provisions for post-disaster waivers when justified.
Waivers based on informal bids or other mechanisms that are reasonable.
I also request that you look carefully at the cost threshold of one percent of the total
insurable value. I remind you that I proposed this with the actual percentage to be
determined. I am told by insurance specialists that one percent is at least three times
higher than reasonable.
If I can provide you with any further explanation of OES' position, or if I can
assist you by reviewing subsequent FEMA revisions, please call me at (916) 161-0733.
Sincerely,
D.A. CHRISTIAN
Public Assistance Officer
Dallas Jones, Director of OES
MENDOCINO EMERGENCY SERVICES AUTHORITY
175 SOUTH SCHOOL STREET #175 UKIAH, CALIFORNIA 95482
TELEPHONE: (707) 463-5630 FAX: (707) 467-2504 EMAIL: mesaofc@pacific, net
DATE: 14 March 2000
MEMORANDUM FOR: All Jurisdictions
FROM: Rick Paige
SUBJECT: FEMA Public Assistance Insurance Proposal
As I advised you in earlier correspondence, FEMA is again trying to update its insurance requirements
for public assistance. The earlier attempt was defeated because of the large number of protests filed
by local government agencies and a review by the Office of Management and Budget (OMB). OMB
found that FEMA's first attempt to place the Notice of Proposed Rule Making on the Federal Register
had been done incorrectly and was not acceptable. As a result, FEMA re-formulated the approach and
submitted a notice that was modified and had the appearance of being helpful. FEMA is determined to
change insurance requirements and is being motivated through the efforts of Missouri Senator Bond -
who heads the FEMA budget committee. The intent is to significantly reduce the amount of funding
provided through the Public Assistance Program.
The insurance requirements targeted are for damages to publicly owned buildings. Some specific non-
profit organizations (hospitals, etc.) are also included. There are already some insurance requirements
in place which each agency needs to review to make sure they are adequately covered. Mr. D.A.
Christian, the state Public Assistance Officer reviewed them briefly in a meeting on 13 March in
Oakland.
In general terms the following rules currently apply:
.
"Self - Insured" applies only to states and their agencies. If "self-insured" is to be used,
then they must be backed by a non-discretionary fund of that amount.
.
Any public building to be covered by FEMA public assistance must be insured, before a
disaster, through the National Flood Insurance Program (NFIP).
,
If a building was damaged in an earlier Presidential Declaration disaster, and received
funding through Public Assistance for restoration, then the owning agency must have
insurance to cover that building in an amount equal to or more than the amount of public
assistance funds received for its repair. For example, if an agency has a $200,000
building which was damaged during an earlier disaster and received $100,000 in public
assistance for its repair, then it must be carrying an insurance policy on that building in
the amount of $100,000 before the next disaster that causes damage. FEMA will
provide public assistance funding for that building for any amounts above that $100,000.
Under the new proposal, FEMA will require that every public building be insured for all hazards before
a disaster. The "all hazards" has been modified to say that an agency must insure each building for
each type of hazard it believes might be a threat. If the agency is carrying insurance on a building, but
it is damaged or destroyed by a hazard not listed on the policy (ergo: no insurance applies), then
FEMA will NOT provide any Public Assistance funds for its repair or replacement.
-1-
FEMA acknowledged that there may be some high expenses involved, so it set a limit on the amount of
insurance required: 30 cents per $100 value.
Most states are not opposed to the update in insurance requirements and are not supporting
California's protest - for one main reason: They do not have earthquakes - or at least are of the opinion
that they do not pose a significant threat. In California, the case is different. And there is a problem:
there is no market for earthquake insurance for public facilities. Under the new proposed FEMA rules,
California public agencies would receive no Public Assistance for earthquake damage because they
could not purchase any insurance.
There have been attempts to start a National Earthquake Insurance Program - similar to NFIP. It has
not been successful to this point. Mr. Christian recommended that each agency contact Senator
Diane Feinstein's office immediately and ask about the program she has proposed.
There are a few other notes of alarm which should concern each jurisdiction:
,
In many FEMA rules there are exceptions granted for small jurisdictions through a
provision in the Stafford Act. FEMA has specifically stated that there will be NO
exceptions to the insurance requirement for small jurisdictions.
,
FEMA included one escape from the insurance requirement for any jurisdiction. If a
jurisdiction could not obtain a type of insurance, it could request a waiver from the State
Insurance Commissioner. There are a host of requirements before requesting the
waiver. The waiver must be submitted for each individual building on an annual basis.
The makes the insurance waiver process virtually impossible to use.
I have attached a packet released by the OES Public Assistance Office to me at the meeting. The
papers contain a great bit of detail and some comparison charts.
There is a very short deadline for submitting comments on the new rule proposals: APRIL '10, 2000.
Individual agency letter will have the greatest affect (numbers count). Send them to: Rules Docket
Clerk, Office of the General Counsel, Federal Emergency Management Agency, 500 C Street, SW,
Room 840, Washington, DC 20472. You may send a FAX to (202) 646-4536, or an e-mail to
rules@fema.gov. State OES requests that you forward a copy of your comments to them for posting
on the state OES web site at www.oes.ca..qov. If you do e-mail your comments, please send a copy to
MESA, too at mesaofc~,co.mendocino.ca.us.
Thank you for your immediate attention to this matter. If you have questions, please call.
RICK PAIGE
Executive Director
-2-
4/20/99
PUBLIC ASSISTANCE PROGRAM
INSURANCE PROPOSAL
Version dated 3/2/99
Condition future Public Assistance grants for
buildings and their contents on adequate
insurance coverage.
a)
b)
Buildings and their contents must have at least
80 percent replacement cost insurance
coverage in effect before the disaster.
le
Revised 4/20/99
Condition future Public Assistance grants for
buildings on adequate insurance coverage.
a) Buildings must have adequate insurance coverage in
effect before the disaster.
This may be satisfied with individual, building-
by-building policies, or with a blanket policy.
The blanket policy must cover at least 80
percent replacement cost value on at least 5
percent of the entity's insurable building value,
with a ceiling of $150 million. Public
Assistance funding may be provided under the
$150 million ceiling where the applicant can
demonstrate that the maximum insurance
package available was less than that amount.
The 5 percent and the $150 million may be
adjusted in the Federal Register in the event of
substantial shifts in the insurance market.
In the case of flood insurance, this provision
may be satisfied with National Flood Insurance
Program (NFIP) policies, purchased up to the
replacement value of the building and its
contents, or to the maximum NFIP policies
available. The NFIP policy limits will define
the maximum insurance required.
Adequate insurance is defined as insuring to
value. Insuring to value is having the amount
of insurance that will provide full replacement
cost coverage for the building. This may be
satisfied with individual, building-by-building
policies, and/or with a blanket policy.
A blanket policy must provide insurance
coverage for at least 5 percent of the
applicant's insurable building value, with a
policy ceiling of $150 million. This will be
the lesser of the either the 5 percent or the
$150 million ceiling. The 5 percent and the
$150 million may be adjusted in the Federal
Register in the event of substantial shifts in the
insurance market.
Insurance coverage may be provided under the
5 percent or the $150 million ceiling where
the applicant can demonstrate that the
maximum insurance package available and
affordable was less than that amount.
As an alternative to 80 percent replacement
cost coverage, insurance may be purchased on
the basis of 80 percent functional replacement
cost.
For a flood peril, this provision is satisfied by
obtaining coverage equivalent to at least the
maximum amount available under the National
Flood Insurance Program (NFIP).
b) A building may be considered adequately insured if
the coverage is based on functional replacement cost
of the building. Disaster assistance will be based
on functional equivalent.
e
c)
Where an entity has not been able to insure
itself due to financial hardship, and where the
building needing Public Assistance serves a
critical public service, the applicant may
request an exception to this provision. The
State Coordinating Officer will determine the
merits of the request, and may then ~ubmit it to
the Federal Coordinating Officer (FCO). The
FCO may then provide it, with written
justification, to the Associate Director,
Response and Recovery, for a decision.
d) This condition on funding will be effective
three years after the publication date of the
final rule for Subpart I - Insurance
Considerations for the Public Assistance
Program.
Require adequate insurance coverage as a
condition of Public Assistance funding.
a)
b)
c)
e
c)
Where an entity has not been able to insure itself --
due to financial hardship, and where the building
needing Public Assistance serves a critical public
service, the applicant may request an exception to
this provision. The State Coordinating Officer will
determine the merits of the request, and may then
submit it to the Federal Coordinating Officer (FCO).
The FCO may then provide it, with written
justification, to the Associate Director, Response
and Recovery, for a decision.
A finding of financial hardship will be restricted to
small-scale entities with meager financial resources,
such as a small town with a very limited tax base, or
a private non-profit with very minimal revenues or
other funds.
d)
This condition on funding will be effective three (3)
years after the publication date of the final rule for
Subpart I - Insurance Considerations for the Public
Assistance Program.
Post-disaster: Require adequate insurance coverage
as a condition of Public Assistance funding.
Where eligible damage to a building or its
contents is greater than $5,000, a minimum of
80 percent replacement cost insurance, or 80
percent functional replacement cost insurance,
on the building and its contents will be
required as a condition of program funding.
For flood damage, NFIP policies will satisfy
the requirement. However, ifthe, eligible
damage exceeds the NFIP policy limits, excess
coverage up to the eligible damage amounts
must be purchased and maintained.
Failure to maintain the required insurance will
disqualify the building and its contents from
any future Public Assistance funding.
This provision will be effective as of the
publication date of the final rule.
a)
b)
c)
As a condition of receiving Public Assistance
funding, the building must be insured to value. The
building can be insured by an individual policy
and/or a blanket policy. The $150 million ceiling is
not applicable for buildings that received Public
Assistance funding, except where insurance is
determined neither available nor affordable.
Additionally, for flood damage, the building must
be insured to at least the total amount of loss but not
less than what is offered under the NFIP's policy.
Insurance must be obtained and maintained for all
equipment, vehicles, and contents for which Public
Assistance is received. The amount of insurance
required for equipment, vehicles, and contents is at
least their actual cash value.
Failure to obtain and maintain the required
insurance will disqualify the building, contents,
equipment, or vehicles from any future Public
Assistance funding, unless a certification is obtained
from the state insurance commissioner
3. Limit Public Assistance funding of deductibles.
.
a)
b)
For flood coverage, the maximum funding will
be $500 per building and $500 per contents -
assuming an NFIP policy. Where a blanket
policy is involved, the maximum funding will
be $10,000 or 2 percent of the replacement cost
of the building and 2 percent of the
replacement cost of the contents, whichever is
less.
For earthquake coverage, the maximum
funding will be 7 percent of the replacement
cost of the building and 7 percent of the '
replacement cost of the contents.
For perils other than floods or earthquakes, the
maximum funding will be $10,000 or 2 percent
of the replacement cost of the building and 2
percent of the replacement cost of the contents,
whichever is less.
These maximum funding levels also apply
where there is an aggregate deductible.
Define insurance for the purpose of Public
Assistance program funding.
Any financial arrangement which, based on a
law, a contract, or past practices, may be
expected to provide funding in the event of
property damage, will be considered insurance.
3,
.
Specify the amount of Public Assistance funding for
deductibles.
Public Assistance funding will be provided to assist in
the payment of the applicant's deductible. Since the
deductible or self-retention is determined as a result of
the negotiated policy between the applicant and the
insurer, Public Assistance funding in this regard will be
limited, as shown below:
a)
For flood coverage, the maximum funding will be
$500 per building and $500 per contents - assuming
an NFIP policy. When flood insurance is
purchased from the private market either as a
blanket policy or as an individual policy, the policy
must equal or exceed the coverage available under
the NFIP. If the private market policy offers
replacement cost coverage, than the maximum
funding will be the lesser of either $I0,000 per
building and its contents, or 2 percent of the
replacement cost of each building and 2 percent of
the replacement cost of the contents. Public
Assistance funding for deductibles will not exceed
any maximum amount listed in the policy.
For earthquake coverage, the maximum funding will
be 7 percent of the replacement cost of each
building and 7 percent of the replacement cost of the
contents. Public Assistance funding for deductibles
will not exceed any maximum amount listed in the
policy.
b)
For perils other than floods or earthquakes, the
maximum funding will be the lesser of either
$10,000 per building and its contents, or 2 percent
of the replacement cost of each building and 2
percent of the replacement cost of the contents.
Public Assistance funding for deductibles will not
exceed any maximum amount listed in the policy.
Define insurance for the purpose of Public
Assistance program funding.
Any financial arrangement which, based on a law, a
contract, or a non-discretionary fund is intended to
compensate for, restore, or to provide other financial
protection from losses due to various covered hazards.
This includes insurance for individual buildings, blanket
policies, risk pools and self-insurance funds. This does
not include state disaster funds, discretionary funds or
contingency trust funds.
--
5. Clarify the State self-insurance option.
A State may elect to act as a self-insurer for the
purposes of the Public Assistance program. It must
submit a written request to the Associate Director,
Response and Recovery. If granted, the~State is
relieved from the insurance purchase requirement.
Public Assistance program funding will be limited
to only those eligible costs beyond what would
have been paid for with 80 percent replacement
cost coverage.
Establish certification guidance and criteria for
the insurance commissioners.
b)
c)
A State insurance commissioner may certify
that required insurance coverage is not
reasonable, and therefore need not be
purchased for a specified building iff
I)
2)
Insurance is not available from any source;
The premium would be onerous, which is
del'reed as, for earthquake insurance,
exceeding 500 percent of the lowest
available premium for all-risk 80 percent
replacement cost insurance for the same
property. For all-risk insurance, it is
del'reed as exceeding 500 percent of the
statewide average rates for similar
properties. The deductibles amounts
assumed are 7 percent for earthquake
insurance and 2 percent for all-risk
insurance.
Certifications must be based on at least 3 bids
from various insurance companies, and must
be accompanied by a notice of the action and
justification for it in a regional or Statewide
publication. Public Assistance funding will be
provided only after the bids and a copy of the
publication are received.
A certification may be made for all Perils
except flooding - due to the universal
availability and uniform pricing structure of
National Flood Insurance Program coverage.
5. Clarify the self-insurance option.
An applicant (State, local or private non-profit) may
elect to act as a self-insurer for the purposes of the
Public Assistance program. It must submit a written
request to the Associate Director, Response and
Recovery Directorate. If granted, the applicant is
considered meeting the pre-disaster Public Assistance
grant condition of having adequate insurance coverage.
Public Assistance program funding will be limited to
only those eligible costs beyond what would be
provided if it were insured to value.
A list of States with approved self-insurance plans for
flood can be found in 44 CFR part 75, section 75.14.
Establish certification guidance and criteria for the
insurance commissioners.
a)
b)
c)
A State insurance commissioner may certify that
required insurance coverage is not reasonable, and
therefore need not be purchased for a specified
building iff
1)
2)
Insurance is not available fi'om any source; or
The premium would be onerous, which is
defined as exceeding one (1) percent of the
insurable value of the building.
This Percentage may be adjusted in the
Federal Register in the event of substantial
shi~ in the insurance market.
Certifications must be based on at least 3 bids fi.om
various insurance companies.
A certification may be made for all perils except
flooding - due to the universal availability and
uniform pricing structure of NFIP coverage.
AGENDA
SUMMARY
ITEM NO. sg
DATE: Al~ril 5, 2000
REPORT
SUBJECT: SET DATE AND TIME FOR LONG-TERM GOALS AND PROJECTS
WORKSHOP
As a continuum of the Strategic Plan discussed in February, staff is preparing for a Long-
Term Goals and Projects Workshop with the Council. Directors and Supervisors will be
meeting with the City Manager to determine a list of priority projects that should be
accomplished in the next three to five years. This information will be provided to the
Council to enable you to plan ahead for the financial needs of the City and to determine
appropriate levels of reserves so that sudden large hits on operational funding sources are
not imperative.
Staff is requesting the workshop be held during the week of April 17 - 24. Councilmember
Baldwin will be able to attend a day meeting as this is spring break for Potter Valley High
School. The workshop will take three to four hours.
RECOMMENDED ACTION: Council set date and time to hold Long-Term Goals and
Projects Workshop
ALTERNATIVE COUNCIL POLICY OPTIONS:
1. Determine Workshop is not necessary at this time.
2. Determine Workshop should be conducted at regularly scheduled City Council
meeting.
Citizen Advised:
Requested by:
Prepared by:
Attachments:
N/A
City Council
Candace Horsley, City Manager
1. None.
APPROVED:L(~~
Can~ace Horsley, Ci~ Manager
4/Sec.ASRWkshop.400