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Home My WebLink About1999-07-07 PacketMEMO To: Honorable Mayor Mastin and City Councilmembers From' Marie Ulvila, City Clerk ~ Subject: City Council Meeting Minutes Date: July 2, 1999 The minutes of the City Council Budget Session of June 22 and 23, 1999 will be included on the July 21, 1999 City Council Agenda. The Joint Meeting of the City Council and Sanitation District held on June 23, 1999, will also be included on that Agenda. Minutes of the June 16, 1999 Regular Meeting and June 23, 1999 Special Meeting of the Ukiah Redevelopment Agency are scheduled to be included on the July 21, 1999 Redevelopment Agency Agenda. If you should have any questions, please do not hesitate to contact me at 463-6217. 1998-99 year end balance for the Electric Utility which indicates that the utility will exceed our retained reserves and rate reduction plan requirements by approximately $3,057,000. This was due to being able to exceed our income goal for 1999 in three areas. First, excess power was sold into the spot market to significantly reduce the City's power costs. Secondly, operating expenses are forecasted to be under projected expenditures due to the delay of projects, but will be re-budgeted in the 1999-2000 fiscal year budget. In addition, the franchise fee has been frozen at $650,000, which saved the utility approximately $178,000. Thirdly, revenues are forecasted to exceed budgeted projections for 1999, as a result of increased load and favorable weather conditions. With the rate reduction plan fully funded for the 1998-1999 fiscal year, an analysis of banked reserves and interest has determined that at the current rate of savings, market rates could be achieved by July 1, 2006, which is a year earlier than forecasted during the Electric Workshop. Banking these funds into the rate reduction reserve would advance the time to market rates six months, to January 1, 2006. In addition the funds would be available to fund any shortfalls that might occur in years 2000 through 2006, that could force the delay to market rates. On this basis, our projected system average rate in July 1, 2007, would be $.0697 per kwh, or a 55% reduction in rates. This assumes that the market conditions and projected expenditures remain as planned. He recommended banking approximately $1,000,000 for any type of catastrophic failure which may occur. Staff favors using these funds to shorten the time to achieve market rates. He recommended Council approve the establishment of a Rate Reduction Fund, under the Revenue Banking Plan, to set aside $3,570,000 into the current reserves, and to direct staff to use the $3,057,000 for the Rate Reduction Plan. There were no comments from the public. Discussion of setting aside a portion of the reserve funds to assist Iow income people with their utility bills was suggested by Councilmember Baldwin. The matter was discussed with Public Utilities Director Barnes and Customer Service Supervisor Archibald with regard to the Public Benefits Charge and the income requirements for assistance programs that the City currently offers. It was reported by Ms. Archibald that applications have been made available at the Senior Center for the Senior Discount Rate Program. She advised that the Low Income Emergency Assistance Program funds come out of the Public Benefits Charge, and that the City has not been using all of these funds. She discussed the screening process provided by the Salvation Army, which is based on Federal Poverty Income Guidelines. City Manager Horsley noted that it was previously reported that at the end of the Public Benefits Charge requirement, there will be funds remaining, based on the way in which they are currently being used. If Council chose to continue that assistance, staff could look at ways to continue the Program, whether there was a Public Benefits Charge or not. 4a May 19, 1999 - DRAFT Page 7 of 16 4b MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, June 2, 1999 The Ukiah City Council met at a Regular Meeting on June 2, 1999, 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 Council- members were present: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. S~ present: Customer Service Supervisor Archibald, Public Utilities Direct~[~:=..Bar..n.~i~'' Community Services Director DeKnoblough, Finance Director Elton, Hire Uars~iiiii~::~'i Assistant City Manager Flad, Personnel Officer Harris, City Manager ~ley, C~iii~~y Rapport, Fire Chief Sandelin, Planning Director Sawyer, Deputy Qi~:~r of P .U.~ii~i~~S...~::.Seanor, a~' City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE i~ii!ii!iiiiii!i[iiiiiiiiii~i~ii!i~!ii!!!:?'' ................... Councilmernber Smith led the Pledge of 3a. PROCLAMATION: Soroptimist Internation~!i~iil;f ~i~!i~::i~:.?.:..June 4, 1999 Mayor Mastin read the proclamation design..a..t.:i~::i::::F: riday, '~iii~iiiii~ii999, as Soroptimist International of Ukiah Day in celebrati0~i~i~ i~i~ii?:~50 yea:~!iii!ii~?~ontributions to the LuciUe Mira~a, Presiden~ of Sorop~i~g~i":in~ema~i~:~al ~ii~~??accep~ed me Proclamation on behalf of Soroptimist of Ukiah.:~::::~' anno.:u.~d that..:ii~iday, June 4, 1999 will mark their 50th anniversary serving the:~i~i::~h co~unity. ::~Sbroptimist Marilyn Ogle was also ................... .......,...-.- ..... 3b. PRE~~ATION::::~~incj We§[~i]~i?:iU'kiah Vegetation Management Program Fire Ch:~ii~a~l]n ad~i~~','~:.joint p~'~entation to Council is being made by the City of Ukiah'~::"~!~6~meni:::'~!!~i~!!fomia Department of Forestry (CDF)to reduce the risks associ~i~!~?~i~be ou~6~ii~i?:gvildfire on the west hills of the Ukiah Valley. He advised that.:t~!i~!i~r::'~fire ir~::~i~ occurred in 1959 and was located south of the City Fi~ii~ii!Marshal Evans.:::i~vised that the Ukiah Fire Department will be able to provide idi~ased fire safe~iiiiii~or Ukiah's western hills for practically no cost to the City. He ~i~ed that th~i.r.:~i!ii~as been a buildup of vegetation over 50 years which has created During the summer, t~~~[~:~uation of e~reme fire danger. The ramifications are seen eve~ summer th~~?:~'alifornia and results in loss of life and injuries. He referred to the terrain of the 1991 Oakland Hills fire and, although to a lesser extent, many of the same conditions exist in Ukiah's western hills, such as dense, dry vegetation, poor access on steep terrains, little or not water supply, homes built within this vegetation, and little or no separation belden the homes and vegetation. June 2, 1999 Page 1 of 26 It has been the desire of the Fire Department to initiate a fire safety program for the western hills. The City of Ukiah Fire Department has an opportunity to work with CDP on a pilot project for Mendocino County. The project is a high priority of all cooperators: Ukiah Fire Department, Ukiah Valley Fire District, and CDP and will consist of four phases: 1) Shaded fuel breaks; 2) Firebreaks, east-west along ridge tops; 3) Controlled burning along ridge tops; and 4) Maintenance approximately every other year. He provided Council with a map of the area and discussed the four phases of the project. He introduced Battalion Chiefs Jim Robertson and Todd Derum, and Chief Lloyd Johnson of .-:..:i.~i-:.' CDP who have been working on the project. The benefit of the project would greatly increase fire safety with .!~i~i~:..e..~:~se to the City and no expense to the property owner. It is estimatedii~..~t the.- ili ". ?. dion would approximately $1,006. The City would also contribute..~i~i~"Supp01~iiii~iiii~~.c..ting prope~' owners for approval of the project. It would also cre....'~ a whi¢~iii~0 attack and control fires and will not only stop the o~.rrence..~ fires, a greatly increased opportunity to control fires an~iiii~iia..~.b...!~ii!~:~ defend ho~!iiiiiiiiii~iiii? CDP Battalion Chief Jim Robert,on advised that t~i~iiii~ii~ii~,~..begin organization of the project on July 2, 1999. The crew will be com~ed"~iiiiii~~.berlain Park and the project is scheduled to commence on August 2,......1999. "~:~?~iiii?~?~iiii~i?~?~iiiiiii?~iii;~iiiiii~ii?~ii~ .... Council discussed the feasibility of i~~:~ii~i~!~,~..rim tr~!~i?~round the valley in Mr. Robertson advised that ...t:~~' use/~ils for.~i~'i" breaks and creating them simultaneously and could be in~~ratedi~ili!~[o the P..~ject. He will look into the matter. .:::::::::::::::::: 4a, APPR0,.,VAL OF MINUTF-~?~:'Amen~.~i!Min~i~'°f Re.clular Meeting of May $, 1999 MIS A,h[k:~.ibby to ...a.~~i~the mir~iiiii~?~i~ Speciai- Meeting of May 12, 1999, as amend~!iiiii~~.d., by ~'?~i~...~i~.U:.S voic'~?'~i:~'i with Councilmember Smith abstaining. 4b. APPR~~!!~i?:MINU'~i!ii~ii!i~!~cial Meeting of May 12, 1999 MIS Ashikul..L...-'ii~ii!ii~". :.~iii!~P...:rove:::~!i~i'nutes of the Special Meeting of May 12, 1999, as submitted~;..i::~i~"::'~i~i::~i~iii~i, mo~:::'Voice vote, with Councilmember Smith abstaining. 4c..~i~ROVAL OF ~~:~- Regular Meeting of May 19, 1999 Co..~i~:Cilmember Lib~' r~¥erred to Page 7 of 16, third paragraph, and noted the last s~nce should rea~"i?:"...the public may see their electric rates cut in half by the year ::::::::::::::::::::::::: ..........,.-':':':':':' · :...,.. -.~: ~ was of the opinion that the date should be 2006. Mayor Mastin felt the date depended on how a person interprets it, and that it was not a direct quote of anyone. City Manager Horsley advised that if we continued to bank every year, the way we did this year, we could reach market by 2004. June 2, 1999 Page 2 of 26 Public Works Director Dames advised that the City moved the date from July 1, 2007 to July 1, 2006. The extra amount that we would put into the banking with the additional reserves was then extended to January 2006. Councilmember Libby suggested that the year be changed to either 2006 or 2007. Motion Baldwin/Ashiku to amend the minutes on page 7, paragraph 3, changing the date in the minutes to 2006. . ...... ..::::::::.-:::-' Councilmember Libby advised that when Council was coming u~?::::..with .~::'rate of $1.91 per electric bill (as noted on page 7, third paragraph):, this a~:.."?i~:S based on an average residential electric bill of $58 per month. She.~]d lik&ii~ii~i~:....':.. ~ed into the third paragraph on page 7 of the minutes, that this is how..!:~::~:~ame u~ii~i~iii~i~i?:::amount. MIS AshikulBaldwin to approve the minutes of with the noted corrections by Councilmember Libb~?i~~'ing page 7, carried by a unanimous voice vote, with Councilm(~:~ii~:...~i..th abstaining. Mayor Mastin reviewed the appeal process.....::::~i~i~:?:~:?:~i~::::~::~:: MIS AshikulBaldwin to approve Item~ ~'~! of follows: a. Rejected Claim for Damages R,~ived f~!~ Ja~iiiii~iiiii~!~yes and Referred to Joint Powers Authority, Redwood .~ire Mu.~ii~ipal Ins..~'ance Fund; b. Approved Notice of Comple!~i~ii~:i' Cra~?~f Ukiah~::i~r the Construction of a Fire Tower; c. Adopted Resolution No:::~i~i~9-42 W~i~i. ng th......e...::i!i~3-day Notification Requirement for Establishing a County:::i!Ea~!i~i"ty in th~iii~iii~!::ile~!~ant to Government Code §25351; d. Joine.di:~A~icus Bri..e...f:~i~i~i!i~ds of t~ii~ii::~. Laidlaw Environmental Services. The moti:~i~ii~~ by o~11 vote: AYES: Councilmembers Smith, Libby, Baldwin, As~i?~ii?i?i~i~M..ayor"::~iii~iii!ii?i?i~OES: None. ABSTAIN: None. ABSENT: None. 7. AUDIEi~i~i~i~~SON'::~:ON-AGENDA ITEMS Osca.r::~ves, 374 ~~iiii~kiah, suggested that Council change their perspective on bu .d...~ing with regar~i.i.{/,..~iiii~enses. He felt that the utilities are a "cash cow" and that P[~sition 13 did not.~[~p the City from raising utility rates. He felt the current utility rates a.::~?~i~nreasonable a.n..~?that Council should vote to lower the rates by a specific date and t-:~i[~here be an i~i~!~diate 10% cut in rates. He recommended the City instruct its road ~[ii~ii~.r:....o..:.p........e...r.:.t. yiii~t~ a road sign on Orchard Avenue that it is not a City maintained road. C'i~i~~:'~:; Horsley advised that the repaving of Orchard Avenue had been postponed due to weather conditions. It is scheduled to be repaved during the second week in June. 9. UNFINISHED BUSINESS 9a. Council Appointment of Vice Mayor MIS Baldwin/Libby to appoint Councilmember Ashiku as Vice Mayor; carried by the June 2, 1999 Page 3 of 26 following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. Councilmember Libby inquired as to the Vice Mayor's responsibilities, which Council and staff described. 6:58 p.m. - Recessed. 7:00 p.m. - Reconvened. .::i::. ..i:~:i:!:!:i::' ::i~. ..::?:'..;-~i~ .... 8. PUBLIC HEARING {7:00 P.M.) :::::::::::?:::::::::: ....... ?:::ii?~[;i:::::'~ ..... a. Application to Demolish a Residential Structure.. Over 5~i~i~ar...~i::i~Old Located at Planning Director Sawyer advised that the single f~i:iy reside~i~i~!!~t~..'t.:~[e Iocated~::::~! 232 Mason Street has been determined to be ove~ years..:~i~~::'' P'~'~...~~:~he,.~iy adopted demolition provisions, (City Code {3016), ~[~..subj.~{~:~'to revie~:'~::~~~~1 by the City Council. The Demolition Permit Review Co~~ted unanimod:~i~i6~Fprove the demolition of this structure and re~mmended C~i~[[~p:proval. Staff conducted an environmental review of the project and found no h?~~[:chitectural significance, and recommended the CEQA exemption as noted[~¥~ the~::~~P~A. 7:02 p.m.-Public Hearing Opened. 7:03 p.m.-Public Hearing CIo~' MIS Baldwin/Ashiku to appro~emoliti~?~bf a st.[U~bre over 50 years old located at 232 Mason Str.~,t, based o~::::~~nding t~~~::~ot possess historical or architectural signifi~n~~rried by?:~[~i~ing rd~?~i~i~:(e: AYES: Councilmembers Smith, Libby, :al~i~~ ~~~~~.n. N6~:~'~ None. ABSTAIN:None. ABSENT: None. 8b. Recei~~ii~omm~{~::'::'and Make a Determination Relative to Allowing Di~{:' AC~:~?~?~?~he City of Ukiah Electrical System by Other Enerav pua~:'Utilities Direct~:'~es advised that Assembly Sill 1890 mandates direct access fo~estor Owed Utiti~s, while excluding municipal utilities. Although AB 1890 did not ~ate open or di{.~?:access for municipalities, it gives public utilities the oppo~unity to :~:~:~:~:~:~:~::-~g~:~:~:;. ..::~:~:~'::~::' . ....... ~::pate. In ord~::::~o do th,s, AB 1890 requ,res that publ,c uhl,t,es hold a publ,c heanng {~:.~~s~:~the~i~ of direct access within their service area, and make a determination or to leave the service area closed to other energy providers. S~:~i~~:~cil make the determination not to allow direct access at this time, it does not prevent the City from allowing direct access in the future. He noted that open access relates only to the energy po~ion of the service being provided to electric customers. He reported that while direct access would allow customers the ability to choose an energy provider, it would impose significant risks to the City of Ukiah and it's customers. He June 2, 1999 Page 4 of 26 discussed his concerns with the risks involved and felt it would be in the best interest of the City and it's customers to not open access at this time. These risks include: 1) Large customers may leave the service area causing a significant loss of revenue that would require increasing rates, which would cause other customers to leave the service area. This "death spiral" could eventually lead to default on City debt, which would have a major impact on future funding of City projects and significantly higher electric rates for those remaining on the system. . ...... 2) The City would be responsible for measuring, billing and collec..ti:..o, n of.::~r providers' services. This would require additional resources includi, ng pers..o.'".~L~ software and hardware, and the responsibility for settlement of bills?:~.:.t:weenii~~!~iiP....roviders. 3) Rates for the various service components must..':i~::~ provide the services must be determined. 4) The City of Ukiah would be the default serv~ce~?:ii~!i~.r... Although cus[omers m y choose an energy provider other than the City, th.e...::i!iii~!i~iiii~!~ be required to maintain enough energy to supply those customers shouldi::::!~!~ir'"~'~!ii'.a..il to deliver. 5) Direct access would require a reduction of..:~~ii~g.::i i~:'expen'~ii~ii~:~' approximately $2 million annually, assuming the collect.i:~?~ii~ii~i?~iiiii~~.etition.iii~insition Charge from customers leaving the system. The Ci~ curr~ii~~igg?:~D~'dget is only $3.1 million annually, indicating that a $2 million..:~i~luctior~i::i~'0Ui:~!iii~~i~'~ curtail system operation. .:.:.:::::.: '::::::::: , , :.:. :,:.. Councilmember Smith reques:t:e~":::~lar~f~ca~,:~'on con~hing option 4. · :::::::::::::: ' .:iii!iiiii~iiiiii ....... ......... "" Pub? Utillties Director.B.a~es adws~i:?:~at~si~ce other prowders would be using th cit i, no otro,, °°ming from an.~,!~!i!i~:.no W'~ii~i~mine ~'::'~'i~e other energy provider ceases to provide electricii~!ii?~i~i~.way 'i~?~~iQ..e the usage is by metering. Therefore, the City would need to be '~i::~iii~?~i~i.ntain~':i~iiii!~'~i'i!ili~i?:::to serve the same load as it does now, should the other provide.r..:!~i~i~::::~fail. ::~i!ii~!ii~!?~!~iiiiii?:::~ .... querie whioh they.~:.~e presented. :::iii~i~i!?~i!iliiiiii!iii?:? ~!iiii§.rn.~ r~sponde.~iii'0 Councilmember Libby's inquiry of the estimated annual amount ~!i~: City's electri~ii!~venue would be lost if every residential customers opted to go with ~!i~!~.r:.. utility......~any, to be approximately $4.4 million. Upon conferring with staff ~~~iii~i~i~i"~ed that approximately 60%, or 4,500 to 5,000 customers, of the City's C~~i!!~:"residential. He explained that the average residential rate was based on the KWH consumed by customers in the Residential Rate Class and the rate in that class. He responded to several questions by Councilmember Libby concerning the City's debt. For generation only, the City pays approximately $0.06 per KW, only, and that the average charge per customer is approximately $0.125, noting that it costs the City $0.06 for June 2, 1999 Page 5 of 26 generation only. Other than the hydroelectric plant, the City still has a debt on other generation plants which are run by the Northern California Power Association (NCPA) who dispatches the units for the City. He discussed the reasons why the City's rates are higher than other cities who joined NCPA, notably the Lake Mendocino Hydroelectric Project debt. Secondly, the City invested very heavily in geothermal and hydrothermal energy sources, which are very capital intensive to participate in and to operate. The Franchise Fee is included in the City's operating budget. He did not know when the Fee was instituted or its initial amount. · Gity Manager Horsley advised that the Franchise Fee was institute, d.:..~:~:~.:...:~:~, prio~iii~'..::~,~:~:~:~:~. 1986. She will provide Councilmember Libby with information rega.r, ding the...:~i~¥~iiiiiii?~::~ .... Public Utilitie, Director Berne, continued to r..:~:~d to '~~i~....mber Libby~' inquiries. Besides the Franchise Fee, he did not ~v of any¢:~i~'e'~?~i~'"....~!?i~.oper, a..-'~i~'g expenses that comes from the General Fund. aesi~, the aware of any other City Department that contribui~ii~..O..~?'~oney to the'~:~~ii~'Fund. Upon an observation of Councilmember Libby that s'~i~i~?~i~0ot find any ref~'i~'~ce to the Franchise Fee on her utility bill, Mr. Barnes advised tb~ii~i~i~i~..s not itemized on the bill. In response to an inquiry if we are overstating the:~ia~'bt there is $3 million in excess reserves, above the $3.5 million in rese'.~ves, he'::~ii!~r...e of how these two reserves relate to each other. He advise.cl?~i~iiiii~..Francl~i~iiii~'~'~'is budgeted as an annual expense and is not debt related., i~~i~iiiiii~ her in~i!~ of whether he could guarantee the City would meet market .r.a...~?~y th .e...ii~i~i~dvised that he is unable to predict the market. Although C..:..'~ncilme~be~!i?~i~i~?~i~xpressed her feeling that reaching market was the basis .fe~!i?~ot ret~ing th~iiii~'~nillion in excess reserves to customers, Mr. Barnes was of th~i~i~inion t~t the basi~:~for not returning this money to the .~i:i:i:i:!:!:i:i:i::" ':':':':':':" ':':':':':" customers was to allow the Cif;~iii~b get te?~arket at-~:~ii~much faster rate. ;!::::::...::: ............. ... ........ ........ ....... :.:.:.:.:.:. City Man.~..r:.:::..Horsley::ii~i~ that th~::?:~ii~?~i~J:~:~ receives a fee similar to the Franchise Fee fro~!i~i~i~..t, ilities":~!!!~iiii~i::G. & E.":~:::~i~:~'r, and a pole charge from Pacific Ball. The Franchi~:~i~:i~i~i!ii~s a si:~~ili~ charged for utilities. She noted that some cities consider it a::~ili~::::and is"::ii~i!~iithe utility bill. The City has never had a User's Tax. Councilme~i~::::':::~~!i~. of t'~ opinion that the decision Council needs to make is heavily..:..~::i~::~sed on th'~iiii~ii~:.the utilities. She inquired as to how much extra annual inco~"~as generate~i~~:~i!~i~e City raised its utility rates to 12% three years ago. She co~i~i~ued her queries~ii~ ~i~ff with regard to rate increases and reserve funds. ~i~c Utilities Di.r.:~r Barnes advised that there is no extra income. He noted that staff ~~....the ..C..j..:t...y~i~uld meet its regular targets and the rate increase covered expenses i~!?~.~i~i~::::~i~ e utility. City M~'~ager Horsley noted that a large part of the extra income relates to development which has occurred in the City, with the excess revenue and use of electricity coming after that time. Additionally, the City was able to sell its excess power this year at a very good rate. June 2, 1999 Page 6 of 26 Public Utilities Director Bames advised that the money the City received from NCPA was used to put money up front to get the debt paid down on the bonding of the facilities. Some of the reserves were used in addition to NCPA transfers, amounting to approximately $2.5 million. Discussion followed concerning this matter. Councilmember Ashiku noted that when the debt was refinanced, it freed up some reserves which were set aside. Public Utilities Director Barnes noted that the City last raised the rat~:.because it defaulted on their bonds, and required the City to put money into :~:.rese~;':account. ::::::::::::::::: · Councilmember Libby continued her inquiries of staff ~ernin~i~i!i!~i~..c..tric utility rates, history, and structure of the system. Public Utilities Director Barnes explained that i~::..City .~i~'e an a'~~~i~::'the Western Area Power Administration who had some ~~ii~lro electricity '~i~ii~ able to buy it for about $0.025 and then sell power back::ii~?~'~:..i'. ~:0ol, and into the market, for the market rate. He noted that this is a function of N,C..~i~iiiii~:.e...~!ng plan. He responded to Councilmember Libby's inquiry as to why no uti:ili~'fig~:~iii~iiiii~....n..cluded in his current Staff Report but were included in the infor.m.,...a....~i~,n., provi~ii~iiii~.,.uncil for the Utility Workshop, and advised that he met with C~d~ii~ber sm:i~iii~!~ his appointment to the City Council and provided him with inf..o..~!i::i~!!ii~iiii~t::::i~ime. !~ili~sponse to her inquiry as to why his report only gives one opti~!?~e res~:-~!?~..t:::i~ncil only has one option. They need to decide whether to opea~i~e mar..k'..~. O':~i!i~!~'cil decides which direction they will take, then there are other...~:~tions a~ilable. Councilmember Libby felt C~il doe.~i?~ve s0.~:"middle ground, when reviewing the Mayor ~Mi~ii~.r.:..gued:i:'i!~iii~i!i~9 midc~;i?::~::i~:~nd and that Council, at this time, needs to decide W~'~iii~ii~.p...en a'~~ii!i~!i'..t:.h.....,e City customers. He pointed out that this is not the same issue'::~::~ii~ii~:.s..ed bY?~~ii~uring the Utility Workshop two weeks ago. There is no rather a "yes" or "no" vote. Ci~ M~er Homl~~~ that information given to Council at the Utility Workshop en~assed the wh~::~:~e of the utility; debt restructuring, and its future in order to giy~?~Council backgr~.~hd~::"of the status of the utility. Since Council already had the :.:.:.:-:. ~.:;~shop, it is no~::~[~:nly a question of whether the City will open its market to other d~i~i~ii~s. She note.:~;~'at Council does have the option of opening the utilities at an~ime. i!, fee.!~?~ do not have enough information at this time, staff will provide them ~~~i~0rmation at the next meeting. Coun'~'~i'member Libby was of the understanding that the matter before Council at this time is to make a "yes" or "no" decision and designate when the utilities would be open. Councilmember Ashiku advised that Council does not need to make the decision tonight as to when they will open the utilities. This utility depends so much on market conditions June 2, 1999 Page 7 of 26 that it is difficult to predict exact revenues and is why there has been revenue short-falls in the past. It is difficult to predict if the City will be able to bank any savings in the next few years, therefore, it is impossible to designate a date when the City will be at market. He noted that, should the market change, the City will still have the debt that it will need to repay· As long as the market remains lower than what we can charge our customers to service our expenses, the City won't be able to be at market· He noted that the Ukiah community voted over 10 years ago for green power· The citizens have a duty and obligation to repay that debt and the City has a responsibility to its bond holder. ..;:;,. He reported that there are communities outside this geographic~!~,are.a.:.~:~i~t decided to invest in gas driven power plants. The City of Ukiah al..s....,~ had th...a.:~i~~"L~nity. The City could have built a 30 megawatt gas-driven plant in the U~b Vall~ili~iiii~..same price that they built a 3 megawatt plant at Lake Mendocino..:~i~:'~lant ~:.i~?i~'.e...~,been able.~' · ' eneration needs Howeve~?~e Ukia.b.':~~i~i~i~cided-~:'Y handle all of Uklah s g · :.::::!i::i::iii~ .... ~:~::::::::i:::.-' ........ ~:~:~:~:::~::....:?:~:~::::~:::~:~:~ ............ :~:?:~::: . wanted renewable power and it went to a vote. Now..i~:me pe~t:b in the ~~ii~i~" not want to live by that vote. He discussed his ear~i~ili!~a.r.:~i~iii~n the City ~~iiiiii~d his involve .m, ant with NCPA and that by working with ~iiii~~, he became m:~:~:~"aware of the City s utility problems. There were a lot of exp~~iii~t::..were very high, and Mr. Barnes and staff worked very hard to bring those~,?~:~,P~::~iiii~i!?e. He discussed the restructuring of the City's debt through NCP~:~ili:,.o bring::~?:::~iiii~ii~:i~iiii~P market rate in a reasonable amount of time. Mr. Barnes asse.s....S.':.~i~i?~:tility syS:~:~i!~' instituted changes to make the system more reliable. He no..:~!i~i~!i.li.i~.~..r, one:i:.~i!~:he components of the deregulation bill was the Public Benefit.s...:~::~rge 9~:i~ii~ii~i~ii::~As to be paid by all utility customers throughout the region. Th~.ii~ity of .~iah"~::i~ii~i~!~!i~ not include this charge in their rates. He noted that this is n..e..a~!~ half o..:~:~?~i~e Fran.'".~¥§:~' Fee rate, which was rebated to the most needy customers in ~iii~iah c.0.~::munity, .~d is known as the Public Benefits Charge. He discussed increas~i~ii~iigibil!~i:~tandar..~ii?:~owever, he noted that the City has a high debt .service. For .~.a~i::~bustom~?~ii.~:,...s..~:~...d. li~i~ult to understand that in the long run they will b..e.,~.f:.l.t greatly f..~!i!i~ing gre~ii~~i::~'nd power that will possibly shield them from lar:..~iii~ases"i~!~ii~at are ~'~!i¥?:~el dependent. City Mana~~~:. ..... ~.y.......advi~iiiii~i!iiii~::action taken by Council was to cap the Franchise Fee for this fis~iii~!ii~:d nexi?:i~i~ili?:~'ear, back to 1996 rates. Instead of the rate being 6%, it is 4:~$~iii~'~iiii~i~~.i!~:Y..... con~i::~i~ down. As revenue increases, the rate will continue to fall ..... 7:2~!!ii~'~rn.- Public He.~i'~:'::'Opened. :::::::::::::::::::::::::::::::::::: . ~i?~mett, Ukiah,..::~ised that people feel they are not being treated fairly by the utility. ?~?~i:ty Coun.~?~annot determine how much the utility bills will be reduced, and ~~ii~?~i~:i~t that any Councilmember present has a difficult time paying their utility b'iii',iiiiii i ' 'd that he applied for a rate reduction, and barely qualified for a reduction of $6'"~'i:"month. He felt the reduction should be a percentage and should be open to all Iow income people in the community. He discussed Iow income families having difficulty paying their utility bill. He advised that if he could switch utility providers, he would. He felt that the people suffer from the high cost of utility rates, not businesses. It was his opinion that Council should do something now and give the people some consideration. June 2, 1999 Page 8 of 26 He felt that Council, over the years, has siphoned a lot of money from the General Fund. Mayor Mastin responded that he did not like to hear the facts and figures distorted. Melissa Broaddus, 959-C North Oak, had questions regarding other ways to fund the utility, such as alternative energy net metering, the utility enterprise system, and to use the $3.5 million to more aggressively pursue alternatives. She would like to see Council's decision to include language to approve the proposal contingent upon lowering rates with definable goals within certain time periods. The City could hire a consulta:~:.if need be, in order to find ways to reduce the rates and decrease the debt s..:~ice....~.~==ili~e discussed green energy power, customers using their affordable .take ca..p...~i~Y~=:~i~:d an option for customers to sell energy back to the utility. She distri~.d a s~~ii:.,t.,o Council which listed resources and noted a consultant in Fort arag~?=~¥~;hael ~=~iiiiiii~".. ~l.:~:..be availab...!~' Terry Poplawski, 612 Walnut, discussed issues th~ilili~?:i:"~;::)the vote tl~:~ii~i~i~i~:~le for green energy. He felt it was not a mistake, even t'~~iii~:..e.., market does r~:~'i:"i0ok good now, and felt the next crisis will conc.,ern green..::~~iiiiiiiii~!~:...e..s. He advised that he participated in the re-writing of the City s Gener-~i::?Pla:'~iiii~~::i?::..Element. He felt that energy, in general, is way under-priced as a com.....~dity in 0:~i~~y and life style and opposed deregulation of utilities. He noted tha~i~i::i.:.t, he way'~ii"',!~i~::i'~h P.G.&E. became competitive was to drastically cut their wo.~i~i~i?iiiiiii~iii~ii~prese~ii~ive of organized labor in Mendocino Co,unty, he knows of the j~:¥'and ~:~i~!ii!i~ii~.p..::a~'d from deregulation. He discussed Ukiah s utility and its com~i~iment t~i~ii~er~:i~ii?:~iii!~':community· He discussed the burden of paying utility bills by::~§~e individuals. H~?~it?'good about good about voting for the hydroelectric plant sever~!ii~rs ag.~i!~hd woul...d.,~ilili!ike to having things remain as they .................... . . ..:.:.:.:,:-:.' .-i:!'-!:i::" · ' ' ' are now, or until events are le~Si!iip'rec~p~t~?S.' to the.::~t~re C~ty s structure. He d~d not fee that any sur:pluses genera~edli!~ the Ci~iii~?:~ wasted in any way. Judy P~~:.._.ii!i!~ So.'~i~~i~::.advis~i~i~i~:::'she was unable to attend the recent Utility Worksh"~i~iiiiiiiiiiii~iiiii~reed'::~iiiiii~::.cil's recent decision to bank the money rather than reduce ele~ii~i~iiii~., by le'~!~i~iii$~.. each month and would like to see Council spend more mon~y..:::i~iiiii~~groun~i~!i~i:i'lities. She advised that she voted against the hydroele~ili~ii~i~!i!ii~ii!ili~!i!ii:::.v..ing ~i~ the majority decision. Given the opportunity to buy cheape,ii~ii~ctricity fr:'~iiii!~i~r source, she would. Utilities have become a commodity, are v.e~:"cyclic, and it ~iii~:~ible to predict their financial stability. She felt that, given the?:~portunity, many G~y"EL~stomers will follow suit and go with a cheaper utility. Knowing ,-::i:i:::':':'- ':::::::;" ~i?it will do to the C......~'s financial status, she felt it would be imprudent to go to the open .,i:i:i:i:!:!:i:i:!:i:i. - .... ~i~t at this time,:?:::iiiii{ the City does not open the market to other energy providers, she ::::::::::::::::::::::::::::::: ~¢~i~i~.l.i..k..e Cou .n.,c....i!~ii~-~ explore options such as time of day metering, affordable takes, and be allowed, as well as other alternate energy methods. She felt that c~~i~i~'Uld be rewarded for utilizing energy efficient methods. 7:47 p. - Public Hearing Closed. Public Utility Director Barnes responded to a question of Councilmember Ashiku concerning responsibility for the hydroelectric bonds, by advising that the City of Ukiah is June 2, 1999 Page 9 of 26 responsible for the debt and that other City assets may be at risk should the City default on the bonds. Councilmember Ashiku was of the opinion that some members of the community need to be aware of this responsibility and that opening the market at this time would result in financial disaster for the utility and the City. City Attorney Rapport advised that these were revenue bonds and are limited to the revenues. The City made covenants in the bonds to maintain the rates and..::..t.~service the bonds. If the City violated those covenants, its credit rating would~ibe de.s.:.t:~'yed and any other borrowing that the City would need, would cost the City gr..~i~:::~i!:? Mayor Mastin noted that a covenant of the bonds is t..h'~!?:i~:~ rateSi~iiii~ii~.ver the bo~' payment. If the City looses customers, the rates?~ii~:~y need:~i::~:::?~3~:::~ii~~~ to .t.~'e remaining customers. He inquired of the City Attorn~ii!i..f. the it be challenged by an initiative or by court action.'~iiiiiii!iiiiilili!i~i:~?~?:iiii~i? ....... City Attorney Rapport noted that if the City has a .c.:~i~~i?:i,o. bligation to maintain the rates to service the bonds, the City would have ~:i c~~i?:~gbligation, regardless. However, he would need to research the matter...:::inlii:order t~:iii~~ii~;o..uncil. City Manager Horsley advised members.::9~i~i::!i~i~iiit.h, at~ !itheli~i::iy originally calculated that it would not be able to go to marke.t-:::~:{e unti~i!i!i~ii!:.~iiiiii!i!~i?:~.e...~:ucturing bonds, lowering its expenditures, and various other t~i~:gs, it is::iii~:0w'~i~i~{~ to occur in the year 2006. The City has reduced the numb..e..r..:~,~ years.::~ imple~i~'ting these measures during the past 3-5 years. The City has b~ii~iery dii!ii~ntly co..:~i~ng down to market rate as quickly as possible, and that is the Cit~ii~:itimate:::~l. T .h...~i.i~!i~iY keeps lowering expenditures and whatever we need to do.:~::in ~er to ~i::theiiii~'al of getting to market as quickly as possible ..... ?..::?~!!!i!??~iii~ ......... ?::::?:::-'?:?:?:?:?:?:?::::::::::::::?::::::::?:?:::: ....................................... Mayor federal legislation which could force the City to m~et by that time, the cost to the City would be support the electric utility. He noted there is a possibilityi~t~¥~{~::i::ii~ii~i~-~i~t3 ma~i::::~ot be implemented. Coun¢ii:Aember Bald iii i:Sed that the City would need to put the Airport, Conference Ce....~i~r, Golf Course, ~d iSther assets on the market to cover payment on the bonds. ;::::::::::i:i:i:i .:i:!:!:i::' :,:,:.:.:.. ============================= ..... "::!:~:!:!:i:i:i:i:i:!:: · ' ..... D.:::~::s.c-:asslon follow~iii~oncerning the bonds with regard to pre-payment. It was noted by ~~i!...m. emb......e.~iiA~hiku that should legislation pass which would change the status of the ~{~i~i~~~nds, it would put the City in a very difficult situation. CounCilmember Libby advised that she is aware that there may be problems if the City opens its market, however, she felt that the word "bankruptcy" is a "scare tactic". She discussed excess reserves of $3 million and Council's decision not to give that back to the customers because they wanted to meet market rate by 2006. She felt the City should give the customers a date when it can open the market. June 2, 1999 Page 10 of 26 Councilmember Ashiku discussed bankruptcy proceedings and the uncertainty of predicting which direction the market will go in the future. He advised that part of Council's rationale to bank the $6.5 million was not only to shorten the time to market, but it also gave the City a fund in case the market prematurely opened, since the City would not have revenue set aside. He discussed maintenance of utilities and the City's reserves. He felt it is not possible to cut rates at this time because the City has an obligation to pay its debts and needs to act responsibly. Mr. Barnes advised that in 1997 the City projected it would meet target, ~:. had some failures at Collierville that resulted in raising the City's purchased p .o..:~er co~.?;~y $600,000. .:::::::::::i:i:i:~, ..::i:i:i:i::::' · Mayor Mastin was of the opinion that the City could B~?~t rat~ii[iiii~ii!i~o it responsibly. Councilmember Libby disagreed with Mayor Masti::~ii~'nd that the City had an excess of $3 million and felt th~ity ow~*[t to the'~~~~[~::~he discussed previous rate increases and how it is:~::[d~:'' to some rat~?:~:~~:~' She advised that the City has other options to deregula~[~?~?~?[[~[~?:~ .... ~ayor Mastin discussed the estimated $1.91 rate.~re'~::~(~~s::..affect on rate payers, noting that Mr. Harnett spoke earlier about th[s:~matter a~(~~ntemptuous that he would ~nly receive a $6 decrease in his bil.!:~:::::?~~:;~of the a rate decrease wouldn t make much difference to custo~::::::::~::8~(~(~i~::~will in ~ years. Councilmember Ashiku, as a poi~f~ orde[¢~?~:0te'~?~?~?'action before Council is to .......... . ......... decide whether to open the market~:¢8:r direc.t::?~'ccess o ~intaining the status quo at this time ..................... ?'::' ==?=?========;? MIS Ashik~Smith to deey::.di t of Ukiah's Electric System. Counci . suppo the motion only if a proviso is included'::~¥~(~ion tfi~(~(~i~::,will aggressively pursue getting people living at the pove~y levei:~8~~?::;jnvol~?~~~ate reduction program. He recommended all those who have a8::~:i~~?~b.e P°'~¢~¥~vel, or below, qualify for life line or reduced rates. It was his~::~¥~:~:~:~::~~;?;¢und '~t aside by the City for such a program is not being utilized~¢~ctively an~{~program should not just be for seniors. He discussed a flat perc~'age or flat rat~~(ion, and how it benefits the rich and those that are most wa~(~ful of electricity.¢~::~uggested the City target the rate reduction and take a more a~bssive stance .... ==================================== ====================== ::~:~:~:~:~:~:~:~:~:~:~:; ..::~:~:E?" ~~i!.memb,~Ashiku expressed his commitment to change the City's eligibility ~8~i~~!~?~(f~::"the Public Benefits Charge. However, he felt additional information n~(~(B~:~:~btained concerning the income levels and how the program would work. CounCil would also need to determine, if there is not sufficient funds, how to provide a rate reduction in order to make it consistent and fair. He would like to revisit the matter at a later date. City Manager Horsley advised that the matter will be coming before Council at their June June 2, 1999 Page 11 of 26 16,1999 meeting, based on Councilmember Baldwin's previous request. Councilmember Baldwin advised that Council can revisit the denial to open the market at any meeting. City Attorney Rapport advised that a determination would need to be made as to the number of City utility customers who are living at or below poverty line to agree upon a standard. ..:;i::- ..::!:~:~:i:i::" Discussion followed concerning Councilmember Baldwin's recom.~gnde~i~endment to the motion that a proviso be included, as well as changing eligibi~iis...t:~Sards. Councilmember Baldwin inquired if Council is re~ii~'d to ~!iiiii~iiii~...~ision tonight' regarding opening the market. Mr. Barnes advised that AB 1890 requires that a made by Council, prior to July 1, 1999. Unless Cour~iiii~i~ii~iliA. special meetin~'i'""ihis would be their last opportunity to take action on the Discussion followed concerning the issue befor...e..::~.O..uncil; ~i~ii~:;~.open the market at this time. The importance of looking at the P...:u..~ii~ii~.f..I. ts Cha'~iiii~?~':later date was also discussed. The matter of whether to pla~:;i~iii~i{~ii~i~?~$.3...50,00~ii!~n the funding for such a program was pursued, as well as the:?:~sibili.t:~!?:~!iii~i~iiii~;~p~'ion of the Franchise Tax to supplement the fund. .:~ii~!i~i::::~::' .... ~::?? ........ Councilrnember Libby advis~?~?~}~at C~hcil ha~!i!?~ifour options and was under the impression that, under those ~'ions, .C-.~'plianc.e..ii!~tes were set. She expressed her disappointment with som.eiiC~cilmem.'"~!~::~h~i!~mpaigned to lower utility rates yet at the last C...~.il meeti.n.:~iiiiiii~':...~i:trackedlii~i~ii~!i:;~ampaign promise. She felt this Council could ha~ii~~ed th~::ii~ii~i!iiii~:.to the":~i~:?Yers, however there was a "no" vote. She discuss(~:~i!!~(!~Lr.:...egarcJ:ii~ili~~.!ation available to the City at this time of: - We coul~::i::a~!iii~ss to':~i!i~i~i~?lectric system, which she cannot support because it would bu~ii~i~!!~itizen~?:iiiii~i~ii!i?~i~?~ .... - DO not..~~:;i~ii'~'iii~8....s, ide~?~i~ening the service area at a future date when the rates are::~i:;~:~arket an~ii~~.t.:ition is better defined. This would occur in 2019 and she ca~ot support it b:'~~:"it is too loosely defined. - ::¢i~en the service a~ {'8: competition as quickly as economically possible by using the ;iiiiiiiii!i~nking option. H~8........... rates constant until bank savings can offset future reduction and :ii~ii~i~iS~:erating costs,:~luired to achieve market rates. :::::::::::::::::::::::::::::::::::::::::::::::::::::: .............. ::::::::::::::::::::::: .... ~~~~i~shiku inquired if Councilmember Libby was supportive of the second 0~{~!iiii~i~::'he asked her to restate. After Councilmember Libby restated this option, he advised that this is the very thing that Council is trying to achieve at this meeting. Council is not opening th'e market at this time, but is banking its savings, and holding the rates constant, and trying to reduce rates to the needy by evaluating the Public Benefits Charge, and trying to get to market as quickly as possible by saying that we will not open the market at this time. He noted that Council has a regulatory decision to make at this June 2, 1999 Page 12 of 26 time. Councilmember Libby advised that she is supportive of Option #2 if it can guarantee reduced rates at the specific date of 2006. She felt the City owes it to the utility payers to give them a date. She could not support the motion based on "if's". Discussion followed concerning ENRON and that they are pulling out of the California market because it is so unpredictable, even though they have a lot of commercial .'.:i::.. ;.:.:.:,:.:.. ..:.:.:.:,:.:.. customers ..... ..~ii:::: ........ ~i!i::i::ii::~! .... Motion carried by the following roll call vote: AYES: Councilm:~.~ili!!~:mith, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSTAIN:.:~uncil~~iigibby. ABSENT: None. 8:20 p.m, - Recessed. 8:30 p.m.- Reconvened. 'ii!iii!iiiiii~iii!ii?:~i?:?:i::::iiii~i!ii~?' ................... Bb. Council Consideration and Possible Bal!~{iiii!i!i~bres for November 1999 City C~a advised that at the May 19, .,1.:9:..~:9:..~::City C0~i~ii~i~ting, she presented a proposal to place a Ballot Measure befor.e..~::::~i!i!~i~::.?:..at the '~~'"~er 1999 election to have the City Clerk's position be appointi~!ii!!ii::i~~iliiiiiii~i~.:~ssed:~::ii~ matter at the meeting and entertained the option of possib!~ii~cludin..~!:'?:~?~i~_§;~::::i::~~'e measure on the ballot. Council also directed her to providence?cost a~'lysi~:~:'::~iiii~iiii~ecial Election with multiple ballot measures ..... She discussed the matter wi~?~!~endodi~:~ Coun~?i~lerk Marsha Wharff, who found it difficult to estimate the cos.t..i~?.:f..o~?i~i?Specia!iiii~ii~.O...a~:~::ballot measures since various factors need to b.~ii~,sidered,:.:~ii~!iballot I~i~ii~iii!~ts, legal noticing, printing of arguments for and :~i~ii~::...mea,~:~iiii~ ~i::::.o. ther e'~:~,~i~{~:~s will be participating in the election. It was her estirr{~?i~i!i!a:.base":~iiiii~!ii~:,.500 could be placed on the cost to hold a Special Election. T'~i~ili~::~:..consi~::~{i~iii!~pproximately $500 per ballot measure for printing costs, the est. i~~ii~::.for °'~i~iilBA::i:i'~t measure would be $8,000, two ballot measures would be..::,$.:.~!!~i~:~i~::~ili~ii~i~ball0'i:'i::::~easures would be $9,000. She...~ised that on M~ii~i!iiiiii~ii::!~99, she conducted a survey which included the Mendocino C..o:.:~{~, Office of Educ~{i'o~;:' Ukiah Unified School District, and Mendocino College, all of ~i~ indicated they .~i::i'l be participating in the November 1999 election. Therefore, it is .:i:!:::::::' should..~:"City participate in the election, the election costs would be shared ~i~i.O..:.U..S pa..ct...i.~i~:nts. A~iii~i~i:; of previous elections which included ballot measures as well as Council seats"~'~'s provided in the Council packet. The most current elections occurring in March 1996 and November 1998, cost $7,820.11 and $7,533.80 respectively. The City Clerk recommended that Council call a Special Election for November 1999 to include multiple ballot measures. Should Council desire to hold a Special Election, a June 2, 1999 Page 13 of 26 Resolution and Agreement were included in the Staff Report for consideration. Councilmember Baldwin discussed the concept of having numbered Council seats. Each Council seat would be numbered so that a candidate would file for a specific numbered seat. He felt it would be a benefit to the community and discussed world views and perspectives of the future. In this way, a candidate would be able to run against an incumbent who shared a different view. Mayor Mastin inquired if there was a "none of the above" option. :~!i.. City Attorney Rapport did not have an answer ....... Councilmember Baldwin was of the ,opinion that n..~iiii!~g shoui~!?i~iii~iiii~...n...!Y two The voters wanted to keep the Mayor s term electi~?:*'but felt ..t:~ a four year term. Councilmember Ashiku felt the matter of number~i~i~i~?....m..aY be too to make an argument to the voters. He questioned whethe.r...:?:i~?~iii~ii~..S..:.S by the voters. City Attorney Rapport advised that he woul.d...::~pe~d to pr~~iii~ii?~iL.mpartial analysis of each ballot measure. He was unsure of t~iiii~~i~.S..., if mor~iiii~:~?:~ne person submits arguments for or against a measure. He .a...~ii~i~ii!~ii!ii~i::y:idual .~::~ncilmembers sign the ballot measure. He was of the opini~di?:~:~at a not be put on the ballot unless the entire Council is willi.d~**to sup~ a '~~i~?argument for the measure. He noted that an impartial analysis~i~ld be p:.*~pared a~'"~vould not require an argument. ,,..,....-, ...... · *:':*:*:':*' .*.*...-.* John McCowen, P. O. Box 45~i!iii~i~cuss~'i'i~e ' ' ........... 's Clty?:~ouncll recent appointment of a fifth Councilmember and the..~.r...:g~ent pre:~*'....'~...d..~:?:..b.*'.~iii~ouncil of the costs involved should a Special E:t.~A~n be h.e!~i!ili~i~?~vembe~iii!i~!ii~!i~:*:':".~ii::~ill the vacancy. He felt the City Clerk's positioni::i~i~iii~, apP***~i~!i!iiiiliB~ever, "~i~:~'~il has not been successful in making a case to the easure in the past. He felt Council should take the time to provi~ii~!i~b!.ic witl~:~::~!iii~rmation regarding the suggested ballot measures. Ma or illi, Council in that had Council failed to make a~?:~ppointme'~iiiii~iiii~?~:ildeadline of May 12, it would have been forced to hold a spec~i?~lection. A mai~ii~~rn of the City Council was that if a special election was held in ~ember 1999, C:~"n~i~i' would have been without a Councilmember for six months. jii~::~:Pruden, ad...v..:i~d that she has been a voting inspector at the polls for the past 10 ~!iiii~....d.......d.i.s....C....::,U..~~ how prepared the voters are in Ukiah. She is opposed to the Council ~~i~i~i~~0r a special election. It was her opinion that the Mayor's term should be f~i~~?~!~:~i should be included in the November 2000 election. She felt it would be highly irresponsible to put "none of the above" on the ballot and felt it is a vote of no confidence and does not excuse responsibility for picking a candidate. She felt the City Clerk's position should remain elected, as she is not willing, as a voter, to give up any elected position. She reported that she has worked with City Clerk Ulvila and felt she is conscientious enough to be concerned with someone running for the position of City Clerk June 2, 1999 Page 14 of 26 who is not prepared to do the job. She was unsure if qualifications could be crafted for that position. City Attorney Rapport advised that Council cannot define the City Clerk's position. Ms. Pruden was of the opinion that the City Clerk's position does not pay enough that people are going to take it that don't know how to type. She felt the City has had very competent City Clerks since 1876 and should be able to continue in that manner. She was not opposed the Council presenting the matter of the City Clerk's position tDii~e voters in the year 2000, however, she opposed c,,alling a Special Election ..i~:.Nov~er 1999 due to the cost factor. In closing, she a,,sked, How many times do we..:~::.t..-~ii::~ll you, that we want it to be an elected position? ..?~:iii~iiiiiii~ili:~i~ "~::iiii?iiiiiiiiiiiiiii!iiiiiiiiiiiiiii?~'.:~ ......... Coun, cilmember Ashiku inquired of the City Attoi~ if it is..~E~['i:~i~ii~!i~i~..s.t th.e..:?:~i~, Clerk s salary downward and to create a Deputy ~ii~.Clerk=~:~ition. then do most of the work and be paid a comparabi~i~!.a..~! City Attorney Rapport advised that it is possib!'~i?~i~!i!iii~i~:'s.:t., the City Clerk's salary downward, but not for the incumbent, and to appoi~i=:a position. It was his opinion that it could create an awkward situa[i....o..~..wherel~ii~!?~:...e a statutory officer who is not paid very much ..... ??:iii~i~!iiiiiiiiiiiiiiiiiii?iii!i?i!ii!ii?~ii?:~ .... City Manager Horsley advised that.:~'y citi~i~i~iiiii~i::~.a..~~::~''noted it is best to have someone appointed who can perfor~!ii!~e job .d~ie$?~iiii?iiiiiiiiiiiii?iiiiii? .... Councilmember Libby could.:~iii~bstify.:~i::~ending..::[~( dollars for a Special Election in November 999, when it ' inclu ' o. ection i. 2000. She did not feel this is a.n.. emergency .i~su~?' She n~i [..h::~:..tiiii~bncil, at their last meeting, suggested additiona?~:~ii~':.A.lJot mea...s..~?~iiiiii~, see~i~i~iiiiiii~::~iifY holding a Special Election. She recomm~~ii~aiting:~iii!!~ii~gularl~:~duled election in November 2000. Consensu'~ii!i~:~iii~.:c..il wa~:::;!ii~iiiiii~!ii~ll a Special Election in November 1999 for Ballot a. I~duction of o~i~'e Amending Chapter 4, Article 1 of the Municipal Code ..::.::~:'be Titled Parks.."~!iReCreation, and Golf Commission ~i'~iiiiiiManager Hors..:!~ advised that the matter concerning merging the Golf Course G~ittee and the?:~:~:ks and Recreation Committee was previously discussed by Council. ~~~iiiii~lopment Director DeKnoblough advised that at their respective April m'~~!?~i~i~':Parks and Recreation Commission and Golf Advisory Committee discussed and approved merging the two bodies to create a Parks, Recreation, and Golf Commission. The purpose for combining the two bodies is to increase Commission efficiency and create a broader base of public representation and perspectives in considering the City's recreational assets. Prior to 1989, the Parks Commission was the only body that reviewed the recreational assets and the Golf Course. During this period June 2, 1999 Page 15 of 26 of time, the Parks and Recreation Committee was experiencing significant activity due to the availability of state park bond funds, growth and increasing recognition of the Grace Hudson Museum, and increasing City participation in providing recreational programs. The golf community felt that, due to the Parks Commission time being dedicated to these other areas, golf course concerns were not adequately being addressed. Consequently, they requested a temporary ad-hoc committee be crated to allow specific input on golf course matters. That committee was created for a period of one year, and was extended the following year for another single year term. By 1992 when the second Committee term was to expire, the Golf Course was in the midst of significant change.:.~!i~hrough the reconstruction of the Clubhouse, the pending purchase of the ba.:~eig.~iii~'les from the County, and the hiring of a new Golf and Parks Superinte.ndent. B~:.d..,.~::these activities and the resulting need for public input, the City Coun.~[~i!ii~..eter~~iii~iii~..ontinue the Golf Advisory Committee indefinitely .... Both the Parks Commission and the Golf Com~ili~ee appropriate time to combine the two entities to cor{~!~::~:!!~ity s recrea:{:i!~iiiii~:~ts as a whole and increase the efficiency of both bodieS?~iiii~iiii~!,SO felt that by c~::~:'~)ining the two bodies will provide increased public interest and .b...i~~ii~..m. ber_representation which will result in enhanced discussion of the issues He recommended, should Council determine.:-i!i~iiiii~eed wit~::ii~i~:i'ng~ the two bodies, that the new Commission ultimately be co:~i~ilili~iiii!~,e...n me~i~s and that an attrition period extending to June 30, 2002 be p...r:g~i~'ed to.:~i~ii~!i~iiiii~~{~'terms to expire. Several members will have terms expiring be~n Jun.,e..:iii~0 0{?:{~ii~iii~:.. ~':and 2002. The number of seats would be reduced as these ve:~:ncies .o..'~ur sho~!i~e member in question opt not to continue. Of the 11 members:;:~en t~?:~wo bod.~§, only three members are eligible to serve beyond June 30, 2~2!:" He r:e~mmen.d~' Council introduced the proposed ordinance which would est:abi~ the P~i::::~:Rec~ion and Golf Commission. Upon a~i~!i~i~:::.by C'&~ili~ber Li~i~?~'I' DeKnoblough advised that there was an unanim~.:.~!!!~iii~:..both'"':~~i~e and Commission to combine. Mayor Mastin'i~~'.d..::his C~ii~ili~ith the Parks and Recreation Commission having different g~i~iii~i~~~..thar~:~::~e Golf Committee. He also expressed a concern with some .c..~::~'ges taki~iiii~iiii~:.the Golf Course and members reporting back to the City Cou~ii?:'" There are a ~~:.~::::~f park projects which will be active in the near future, and he.:~::ied his concern,i~a~?:::"~embers of the Golf Committee may find little interest in the :::::::::::::::: ,,.,,..... d.~!opment of parks...,.iiiii~i~ikewise, many members of the Parks and Recreation Commission ~i~ind little inter.e.~:?in the activities at the Golf Course. ~iii!iii~:..~~i~:h advised that both the Commission and Committee had similar d:i::~~i~?~d they resolved to have a trial period. Budget hearings have been com~i:~:~:'"with both groups present and noted that these are concerned citizens devoted to spending time to deal with the issues at hand. It is valuable for each to hear the needs and objectives of each commission. Councilmember Ashiku expressed similar concerns as Mayor Mastin. He noted that both June 2, 1999 Page 16 of 26 groups are entering into an active phase. He noted that the City recently purchased equipment and an advantage of combining the groups would be that equipment could be shared and used more efficiently. Bob Burke, 402 Wabash Avenue, advised that he has served the last 1% year as Chairman of the Golf Committee. He advised that the Golf Committee is highly in favor of combining with the Park and Recreation Commission. It is their feeling that the Golf Course is a big part of the parks and recreational activities of the City of Ukiah. The Golf Committee, as a group, felt it would be beneficial to the City to combine th....:~i:~[wo groups. ..::i:i:i::':':" ':~!:' ..::i:!:i:i:i::" ........, City Manager Horsley advised that for a long time, the Parks and..:~~i~:n Commission met on a quarterly basis because there was not enou..g~ibusin6~!iii~iiii~t...e, rest. She felt it would not be a problem to combine the two group.~iii?ii~i~:~ed on ~iii~~t. of busine..~' interest at this time. ~i?iiii?:" ..::iii:::~i~ii? ........ ~?:?~iiii~iiiiiiiiiiiiiiiiiii~i~!!ii!ii::~:~: ........... Mr. DeKnoblough discussed the membership an~!iiii~:.~_~::i~:'the both con~:~i!~i? Councilrnember Baldwin appreciated the interest:?:~iiii!~i?!!i~:..committees to combine, however he questioned those that are enthusiasts':~i~" an~':~ii~iiii~..e..,rt, such as golf, being able to devote major amounts of time to passive ..r:..e..:~eation ~:~iii~ii~blic access or a rim trail, Gibson Creek, or expansion of Rivers.i...d..~iiii~!i~ii!::i.H. e inqu'~i~i!ii~~i::::~r. Burke if the Golf Committee is interested in talking about.:~i~?:ii~~iiiiiii~.t....C... .? Mr. Burke responded that the Golf C~ittee ~ts i~ii~~:~he time and were energetic about putting the committee tog.e~r. The~' are ti~es'~vhen there is not much on an ..::i:i:i:i:i:i:i:i:i:~' ':::::::::: ..... '"" agenda, and as he recalled, bot,~:ii~bps w..:.~ very e.~:getic about working together. He confirmed that the Golf Com~i't.'.'~be is ig~i~ested ..idi~ii~ealing with parks and recreational issues .......... ?:::ili?: .... !ii!ii?' Council~~[~::Smit~i~i~iiii~iii!i~iiii~portar~:~::::i~?:::::~'y attention to what Mr. Burke and staff has said witl~::~~:.~!ii~::::both ~j:~!~!::...S:.:..enthusiasm for merging. Councilmem~iiiiiii~i~Y:.. fel~::::ii?~iiiiiii~~iii::?''C°uncil should take into consideration the recomme~~::~i~iiiiii~iiii~mitt'~!~ members and staff's recommendation, noting her confide~ in their Di~sion continued.~bn~erning combining the two groups. The matter of both groups g:~.~rating fees fro..~?services was discussed and that the Parks and Recreation ~~ission has b~".{~ passive and active sports. Goals and objectives of both groups ~ii~i~:..c. usse.d...:~i~ell as their membership. Concern was expressed that members from {~!i~i~?i~~:'0mmittee would be more interested in golfing concerns than with other r~~i~i?:::':::~:~eds in the community, and likewise for issues concerning the Parks and Recreation Commission. MIS SmithlAshiku to introduce Ordinance Amending Chapter 4 Article 1, Section 1001 of the Municipal Code to be Entitled Parks, Recreation, and Golf Commission by title only; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku, and June 2, 1999 Page 17 of 26 Mayor Mastin. NOES: Councilmember Baldwin. ABSTAIN' None. ABSENT: None. City Clerk Ulvila read the Ordinance by title only. MIS Smith/Libby to introduce Ordinance Amending Chapter 4 Article 1, Section 1001 of the Municipal Code to be Entitled Parks, Recreation, and Golf Commission; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku, and Mayor Mastin. NOES: Councilmember Baldwin. ABSTAIN: None. ABSENT: None. ..:,:,:,:,:.:,- 10b. Council Consideration and Approval of Resolution A~brovin~:?Ador)tion of California Public Employees' 457 Deferred C0..mpens~!~:~:!~ - Personnel Officer Harris advised that in the recent!y~!~t.:ified ~iii~.~*'.i~iiMemorandum o.f Understanding, the City of Ukiah agreed to a..~" the C...~i~:,...:..*'.'~i?~i~iii~7 Defer.r,.~' Compensation Program in addition to the two exis~ii~ deferr.~i~i~3m:~~~P..r.o..,g~s currently offered to City employees. Adding the C~ii:~::ERS ~:' Plan to deferred compensation programs will give all fuiiii~!i~i!i~ployees in ~:iiiii~*'~::'added alternatives in terms of investment selection, price, ~ii~!i~ilbj:!ity. There is no cost to the City to offer this additional program to the employee~i~ii::::~~i~::is administered similarly to the City's other two Plans and requires adoptionii~ a R:~i~i~iii:.a. pproving adoption of the CalPERS Deferred Compensation Program.::a..n.d.. authori'~i~iii~iiii~ity Manager to sign the adoption agreement ..... ?:::ii?~iiiiiiiiiiiii?i!!i!i?ili!iiiii!iiiiiii!ili~!i?:::~ .... MIS AshikulBaldwin approving Reso!~i~i'~~n No~iiii~i~i~iii~~i~g Adoption of California Public Employees' Deferred Compe....~ation Pip'n; c~i~iii~::the following roll call vote: AYES: Councilmembers Smith Lib~?:Baldw:i~i!:?Ashiku~ii?~nd Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: N~!::i?? :~i~iii!~:~:' 10c. Receive for co~m~i~ Prop,~iii::::ilM~~:docino Solid Waste Management Au~Atv 1999:~~?~iscal Mike ~:"'./;.:.~~ii::Gen~:~iiiiili~i~ger -of I~:~'~'docino Solid Waste Management Authority (MSWMAi::'~::~i~ii~..at M§~~iiii~i:.d. es to cities within Mendocino County key mand~ated services that"::~!i~i~iction '~i~erwise have to provide at its own expense. :5ome of these serv.:~iiii~i~i:.*::~.the H'~::~bile, Household Hazardous Waste Program, which is based.~ii~:i::~*:i:'::~!~ii~i~s Uk'i~h with the most frequent hazardous waste service for any ci[~:~ the North**':~i~iiiiiii~luding Santa Rosa and Eureka. In addition to their eight sch.e~led hazardous'!~{~?~ollections in Ukiah, they are also able to handle business wa~'* on a daily basi~!iiias':Well as emergency situations to local households in the local a:.~!ii Demand for th~?Haz-Mobile service is increasing steadily and their vehicle count iiii~p 16% in 1...9..~::i and another 8% in 1999. They are especially happy about the ~~:..d..:.u..s.e...::~:~i~!~' Haz-Mobile by private businesses whose hazardous waste they can t~?!~ii~iii~i~iii::~'~:action of the cost that might be charged to them if each business was re'~i~?~i~?:::~'~ke a special call for service from the Bay Area. Their Haz-Mobile program was honored last year by the State of California as the outstanding rural hazardous waste program in the State. The demand for other MSWMA services is increasing as well, particularly the removal of Freon, oils and other hazardous waste from refrigerators, freezers, air conditioners, June 2, 1999 Page 18 of 26 washers and other large appliances before they can be recycled under the law. In the past, there has been a severe public health problem with illegal dumping of appliances in Mendocino County. In keeping the removal charge to a minimum, MSWMA is providing the removal of Freeon from these appliances for free at seven locations in Mendocino and Lake counties, including Solid Wastes Systems in Ukiah. Since the program began 16 months ago, they have saved the public over $20,000 in fees. This new activity was honored last month by the State of California which gave MSWMA a program innovation award. ,.:,;.;,:.:.:.. ,.;::::::::r.-.- .?:iii~ ....... i~i::!?:?:::~i .... FI~. discussed MSWMA's assistance in helping cities .and cou..~i~A.::~t the AB 939 ; n ate of s0% recycling by the year 2000. Since the...:i~ili!?sh h~".~iiiiii!ii~th in Ukiah and ' rce to romote re~:::::~:~i:i:~ , MS~~i::~::i::i~:'~is need Fort Bragg, don t supply a sales fo P .... ~:iii:~" g ==::==============-=======:==:~=========================?======== ............. ~:.:.?-.-. has been intensively canvassing businesses other portions of the County to get them to use m~ recy~i~'' servi(~!~ii!ii~i!i~~~ed their Americorp worker in Ukiah who deserves sp~i~!iiii~...e.¢::~nition for thi~::::i~~t and challenging task. He discussed other programs':~::i~ii~~.MA which incl~'~:~'~ gypsum board recycling and free electronics recycling in co.~~(i~?~:ith the Ukiah Landfill. One of their most important recycling services...1;~i:.i~ities i~:~::ii~i?!~a...r..ation of all AB 939 reports and documentation which is require.,d..~::::i~!i~e::.!aw. L~::~ili~!::{hey completed the entire County Waste Management Plan..::a~ii!i~~iiiia speci~i~i~aste general study in 1997 which showed the City of Ukiah ..a!i~i~.8%?:~~i~i~i!ii::i~s.:t.-'¢~d of the 27% which had been previously estimated. Each yeai?{hey rate and report it to the state. Their estimates for 1998 sh..o~:iiihat th.e.~i~ity of ~i~i::~:::'improved to 41.5% recycling. Looking ahead, MSWMA is pr~'ing th.~!!!ii~he Cit.y::~i~!:~duct a special workshop on its AB 939 situation. He will presed~?his pro¢~:l~:::to:~:~ff in the near future. He reported that MSWMA !.~S forward.....t'~iii!!~ihue w°~~i~:iY with the City and its hauler to get the best po.s.~i~!iii~ycling~:~i~~::.Ce. If t'~!i::~ii:'~; to meet the 50% mandate, they will assist the citY'::~{~ii'".~!i~..:.~i~'0.:.r., an ~i~i~O:f... time to comply. He advised th~i!i~i~~MA b'~ii~ii~poses a decrease in the MSWMA Surcharge from $5.50 to .~i~:~::::::::~iiii~iii!iiiiii~..h, is ~'iii:::?be the second consecutive annual decrease in the Surcha~::i:' He n°i:~iiii~iiiii~he, decrease represents the cost efficiencies of MSWMA's prog~:i These effici~i~ii!~!~ve increased further because their Board of Directors put twoiiii~portant contra~ '~i to bid and obtained major reductions. In the Household H~!rdous Waste Di.s::~sal Contract, they changed providers and they project an annual ~gs of $25,000:~::ii~i~By consolidating and rebidding their insurance coverage, they can ~iii~other $5:i~' per year. ~i~iii~~!::::~0ted that Mr. Sweeney has done an excellent job in managing the agency and':i:~:::~i'~ent by the success of the Hazardous Waste Program, Illegal Dumping Program, and meeting the AB 939 mandates. He has managed to operate these programs on a "shoe string budget". Mr. Sweeney responded to a question concerning the Americorp Program Sponsorship June 2, 1999 Page 19 of 26 and noted that MSWMA makes a $7,000 lump sum sponsorship payment in order to obtain the full time services of an Americorp worker. Americorp is a federally funded program that promotes community service. In response to a query concerning mileage expenses, he advised that MSWMA currently owns one vehicle, with a second on order. At times staff needs to use their own vehicles for MSWMA business· Their mileage is logged and reimbursed at the current IRS rate per mile. In response to a query by Councilmember Libby concerning the Illegal Dumping Program and participation by non-profit organizations, he advised that MSWMA will reimburse dump fees of any organization or individual who undertakes illegal dump cleanup off roadsides and publi.c....~i!i~aces. He welcomed the City's assistance in making this fact well-known in ~....e. community. He felt there is adequate funds available in this fund for future years. S~i~...~:i'e be demands exceeding their budget, he felt there would be an incre~::fro ,m..i~i~i~erve to cover the funds needed. He noted that information concerning ~:MA s obtained by visiting their Web site. :iiii?~ii~ .... .:~ili~::iiiiiiii::i~ ........ ~:::~ii~iiiiiiiiiiiiiii!ii!iiiiiiiiiiiiiii!ii!iiii!i!!i~ ...... ~:::??' · .' ..:...: ~::::: ::., ,....,.,.. rt Consensus of Council was to receive the Councilmember Baldwin requested Council heaiii?i~iiiii~::~::before Item 10d due to audience interest and the lateness of the meetin~i~ii? 10f. Discussion and Possible Action Re~ii~... Resol'~i~!ii?:~(:lainst~ the War in Yugoslavia and to Close Lake Mendocin~¥~~i?.ombu~i~n V~ater Vehicles on. Various Days, as Submitted by Councilmember Baldwin advised th~i?:~ayor..M:~stim~ii~ided amended Resolutions with alternative wording for the:?:::i~olutio..~~'' he su~i'tted to Council, and found the altematives agreeable. He read.~!i!~rop0....~!a Reso!~Bii~n, as amended by Mayor Mastin. He felt it is very important and.?~:~es th.a:.:~Puncil..:~iii~i' support the Resolution against the war in Yugo. slavia .... ~::ii~i?: ..... ii?~ii?: ?~iiiiiiiiiiiii!iiiiiiii~iiii~i~i?:iiii?~i? Linde ~i~?:::~::.!20~:':'::::~~i!i?:::Boad, "~::~i~'~d that she listens to a radio program each morning '~iiii~iiii~X De~~!ili..N.'.~..o.TM, and they have given a complete discussion and analysis of t~i~iiiiii~.h.....e disc~~i~:~iiamount of bombs being dropped, casualties of the war and felt..::~i~ii!~{i~?:ii~iS ins'~iiii~i~d called upon the local government to resist this inhumani.t.~?§~:::~~A~::Cou~ilmember Baldwin bringing this before the Council and urged ..~ncil s sup~i~ii!ilili~?:opposed referral to economic sanctions and embargos in the l~'olution, noting?~i~i~iii~'0ple have died due to lack of supplies. J~ McCowen, Uki.~il felt what is missing from the Resolution and the last presentation i~iii~;~acknowledg~'t of what made it necessary, in the minds of some individuals, that ~{~iiii~eed~id::~t.:~i?~ii~e taken. He noted that the Resolution makes no mention of Mr. He questioned some of the methods in which the war has been carried o~iiii?~iiii~::::~nintended civilian casualties. He discussed Councilmember Baldwin's reference that if people had stood up to Hitler earlier, how many lives could have been saved. He felt the Hitler in this scenario is Mr. Milosevic and discussed the original wording of his resolution concerning the bombing and immigration. He did not feel there is any balance in the resolution and cited examples. He felt there are many things in the Resolution which could be debated. It was his opinion that the Council has enough issues June 2, 1999 Page 20 of 26 within its jurisdiction that needs attention and should get back to City business. Ross Liberty, 3001 Boonville Road, agreed with Councilmember Baldwin concerning the war in Kosovo. Despite the fact that his company, Factory Pipe, manufactures exhaust systems for personal water craft and employs over 30 local employees, he has no philosophical problem with closing Lake Mendocino two days a week to motorized water craft. However, he questioned the wisdom and intentions of a Councilmember who grandstands by bringing this issue to Council when it is clearly beyond the scope of influence of the Ukiah City Council. He is on the Board of the Mendo~no..:;~:~.~:~..~::.. County Employers Council and noted that many items are brought b..ef, ore t~ which are discounted because they are not specifically relevant to t..heir me .m..'".~,.~i~i~' take up these issues, no matter how passionately we may feel abouL~t.:~...m, ma~iii~iii~iiii~...rve to dilute our focus from the issues their members elected them t~i~centrai~iiii~iiiiii~i~::i~:.f..elt the Uki.a'~' City Council has enough issues within its jurisdicti~?~nd it,is..:~'"~'~i::~iii~~i~.P the.,.~? Terry Poplawski, 612 Walnut Avenue, advised~ii~t.':~ii::ib~i!¥:~' in favor concerning the war in Kosovo and felt that, althoug~iiii~'.~i.i...does not set f(~'~;i'gn policy, there comes a time when one must speak out on.::i~!~~iii..s, sues. He discussed his involvement with the North Bay Labor Council ad~::hi~::~!:'~~:::.resolution to stop the bombing, was eventually passed by that Agency:,::::::iHe urg~:~ii~ii~ii~::i~Council to pass the resolution to stop the war in Kosovo ..... ~?::??~?ii?~i~i!i~?~?~?~i~ii::::~ .... Councilmernber Ashiku discussed hi..s..::~i~¥~ania~ii~i~ii~iii::~n~t:'i~g that the war in Kosovo hits close to home with him. He fel~iiii~:hat hisi::i~rs'~i~i~i~i~i~ii~'gs are irrelevant and that presentation of some issues in tb~iii~soluti:O'.::~:"are mi~'~'i'esented. He advised that he cannot support various forms .o.,:~:.:~i~ic cl:~sing an..~i::::~oes not agree with the examples stated in the resolution. Althou~::::~he has:~::~rsonal..f~lings about the war, he felt Council ;:::!.....:::? .':':': ..:.:..... ..:.;...:.:, · should deal...with local iss.u:.es;i~?~iii?:' Counci!~~::.Smitfii~i~iiii~..e opini~i~i~i~i'i~;:'"Council should pay attention to the NATO Committ~i~!i:":.~A~:the P~!~iii~es. olution contains many faults. He reported receiving calls today":~i~.l:.citize~ii~':..~!~iii~i~ng him of his responsibility to the City's needs. If Council is to c.~i~i~'.e.:,resol::~i~?:~'e recommended there be a Public Hearing so that citizens c..o.~i~iii::fi~i!i~i~rtuni~i~~::'to voice their opinions. CouP&ii:member Libb~i~i~ that people across the nation are making their voice heard but~::!~i~ that Council sh~l~::!i~'ake care of City business first. She wording in the proposed R~'lution articulate~?~iMr. Baldwin's personal reasons and she opposed asking Council t:~!!i~ak for him..S..:~:'took offense to his introductory letter regarding City Councils and ~ii!!i~.r. many.~:he inferred that if Council does not vote for this resolution, we are like ~~~iil~?~ii~ii::~azi Germany. Mayor Mastin advised that he was taken aback by Councilmember Baldwin's cover letter, but understood his resolution. He felt it is Councilmember Baldwin's right to go forward with anything he feels may be City business. He commented that he provided alternative wording to the Resolution, and did not discourage Councilmembers from bringing such matters forward for Council consideration. June 2, 1999 Page 21 of 26 Councilrnernber Baldwin felt the argument that this is not City business, is "hogwash". He discussed the cost of bombs, noting that it represents money that could be spent in the City. He noted that the President tells the youth of this country to resolve their problems nonviolently and discussed the lesson we are teaching our youth through the war in Kosovo. He discussed NATO and felt that the media has not been giving Americans the whole story. He discussed other invasions which have taken place in the world, as well as terrorist threats and bombings in the United States. It was his opinion that when the nation does something that is atrocious and immoral, we cannot be silent. He felt it is a local issue and it is money we could have used to pay off the national debt,.?':::~ake..:..~.:~:~.~:. Social Security more secure, or used locally to underground the City's ut:i..ti, ties...::?:::!i? .... He read an amended Resolution calling on the Unit.~ii::~:State~iiiii~!ili!i~i'-.[ Military Strikes Motion BaldwinlMastin to approve amended Re~i~ution Congress of the United States to Halt Military Stri~i~?~g~:'St Yugoslavi~;?!i!~iii~'nded; failed by the following roll call vote: AYES: Counci'i~~S:..Baldwin and U~'~;'°r Uastin. NOES: Councilmembers Smith, Libby, and Ashiku...::?:~~ii~i~;:.None. ABSENT: None. Terry Poplawski, 612 Walnut Avenue, advised that'.fha own~::~ii!~iilboats and sails over 100 days per year at Lake Mendocino. As a.:s.;~ii~iiiii~::~:discus~iiii!ii~i:?'~oise of jet skis and expressed his concern with the operato.r.?S.;!~ii:~i~::~ii~ii~i~ii~.,..who a[~i~i~'°ung, inexperienced, and create a danger to others. He :..d..i~sse~::ii!~~ii!ii~t.:~i?~eating their own type of erosion by their wakes. .:~i? ..::~?~?i ....... Councilmember Libby inquire~ii~[~.i~'uncil~hnber B .a::..!~in had a signed petition regarding the matter of banning motorizediii~:ater craf.'..{..~i~n Lakeii~M'endocino. She also noted that she ........ '-'.'- .......... ......... ..~.::i:~:!:i? has no quantitative informati~?to stud~i~ar.-:dii~~:the proposal. ..................................... ~:?:~::~i~iii~::~::~i~i~:~:~i~::~??:~?:~::!::~:?: Councit~~r:.,.aal~iiiiii~i~..e.d that'::~i~'i'd not have a petition, and that his proposal is just a~i::ii~!ii~i~had. ~!~!?i~i~S:..e.d the seasons and how it is nice to appreciate the quietness oi~::~{~iii~i::~::...In re~~iii~ill~an inquiry by Councilmember Libby with regard to how many Mr. Baldwin advised that it is his hope that the matter with Senator Thompson and the Corp of Engineers. He dis~ed the ba'~i~!iii~i"..'.skis and some boats on Lake Tahoe. C~'Cilmember Smi.~ ~i:Scussed his experiences at Lake Mendocino and noted the U~e conditions of..:.t:~ personal water craft near the dock area when it is crowded. He ~~rted the ReliCtion which recommends to the Corp of Engineers that the matter ~~}~ilo. be studi~"further. ~~ii~~'er Ashiku advised that he owns a boat and spends time on the lake. It was his opi'~'i~n that going by the jet skiers at the dock can be very dangerous. He did not see any justification to closing Lake Mendocino during a specified time period He did not see or during the winter. He felt that the jet skis should be separated from motorized boats, possibly a two-stroke engine. June 2, 1999 Page 22 of 26 Ross Liberty advised that the U.S. EPA has been addressing water quality issues along with air quality. They have talked about jet skis polluting and putting MTBE's and hydrocarbon fuels into the water. He discussed the life span of hydrocarbon fuels to be 11 days. He advised that CARB is mandating that by the year 2003 there be a 75% emission reduction of hydrocarbons and other pollutants. CARB is requiring that emissions be reduced by 95% by the year 2006. It was his opinion that personal water craft manufacturers are already complying and the water quality issue is being dealt with. He noted that it is illegal for jet skis to come within 50 feet of a boat. ::i!!::. ..:.:.:,;,:.:.: Councilmember Baldwin discussed noise being a significant is.s:..99 in 9~?~aily lives as well as those that visit Lake Mendocino. He noted that the propo..~?~g~lution~¢~¢¢~:.~¢¢~.:..;:, asks the Army Corp of Engineers to consider the proposal. MIS BaldwinlMastin to approve Resolution 99~, Callin. g?:::~n ................... Engineers to Institute a Policy to Close Lake Me~:cino t.O..;i?~'ternal iter Going Vehicles During Various Hours. :~i!iiiiiiii!iiiii?iiiiii!i?~i~ii::i::ii!::::::ii?i:':':~'' . ..................... Councilmember Ashiku recommended deletion of ~~!iii~.d Tuesdays in the winter time to the Resolution. He also recommended elimi~i'io~:~:'i~iiii~~:?:boats and jet skis. He discussed the concept of sharing and making...~.e...:~::!ake av'~i~i~iiii~iiii'..everyone during all seasons. During the summer months, t.~¢i~ii!ii~i!ii!i!aDd its ,~~!~'ings is used as a recreational area. Many people who w.o..:~g!~ii~::::i::~ii~ii{h....e., lake ~r 5:00 p.m. and noted the hardship the restriction would have..:d~n the.~i!::::iii!ii~i~i!~6~di~:ussed economic impacts to the lake by banning its use durin~i!i~rtain..........!i~:~s' Discussion followed with regar¢i~???the A...:~¢~/Corp ..~i?~Engineers calling a public hearing · ::::::::::::::..::::::::::.. and public input on the matte~ :::::~ .... · ....... ' · ::::::::::::::::; ,.::;::::::::: .:.:.:.:.:.;.:.:.:.. ,.......,,.... :i:i;i:!:!:i:i========================= ..:;::::::::::::" Motion ~~::.ving Res~i~i?~i99-44 ~::i::i~ii!~i'~::bY the following roll call vote: AYES: Council~~S:..Smi{~!iiiiii~~'.'.n.,.. and ~::S:~:"Mastin. NOES: Councilmember Libby and Ashiku. '"~~i~::;:::..N,,on~!ii~i!~~N~: None. Councilmember Libby noted for the record that she is ~;:~i~iiiiiiiiii~::~::.beca~i~i?ii~i!!i~;0es not have any numbers to quantify the matter. ~0d. i.~ Members to Various Committee Assignments Mayor:M:':.... ~-'Stin advise~ii{~{iiii~i~¢e the departure of Kristy Kelly from the City Council, and the:::~0intment of R&~.!!~ii~, several committees need Council assignments. He also ga.:.:.~i~!~:the Council an ~pS:hunity to voice their opinions with regard to their interests in s~ing on selected C.~:mmittees. ::::::::::::::::::::::::: ..::~:i:i:i:-' ::::::::::::::::::::::::::: ..:::::::::::' .~!~iiii!i:.ii!i~iiiiiiii!i~!i:. ..::i:i:!:i:i::" ~~i::!mernb:..e...'~ii~i~bby noted a correction to the Committee Assignments, that she has ~iiii~iii~iii~?~hamber of Commerce Liaison. She is willing to drop her participation in::~?~ii~!~!i~:::'::~"treet Program and she would like to be appointed as the representative to MCOG, rather than the Alternate. She is interested in the Council/County Supervisor Committee as well as the Ukiah Unified School District Site Selection Committee. Councilmember Ashiku advised that is willing to drop his participation in the Finance Review Committee. He would like to remain on the Courthouse Facilities Planning June 2, 1999 Page 23 of 26 Committee and the Investment Oversight Committee. He noted that if a Councilmember is interested in taking the Alternate seat on NCPA, he is willing to forfeit his participation. He is interested in serving on the Council/County Supervisor Committee because he views the committee integrating well with LAFCO and creates continuity. He would like to attend the June 25, 1999, meeting with the Ukiah Unified School District Site Selection Committee. With regard to the Skateboard Park Committee, if no one else is interested, he would be happy to serve on this committee. Mayor Mastin noted that he has a file on the Skateboard Park Committ~..~?;and is also ..:::::::::-.-.' interested in its development. .~ii?~?:::~::..~ .... ?:::iiii!i~::~ .... Councilmember Baldwin advised that he is inter.e'~d ins~::iiii~i~..:..on MTA as an Alternate. He is also interested in attending the Ska~:~'rd Pa~!~~!i~e. He wo .u.!~' like to remain on the Mendocino County Inland W..~.~r and p~'r":~~i~'.i...o.n Russian River Watershed Community Council..iiiiiiiii!iiii?ii~ .... :?:? Councilmember Smith discussed his interest in tl ' i! !i ii Street Board of i~'i::~:~tors. He expressed his interest in serving on the League of Ca..'.:ii~!i~iiiii~i~ii.e. s Policy Committee and is interested in being an Alternate on MCOG. -:~ii~ii ~?:?~ ....... ~::ili~iii?ili?iii?i!iiiiiiiii?i!i?!iiiiiiii?ii~iii::::iii~ .... Discussion followed concerning the Leag:~i!~i?i~i!ii~.f.:ornia (~i~i~i~ii~::i:icy Committee and that it is left to the discretion of individual C~'~ili~~]S.~.to pur~~ their interests on one of the 12 statewide policy committee.s,:.~i?~iii~hose~i!~:i~!~i~!?s.h.d~:id contact the League of California Cities. .~i?" ..::~i!?: ":'::~::ii~iii?iiiiiii!ii!iiiiiiiiiii!iiiii?'~ Councilmember Libby advis~iiii~t she.'iii?~i~ willing.~!~ serve on the Recreation Center ::::::::::::::::::::: ,:..,:,,-:,:, .,::!:!:::.. Group. She noted that she ~i:d like :t::~iiiiii~::0ntin .U.:.~i~ii~:~rving on the Sun House Guild and Mayor M~iiii~osult~i~ii~iii~i!i~?:::Attorn~i::i~'iding contacting individual Councilmembers regardin~i::~i~~ts. Fi:~!~i~i::i~bat he will review the recommendations and bring the matter back~::~{ii~ii!~.. !~t Cou'~ili~ii~ii!Dg· City Atto.~i::~~iii~i~d tI~**~i~::he may contact other Councilmembers as long as he does ~ii?:~ontact a '~~i~iiii!i~f. the Council, and they, as a result of his contact, do not cont.a'~::"other Council~~:~S. ,:,:.:,:.:.:,:,: ..,,,,,.,, ,..,.,.... 1.~i!iiil~ Set Dates an..d...!ii~imes for Fiscal Year 1999-2000 Budget Hearing ~i~i~anager Ho~ advised that in the past, Council has taken 2 ¼ days to review the ~~t:.~.::~ere.f...0..:r.::~iiiii~{:aff has selected a three day time frame of June 22-24 as the dates for t~!?~~i?~i~~t hearing to meet the adoption deadline of June 30, 1999. Discussion followed concerning selecting a time to start the Budget Hearings and the hearing time schedule. Consensus of Council was to set the dates for the Budget Hearings for Tuesday, June 22, 1999, from 10:00 a.m. to 7:00 p.m., Wednesday, June 23, 1999, from 10:00 a.m. to June 2, 1999 Page 24 of 26 6:30 p.m., and to set Wednesday, June 23, 1999, at 3:00 p.m. as the date and time for a joint meeting with the Ukiah Valley Sanitation District. Councilmember Ashiku advised that due to his work schedule, he may be a little late to the hearings. 11. CITY COUNCIL REPORTS Councilmember Smith reported he missed the last Council meeting because he was in Sacramento visiting State legislatures over issues relative to Ukiah Valley ~ociation for Habitation (UVAH). He discussed the Governor making appointrn~nts a~::i¢~mphasis on the budget related to education and unions. He discuss, ed the .~.r..:~:"not wanting to Councilmember Libby reported that the Sun Hou~:'~iWi'll be for their new wing this Saturday. i~?~i~?~: ,?;:':: ..... "~:':'i::i!iiiiiiiii!iiiiiiiiii!~!i!iiiiiiiiiiiii!ii? .... Councilmember Baldwin reported the Russian ~i~iiii~ocil selected or~':':;ho will be voting members and discussed the composure of th:gi~~iiiii?iiii~ agency group, which is trying to parallel itself to the Russian River Coun~ilf~i'' is ~ii~ii~parately to make sure they can assist or affect the citizen body. T.h.:..e.....y:..~.r..e still ~::~ii~i~ii~ the receipt of $6 million from the state and federal governme~iiiii?iiii~ii!~ii::::..t..heir h°'~i~::'they will be able to obtain a good data base from these fun..,.d...i~i?~i~ii~i!~~.e.,.d citie:':~::ilia'nd counties not being Mayor Mastin reported that on Magi!ii'l, he.::~:dresse~ii!~'l~'~ Rotary at Carl Prudy Hall and gave a speech. The next day.i?~:~iWas ignited to B~dha's ..... birthday at the City of Ten Thousand Buddhas and was s~'ised th~( ~e wa .s.?:¢~:est of honor as the Mayor of Ukiah. An interpreter was present:::~e, t~slate h!~ili~~iiiii~e felt it was a cultural experience and encourage~iii~thers to .v.:i~i~i!i~ii~enter ~ii!~i~?{'heir lunches. He rep0'~i?i~i~:.:S-..WM~ii'ii~iiii~A,met last week, mostly in closed session. The transit center is:..';f-:orwarS~:;::~ii:.~!iMTA Board was asked to provide a resolution with a project de.s~~iiiiiiii~e., not~iii~(~::ihere is a new plot plan and design for the project which he..~iii::ii~:~:~:~i~i~i~..ncil. ''::~:;~ .... Cou~:imember As~!i~?iiiiii~orted~ on the upcoming June 25, 1999, meeting with A~blywoman Virgi~i~ S'{"rom-Martin and representatives from the Ukiah Unified School D..::~ii~ict Site Selectio..:~?:Committee ...... regarding the Wards site. He encouraged others to ~~ and show t..h..~:i~' support for the project. ::::::::::::::::::::::::::::::::::::::::::::::::: .......... ~:i~iiiiii!iii~i~ii~~G E R/D I R E C TO R REPORTS C:~i~~::~: Horsley advised nothing to report. Mayor Mastin reported that Agenda item 12a will be considered in closed session and that item 12b is not being considered at this time. June 2, 1999 Page 25 of 26 12, CLOSED SESSION a. G,C. §54956.9{b)(1)- Conference With Legal Counsel Regarding Pending Litigation - Existing Litigation - 2 matters: Redwood Business Park v. City of Ukiah, Mendocino County Superior Court Case No. 77517 Redwood Business Park v. City of Ukiah, Mendocino County Superior Court Case No. 77252 No action taken. . .... 12b. G.C. 654956.8- Conference With Real Property Negotia~.or -- .:~:i:~:i:i:i:i:!:i:i::-. ~.i:i:!:i:i::" Owner: Various Parties ..~i::~iiii[iii[i? Negotiator: Candace Horsley .:~iiii~i~iiiii::i::;:' .... Under Negotiation: Price and Terms of P~nent No action taken. ~i!?:ili::?:?:!~!~!... 13. ADJOURNMENT .... ~::~::~i~i~:?:~?:~!~:?:~i~:?:~i~????:~::~ ================================================== There being no further business the meeting was a.:dii~~ii~iii.:..1..o:52 p.m. -.;.:.:.:.:.:.:.:.:. Marie UIvila, City Clerk iii}}iii!ii!}!i}i}iii}iiiii}}}ii~i i iii! iii i!i iii ii!iiiiiii}iii iliii} ~i~i} ..... ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: .......-.....-.. :.:.:-:-:. ............. ..::i:!:!:!:~:i:i: ...... .:,:.:.:.:.- ..:.:,,..... June 2,1999 Page 26 of 26 MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, June 16, 1999 The Ukiah City Council met at a Regular Meeting on June 16, 1999, the notice for which had been legally noticed and posted, at 6:31 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Council- members were present: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. Staff present: Customer Service Supervisor Archibald, Public Utilities Director Barnes.,.;........?~ater/Sewer Operations Superintendent Borecky, Community Services Direct0.~iiDeK~10ugh, Police Sergeant Dewey, Finance Director Elton, Assistant City~iii!iiiii~~r Fled, Risk Manager/Budget Officer Harris, City Manager Hors!.~?~i!i-Actin~ilili~i~iii!~orney Johnson, Public Works Director Kennedy, MiS Coordina~ii?~iingbei!:iiiiiiii~i~iiiiii~,ef Sande!i~? Community Services Supervisor Sangiacomo, De~:~y Publj:~i~ii~o~!i!ii~~.o....r. Se..a.~r, Councilmember Libby led th(~ Pledge of Allegian~?iiiiiiiiiiiiiiii?iiiiiiiiiiiiiiiiiiiiiiiiiiii~ .... 3a. PROCLAMATION; Month of July as Par. kcs!an' d Mayor Mastin read the proclamation desig.~~?~i:i'month o{ili~i~!i!i~ 999, as "Parks and Recrea,?on Month and urged the c~bze~i~'13l~t~iii~?~::.and..~j0y the City's parks and re.,creat~on programs, taking into con~'ration.:~:~i~~iii~ffect to the well being of Community Services Supe~~i':i~angi.~0mo thrived Council for the Proclamation. He advised that the Communit~iii~rvices:i~artme~{~iiii:~ at its peak season. He discussed some of th~i~:ummer prog:~iii~uch as~iii~~ii~certs in the Park and Summer Safari Program.,.?:i~i::i~dvised..:~ii~i~ Camp i[iiii ::'0n June 21. They are currently working on upd~ii~i~i~....broc~!~!iiiiii~i.t, hanke~::::{:~'e Recreation Department staff, both full time and part i:i:~iii~i".eyees,":~ii~i?~orts to make the programs a success. 3b. PRES~~i~N.: Na'~i~ii~::~nes, Public Financial Manaclement. Reoardinr- May0.~iii~tin advise~iii~i!~i~mation was provided Council in their packe!s concerning Pub~.~ii~inancial Mana~~:i" Inc. (PFM) who have been serving as the City s investment ad......~0r since 1997. ~er: information concerning this matter was distributed to Council a.:..:~iii~ meeting .........,.....-:'::!iii? :'"":gi':'!:!:!:i:!:'"'"':!iiii... . -":!':'!':'i:i::" . ~ii~~[~[i!~i!i~n Carter adv,sed that Nancy Jones is PFM's Managing Director and ~~iii~iiii~::i[Y of Ukiah portfolio. She will report on some of the changes that have h~:~~i~i~i::~ce PFM took over the portfolio of the City. Nancy Jones advised that the City Manager has asked her to provide a report concerning their firm. Since PFM was hired by the City, new Councilmembers have been seated. She June 16, 1999 Page I of 21 noted that PFM only manages public money. They currently manage $9.4 billion of public agency operating funds and bond proceeds. The difference between PFM, who provides investment management and a broker-dealer is that PFM does not have their own securities. Anything they buy for the City, is purchased through brokers and delivered directly to the City's custodian bank. They have nothing to sell the City from their own inventory because they do not have an inventory and the money never goes through their hands. She reviewed PFM's Investment Advisory Group and noted PFM has s~ng internal controls. She discussed their trading desk and noted PFM only wor.:.'.'.~ for p,,.~'.""~i:J'C agencies, wherein every person who works on their Trading Desk is... focuse.d, ili~ili~!ii~rious types of securities permitted for such accounts as the City's..~i::ili!ii!iiiiiii~:.. -'~i!iii!!iiiiii!i!i!!!iiiiiii!ii!iiiiiii!iiii~: .... Ms. Jones reviewed what has transpired since bein met with City staff and the Oversight Committee risk tolerance. Their first step began in re~g.i~i~...t.:~' City's inv~{~iiiii!~olicy. _Recommendations were then made as to how to adj~ii~iiii~olio to make it':':~:~'ier for the City and to evaluate performance. She di~~iiiiii!i~h.eir summary of initial recommendations and strategy to improve the di.~ifi:~~ii~!i~.,S...:ector. She noted that since February 1998 the, portfolio has been in g0,o..,d:ii'~nditi0~!iiiiiiiii~ii~S bought securities that fit the City's liquidity needs which have ~:g~ i~i~!.d and ~i~:~!~ii::~' lot of safety to the portfolio. She compared the City's po~i~iiii~i!i~iiiiii~, 199~i!!~;~ March 31, 1999 and discussed how the maturity distributioni!~d shi~iiiiiiiii~iiad.v..:~d there is more liquidity in the portfolio, and it is now concentr~ in theiii!~"t0::~§!ii~ii~i'urity range. She reported how the State of California runs..a:,i::~ol, ca~l~'"~ LAIF?~!i~i~'~i that the City has plenty of liquidity in its account. She disc~ hist~l intere.~!i~anges on two-year U.S. Treasury Notes and advised the averag.e...'~i~i:~ on T.:...~6~sury N.,.o..~ over the past two years has been at 5.4%. They continue .t..o.. fi~:~ways t~ili!~E.r..:..o..yeiii!~:e portfolio's performance in terms of yield as w.,~!i!i~, quality...?:~ii~epare ~~iii~i~ments which are delivered to the City's staff, p~:. ......... ~ii~ii~artei~i~iii[~~nt pe~~:~ce report, and meet with staff and elected officials '~i~:..ssary;':~i::iiii~?~i:,,mary objective for the City is safety, compliance with the laws, ar{~ili~~?:~::.She ~~ii~:porffolio is worth $336,000 more now than had the City left the m.~ii!~ii~.. City Ma~;r HorS'i'~iiii~i~:thatli! members of the Investment Oversight Committee who are .i~iiiii~'ttendance ar~ili~~::"Hill, Allen Carter, Gordon Elton, Mike Harris, as well as Co.~ilmember Phil ~....hil~" and Mayor Mastin. She thanked Mr. Hill, Mr. Allen, and Ms. J~ for working so ,~ii~gently over the past three years to get the City where it is today. ~ii~ity is very ple~'~d to have come a long way in a very short amount of time. ~iii'~~!ii~~ed to an inquiry from Councilmember Smith, indicating LAIF stands for L~iii~~i~i:~vestment Fund, and is the State of California s pool. She noted the City currently has approximately $14 million invested in it. Councilmember Baldwin inquired if the City is investing in a socially responsible manner, June 16, 1999 Page 2 of 21 such as screening for corporations with sweat shops, red lining communities, or defense contractors. Ms. Jones advised that only 17% of the entire portfolio is invested in any type of corporation. The screening they conduct is based on credit quality, not social responsibility of the organization. Mayor Mastin inquired, should the Council give direction to PFM to investigate the issue of socially correct investments, what can the City expect in the way o.f..--!ili~.~nformation comparing it to the City's current investments. ..~i~:: ...... ~i::iiiiii? .... Ms. Jones felt a great deal has to do with the defin~t.i.~: Sh~i!~{~!i!3.ey need to find co.m.,pa.n,e.s who have a c. redit r. ating of AAA or AA...~'have I~i~ii~other pub!..i~' enmy to buy green or to make environmentally difficulty finding companies under this definition wh~:.were ~:~ high their portfolio. They would need a definition in orde~:ili~ii~.r.:..-s~?the matter m'~i!~~ghly. 3c. PRESENTATION: Greater Ukiah Charnber_...~!!i~r. ce, Reeardinc~ Annual City Manager Horsley advised that the City r.~i~....ed i~~e from the Greater Ukiah Chamber of Commerce requesting.::~!i!~~!~ation b'~i!ii~': to Council for the purpose of updating their activities and and goals, based on the City's partnership and partial fundi~ .... Kathy Spencer, President of the ~:ier Uk~:"Cham~i~i~:~"'Commerce, resident of 2717 Oak Court Ukiah, advised thati::!i~ii!!~ity ~iii0kiah a~i?the Chamber of Commerce have enjoyed a very successful ~:l'ic/priv~il partn~hip for many, years. Through the partnership.,., the entire c.e.:~~ity has.'..':i!~~~!i?:i?~' The Chamber s operating budget is c°mpris~i~i~mbers..:~i~ii~y whic~i!ii~~?grant money they receive from the City. The Ch~~iiii~::~ref~i!ii~~iii~!:!pcatin~:~:{~:~ City's money for services such as tourism, rel°cati°n';~:'~i~mic (J~~~.t. She also advised the grant money received allows them to dire~ii~iii~~ber ~ip money to assist with programs that are already established......S...~i!ii~iiiii[~?our~iiiii~!ii::~Uly, Holiday Trolley, Small Town Christmas, and educatio~a.l:"ii~'~iiii~ii~.t..[..as tl:~:~:"creation of new tourism and relocation packets. The City pr.o.~i~ed fundin~ii~~{~iii~em in these areas and directly affects all other programs they,:~ii~vide to the She reported that the Chamber has serviced 34,832 inf..o..'~ational requests.~hd'ihquiries regarding Ukiah and the surrounding area during the p~.i~scal year. She.::~ted that, based upon the number of inquiries received during the i~i. 9 fiscal ye...a...F?the C~ty s contr~bubon ~s $0.55 per contact. It is estimated that the ~iiii~.r.. inqui.~?!~iiii~1.75. The Chamber looks forward to continued community service the Chamber's nrima,-,, ob'active t", ,-,',.-,'~ .......... ,: ......... ' co~~'~i"v~sit, live, and do business. She felt that the City's funding is very important to the Chamber in order to provide these services to residents and visitors. Chamber representatives look forward to continuing this very important public/private partnership between the City and the Chamber of Commerce. June 16, 1999 Page 3 of 21 Councilmember Libby congratulated the Chamber for the work they have done in the Ukiah area and how they have turned things around, financially, for the Chamber. She inquired whether payroll is the Chamber's largest fixed expense and whether there has been an increase over the past three years. She also inquired as to the Chamber's second largest fixed expense. The Chamber was operating in the red several years ago and has worked hard to turn that around. She further inquired as to their anticipated status by the end of this year. Ms. Spencer advised that payroll is their largest fixed expense and has incre.a...~d annually along with other expenses. As reorganization continues, the :~am~ili!~i'S becoming financially solvent. They currently employ two staff members. Elizabeth Brazil, Executive Director of the Cham~iii~::~:Comr~~ii~sed that th~' second largest fixed expense is a combination ,~?i'nsuran~i!iii~'r~:~iiii~~,.' whi.~ii!ii~i's approximately $3,000 per year. She stated that, ba~ on tb~iii~:~ount from memberships, with their projected totals, the~i~i~Ji~iii~ii!~Perating in that they budget to match their revenues for the ye~i!i!iii!i!i!iii!iii!iii!iiiiiiiiiii~::.. '"--' ............ 4a. APPROVAL OF MINUTES-Amended Minut~ii~"~~ii~eting of May 19, 199£ Councilme~ber Libby discussed her ' - .................................. i~ ........ prewou..s..~::.:~:.est to a'~~ii~i~minutes of May 19, ~, .a..n.~, no.0.[ecl ?er..request represented.::!~iii~~[~ation ~~~ Mayor Mastin and UD~C Utm[y uirector uarnes. VVhen May....~ii~§fi~iii§~iMr. Ba~ about the cost of the average residential bill, Mr. Barnes st~:~l it is~ii~iiiiiiiii~~i~i~stin then stated that the amount comes to approximately ~:~i~91 pe.:~!?ho~~i~i?She requested that this conversation be incorporated int..o..;?:~ minu.t~:i instea~?~:~:~hat was submitted by staff. Discussion followed among C~:~ilme~s and..::~ff concerning the., amended minutes as provided:..in the Counc.i. fi~ip~et com~~i~t..e..'i~i~ncilmember Libby s recollection. City M~~ii..'"Horsl~!!~~d a r~:~i~i~r clarification to staff concerning how the minutes ~~~iii~[....epar~!i~i~~!sed that in the past, the City Clerk has not prepared verbatim mi~B..t.'~ii~ii~..f:.urthe~!~i~?~i:.there is a need for Council to discuss their format preference. ~b~iii~.~have '~~:"been written in summary form She coma it ' ...... ~!~i~i~':~..'..-'~:~:::~i:::~::~?:~!~:::.:.. -.::~ ~:~. . _ · p red the C y s m~nu~:-'w~t~--~~::~e Me~'doc~no County Board of Supervisor's and indicate Cou '":?' '-:~i~.-'.:~!~.-'..-'~i~?~?:........ d the nt .y..:.:~s-'m~nutes are:~~f. ,, ,, It ~':~he Consensus.~~ ~ncil to agendize the preparation of the minutes for a future m~.ing and direct.e..'~ii?'the City Clerk to amend the minutes of May 19, 1999, as ~~mended ;y G~:ncilmember Libby. Mee ,no of June C:J~iii~~!iii~J~'ila ~dvised that the minutes of June 2, 1999 are not available but will be agendized for Council's July 7, 1999, meeting. 5. RIGHT TO APPEAL DECISION June 16, 1999 Page 4 of 21 Mayor Mastin reviewed the appeal process. 6. CONSENT CALENDAR Councilmember Libby questioned staff on Item #1, award of bid for floway pumps, concerning whether the pumps are currently operational. Public Utilities Director Barnes advised that the pumps are barely operational. The pumps are designed to deliver 7.5 cfs each of water to the hatchery but are currently producing about 2 cfs each, noting that the impellers are completely worn. H..e..iiii~vised that this is part of the City's license with the Federal Energy Regulato.~..;Com,.~:~ion (FERC) for the hydro plant to deliver water to the hatchery. These pumpsi~!ii..c!..~'*gnated only for .......... i i iii iiiii i!? .... · MIS BaldwinlAshiku approving Items a-I of the C~;nt Cal.e;~:~'::~jii~i! a. Approved Disbursements For The Month of M~iiii~.9 b. Rejected Claims for Damages Received From:!ii~i~D.~J~i'na School (China Diner). and Referred to Joint Powers ~~!iii~R~edwoodEmpi'~:~"Municipal Insurance Fund; c. Received Report Regarding Acquisition of .~i;~iii~!ii[Q. utton Enterprises for Improvements to the Men's Locker Room in..:I.~:Amoun:i::::i~ii~i~:. 17; d. Adopted Resolution No. 99-45 Granti~iii~~.n..t to th(~:~!~~r of Control of the Cable Television Franchise; e. Rejected All Bids for Hewlett Pack.a..'~i~om~~~i!~!il!??' f. Approved the Subdivision Improvement A~me'~{i~ii~i::?Doolan Creek Subdivision, Major Subdivision No. 97-44;..::~!!:;~:~i!!iii? ...~iiiiiiii?:" g. Adopted Resolution No. 99~!~prov.i.~?Final ~i"for the Doolan Creek Subdivision and Accepted on Behalf of.~ii~JSublic~iii~rious .~:~ments and Parcels in Fee Offered h. ,z~ce.!~ii~:...e. port R~~~ii:..AWard ~{ii~~'nt Service Agreement to W-Trans in the (3~ii~iii~.'.9..~950 ~ii~!ii~orman~:~:~-'-:~'Traffic Delay Studies at Various Signalized I. Awarded::~ii~ii~.eway P:~ili~:.to Floway Pumps for the Sum of $18,008 Plus Tax; J' Auth°riz..e:..:~::;i~~~:..nag~:~i~ii~'ier Into Contract With Kennedy/Jenks Consultants to Ev~¢~:':'flS'~::~~~~r Treatment Plant Facilities for Continued Reliability and to ae.~;ii~rowth for t"~~ii~wenty Years; k. ~:~:oved the First ~~ent to the Joint Powers Agreement Creating the Mendocino .:~iE.~ergency Servic~!iA~hority (MESA), and Authorized the Mayor to Execute Same; I..~iii!iiii~Warded Bid for 4~ Utility Vehicle to Thurston Chevrolet in the Amount of $26,700. ~i~:.t.i.0n c.~?by the following roll call vote: AYES- Councilmembers Smith, Libby, ~i~:.-.-:~i?~'~iiii?~nd Mayor Mastin. NOES: None. ABSTAIN' None. ABSENT: None. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEM~ Tom Greenaway, 309 Clara Avenue, representing New Dimensions Radio, 214 East Smith Street, discussed the control burn on June 6, 1999, regarding the structure on North June 16, 1999 Page 5 of 21 Main Street, which is across the street from his business. At an earlier Council meeting, he had approached Council with their concerns regarding the control burn. He advised that, on the day of the burn, he met with Fire Chief Sandelin. He commended City staff and Chief Sandelin for their efforts taken to protect his business and nearby trees from any fire damage during the burn. Mayor Mastin noted that Mr. Greenaway drew attention to a potential safety problem regarding the Main Street demolition where there is a 3 to 4 foot drop in the foundation. ..;::.. 8a. PUBLIC HEARING .:~ ...... Business Improvement District Assistant City Manager Flad identified the pur~['e of opportunity for public input regarding the expansion :~:...~ii~e D~i;3wn ImP~~iii~i:~ict. !_n g..e_n, er..a! ter.rns: !h.e ad.d,t,onal area includes Mill S~ii~'Obbi Street, a~i~i~::'Street [o uaK street. At the May 5, 1999 City Council m&&~i~taff was directed t~ begin the expansion procedures for the District boundaries. ?i~iii~ili!~iig, 1999 Council meeting, Council adopted the Resolution of Intention to Mo~' th~:~:~§~~i...e.,s of the City of Ukiah Downtown Parking and Improvement District Ar.e,,a,.~.e...,tting Jt.J:~ii~{i~ii~iii~he hearing date for public input. Staff published the heari~g.'!!!iiii~~ion an~iiii!i~~do all the affected businesses as required. He advised that..~i!~iii~~:...~s totai~ 51 ~ of the projected revenue generated by the expanded a~:""file w.~i.~ii~~..t..;..'~iii~uncil would be obligated to abandon the effort for a period of 0~?Year..~*':"dat~iiiiiii~iii~:Ave been no written or oral protests received. He recomm~d that::i~'"~uld a.:~:~:~:~;:""protest not be received, that Council introduce the proposed..~iance..:~ending.t'-'.-'~ City of Ukiah Code Section 2605, rea of District. M.odifying..th~i!i!i~unda~i~!':0f th.~.~i;~ij~y of Ukiah Downtown Parking and Alec Rohrb~~:..r of C:~~ilScene' 633 South Main Street, was of the opinion that his busi~i~~ii~t ber~:~ii~.~m joining the Downtown Improvement District, and he opposea::~i~:~j'~:~i!!~~ired ~"81 fee. May~ii~astin inquire~i~~"'~ all the businesses were informed of the increased fee and ho~ii~e money would.ii~ '~propriated. ~ nt C,ty M~{ler Flad advised that each business was notified and it was noticed "'~~~:g Closed: 7:15 p.m. Councilmember Smith advised that he may have a potential conflict of interest since he represents a business that is located in the current District. June 16, 1999 Page 6 of 21 He was advised by the Mayor and the City Manager that if he did not benefit financially, he would not have a conflict of interest. Councilmember Smith advised that he would not be financially affected by the District expansion. Councilmember Libby inquired of Mr. Rohrbaugh if his business license is currently $181. Mr. Rohrbaugh advised that his business license fee would double.:~he jo.i~?the District. Assistant City Manager Fled advised that the maxi~::~fee i~ii~~d noted that the fee levied is the equivalent of the business fee les~ii~::" He not~i~ii~ii::~:..Rohrbaug~' business license will remain the same. He will the~iii~ay its e.~l~i!ii!~iii~ili~axim.~iii~f ,$250, to the Main Street Program as the fee for:ii~i.ng in:.~..t..:~'" Downt~iii~~ent Discussion followed regarding the fee calculatilns ..a~ili~i~e..ii:ioney will be utilized by the District. MIS Ashiku/Smith to introduce Ordinance ~i~i~ii~y, to ~~iii~i~' Boundaries of the Parking and Business Improvement Ar.~iiii~ii~~iii!~e. ction ~:~5.5 to the Ukiah City Code; carried by an unanimous Voice::~:ii .~ii?':-'"iiiii!i!iiiiiiiiiiii!iiiiiii!?~iiii?:~:~:~:~i::ii?:: City Clerk Ulvila read the Ordin.~:: by tit.l~?~:nly., :~i!iii::ii~' MIS AshikulSmith to introdu~!i~';-dina~ito Mo....d.!~?the Boundaries of the Parking and Business I~rovement :.. ilAdding to the Ukiah City Code; carried by the follo.w.i~iii~oll call ~ii~S: Co~i~~ers Smith, Libby, Baldwin, Ashiku, and May°r~~iii~!~.-..O..ES:,'i::~iiiii~ENT:"::~'e. ABSTAIN: None. CouncilmemberLibby expresse~!ii~ii~~~.t, yes;:':'!ii~ii~iii~e record, noting her concern with one business not Adop..~:"of Resolutj~!!!~!~ing Capital Improvement Fees for the Airport Industrial P ark.;ii,Al P ) ::~i~i~::~..'::~?::'..:~i~':~i~ .... M.~r Mastin report~ii~t~i~:; Staff has requested the Public Hearing be continued to the J~i~iii:7, 1999 meeti~ii? Although the notice for the Public Hearing has been posted, ~[~Dce comm.e.:~'": on the matter will be received and the Public Hearing will be ~~...d.:.:..t...0...:~::.t:~.:~i!~:i'y 7, 1999, meeting. Opened: 7:2O p.a. John McCowen, P.O. Box 454, Ukiah, stated the Airport Industrial Park development does not have proper infrastructure for the intensity of the development. It is his understanding June 16, 1999 Page 7 of 21 that the installation of a second left turn lane is being considered. He felt it is necessary because the existing west bound left turn lane quickly becomes filled. With the current situation at the intersection, it would only worsen should the area be developed further. He was of the opinion that neither the developer nor those that purchase lots in the development should bear the full cost of widening Talmage Road from the freeway to State Street. However, they should be asked to contribute towards the widening of the immediate area of the development. He discussed additional capital improvements that are needed to the development and felt they should be noted when Council adjusts fees. He felt the area looks more like a shopping center than a business park. !:Di:ii...his opinion, there is a need for additional capital improvements within the de At 7:24 p.m. the Public Hearing was closed and cont 9. UNFINISHED BUSINESS a. · to 1999 meeting. .,::::::::.,' ..::i:i?' ,,:.:.:.:~ Community Development Director DeKnol meeting, the City Council directed staff to prepare Golf Professional Jeff McMillen. Subsequently, a tentative agreement for both Golf 3nal Services. The Golf Professional Services can be renewed for four years, at the calls for 6% of the first $150,000 to be ~ to th~ which includes all the greens fees an..d...!i~venue..~eiv ar an that at the May 19, 1999 reements with current and completed ~s Consulting of 16 months and ,2000. The contract anything over $150,000, City. The current contract proposes to change the 4% on th.e::::::~.~:ond ti~::'to 5% :1 that this would allow the pro to participate in the advertisi~ii!~ogr~iii~nd con~ute up to $100,000 in advertising and promotions of matching fu~!~:~C~ the .-~i~. Mr..M~illen also agrees to accept charge ,cards at.!~..G, ol! Cour~iiiii::~::..~?rently,~iiii~!i~::??Cards are accepted for greens fees Decause..~iii~..-[:..Y aoes.~;~ii~i~:a mech~~ii~i!~bsorb the percentage that is charged for this se~ili~ii~:..credifi::~ii~pany' "M~::'McMillen has agreed to incur those costs on his own ~ii~i!ii~ease'~iii~i~i!i~.'e....r..s the credit card service fees and advertising. The Operat..i~i~~:.~!~i.....n. g C'~?involves three phases of work which Mr. McMillen would pe~:~fS'~¥~i~i~....ursei':::.:,~his Operations Consulting Services contract includes the deve~3ment of a'~i!i~~jiii.~perating plan, a five year Capital Improvement Plan, and on-g~i~'g monitoring ~iii~iii~lf Course conditions. Both plans would be reviewed and ap~:Ved by the Cityii?~i~n'~:~' Mr. McMillen would assist in the implementation of these p~"~ams. He discus~ some of the services that the Pro has been providing on a limited ~""~i~:and noted co~d approval will allow Mr. McMillen the opportunity to fully utilize his .-'.:~i~i~!~i ~i~i~i~::~i~i ..... ' ...... ~ ~onal g.O...!.f..:~ii~'nagement expertise. .::::::!:i:iiii Di~..~~i~i'i~)wed concerning credit cards at the Golf Course. It was noted that under the terms of the proposed contract, there is a requirement that the Pro maintain, operate, and make available to the public, an adequate number of carts. The Golf Pro will receive all golf car fee income. It was noted by the City Manager that the maintenance plan needs June 16, 1999 Page 8 of 21 to be updated and she further noted that the proposed pilot program will be monitored for 16 months. Emrnett Jones, Ukiah, expressed his appreciation to Council and staff for considering the long-term commitment and he felt the contract is both flexible and an economically feasible way for the City to add on-site monitoring. He felt the golfing community views Mr. McMillen as a long-term golf professional at the Ukiah Golf Course. Jeff McMillen, 25 Highland Court, stated it is his intention to be the City's gol.f...~i~ofessional as long as he can, and noted the contract allows him more in~t into~ day-to-day operations of the Golf Course. He felt that golf is very active in Uk.i.'~ii~ii~ould like to be part of its growth in the community. .~iiiiii!iiiiiiiii!~:~ .'~iiiiiiii!iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii!~: .... Councilmeaber Smith reported that he recently h~ii~;n opp .o..~:it'~ii~~~::...with .~; golfers and they felt that Mr. McMillen does a goo~i~:~ and.::~:~as co~~ii~ii~'rt. MIS Ashiku/Saith approving agreements with Jeff ~~ii~.o...r Golf Professi(~:~;:i:"Services and Golf Operations Consulting Services and aut..h..~i~i~::~City Manager to execute agreements; carried by the following roll call vote:.:~S~?ii~~;!members Smith, Libby, Ashiku, Baldwin, and Mayor aastin. NOES: N.~..e..,::::..ABSE:~iiii~~. ABSTAIN: None. Bb. Adoption of Ordinance Amendi~!ii~i~~ii!~?Articl;?~i?*'"Section 1001 of thc_ Municir)al Code to be Entitledli!~r-ks. E~~{~::?:a~ Golf Coi'i~mission Community Development Directo....~!!!iibeKn~ii~ug~i!iiii~ that at the June 2, 1999 meeting, the City Council introd..:u.~: an o[...d.i~'ance c~bining the Golf Course Advisory Committee and the Parks and R....:~fion ~missi0D~i~us creating the Parks, Recreation, and Golf Commission. Staff:ii~:~S recei~ no ~..u.~ comment regarding the proposed ordinance ~ therefore ~:~'ends t~i~~ii~Oceed with adoption of the Ordinance. C°uncii~~~i~::..Bai'~!~!i~.~~rage:~"'":~:~"*::::~'is fellow Councilmembers to reject the recomme'~iiii~...o...n an~iliiiii~iiiiii~iiiiii[.%::..a mistake. He felt the two committees are very incompatible":~i~ii~~ii!.O..f pas,~:~!ii~:__._ ~'~tion such as hiking along the rim trail system and the develop...~~ii~~.ide ~?~0mpared to the pro-active recreation of golfing. In his opini~ii!~'~'i~J""~~i!i~i~iG, oil O'0mmission with a lesser parks element. Even though the Pa~:'*and Recre~!ii~mission has been without items to discuss in the past, it doe~i~t mean that it ~!i?~i:hue in the future. He opposed the merger for those reasons. ~.'~hcilmember As§iku advised that should the merger not work, the matter can be ~:..~ed by Coun.c...i.'i?' ~~~h adopting Ordinance 1020, Amending Chapter 4, Article 1, Section l~iiii~!~i:*!~'unicipal Code to be Entitled Parks, Recreation, and Golf Commission. Mayor Mastin advised that he also questioned the proposal to combine the two committees when it was brought before Council at the last meeting and is still not June 16, 1999 Page 9 of 21 convinced it is in everyone's best interest. He felt the issues of each committee are not necessarily similar. He also expressed concern that both committees have new projects which need to be considered such as the contracts with Mr. McMillen, the development of Riverside Park project, and continuing the City's Recreation Program activities. Councilmember Libby felt that since all committee members have discussed the matter and have agreed to merge, that it is best to follow their recommendations. This matter can be revisited in a year to see how it is working. Councilmember Smith was of the opinion that, based upon the r~mm~'"':~ions of the two commissions, Council should approve the proposal. He conc~i~..t.~?the matter can be revisited again. He noted the composition of the~i~ber~i~ii~ii~S for only three members from the golfing community. Motion carried by the following roll call vote: AYE~i!ii:..Coun¢i~i~'mber;~i~i~?i~nd ~h,..ku. NOES: Counc, lmember Baldwin and Mayo~~:t..:i~?iii::~ABSSNT: N~iii~TAIN: 9c. AI3oointment of City, Council Members ~ari:~ii~mittee Assigni-,ien,~_ Mayor Mastin advised that al[er the June 2, 19~.9....~...uncil rn~~i!ii~::i~had an opportunity to review the various City Council co~~~iiiiiii~..s, signm~iii??He discussed his recommendations, as well as the vacan~ii~!~!{'~i!~~e..of Caii~nia Cities Community Policy Committee. If an individual C~ilme~:. ~ii~i~i!~e..s[~ in serving on a League Policy Committee, they would be a~ii"nted ~iiii~e ~i~~~ili~mpire Division. Discussion among Council and ~ii~ntin.U~ii~Lith re~? to the Redwood Empire Division appointment process to the ~~e of ~i~fornia..~s Policy Committee. It was noted that there ar....e approximat.~!~ ~!~: Commi~ii~..t.;~i~e membership rotating each year. C°uncil~~ii~:.:.L. ibb~i~i~i~:at at t~":"~':'"'~ii~i meeting she expressed an interest in being appointed:~f~!i~iiii~k~iah Ur¥i~a!ii~.'.e..ol District Site Selection Committee. She requested the Mayor to":~~[..his r~tion of appointing Councilmember Ashiku to that May°r.-::~!~tin advis~i~ii~~uncilmember Ashiku had previously reported that the Site Sel~n Committee ~ii~?Recreation Center Group are related to each other. ~ ~cilmember As~u had no objection to Councilmember Libby's request, however, ~Mphasized t.b..~i~:he wants to see the Recreation Center Group continue to gain ~ ~t-, .... He....:f. el~iiiii~at the two committees are related to each other and he did not ~. i~~i~'"'":!~e split among Councilmembers. It was his desire that Councilmember Li:~i ~iiii~~i~::"~ commitment to working with the Marvin Trotter to bring the Recreation Center to fruition. Councilmember Baldwin queried Councilmember Libby concerning her perspective on June 16, 1999 Page 10 of 21 the Recreation Center. Councilmember Libby advised that she needs to obtain additional information on the project, but sees a need for a Recreation Center and she would like to help the project progress. City Manager Horsley advised that she will provide Councilmember Libby with information concerning the two committees. Councilmember Ashiku discussed the possibility of forming a related to the City's utility billing, since Council frequently..r..evisits felt the new Councilmembers would benefit from me~ Barnes. .~iiiiii~iiii!i? ..... Mayor Mastin recommended the matter be a establish parameters and direction. concerns issues. He Director further to City Manager Horsley noted that the committee cou Sub-Committee so that when a major issue is co would gather additional information and re to to the Solid Waste il, the sub-committee Discussion continued regarding sessions throughout the year. Mayor Mastin discussed Counci S~ii~'s ap ~ops, or training :!~ber ........... ment as an Alternate to MCOG and recommended that Council~6ers .L...[~y and meet with Kristy Kelly to obtain background on the committeej!iii!ili? .... ..~iiiii!iiii!iiii!i .... ~i~i~i~iii~-" C°nsen~i~!~..:,C°unci!:,~:........~ii~pprove ~ii~~uncil Assignment Sheet for Committees, as pre~~ili~L.M, ay0~P!~i~i!!~,.n, d ma~:i~:~:-"appointment of Councilmember Libby to the Recreati6~iii~~..r. oup ~ii~ii~h Unified School District Site Selection Committee. 9d. Consi_d'."~~ii!~nd A~~i? of Replanting Program for ~ieminary Avenue C°m~~i:ty Service~!ii~i~~t' DeKnoblough advised that at the May 5, 1999 meeting, Co i:i requested a r~~i~g program for the Seminary Avenue median strips prior to ap~..m., vlng the removai..'iii~f t'~e declining Deodora Cedars. He reported meeting with Tom F....:~ia of Creative ~igns to prepare a conceptual plan, based on what is known to be ~~g in the d~~wn area, and focusing on a Iow maintenance program to minimize ~iiii~:B.,s.,y~..p.,..~:i Mr. Fracchia has submitted a plan which dots the medians with ~~iii~~:"trees and colorful shrubs. All the shrubs included in the plan have long la~i!i~~"'and summer blooms and are limited in height to three to four feet. Mayor Mastin requested the Chinese Pistache tree not be used in this area, as there is an abundance of these trees throughout the City. He noted that if disease strikes, we June 16, 1999 Page 11 of 21 would need to replace all the trees. He recommended changing the type of trees being planted to provide variety. City Manager Horsley advised that the City's Urban Forest Plan identifies a variety of trees which can be used throughout the City. Mr. DeKnoblough discussed working with Assistant City Manager Flad and arborist, John Phillips, concerning tree recommendations that would provide shading, color, and a good canopy. He discussed the types of shrubs recommended. It was note...d..i!i[~)y the City Manager that Chinese Pastiche trees have been planted along S~ool ..S..~:~t. Counc,lmember Ashiku inquired if the conceptual lunching 15i~iii~~.sistent with the original historical garden planted in that location..:~iiiiiiiii!iii!~-":' ...... ..::~iiii!!ii!i!iiiii!iii!iiiiii!iiiiiiiiiiii?:~..... ~ .~iiiiiii? Mr. DeKnoblough reported that there was a hea~iii~nce..ri~':..-.~i~i:;:)n of ~:~iii~i~~; at that location which were maintained by Mr. P:~iiii!iiii!i!ii~e to the a~~iiiii~::"water consumption and labor that would need to be aP~J~iii~i!ii~.e area, it is no{":~easible to duplicate the landscaping. ..::~i!iii!iiiii~iiiiiiiiiiiiiii!iiiiiiiiliiiiiiiiiiiiiiiiiiiii~ .... Councilmernber Libby inquired if Council vot.e..d..~i~::..have t~!~~g~.....trees removed. City Manager Horsley advised that Cou~iii!i~~~ii!~...v:.ing th~!i~isting trees removed, only after a landscaping plan is been .a~'i~oved~?ii!ii~i!ilililili!iiiii!iii!!i!ii!!!iiiii!?:i::~i~!?:!iii!iiii?' After a brief discussion, Council ~rred w~::ihe Cit~?M'anager's recollection of the vote on tree removal. ..::~i~[~i~[~iii[ii?:? ::~[iiiiii? :::::~' Mr. DeKnoblough advise..d..il...'.t.h. ~i!~hould ~~ii~;ve the conceptual landscaping plan, staff wo~ili~.....n., deve.{.:~iii~ii~!, plan ~!~i~"'id be reviewed by the Parks, Recreation and Gol~i~~i~...S. ion '~ili~iii~..rned t~::::{~'~ Council for approval. City Mana~iiii~!~y re~~~iiiii~?.response to Councilmember Baldwin's inquiry concerning .f..~~i!ii~iii~...e pr~iiii~at the City has already received a check for the Co~i'imember Lib~iiii!~[d that she has always thought of Seminary Avenue as ChOreas Tree Lane a~ i{~:i's difficult to let go of traditions. She felt the landscaping plan ~:i~ give the stree.:~:i:~?'new look. ::::::::::::::::::::::::::::::::::: ~~ ~ ~:~:?'a~i~i~:'~'~~:~!:~!!i~i~'n response to an inquiry by Mayor Mastin concerning plant setbacks ~i~ii~ii!~ised that an allowance will be made to accommodate car doors opening. MIS AshikulLibby to approve the conceptual landscaping plan for Seminary Avenue. Councilmember Baldwin noted that if the City could save trees similar to what is being June 16, 1999 Page 12 of 21 implemented in Oaxaca, Mexico. This is why he is will vote against the project. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku (reluctantly), and Mayor Mastin (reluctantly). NOES: Councilmember Baldwin. ABSENT: None. ABSTAIN: None. 9e. Approval of Consulting Services Contract with Inte(;rated Technology Para, ers for the Ci _tywide Hardware/Technology Needs AsSessment and Plan_ and Corresponding Budget Amendment MIS Coordinator Klingbeil advised that bids were solicited for...~i~ns.u..~!~'' services to provide a Citywide Hardware Technology Needs Assessment andii~iiiii~"hree bids were r_,.e_c_e~v_e_,d__a.n.~_a~er ca,,re_.f,,,u! con,s~,cl, era!ion and revie~iii~i~as d~!~:that Integrated ,,, ~,,u,ug.y. ~anners I,.Hr')could DeSt prowde the ~i~:~,ith the..:~i~ii~.....fluired and~i~· [ne same time, provide those services for a fair .~1 reason:ia Council approve the contract to ITP, authorize the C~iiMana~i~:{0 execU{~ii~i!~~:~nt, and approve a budget amendment in the amount of~i~i~;'io cover the ~~J~i~:~] fees. Mayor Mastin noted that several years ago, the City::i~~~ii.....a.' similar process relative to the hardware needs of the City. Th,ere ~'" diS~~ili!i!~.t.:., that time to linking Councilmembers home computers to the City s ...d...e.~ment im~~!!~i~computer systems. Ms. Klingbeil advised that discussions..~iii~i~~a..n.t wil!:~ii~:i'ude developing some remote access to City Hall (wide area ~3rking)iii~:~i¢~ii~i~ii~'loped for the City's other outside locations, it would be feasil~::"to addili~'0un~i~~:rs or other City employees who need to work at home. , ..::~ili~iiii!ili? ..::~i? .:~?? Councilmember Baldwin inq~ if thei~dget a~dment requested is an emergency item and w.:~. was it not !.~~1 in FinanC~iii~~:.r. El~~~..d... that':~:~ time the budget was prepared, staff was unsure a~ii~~...r:::..whe~!ii~i~i~'/;:..':....'.-'yiii~ould proceed with this project. Subsequent to that time, the utilit~!~~are'::~ii~ad given the City notice that they would no longer support the C~ii~~.~:.. Duri'~ii~ year, staff looked into the matter of Y2K compliant software.::~:::~'pti~ii~~:..to tl~:~ City. He noted that there was discussion during the budge..t:iii~arings of a":~!~i!i~::......:~i!iih~prove computer technology within the City. He;i~orted that some.:~:Was completed in 1994/95 which resulted in the network that i~i~ently located in..~ north wing of the administration building. There were conceptual i~i~:.of expandi.~iiiiii~he system throughout the entire building, however, it was not ~~:~:~~ii~at point. In the subsequent 4 ½ years, technology has changed, and t~ii~~ii~s of that plan are no longer applicable to the current state of technology. City Manager Horsley advised that when a computer person was hired in 1994 there were approximately six employees with PC's in the City. Today, almost all employees in City Hall have their own PC's. June 16, 1999 Page 13 of 21 Ms. Klingbeil noted that the City currently has approximately 120 PC's. Councilmember Baldwin noted how rapidly PC's become obsolete. He inquired as to the process for purchasing the computer components necessary and how to confirm the consultant's proposal. It is his hope that the City can look at this proposal not from the viewpoint of what staff wants/ He inquired if the citizens will benefit from the City's investment in new technology and advised he is a skeptic. Finance Director Elton discussed the bids received and noted that IT.~s proposed consulting fee is $95 per hour. According to the agreement, the ~..nsul~!i~i'S precluded from selling the City any hardware or software. He advised that..~i~i'd like the tools to do their job in the modern world. Currently the Cityii!~s diffi~.municating wi?,...h the City Attorney because of outdated technology. ::~!iii~:'i'~cusse~ii~ii~s of the ,a_n.d__n_o, te_d~t_h,,a_t_!o da!e three versio.n,s o.f P.entium hav.~ne obs...~'. "::~~..e...d th~!i!~'e ,~,y~ challenge ~s to ensure tnat all the com~ters, h~ware, '~iii~~i?are compatible. He noted the daily care and mainten~i~i~.f..:::ii~:~ current co~::~~iiiii~'a full time job assigned to Ms. Klingbeil. To supervise the"~~!{.-e..., specificationsi":'"i'~'Stallation, and other work associated with the project would re~ii~.".~..o, nal assistance. City Manager Horsley noted that once th,..e.:~:~mpute?!ii!!~~iliiiiij:s assembled and implemented, staff can then maintain the s~iiiiiiii~e discL~iiii~'e lack of Email and Internet capacity at individual workstati~iiiiiiiili!iiiiiiiiiiiii!ii~ii~!~ii~ii!~ii!iiiii~::. _Councilmember Smith noted that, a~'rding ..t..~ i~e ~~~', at the February 17, 1999 City Council meeting, there was ~tat'.[~:' regardi:'"'.i~:~:'"~e need to do an assessment, and was approved by the atli~'at time..~iiiii~ince that time, staff has received .a...~i~e nta~::'reg~ City~ii~cil atlii~'at tim, responses from the Request f~'uotat[~!i~: He qu~{'ioned why Council is now debating the issue of..:..b...aving a Nee~~ssme~i~i~i...[...iii~' already been approved in February. He felt it i..s.'ii~e to go.~~[~i~ith the ~j~ili!? .... C°unci'i~~~ii!~bbY"::~~:;..that Council had previously approved the Needs C°uncilrne.'~ii~~~ that"":'5'nce the Needs Assessment is completed, Council and staff..c.....~ii~en deter~~~er to approve the expenditure. C~'"'~:ilmember Ashi~ Was of the o.,pinion that the citizens expect the City to operate as ~~cient business :~ with the City s technology updated into the next century, it should ~::~greater effic!.~,, happier staff, better productivity, less cost to the taxpayers in the !~i~.,.:::.~..n..d....g~:~' communication with other staff members and agencies. He felt it is t:i~ii~i~.t'"~iii~ii~{~) move forward with the proposal. MIS AshikulSmith to award the consulting service contract to Integrated Technology Partners (ITP) for Citywide Hardware/Technology Needs Assessment and Plan, and authorize the City Manager to execute the agreement. June 16, 1999 Page 14 of 21 Councilmember Baldwin discussed the City's phone system and his frustration in connecting to a specific employee. He discussed how technology changes rapidly and becomes obsolete, and that staff is constantly in need of learning new systems as they are updated. It is his hope that Council will look at the Plan in terms of how any citizen will benefit from the Plan. City Manager Horsley felt that an important benefit to citizens is that it will increase the public's ability to Email City staff. She reported receiving several citizen complaints regarding the City's lack of Email capacity. ..~:~ Motion carried by the following roll call vote: AYES: Coun..cilmem~..m.:~'?~;'bby, Ashiku, and Mayor aastin. NOES: Councilmember Baldwin. ~ENT:-~i~~BSTAiN: No~e. MIS AshikulSmith to approve budget amendme~?~:0 the account #100.1965.250.000 by $15,200 for Ci~jde H~a'Warerr~~ii!iii~'"~ds Assessment and Plan; carried by the following r~ii~.t.!::!i!i~te: AYES: C~.~:mbers Smith, Libby, Ashiku, and Mayor Mastin. NOES: :::~~i~ember Baldwinl ..... ABSENT: None. ABSTAIN: None. ..::~i::iiii!iiiiiiii!!ii~iiiiiiiiiiii~iiiiiiii!~iiii!::~ Recessed: 8:23 p.m. ' Reconvened: 8:33 p.m. ..?::~iiiiii~ii~i~ii~iii~ii~'~i~!~ .... l~ua;toRepOrt on City_ of Ukiah .L..o..~ii!incom~!ii~ner~~ance Procjraae n-~er ~ervice ~upervisor ~ibald:~/ised th~' this matter is being presented in response to Council's request..iii~i!ii~orrn...~n rega.~i~g the City of Ukiah's Low Income Assistance Programs. The ~grams..~ii~.r.e des..i~'ed in response to SB 1890 which establishe~;ii.:t:..~e Public B.~.:.:f.~'Charg~iii~ili~ii~:e uses for this money is assistance to e.lectric~.~~~::..ers wi~~ mode~i~:mes. Customers have received benefits since N~~iii~::~:....9.. 98' ~~iii~at tim'~""an increasi ,ng number of customers are being helped. 'i~iiii~iiii~t. six ~:.....'~iii~.f.:i~the City of Ukiah s Low Income Program, the 229 households ~~ii~Breser~ii~iii~an four times the number of households assisted ,n the enbr.e.:..~~ii~f 199~iiiiiii..T, he reason for the success of these Programs include more ge...~Fous eligt..'~iii~::{.:.eria and increased marketing to potential eligible citizens. Additi.~:i promotion~.i.'iiii~j~S are also under way. Fi~i:!{'ce Director EIt~ r~:Viewed the basic eligibility criteria for the two programs. The ~..'.'.'{~:':':'i"porary Assista~ Program is available for Iow income households that receive a ~ ::'~ of impend.iD~ii!~ermination of electric service due to nonpayment of their bill. The ~..s...~ii~'~ is available to seniors who are at least 62 years of age, whose total :~'"":~i~iil ~ii~~ is within the income guidelines, and the service has to be in the name · .:::::::: .................. . of't~ ~i~~:~:;"Citizen. The eligibility levels for both programs is based on the net household income compared to 150% of the Federal Poverty Level. Staff has developed additional information related to Iow income households in Ukiah. June 16, 1999 Page 15 of 21 The sources of these statistics were obtained from the 1990 Census, the 1999 North Coast Almanac, and the Salvation Army. From these statistics various interpretations or calculations were made to develop staff's statistics. He discussed wage eligibility levels. The statistics developed from the assistance provided to seniors during the month of May 1999, revealed that the average bill for 105 senior customers was $32.64, and 62% of the 105 customers had bills which were less than the average bill. This concluded that almost half of the customers assisted received a discount greater than 25% of their bill. If it is the intent of Council to have these Programs continue for an exten...d.~ period of time, additional considerations need to be addressed. One area..~.'.e..f con.sJ~'i'ation is the relationship of the benefits of eligible households to the funds ava.i:l~i.~:~Jgh the Public Benefits Charge. The charts which were distributed t~!i!¢ouncijli~~., projections that make two assumptions on the potential for the c~i~i~tion '~ii~i!~.ram with t~' existing funding that is scheduled for four years. He ~'sented id.e,,a, that, sin,ce it is un. known_what the ultimate dem~i~ will ~i~:~' the w~ De any cnanges to the Program, the length of..:~ii~i~i~:" it can functi~iiiii~iiii~iown. There are no statistics that can be referenced to det~~~!i~bat will happen":i:~"'::':i:~e future. The statistics available for Iow to moderate income.::i~~~ in Ukiah are not readily a, vai!a,ble. Based on this information, he recomme~ c~i~~p of the viability of the Assistance ~rogram be included during disc..u..~.i.ons of"::~~?:i':i..c, hanges. He also recommended that before making any chang~ii~ii~i.e.,::,Progra'~iii!~iiii~::!~!~llowed to continue as initially implemented in order to asses ~ii~!iii~~ii~i~ity whi.~!ii~ill include the results of the increase and expanded mark...M..'~ acti~iiiii~~:~::..m..~'ing any changes to the Councilmember Ashiku inqui~ii~en t~ii~B 189...0...'iii~xpires, should the utility not have the ability to absorb the 2 8% f~i?could .t'~:' Cit I '?:':~llv e ahl~. fn r'.nll~_~.f fha, m,-,,-,--,, ,-,,., · : .............. . .~:..! ............ y .a......~ . b ........................ ~, ,, the utility b.!::!ls. Conside.r.:a...t..!O:~iiii~hould ~iiii~..a..,..d..,e..::ii~iii~':i~e City lacks the ability to collect'th;; Acting'::~i~ii!~..m. eY':~~!iiiiadvised that he is unfamiliar with AB 1890 but will research C~i~i~ber A~':".:.~iii~i~iiii::~!~i~ ..... ....::,~:'.:~..?::.:.:,..:.:.:.:,......,:,..::::.., :.:.::::::::::.~' ....... , ::~i~.':,qu.e. st~on. Council~§~:?i~~i?:~uesi:i~'ed if the City is committed to continuing the program after AB~iii~90....:~:~¢.. exp~r(~iiiii!i!~iiii~uired how it would impact the debt reduction and banking pro~m:'with regard t~iii~~' off the City's debts. .;~?:~i~?:~' .iliiiiiiii: '::i~i::-' .:::::::::::::::. :'.'.'.'. Fi~"'hce..~:~:~:~:~:~:~:~:~:~:~, Director EIt~i~:advised ..... that he discussed the matter with Public Utilities Director Ba~s. He advise!ii"hat the cessation of the 2.5% set aside funds was included in the ~!i~.was ~~ed at the recent Electric Utility Workshop· That money was included i~iiii~iii~!~::"as part of the funds that would be available for rate reduction· If that ~~!~i!i~t made available for rate reduction but continued to be funneled into some type of assistance program, it would only serve to reduce the amount of money available for rate reduction and thereby likely extending the date at which the City could reach market. June 16. 1999 Page 16 of 21 Mayor Mastin was of the opinion that if the City only collected the funds through the year 2001, and if the Program was targeted to end when the City goes to market rate, that at that time the average electric bill will be approximately half of the existing bill. If that is the case, Council may determine at that time that no further assistance is necessary. City Manager Horsley was of the opinion that there will always be a need to provide assistance to some customers, especially those that lose their jobs or who are unable to pay their bills at all. She discussed staff providing payment arrangements for those customers who are unemployed and discussed application through th..~ii~Assistance Program to help them with their bill. She advised this Program .i.~:..offe~iii~nce a year, whereas the REACH Program is offered once every two. years. F!nance Director Elton added that those individual~i!~"'qualifYi~ii~iii~ch the poj~' o, receiving notice that their service is about to be ~?minated.:ii~ t~!ii~~.ent...,.::!ii!ii? Councilmember Baldwin felt it is important to pr~i~i!!.a..~i~iancei~ !~ to cu~~ii~'"~o are struggling, financially, and felt there should be maxi~ii!~i~....o.f the funds to I~vide relief to those customers, and, if necessary, continue the p~~i!~:the expiration date of the State mandate. He encouraged staff to research-:~'ys"i~!~~ii{.:'.b..e City could maximize the current fund. He recommended research t.h...~.t.~i~...e........cused ~iii~~'.h.'.elds with an annual income of $24,000 per year and to consider..::~~::i~a serie~:~ii~i?~reductions to those .c,u.sto, m,.ers with a subsidy, such as 10%.::~iii~i!~i~ii!iiiili~~r' it ~:~be easier to provide a ~at (3o~ar rebate to the customers..::~6:hside..r:..~i:~iiiii~i~!ii~{~'ered system, with up to $15,000 annual income qualifying f.~::One ley~:i' of"~~ii!i~i~nd then $15,000-$24,000 would qualify for another level of..-~::i!~sidy...,iii!~?~taff c~:~rovide this report by October 1999, it would give Council an.:~i~rtunit~ii~ make..:.t.'~;~ necessary changes to aid those customers needing assistanc~!~ most~iii!iii~iiiii!~' Finance..::~~tor EIt.~ii~!~.ed that!~iii~i!~ difficulties of providing a report that include~iiii!~~..t, ion ~i~::.t. he nu'~:~:'of potential households, is the lack of data availabl6:?.!i!iiiii~.{.'~iii~..as or~:~iiii~!~iiii~..find one source of data that indicated how many households':::i~iiii~i~ii'.h, ad inC~i~iiii~s than $15,000. Mayor M:...a...~i'~'"-'"~i~~~!~d st~::'Contact the Ukiah Food Bank since they deal with a simila.r.::~'e of guid~ii~ii~iii~articipants in their program. It was his understanding that they..~e the criteria ~::i::~own by City/County residence. This may provide the City wi~iiiiii~information con:~rr~:i~hg those individuals who are already participating in an a.~tance program. .:.:.:.:.:.:.:.:.:.:.:,:.:.:.. ..:.-:'iiiiiii!i: ~~.e... Direc..~ii~:iton advised that with the short turn around for their current report, {~iiii~ii~iiii~' adequate time to complete an exhaustive study and search out other P6~i~ili~~es of statistics. City Manager Horsley advised that staff has inquired with the Dept. Of Social Services and Mendocino Private Industry Council (MPIC) for sources of data. June 16, 1999 Page 17 of 21 Councilmember Ashiku felt that perhaps the question of the City's ability to lawfully charge a Benefits Charge after the expiration of AB 1890, should be researched. He noted that it has been suggested at this meeting that, in the future rather than continue to deposit some of the reserves into savings, perhaps 2.8% not be banked. He questioned whether this amount can lawfully be charged. Public Utilities Director Bames estimated there would be a delay of three to four months if the City continued to set aside 2.8% for Iow income assistance after the January 2002 expiration date. .:~iiii~: ..... ::~!i!~i~ii~ .... Mayor Mastin was of the opinion that if AB 1890 sunse.,t.s at 200.,:~ii!~...~o, and the City is entitled to collect an amount, the City could set th.e."ili~mounf!i!~ii!~ii~.{e, of its choosing depending on the needs of the existing program an~ii~::'~xistin~;i!~ii~~ure. Councilmember Baldwin recommended staff re~ with.:~:i:~ repo'~!ili~ii~iil~iii~irst meeting in October of 1999 concerning the feasi~i~i~i.:.e~?~'e City of Program for all households reporting $20,000 ~J~iliiii~me or less. '"'¥~e rate of assistance could be at 5%, 10%, or 15% levels of re.:.~~!~!!iii~i,s report should consider issues of cost associated with billing software, ad~'nis~!~:...~iii~ing, and the impact of continuing this program beyond the State mand..at..~:.date of'::~iii~002. The option of a dollar rebate as opposed to one based..:~i~ii!ii~~tage : i iiii::A'iso be considered. Consideration of a two tiered rebate pr.~~::!i~iii~~:..hous~::j"ds up to $15,000 and those between $15,000 and $24,000 s~i:~ also..::~::~{!~~[~!iii?This pertains only to the revenue collected under the Public B~fits C~e ~~iiii!i!~e anticipated that the new program would have an eligibility..:a~licatio~ili~'i-ocess:i~:~:i'~r to the current program. He also encouraged the continuan~iii~t the E~'ergencyiiii~elief Program. He discussed the possibility of charging an admi~'tive f~iii~ associ~)n with the screening of applicants. ~nance..::~[:~tor EIt~iii~i~ed that..;ii~iii~;ty presently pays the Salvation Army an admini~~ii~ for '~~~g::.appli(~i~:~ for assistance. Consensu;iiiiiiii?~iiiii~13cil ~ii!ii~iiii~l~ect' staff to pursue Councilmember Baldwin's recommenda.t.i~ii~i~ii~rd t~!ili~~:~ch and the monitoring the assistance programs of the City, a~ili~:~:~~ili~?..~:.to th~?:~ouncil next Fall. Cou~:.....~i:imember As~!i!~'gested the appropriateness of forming a sub-committee coU~ting of two Coun~i~bers and staff to study the issue. Noting their interest in rate .;:':~;i:i:i:i::': r~!.]:~ to customers, ..:~: inquired if Councilmembers Baldwin and Libby would consider ::::::::::::::::::::::: O"::::::::::' ~i~g n such a...~mmittee. ~!i!iiii~~~ii!!i!i!~'orsley advised that staff will pursue Councilmember Baldwin's r~~{:i:'0ns. Councilmember Baldwin and Libby expressed interest in serving on such a committee. June 16, 1999 Page 18 of 21 Mayor Masfin suggested that the committee be an informal ad-hoc committee that would meet with staff regarding this specific issue. 10b. Adoprion of Resolutions A~_ proving Agency-State Master Agreement for State Funded Projects and Program Supplements for the 1998 STIP Aucj~-,entation Projects Public Works Director Kennedy reported that effective May 17, 1999, the City's funding allocation request to the State Department of Transportation has been approved for its two 1998 STIP Augmentation Projects. Upon receipt of the funding allocati¢ ..... a Notice Requesting Bids was prepared, mailed, and published, s for both projects have been set for July 14, 1999. The proposed iects streets for a total estimated cost of $970,770. reimbursement for these funds, it is necessary for the ante the State. The Master Agreement and the Project S Pro, been received by staff as yet. He reported that provide the City should be very similar to the advised that Council's options regarding this matter July 7, 1999 Council meeting when all documents the Resolution approving the Agreement and a~ Master and Program Supplement pending n of local :ity to receive in the He ) Table the matter until the by staff, or 2) Adopt to execute both the He reported that the State has very stri to proceed with this project and the Agreement will require ~:City tc res. It will be his responsibility to ensure compliance of...-ii~:'iS proj~!:" this Agreement is non- negotiable, and the specific condi~!!~f the S~{~e De of Transportation is that the i '~?~: :~::~" · ....... ~:' C ty accept the State funds an...~i~tde b~ii~e~r gu~d.e.'.'hnes. He anticipated receiving the Agreements this week and str.~d tha.t..~ii~:..~e is o.f..:~ essence. He anticipates award of the contra~:~n July 21, 1~: ii~imburs....~:.t....::i~"'Se funds will not occur until such time as the Agent i,s sig~ili~i~0th the ~iii~?:~{he State. He advised that he is anxious to recei~ii~j.Is a'~~~iii~:July 7 MIS Ashik~:.._.~iii]......dopti~ii~~.en~i 99-48, approving and authorizing the execution of the Admini~~iii~..cy -S'{~iii~ster Agreement for State Funded Projects; carried by the foll~~:~:~:~iiiiii~i!i!~..t..e...; AY~: Smith, Libby, Baldwin, Ashiku, and Mayor aastin. NOES:.~i~ne. ABS~iiii~. ABSTAIN: None. C...:~cilmember S~ had nothing to report. ~~!.!~..e.m.b..~ii~by reported attending a meeting of MCOG and the Uendocino County ~i~i~ for Freeway Emergencies (SAFE). ucoe received the SAFE Call Box P~~i!~:";adopted the SAFE implementation plan. This will be a five-year project and provides that 36 Call Boxes be installed. She reported that the Regional Transportation Planning Agency's budget was approved June 16, 1999 Page 19 of 21 for 1999/2000 in addition to the establishment of the local process for the Transportation Enhancement Program. She attended the Sun House Guild fund-raiser for their new wing. She was also present for the Chamber of Commerce Community Champion Awards luncheon, which was very well attended. Today she attended a meeting of the Chamber of Commerce and reported they are working on the Fourth of July fireworks celebration. She advised that she is looking forward to participating in the Police Department Ride-Along Program this week. ,-:::,. Councilmernber Baldwin reported attending the Mendocino Co.~ty I~*~'~:'Water and Power Commission meeting along with Public Utility...Directo~::ili~i?City Manager Horsley, and Mayor Mastin this week. The Commis~i~ dis~~iiii~hat the Federal Energy Regulatory Commission (FERC) will do with t~!i~'er Vali~i~~!i~iversion fr~' the Eel River to the Russian River. Anew envi~'mental..::i~:~iiii!~~~t m..a....~ii~e reissued due to a controversy and a new propo~... Th~i!i~mmissi'~!!ii~~~::'the..~... possibility of buying the P.G.&E. Power Plant.Th~ii~l~!i~iSCUSSe,:l par~i~S idea of a multi-million dollar canal around the north sig~!i!i~ii~Ae Mendocino. This matter is losing support because the ranchers of Potter Valle~ili~i~~ely concerned about the re-introduction of an endangered species into ii'ks. The project is very costly and if the dam is raised, it will become mo.r.:,e.::~:~ostly, i~~...that effort to raise the level of the dam and increase the capaci~ii~i~::Uend°~!iii~i~:~ining favor among the Commissioners. He recommen~iiiiiii!~"/~iiiii~[., be ~dized for Council's consideration within the next 90 days::~::i~rder .~i!~~!iLd...i~'ion to him with regard to voting on whether to raise the level ~iii~ake ........ ~:::::::::' .... i~ili~::~:" :~!i~?: '" Councilmember Ashiku reporl:~iiii~at ~.~0 ' '?:~: won t?:~e meeting until August. ..~:~:~:~:~.'i:i:!.'.-'::.' ,:~iiiii!iii~ .... Mayor ias~.n reported th~i::.t.~ii~rst Co~i~i~i!~rk had a record crowd, the band was great, andiiii~ weathe~::i!~~t. He ~~ii!::{j~e California Conservation Corp Open House ~i~ii~ii~!::~Mana~iii~~Y.-..,and ~i~:~nity Services Director DeKnoblough. The Open H~iii~iii~. cele'~iii~..salmon restoration program. 11. CITY ~~~DIR~~ii!~"E PORTR City Man:~::~~:.~i~~..:.ed tl~:~::'Executive Assistant Karen Yoast has been organizing the Ba~""'Que in ap~~i~i::~.of all the Committees and Commissions of the City. She inqu.::i~'""of Council co~~::{heir guest list. She advised that she has "Concerts in the Peri?' posters for ea~~ ~uncilmember. All of the old posters are being framed for p.~rity. She advis~ that Assemblywoman Strom-Martin will be in Ukiah visiting the ~~s school site..~!~::June 18, 1999. June 16, 1999 Page 20 of 21 12. CLOSED SESSION a. G.C. 654956.9(b)(1)- Conference With Le;lal Counsel Re~larGinf_ P~ndin_= Litigation - Existin_~ Liti_~ation - 2 matters. Redwood Business Park v. City of Ukiah. Mendocino County Sur)eHo,' Court Case NO, 77517 - - - Redwood Business Park v. City of Ukiah. Mendocino County Su;)erio, Court Case No. 7725P - - - No Action Taken. 12b. G.C. 654956,8-Conference With Real ProDertv Ne;]otia~,,' AsseSsor Parcel No. 180-110-06 - Owner: Various Parties ..:~iiii~ili!!iiiii~: :~ii~i~iii~ii~iiiiiiii~i~ ..... Negotiator: Candace Horsley Under Negotiation: Price and Terms of P~ent No Action Taken. There being no further business, the meeting wa.~!~i~~!~t' 11'12 p.m. to June 22, 1999 at 10:00 a.m. for the 1999/2000 Budget He~ng. Marie U Ivi la, City Cle rk ~!~:~ "~:: ..:::.. June 16, 1999 Page 21 of 21 ITEM NO. 6~, DATE: July 7, 1999 AGENDA SUMMARY REPORT SUBJECT: REPORT OF THE ACQUISITION OF SERVICES FROM MIKE BROWN ELECTRIC CO. IN THE AMOUNT OF $6,992 FOR THE REPLACEMENT OF TRAFFIC SIGNAL DETECTOR LOOPS SUMMARY: In compliance with Section 1522 of the City of Ukiah Municipal Code, this report is being submitted to the City Council for the purpose of reporting the acquisition of services costing more than $5,000 but less than $10,000. The City Public Works Department obtained informal bids from four companies for the replacement of 23 traffic signal detector loops at two locations: South State Street at Hastings Ave/Washington St. and South State St. at Gobbi St. Based on the bids submitted, the City selected the Iow bidder, Mike Brown Electric Co., of Cotati, CA for installation of the traffic signal detector loops. There are no local bidders qualified for this type of work. Costs for replacement of the traffic signal detector loops are included in the approved FY 1998/1999 street department budget. RECOMMENDED ACTION: Receive and file report. Report is submitted pursuant to Municipal Code. ALTERNATIVE COUNCIL POLICY OPTIONS: None. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Rick Kennedy, Director of Public Works/City Engin. eer Rick Seanor, Deputy Director of Public Works Candace Horsley, City Manager Rick Kennedy, Director of Public Works/City Engineer 1. Fiscal Year 1998/1999 budget sheet 2. Proposal from Mike Brown Electric C~-r~dace H~r~iey~ ~ty Manager RJS:AGSIGDETLOOP.SUM t- Z 0 CITY OF UKIAH TRAFFIC SIGNAl_ DETECTOR LOOP REPLACEMENT PROFOSAL FORM Description Estimated Price per Total Quantity Detector Loop Price Traffic Signal Detector Loop 23 The undersigned declares he is familiar with the items specified and has carefully checked all of the figures stated on the attached DETAIl_ED SPECIFICATIONS and accepts full responsii~ility for any error or omission in tl~e preparation or this bid. This bid is submitted by (check one): Individual Owner Partnership X' Corporatio~l ~ Other (Specify) Legal Name of Bidder: Address of Bidder: City, State, Zip: Mike Brown Electric Co. 561-A Mercantil'~-'J-D~i'~e Cotati, CA 94931-3040 -iU7-792-8 iO0-."-Fax:-. 70~792-,31 '~ O Lic. #306767 Phone Number: (Signature) Dated: ITEM NO. 6b DATE: JULY 7, 1999 AGENDA SUMMARY REPORT SUBJECT: Award of bid for various pole and pad mount transformers in the amount of $66,975.49 as summarized in report. The formal bid process was followed in sending a Request for Quotation (R.F.Q.) to four suppliers for eight different size transformers. These transformers will be placed in warehouse stock and will be charged out on a project by project basis. The four formal bids received were opened by the City Clerk on June 9, 1999, at 2:15 p.m. These bidders were: 1. G. E. SUPPLY CO. 2. WESTERN STATES ELECTRIC 3. WESCO 4. STEPHENS, McCARTHY & ASSOCIATES Bids were evaluated on price, delivery time, load losses and availability of circuit protection. The bids are total cost, including tax and shipping. Based on staff's evaluation the lowest compliant bidder for each unit is as summarized in the attached table. (Power transformers are not available through local vendors.) RECOMMENDED ACTIONS: Award bids totaling $66,975.49 as follows: Pad mount transformers: five 25 KVA, two 37.5 KVA, two 75 KVA 208Y/120V, two 75 KVA 240/120V, one 500 KVA, and one 750 KVA to Wesco for $56,882,19. Pole mount transformers: nine 25 KVA and four 37.5 KVA to GE Supply for $10,093.00. ALTERNATIVE COUNCIL POLICY OPTIONS: Reject all bids and direct Staffto re-advertise and re-solicit bids. Citizen Advised: N/A Requested by: Stan Bartolomei, Electric Supervisor Prepared by: Judy Jenney, Purchasing & Warehouse Assistant Coordinated with: Candace Horsley, City Manager Attachments: Bid Tabulation Approve~- Candace Horsley, City ~nager 0 o · o ~ o -H -H oo~o o o o · -I r~ ~o c0 o ~ ~-~ o o ,-4 rq ... o o -,-( -,-( I -~ -~ I 0 0 0 0 oo~o ~ oo~ o o , , . . ~ m Z Z ~ m Z o o u~ -,Ho o I ~ o o ~ ~>-,H-,HH 4~ M ~ 0 O O o o o ~ o~ ITEM NO. 6e DATE: July 7, 1999 AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF NOTICE OF COMPLETION FOR CONSTRUCTION OF ADA CURB RAMPS, PHASE 3, SPECIFICATION NO. 99-03 SUMMARY: The work of the contract was completed by KBR Construction, contractor, in substantial conformance with the approved plans and specifications on June 8, 1999. The final contract cost is $19,851.32. Final payment of the 10 percent retention in the amount of $1,985.13 will be made to the contractor following 30 days from the date the Notice of Completion is filed with the County Recorder. Funding for this project was approved in a fiscal year 1998/1999 budget amendment in the amount of $22,006 in account number 340-0600-490-013. The actual final contract cost differed from the contract amount of $18,738 due to differences in actual quantities constructed along with a minor change order ($165.12) for repair of a sidewalk under drain. The Mendocino Council of Governments (MCOG) awarded funds in the amount of $22,006 to the City of Ukiah for this project on November 5, 1998 from the MCOG Bicycle and Pedestrian Program. RECOMMENDED ACTION: 1. City Council accepts the work as completed; 2. Direct the City Clerk to file the Notice of Completion with the County Recorder for Construction of ADA Curb Ramps, Phase 3, Specification No. 99-03. ALTERNATIVE COUNCIL POLICY OPTIONS: None. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Rick Kennedy, Director of Public Works/City Engin. eer jl~J~ Rick Seanor, Deputy Director of Public Works~lJ,~ Candace Horsley, City Manager Rick Kennedy, Director of Public Works/City Engineer 1. Notice of Completion APPROVED~<~.') ,Js:^GNOC99~3.SUM Candace Horsley, Cit:~Manager Please return to: CITY OF UKIAH 300 Seminary Avenue Ukiah, California 95482 (707) 463-6200 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN: . That the real property described is owned by the following whose address or addresses are: City of Ukiah, a Municipal Corporation 300 Seminary Avenue, Ukiah, California 95482 . That the nature of the title to the ADA CURB RAMPS, PHASE 3, SPECIFICATION NO. 99-03 of all said owners is that of fee simple. 3. That on the day of June 8, 1999, the Contractor was actually completed. . That the name and address of the Contractor is KBR Construction, 2806 Tarmac Road, Redding, California, 96003. . That the real property herein referred to is situated in the County of Mendocino, State of California, and is described as City-owned property located at South Dora Street and South State Street. CITY OF UKIAH, a Municipal Corporation By: CITY CLERK STATE OF CALIFORNIA) COUNTY OF MENDOClNO) I, Marie Ulvila, being duly sworn says: That she is the Clerk of the City of Ukiah City Council, that she has read the foregoing Notice of Completion and knows the content thereof and the same is true of her own knowledge. MARIE ULVILA, City Clerk Subscribed and sworn to before me this day of ,1999. Notary Public in and for the County of Mendocino, State of California R:I\ENG ADA.NC ITEM NO. 6cl DATE: July 7, 1999 AGENDA SUMMARY REPORT SUBJECT: AUTHORIZE EXECUTION OF AMENDMENT NO. 3 TO THE SERVICE AGREEMENT FOR JUVENILE WORK PROGRAM AT UKIAH SOLID WASTE DISPOSAL SITE SUMMARY: The City has utilized the services of the Mendocino County Juvenile Work Program for the past four fiscal years. The youth working under this program assist staff in collecting wind-blown debris at the disposal site, cleaning up debris along the roads leading to the site and installing minor erosion control facilities. This fiscal year staff is requesting that the City authorize execution of Amendment No. 3 to the City's Service Agreement for the Juvenile Work Program at the Ukiah Solid Waste Disposal Site. This Amendment will authorize expenditure in the amount of $15,000, as designated in the FY 1999/2000 budget. RECOMMENDED ACTION' Authorize execution of Amendment No. 3 to the City's Service Agreement for the Juvenile Work Program at the Ukiah Solid Waste Disposal Site. ALTERNATIVE COUNCIL POLICY OPTIONS: Not authorize execution of the Amendment and direct staff to seek alternative means to accomplish the work projects. Citizen Advised' Requested by: Prepared by: Coordinated with: Attachments: N/A Rick Kennedy, Director of Public Works/City Engi.neer Seanor, Deputy Director of Public Works ~ Rick Candace Horsley, City Manager Rick Kennedy, Director of Public Works/City Engineer 1. Amendment No. 3 to the Service Agreement 2. Fiscal Year 1999/2000 budget sheet APPROVED:t~', ~~ (~an~-~c~ H'orsley, lity Manager RJS:AGLFJWPAM3.SUM CITY OF UKIAH AMENDMENT NO. 3 TO SERVICE AGREEMENT FOR JUVENILE WORK PROGRAM AT UKIAH SOLID WASTE DISPOSAL SITE DATED MAY 1, 1997 TERMS AND CONDITIONS All terms and conditions of the Service Agreement for Juvenile Work Program at Ukiah Solid Waste Disposal Site Dated May 1, 1997 shall remain in force and effect through June 30, 2000, except as modified by this amendment. AUTHORIZATION Upon execution of this amendment, service provider is authorized to perform the work described under "Scope-of-Services" of the original service agreement, on an hourly basis, not to exceed the total amount of compensation indicated under Compensation. COMPENSATION Compensation for the work of this Amendment shall be made on an hourly basis, at a rate subject to City approval, not to exceed a maximum total compensation of $15,000. MENDOCINO COUNTY PROBATION DEPARTMENT CITY OF UKIAH BY: BY: ROBERT MCALISTER Chief Probation Officer CANDACE HORSLEY City Manager DATE DATE Amendment No. 3 to Agreement for Juvenile Work Program at Ukiah Solid Waste Disposal Site Page 1 of 1 /o o r.. o o u~ ~ / .~ ~o 0 / ~ ~ ~ .~ ~ --.. ~ 0 / ~ ._ ~ ~11~ z~ ~ ~ > . ~ ~ _ ~ ~ ~[ 01~ o ~ o~ ~ ~ >'~ ~" ~ ' ~1~ ~ ooooooo ~~ ~o oo 0 0 0 0 0 0 0 ~ ~ ~ 0 ~ 0 ~ 0 ~ 0 AGENDA SUMMARY ITEM NO. 6e DATE: July 7, 1999 REPORT SUBJECT: ADOPTION OF ORDINANCE AMENDING CITY OF UKIAH CODE SECTION 2605 - AREA OF DISTRICT, MODIFYING THE BOUNDARIES OF THE CITY OF UKIAH DOWNTOWN PARKING AND BUSINESS IMPROVEMENT DISTRICT In April of 1999, the City received a letter from Dennis Denny, President of the Main Street Board of Directors, requesting an expansion of the Downtown Parking and Improvement District. In general terms, the additional area includes Mill Street to Gobbi Street, and Main Street to Oak Street. At the May 5, 1999 meeting of the City Council, staff was directed by the City Council to begin the procedures for expanding the boundaries of the District. In accordance with the Parking and Business Improvement Law of 1989, and Streets and Highways Code Section 36540, the City Council adopted the Resolution of Intention to Modify the Boundaries of the City of Ukiah Downtown Parking and Business District Improvement Area at the May 19, 1999 City Council meeting. That was the first step in the process of the proposed expansion. The purpose of the Resolution of Intention was to define the area of proposed expansion, describe how fees are to be assessed, describe how the revenue generated will be spent, and set the date for the second step, which was the public hearing. CONTINUED ON PAGE 2 RECOMMENDED ACTION: Adopt an Ordinance of the City Council of the City of Ukiah Modifying the Boundaries of the Parking and Business Improvement Area by Adding Section 2605.5 to the Ukiah City Code. ALTERNATIVE COUNCIL POLICY OPTIONS: If it is determined that adoption of the ordinance is inappropriate, remand to staff with direction. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A The Main Street Board of Directors Michael Flad, Assistant City Manager Candace Horsley, City Manager David J. Rapport, City Attorney 1. Ordinance of the City Council of the City of Ukiah Modifying the Boundaries of the Parking and Business Improvement Area by Adding Section 2605.5 to the Ukiah City Code. APPROVED:, ~', Horsley, City, Manager C~nd~e Adoption of Ordinance Amending City of Ukiah Code Section 2605 - Area of District, Modifying the Boundaries of the City of Ukiah Downtown Parking and Business Improvement District July 07, 1999 Page 2 Notice of the June 16, 1999 public hearing was published and mailed to each owner of a business affected by the proposed modification in the manner required by Street and Highways Code Section 36523 for the purpose of soliciting any support or protest. The public hearing was conducted as required in Sections 36524 and 36525. Under those procedures, any affected business could file a written or oral protest to the proposed expansion. No written protests and only one oral protest was received during the hearing. Staff recommends that the City Council adopt an ordinance amending Ukiah Municipal Code Chapter 7, Section 2605. Section 2605 specifically describes the boundaries of the Improvement District. Staff will be available at the meeting to answer questions. The adoption the proposed resolution completes the process for expanding the Downtown Parking and Improvement District. R:I~IlKE:kk DID2.ASR ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH MODIFYING THE BOUNDARIES OF THE PARKING AND BUSINESS IMPROVEMENT AREA BY ADDING SECTION 2605.5 TO THE UKIAH CITY CODE The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. FINDINGS. The City Council hereby finds as follows: 1. On May 19, 1999, the City Council adopted pursuant to Streets and Highways Code Section 36500 et. seq. Resolution No. 99-41, entitled RESOLUTION OF INTENTION TO MODIFY BOUNDARIES OF CITY OF UKIAH DOWNTOWN PARKING AND BUSINESS IMPROVEMENT AREA. 2. On June 16, 1999, at the City Council Chambers at Ukiah Civic Center, 300 Seminary Avenue, Ukiah, the City Council conducted a public hearing on the proposed boundary modification. 3. The City Council received and considered all protests submitted in writing at or before the public hearing. 4. After considering all filed written protests the City Council determines that the Downtown Parking and Business Improvement area should be modified as proposed in the Resolution of Intention, and the Ordinance modified as set forth herein. 5. This Ordinance will modify the Downtown Parking and Business Improvement Area previously established in Division 2, Chapter 7 of the Ukiah City Code, commencing with Section 2604. 6. All businesses within the Downtown Parking and Business Improvement Area, including those businesses added to the area by the modifications provided in this Ordinance, shall be subject to all amendments to Division 18, Part 5 of the California Streets and Highways Code, commencing with Section 36500. 7. The method and basis of levying assessments and the improvements and activities funded by the levy of the assessments are not affected by this Ordinance. All revenues from the levy of the assessments will be used to benefit businesses within the parking and business improvement area, as modified, and will not be used outside the area or for any purpose other than the purposes approved by the City Council in accordance with the applicable provisions of the Streets and Highways Code and the Ukiah City Code. Ordinance No. Page 1 of 3 8. The businesses and property within the modified boundaries of the Downtown Parking and Business Improvement Area will be benefitted by the improvements and activities funded by the assessments to be levied in that area. 9. This Ordinance does not change the time and manner of collecting assessments. SECTION TWO. ADDITION OF SECTION 2605.5 Section 2605.5 is hereby added to the Ukiah City Code to read as follows: Section 2605.5: ADDITION OF AREA TO DISTRICT: In addition to the area described in Section 2605 of this Code, the downtown parking and business improvement area shall include an area described as follows: Beginning at the south boundary line of the existing Downtown Parking and Improvement District at the intersection of the centerline of Oak Street and the westerly extension of the south property line of parcel 002-301-37; thence heading southerly along the centerline of Oak Street to its intersection with Gobbi Street; thence easterly along the centerline of Gobbi Street to its intersection with the southerly extension of the east property line of parcel 002-302-49; thence heading northerly along the east property line of said parcel to its intersection with the south property line of parcel 002-302-32; thence easterly along the south property line of said parcel to its southeast corner; thence northerly along the eastern property line of said parcel to its northeast corner; thence northerly along the eastern property line of parcel 002-302-25 to its northeast corner; thence westerly along the north property line of said parcel to the southeast corner of parcel 002- 302-52; thence northerly along the east property line of said parcel to its northeast corner; thence a straight line northwesterly to the southeast corner of parcel 002- 302-37; thence northerly along the east property line of said parcel to its northeast corner; thence easterly along the north property line of parcel 002-302-38 to a point approximately 121 feet east of the southeast corner of parcel 002-302-55, referred to as the southeast corner of parcel 002-302-29 in Municipal Code section 2605, the south boundary line of the existing Downtown Parking and Improvement District. The area added by this Section shall be assessed and shall benefit in the same manner and subject to the same conditions as the area described in Section 2605. SECTION THREE. PUBLICATION. This Ordinance shall be published as required by law in a newspaper of general circulation published in the City of Ukiah. SECTION FOUR. EFFECTIVE DATE. Ordinance No. Page 2 of 3 AYES: NOES: ABSTAIN: ABSENT: This Ordinance shall become effective thirty (30) days after adoption. Introduced by title only on June 16, 1999, by the following roll call vote: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. None. None. None. Passed and adopted on AYES: NOES: ABSTAIN: ABSENT: , by the following roll call vote. ATTEST: Jim Mastin, Mayor Marie Ulvila, City Clerk B:I\ORD BOUNDARIES Ordinance No. Page 3 of 3 ITEM NO. 6 £ DATE: JULY 7, 1999 AGENDA SUMMARY REPORT SUBJECT: REJECTION OF CLAIM FOR DAMAGES RECEIVED FROM CRAWFORD'S VCR, AND REFERRAL TO THE JOINT POWERS AUTHORITY, REDWOOD EMPIRE MUNICIPAL INSURANCE FUND The claim from Crawford's VCR was received by the City of Ukiah on June 17, 1999 and alleges damages related to a power outage on June 9, 1999 at 1128 South State Street. Pursuant to City policy, it is recommended the City Council reject the claim as stated and refer it to the Redwood Empire Municipal Insurance Fund (REMIF). RECOMMENDED ACTION' Reject Claim for Damages received from Crawford's VCR; and Refer It to the Joint Powers Authority, REMIF. ALTERNATIVE COUNCIL POLICY OPTIONS: Alternative action not advised by the City's Risk Manager. Citizen Advised: Yes Requested by: Prepared by: Coordinated with: Attachments: Claimant Michael F. Harris, Risk Manager/Budget Officer Candace Horsley, City Manager 1. Claim of Crawford's VCR, pages 1-2. APPROVED: mfh:asrcc99 0707CLAIM Candace Horsley, City MInager NOTICE OF CLAIM AGAIN: THE CITY OF UKIAH, CALIFO This claim must be presented, as presc~bed by Parts 3 and 4 of Division 3.6, of 77tie State of California, by the claimant or by a person acb'ng on his/her behaff. RETURN COMPLETED FORM TO: CITY OF UKIAH . . . o CLAIMANT'S NAME: CLAIMANT'S ADDRESS: . . Government Col ClTY~ CITY CLERK'S DEPARTMENT Zip Code Work Phone Number Attn: City Clerk 300 Seminary Avenue Ukiah, California 95482 Number/Street and/or Post Office Box State Home Phone Number PERSON TO WHOM NOTICES REGARDING THIS CLAIM SHOULD BE SENT (if different from above): Numb&r/Street ~nd~t Office Box Telephone City State Zip Code ~c~ o~ ~cc/o~~~ o~ occu~~c~: _/./~. ~. ,_~ , ~-~-~ . ~~ , GENERAL DESCRIPTION OF THE ACCIDENT OR OCCURRENCE (A~ach additional space is needed): -- ~ _ pa~),.ff more . NAME(S), ff known, OF ANY PUBLIC EMPLOYEE(S) ALLEGEDLY CAUSING THE INJURY OR LOSS: . WITNESS(ES), ff known (optional): Name a. b. Address Telephone o DOCTOR(S)/HOSPITAL(S), ff any, WHERE CLAIMANT WAS TREA TED: Name Address a. b. Telephone i ~"!01 i',G, ENERAI. DES¢'R/i~,,TION OF THE INDEBTEDNESS, OBUGA~, INJU~Y. AMA E O,R~L/OSS so far iii ! ..... a"'s_~t"m'ay~t~J~"knuw~?J.'t~e.~'me of pre. se~Ltation of the claim: -~__~~~~~ ! ... - . 7'11' presentation of the claim, including the estimated amount of any proans~ctive injury, damage or loss, insofar as it may be known at the time of the presentation of the claim, together with the basis of computation of the amount claimed (for computation use #12 below). However, if the amount claimed exceeds ten thousand dollars ($10,000), no dollar amount shall be included in the claim. However, it shall indicate whether the claim would be a limited civil case (CCP § 85)." or 12. b~ THE BASIS OF COMPUTING THE TOTAL AMOUNT CLAIMED IS AS FOLLOWS: a. Damages incurred to date: Expenses for medical/hospital care: Loss of earnings: St~.c(al d~mages foc. ,s Genera/damages: Estimated prospective damages as far as known: Future expenses for medical and hospital care: Future loss of earnings: Other prospective special damages: Prospective genera/damages: This c/aim must be signed by the claimant or by some person on his/her behalf. A c/aim relating to a cause action for death or for injury to the person or to persona/property or growing crops shall be presented not later tha six (6) calendar months or 182 days after the accrual of the cause of action, whichever is longer. C/aims relating to any other causes of action shall be presented not later than one (1) year after_ accrual or. he cause of action. S/GNA TURE OF I~-AIMANT~S) Received in the Office of the City Clerk this day of NOTE: This form of claim is for your convenience only. Any other type of form maybe used/f desired, as long as it satisfies the requirements of the Government Code. The use of this form is not intended in any way to advise you of your legal rights or to interpret any law. ff you are in doubt regarding your legal rights or the interpretation of any law, you should seek legal counsel of your choice at your own expense. Rev. 5/18/99 ITEM NO. 6g DATE' July 7. 1999 AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF LEASE AGREEMENT WITH MARK ASHIKU FOR A PORTION OF THE UKIAH REGIONAL AIRPORT FOR THE CONSTRUCTION OF A SINGLE AIRCRAFT STORAGE HANGER Staff is in receipt of a request from a private aircraft operator to lease 2,500 square feet of the Ukiah regional Airport for the purpose of constructing a single aircraft hanger. The proposed hanger is location is the currently undeveloped area between the two existing corporate hangers directly south of the Federal Express facility. The site is consistent with the Airport Master Plan and the proposal has been approved by the Airport Commission. Should the Council approve the lease, the proposal will be forwarded to the Planning Commission for their review of the Site Development Permit. The lease value is proposed at the initial rate of $.03 per square foot or $75 per month, which is consistent with lease rates recently approved by the Council. The lease term is for a period of 40 years at which time the improvements will revert to the City's ownership. Staff believes the proposed lease is of significant benefit to the Airport through the provision of much needed storage for existing aircraft and the improvement of currently undeveloped property for airport related uses. RECOMMENDED ACTION: Approve lease with Mark Ashiku for a 2,500 square foot portion of Ukiah Regional Airport for the purpose of constructing a 50 x 50 foot aircraft hanger. ALTERNATIVE COUNCIL POLICY. OPTIONS: 1. Determine lease requires revision and approve as revised. 2. Determine lease is inappropriate and do not move to approve. Citizen Advised: N/A Requested by: Prepared by: Coordinated with: Attachments. 1. Proposed Lease Mark Ashiku J-~ a~ Larry W. DeKnoblough, Community Services Director and Michael FI Assistant City Manager. Candace Horsley, City Manager and Don Bua, Airport Manager APPROVED.~_~ ~ _~~,, ~ LO4 Candace Horsley, C~'y ~anager Ashiku.ASR LEASE AGREEMENT This Lease, made this day of , 1999, by and between the City of Ukiah, State of California, acting by and through its City Council, hereinafter referred to as "Lessor" and Mark Ahiku, a private aviation operator, hereinafter referred to as "Lessee." RECITALS; le Lessor has the authority contained in Government Code 37380, 37389 and 37395 to 1. LEASE. 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 2,500 square feet (50x50) located at the Ukiah Municipal Airport, more accurately identified in Exhibit "A" and known as "the leased premises." 1.1. The parties further agree that should the site identified in Exhibit "A" be determined infeasible for development for any reason, lessee shall retain an option for the development, contingent upon Lessee obtaining the necessary approvals by the Airport Commission, Planning Commission, and city Council, of the property identified in Exhibit "A.I" for period not to exceed lease municipal and airport property. 2. Under Governrnent Code section 37389 the Lessor has the authority to lease airport property for a term not to exceed fifty (50) years for the construction and maintenance of hangars and related purposes. 3. Lessee intends to lease airport property from Lessor to construct and maintain an airplane storage hangar. LEASE AGREEMENT three (3) months from the date of the initiation of this agreement. 2. TERM. The term of this lease shall commence on the date set forth above, and shall continue in effect for a period of forty (40) years, expiring at midnight on June 30, 2039. 3. RENT. 3.1 Amount. As rent for the term hereby demised, Lessee agrees to pay to Lessor the sum of $75 per month for the first three years of this agreement. At the commencement of each subsequent year the rent shall be increased at the rate equal to the Consumer's Price Index, however not to exceed 5%. 3.2 When due; late fees and interest. Rent shall be due on the fifth (5th) day of each month and shall be considered delinquent if not received by the Lessor's Finance Department located at 300 Seminary Avenue in Uk/ah by 5:00 p.m. on the tenth (10th) day of the month. Lessee shall pay a late fee of $10, if the payment is delinquent~ In addition, Lessor may charge Lessee interest on the unpaid portion of the delinquent payment until paid in full as provided in Ukiah City Code section 2051. - 3.3 Payment of taxes and assessments. Lessee shall also pay any real property, possessory interest or personal property taxes, and assessments imposed on the leased premises, property located on or affLxed to the lease premises or as a result of the lease, use or ownership of the leased premises. 4. USE AND IMPROVEMENTS. 4.1 Condition of the leased premises. Except as provided in Paragraph 1.1 of this lease, Lessee hereby agrees to accept the use of the leased premises in "AS IS" condition, understanding that Lessor makes no representations as to the condition of the premises or its suitabih'ty for the uses contemplated by Lessee. Lessee assumes the obligation at its own expense to remove and properly dispose of any toxic or hazardous substances that may exist on the premises, if such substances are found to exist on the premises and must be removed in order for Lessee to make use of the leased premises. Lessee represents that it has made a thorough inspection of the premises and has undertaken to repair or adequately warn of any conditions on the premises that might constitute a hazard or danger to persons using or present on the leased premises. Lessee understands that the subject premises contains a storm water discharge line maintained by Lessor and should Lessee complete improvements or construct any portion of a building over the storm water discharge line, Lessee agrees to allow Lessor complete and uninhibited access to said line for the purpose of maintenance and/or repairs. Lessee further agrees, at Lessee's sole expense, to bear the full cost of any and all repairs to any improvements, buildings, or portions thereof, which are damaged, altered, or relocated during Lessor's maintenance. 4.2 Use of Hangar. Lessee shall use the leased premises exclusively for the storage of aircraft and related purposes. If Lessee fails to use the Leased Premises for such purposes for a period of ninety (90) days, the lease shall terminate and Lessee shall restore possession to Lessor. Lessee shall keep the hangar neat and orderly, and clear of all cans, rags, boxes, excess aircraft parts, and other items. Lessee shall not interfere with the use of the airport by others and shall not maintain .,' or allow a nuisance on the Premises. 4.3 Improvem~nts and modifications. Within year one of this agreement Lessee agrees to complete the construction of a 2,500 (50 x 50) square foot aircraft storage hanger. Should lessee fail to construct the improvements within one year for the date of execution of this agreement, Lessor shall have the right to terminate the agreement in accordance with the conditions set forth in Paragraph 7. Lessee shall not initiate any improvements or alterations to the leased premises without the prior written approval of Lessor through its City Manager or his or her designee. 4.4 Maintenance and repair. Lessee agrees to keep the premises and all improvements in good repair and order and to bear the full cost for all maintenance and repair of the leased premises and all Lessee installed improvements. 4.5 Storage or use of toxic or hazardous substances. Lessee shall not dispose or permit the disposal of hazardous or toxic substances on the leased premises. If any hazardous or toxic substances are disposed of or released on the leased premises during the term of this lease, Lessee shall assume the entire obligation to clean up any such substances and shall fully indemnify, defend and hold harmless the Lessor and its officers, agents and employees from any claim, damage, loss, liability, cost or expense of any nature whatsoever arising out of the release or disposition on the leased premises of any toxic or hazardous substance. 4.6 Permits. Lessee shall acquire any necessary or required permits from the appropriate regulating bodyfor the use of the leased premises including but not limited to Planning Commission approval of a Site Development Permit. 4.7 Compliance with laws. Lessee shall insure that no alcoholic beverages are possessed or consmxexi on the leased premises at any time. Lessee shall not use or permit the leased premises to be used except in full compliance with all rules, regulations, laws or ordinances of the City of Ukiah and the State of California, and the Federal Government. 4.8 Utilities. Lessee shall furnish at its sole expense all utilities necessary for use of the leased premises, including, but not limited to, water, sewer service, electricity, natural gas, and garbage collection. $. ASSIGNMENT. Lessee will not assign this Lease or any interest therein and will not let or sublet the said premises or any part thereof without the written consent of the Lessor. Lessor may terminate this lease and recover possession of the lease premises, including any improvements which become the property of the Lessor upon termination of the lease, if any assignment occurs in violation of the terms of this paragraph. "Assignment" includes both voluntary assignments and assignments that occur involuntarily or by operation of law. 6. INDEMNIFICATION AND INSURANCE. 6.1 Indemnification. 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 leased premises, any defective condition or faulty construction of the leased 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 claims, liability, loss, cost, or other obligation, including reasonable attorneys' fees, on account of or arising out of Lessee's use of the leased premises. 6.2 Liability insurance. 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. TERMINATION. Failure to pay rent, when due, or to cOmply with any other provision of this lease shall constitute a material-breach of the lease and furnish grounds for termination of this lease. Any action taken or suffered by Lessee as a debtor under any insolvency or bankruptcy laws, including the filing of a voluntary or involuntary petition in the United States bankruptcy court, any assignment for the benefit of creditors or the appointment of a receiver shall constitute a breach of this lease. In such event, Lessor shall have the right to terminate this lease and retake possession of the lease premises and any improvements which upon termination of the lease become of the property of Lessor. Lessor or Lessee shall have the right to terminate this Lease on ninety (90) days' prior notice of termination. If Lessee has not breached the lease at the time the lease terminates and Lessor determines to relet the premises to non-governmental persons or entities for hangar purposes, Lessee shall have a right of first refusal to relet the Premises on the same terms and conditions the Lessor offers to such other persons or entities, if Lessee notifies Lessor that it wishes to exercise such right within ten (10) days of the date it is notified by Lessor that Lessor intends to relet the Premises. 8. HOLDING OVER. Holding over by the Lessee after the termination of this lease shall not constitute a renewal or extension thereof or give the Lessee any rights hereunder or in or to the leased premises. 9. INSPECTION. The Lessor and its authorized representatives shall have the right, at any reasonable time during the term of this lease, to enter upon the leased premises, or any part thereof, to inspect the same and all buildings and other improvements erected and placed thereon. 10. ATTORNEY'S FEES. In any legal action to enforce any of the terms of this Lease the prevailing party shall pay the other party its reasonable costs and attorneys' fees. 11. TIME OF ESSENCE. Time is of the essence of this agreement. 12. 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. 13. NOTICES. Any written notice required hereby shall be deemed given and received when personally served or placed in the United States mail, with proper first class postage prepaid, and addressed as follows: TO LESSEE: Mark Ashiku City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 14. 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. 15. PREVIOUS AGREEMENTS. Any and all existing statements 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. 16. 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. Entered on the date first written above. CITY OF UKIAH ATTEST: By: City Clerk LESSEE LD/AGREEMENTS ASHIKU. AGR By: Its: I1 I1'II ti ITl Ili-I:], , E×hibit "B" II.I:jI/}~AI,ICI:; liF, i~UII(I:;I,I!!iI'~'I'.U F'OI{ I,ESSEI:~,S (NO AUTO _1..l I1~;I.i1';!11~:~ ;~; et'ViCing Of'lice . Col,s~ercial Go~eral Liability coverage ("oc(:t~t-~-t?~(,~~ l~)t'~ CG OOOJ). l::~l~lo3, e~-'~; l,inl~Jllty l~gt~'a~ic~ (['of le:;g~3os witl~ .. .I. ~;~,~-;iJ l,i:ll~ilil. 3,' :1;1,00~},{}0(} i'~}t' oce:t~t-re~lc~} [or bodily ii,jury, personal. i~sj~'y ;]~],1 i)~'I~1~1.'(.3' (I;~sl;.ll,',c. If Col~llllt.ll'cJ;d L;CllCi';ll l.,iai~ility lli/;IJt'illlCt~ ' . i.,l:,t'egate lj~liL i.c; used citl~ct' ll~e . . ~, ,-~{s, iil~il. ~;1~:~1.1 hi,plY ';Ul~aratu-lY {.o t.l~is I~t'ojecl:/loc~Lio~ or i,,'~c~';~l ;~1[1[~'~?1[n[~2 li~il. :;l~all I}t~ [t.Jic:~ tl~e ruquirt2d occurrei~ce lin~it. 2. I'~l'l,.~3's~":' J.j:~bi.lily: :!,1.,00[),I100 1~¢~;.- :'~cc.ide~:t l'of bodily '1 l,~)l,{,~-tv l~,;~ll.';~lLCl?: F't~ll t'{~l~l;.Ict]ll~eiit cost will] LLO COJlI:;UYi~C~ . . . - . I~'ovi:;io~t. , , ,. r' I ....................................... r'~ I; · -- ~(~'~'.,; f. lr~¢lt~r.:[iljlr~:; ~' :;ttll'--j~:;t]t'ed t'~l.e~itJoILt; ~U l: be declared Lo ~'}(i ~l>l~rox, ecl by Ill,: t:if v. /st IJ~*' ~')l,tit~ of linc (;.il.y eitl)eJ;: l:l)t~ iI']:;UI'eL' slsall reduce or . .-. I ' ~:~:1~ tl,,.tl~ctil.~l~:; ~l' seJl'--iJ~:;tJJ.'~tl j-t~te~o~s ;J:; x'espec:Ls tlJta City, its ~lfit:j:~l':, e~t~l~lt~'[~?s :~cl v~ltJ~}lecrs; of tl~e Lessee sl~all pt'oriole a lin~f~ci~.~l · 15~f:~.:~t~l,~t~ ~;alJ~;l:}f:f.(~t'y to tJ~ City i}uat'~nl.~einl[ 1~3'~o~t ~>[ lo:;sus a~d . , ,, · , , :i:i,,'Gii'7 WJs to co,xtal~, or I;,~ endorsed to contain, the to,owing ' J. -l'l~f~ Cily, II,; ~f. lic~]':;, t~lli,.:Jal:,, q~t~l~los'"'s and volt~l~l:eet':; at'~ Lo bt~ ct~x,t?t'et_i :~:; j~;t~J-~:~l" x,~il, lJ rc:;l~?cl (.o liabJl. Jty :~ti:;i~g out o[ t)w)~ct'slxJl'~, 2 '~ }lsJ J..c:;:;¢~':; ]llStll.-;lllC(~ ct)v(.Tt';ll~e ~;]i;/.l.] be pt'illi;.ll'y iITST. II'LIITC(2 ils · _,. ~. _ a~] . (I,c ~;ity, il.:; ~)li. icet.,, ollici;~l~.;, e~l:~loy'e:; cl volunteers. A~x, i~SUL';.~ ~,~' :.;ell'..i~:;~':~sCze ~,~ai~lt;~i~cd I)y tl~t~ City, its o[licers, ol'[icials, J J I,~,r,,,rc II{..q,Jrrmq?t-~ jr! Colltrncl.-~ I ,,',' , :; ::Il I~Jrlli:;l] lliu city ~,~jf. li I~,,/,rr? w,.,t'k c~t~r~r'~:;._. 'l'l~r~. City ,',~:'li/i,~d ,.:~l,i~:; ut' :ill ~'r.?~ltlit'~ci i~l:;uv;I]~c~ ,~llucl. is~; f.]li? r:~;v~t'~ll~ra ;.'u~iui:.ecl by tl:t~.se Sl~ecil'Jcations ill ;:illS, ti,s:e. .. .. o. .:1 ITEM NO. DATE: JULY 7, 1999 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION REVISING CAPITAL IMPROVEMENT FEES FOR THE AIRPORT INDUSTRIAL PARK At staff's request, the public hearing for this issue was continued from June 16, to the meeting of July 7, 1999. The Staff Report prepared for the previous Council meeting is attached. RECOMMENDED ACTION' . . Receive public testimony concerning the proposed revision to the Capital Improvement Fees; and Adopt Resolution "Revising the Capital Improvement Fees for the Airport Industrial Park" as recommended by staff at the meeting. ALTERNATIVE COUNCIL POLICY OPTIONS: , . Determine additional modifications to the proposed fees are necessary, identify changes, and adopt revised Resolution. Determine fees are to remain as they are and do not adopt Resolution. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Pursuant to Law. Rick H. Kennedy, Director of Public Works/City Engineer Ip_.,~ Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Agenda Summary Report dated June 16, 1999, with attachments. R:l~DW:kk Candace Horsley, City M!nager AFEES.2 AGENDA SUMMARY ITEM NO. 8b DATE: JUNE 19, 1999 REPORT SUBJECT: PUBLIC HEARING FOR THE ADOPTION OF RESOLUTION REVISING CAPITAL IMPROVEMENT FEES FOR THE AIRPORT INDUSTRIAL PARK Summary Submitted for the City Council's consideration is a proposal to revise the Capital Improvement Fees, which are currently imposed on parcels of land within the Airport Industrial Park upon their development. A report entitled "Engineering Report for the Revision of the Airport Industrial Park Capital Improvement Fees", dated May 28, 1999 (Engineering Report) has been prepared for the purpose of presenting the information relevant to the proposed revision to the Capital Improvement Fees (attached). The Engineering Report was prepared in compliance with Division 9 of the Ukiah Municipal Code and the State of California Government Code Sections 66000 et. seq., pertaining to fees for development projects. The Engineering Report has been available for inspection by the public at City Hall at least 10 days prior to the noticed public hearing. The Notice of Public Hearing was published in the local newspaper twice on June 6, and June 13, 1999, in accordance with the law. In addition, the notice of the public hearing and a copy of the Engineering Report were mailed to all property owners of record 15 days prior to the public hearing. CONTINUED ON PAGE 2 RECOMMENDED ACTION' After receiving public testimony concerning the proposed revision to the Capital Improvement Fees, adopt the Resolution "Revising the Capital Improvement Fees for the Airport Industrial Park". ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Do not adopt Resolution. 2. Refer matter back to staff for further modifications. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Pursuant to Law. Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Resolution for Adoption. 2. Notice of Public Hearing. 3. 4. o Engineering Report dated May 28, 1999. Level of Service calculations prepared by Redwood Business Park Developer. Correspondence from Steve Weinberger dated May 31, 1999. APPROVED: .,..---_~. .... -, R:~PW:kk Candace Horsley, City Mlnager AFEES.AIP Public Hearing for the Adoption of Revised Capital Improvement Fees for the Airport Industrial Park June 16, 1999 Page 2 As described in the Engineering Report, circumstances and engineering assumptions in support of the amount of the fees initially adopted for imposition on the parcels have incurred changes. The changed conditions and assumptions reduce the scope of mitigation adopted for the Hastings Avenue/Washington Avenue and State Street intersection, and increase the level of effort in the mitigation for the US 101 southbound off-ramp and Talmage Road intersection. The cost to construct the modified mitigations is considerably lower than the initial total costs, therefore, a reduction in the Capital Improvement Fees imposed per acre of developable land based on proposed land use is appropriate. The proposed and current Capital Improvement Fees are shown on Attachment "1" of the Engineering Report. Submitted for adoption is a resolution "Revising the Capital Improvement Fees for the Airport Industrial Park." After conducting the public hearing for the purpose of receiving written and oral presentations concerning this matter, staff recommends that the City Council adopt the resolution revising the Capital Improvement Fees for the Airport Industrial Park. Background information concerning the establishment of Capital Improvement Fees for the Airport Industrial Park is provided in the Engineering Report. Redwood Business Park had indicated that it disagrees with the need to provide a second westbound left-turn lane on Talmage Road at Airport Park Boulevard, and the need to widen the north side of Talmage Road between the US 101 southbound off-ramp and Airport Park Boulevard. The developer contends that the existing inside westbound through lane can be converted to a combination through-left turn lane to create the second westbound left turn lane. The developer also contends that level of service for the left-turn movement can be improved by modifying the signal timing and he has submitted level of service calculations in support of his position. Staff disagrees with his assumptions, traffic volumes utilized, in particular, the number of east- and westbound through Talmage Road traffic, and the amount of green time assigned to each movement. As indicated in Mr. Weinberger's letter of May 31, 1999, there are other issues and concerns raised by staff and the City's Consultant. These issues will be presented during staff's presentation and during the public hearing. RHK:kk R:I~PW AFEES.AIP RESOLUTION NO.~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH REVISING THE CAPITAL IMPROVEMENT FEES FOR THE AIRPORT INDUSTRIAL PARK WHEREAS, on May 7, 1997, the Ukiah City Council adopted Resolution No. 97-70 Establishing the Airport Industrial Park Capital Improvement Fees within the City of Ukiah subsequent to receiving a revised Engineering Report for the Establishment of Airport Industrial Park Capital Improvement Fees and conducting a public hearing to receive public testimony in accordance with law; and WHEREAS, the Capital Improvement Fees are to fund identified off-site capital improvements needed to mitigate impacts caused by development within the Airport Industrial Park; and WHEREAS, an "Engineering Report for the Revision of the Airport Industrial Park Capital Improvement Fees" dated May 28, 1999, ("Engineering Report") has been prepared and presented to the City Council and made available to the public for inspection at the Civic Center during regular business hours 10 days prior to the public I~earing; and WHEREAS, the Engineering Report describes changes to circumstances and engineering assumptions in support of the amount of the fees established by Resolution No. 97-70, thereby necessitating a revision to the Capital Improvement Fees; and WHEREAS, the changed circumstances and engineering assumptions reduce the total cost to construct the off-site capital improvements needed to mitigate impacts caused by the development within the Airport Industrial Park and, therefore, the Capital Improvement Fees imposed on developable land based on proposed land use should be reduced to reflect the reduction in the total cost to construct the improvements; and Resolution No. /~ ~;~-~/z~/_./',,,c~___,4~ Z'" ~'~-~. / Page 1 of 3 WHEREAS, the notice of the hearing on the proposed revision to tile Airport Industrial Park Capital Improvement Fee was provided to those requesting advance notice pursuant to Section 66017 of the State of California Government Code, not less than 14 days prior to the hearing; and WHEREAS, a Notice of Public Hearing was published in accordance with Section 6062a of the State of California Government Code. NOW, THEREFORE, IT IS HEREBY RESOLVED by the Ukiah City Council as follows: 1. Revised Fee. The Capital Improvement Fees imposed on parcels within the Airport Industrial Park per acre of developable land based on proposed land use shall be revised to the following: Fast food restaurant- $15,876.28; Gas station/mini-mart- $24,859.16; Office/retail- $4,189.42; Retail- $4,870.80; Industrial- $1,611.66; Auto dealership - $3,440.16; Auto parts/auto care - $5,260.03. These fees are shown on Attachment "1" of the Engineering Report and they are based on the future value of capital needed to construct the identified improvements five (5) years from the date of adoption of this Resolution. The amount of fee due for each parcel to be developed shall be discounted to its present value at the time payment is made on an annual interest rate of 5.25%, and the time remaining in full quader increments of a year of the five (5) year period. Discount factors are provided in Attachment "K" of the Engineering Report. 2. Reimbursement of Excess Funds.. Pursuant to Section 66001 of the State of California Government Code, fees already collected from developed parcels in excess of the new revised fees shall be reimbursed to the current record owner or owners including the interest accrued thereon. The reimbursements shall be made as shown in Attachment "L" of the Engineering Report. The reimbursements shall be made within 30 Resolution No. Page 2 of 3 ~____ ¢?~' ~ calendar days from the date the 90 day period of filing a protest has expired, unless a pf'otest or legal challenge is filed. 3. Effective Date of Revised Fees. The effective date for the implementation of the revised fee shall be June 17, 1999. It has been determined that the 60 day delay in the application of new fee or increases in the fee from the date of adoption of the establishing Resolutio~ ,,ursuant to Section 66017 of the State of California Government Code does not apply to a reduction to an existing Capital Improvement Fee. 4. Filing a Protest. The 90 day period for filing a protest pursuant to the State of California Government Code Section 66020 begins on the date this Resolution is adopted by the City Council. 5. Judicial Action to Challenge this Resolution. The time limits provided in State of California Government Code Section 66020 for filing an action or preceding to attack, review, set aside, void or annul the proposed revised fees by this Resolution apply. 6. Provisions of Resolution No. 97-70. All provisions of Resolution No. 97-70 not revised by or not in conflict with this Resolution shall remain in full force and effect. PASSED AND ADOPTED on this~ day, , 1999, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Jim Mastin, Mayor Marie Ulvila, City Clerk Resolution No. Page 3 of 3 HOTICE OF PUBLIC HEARING Notice is I lereby Given that tile LJIdah City Council will l]old a Public Hearing to consi(ler a revision to the Aiq)od Industrial Park (ALP) capital improvement fees which are cur"rently imposed on parcels within tile AlP when they are developed. The capital improvement fees collected will finance the construction of mitigation measures at three idenlified off-site locations. Mitigation measures will be needed at the I-lastings Avent~e/Wasl~ington Avenue and State Street inlersection, Airport Park [3oulevard and Talnlage Road intersection, and along Talmage Road in tl~e vicinity of the US 10'1 soull'lt)ot]~ld off-ra~l~P by reason of impacts caused by development within tt~e AlP. The current and proposed capital improvement fees per acre of developable land based on proposed land use are as follows: Land Use Fast Food Restaurant Gas Slation/Mini-Mart Office/Retail Retail Industrial Auto Dealersl~ip Auto Parts/Auto Care Current Fee -- $34',864.79 54,728.91 7,346.49 10,702.92 Proposed Fee $15,876.28 24,859.16 4,189.42 4,870.80 3,564.97 1,611.66 7,554.63 3,440.16 11,510.69 5,260.03 Subsequent to tile adoption of the current capital improvement fees, circumsta~ces and engi~ee~ing assumptions in st~pport of the amount of tl~e fees imposed have incurred changes. Tl~e changed conditions and assumptions, including the analysis of ll~e fee revisio~s, are presented in ltle "Engineering Report for the Revision of tl']e Aiq_~orl Industrial Pail( Capital In~provement Fees," dated May 28, '1999 (Engineering l"lel)ort). The Engineering Report may l)e reviewed at the City Public Works Department, Civic Center, 300 Seminary Avenue, Ukiah, during regular office hours. Nolice is hereby further given that the Public Hearing will be held on Wednes(lay, June 16, 1999, at 7:00 p.m., or as soon thereafter as this matter may be heard, and conti~]tJed from time to tin]e as tile same may require in the Council Chambers of tlie Ukial] Civic Center, 300 Seminary AventJe, Ukiah, California, at which tin']e and place all persons interested [nay appear and be heard. This notice is given to provide the necessary 10 day public review period of the Engineering l-3eport. This notice a~ld a copy of tl~e Engineering Report have been mailed 14 days prior to the Public I-leafing Page 1 of 2 to all property owners within tile Airport Industrial Park which are affected by tile proposed revision to the capital improvement fees. Please pass this notice on to your neighbors, friends, or other interested parties. You are encouraged to discuss the proposed revisions, express any views you may have, or request additional i~fformation from Rick Seanor at the City of Ukiah Civic Center, 300 Seminary Avenue, Uldah, California, 95482, (707) 463-6296 Marie Ulvila, (~ Clerk Publish' June 6 and 13, 1999 Page 2 of 2 ENGINEERING REPORT FOR THE REVISION OF THE AIRPORT INDUSTRIAL PARK CAPITAL IMPROVEMENT FEES May 28, 1999 Repor t_P_ur_p_ose This Engineering Report presents information relevant to a proposed revision to the capitol improvement fees currently imposed on developable parcels within the Airport Industrial Park. Circumstances and changed conditions necessitating the fee revisions are described and an analysis of the fee revision is presented. This Engineering Report complies with the requirements set forth in Article 2, Chapter 5, Division 9, of the Ukiatl Municipal Code. For detailed information pertaining to the establishment of the capital improvement fee, the reader is referred to the Engineering Report dated April 17, 1997, on file in the City Engineer's office. Backgro_und Sum. mary On May 7, 1997, tile Ukiah City Council adopted Resolution No. 97-70 establishing capital improvement fees which are to be imposed on parcels within the Airport Industrial Park upon their development. The Airport Industrial Park comprises all land bounded on the north by Talmage Road, on the east by the U.S. 101 Highway, on the west by the Northwestern Pacific Railroad, and on the south by the apex created by the intersection of the railroad and highway rights-of-way. Three distinct project areas within the Airport Industrial Park containing developable lands have been designated and they are the 1) Redwood Business Park, 2) Airport Business Park, and 3) the Norgard Vineyard. Further development of the lands within the Airport Industrial Park subsequent to the Wal- Mart project will cause impacts to three off-site locations. The impacted locations have been identified as the 1) Hastings Avenue/Washington Avenue and State Street intersection, 2) the Talmage Road and Airport Park Boulevard intersection, and 3) the southbound U.S. 101 off-ramp at Talmage Road. The cost to mitigate the identified impacts are to be born by all development occurring within the Airport Industrial Park subsequent to the Wal-Mart project. Tile capital improvement fee imposed on the parcels as they develop will be used to construct the mitigation measures. Rationa_l_e for the Fee Revision Subsequent to the adoption of the capital improvement fees, circumstances and engineering assumptions in support of the amount of the fee imposed on the parcels have incurred changes. The changed circumstances and engineering assumptions are as follows: · In lieu of widening tile north side of Talmage Road between the southbound U.S. 101 off-ramp and Airport Park Boulevard for the purpose of mitigating a safety concern identified in the Redwood Business Park EIR and subsequent Traffic Engineering Reports, the Redwood Business Park developer maintained that the hilt·gat·on could be accommodated by moving the centerline stripe to the south. Although a Caltrans Traffic Engineering representative had indicated in previous correspondence that a striping alternative would not be acceptable because of i~npacts to merging eastbound traffic, City staff agreed to submit to Caltrans for further review a detailed plan depicting the striping alternative. In his letter of April 1,1999, Mr. Jim Graham, Chief of Traffic Operations for District 1, reiterated their objection to shifting the striping on tile overpass to the south. It is their position that tl~e existing available width on the south side of the overpass structure is needed for tile weaving area between the two ramps, as well as for non-motorized traffic. Caltrans concurred tllat a new westbound outside lane could function as a dedicated lane for westbound traffic turning right from the off-ramp. This would mitigate the sight distance safety concern at the southbound U.S. 101 off-ramp. Caltrans also concurred that it is desirable to carry tile new outside lane through the intersection of Airport Park Boulevard. To accommodate the 1) new outside westbound lane; 2) the minimum lane and shoulder widths as required by Caltrans; and 3) the two westbound left-turn lanes from Talmage Road, it is necessary that the widening of Talmage Road between Airport Park Boulevard and the U.S. 101 off-ramp be more extensive than previously assumed. The cost estimate to mitigate the safety concern has increased to $68,963 from the previous estimate of $39,410 (Attachment "D"). The cost estimate to provide new loops and pavement markings on the east leg of the Airport Park Boulevard and Talmage Road intersection to accommodate the additional left-turn lane for westbound traffic has been revised to $15,450 from the previous estimate of $19,600 (Attachment "F"). · Tile Redwood Business Park developer has taken exception to the saturation flow rate utilized in the intersection level of service calculations for the westbound lane group of the Hastings Avenue/Washington Avenue and State Street intersection under the post-project scenario. The value of 800 passenger cars per hour of green per lane (pcphgpl) was utilized for the westbound lane group while the value of 1700 was used for the lane groups in tile other three legs of the intersection under both the pre-project and post-project scenarios. The use of a lower value for the saturation flow rate necessitated the addition of two lanes for the Hastings Avenue westbound approach to achieve acceptable level of services for the westbound left, through, and right vehicular movements. The addition of two more turn lanes (one designated left-turn and one designated right-turn) for Hastings Avenue westbound direction require the acquisition of land on the north side of Hastings Avenue. The required new pavement width would require either the relocation of the existing single family residence at the northeast corner or its demolition. An appraisal of the property was performed and it was determined that acquisition of the entire parcel and demolition of the structure was the superior alternative. Relocating the structure to the north would restrict vehicular access to the property from State Street making the structure relocation and partial acquisition of the site inferior to tile preferred alternative of complete parcel acquisition and structure demolition. Tile Redwood Business Park developer claimed that the City would improperly benefit from the selection of the entire parcel acquisition and structure demolition alternative because the selected alternative would acquire a parcel within Zone A of the Airport Clear Zone. The Redwood Business Park developer also objected to the City's application of a 32 percent Engineering Administration and project inspection markup, and a subsequent 20 percent contingency markup to the land, and structure acquisition cost of $197,700 in the mitigation cost estimate. The cost for the acquisition of City property has not been included. Tile Redwood Business Park developer has filed a Petition for Writ of Mandate with the Mendocino Superior Court challenging the Resolution establishing off-site capital improvement fees adopted by the City to the Airport Industrial Park. The developer has alleged various grounds upon which he contends the City's fees are i~valid and should be either set aside or revised by the Court. Various filings have been made and subsequent to those filings the City and developer began settlement discussions which have developed into a tentative agreement which could result in a settlement of the litigation. A tentative agreement calls for the City to adopt revised fees through a public hearing process as required by law. -l't~e saturation flow rate is the flow in vehicles per hour that can be accommodated by a lane group assuming that the green phase was always available to that lane group. To reflect actual conditions it is best to measure the prevailing saturation flow rate. Most often, an ideal saturation flow rate is selected and then adjusted for various variables that may be applicable at the study location. The adjustments or variables will include lane width, percent heavy vehicles, approach grade, parking lanes, blocking effect of local buses, development area type, right-turns, and left- turns. Lane groups on each leg of an intersection may not have the same saturation flow rate depending upon the various adjustment factors discussed above. According to the City's Consultant who prepared the traffic analysis, a saturation flow rate of 800 was selected for the westbound lanes on Hastings Avenue because when inserted in the program it produced vehicle delays that were similar to the delays actually measured at the intersection. The Consultant summarized that the westbound lane had a lower saturation flow rate because of the lane width of Hastings Avenue and possibly the high hedge along the south line o of the parcel at the northeast corner. The Consultant utilized the same saturation flow rate for the mitigated condition because the lane width 200 feet east of the intersection remained the same as the pre-project condition and that this leg of l-lastings Avenue was slated as the preferred truck route to the Airport Industrial Park per City staff's direction. In the spirit of compromise and with the intent of settling a major legal dispute with the Redwood Business Park developer, City staff is agreeing to utilize a saturation flow rate of 1700 for the post-project, mitigated level of service calculations for the westbound lane group. From this adjustment, the addition of only one lane to the westbound lane group (one designated left) will return the level of service of the westbound lanes to acceptable levels for the post-project scenario. This additional lane can be accommodated by the acquisition of a strip of land from the parcel at the northeast corner without the need of relocating or demolishing the single family rosidence. It will also necessitate the acquisition of a portion of the City's parcel at the southeast corner. The land acquisition cost has been reduced to $6,000 from the previous estimate of $197,700. Legal and associated costs of $3,300, including a 10 percent contingency, has been included in the new estimate. Staff cautions that the new cost estimate for the mitigation of the Hastings Avenue intersection with State Street does not provide a factor of safety. It is possible that the actual post-project saturation flow rate for the westbound lane group of Hastings Avenue be between 1700 and 800. As noted in Appendix IV of the Highway Capacity Manual, "Tile ideal saturation flow rate is usually stable over a period of time for similar traffic conditions in a given community. Values measured in the same lane during repetitive weekday traffic conditions normally exhibit relatively narrow distributions. On the other hand, saturation flow rates for different communities or different traffic conditions and compositions, even at the same location may vary significantly." It is also noted that the acquisition of a six-foot wide strip from the parcel located at the northeast corner will place tile south face of tile existing single family residence to within four to five feet of the bank of the future sidewalk. This condition will most likely necessitate the need to construct a sound barrier which will recreate the tunnel effect for the west bound driver that exists today and which was cited as a reason why this leg of the intersection was assigned a lower saturation flow rate. It has been agreed that a 15 percent markup for engineering, construction administration and project inspection, and a 10 percent markup for contingency will be applied to the mitigation measure cost estimate. -the capital improvement fee per acre applied to each parcel is applied to the developable area of the parcel. Subsequent to the establishment of the capital improvement fee, a more detailed analysis of the lands within the Airport Business 4 o o Park (Parcel No. 30) that can be developed has been made. Wetlands within the Airport Business Park have been delineated and their boundaries have been approved by the Corps of Engineers. Four developable sections of 2.29 acres, 0.511 acres, 2.98 acres, and 3.0 acres have been identified within Parcel 30. The four sites total 8.78 acres as compared to the initial stated developable acreage of 14.19 acres. Tile reduced developable acreage for the Airport Business Park affects tile capital improvement fee distribution. The City of Ukiah, at a cost of $5,616, has completed the re-signalization work necessary to create the double left-turn lanes for northbound Airport Park Boulevard at Talmage Road. This work completes a portion of Mitigation No. 2 as described on Page 46 of the Redwood Business Park EIR. The capital improvement fees have been adjusted to include this cost for reimbursement to the City. At the time the capital improvement fee was established it was assumed the major portion of the Airport Industrial Park would be developed by the second quarter of 2002 and that the required mitigation measures would need to be constructed at that time. Developrnent within the Airport Industrial Park has not occurred within tt~e time frame originally assumed. The Park build out is now projected to occur in tile second quarter of 2004, or five years from this time period. A revised discount schedule has been prepared as Attachment "K" to reflect the new build-out date. ¢_Q_Q_¢_ LU~ i o n In consideration of the changed conditions and assumptions as described above, it is proposed that the capital improvement fees imposed on parcels within the Airport Industrial Park as they are developed be revised to the per-acre cost for each type of zoning as shown on Attachment "1." The total fee to be imposed on each parcel as it is depicted on Attachnlent "A" shall be as shown in Attachment "J." The fee per acre and the total parcel fee are future value amounts in 2004 dollars. The capital improvement fee imposed shall be discounted as provided on Attachment "K." Since the inception of the Airport Industrial Park capital improvement fee, fees from five projects have been paid. If the revised capital improvement fees are adopted, the amount of $65,857.50 as indicated in Attachment "L" will have to be refunded to the respective developers. The amount of reimbursement for each project is determined by calculating the new fee, making the adjustment in accordance with the revised discount table, and subtracting the adjusted fee from the fee previously paid. Interest on the amount refundable has also been included at 4.76% annual interest rate compounded monthly on the amount refundable. The stated annual interest rate of 4.76% is the average annual rate earned by the fund over a 22-month period. Estima_ted Cost of Capital Improvements Talmage Road/US 101 Southbound Exit Ramp Talmage Road/Airport Park Boulevard South State Street/Washington Avenue/Hastings Avenue SUBTOTAL $ 68,963 $ 15,450 $103.975 $188,388 Engineering, Administration, Construction & Project Inspection at 15% Contingencies at 10% SUBTOTAL $ 28,258 $ 18.839 $235,485 Hastings Ave. land acquisition related costs (includes 10% contingency) TOTAL in 1999 dollars $ 3,300 $238,785 l_C_a_tc_~.a_t_e_amount needed for c_onstruction in the year 2004. An average annual inflation rate of 4% instead of 5% over five years will be utilized to account for the unknown time of receipt of capital improvement fees frorn development projects. Any accrued interest (and principal) not utilized will be redistributed to developers upon completion of construction of all ide~ltified improven~ents in this report. Per formula, Future Value = Present Value (1 + i)n Present Value = $238,785; i = 4% = 0.04; n = 5 years Therefore, future value = $ 290,518 Future Value = $ 290,518 Add $ 10,600 Add $ 2,026 Add $ 3,590 Add $ 10,000 Add $ 3.7_50. Total Fee $ 320,484 (Traffic Studies, Oct. 1996 to April 1997) (Professional engineering services for signal modification at Airport Park Blvd. & Talmage Road by Whitlock & Weinberger Transportation, Inc. July- October, 1998) (Signal modification at Airport Park Blvd. & Talmage Road by Republic Electric, October 16, 1998) ($2,000 per year traffic volume counts & intersection LOS analysis) (annual administration fee, 5 yrs. @ $30/hour x 25 hrs.) ~11 ATTACHMENT "B" Fee Apportionment Summary Weekday P.M. Peak Hour Number Land Use of Units Trip Rate In Out Total Fair Share Per Unit ~ Oflice/Ret~ 67.0 ksf 2.06 23 115 138 [.)iscoun! for h~ternal Caplure Trips 2 8 10 Land Use Total 21 107 128 6.34% Industrial Pa~k 648 ksf 0.91 126 464 590 Discount for Inlemal Caplure Trips 9 35 44 Land Use Total 117 429 546 27.03% Auto Dealership "~4.7 ksf 2.62 101 147 248 12.28% ,, ~uto Parts/Auto Care 33.7 ksf' 4.00 59 76 135 6.68% f-~etail 224.4 ksf 4.28 480 481 961 L)iscount for h~lernal Caplu~e Trips 107 72 179 Land Use Total 373 409 782 38.71% Fast Food Restaurant -2.376 36.56 45 42 87 Discount for h~lernal Caplure Trips 11 11 22 Land Use Total 34 31 65 3.22% Gas Station/Mini-Mart 2.452 62.57 77 77 154 Discoun! for h~ternal Caplu/e Trips 19 19 38 Land Use Total 58 58 116 5.74% , Site Total 2020 100.00% __ Notes: . . No discount for internal capture trips was taken for auto related uses due to the fact that these uses are not conducive to peak hour linked trips. Discount for internal capture trips of the office and industrial park uses is based on one- half of the 15 percent internal capture assumption. -rhe balance of the internal capture trips were assigned to the retail uses. ATTACHMENT Il C ll APPROX. £ C.':LE: I]E IAII,IIN(} 4' tlIGtl I TALMAGE ROAD CIIY OF UI(IAIi DESCRIPTION INTERSECTION IMPROVEMENTS 1 RI:VISIONS SttEET NO. DATE ~/~2/~ ATTACHMENT "D" Proposed Fee Revision Cost Estimate lot Talmage Road and Southbound US 101 and i i ~} _~i.-' i tor the Widening of the h(~rth side of Talmage Road between US 10i and Airport Park Boulevard _ __ Based on-'~°st EStimates-'-Prepared by Boyle Engineering on April 12, 1~96 Refere~ce'~oyle Engineering Drawi.fig_N%_~-~_ ._ Item ................... ~-~tq-mSied ...... ~t-of ~- No: .... i~m ................... _ ........ Quantity -~-~e ....... ~i~-P~'~ .... - i ...... Clearing & Grubbing ~ ............ ~ ............... ~ .......... ~5~'~ ........ 2 .... ~awcut A~ ............................. 552 LF $2.00 $1,104.00 3 Roadway ExcaVation ......... 19~ ..........~y ....... $~5~-~ ........ 4 -Roadway Fill ................... i05 ............ -~Y ..........~-i5:~ ...... $i,5~5.~ 5 Reniove Concrete Sidewalk, C&G .... 4,100 .... SF - $2.00- -$8,200.'00 0 Co~struct Wheelcllair Ramp _ -' -2 ......... EA - $~,400'~6 ~4~80~t00 7 C°nstruct curb & Gutter ...... 552 ........... LF ..... $20:00 8 Construct Sidewalk .......... 48i ............ CF ..... $2~.0~ ~! 2,025.00 9 Aggregate Base' ........ 260 ..... ~ON - '$20.60 $5,200.00 ]0 Asphalt Concrete 55 TON '$52.00 $2,860.00 760 LF $1.00 $760.00 1 1 Place Traffic Stripe . _ - ]2 Place Pavenlent Marking 56'- SF $4.00 $224.00 13 ?elocate Street Light ..... i ...... LS $~-,500.~- .. _~'~00~00 ]4- -~eiocate Storm 'Drain Catch BaSip..-_~ ....'.'- .i ~ ....... LS $3,000.00 . _.~3,000.0~. ~ 5 Relocate Utility Vault 2 ~6 Relocate Sign 1 _ ~ .... 17 Right ofwayand Permits .................. ~ ......... ' $6~°~°~ l)a~c and Time Printed: 6/1/99 at 9:34-AN{ lqlename: CIFS-99Att-D ATTACHMENT "E" · ::,,,. ...... -'-..t'.~. --'c~J- ..... "::i::), · 0 I TALMAGLRQAD- APPROX. SCALE: 1",,-40' ¢IIY OF UKIAII DESCRIPIlON INTERSECTION IMPROVEMENTS I REVISIONS P-3 DATE 4/12/96 ATTACHMENT "F" Proposed Fee Revision I CITY OF UKIAH . Cos( Estimale for Talmage Road and AirPor(I~rk'Boulevard ........ I Based on Cos[ Es__ti~nates Pr_e[)ared bY_BOY!e_E.?_gil~e_e, ri!]g °_[~_A~_r.i!._12'-1_99-6 Refer~nc~ Boyle Engineering Dr_awing .No_: P:_3_ Item · . Ho. Item 1 Place lralfic Stripe 2 ,"Place Pavemen! Marking 3 1Modify Traffic Signal & Detector.Loops / .Esiima.t~.d- unit o~ - QUanti~y .... MeaSUre`.· uni-i. ~-ri~ "21o LF -$1100 $~'10100 60 SF $4.00 $240.00 I LS $15,000100 $15,000.00 .... Subtotal $15,450.00 I):,~. :u]d'l'in~c l'rinlcd: 6/1/99 at' 9:34 AM l;'ilcn~m¢: CIFS-99Att-I; RLLOC. AIE 1RAf[IC LOOPS APPROACII FIRE I I¥ORANI' Ft-I E tdt:)ZTtt ~ P'E_ t~g: CIIY OF UI(IAII ATTACHMENT '"--- If IS IALL 1 liE. It/-- SIGtlAL SIAJIOA I1ESEI II G !1 A APPROX. SCALE: 1'-40' I1ELOCAI£ SIGNAL SIAIIDARO RELOCAIE IELE POLE ;-IASI'INGs flELOCAIE IRAlrtr lc IIlSIALL NEW SIGNAL LOOPS SIGI,,IAL SlAN( WI] APPROACll OOAIE IEL£ UlJ itESE[ VALVE OOX INSTALL flEW SIGNAL POLE DESCRIPIION INTERSECTION IMPROVEMENTS -- I1ELOGAIE 1RAlrlqC SIGNAL LOOPS NB APPROACI! ,,"~ ~]--~'~ .o. --J DATE -t ATTACHMENT "H" Proposed Fee Revision OF UKIAH ~I]-Y ....... , Soutl~ sta~' ~tree~-and wash~-~gton Ave-/Hastings--Av-e:- ~,ost Esti~nate for . ,- ~ , ~::::~,~-~,~-(sn-~-ii'~2, 1996 Based oi~ (5ost-~sti~nates Prepared t)y uoy~e r_.u~,- ~ ...................... ._ Relelel~ce Boyle Engineering-Drawing No. P'! ............................. ' ~,,:q,~,-M b_y_:_ R?1~ S~a:~or I ....................................... Estimated Unit of Ite~ .......... oua-ntity -Measu(e- "di'iit P_ri_c_e_. No. Item .... 1 ...... LS $~,~)00.00 1 /Clearing & Grubbing 300 .... LF . .- _-_$~.~0_ 2 Sawcut AC _ . ........ § .... EA . .$40_0:0_0_... 3 IRe'set Water Valve to Grade - ' i00 ' ' CY $25.00 4 iRoadway Excavation ............ ~_ EA ' $2,400.00 5 IcOnstruct Wheelchair Ramp ........... - ............. 450 LF ..... 6 tConstructCurb &~utter' ' 4.50' LF - $25.0Q 7 construcl Sidewalk 75 TON $20.00 $52:00 ,B tAggregate Base ' ~ "50 TON 9 /Aspha!t Concr_ete -- ' i-- 170~5 .... LF $1.00 10 tlSiace Tratlic Stripe ........ t .... 1~-00 ..... ~F 11 iPia(~e-Pavement Marking 12 tModiiy l-rattle signal & Detector Loops ..... -t ~'--- ~-- " ES 13 tLand Acquisition -- .. Total Price ..... $2,500.00 '_ $60o.9~ $1,299_.90 $2,500.00 . -$4,80o o_o . _"_$9,00Q:00. $11,250,00 - $~,5oo~o0 $2,600:00 $!,625.00 ~68,066;6~- $6o,ooo.oo SUbtotal ;103,975.O0 ! )ate and 'l'i~,c l'rimcd: 6/1/99 at: 9:34 AM Filcname: CIF5-99Att-I'I ATTACHMENT "!" Proposed Fee Revision ~]iY OF UKIAI{ 13~ll~?Nl~k~! ~,0,~T TRAFFIC AN D FEES BY LAND USE FOR 'fHE Al · _ Land Use ._ _ Fast Food Restau,'ant (;as Station/Mini-Mart Office/Retail Retail Industrial h~to Dealersl~ip . Auto Parts/Auto Care · - .................. ~ _pO Rl=_ ! N BU_sT R i A_L__P_A _R K_ ............... Percel~t of / Required Acres Total Boundary I "' Capital Per Proposed Current '-'~M ~aR ~odr-- ~--(~((~ction Year 2004) Use Acre Acre 5:74 ~' - -'~i~'~':~ .... 0.~ .... $2~]~]6 $54,728-9~.. 6.34 I $20,318.69 4.85 - $4,1~9'.42 6.68 ·$21.408,33 -- 4.07-; _. $5,2~9.~_. $.~i,5i6.'6~. _ . _ ._. TOTALS ~ B.___o~u,~dary Traffic Volume = (To~S Gene,-a~ed b~ LESS (internal Tri-ps Ge~e~:ated bY AiF') . ATTACHMENT "J" Proposed Fee Revision CI-IY OF UKIAH I ........... I ....... SUMMARY oF CAPITAL IMPROVEMENT. FEES By-pAjR~.EL 'N.UMBER.AIRPORT INDUS-FEI.AL PA.RK_ l','eparc~l l]y' l~k'l~ S,.'.~,,,,r ....... Lot ID 42 dl 2 3 4 7 1] ]2 13 ! d 5 25 29 30 3l 32 33 34 35 3G 37 38 39 40 .......... Proposed Current Assessor's . _-]_i _Parc_el No;_ L ....-j ._-f--__ _iii_ ~_~.~_~-a--U S-e ....................... '-A..cr?_~t~ t f__ ] .... _Fee ....... i80-070-4~ ........... 1 ]ack-'/r~-~ii~-'~-~-R~[~-~-nt ......... o.'6-~ .... jt ....... ~i~i~_-.~- .... SUBTOTAL (FAST FOOD_RE_ST_AURA_N_T) ............. 0-_6~.__ $10,319.58 .... $22,662.12 i80 070-39 "- Shell ~ta~io~-/Mini-Mart" 0.74 $18,395.78 $40,499.39 . SUBT0~:AL' (GAS__STA.TiON~-~i_N-_j~.-JvI-_A_fi_~)--~: ~-___~ _'_ ~ 9:_7_~_-J :_ ' $i~,~.~-~' - - $46,4~g.~ ...... i8o-o7o-o ........ .......... 9:0_O .. .... 180-0:70-02 Talmage__O_f_[i _ce Par_k._ ....... 0.00 180-0-70-03 '- North Cai Wood ..... ~.0~ 180-070-29 ' N o,tlf {~gq_n_tJ~_S' i~-]gi nee.._ring' .... ii_ O-°g. i80-070-28 Olfice/Retail ....... 1.53 180-070-27 Redwood (~)a S(-Regiona i '~,~n te.r 0-00 180-070-26 Offic~)Retail 1.21 180-070-25 -' Off-ice/l~e{ail - ' - 1.09 180 070-24. Office/Retail 1.02 SUBTOTAL (OFFICE/RETAIL) 4-85 ]80.07038 Walmart (Existing) 0.00 180-080-41 - Retail 1.00 180-080-53 -- Re';(ail 1.88 18o-o8o-54 La-Z-Boy Furniture Galleries ].28 18(.)-080- 55 Retail 1.06 180080-52 Staple.s©ffi? .SuPe!-sto[e.._ 2.18 180-080- 51 Food-4-Less 5.04 180-080-44,45 F'riedma-n Brothers 10.51_ 180_070.38 Walmad:-(~xpansion)' ' - 2:5_2_ - ' SUBTOTAL (RETAIL) ........ 25.47 ' - 180-080-'i6 .... _. !n_d__u_s_t_r_i_a_! . ._ .... i80.O80.25--' Industrial 180 080-26 vacant building _. _ 180080-19 - Industrial ..... i8o-o8o. ......... ." ............... .._ - i80-080:~ --' Industrial -'' i8o-o80-28-' Industrial - 180_080.:59 ....... in~t~Str, ial '-' .._ 180-080-30 Industrial - 180-110-07 Mendg__c.!ng. Brewing 180-] 10-02,06 ...... Industrial . . 180-120-04 Industrial 184-080-01- ----i ndu~t~ial SUBTOTAL (IN_DUST_RIAL) 180-0,'30-66,67 Auto Dealership - i~,0.080.~,6j ......... Auto Dealership 180080-60,61 Auto Parts/Auto Care 180-()80-59 Aut_o__De_a!ership _ . . 180-080-58 ' .. . Au_to_D_ e_a_! ~_r:~ h i P - - i80.o80.5) ...... Auto Dealership 180-0~0-56 - Auto'~a}-{~]~uto (Sare 'sUBToTAL (AU~0 DEALERSitlP/AUTO 0ARTS/AuT° ~ARE) 90.00 $o.oo $o.oo 90.00 $o.oo $o.oo .......... $0_-09 .... $8.,96_ .2.:_7~ $6,409.81 $1_!__,24_ 0:_1' 3_ 90.00 $5,069.20 $4,566.47 $4,273.21 $20,318.69 $0.00 $8,889.25 $8,0O7.67 $7,493.42 $44,.~3:20 $0.oo $o.oo $_4.. ;.8_7_0:_._8-0_,. ~10,702.92 $9,157.11 $20,121.49 $6',~_~zi.'6~ $13,699.7_4 . $5,163.05 $! 1,34_5:09_ $10,618.35 ..... $~1,_1_72-1_._4 _. $!_17,48__7-_6_7 $12,274.42 $~6_,9_7 ]._.35 3.5a ..... $5,Z05.28 912,6.2_o.o! o.oo 9o.oo 9o.oo .............. 1.oo - {i;~i i.~6 93,564.97 2.23 93,594.0] _ _$_7_ ,.949:_89__ 4.4e} .................. 97,236.36 __ $!6_,oo_6._74_ 4.59 ....... 97,397.53 $16,363.23 5.56- _- _- __$8_,__9__6_0_:8_4 ........ $! 9_,821:_2_6- 9.00 $ _1__4-;5_.Q4:9_6_ _ $32,0~4._77 8.78 ....... $14,150.39 $50.,58_6.99- 1.20 $1,933.99 $4,_27_ 7~:_97 1.67 ....... ~_5,74._5..0. 7_ ,- Th_e .... "ilC~::5 $5,573.06 current i.86 .......... 1.84 99,678.46 lists' - 2.09 $7,i89.94 this 2.08 $7,155.53 one 2.23 15.51 ' $60,763.77 $139,774.08 ATTACHMENT "K" Discount Table AIRPORT INDUSTRIAL PARK, CAPITAL IMPROVEMENT FEES suM--- OF [5iscOUNT ?_ _A__cToRS Q~a-r}~r-1: January i through March 31 Qu-a-~{~'2 = April 1 through June 30 ......... Quarter 3 July 1 ti~rough September· 30 ..... October' 30 through De'~5~r- ~ 1 ..... Quartar4 - ] .... D~CO~-~-]]]-]'- YEAR 1997 1998 QUARTER 2 4 1 2 3 4 1 2 3 4 1 2 1999 i 2980 1.2811 i 2645' __ . 2000 1.24~ ..... 1.2320 ._ 3 i 2160_. 2003 1 t i 1847 _2001 ~ I '~.i~9~ -i J 1-1243 -.2002 .... ~ ..... J ..... i.ii66 ..... '" '! 1' ' 1'0399 - 1.0264 2004 1.0131 1.4-407 _ ' .... 1.4220-'.]] . 1.4036 I .... 1.3854-- ' __ -- 1.3497 - - 1.3323- I 3150 .- . -2 t' !:0909 .................. ' .......... Discount Factor :: (1 + (iuterest/4))"U Where interest = 5.25% agd n = number of quarter_? remaining I '_ doiiar~-in a~:-o~:(ja'nc'e wiifi Attaciiment 'j' and the ThePaymentis beirig marie in the 3rd quari~r ~f ~.~~F:3~ "l:i~e discount-" EXa~nple: Future vaiU~ ol the fee for a par'~i i~' lee is to be paid on ~ugus~ 30, 1999. factor is tl~erelore 1.2811. ~t~~°f~l~efeedueis"X"d°llars/ 1.2811. /y /Zg 1):dc and'l'i,nc i'rmlcd: 6/i/99 at 9:43 AM lqlennmc: ClFDiscount'l'ableS-99 I]}E.I'AI UMEN'i' ()F ]'IIANSI]OIt-I'A'I'ION I)I,qlIUCI 1, P.O. BOX3/O0 FI/I~FI(A, CA 95502-3700 'II )1 ~?nf l'lmno (707) 4~5.G463 I'ho,,q: (707) 445-6377 rnx: (~0/) 441-5820 Al.il I, 19V9 l-Men-222-0.3/0.5 GRAY DAVIS, Governor Mr. Rick !I. Kcm~edy I)i~cclor o1'! tlhlm Works { :ily of Ukiah 300 Semhm~ v Avcnue (tkiah, CA 95482 I)car Mr. Kcnncdy: 'l'his is a li~ll,~xv-up Io my leller of Jammry 5, 1999, and our phone conversation of March 16 regarding your I,Ol)osal Io ~,~dif3, slriping on 'l'alnmgc Road ti'om Iht 101/222 Scim~alion Io Aitpod Pink Lloulcva[d. \Vc I,avc co~,qflclcd our review .f Ihe proposed design and have Ihc lbilov.,ing commenls: 'l'cn Ii,of wide i,l,CS a~c nol acccplable. 'l'he dcsh'able lane whlth Ibr all la,cs is lwclvc (cci. 'l'he ~ni~il~,~n acceplalde widlh lbr Ihe interior lanes.is eleven feel. 'l'he oulside lanes will need to be Iwelve f'ccl wide. " l'avc,l sh(mhlcrs arc lo be a minimum of £ot,' lb, et wide lo accommodale bicyclisls. II is ,mi acccplable lo shift lhe slriping on lite 101/222 Scparalion to Iht soulh. The existing available wi(lll~ is needed lbr thc weavh~g area between the two ramps and for non-motorJzcd tta£fic. A m'~v mllside wcsll)o[md Ih,'t.,gh lane at thc Airlmr! l)ark Boulcva[d signalized intersection is a tlcsi['al)le Ib;,1,~c. l lowcvcr, lira soulhl)~,,n(I 1o weslbmmd off-mn~p should conlinue Io be slop conlrolled. While Ihe new wcslb(mnd ~..nbcr lwo 1;,nc could fimclion as a dedicated Imm Ibr xvcsll)tmnd ltaf'lJc lu~ni~g ~ight fi~.,, ll,c ol'f~anq~, lhc~c shouhl be tmresh icled movement fi'om the ofl:-ra~,q~ lo Iht xvestbound ntn~d~cr one la.c, and s~bscqucntly Io thc wcslbound left-turn lane al. Aiqmtl Pa,k lloulevar(I. I hope Ihis lc:Iici clmilies Callrans' i~osilion on this mallcr, if you have any lhdhcr qucstions, you may call mc at 445-6377. =_S! ~[.E_. O~ CALIFORI',IIA BUSIt,~E$Sz__I RANSPORTATION AI~ID tlOt.ISIHG AGENCY GRAY DAVISL G2ye_rp°_r I'.)EPARTMEHI' OF TRANSPOR'rAllON DIS'I RICT 1, P.O. BOX 3700 I!UREI<A, CA 95502--3700 '1 I.)[) t'l~one 7071445-6463 ('11)7) 4,15-6377 January 5, 1999 Mr. Rick Il'. Kennedy Director of Public Works City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 i)ear Mr. Kennedy: 'l'llis is lo infi)rn~ you ! received yotmr Icltcr dated l)ecem~fl)er 23, 1(.)98 regarding your prolmsnl Io n~odiFy tim slrilfi~lg t)l~ Talmage Road fi'o~n tile 101/222 Selmndi(m lo Airlm~l Park lloulew~n.I. ilefi)re respondil~g to your letter, I xvould like to have tile i)roposal reviewed by Caltrans' geomclHcian fi)r consistency with design standards. I expect to be able to ansxver yot~r letter some ti~e ill lrebrumy. Sincerely, [,J~E. GRAIIAM, Chief '-Tramc Operations Office 300 SEMffqAR¥-~,VE. UKIAH, CA 95'182-5400 · /M')MIf,,/. 7011.163 620(1 · Iq./lllIC .LA~I!IY 463 6242/6214 · fAX tt 101/46] 620'1 · Decefnber 23, 1998 Jan~es E. Grahanl, Chief Traffic OI)eralions Officer DEPARTMENT OF TRANSF'ORTATION No~ll~ I'~egion, Eureka Office Post Office Box 3700 Eureka, California 95502-3700 IRE: I'ROPOSEI) TRAF'f:IC ST'RIPING MODIFICATION ()lq TAI_MAGI~ ROAD (S.R.- 222) A'I-' T! IE ,q.l',~. '101 SOU-I/I/.IOIJNI) OFF-I?AMI' Dear Mr. Grallarn: As a follow-uI) to tl ~e meeting l~el(I at your office in Eureka on Novelnber 6, 1998, l)elween Gary Akerslrom (IRedwoo(I Btlsilfess Park), IRicl( Seanor (Cily of Ukial0 aim st~i)l~illi~(/II~e e~closed pla~ wl~icl~ del)icls II~e Cily's I)rOl)O.sed h-alfic slril)i~g alo~g l'~lmage Road in ll~e vici~ily of ll~e Slale roule 101 soult~l)ound off-ralni~. -l-i~e slril~il~!j I~o~iificalio~s are proposed 1o creale a dedicaled la~e for soull~l~o~nd Io weslbo~n~i SR 101 olr--ra~l~ haflic and for eslablisl~ing dual leil-.lurl~ lanes k~r w~;sll¢ot~d Io sotdl~bot~nd h-affic al lhe Airport Pad( Boulevard and Tahnage Road inlerseclion. The I)roposal includes Ille I)lacen~e~t of cl~a~l~elizers lo sel)arale tl~rougl~ wesli.)oun~l Irallic ll~e Tahnage Overl)ass frown ll~e sot~tlfl)ound lo weslbound off-faint:} lraffic. 13eca~se of lhe sharl) l~l'n frofn ll'le off-fatal) lc.') lhe weslbou~id lane, it may be desirable to sloi} vel~icles prior Io ll~e lurn. As we l lave l)reviously discussed, mitigations have I)een Menlifie¢l as a I'estlll of anlicil)aled frei)aC:Is I~y I'eason (.)f (levelol-mie~ll willlin lille Aii-l)Ol-I Ili(lllsllial I]al'l(. Ov(}r Ille ~:~tll-se of live (5) y(:~'s, . t.v(.~,~l (:l~a~(l~:S I~aw) l~eeJ~ ~(1() Io II~e ~c(:()~l~e~(l()tl ~ilifl:~li(~s ;~ltl, tl,orofo~(~, I tl~i~k it [o be use/ul to sull~a~ize ll~eso mili~alions aim tl~e cl~a~scs ll~erelo wl~icl~ affect Caltran's facilities. Inilially, llle inlpacts al~(t recommended miligalions were addressed in lhe WaI-Mal-I Ell? t)repam~l by l_eolmrd Cl~afles and Associales. The WaI-Malt Eli'S, also addresse~i I~uiM out of ll-~e l~e~iwood [?;~lsiness Park, as well as, cumulalive pills project condili~l',s. Tile l/e(Iw~n(I [lllsilless l"aik collslilules lite largesl pollioll ~1 Ille Ai~'l')o~l llltitisl~ial Pall(. Tllose I~liligalions l'}erlaining 1o Caltrans facililies near file Tahnage corridor as klenlified in II~e Wal-Mart EIR were as follows: Mr. Janms E. Graham, Chief I)eccn~lmr 23, 1998 l~age 2 WaI-Mad Project Only: . Tl'~e Talmage Road/Airport Park Boulevard intersection should be signalized when wa rra n led. . TI}e S.R. 101 solltlfl)ound off-ramp to weslbound Talmage Road sliould be [ealirjl~ed to con~e(;l lo Tahnage Road at a 90 degree angle. o -file westbound left-ltlrn lane at lhe Talmage l?oad/Airport Park Botllevard inlersection si]ouici be lengthened from its existing 100 foot length 1o 220-240 feet. out . -Ille 'Falmafle Road/,~,.l?. 101 no~tllt)otmd off-raml)inlerseclion should l)e sigllalized wllen warrallted. . 'l'l~e S.R. 10'1 soul. l~l:~ound off-ramp for weslbound Tahnage sl]ouM l)e sigJ~alized t,vllell warrallle~t all(I li~e following imi)rovomenls/lll~-}flificalions shotIM !)~-:; Inade: a. Elirninale soutllbound off-ramp Io eas[bound Talmage loop ramp. Wi(lel~ Ille sotlll~l)otmd ofr-raml) approacl] lo-I-almage lo two lal~es, one for rigl~t-lurns al'M olle for lefl-turns. P, esel've riglll-of-way for a tl~ird i'a~ill) lane if needed. C. Res[ripe lanes on and west of lhe 'rahnage freeway overpass (shil't 1o south) and provide a sl~ort left-turn lane on lhe weslbound approacli lo ll~e southbound oF~-ranlp. d. Provide a second left-turr~ lane on the Tahnage weslbound approach to Airporl Park B~)~levard. Eac, i~ lane sllall I)e 270 - 280 feet long. ProvMe a sllorl right-tunl lalle on II~e 'rahnage wesll)ound al')proacll to ll~e road leading lo llle neighl)orl~ood norlh of Airpolt Pall( Boulevard. The recoll~men¢led miligalion measures nllml)ere(l 1 lhru 3 al)ove llave i)een coi~lple/ed. ]'he ellclose(! sh'ipil~?j lllodificalion proposal for-I'ahn~lfje l?oa(i would fa~:ililale lbo ilnl~lel~l~::~llali<~n of nlilirlalio~l ll'leasill'e 5d alld wouM lllost likoly eliminale Ille I](}(-}(ll rOI' miligali~'~ll 5e since lwo wesllJotlild [llru lalles wotIM be i'elaille(l. Mr..lances E. Graham, Chief Decc~ni~cr 23, 1998 i~agc 3 As arliclllaled in Palricia Secoy's leller of March 6, 1992, Ille Dislricl. look exceplioll Io ll~e proposo(I n~iligalion meastlre calling for lite elimination of Ille sotlllibound loop Io easll'.)otlnd Tahnage and combining ll~at movement witll file southbound of Framl) for weslbotl~M Tahnage (meastlre ntlmbers 6 arm 5b in lhis leller). Ms. Secoy sug.0ested that llle sotlllli~ound off-ramp for wesll)ound Talnlage lraffic be combilled wilh tile off-.ralnp loop for easll}otlnd Talmage (silnilar to ll~e existing US 101/Gobbi Slreet inlercharl~je). 'rl~is wotlM elilninate a polential re(luclion in siglit dislance brougl'it al)olit I)y lhe recon figuration of tile sotillfl.)ound to wesll)otlnd Tahnage raml) Io a 90° inlorseclion witll -l'allllage f~,oad. -l'ile l'~lll consullal~t agreed lllat Ms. Secoy's sll£1gestion ilad sol~le merit, llowever, tl~e consultant believed lllal any westbound backed tip tral'fic wouM extend to ll~e same Iocali~rl as tile Ell? proposed realignment of lhe ramp and 1.lie sigl-lt lines for weslt)ound Ira[ftc oi~ Tahnage would slill i)e an issue (resl)onse to colnll~ents). As we experionce loday willl file near 90° reconfiguralion of Ille soulllt)ound to weslbound Tahnagc: Road off--ra~l~, visil~ilily of wesll)ot~nd vehicles for d~'ivors on ll~e so~li~l~ound ralnl) i:; ill,paired I~y llle po~leslrian rail on Ille noilll sMe o1' ille overt)ass, as woll as, carol)or i~ Ille oveq)ass sl. rtlcltlre. Tills safely concerll llas l:}eell al-liculaled ill ll~e Traffic P, eporl I~repared by Whillocl( and Weiilberger. Prior Io ll~e eslablisl~n~ent of a cai)ital iml)rovement fee wllicli woilltl be assessed on all post W;~l-Mart (tevelol)nlellt will,in llle Airport Indushial Paik, Ille Cily proctlled Ille service?; of Wllillock and Weilfi)erger (W-'l'rans) for file pllrl}ose of revisiling Illo il~lpacls an~! i~ lili~lalioils relale{I Io h'a/lic an(! whicll were i~ lenlified iii Ille W~iI-Malt EII:{. TI ~(: !~oi)o0 co~clusio~s re-affi~r~ed some previot~sly reco~'nmended ~niligalions willie oll~e~-s were recon~l~ended for elilninalion. The recommendation for a secon(I westl)oul'ld left-trim lane at-I'ah~lage and Airport Pad( Boulevard remains while ll~e prol)osed recommendalions for II~e sifjl~alizalion of ll~e sotll, l~l_}otlnd and norllfl)otlnd of[-ranlps have been eliminale~l. Cily Stall does riot believe vellicle l)aci(ups [roln tile ramps onto file freeway mainline will occur by reason of tl~e project nor will the conlintling and fulure shortqerm peal( traffic warrant capital aim mainlellance inveshnents in traffic signals at II'~ese Iocalions. To n~iliflale Ihe Irafl~ic safely concern regarding tl~e vellicle visii)ility ilnpacl at ll~e -I'ahll;l{le I{o~M bo oxl. eIMe<l l)acl( Io lllo SOlllllJ)otlll(I off-lalllI10I1(I allow Ille olf-rllllll) lrafli(; turnin(j ii{lilt Io tulll illlo ils owl~ lalle wil. lloul conflict. -l-lie el~closod proposed roslriping Plan provides ti~is recomnlended measure. IJl)t':l~ acceplance ol' I. lle l]el)ol'l i)rel)are(I I)y W--Trans, Ille Cily coll<lllcted Ille necessary l)tll~li<: llo;IrilLrj all{i a(i~)l)le~! ~:~ll)ilal ilnplovelllenl foes wlli(:ll ale a.'-;.';ossod oil ;ill I~<).';I Wal.- Mall ~l~:w;Iol.~n~elll willlill Ille Ailpoll lll(lllslrial Pall( Io i)ay 'for Ille ~l~lol~l~:<l llliti{j;tliol~s rocon~lnendod ill Ille W-Trans I'(epolt. Currenlly, Illo i)rogralil calls for renloval al~(! reconshucliol~ of ll~e curb and gutter on file nollll side of-Fallnage belween Airpoll Park 13oulevard and II]e soutlllJou~]d off-ramp for llle i)t~rpose of accoll~ll~odaling Mr. Jaunts Ii. Grahmn, Cl~iel~ l)ccc~hcr 23, 1998 i~age 4 ll~e secof~(I wesll)ound lhrough lane. 1-he developer of lite Redwood Business Park has inquire(I if ll]e reconm'len(led seconal! wesll)oun(I lane co[.iM I)e co~lslrt~cled l)y lllovil~g II~e ce~]ledine along Talmage to tl]e soulh inslead of rebuilding tile soniewhat new curb and gullet, l~,eslripin9 to acllieve program objeclives would be cost effective and Ille Cily Slaff would s~.lt)l')Ort tile reslril')ing allernative if supporled by Calh'ans staff. A! ll~e conclusion of yo~lr meeling of November 6 meeling, il was suggested that a delailed and scaled reslriping plan be submilted. The enclosed plan serves lllis purpose. I believe we can acllieve ll~e Cily's desired resulls by moving ll~e centerline 4 1o 5 feet Io ll-~e soull~. ir II~e l)ish'icl apl)roves Ihe r~roposed restriping allernative, file Cily will revise ll'~e miligation cost esli~ale and lake ll~e necessary sleps Io revise II~e capital improvemer~l fees ac(:or~li~gly. Conslru(:lion drawings wo~.~ld lhen be I)repared tot II~e l]ishict's al~Proval, and II~e w~l~ wo~ld i)e l~O~lo~ed u~,.ler l)e~'~nil by a co~h'aclo~' I~irc~l i)y II~e Cily. I[ II~c [)isldcl will ~(~I ~c(:cl~t II~e (le~li(:aled weslt)ou~(I ll~ro[~gl~ lane for so~lllbc.)~ind off-r'a~nl)Ira[[ic l)ec:atl'.~o of weaving conc(3111s, wo will ~leecl Io kn(~w lllat. 'l"lle safely co~lcerll llave 1o I)e iniligaled by moving li~e stop bar furlher sotllll wllicli wotlld also r~ecessilale lnoving llle Tahnage cenle[line to the soulll as well. Enclosed for your reference are copies of lhat po[lion of tile Wal-Mart Draft and Final EIR dealing willi lrafl'ic circulation, and a copy of llle W-Trans Report daled April 17, '!997. Your most earliest review and accel)tance of this proposal is requested. Rick H. Kennedy / I Director of Public Works/City r CC: (:andace I-lorsley, Cily Manager I)avid i~,al')l)oil, Cily AIIorlley (:;aly Akerstrolil, Redwood Business Park R:I\PW LGRAI lAM I)EI'ARTMENT OF TRANSPORTATIOhl T~, FZEG~ON, EUREI(A OFFICE, P.O. BOX 3~00 EII[{I.:I~A, CA 95502-3100 ['hone 7071445-G463 (707)'145-6416 March 28, 1997 1 -Men-222/101 Mr. Rick SeaiIor Oepuly Pireclor of Public works Cily of Ukial] 300 Seminary Drive Ukial~, CA 95842 Dear Mi'. Seanor 1-1~is leller is in response lo a discussion I had yesterday wilh Mr. Steve Weinberger of Wtra~s, ;_rK! tl~e fax you sent 1o n~e, concernilig proposed modification lo llle existing roadway slripi~g o~ 'l-al~nage Road on tile Route 222/101 Separation. A'; I ~,~dersla~ld il, Ille I~Oposal is lo Inove Ille cenlellille of '1 ahllaqe Road h'ol~] its ¢~nrerll Ior:alio~ al)proxi~nalely six or eigM feet soulh, Ihus narrowing Ihe ~aslbound lane on -I al~age I~oad Io 12 or 14 feet wide. As we discussed, Callrans has col~cerns with nlovi~g lt~e cerlle~li~Je ~.ff-I ahnage Road Io ll~e soultl. We believe tile added la~e and slloulder wiclltl is r~ecess;~y !o accor]lrllodo[e llle nlerge and weavi~lg rl'loverllellJs Illal occur between tile souJJd)oulld Io easlbourld Route 101 o[['ralilp and Ihe easlbound !o iloi Illbou~id Roule 10'1 onralllp. 'llle shoulder is also ~eeded for bicycle Irafac. I will not t)e able Io allend next week's City Council meel. ing and llearing on this mailer. Please i~esei~l tills letler lo II~e Cily Council so that Caltrans' position oil lilts proposal is LJr~der s If you have any questio~m next week concerrling this matter, you may contact Mr. Royal McCarll~y, District Permit Engineer, al (707) 445-6385. Thank you for ltle opportunity to comment on tiffs proposed change. Sincerely, A _..///// J'/~MES E. GRAHAM, Clfief Traffic Operatiolls Office Mr. Sieve Weirlberger, Wl'rarls / ,PR - 3 1997 CITY OF UKIAH DEPL OF PUBLIC WORKS mmmmmemmmmemmememememeemmmmmmmmemm~mmmmmemmmmmmmeeemmmmmmmmmmmmmmemmmmm lb~FBRSBCTIOH ) Al rpor~ ~erk Dr./T~lm~ge Romd ciky o~ ~tmh eS HCH Ope=&tlone 17 · 15 I .I I I (''' V 22 --- 1.0 1.1 1.1 1.0 42& ---) 2.1 (HO. Of LANES) 7~ -o- 1.1 1.0 2.1 1.1 " I I I " I I. I # + I 1ol ~ 12~ 1.1 2.1<--- 1.0 I 'v 21 446 1'4AY 2 G i].99 CITY OF UKIAH DEPT. OF PUBLIC WORKS mmmmemmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmlmmmmmmmmmmmmmmmmmmmmmmmmmmmm mmmmmmmm--mm----mmmmmmmmmmm~emmmmmm~mmmmmmmmmmmmmmmemmmmmmmmmmmmmmmmmmmmmmm ....................... . .............................. ~ ....... ~ IS H~ 17 31' IS J <'-' V 22--- ~.4 ~.~ 1.~ 1.0 2 I )7:] 414 . LOS Software Licensed to GARY AKERSTROM by TJKM Condition: 03/31./99 INTERSECTION 1 Airport Park B1/Talmage Ukiah Count Date Time Peak Hour 85 HCM Operations ACTUATED,NON-CBD 82-SEC CYCLE PHASE GRN Y+R LOST 17 55 15 ! <--- v ---> [ 1 N-LR ].3 4 1.0 22 --- 1.0 1.1 1.1 1.0 1.1 --- 28 2 S-LTR 4 4 1.0 3 E-LTR 16 4 1 . 0 244 ---> 2.1 (NO. OF LANES) 2.1<--- 307 4 N-R 33 4 1.0 N I I I I.!AY 2 6 1999 W + E 494 0 740 s CITY OF UKIAH RTOR CNFL PED W/ MIN PRK % BUS %tlVY ARR PEAK flOUR SAT APP VPH PEDS PIIASE GRN ING GRA STP VEH TYP FACTOR FLOW 12345678 LT TIt RT LEFT THRU RGHT NB 0 0 0 N 0.0 0 2 2 2 3 1.00 1.00 1.00 ]_700 SB 0 0 0 N 0.0 0 2 2 2 3 1.00 1.00 1.00 1700 EB 0 0 0 N 0.0 0 2 2 2 3 1.00 1.00 1.00 1700 WB 0 0 0 N 0.0 0 2 2 2 3 1.00 1.00 1.00 ]700 LANE ADJ LANE WIDTH ADJ SAT GROUP (FT.) VOL VOL FLOW NB L R PHASE ORDER 12345678 v/s ................................. _ 10.0 494 519 2880 0.180 1 0.195 12.0 740 740 1431 0.517 1 4 0.646 G/C CAPAC 562 925 I,ANE LIAPRCII GROUP OIDELAY V/C DELAY SI& I,OS 0.923* 39.7 D] 2].8 O.800 9.9 BI C SB L 12.0 15 15 1599 0.009 T 12.0 55 R 12.0 17 TR 12.0 72 72 1623 0.044 EB L 12.0 22 22 1599 0.014 T 12.0 244 R 12.0 408 TR 12.0 652 685 3050 0.224 0.085 136 0.085 139 0.232 371 0. 232 70'] 0.110 26.3 DI 25.7 I D I 0.520, 25.5 D I 0.059 0.969~ 18.7 CI 36.1 D I 36.7 DI WB L 12.0 696 696 1599 0.435 T 12.0 307 R 12.0 28 TR 12.0 335 352 3324 0.106 4 0.439 702 4 4 4 0.439 1459 + 0.991, 41.5 E[ 3]_.1 0.241 9.3 BI *=CRITICAL LANE GROUP DELAY= 28.3 SEC/VEIl V/C =0.92 INT=TAL-APB.ITX,VOL= ,CAP=LOSCAP.TAB LOS Software Licensed to GARY AKERSTROM by TJKM Condition- INT~.~.~T N Airport Par ~i~almage 03/31/99 Count Date 85 HCM Operations Time 17 55 15 I <--- v ---> 22 --- 1.0 1.1 1.1 1'0 1.1 --- 244 ---> 2.1 (NO. OF LANES) 2.2<--- 408 --- 1.1 2.0 0.0 1.0 2.1 --- N i I I W + E 494 0 740 S RTOR CNFL PED W/ MIN PRK Ukiah Peak Hour 28 307 696 ACTUATED,NON-CBD 82-SEC CYCLE PHASE GRN Y+R LOST 1 N-LR ].7 4 1.0 2 S-LTR 5 4 1.0 3 E-LTR 19 4 1 . 0 4 N-R 25 4 1.0 W-LTR %HVY ARR PEAK HOUR SAT % BUS APP VPtt PEDS PHASE GRN ING GRA STP .................................... 12345678 NB 0 0 0 N 0.0 0 SB 0 0 0 N 0.0 0 EB 0 0 0 N 0.0 0 WB 0 0 0 N 0.0 0 VEIl TYP FACTOR LT TH RT LEFT TIIRU RGttT 2 2 2 3 1.00 1.00 1.00 2 2 2 3 1.00 1.00 1.00 2 2 2 3 1.00 1.00 1.00 2 2 2 3 1.00 1.00 1.00 FI,OW 1700 1'1 O0 1700 1'? O0 LANE ADJ LANE WIDTH ADJ SAT GROUP (FT.) VOL VOL FLOW v/s PHASE ORDER 12345678 I, ANE L GI/OUP O G/C CAPAC V/C DELAY S REIt I I)ELAY Los NB L 10.0 494 519 2880 0.180 1 R 12.0 740 740 1431 0.517 1 4 SB EB L 12.0 15 15 1599 0.009 2 T 12.0 55 2 R 12.0 17 2 TR 12.0 72 72 1623 0.044 2 0.244 702 0.738 24.6 CI 0.598 855 0.865* ].4.5 BI 0.098 156 0.096 25.6 D[ I I 0.098 158 0.455* 23.8 CI L 12.0 22 22 1599 0.014 3 T 12.0 244 3 R 12.0 408 3 TR 12.0 652 685 3050 0.224 3 0.268 429 0.051 16.9 C[ I 0.268 818 0.837~ 22.8 C[ 18.5 C 24.1 C 22.6 C WB L 12.0 696 4 T 12.0 307 4 R 12.0 28 4 LTR 12.0 1031 1134 4864 0.233 4 0.341 1661 0.683 15.7 15.7 C *=CRITICAL LANE GROUP DELAY= 18.6 SEC/VEt{ INT=TAL-APB ITX,VOL V/C =0.82 ,CAP=LOSCAP.TAB 1999 NO.TH COUNTIES 'ENGINEERING COMPANY · ' 4ZS T, IJ~AG[ ~O.4,1) - UKIAIt, CA 4JSLE2 ,,, ('707) 41:t-l~l - f~t (707) F~ (707) 46~-$68i ............. '" ' FAX 11ZANSMISSION COVER SHEET °~,~: .14-.,,~ 2'¢ ¢' ' ...... , . ~ ,,; ~ / ~ ....... ~ .... - ~_~ ,~~ ' ~~ ....... :-, ...... YOH SItO~D R. ECE~~ PAo~S), ~CLI~G'~S CO~'SttEET. IF YOH ~ NOT ~EI~ ~L ~ PAGES; PLEASE CALL (707) q62-1961. ~ ~ ..... "' ~ ~ "'~ .... ~"~' ~"~' , ,1~ :m.... ' .......... 'd cjlS~'ON 'LOS Software Licensed to GARY AKERSTROM by TJKH Condition: 05/28/99 INTERSECTION 1 Airport Park B1/Talmage Ukiah Count Date Time Peak Hour mmmmmmmmm~ m mmmmmmmmmwm 85 tlCH Operations 17 31 15 , { <--- v ---> 22 --- 1.0 1.1 1.1 1.0 1.1 --- 355 ---> 2.1 (NO. OF haNES) .246 --- 1,1 2.1 0,0 2,1 W + E 395 0 679 S 2 .'2<--- ~TOR CNFL PED W/ HIN PRK APP VPH PEDS PHASE GRN lNG NB '0 'SS 0 ES' 0 -'dB 0 LANE LANE ~IDTH G~OU~ (~.) NB L 10:0 T 12.0 R 12.0 0 0 N 0 0 N 0 0 N 0 0 N ADJ SAT VOL VOL FLOW V/S 395 0 679 BUS %tlVY ARA PEAK IIOUR SAT STP 'Vii;Il ~WP FACTOR FI,O~ mmmm~m~ LT Ttl RT LEFT THRU RGItT 0.0 0 2 2 2 '3 1.00 1.00 1.00 0.0 O- 2 2 2 3 1.00 1.00 1.00 0.0 0' 2 ' 2 2 '3 1,00 1.00 1.00 0.0 0' 2 2 2 3 1-00 1.00 1.00 PHA~E ORDER. 12345678.' G/C 'CAPAC . . 1074 "1181 4398 0,269'1 ' ' ...0,319'1405 0.841, 17.6 C{ 1700 1700 1700, 1700 LANE LIAPRCH GROUP O IDELAY V/C DELAY S{& LOS c LTR SB L T R TH 'EH L T R TR ~B L T 11.3 1'2,0 12.0 12.0 12.0 12,0 15 31 17 '48. · 22 15 1599 0.009 ..2 '.'... 0.111 178 0.084 21.8,C[ '-19.8 48:1594 0,030 2 ..0,111 177-.0.271, 19.1 C[ 22 1599 0.014 3 . 0.250 ' 400 0.055 15.6 C[ 19.7 12.0 12.0 12.0 12.0 12.0 355 3 246 3 601 '631 3159 0,200 3 ---- 4~. m m m m m m ,~mm, -- m m m 414 4 373 4 o.2So 790 { C 0.799. 19..8 C'{ I ].6.4 I c R 12.0 28 LTR 12.0 815 *=CRITICAL LANE GROUP INT=TAL-APB.ITK,VOL= 9./E 'd § 18 7' ON 4 I 896 4899 0.183 4 0.264 1293. 0.693, 1_6.4 Cl DELAY= 17.8 SEC/VEIl , CAP=LO$CAP. TAB V/C =0.72 LOS=(: 'PHASE 1 N-LR 20. 28 2 $-LTR 5 3 E-LTR 15 · 373 4 W-LTR 16 414 ACv£UATED, NON-CBD 72-SEC CYCLE GRN Y+R LOST 4 1.0 4 1.0 4 1.0 4 ,1.0 12345678 .t.~4r.*.* I 'V 4i --- I.,1. 1..$' 1.1 1.1 1.3. --+ 2Sl . · _ L. L .9/lz 'd §lSf'ON . ~V65' II 6661 LOS Software Licensed to GARY AKERSTROM by TJKM Condition: 05/28/99 INTERSECTION 2 State/Hastings Count Date Time 85 HC~ Operations 108 573 126 141 --- 1.'0 1.1 2.1 1.0 1.1 --- 187 79 ---> 1.1 (NO. OF LANES). 1.1<--- 131 1.1 1.0 2.1 1.1 1.0 --- 251 · 1 I i v I I i 23 437 158 W+E $ Ukiah Peak Hour PEAK PM ACTUATED,NON-CED 60-SEC CYCLE PHASE GRN Y+R LOST 1NS-L 5 4 1.0 2 NS-TR 15 4 1.0 3 EW-L 11 4 1.0 4 EW-TR 13 4 1.0 LaNE PHASE ,.... LANE LJAPRCH LANE WIDTH ORDER.' '' GROUP OIDELAY GROUP (FT.) VOL VOL FLOW V/S 12345678' G/C CAPAC. V/C. 'DELAY S[& LOS NB L 12.0 23 23 1599 0.014 1 .' 0.133' 213 0.10B 17'4 C1'12.8 T 12.0 437 2 I B R'. 12.0 158 2 , I .. TR 12.0 595 625 3232'0.193 2 .0.30'6I' 970 0..644~ 12j7 BI. NB 0 0 0 SB 0 0 0 EB 0 0 0 WB 0 0 0 ADJ ADJ SAT SAT FLOW LT TH RT LEFT THRU RGHT N 0.0 0 2 2 2 '3 1.00 1.00 1.00 1700 N 0.0 0 . 2 2 2 '3 1.00 1.00 1.00 1700 N 0.0 0 2 2 2 3 1.00 1.00 1.00 1700 N 0.0 0 2 2 2 3 1.00 1.00 1.00 1700 ::::::::::::::::::::::::::::::::::::::::::::: SB L 12.0 126 126 1599 0'.079 1 T 12.0 573 2 R 12.0 108 " 2 TR 12.0 681. 715 3286 0.218 2 EB L 12.0 141 141 1599 0.088 3 T 12.0 79 4 R 12.0 48 4 TR 12.0 127 127 1'588 0.080 4 WB L 11.0 251 251 1551'0.162 3 T 12.0 131 4 R 12.O 187 4 TR 12.0 318 318 1535 0.207 4 *=CRITICAL LANE GROUP DELAY= 15.2 SEC/VEII V/C =0.71 INT=IIAS-ST.ITX, VOL= ,CAP=LOSCAP.TAB 0.'133' .213' 0,591',21.7 C! 15..0 0.300 986 0.725' 13.7 0.233 373 0.378 '15.0 Bi'13.3 0,267 423 0.300 11.4 BI' 0.233 362 0.694~ 19.9 C] 19.1 c 0.267 409. 0.777* 18.5 LOS=C 9/§ 'd § i8Z~'ON 12345678. · , RTOR CNFL PED W/ MIN PRK ~ BUS %HVY ARR PEAK ~OUR APP VPH PEDS PfU~SE GRN lNG GRA STP 'VE~! TYP FACTOR _Chapter, VIII:. ~ffeth. odology, 198.5 HCM O_p_ era.__Hpn~_ Table VIII-I: Level of Service Criteria for Signalized Intersections Level of Service D Type of Flow S~abl¢ Flaw $~abl¢ Flow Approach~g. Unstable Plow Umtablz Flow Fo~cexl Flow Delay Ve~ slighl delay. Pt°gmsaioo is ~av~hl~ wi~ ~t ve~cl~ ~v~g d~g ~c ~ ph~ ~ ~t s~p~g at ~. l~g~. Morn v~cl~ s~p ~S ~ aUS~l ~g~ leve~ of av~gc dchy. Hi~h~ de~ya t~ul~g ~m lan~. ~iv~u~'cycle/~ut~ si~fi~nt al~uch ~I ~ll mot~ ~dc~bl~. ~ng~ dahys may t~ult ~om ~mc ~mb~ of ~aV~able ~sion. bng ~ycl~ prolcon of v~c~ ~ d~. ~di~d~l ~cl~ faU~ nofic~bi~ G~y ~~ m ~ ~ ~it of ac~ptablo ~lay, ~di~dv~ of ~ ~t~, ~ng cycle ~ag~, and ~gh volume-~p~ty ~vidual cycle f~l~ ~c ~uc~t Generally co~id~te.d tn bc umtcceptable to most drivers. Often occurs with ove~aturation. May occur at idgh volame-to-~apacity ratios, lq,=¢ ate many individual cyclo failures. Poor pto~te~ian and Io~ cych~ l~gth~ may aLso b~ majm- conuibudag f'acax~. Maneuverability Taming m~vednents axe easily maria, and nearly all driv~r~ fir~d /x~dom of operation. V~hi¢le platoons ate fonne~L Many drivcr~ be:gin m f~ s~w~t tes~c~ ~O~ ~oups of vddcl~. Back-ups may develop turning vchiclca, l~{o~t d~ivcl~ f~i sotnewhat t~suicted. Maneuverability b ~vct¢ly Umtted duxh~g ~lsort periad~ due Tha¢ ar~ typically long queues of vehiclca waith~g upstream of the inun~ection. Jammed conditiorat Back ups from othcx location~ tcsuict or prevent movement. Volumas may vary widely, d~nding back-up condidonz. Stopped Delay~ Vehicle (~c) < 5.0 15.1-25.0 25.1-40.0 40.1-60_0 > 60.0 Highway Capacity Manual, Special Report 3fo, 209, Translxnxation Research Board, 1985, Highway Capacity Manual Special Report No. 87, Highway Rcrw-arch Board, 1965. TIKM. User's Manual- LOS Intersection Analysi~ Program Page 56 ..~~ 9/9 'd §lSd'ON'- May 31, 1~9~} Mr. Rick Kennedy Director of Public Works City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Wo TRA'N$~ Airport Park Boulevardfl'ahnagc Road Intersection Improvements Dear Rick; As requested, we have reviewed the level of service calculations which you have forwarded for the intersection of Airport Park Boulcvard/Fahuage Road. Based on our previous and current analysis which wc have conductcd tbr tile intersectiou, the following comments are submitted for your consideration. . . The source of tile traffic volumes used in the analysis could not be identified. Based on our traffic counts and analysis which we have previously couductcd, thc northbound right turn aud westbound left turn volumes appear to bc slightly higher and the eastbound and westbound through volumes appear to be slightly lower than traffic vohlmes that we have previously prqjected. The first calculation includes a single westbound left turn lane, one through lane and one combined lhrough-right turn lane. Thc calculation indicates that the westbound left turn will experience delay in tile LOS E range which is unacceptable. In addition, the capacity of the single left turn pocket will bc insufficient to serve the left turn volume demand with significant congestion upstrea~n from this intersection. This improvement scenario is not reconm~ended. The second calcnlation includes, ill the westbound direction, a single lett turn pocket, a shared left- through lane, and a shared through-right turn lane. Since the left and through movements are shared, thc signal phasiug has been split (i.e., the eastbound and westbound traffic run on their own phase and not concurrently). Although, the calculation appears to operate acceptably from a theoretical standpoint, there are some deficiencies to note. a. Split phasing for main streets is generally undesirable since it leads to more delay than is desirable for main street traffic. You currently have this condition on South State Street at 'Fahnage Road. b. The average volnme for tile three westbound lanes would be approximately 344 vehicles per lane. However, tile capacity of the exclusive left turn pocket which currently exists is approximately 264 vehicles per bout (44 cycles per hour x 6 vehicles = 264). This would leave 432 left turning vehicles in the shared left-through lane which would require more green time than assumed iu the calculation and slightly more delay than shown. C. Based on tile volume profile described above, all of the through and right turn traffic would bc forced into the third (shared through-right turn) laue. Under this scenario, there would essentially be only capacity for one through lane. Auy ability to accommodate east-west thi-ough traffic growth in the future would be lost. WHITLOCK ~. WEINBERGER TRANSPORTATION I N C 2200 Range Avenue, Suile 102, Santa Rosa, California, 95403, (707) 542-9500, FAX (707) 542-9590 Mr. Rick Kennedy Page 2 May 31, 1999 It is rcc¢,~m~ct~dcd that Iht ituprovcmcnts to thc intersection ol'Airpo~'t Park Boulcvard/Tahnagc Road includcs two westbound loll turn laucs and two westbound through lanes wilhout split phasing of thc trallic signal operation. You currently have capacity for two through lanes in each direction and this capacity should be cnhauccd at some point in the future with ;videning of the two-lane Tahnage Road section, west of Airport Park Boulevard. This four-lane capacity betwceu South State Street and U.S. 101 should be maintaincd to serve freeway access and traffic demand geuerated by future traffic growth. Conversion of the westbound Tahnage Road laues at Airport Park Boulevard to the shared lane coudition shown in the second calculation will essentially result in the existing westbound through capacity being cut in half. Based on these prqjected conditions which stem from our cxperieuce in the design and analysis of hundreds of other intersections around the North Bay, the shared lane condition is not recommended. Please let ~ne know if you have any other questions. f. Sinccrcly, \ , \ Stcvc W6inbcrg[cr~k~/P.E. '---' Principal sj w/UKI999. L 1 AGENDA SUMMARY ITEM NO. Rh DATE: JULY 7, 1999 REPORT SUBJECT: CONDUCT PUBLIC HEARING TO CONSIDER A PROPOSED REDUCTION TO CERTAIN LANDFILL TIPPING FEES AND ADOPT RESOLUTION REVISING PORTIONS OF RESOLUTION NO. 99-06 PERTAINING TO TIPPING FEES CHARGED FOR COMPACTED AND LOOSE REFUSE DELIVERED TO THE UKIAH LANDFILL Submitted for the City Council's consideration is a proposal to revise landfill tipping fees charged for compacted and loose refuse delivered to the Ukiah Landfill. The proposed changes to the current tipping fees reflect a reduction in the Mendocino Solid Waste Management Authority (MSWMA) surcharge which became effective on July 1, 1999. The MSWMA surcharge is either included in or added to the tipping fees charged at Ukiah's Landfill for all compacted or loose refuse generated within the County of Mendocino and landfilled. The MSWMA surcharge is not applied to refuse materials that are diverted from landfilling or recycled. The MSWMA surcharge of $5.50 per ton of refuse has been reduced to $5.00. The equivalent MSWMA surcharge of $0.69 per cubic yard of refuse has been reduced to $0.63. A $0.50 reduction in the per ton surcharge is equivalent to a reduction of $0.06 in the per cubic yard surcharge for loose waste. This reduction in the MSWMA surcharge is the second reduction in the surcharge since its initial adoption at $6.00 per ton. The first reduction was effective on July 1, 1998, when the $6.00 surcharge was reduced to $5.50. Subsequent to the first reduction, all tipping fees charged for refuse landfilled at the Ukiah's Landfill were reduced accordingly except for the commercial compacted rate of $63.00 per ton charged to the City of Ukiah's franchised collector and the loose rate of $12.65 per cubic yard charged to all customers within the "old service area". The "old service area" comprises the City of Ukiah and the County unincorporated environs of Ukiah Valley, Redwood Valley, Potter Valley, Boonville, Anderson Valley, and Hopland. CONTINUED ON PAGE 2 RECOMMENDED ACTION: After conducting the public hearing and receiving public testimony, adopt the Resolution Revising Portions of Resolution No. 99-06 Pertaining to Tipping Fees Charged for Compacted and Loose Refuse Delivered to the Ukiah Landfill. ALTERNATIVE COUNCIL POLICY OPTIONS: Refer matter back to staff with direction. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Resolution submitted for adoption. 2. City Manager's Report. 3. Public Notice. RHK:KK Candace Horsley, Cit~Manager R:I~W ATIPPING.99 Conduct Public Hearing to Consider a Proposed Reduction to Certain Landfill Tipping Fees and Adopt Resolution Revising Portions of Resolution No. 99-06 Pertaining to Tipping Fees Charged for Compacted and Loose Refuse Delivered to the Ukiah Landfill July 7, 1999 Page 2 Reductions to the previously noted $63.00 per ton change and the $12.65 per cubic yard charge were not made following the reduction of the MSWMA surcharge in 1998 because of additional expenses being incurred at the Landfill and the pending third year garbage collection rate review for 1998. The Council agreed that the surcharge differential in the City of Ukiah's rate of $63.00 per ton could help offset a potential increase in the garbage collection rates that could arise from the rate audit and review. It was estimated that the surcharge differential of $0.50 per ton would generate approximately $5,040 in annual revenue. It was estimated that the surcharge differential of $0.06 per cubic yard would generate approximately $3,560 in annual revenue. As communicated to the City Council during the Budget Hearings for the 1999/2000 fiscal year, the fund balances of the Landfill liability accounts are increasing and the differentials between monies on balance and future monetary liability are diminishing. This is because of the additional waste stream being directed to the City's Landfill from the "new service area", and reduction in required Landfill improvements. Revenue receipts are above anticipated values and the excess revenue has been deposited into the Landfill liability accounts at an accelerated rate. The compacted rate currently charged to Empire Waste, American Waste, and Solid Waste Systems, Inc., who currently serve the "waste customers" within the County unincorporated environs of the "old service area" is $71.50 and it is proposed that this tipping fee be reduced to $71.00 per ton of compacted waste. It is proposed that the tipping fee of $63.00 per ton of compacted waste charged to the City's franchised collector be reduced to $62.00 per ton. The reduction of $1.00 is being proposed to reflect the two reductions in the MSWMA surcharge that were not previously made to this rate. It is proposed that the loose rate of $12.65 per cubic yard which is charged to all self-haulers and the commercial haulers who serve the "old service area" be reduced by $0.15 to $12.50 per cubic yard. As with the rate charged to the City of Ukiah's garbage collector, the proposed reduction to the volume based rate is twice the current reduction in the MSWMA surcharge because this rate was not reduced subsequent to the previous MSWMA surcharge reduction that was effective on July 1, 1998. The total $0.12 reduction in the MSWMA for the last two years has been rounded to a proposed $0.15 reduction to simplify making change at the Landfill Gate for cash transactions. The approximate annual reduction of $10,080 in the tipping revenues collected from the City of Ukiah's garbage collector will help offset the pending increases to the garbage collection rates which will be considered after this item. The tipping fee charged to the "new service area" consisting of the cities of Fort Bragg and Willits, and the unincorporated County environs of Caspar, Albion, Laytonville, and Covelo is $64.50 per ton for both compacted and loose refuse plus the adopted MSWMA surcharge. Therefore, a reduction in the MSWMA surcharge is immediately reflected in the total tipping fee charged to the commercial garbage collectors who serve the waste customers within the "new service area". It is proposed that the adjusted tipping fees be effective on August 1,1999, in order to facilitate billing cycles. RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH REVISING PORTIONS OF RESOLUTION NO. 99-06 PERTAINING TO TIPPING FEES CHARGED FOR COMPACTED AND LOOSE REFUSE DELIVERED TO THE UKIAH LANDFILL WHEREAS, the City Council of the City of Ukiah from time to time establishes new fees and charges pursuant to Article 1, Chapter 6, Division 4, of the Ukiah Municipal Code and that such fees and charges are to be adopted by resolution by the Ukiah City Council; and WHEREAS, a surcharge adopted by the Mendocino Solid Waste Management Authority (MSWMA), a joint powers authority established between the cities of Fort Bragg, Ukiah, Willits, and the County of Mendocino, is added to or included in all tipping fees charged for refuse which is generated within the County of Mendocino and which is landfilled at the Ukiah Landfill; and WHEREAS, the Board of Directors of MSWMA has directed that its surcharge on solid waste disposal be reduced from $5.50 to $5.00 per ton effective July 1, 1999; and WHEREAS, an equivalent volume based MSWMA surcharge of $0.75 is included in the tipping fee of $12.65 charged for each cubic yard of refuse delivered in a loose state and landfilled at the Ukiah Landfill, and that this equivalent volume based MSWMA surcharge was derived from the initial MSWMA surcharge of $6.00 per ton and a weight to volume ratio of 250 pounds per cubic yard; and WHEREAS, the tipping fee of $12.65 charged for each cubic yard of refuse delivered in a loose state and landfilled at the Ukiah Landfill was not modified subsequent to the MSWMA surcharge reduction of $0.50 that was effective on July 1, 1998, and that the total dollar amount of reductions made to the MSWMA surcharge since July 1, 1998, Resolution No. Page l of 3 ,~7.-7.~,~~~,,¢.v,.~ ~ is $1.00 per ton or $0.12 per cubic yard; and WHEREAS, the tipping fee of $63.00 charged for each ton of compacted waste collected within the City of Ukiah and delivered to the Ukiah Landfill by the City of Ukiah's Franchised Garbage Collector was not modified subsequent to the MSWMA surcharge reduction of $0.50 that was effective on July 1, 1998. NOW, THEREFORE, BE IT RESOLVED that Items 2, 3,5, and 6 of Paragraph B, "Fees and Charges" of Resolution No. 99-06 are hereby revised to read: Bo 2) Compacted waste delivered by the City of Ukiah's franchised garbage collector. Fee includes the MSWMA surcharge ....................... $62.00 per ton 3) Compacted waste delivered by franchised or permitted garbage collectors serving those portions of the County of Mendocino within the "old service area". Fee includes the MSWMA surcharge ..... $71.00 per ton 5) Solid Waste delivered in compacted form in a vehicular or container having a compaction device or has been compacted and transferred to another vehicle. Fee includes the MSWMA surcharge .... $71.00 per ton 6) Solid Waste delivered in a loose, uncompacted state by self-haulers, City of Ukiah's franchised garbage collector, County of Mendocino franchise or permitted garbage collectors serving the "old service area", and the City of Ukiah City departments. Fee includes the MSWMA surcharge ....................... $12.50 per ton All other fees, charges, hours of operation, policy and procedures established by Resolution No. 99-06, and not revised by this Resolution shall remain in full force and effect. BE IT FURTHER RESOLVED that the tipping fees revised by this Resolution shall become effective on August 1, 1999. Resolution No. Page 2 of 3 PASSED AND ADOPTED on this day, ,1999, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Jim Mastin, Mayor Marie Ulvila, City Clerk Resolution No. Page 3 ot; 3 CITY MANAGER'S REPORT AND RECOMMENDATION FOR THE ADJUSTMENT OF TIPPING FEES CHARGED FOR THE DISPOSAL OF COMPACTED AND LOOSE REFUSE AT THE CITY OF UKIAH LANDFILL This Report has been prepared pursuant to the requirements of Article 1, Chapter 6, Division 4, of the Ukiah Municipal Code. The City Manager recommends that adjustments to the Landfill Tipping Fees charged for the disposal of compacted and loose refuse at the City of Ukiah be made to reflect a forthcoming reduction in the Mendocino Solid Waste Management Authority (MSWMA) surcharge. Tipping fees charged to the Landfill customers include the MSWMA surcharge. The Board of Directors of MSWMA has directed that the current surcharge of $5.50 applied to each ton of waste generated within the County and landfilled either within the County or out-of-County be reduced to $5.00 per ton effective July 1. 1999. The MSWMA surcharge is also applied to loose waste based on the weight to volume conversion rate of 250 pounds per cubic yard of loose waste. The current MSWMA surcharge per cubic yard of loose waste is $0.69. A $0.50 reduction in the per ton surcharge is equivalent to a reduction of $0.06 in the per cubic yard surcharge for loose waste. The compacted rate currently charged to Empire Waste, American Waste, and Solid Waste Systems, Inc., who currently serve the waste customers within the County unincorporated environs of Ukiah Valley, Redwood Valley, Potter Valley, Boonville, Anderson Valley, and Hopland ("old" service area) is $71.50 per ton; it is proposed that this tipping fee be reduced to $71.00 per ton of compacted refuse. The compacted rate currently charged to the City of Ukiah's franchised garbage collector is $63.00 per ton and it is proposed that this rate be adjusted to $62.00 per ton. The proposed commercial fee to be charged to the City's garbage collector is $1.00 less than the current rate because this rate was not reduced subsequent to the previous MSWMA surcharge reduction of $0.50 that was effective on July 1, 1998. The loose rate charged to all self-haulers and the commercial haulers who serve the "old" service area including the City of Ukiah is $12.65 per cubic yard. It is proposed that this loose rate be reduced by $0.15 to $12.50. As with the rate charged to the City of Ukiah's garbage collector, the proposed reduction to the volume based rate is twice the current reduction in the MSWMA surcharge because this rate was not reduced subsequent to the previous MSWMA surcharge reduction that was effective on July 1, 1998. The total $0.12 reduction in the MSWMA for the last two years has been rounded to a proposed $0.15 reduction to simplify making change at the Landfill Gate for cash transactions. The tipping fee charged to the "new" service area consisting of the cities of Fort Bragg and Willits, and the unincorporated County environs of Caspar, Albion, Laytonville, and Covelo is $64.50 per ton for both compacted and loose refuse plus the adopted MSWMA surcharge. Therefore, a reduction in the MSWMA surcharge is immediately reflected in the total tipping fee charged to the commercial garbage collectors who serve the waste customers within the "new" service area. It is proposed that the adjusted tipping fees be effective on August 1, 1999, in order to facilitate billing cycles. RHK:kk R:I~ANDFILL TIPPINGFEE Mendocino Solid Waste Management Authority A Joint Powers Public Agency Michael E. Sweeney General Manager P.O. Box 123 Ukiah, CA 95482 Telephone (707) 468-9710 Fax (707) 468-3877 June 15, 1999 To: Rick Seanor, City of Ukiah Paul Cayler, County of Mendocino Sherry Robison, Empire Waste Management From' Mike Sweeney RE: Reduction in MSWMA surcharge CITY OF UKIAH DEPT. OF PUBLIC WORKS The Board of Directors of the Mendocino Solid Waste Management Authority has directed that the surcharge on solid waste disposal be reduced to $5.00 per ton effective July 1, 1999. CITY OF UKIAH NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Ukiah City Council will conduct a Public Hearing at their regular meeting of Wednesday, July 7, 1999 at 7:00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers located at 300 Seminary Ave., Ukiah, CA, to consider a proposal from the City Manager for the adjustment oflhe Landt'dl Tipping Fees charged for compacted and loose refuse delivered to the Ukiah Landfill. The compacted fee currerttly charged to the commercial garbage collectors sewing the County environs of Ukiah Valley, Redwood Valley, Potter Valley, Boonville, Anderson Valley and Hopland is $71.50 per ton. The compacted fee currently charged to the commercial garbage coilecto~ serving the City of Ukiah is $63.00 per ton, and the loose refuse fee charged to all customers is $12.65 per cubic yard. These Tipping Fees include the Mandocino Solid Waste Management Authority (MSWMA) surcharge charged on all solid waste which is landfilled. The Board of Directors of MSWMA has directed that the surcharge of $5.50 per ton of refuse landfilled be reduced to $5.00 per ton effective, July 1, 1999. To reflect the reduction in the MSWMA surcharge, it is proposed that the above mentioned fees of $71.50, $63.00, and $12.65 be adjusted to $71.00, $62.00, and $12.50, respectively. The proposed commercial fee to be charged to the City of Ukiah's garbage collector is $1.00 less than the current rate because this rate was not reduced subsequent to the previous MSWMA surcharge reduction of $0.50 that was effective on July 1, 1998. To facilitate billing cycles, it is proposed that the adjusted Tipping Fees be effective on August 1, 1999. The City Manager's Report and Recommendation is available for review by all interested persons in the Office of the City Clerk, Civic Center, 300 Seminary Ave., Ukiah, CA, during normal office hours. The City Council encourages customer input and will consider comme~s received prior to or during the Public Hearing in making their decision in these matters. Anyone wishing the City Council to consider a document exceeding 250 words must submit the original document and seven (7) legible copies to lhe City Clerk not less than six (6) calendar days prior to the scheduled meeting date. If you challenge the above matter in court, you may be limiled to raising only those issues you or someone else raised at the Public Hearing described in this Notice, o~ in wrilten correspondence delivered lo the Council at the time of the Hearing. Please pass this Notice on to your neighbors, friends, or other interested parties. You are encouraged to discuss the project with, express any view you may have, or request additional information from Staff at the Civic Center, 300 Seminary Ave., Ukiah, CA, or by calling (707) 463-6200. s/Marie Ulvila, City Clerk. Publish: June 27, 1999 notice\tipin g fe.wl:x:l AGENDA SUMMARY ITEM NO. 8c DATE: July 7, 1999 REPORT SUBJECT: ADOPTION OF RESOLUTION ESTABLISHING THE SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES; REVISION TO GARBAGE AND RECYCLING COLLECTION SERVICE AGREEMENT; AND ONE- TIME PAYMENT TO SOLID WASTES SYSTEMS This Summary Report provides a very brief overview of the background information for the Public Hearing on the proposed 2.98% garbage and recycling service rate increase. Please refer to attached City Manager's Report and Recommendation on Adjustment of Rates for Garbage and Recycling Collection Service for detailed information. The individual components of the rate adjustment are as follows: 2.33% .70% 1.36% -1.41% 2.98% CPI Increases for both 1998 and 1999 Total Billing and Franchise Fees Third Year Review Tipping Fee and 1997 Reductions Total Proposed Rate Increase Continued on Page 2. RECOMMENDED ACTION: 1. Hold Public Hearing and adopt the Resolution Adopting the Revised Schedule of Fees and Rates for Garbage and Recycling Service Rate Increase. 2. Authorize payment in the amount of $71,373.52 to Solid Wastes Systems, Inc., from the Disposal Site Operations Fund (Fund No. 660). 3. Authorize the City Manager and City Attorney to revise the contract with Solid Wastes Systems, Inc., establishing a pilot program for Solid Wastes Systems administration of the billing and collection for commercial accounts. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Amend and approve the revised resolution/contractual agreement. 2. Remand to staff with direction. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Jim Salyers, Solid Wastes Systems Michael Flad, Assistant City Manager Gordon Elton, Director of Finance Rick Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager Jim Mastin, Mayor Phil Ashiku, Vice-Mayor 1. City Manager's Report. 2. Resolution for Adoption. Candace H'orsley, City Ma~x,ger Consideration of a Resolution Adopting Revised Schedule of Fees and Rates for Garbage and Recycling Collection Service; Revision to Garbage and Recycling Collection Service Agreement, and One-time Payment to Solid Wastes Systems July 7, 1999 Page 2 In addition, staff recommends the one-time payment to Solid Wastes Systems, Inc., from the Disposal Site Operations Fund in the amount of $71,373.52. The proposed rate adjustment and payment has been determined to be an essential and equitable way of asking all customers to share in meeting the City's contractual obligation with our solid waste collection service provider, and in managing the issues of escalated solid waste and recycling costs. COMPARISON OF OTHER RATE STRUCTURES A garbage rate comparison was conducted for the surrounding areas within Mendocino County. Residential and commercial rates within Ukiah remain the lowest in the County and well below the County-wide average collection rate. (Refer to Attachment No. 4 of the City Manager's Report.) Of note however, is the change in the debris box rates. The proposed debris box increase is recommended in order to cover the contractor's equipment and operating costs. Notice however, that the proposed 20 yard debris box rate still remains below the Mendocino County-wide average. EFFECTIVE DATE AND RATE RECOMMENDATION Staff recommends that a 2.98% increase be made to all residential and commercial garbage and recycling collection rates effective July 18, 1999. Attachment No. 5 of the City Manager's Report identifies the garbage and recycling rate calculations for each service type. Staff also recommends a payment to Solid Wastes Systems, Inc., from the Disposal Site Operations Fund in the amount of $71,373.52. June 28, 1999 CITY MANAGER'S REPORT AND RECOMMENDATION ON ADJUSTMENT OF RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICE Background The City's Franchise Agreement with Solid Wastes Systems, Inc., states that an adjustment will be made to the garbage and recycling collection rates using an automatic annual rate adjustment based on 75% of the change in the U.S. Department of Labor, Bureau of Statistic, Consumer Price Index (CPI), U.S. Cities Average, and March to March. In addition, the Agreement states that "the City Council shall conduct a rate hearing pursuant to U.C.C. Sections 3950-3957 to determine what, if any, adjustment should be made to the garbage and recycling rates in the third or subsequent years, taking into consideration the annual audits of the Contractor's operations and all other factors deemed relevant by the City Council." (See Attachment 1). In November, Staff received Solid Wastes Systems audit for the years ending December 31,1996 and 1997 (See Attachment 2). On December 10, 1998, the City Manager received a formal rate adjustment request from Solid Wastes Systems. The City Manager appointed Michael Flad, Assistant City Manager, Gordon Elton, Director of Finance, and Rick Kennedy, Director of Public Works/City Engineer as the City Staff Team for the purposes of conducting the initial negotiations. Prior to the first meeting with Solid Wastes Systems, the Staff Team thoroughly reviewed the Solid Wastes Systems audit performed by Davis Hammon & Company, and the initial rate adjustment proposal submitted by Solid Wastes Systems. From January 5, 1999 through February 15, 1999, the Staff Team met several times with Jim Salyers from Solid Wastes Systems and their accountant John Warren. These meetings served to detail the components and rationale behind Solid Wastes Systems requested rate increase. A great deal of Staff time, both City of Ukiah and Solid Wastes Systems, was dedicated to auditing internal systems in order to refute or substantiate the need for any rate increase beyond the automatic Consumer Price Index (CPI) amount. On February 16, 1999, the Staff Team received the final revised rate adjustment proposal from Solid Wastes Systems detailing their requested rate increase of 15.28% on the residential rates and 18.45% on the commercial rates (See Attachment 3). After receipt of the final modified and refined adjustment request from Solid Wastes Systems, the City negotiating team was expanded to include Candace Horsley, City Manager, Mayor Jim Mastin, and Vice-Mayor Phil Ashiku. This expanded negotiation team met several times, both internally and with Solid Wastes Systems, in an effort to negotiate the most beneficial and fiscally responsible adjustment possible. The following is an explanation of Staff's recommended residential and commercial rate adjustment. For discussion purposes, the proposed 2.98% rate increase of residential and commercial collection has been separated into four categories. Consumer Price Index Rate Adjustment - 2.33~ The Refuse and Recycling Collection contract between the City of Ukiah and Solid Wastes Systems includes a method for determining and adjusting garbage and recycling collection fees, and charges using an automatic annual rate adjustment based on a 75% change in the U.S. Department of Labor, Bureau of Statistics, and Consumer Price Index (CPI). The CPI increased 1.37% from March 1997 to March 1998 resulting in the present need to increase the collection rates by 1.03% for 1998. Additionally, the CPI increased 1.73% from March 1998 to March 1999 resulting in the present need to increase the collection rates by 1.03% for 1999. The combined CPI rate increase for 1998 and 1999 is 2.33% prior to adjustments for the Billing and Franchise Fees. Third Year Rate Adjustment - 1.36~ After a comprehensive review of the Solid Wastes Systems financial audit, their operations and City Landfill operations by the Finance Department, Public Works Department, City Manager's Office, and the City Council sub-committee, the following rate adjustment formula has been determined to be an essential and equitable manner of meeting the City's contractual obligation with Solid Wastes Systems. There are two basic parts to the proposed rate adjustment. First, is the 1.36% rate increase on residential and commercial rates, and the second is a one-time payment to Solid Wastes Systems from the Disposal Site Operations Fund Balance in the amount of $71,373.52. After considerable research and analysis by Staff and Solid Wastes Systems, it has been determined that a third year rate adjustment is necessary at this time to offset the cumulative impact of several revenue affecting components. Specifically, the conversion from a volume to a weight based system for determining Landfill tipping fees in 1994, the exclusion of Franchise/Billing Fee adjustments in 1995, shifts in customer behavior from larger to smaller trash cans, and the uncompensated collection of unauthorized excess customer solid waste have resulted in revenues short of projections over the last three years. While each of these components have not individually had a significant impact on revenue, when considered together, the result is a projected revenue shortfall for Fiscal Year 1999. It is Staffs opinion that the above recommended 1.36% rate increase, and the one-time payment to Solid Wastes Systems will generate the revenue needed to meet the City's contractual obligations to its service provider, Solid Wastes Systems. Franchise and Billing Fee -.70~.~ The Franchise Agreement states that Solid Wastes Systems shall pay to the City 15% (franchise payment) and 3% (collection billing) of the annual gross revenue from its garbage and collection operation. If an adjustment is made to the garbage and recycling service fees to reflect an increase in tipping fees, CPI adjustment, or any other adjustment, Solid Wastes Systems gross revenues would increase, causing the amount of franchise and billing fees to increase. This increase in the franchise and billing fees going to the City subsequently results in a reduction of the anticipated amount to Solid Wastes Systems. The Franchise Fee is collected by the City and placed in the General Fund. The Billing Fee is placed in the Billing and Collection Fund. In addition to the above recommended rate adjustments, a total combined Franchise and Billing Fee adjustment of .70% is also necessary. This includes adjustments for the proposed CPI, third year review increases, and a reduction in the tipping fee (discussed below). As part of the proposed contract rate adjustments, Staff is also proposing the creation of a pilot commercial billing program. Pending City Council approval, Solid Wastes Systems has agreed to assume responsibility for the billing and collection of the commercial solid waste and recycling accounts. The collection billing rate of 3% currently charged by the City will remain unchanged for the duration of the pilot program. As proposed, the pilot program will continue until the opening of the Transfer Station, at which time both residential and commercial rates will need to be re-examined. If the pilot program is successful Solid Wastes Systems is interested in handling the billing and collection for all residential and commercial accounts. Rate Reductions - 1.41 % From the total rate adjustments detailed above, three rate reducing actions are also proposed. First, is the recommended removal of a 1997 "delayed CPI implementation" of .85%. Due to the late implementation of the 1997 contractually required CPI increase, a retroactive percentage was temporarily added to the garbage rate and should now be eliminated. Second, due to the reduction of Mendocino Solid Waste Management Authority solid waste landfill tipping fees of $.50 in 1998 and $.50 on July 1, 1999, the proposed rate adjustment includes a $1.00 reduction in the City of Ukiah tipping fees charged to Solid Wastes Systems. This $1.00 per ton rate reduction equates to a .56% reduction in the collection rates. And third, while only a very slight reduction, it is important to note that several individual rate "corrections" are also being recommended. Staff has worked diligently to remove individual rate anomalies, primarily caused by the application of across the board percentage based rate increases, that have developed in the system over the years. For example, under the current rate system the rate for a customer putting out three'20 gallon containers was less expensive than the rate for a customer putting out two 30 gallon containers. By calculating the rates on a per gallon bases, these undesirable rate variances have been removed. It should be noted however, that recycling incentives remain in place on the smaller containers (lx10 gallon or lx20 gallon) in a continuing effort to encourage customers to increase recycling. While some individual rates were increased, the total net impact across the board was a very slight reduction of overall rates. COMPARISON OF OTHER RATE STRUCTURES A garbage rate comparison was conducted for the surrounding areas within Mendocino County. Residential and commercial rates remain the lowest in the County and well below the County-wide average collection rate as illustrated in Attachment 4. Of note however, is the change in the debris box rates. The proposed debris box increase is recommended in order to cover equipment and operating costs. Notice however, that the proposed 20 yard debris box rate still remains below the Mendocino County-wide average. EFFECTIVE DATE AND RATE RECOMMENDATION Staff recommends that a 2.98% increase be made to all residential and commercial garbage and recycling collection rates. Attachment 5 identifies the garbage and recycling rate calculations for each service type. This increase includes: 2.33% .70% 1.36% -1.41% 2.98% CPI Increases for 1998 and 1999 Total Billing and Franchise Fees Third Year Review Tipping Fee and 1997 Reductions Total Proposed Rate Increase In addition, Staff recommends the one time payment to Solid Wastes Systems from the Disposal Site Operations Fund in the amount of $71,373.52. The proposed rate adjustment and payment has been determined to be an essential and equitable way of asking all customers to share in meeting the City's contractual obligation with our solid waste collection service provider, and in managing the issues of escalated solid waste and recycling costs. Staff recommends the adjustment to the Garbage and Recycling Collection Rates be effective July 18, 1999. ATTACHMENT NO. I ... CC'0'/TRACT FOR COLLie' ;.~.i-i'.DN. TRANSPORTATION AND ~ DISPOSAL OF GARBAGE, ?.EFOSE, AND RUBBISH, AND RE~_~ CLING OF RECYCLABL£ MATERMLS FRO),I 'WITHIN THE CITY OF -'Fe~.is Agreement is entered into on Y. arch 23 , 1992, in Ukiah, California by and between the City of Ukiah, a z~_~'anic-ipal corporation '~sAth its principal pIace of buainess l'~,:-'ted at 3C0 Seminary Avenue, Ukiah, California 95482 ("City"), and Solid Wastes Sys- tems, Inc., a California corporation with its principal place of business located at 940 Waugh Lane, Ukiah, Cal/fomia 95482 ("Contractor"). .. In consideration of the mutual promises conta/ned herein, the parties hereby agree . as follows: .. 1, FRANCHISE Contractor is hereby granted the sole and exclusive right and franchise to collect, transport and dispose of refuse, garbage and rubbish, and to recycle recyclable mater/als generated by all sources within the corporate I/mits of the City of Uk/ah, in accordance w/th the provisions of the !~r~.da~ Mun/cipal Code and state law for the term specified in Ar- ticle 2 hereof. Enforcement of such exclusive fight, where requested by the Contractor, shall be at Contractor's expense. 2. TERM OF THE CONTRA~ The term of this agreement, shall be for ten (10) years commencing on A'r>riJ_ 1 , !992, and termi~..ating at midnight on Narch 31 , 2002, unless terminated earlier pur- · suant to paragraph 20 herein; provided, however, that at the end of said ten year term, the agreement si_mi ~,e extended for an additional term of five (5) ye.2rs on the same terms and conditions, unless either party gives notice of termination ninety (90) days prior to midnight Narch 31, 2002. At the election of Contractor and with the concurrence in writing of City, · . this Agreement can be extended for such additional term or terms as the parties shall 3. AGREEMENT TO PERFOI~M WORK Contractor agrees to perform the work of collecting, tra_nsporting and disp.;.;i~,~ of all re~se, garbage and rubbish generated by alii sources w:~,~,,: me corporate Ci%..:'-"?,its of the City of Ukiah, said collection being mandatory as to resident/al units, all in the ,-'tanner, at the times and under the rules and conditions set forth in the Specification dated Sept'.:m- ber 14, 1974, a copy of which is attached hereto, designated F_xkibit "A" and incorpor~.tc, d herein by reference as if fully set forth. Contractor further agrees to comply with the condi- tions of Chapter 5 of Division 5 of the Municipal Code. Section 15 of the aforementioned .,,. .. specifications is modified hereby to prov/de that the rates shall be as set forth in Exhibit "B" attached hereto and made a part hereof by this reference or as may be modified in accor- dance with this Agreement hereafter. 4. PAYMENT Contractor just received a rate adjustment expected to be effective until June 1993. Beginning July 1, 1993, Contractor shall be paid based on rates that will increase each year for the next two years by an amount equivalent to 75% of the percentage change from the previous year in the U.S. Department of Labor ("DOL"), Bureau of Statistics, Consumer Price Index ("CPI"), U.S. Cities Average, March to March ("Contract CPI"). In addition, the City shall add to the garbage rate any amounts necessary to fully compensate the Con- tractor for any increase in the gate fee charged to the Contractor for disposing of refuse at. the City owned landfill. Prior to the third year, commencing on July 1, 1995, the City Coun- cil shall conduct a rate hear/ng pursuant to UCC sections 3950-3957 to determine what, if any, adjustment should be made to the garbage collection rates in the third or subsequent years, taking into consideration the annual audits of the Contractor's operations and ail "other factors deemed relevant by the City. Council. Thereafter, unless the City Council · s,:ou:u d .... otherwise any. rate hearing conducted oursuant to U:c.~h c;,,._..~. Code (UCC) sections 3950-3957, the rates shall automatically increase annually every two years by the Contract CPI and any increase in the gate fees charged to the Contractor at the landfill. The City Council shall conduct a rate hearing in every third year pursuant to UCC sections 3950-3957. 5. FRANCHISE PAYMENTS Contractor agrees to pay to City as and for the rights granted hereunder an amount equal to fifteen percent (15%) of the Contractor's annual gross revenue from Contractor's operation under this Contract. Section 13 of Exh/bit "A" is iacorporateci herein as if fully set forth. 6. GARBAGE COLLECTION BILLINC __ City has responsibility for all residential and commercial garbage collection billing. The City shall receive a fee of three percent (3%) of the said amounts billed and collected for this service, ali ia accordance with Section 12 of Exhibit "A". 7. COLLECTION OF STREET CONTAINERS A. Contractor shall make regular collections from all City-owned street refuse con- taiaers ia the downtown area located on public streets or sidewalks without charge to City. The City shall maintain all its refuse containers in the downtown area. B. Contractor shall provide collection and recyc~2ng services and re~yc~2ng con- tainers to the City and all properties owned by the City free of charge. Contractor shall maintain in good condition all recycling containers provided to the City without charge to the City. 8. SCOPE OF RECYCLING SERVICES A. Curbside Recycling. Under a Recycliag Service Manager, Contractor shall per- form curbs/de recycling services in the City of Ukiah as follows: (i) Collection_. From all residential units that receive individual can garbage 'serv/ce Contractor shall collect and remove all Recyclable Materials, which are segregated and placed in or a~,jacent to recyc~ng containers at the curbs/de on public - ~, s,r,.,~ts and from Materials which are segregated and placed in recycling containers at a location mutually SOLID WASTES SYSTEMS, INC. FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS' REPORT FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 ATTACHMENT NO. 2 SOLID WASTES SYSTEMS, INC. TABLE OF CONTENTS DECEMBER 31, 1997 AND 1996 Exhibit Page Independent Auditors' Report Balance Sheet A 4 Statement of Retained Eamings B 5-6 Statement of Cash Flows C 7 Notes To Financial Statements 8-13 Schedule Page Schedule of Income and Expenses, Solid Waste Disposal and Curbside Recycling, For the Year Ended December 31, 1997 1 14- 15 a co. Certified Public Accountants INDEPENDENT AUDITORS' REPORT Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Guy E. Marcy, CPA Board of Directors Solid Wastes Systems, Inc. Ukiah, Califomia We have audited the accompanying balance sheets of the Solid Wastes Systems, Inc. as of December 31, 1997 and 1996, and the related statements of income, retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the company's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Solid Wastes Systems, Inc. as of December 31, 1997 and 1996, and the results of operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The Schedule of Income and Expenses for Solid Waste Disposal and Curbside Recycling on pages 14 and 15 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. September 23, 1998 3 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 1530) 533-3392 FAX (530) 533-2714 SOLID WASTES SYSTEMS, INC. BALANCE SHEET DECEMBER 31, 1997 AND 1996 Exhibit A ASSET~ Current Assets: Cash Accounts receivable - trade Loans receivable - related party Receivable from ReWard Leasing Prepaid expenses Deposits Total Current Assets Plant and Equipment: Vehicles Containers, bins and equipment Fumiture and fixtures Less: Accumulated depreciation Construction in progress Net Plant and Equipment Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accounts payable - related party Accrued salaries payable Payroll taxes payable Income taxes payable Accrued leave benefits payable Profit shadng plan payable Total Current Liabilities Stockholders' Equity: Common Stock (par value $10; 100,000 shares authorized, 2 shares issued and outstanding) Additiohal paid-in capital Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 1997 1996 $23,827 222,227 5,223 147,501 13,689 2,106 414,573 $4,402 171,003 83,255 395,082 10,337 664,079 251,767 236,335 10,196 (458,307) 37,416 77,407 $491,980 248,499 220,683 10,197 (445,684) 33,695 $697,774 $111,346 11,800 12,500 422 8O0 37,886 174,754 $92,932 208,009 9,699 1,179 800 40,636 11,687 364,942 18 9,548 307,660 317,226 . $491,980 18 9,548 323,266 332,832 $697,774 The notes to financial statements are an integral part of this statement. 4 SOLID WASTES SYSTEMS, INC. STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 Exhibit B Page 1 of 2 Operating Revenues: Commercial service Residential service Recycling services Salvage Income - Recycling Boonville revenues Total Operating Revenues Operating Expenses: Salaries Payroll taxes Franchise fees Billing fees Dump fees Managemen_t fees Other fees Recyclables Collision damages Operating supplies Rent Equipment leasing and rental Fuel, gas and oil Repairs and maintenance Insurance expense Workers' compensation insurance Outside services Legal and accounting Office expense Utilities and telephone Taxes and licenses Employee welfare Dues and subscriptions Depreciation Bad debts Advertising Other operating expenses Total Operating Expenses Net Operating Income(Loss) 1997 $1,324,963 364,538 223,382 27,126 11,356 1,951,365 335,450 28,951 280,632 56,647 77O,592 54,000 1,862 3,139 5,424 31,951 70,800 78,327 63,520 57,406 64,714 17,272 9,719 21,078 2,580 14,729 9,340 8,531 1,405 12,623 5,989 0 886 2,007,567 _ (56,202_} 1996 $1,288,522 364.905 218.561 29,805 10.905 1,932,698 287.114 28,190 277,094 56,008 726,514 48,000 1,064 2,690 821 38.538 70,800 78.509 58,666 93,45O 58,372 25,656 417 18,654 2.469 12,786 11,154 17,307 1,217 15.902 5,570 (17) 501 1,937,466 (4,768) The notes to financial statements are an integral part of this statement. 5 SOLID WASTES SYSTEMS, INC. STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 Exhibit B Page 2 of 2 Non-Operating Revenue (Expense): Interest income Interest expense Penalties Other non-operating income (loss) Total Non-Operating Revenue (Expense) Net Income(Loss) Before Taxes Provision For Income Taxes Net Income(Loss) Retained Eamings at January I Retained Eamings at December 31, 1997 28,612 0 (156) 12,940 41,396 (14,806) (800) (15,606) 323,266 $307,660 1996 25,124 (9) (137) 979 25,957 21,189 (800) 20,389 302,877 $323,266 The notes to financial statements are an integral part of this statement. 6 SOLID WASTES SYSTEMS, INC. STATEMENT OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 1997 AND 1996 Exhibit C Cash Flows From Operating Activities: Net income(loss) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Net decrease (increase) in receivables Net decrease (increase) in prepaids Net increase (decrease) in accounts payable Net increase (decrease) in other payables Net Cash Provided (Used) By Operating Activities Cash Flows From Investing Activities: Additional loans to related parties Loan paymer~ts from related parties Acquisition of containers, bins and equipment Acquisition of vehicles Increase in construction in progress Net Cash Provided (Used) By Investing Activities Total Increase in Cash Balance of Cash, January 1, Balance of Cash, December 31, 1997 1996 ($15,606) $20,389 12,623 (51,224) (5,458) 18,415 (208,602) (249,85~ 15,902 11,114 3,876 (16,209) 119,020 154,092 (85,764) 411,377 (15,652) (3,268) (37,416) 269,277 (160,931) 20,008 (9,614) (150,537) 19,425 4,402 _ $23,827 3,555 847 $4,402 The notes to financial statements are an integral part of this statement. 7 SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE I SIGNIFICANT ACCOUNTING POLICIES Solid Wastes Systems, Inc., is a closely held S-corporation and is part of a controlled group, incorporated in California on November 20, 1970. The primary purpose of the Company is to provide solid waste disposal and curbside recycling services for the residents and businesses of the City of Ukiah under exclusive franchise agreements granted by the City (See Note 3). The significant accounting policies are as follows: A. The Company uses the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned, and expenses are recognized when incurred. B. For the purposes of the statement of cash flows, the Company considers all investment instruments purchased with a maturity of three months or less to be cash equivalents. C. The Company has elected to record bad debts using the direct write-off method. Generally accepted accounting principles require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed. D. Plant and equipment items are recorded at cost. Depreciation is Computed using the straight-line method over estimated useful lives of 3 to 7 years for vehicles, bins and equipment and 7 to 10 years for furniture and fixtures. The 1997 and 1996 depreciation expense by major asset classification is as follows: Vehicles Containers, bins, and equipment Fumiture and fixtures 1997 1996 $ 6,377 $ 9,334 6,002 6,276 244 292 $ 12,623 $ 15,902 E. The Company, with the consent of its shareholder, has elected under the Internal Revenue and Califomia Code to be classified as an S-corporation for federal and state income taxes, beginning in 1994. As an S-corporation, the shareholder is personally taxed on the Company's taxable income, and the corporation is generally not taxed at the corporate level. California's conformity to federal provisions recognizing S-corporations as pass-through entities is partial in that a reduced rate of tax (1.5%) is still imposed at the corporate level, as well as the minimum franchise tax ($800). F. Employees of the Company are entitled to paid vacation and sick leave depending on the length of service and other factors. Vacation and sick leave earned, but unpaid as of December 31, 1997 and 1996, was $37,886 and $40,636, respectively. SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES(continued) G. The preparation of the accompanying financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that directly affect the results of reported assets, liabilities, income and expenses. Actual results may differ from these estimates. H. The Company expenses the production costs of advertising at the time advertising takes place. NOTE 2 CONSTRUCTION IN PROGRESS At Dec'ember 31, 1997, the Company had invested $37,416 into the construction of a X recycling facility and a disposal transfer station. NOTE 3 FRANCHISE AGREEMENT The Company has entered into an agreement with the City of Ukiah to provide solid waste disposal and curbside recycling services. The franchise agreement gives the Company the exclusive right to provide these services within the City of Ukiah. City ordinances require mandatory use of the Company's services for all residents and businesses. The solid waste disposal and curbside recycling agreement was created on April 1, 1992, and expires on March 31, 2007, with five year extension. The agreement requires the Company to pay the City of Ukiah a franchise fee equal to 15% of gross annual revenues billed under the agreements. This agreement also provides that the City of Ukiah will act as the billing and collection agent for the Company with regard to services provided under each agreement. The City receives an additional 3% of the gross amount billed as compensation for its billing and collection function. The agreement requires that the Company provide the City of Ukiah with free service during the agreement term. Foregone revenues for services extended to the City of Ukiah are not accrued in the accompanying financial statements, however, expenses associated with these services are expensed as incurred. SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE 4 NOTES RECEIVABLE - REWARD LEASING During the years ended December 31, 1997 and 1996, the Company paid various expenses and extended loans to ReWard Leasing, a related party to the Company (See Note 7). The loans are unsecured and payable on demand. Interest is being charged at 6% per annum. The following is a summary of the transactions of the amounts due the Company from ReWard Leasing: NOTE 5 Balance Due, January 1, Additions: Inte~'est accrued on loan Recycling sales proceeds Salaries and benefits charged to ReWard Pension charged to ReWard Deletions: Payments by ReWard Balance Due, December 31, PROVISION FOR INCOME TAXES 1997 1996 $ 395,082 $ 230,974 23,866 18,591 27,125 15,592 112,806 146,833 3,100 (411,378) (20,008) $ 147,501 $ 395,082 The components of the provision for income taxes for the years ended December 31, 1997 and 1996 is as follows: 1997 1996 Federal $ -0- $ -0- State 800 800 800 800 Deferred -0- -0- Total Provision $ 800 $ 800 In 1994, the Company changed from a C-corporation to an S-corporation, thus there are no deferred taxes at December 31, 1997 and 1996. 10 SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE 6 OPERATING LEASES The Company leases office space and equipment under rental agreements classified as operating leases on the accompanying financial statements. Payments under these agreements are treated as an operating expenses of the period in which they are paid or accrued. The terms of the leases vary from one to five years and may be canceled at any time. As explained in Note 7, Related Parties, the amounts presented below were paid to related parties of the Company: 1997 1996 ReWard Leasing $ 35,400 $ 35,400 Phillip Ward 35,400 35,400 Total facility rent $ 70,800 $ 70,800 NOTE 7 NorthBay, Inc. $ 78,327 Other Total equipment leasing $ 78,327 RELATED PARTIES $ 78,327 182 $ 78,509 The Company was involved in several transactions with other entities which are considered related to the Company. The related parties are as follows: A) ReWard Leasing controlled by the same stockholder B) NorthBay, Inc. controlled by the same stockholder C) Creekwood Investments controlled by the same stockholder D) Phillip W. Ward - previous stockholder SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE 7 RELATED PARTIES (continued) A) i. B) i. ii. 111. ii. The Company leases its operating facility from ReWard Leasing as explained in Note 6 above. At December 31, 1997 and 1996, rents of $11,800 and $53,100, respectively, were unpaid and have been included in accounts payable - related party. As explained in Note 4 above, the Company has accrued a receivable from ReWard Leasing arising from a variety of inter-party transactions. ReWard Leasing operates a public recycling center under the name of Mendocino Recycling Center located at the Taylor Drive facility. The recyclables collected by Mendocino Recycling and the Company's curbside program are weighed and combined together for shipment to the recyclists. The Company's share of recyclable material sales have been included in the receivable due from ReWard Leasing. The Company pays NorthBay Inc., management fees. Total fees paid in 1997 and 1996 were $48,000 and $48,000, respectively. At December 31, 1996, management fees of $56,000, were unpaid, and have been included in accounts payable - related party. As discussed in Note 6, the Company leases several pieces of equipment from NorthBay, Inc. At December 31, 1996, rents of $97,909, were unpaid, and have been included in accounts payable - related party. C) i. Creekwood Investments provides bookkeeping services to the Company at a rate of $500 per month. During 1997 and 1996, the Company paid $6,000 and $6,000, respectively, under this agreement. At December 31, 1996, bookkeeping services of $1,000 were unpaid and have been included in accounts payable - related party. D) i. As described in Note 6, the Company leases additional facilities from Phillip Ward. NOTE 8 STATEMENT OF CASH FLOWS Cash paid for interest and income taxes for 1997 and 1996 were as follows: 1997 1996 Interest $ -0- $ 9 Income taxes 800 800 12 SOLID WASTES SYSTEMS, INC. NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 1997 AND 1996 NOTE 9 401 (kJ PROFIT SHARING PLAN NOTE 10 The Company provides a 401 (k) retirement plan, which generally covers all employees that have completed a "year of service" and have attained the age of 21. A "year of service" for eligibility purposes is a consecutive twelve month period in which at least 1,000 hours of service are completed, beginning on the date of hire. During 1997 and 1996, the Company matched 25% and 25%, respectively, of its employees' . salary deferral contributions. This matching required 2-6 years of service for vesting percentages with an employee being 100% vested after 6 years of service. The matching employer expense for 1997 and 1996 was $3,392 and $3,043, respectively and is included in the accompanying statement of income as part of the employee benefit expense account. In addition, the Company can make discretionary contributions to its profit sharing plan. For the years 1997 and 1996, a discretionary contribution of 0% and 3%, respectively, was made by the Company. The Company makes the contribution based on actual taxable salaries for the year. This liability is disclosed in the accompanying balance sheet as Profit Sharing Plan Payable in the amount of $-0- and $11,687, respectively. CONTINGENCIES AND COMMITMENTS The Company has entered into a contract with EBA Technologies for engineering services of the Company's transfer station. Total costs at December 31, 1997 were $27,848. ~ NOTE 11 RESTATEMENT OF PRIOR PERIOD FINANCIAI J STATEMENTS During 1997, an error was discovered in which the Company thought they were to be reimbursed by the City of Ukiah for yard waste fees, where in fact, these were additional expenses of the Company. This error was corrected by restating the December 31, 1996 financial statements by reporting the yard waste fees in expense. Accounts receivable - trade wa~ decreased by $26,551, and dump fees were increased by $26,551. Net income prior to restatement was $46,940, and net income after restatement is $20,389. SOLID WASTES SYSTEMS, INC. SCHEDULE OF INCOME AND EXPENSES SOLID WASTE DISPOSAL AND CURBSIDE RECYCLING FOR THE YEAR ENDED DECEMBER 31, 1997 Schedule 1 Page 1 of 2 Operating Revenues: Commercial service Residential service Recycling services Recycling sales Boonville revenues Total Operating Revenues Operating Expenses: Salaries Payroll taxes Franchis~ fees Billing fees Dump fees Management fees Other fees Recyclables Collision damages Operating supplies Rent Equipment leasing Fuel. gas and oil Repairs and maintenance Insurance expense Workers' compensation insurance Outside services Legal and accounting Office expense Utilities and telephone Taxes and licenses Employee welfare Dues and subscriptions Depreciation Bad debts Advertising Other operating expenses Total Operating Expenses Net Operating Income(Loss) Solid Waste Curbside _ Disposal _ _ Recycling $1,324,963 364,538 11,356 $223,382 27,126 1,700,857 250,508 261,851 21,778 247,125 49,946 770,592 54,000 1,862 3,139 5,424 31,951 7O 80O 47 098 39 700 23 897 45589 12 659 9 719 21 078 2 580 14,729 5 939 8,531 1,405 9,172 5,989 0 886 1,767,439 (66,582) 73,599 7,173 33,507 6,701 31,229 23,820 33,509 19,125 4,613 3,401 3,451 240,128 10,380 Total -- $1,324,963 364,538 223,382 27,126 11.356 1,951,365 335,450 28,951 280,632 56,647 770,592 54,00O 1,862 3,139 5,424 31,951 70,800 78,327 63,520 57,406 64,714 17,272 9,719 21,078 2,580 14,729 9,340 8,531 1,405 12,623 5,989 0 886 2,007,567 14 SOLID WASTES SYSTEMS, INC. SCHEDULE OF INCOME AND EXPENSES SOLID WASTE DISPOSAL AND CURBSIDE RECYCLING FOR THE YEAR ENDED DECEMBER 31, 1997 Non-Operating Revenue (Expense): Interest income Penalties Other non-operating income(loss) Total Non-Operating Revenue (Expense) Net Income(Loss) Before Taxes Provision For Income Taxes Net Income(Loss) Solid Waste Curbside Disposal Recycling 28,612 (156) 12,940 41,396 (25,186) (800) ($25,986) 10,380 $10,380 Schedule 1 Page 2 of 2 Total 28,612 (156) 12,940 41,396 (14,806) (8oo) ($15,606) 15 ATTACHMENT NO. 3 JOHN WARREN CERTIFIED PUBLIC ACCOUNTANT P.O. BOX 14955 SANTA ROSA, CA 95402 (707) 579-3414 February 15, 1999 James Salyers, President Solid Waste Systems, Inc. Ukiah, California Dear Jim: Per your request, I have reviewed the operating results of Solid Waste Systems, Inc. to determine why those results are underperforming expectations. For purposes of comparison, I am using 1994 as a base year. The reason for using 1994 as a base year is that 1994 was the year reviewed for the last rate review. As you are aware, the City of Ukiah handles all of the billing and collection on residential and commercial accounts within the City limits. The City remits to the Company an amount representing total residential billings less a 1% holdback, plus total commercial collections, less the yard waste collection fee, less the franchise and billing fees, and less total gate fees. The net amount remitted by the City to the Company represents the Company's share of the revenue from which to pay all of the operating costs and extract a reasonable profit. The franchise agreement specifically mentions that "...the Contractor shall be paid based on rates that will increase each year ...by an amount equivalent to 75% of the percentage change ...in the...Consumer Price Index...". Therefore, the payments made by the City to the Company should increase by approximately 75% of the CPI each year except for a rate review year. Also, effective 11-1-94 there was an additional 2.5% for recycling programs that should have increased the City's payments to the Company. Following are various analyses that may be helpful in determining the causes of the underperformance: Page 2 (1) GATE FEE BREAKDOWN PER CITY RES COMM BOXES COMPACT TOTAL REPORT 1994 $153,409 $278,384 $67,628 $30,627 $530,048 $467,292 1995 193,787 371,210 89,541 20,306 674,844 672,439 1996 192,814 391,186 98,494 18,208 700,702 697,956 1997 199,026 387,213 136,173 20,875 743,287 742,180 1998 201,625 391,253 114,085 57,138 764,101 770,412 (2) GATE FEE BREAKDOWN - PROJECTED 1994 (from tags that include August to December at the new rate) Remainder of gate fee adjustment not reflected in 1994 results (See (9) below) PROJECTED GATE FEES RES COMM $153,409 $278,384 7.90% 8.30% $165,528 $301,490 ( 3 ) REVENUE SUMMARY: 1994 1995 1996 1997 1998 RES COMM $515,083 $948,593 590,499 1,116,667 595,017 1,153,241 579,689 1,151,487 620,783 1,149,098 GATE FEES BOXES $67,628 89,541 98,494 136,173 114,085 GATE FEES COMPACT TOTAL $30,627 $1,561,931 20,306 1,817,013 18,208 1,864,960 20,875 1,888,224 57,138 1,941,104 Page 3 (4) RESIDENTIAL NET REVENUE ACTUAL VS. PROJECTED \ ACTUAL \ \ NET RES. GATE RES. RES. REVENUE FEES REVENUE REVENUE 1994 $515,083 $153,409 $361,674 -PROJECTED GATE FEES NET RES. REVENUE $361,674 1995 590,499 193,787 396,712 596,209 165,528 430,681 1996 595,017 192,814 402,203 627,271 165,528 461,743 1997 579,689 199,026 380,663 627,271 165,528 461,743 1998 620,783 201,625 419,158 648,661 165,528 483,133 VARIANCE RES ($33,969) (59,540) (81,080) (63,975) ($238,564) (5) COMMERCIAL NET REVENUE ACTUAL VS. PROJECTED \ 'ACTUAL \ \ NET COMM GATE COMM COMM REVENUE FEES REVENUE REVENUE 1994 $948,593 $278,384 $670,209 1995 1,116,667 371,210 745,457 1,104,447 1996 1,153,241 391,186 762,055 1,161,989 1997 1,151,487 387,213 764,274 1,161,989 1998 1,149,098 391,253 757,845 1,201,613 PROJECTED GATE FEES 301,490 301,490 301,490 301,490 NET GATE REVENUE $670,209 802,957 860,499 860,499 900,123 VARIANCE COMM ($57,500) (98,444) (96,225) (142,278) ($394,447) Page 4 (6) RESIDENTIAL AND COMMERCIAL GATE FEES ACTUAL VS. PROJECTED \ --RESIDENTIAL \ \ GATE GATE GATE FEES FEES VARIANCE FEES ACTUAL PROJECTED ACTUAL 1994 $153,409 $153,409 $0 $278,384 1995 193,787 165,528 28,259 371,210 1996 192,814 165,528 27,286 391,186 1997 199,026 165,528 33,498 387,213 1998 201,625 165,528 36,097 391,253 $125,140 COMMERCIAL .......... \ GATE FEES VARIANCE PROJECTED $278,384 $0 301,490 69,720 301,490 89,696 301,490 85,723 301,490 89,763 $334,902 (7) COMPUTATION OF INCREASED REVENUE FROM DEBRIS BOX SERVICE FEE INCREASE CURRENT SERVICE FEE PROPOSED DEBRIS BOX SERVICE FEE PROPOSED INCREASE PER BOX PROJECTED BOXES - 1999 PROJECTED INCREASED REVENUES $82.70 $145.00 $62.30 442 $27,537 (8) CPI INCREASES SINCE LAST RATE REVIEW 75% OF FULL CPI CPI 1995 2.60% 3.5% 1996 2.61% 3.5% 1997 2.10% 2.8% 7.31% 9.8% Page 5 (9) * A rate increase of 13.8% for gate fee increases was effective 10/1/94. In addition, a 2.8% residential and 3.7% commercial increase to cover August and September 94 increase in gate fees (in order to make the gate fee increase effective 8/1/94) was effective 10/1/94. Following is an analysis of the net residential and commercial rate increases to cover increased gate fees effective 10/1/94: Res. Comm. Increase approved for gate fees Increase approved for recovery of Aug. and Sept. 94 gate fees Total gate fee rate increase effective 10/1/94 13.8% 2.8% 16.6% 13.8% 3.7% 17.5% Franchise and billing fees on total increase -3.0% -3.2% Net gate fee rate increase 13.6% 14.3% August to December 94 already in 1994 results Remainder of increase to reflect in 1995 -5.7% 7.9% -6.0% 8.3% (10) TOTAL COMPANY CONTROLLED OPERATING COSTS 1994 * 1995 1996 1997 TOTAL OPERATING COSTS $1,603,193 $1,878,763 $1,937,466 $2,007,567 LESS: CITY COSTS TOTAL GATE FEES YARD WASTE FEES ** FRANCHISE FEES BILLING FEES COMPANY CONTROLLED COSTS % CHANGE FROM LAST RATE REVIEW (467,292) (672,439) (697,956) (742,180) (1,970) (26,552) (24,867) (230,808) (270,853) (277,094) (280,632) (46,858) (54,510) (56,008) (56,647) 858,235 878,991 879,856 903,241 2.42% 2.52% 5.24% * 1994 WAS THE YEAR REVIEWED FOR THE LAST RATE REVIEW. ** AUDITORS INCLUDED IN REVENUE AND IN OPERATING COSTS. (11) NET PAYMENTS TO THE COMPANY FROM THE CITY BILLINGS NET OF YARD WASTE FEE RES COMM 1994 BASE YEAR $515,083 $1,046,848 1995 1996 1997 1998 590,499 1,226,514 595,017 1,269,943 579,689 1,308,535 620,783 1,320,321 GATE FEES NET PAYMENT TO COMPANY $467,292 672,439 697,956 742,180 770,412 $793,765 809,854 840,816 791,420 825,874 Page 6 (12) 1994 NET PAYMENT TO COMPANY INCREASED BY CITY COUNCIL APPROVED CPI AND RECYCLING PROGRAM RATE INCREASES COUNCIL APPROVED CPI & RECY INCREASES 1994 1995 9 MONTHS 3.30% 1996 5.21% 1997 1998 2.80% 1994 INCREASED BY COUNCIL APPROVED INCREASES $793,765 819,959 862,679 862,679 886,834 (13) ACTUAL NET PAYMENT TO COMPANY VS. 1994 NET PAYMENT INCREASED BY CITY COUNCIL APPROVED CPI AND RECYCLING PROGRAM RATE INCREASES COUNCIL APPROVED CPI INCREASES ACTUAL NET PAYMENTS 1994 INCREASED BY COUNCIL APPROVED INCREASES (See 2) VARIANCE 1995 3.30% $809,854 $819,959 ($10,105) 1996 5.21% 840,816 862,679 (21,863) 1997 0.00% 791,420 862,679 (71,259) 1998 2.80% 825,874 886,834 (60,960) TOTAL VARIANCE 1995-1998 ($164,187) The reasons for the Company underperforming expectations can be gleaned from the above information. My analysis of the above information follows. Based on an analysis of Company controlled operating costs (See (10) above), I conclude that the Company is running efficiently. Total Company controlled operating costs have increased 5.24% since the last rate review. The consumer price index has increased 9.8% and the City Council has approved 7.31% (See 8) for the same period. Therefore, I conclude that Company efficiency must not be the reason for the underperformance. Using 1994 as the base year, the net payments to the Company from the City of Ukiah were $164,187 less than one would have expected (See (13) above) . Two possible reasons that the net payments to the Company were too low are as follows: Page 7 A. Uncompensated increases in total gate fees at the City operated landfill. Since the base year 1994, residential gate fees have exceeded expectations by $125,140. Commercial gate fees have exceeded expectations by $334,902. These variances represent $460,042 in uncompensated gate fees for the Company. For 1998 the uncompensated gate fees were $36,097 residential and $89,763 commercial for a total of $125,860. (See (6) above). The City has not increased collection rates to compensate the Company for those increases. B. Unrealized revenue from approved rate increases . Including the last rate review, 3 rate increases have been approved, 21% effective November 1, 1994, 5.21% on November 15, 1995 and 3.41% on October 15, 1997. However, as demonstrated in (4) and (5) above, net revenue (revenue less gate fees) has not been realized commensurate with those increases. The net revenue shortfalls were $238,564 residential and $394,447 commercial for the 1995-1998 period. If you subtract from those numbers the uncompensated gate fees described in (6) above of $125,140 residential and $334,902 commercial, the net amount represents unrealized revenue from approved rate increases of $113,424 residential and $59,545 commercial or total unrealized revenue of $172,769. Revenue has underperformed expectations while total gate fees have escalated. Therefore, my conclusion is that the increase in total gate fees is not the result of additional revenue generation. A possible conclusion is that a large part of the problem can be traced to the conversion from a volume based gate fee computation to a weight based fee computation. The new rates were charged the Company effective August 1, 1994. The City Council approved an across the board rate increase of 13.8% to compensate the Company for the City staff projected increase in gate fees. Residential and commercial gate fees per landfill generated tags submitted to the Company were $153,409 and $278,384 respectively in 1994 (See (1) above). Those fees included tags for the months August through December at the new rate. Increasing the 1994 fees by the remaining 7 months of the 11-1-94 13.8% rate increase, yields projected gate fees of $165,528 residential and $301,490 commercial for the years 1995-1998 (See (2) above). However, actual residential and commercial gate fees exceeded those amounts by $125,140 and $334,902 respectively during that period (See (6) above). The questions are: Where do we go from here? What would be a fair resolution of the problem? Page 8 Since our last meeting with City Staff, I reviewed the entire process for billing debris boxes. Questions were raised at that meeting regarding a possible defect in that process that might have resulted in gate fees not being properly billed to debris box and compactor customers, or the City erroneously billing the Company for landfill tags not belonging to the Company. As a result of my review, I am confident that there is no breakdown in the process. Sharon reviews all landfill tags when they arrive. These are then matched against the monthly statement the City submits to the Company which lists all tags for the month and amounts. Sharon reconciles the City statement to the Company records. All items billed on the statement but not belonging to the Company are returned to the City which then issues a credit. Any tags not on the previous month's statement are traced to the current month's statement. Any tags received for the month which are not on the statement are listed and traced to the subsequent month's statement when received. Sharon bills all debris box and compactor tags to the proper customer as they are received from the drivers. When the billing list is received from the City at the end of the month, the customer billing is verified. I reviewed the month of December 1998 and found that all items on the Landfill statement from the City were accounted for properly and that customers were properly billed by the Company and by the City. There were no exceptions. I also found that Sharon keeps a "Dump Receipts Yearly" sheet by month and category of all landfill tags received from the drivers. I found this information useful and implemented it in this analysis. A copy of Sharon's sheets are attached. The franchise agreement states that "In addition, the City shall add to the garbage rate any amounts necessary to fully compensate the Contractor for any increase in the gate fee charged to the Contractor for disposing of refuse at the City owned landfill." A possible resolution that I believe would be fair to the Company and in line with the franchise agreement, would be to increase the rate sufficiently to compensate the Company fully for 1999 projected residential and commercial gate fees of $201,625 and $391,253 (See (1) above). Since $165,528 residential and $301,490 commercial is the current compensation to the Company in the rates (See (2) above), an increase of $36,097 residential and $89,763 commercial is required (See (6) above). That still leaves us with the problem of the cumulative undercompensation for gate fees since 1994 of $125,140 residential and $334,902 commercial (See (6) above). I think that a fair solution to this problem would be to increase rates sufficiently to recoup that deficit over the next three years. That would require a rate increase to net the Company $41,713 and $111,634 per year for residential and commercial respectively for the next three years. Page 9 It is also proposed by the Company, that the service fee per debris box of $82.70 be increased to $145.00. Please see Mr. Salyers letter for the reasoning behind this recommendation. The increased revenue is proposed to partially offset the commercial rate increase required as outlined in my recommendations. Following is a recap of my recommendations and an analysis of the rate increased required to implement them: RECAP OF RECOMMENDATIONS RATE INCREASE COMPUTATION: COMPONENT TO COVER 1999 GATE FEE VARIANCE 1999 PROJECTED VARIANCE LESS: DEBRIS BOX SERVICE FEE INCREASE 1998 REVENUE BASE INCREASE REQUIRED TO COVER 1999 VARIANCE CITY FEES ON INCREASED REVENUES * COMPONENT TO COVER 1999 COMPONENT TO RECOVER 1995- 1998 GATE FEE VARIANCE OVER THREE YEARS 1995-1998 VARIANCE RECOVERY PERIOD ANNUAL RECOVERY 1998 REVENUE BASE INCREASE REQUIRED TO RECOVER 1995-1998 CITY FEES ON INCREASED REVENUES * COMPONENT TO RECOVER RESIDENTIAL $36,097 $36,097 $620,783 5.81% 1.28% 7.09% $125,140 3 $41,713 $620,783 6.72% 1.47% 8.19% COMMERCIAL $89,763 (27,537) $62,226 $1,149,098 5.42% 1.19% 6.61% $334,902 3 $111,634 $1,149,098 9.71% 2.13% 11.84% Page 10 TOTAL RATE INCREASE: COMPONENT TO COVER 1999 COMPONENT TO RECOVER 1995-1998 VARIANCE RESIDENTIAL 7.09% 8.19% 15.28% COMMERCIAL 6.61% 11.84% 18.45% * Includes franchise and billing fees of 18%. The Franchise Agreement provides that the new rate would be reviewed in three years and adjusted at that point for any changes in operating results during those years. I hope this has been helpful. I don't mean to present my recommendations as the only possible fair resolution of the above presented problems. I would like to meet with City staff and the Council committee to review their ideas and suggestions. Sincerely, John Warren I~nuary 15. 1999 ~ump Receipts Yearly Commercial Residential Drop Boxes Compactors Totals lanuary 35,448.74 18,377.80 3,161.34 17,456.75 74,444.63 'ebruery 33,291.62 15.407.28 8,620.85 3,356.01 60,675.76 larch 33,297.14 16,561.37 10,726.70 2,866.50 63,451.71 ~pril 31,984.32 16,175.88 7,428.65 2,661.75 58,250.60 31,713.42 15,653.61 8,108.40 3,841.74 59,317.17 iune 31,765.82 18,014.22 8,513.48 4,142.25 62,435.77 )uly 32,863 41 17,505 81 9,968 20 3 454 29 . 63,791.71 · · . , · '~ ~ugust 31.877.82 15,724.80 12,055.45 3,475.83 ~,63,133.90 :.eptember 31,126.26 16,748.55 12,397.(Z~ 3,3q90.57 63,572.38 )ctober 32,582.34 17,209.71 17,507.60 2,415.42 69,715.~7 ~ovember 31,968.79 16,063.11 6,54~.05 4.026.96 58,598.91 )ecember Totals 33,333.05 18,182.43 9,057.40 6,140.01 66,712.89 391,252.73 201,624.57 114,085.12 57,138.08 764,1(2KD.50 January 18, 1994 Dump Receipts Yearly Commercial Residential Drop Boxes Compactors Totals January February March April May July August September October November December 36,652.14 17,559.98 5,452.15 1,708.56 61,372.83 28,476.58 13,798.89 6,097.30 1,528.38 49,901. 15 30,813.25 14,266.35 8,488. 15 1,287.09 54,854.84 32, 192.37 16,590.42 10,562.75 1,617.21 60,962.75 31,993.92 16,401.42 10,879.00 1,574.37 60,848.71 29,540.70 15,282.57 15,249.45 1,508.22 61,580.94 32,841.90 19,155.60 11,979.55 1,677.06 65,654.11 32,711.46 16,657.59 13~ 968.34 1,949.86 65,257.25 31,339.35 16, 82_2.89 16,273.90 1,414.98 65,851.12 33,066.03 17,165.61 12,839.75 1,169.28 64,316.57 33, 149.84 16,044.84 12,017.50 1,880.55 63,092.73 34,435.56 19,310.07 12,365.02 3,559.50 69,670.15 Totals 387,213.10 199,026.23 136,172.86 20,875.06 743, 363.15 JJnuar7 17~ l~g7 fkmp Receipts Yearly Commercial Residential ~op Boxes January 34, 888.14 17, 691.6& 8, 65~. 48 1,845. 90 Febr~ry 3e, 9e~. e6 15, EIT. ~ 8, ~7. ~ 737.7~ ~ ~ 245. ~ 15~ ~49.78 7~ 7~. ~ t~ 877. ~ ~i I ~, 1~. 55 16,517. 34 18, 665. 70 i~ I~. ~ ~Y ~, ~. 14 17, ~. ~ 7~ ~5. ~ It ~5. ~ I~ ~, ~. ~ 1 ~, 677. 74 7, ~. 75 1, ~. 89 luiy 3i, 789.78 i6, 63~. ~ 9, ~7.75 i, 973. i6 ~ust ~, 814.6~ 16, ~. 47 9, ~0. le 1, ~. 18 ~em~r ~, 473. 87 i4, 687.87 7, 318. ~ 960. i~ ~ober ~f 981.13 16, 615. 62 i 1S'372. G7 1,978. G4 kvel~r ~ 7~. 65 14,976.99 4, 9%. 75 l, 59~ 87 ~ember ~, 6~. 19 16, S7O. 31 5, ~. 75 i, 7~. ~ oral s ~l, i~. ~ i9~, 813. 76 98, 494.18 i8, ~. ~ Totals 63, 076. 18 55, 671.3i Sa, t376. ~ 60, 437.5~ 59~ 9~. ~ ~, 6~. 94 5% 7~. 17 6i~.37 ~, 9~. i6 9, ~ 7e January ~, l~J~5 Receipts Yearly Coomercial Residential l)cop Boxes Compactors Totals January 3e, 844.8~ 16, ~. 88 4,651.8~ ~, 653.78 ~, 477. Fe~apy ~8, ~. IG 15, ~5. ~ ~, 894. ~ IG, ~. 45 ~il ~, 553. 74 15, ~. ~y ~, ~. 21 17,289. J~e ~, 9~. ~ 16, ~6. July ~8, ~. 76 15, ~. 81 7, 9~. G5 1, ~9.49 ~, ~. ~gust ~, ~. G3 18, ~7.77 ~r 27, 793. 71 15, ~ 1. ~Vll~r ~s 4~. 68 16, ~77.31 7, 1~. O~et~r 34, 391.59 15, ~. 67 Totals 371~ 21~. ~ 193~ 787. ipts Yearly Report Ib~th Residential Commercial l)rop-Boxes Compactors Totals J~uary 6, ~. ~ IG, 4~. 7~ 3, 6~. ~ 1,714. ~ 31, ~3.37 Fe~ 9, ~. ~ IG, 181.73 3, ~. 75 ~, 145. ~ 31,1~. ~8 ~ 11, ~ ~ ~, ~8. 67 4,995. G~ 1,9G~. ~ ~, ~0. ~ ~il 18, ~. ~ 18,992.62 4, ~. 33 2, 145. ~ ~, ~. ~ 1 hy 18, a~. ~ 17, ~1.18 4, ~. ~ 2, ~. ~ ~, ~4.44 J~e % ~. 84 18, ~. 47 5, 7G8. Ge 1, 4~. 78 ~, 345.69 ~,,t t~, 1~. ~ aT, 7~. la lC, 378. ~ 2, 017.79 ~, ~4. ~8 b~ee~r 17, 278. ~ ~, ~. ~ 9, I~. ] 3, ~. % GO, ~7. ~ ~ o~r 16, ~. ~ 31, I~. ~ 5, ~. ] 2, 9~. 9G ~, ~7. ~ ~vem~r IG, ~. M ~, 7~. ~ G, ~9.95 3, 741. ~ 59, 6~. 91 ~cember 17~ ~. ~ 31, ~. ~ 3, ~. 6e 3, 5~. % ~, 231. ~ Totals I~, ~ ~ a78, ~. ~ 67, 627. ~ ~, e~. 7e 5~, ~7. ~ ATTACHMENT NO. 4 UKIAH COLLECTION RATE COMPARISON CITY' OR AREA City of Ukiah City of Ukiah - Proposed Ukiah (outside City limits) City of Willits Willits (outside City limits) City of Fort Bragg 32~30 GALLON RESIDENTIAL $11.90 per month $12.25 per month $17.43 per month $18.00 per month $23.44 per month $16.90 per month 2 CUBIC YARD BIN l X COMMERCIAL $107.55 per month $110.74 per month $187.17 per month $140.00 per month $207.00 per month $168.90 per month 20 CUBIC YARD DEBRIS BOX RATES CITY OR AREA City of Ukiah City of Ukiah - Proposed Ukiah (outside City limits) City of Willits Willits (outside City limits) City of Fort Bragg 2 CUBIC YARD BIN 1X COMMERCIAL $82.70 plus tipping fee $145.00 plus tipping fee $338.00 plus tipping fee $370.00 plus $45.00 delivery charge - plus tipping fee $393.00 plus $51.00 delivery charge - plus tipping fee. $281.55 plus $70.00 per ton tipping fee TOTAL $335.70* $398.00' $338.00 $415.00' $444.00 $421.55' MF:kk R:I~d_ANDFILL RATE.COP Total amount approximated based on an average cost of $12.65 per Cubic yard. CITY MANAGER'S REPORT ATTACHMENT NO. 5 SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR Rate Code RESIDEN rIAL Service Description Current New Monthly Monthly Rate Rate Basic Rate (Municipal Code section 4443) $ 3.14 $ 3.24 Curb Service GA1 1-10gal $ 3.14 $ 3.24 GA10 1-20gal 6.62 6.82 GA2 1-30gal 11.90 12.25 GA11 2-20gal 16.10 16.58 GA12 3-20gal 24.58 25.55 GA3 2-30gal 24.81 25.55 GA13 4-20gal 33.07 34.06 GA4 3-30gal 37.49 38.61 GA8 4-30gal 55.13 56.77 GA21 1-45gal 17.85 18.66 GA22 2-45gal 37.22 38.61 Pack-out Service GA20 1-10gal $ 4.85 $ 5.00 GA 14 1-20gal 8.32 8.57 GA5 1-30gal 14.55 14.98 GA15 2-20gal 20.18 20.78 GAO 2-30gal 30.21 31.11 GA16 3-20gal 31.97 32.92 GA17 4-20gal 44.09 45.40 GA7 3-30gal 46.80 48.19 GA9 4-30gal 64.50 66.42 GA23 1-45gal 21.78 22.43 Remote A~ ea Service (BGR - small truck service) GA74 1-10gal $ 11.90 $ 10.00 GA70 1--30gal 22.33 19.98 GA71 2-30gal 45.86 36.11 GA72 3-30gal 69.35 53.19 GA73 4-30gal 93.05 71.42 GA76 1-45gal 32.86 27.43 Miscellaneous Service GA30 1-105gal $ 47.52 $ 48.94 TOTAL COMMERCIAL Commercial carl or totter service shall be charged at residential rates shown above. 1-iyd $ 68.25 $ 70.28 All other sizes: Rate per yard per week $ 53.77 $ 55.37 EXAMPLES OF COMMERCIAL RATE: 1 yard bin - picked up 1 time per week = 1 yard @ $71.40 = $71.40 per month 2 yard bin - picked up 4 times per week - 8 yards @ $56.25 = $450.00 per month GARATE99.XLS Page I 1999 Manager Report CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES Rate Code Commercial rate 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 2O 23 24 25 26 32 33 34 35 36 37 38 39 101 102 103 106 107 108 109 110 111 112 113 114 115 117 118 119 120 121 122 123 202 203 204 205 206 207 208 Service Description by use code 1-30gal (GA2) 2-30gal (GA3) 3-30gal (GA4) 4-30gal (GA8) 5-30gal 6-30gal 7-30gal 8.-30gal 10-30g al 4-30gal, 2W 4-30gal yard po (GA9) 11-30gal 1 .-20gal (GA10) 1-10gal (GA1) 2.-20gal (GA11 ) 2-30gal yard po (GA6) 3-30gal yard po (GA7) 5-30gal yard po 2-20gal po (GA15) 2-30gal 2W 3-30gal 2W 2-30gal 3W 1-30gal 3W 3 30gal 3W 1 30gal po (GAS) 4-20gal (GA13) 1-45gal (GA21) 2-45gal (GA22) 1-30gal+2-45gal 3 45gal 1 30gal 3W+l-20gal 3W 1 yd 1.5~yd 2-yd 2-yd+2-3Ogal 3-yd 6-yd 6.5-yd '1-20gal+2-3Ogal 10-yd 12-yd 5-yd 1 .Syd+l-3Ogal 1 -yd+ 1-30gal 3.5-yd 4-yd 2-Tote+4-3Ogal 5.5-yd 2_4-yd 1-105gal toter+2-2Ogal 1 .Syd lW+1.5yd 2W 1.5-yd 2W 2-yd 2W 3-yd 2W 4--yd 2W 6--yd 2W 8-~yd 2W 3.5yd 2W OARATE99.XLS FOR THE 1999/2000 FISCAL YEAR Current New Monthly Monthly Rate Rate $ 11.90 $ 12.25 24.81 25.55 37.49 38.61 55.13 56.77 67.03 69.03 79.94 82.32 92.61 95.37 110.26 113.55 135.06 139.08 110.26 113.55 64.50 66.42 147.74 153.00 6.62 6.82 3.14 3.24 16.10 16.58 30.21 31.11 46.80 48.19 79.05 81.41 20.18 20.78 49.62 56.77 74.97 82.32 74.42 82.32 35.71 38.61 112.46 125.18 14.55 14.98 33.07 34.06 17.76 18.66 35.52 38.61 47.42 56.77 53.28 63.87 55.57 69.03 68.25 70.28 80.66 83.06 107.55 110.74 132.35 136.29 161.32 166.11 322.64 332.22 349.53 359.91 31.43 34.06 537.73 553.70 645.28 664.44 268.87 276.85 92.56 95.31 80.15 82.53 188.21 193.80 215.09 221.48 150.16 154.65 295.75 304.54 1,290.56 1,328.88 63.62 68.60 241.98 249.18 161.32 166.12 215.09 221.48 322.64 332.22 430.19 442.96 645.28 664.44 860.37 885.92 376.41 387.60 Page 2 1999 Manager Report CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES Rate Code 215 217 218 219 221 224 225 226 227 3O2 3O3 3O4 3O5 3O6 307 308 309 310 311 402 403 407 410 411 412 413 502 503 504 505 523 524 602 603 604 605 606 607 608 615 616 901 902 903 904 905 906 907 908 909 950 960 965 970 975 977 980 985 990 FOR THE 1999/2000 FISCAL YEAR ~ ^,RATE99.XLS Current New Monthly Monthly Service Description Rate Rate 4-yd 1W+4yd 2W 645.28 664.44 2-.yd 1W+l.5yd 2W 268.87 276.06 1.5-yd 1W+4yd 1W 295.75 304.54 11.5yds 2W 1,246.78 1,273.52 13.5-yd 2W 1,451.88 1,495.00 2-yd 4W+6yd 2W 1,075.46 1,107.40 2-yd 2W+4yd 3W 860.37 885.92 4.5-yd 2W 483.96 498.34 2-yd 1W+3-yd 2W 430.19 442.96 1.5-yd 3W 241.98 249.10 2yd 3W 322.64 332.22 2-yd 2W+4-yd 3W 860.37 885.92 1.5-yd 2W+2-yd 3W 483.96 498.34 3.5-yd 3W 564.62 581.40 4-yd 3W 645.28 664.44 4-yd 3W 645.28 664.44 3.5-yd 2W+4-yd 3W 1,021.69 1,052.04 2.-yd 2W+2-yd 3W 537.73 553.70 2 2-yd 3W+2-yd 2W 860.33 885.92 1.5-yd 4W 322.64 332.24 2-.yd 4W 430.19 442.96 4--yd 4W 860.37 885.92 2-yd 2W+2-yd 4W 645.28 664.44 1.5-yd 2W+1.5-yd 4W 483.96 498.36 4--2-yd 4W 1,720.64 1,771.84 4.Syds 4W 967.92 996.60 '1.5-.yd 5W 403.30 415.30 2 yd 5W 537.73 553.70 3-yd 5W 806.60 830.55 7-yd 5W 1,882.06 1,937.95 4-yd 5W 1,075.46 1,107.40 2-yd 2W*4-yd 5W 1,290.56 1,328.88 1.5-yd 6W 483.96 498.36 2~-yd 6W 645.28 664.44 1.5-yd 2W+2-yd 6W 806.60 830.56 1.5-yd 4W+1.5-yd 2W 483.96 498.36 4-yd 6W 1,290.56 1,328.88 2-yd 2W+4-yd 6W 1,505.65 1,550.36 6-yd 6W 1,935.84 1,993.32 8-yd 6W 2,581.11 2,657.76 3.5-yd 2W+2-yd 6W 1,021.69 1,052.04 2--~/d 3W+2-yd 6W 967.92 996.66 6. yd 2W+4-yd 6W 1,935.84 1,993.32 2-yd+3.5-yd 2W~ 4-yd 6W 1,774.52 1,827.22 2-yd 3W+4-yd 6W 1,613.20 1,661.10 1.5-yd 2W+4-yd 6W 1,451.88 1,495.00 7-yd 6W 2,258.47 2,325.54 1.5-yd 1W+5.5-yd 6W 1,855.18 1,910.30 2-yd 2W*2-yd 6W 860.37 885.92 4yd 6W4-2yd 'IW 1,398.11 1,439.62 105gal toter (GA30) 47.52 48.94 2-105gal toter 95.03 97.88 1-105gal toter 3W 142.56 146.82 1-105gal~1-30gal 59.42 63.87 2-105gal po 116.79 120.28 1-105gal po 58.40 60.14 21-yd weekly 1,129.24 1,162.77 24-yd weekly 1,290.56 1,328.88 18-yd weekly 967.92 996.66 Page 3 1999 Manager Report CITY MANAGER'S REPORT SCI-tEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR Current New Rate Monthly Monthly Code Service Description Rate Rate 995 14-yd weekly 752.82 775.18 996 24.5-yd weekly 1,317.44 1,356.57 997 29yd weekly 1,559.33 1,605.73 998 20yd weekly 1,075.46 1,107.40 New combinations of containers or new sizes will be established by staff based on comparable sizes or quantities. Extraordinary rates and Special Services DROP BOXES Special 3--day..rental 3 yard box per dump $ 96.20 $ 99.07 includes tipping fee Weekly - 7-day rental All sizes - per dump $ 82.70 $ 145.00 Plus tipping fee Additional $10.00 fee per day for retaining drop box more than 7 days. Compactors, per dump $ 82.70 $ 124.50 Plus tipping fee Special Services - Call-in pickup and disposal Appliances $ 15.50 $ 16.00 Plus tipping fee Tires (up to 4 automobile or $ 3.20 $ 3.30 each motorcycle sized tires on regular garbage collection route) Tires (5 or more automobile or motorcycle sized tires, special trip) $ 15.50 $ 16.00 Plus tipping fee Large truck sized tires $ 15.50 $ 16.00 Plus tipping fee (special trip) Furniture and Other Items $ 15.50 $ 16.00 Plus tipping fee (special t~ ip) Locking bin $ 20.70 $ 21.40 one-time setup charge Special service rates may be established based on the current disposal charge plus equipment and labor cost. Such rates shall be approved by the City Manager with ratification by the City Council. ~.~,&RATE99.XLS Page 4 1999 Manager Report RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING THE SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR; ESTABLISHING A PILOT PROGRAM FOR SOLID WASTES SYSTEMS ADMINISTRATION OF THE BILLING AND COLLECTION OF COMMERCIAL ACCOUNTS; AND AUTHORIZING A ONE-TIME PAYMENT TO SOLID WASTES SYSTEMS. WHEREAS, the City Council, under terms of its franchise agreement with Solid Wastes Systems, Inc., must adjust garbage and recycling collection fees and charges for the 1999/2000 fiscal year using an automatic rate adjustment based on a 75% change in the U.S. Department of Labor, Bureau of Statistics, Consumer Price Index, U.S. Cities Average, March to March (Contract CPI); and WHEREAS, the agreement further stipulates that such adjustment shall be made effective July 1; and WHEREAS, the City Council has determined that Solid Wastes Systems, Inc., is entitled to receive a net annual increase of 75% change in the Contract CPI after billing and franchise fees are deducted; and WHEREAS, the increase in the Contract CPI from March 1998 to March 1999 was 1.73%, creating a base increase in garbage rates of 1.3% to which is added a .29% increase to cover the increased franchise and billing charges Solid Wastes Systems, Inc., will incur with the increase in gross revenue, for a composite increase of 1.59%; and WHEREAS, the refuse and recycling collection contract states that the City Council shall conduct a rate hearing to determine what, if any, adjustments should be made to the garbage and recycling collection rates in the third or subsequent years taking into consideration the annual audits of the contractor's operations, and all other factors deemed relevant by the City Council; and WHEREAS, removal of previous temporary rates were included in the consideration for adjustments in rates; and WHEREAS, the combined effect of the foregoing result in a net average increase of 2.98% consisting of an increase of 2.33% CPI increases in both 1998 and 1999, an increase of .70% total billing and franchise fees, an increase of 1.36% third year review, and a reduction of-1.41% in tipping fees and 1997 reductions at the landfill; and WHEREAS, the City Council has determined it necessary to modify Exhibit "A", "Standards for Refuse Collection", Section 12, "Billing", and authorize the City Manager and City Attorney to establish a pilot program for Solid Wastes Systems, Inc.'s administration of the billing and collection for commercial accounts. WHEREAS, the City Council has determined that Solid Wastes Systems, Inc., is entitled to receive a one-time payment in the amount of $71,373.52 to be paid from the Disposal Site Operations Fund. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the rate structure set forth in Exhibit "A" attached hereto and made a part of this resolution. BE IT FURTHER RESOLVED that the City Council authorizes the City Manager and City Attorney to revise the contract with Solid Wastes Systems Inc., for the purpose of establishing a pilot program for Solid Wastes Systems Inc.'s, administration of the billing and collection for commercial accounts. BE IT FURTHER RESOLVED that the City Council authorizes the one-time payment to Solid Wastes Systems Inc., in the amount of $71,373.52 to be paid from the Disposal Site Operations Fund. BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective for all bills issued on or after July 18, 1999. All prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule. All other contract conditions for service remain unaltered and in full effect and the City Clerk shall cause the publication of this resolution in the Ukiah Daily Journal within 10 days following Council action pursuant to the provisions of Section 3957 of the Ukiah Municipal Code. PASSED AND ADOPTED this by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: day of ,1999, ATTEST: Jim Mastin, Mayor Marie Ulvila City Clerk Rate Code RESIDENTIAL CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR New Monthly Service Description Rate Basic Rate (Municipal Code section 4443) $ 3.24 Curb Service GA1 1-10gal $ 3.24 GA10 1-20gal 6.82 GA2 1-30gal 12.25 GA11 2-20gal 16.58 GA12 3-20gal 25.55 GA3 2-30gal 25.55 GA13 4-20gal 34.06 GA4 3-30gal 38.61 GA8 4-30gal 56.77 GA21 1-45gal 18.66 GA22 2-45gal 38.61 Pack-out Service GA20 1-10gal $ 5.00 GA14 1-20gal 8.57 GA5 1-30gal 14.98 GA15 2-20gal 20.78 GA6 2-30gal 31.11 GA16 3-20gal 32.92 GA17 4-20gal 45.40 GA7 3-30gal 48.19 GA9 4-30gal 66.42 GA23 1-45gal 22.43 Remote Area Service (BGR - small truck service) GA74 1-10gal $ 10.00 GA70 1-30gal 19.98 GA71 2-30gal 36.11 GA72 3-30gal 53.19 GA73 4-30gal 71.42 GA76 1-45gal 27.43 Miscellaneous Service GA30 1-105gal $ 48.94 TOTAL COMMERCIAL Commercial can or totter service shall be charged at residential rates shown above. 1-1yd $ 70.28 Ail other sizes: Rate per yard per week $ 55.37 EXAMPLES OF COMMERCIAL RATE: I yard bin - picked up 1 time per week = 1 yard @ $71.40 = $71.40 per month 2 yard bin - picked up 4 times per week - 8 yards @ $56.25 - $450.00 per month Exhibit "A" Resolution # GARATE99.XLS Exhibit A Page I Rate Code Commercial rate by use code CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR New Monthly Service Description Rate 1 1-30gal (GA2) 2 2-30gal (GA3) 3 3-30gal (GA4) 4 4-30gal (GA8) 5 5-30gal 6 6-30gal 7 7-30gal 8 8-30gal 10 10-30gal 11 4-30gal, 2W 12 4-30gal yard po (GA9) 13 11-30gal 14 1-20gal (GA10) 15 1-10gal (GA1) 16 2-20gal (GA11 ) 17 2-30gal yard po (GA6) 18 3-30gal yard po (GA7) 19 5-30gal yard po 20 2-20gal po (GA15) 23 2-30gal 2W 24 3-30gal 2W 25 2-30gal 3W 26 1-30gal 3W 32 3-30gal 3W 33 1-30gal po (GA5) 34 4-20gal (GA13) 35 1-45gal (GA21) 36 2-45gal (GA22) 37 1-30gal+2-45gal 38 3-45gal 39 1-30gal 3W+l-20gal 3W 101 l-yd 102 1.5-yd 103 2-yd 106 2-yd+2-30gal 107 3-yd 108 6-yd 109 6.5-yd 110 1-20gal+2-30gal 111 10-yd 112 12-yd 113 5-yd 114 1.5yd+l-30gal 115 1-yd+l-30gal 117 3.5-yd 118 4-yd 119 2-Tote+4-30gal 120 5.5-yd 121 24-yd 122 1-105gal toter+2-20gal 123 1.5yd lW+l.5yd 2W 202 1.5-yd2W 203 2-yd 2W 204 3-yd 2W 205 4-yd 2W 206 6-yd 2W 207 8-yd 2W GARATE99.XLS $ 12.25 25.55 38.61 56.77 69.03 82.32 95.37 113.55 139.08 113.55 66.42 153.00 6.82 3.24 16.58 31.11 48.19 81.41 20.78 56.77 82.32 82.32 38.61 125.18 14.98 34.06 18.66 38.61 56.77 63.87 69.03 70.28 83.06 110.74 136.29 166.11 332.22 359.91 34.06 553.70 664.44 276.85 95.31 82.53 193.80 221.48 154.65 304.54 1,328.88 68.60 249.18 166.12 221.48 332.22 442.96 664.44 885.92 Exhibit A Page 2 Exhibit "A" Resolution # CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES Rate Code Service Description 208 3.5yd 2W 215 4-yd 1W+4yd 2W 217 2-yd lW+l.5yd 2W 218 1.5-yd lW+4yd lW 219 11.5yds2W 221 13.5-yd 2W 224 2-yd 4W+6yd 2W 225 2-yd 2W+4yd 3W 226 4.5-yd 2W 227 2-yd lW+3-yd 2W 302 1.5-yd 3W 303 2-yd 3W 304 2-yd 2W+4-yd 3W 305 1.5-yd 2W+2-yd 3W 306 3.5-yd 3W 307 4-yd 3W 308 4-yd 3W 309 3.5-yd 2W+4-yd 3W 310 2-yd 2W+2-yd 3W 311 2 2-yd 3W+2-yd 2W 402 1.5-yd4W 403 2-yd 4W 407 4-yd 4W 410 2-yd 2W+2-yd 4W 411 1.5-yd 2W+l.5-yd 4W 412 4-2-yd 4W 413 4.5yds4W 502 1.5-yd5W 503 2-yd 5W 504 3-yd 5W 505 7-yd 5W 523 4-yd 5W 524 2-yd 2W+4-yd 5W 602 1.5-yd6W 603 2-yd 6W 604 1.5-yd 2W+2-yd 6W 605 1.5-yd 4W+l.5-yd 2W 606 4-yd 6W 607 2-yd 2W+4-yd 6W 608 6-yd 6W 615 8-yd 6W 616 3.5-yd 2W+2-yd 6W 901 2-yd 3W+2-yd 6W 902 6-yd 2W+4-yd 6W 903 2-yd+3.5-yd 2W+4-yd 6W 904 2-yd 3W+4-yd 6W 905 1.5-yd 2W+4-yd 6W 906 7-yd 6W 907 1.5-yd lW+5.5-yd 6W 908 2-yd 2W+2-yd 6W 909 4yd 6W+2yd lW 950 105galtoter (GA30) 960 2-105galtoter 965 1-105gal toter 3W 970 1-105gal+1-30gal 975 2-105gal po 977 1-105galpo 980 21-yd weekly GARATE99.XLS FOR THE 1999/2000 FISCAL YEAR New Monthly .Rate 387.60 664.44 276.86 3O4.54 1,273.52 1,495.00 1,107.40 885.92 498.34 442.96 249.18 332.22 885.92 498.34 581.40 664.44 664.44 1,052.04 553.70 885.92 332.24 442.96 885.92 664.44 498.36 1,771.84 996.68 415.30 553.70 830.55 1,937.95 1,107.40 1,328.88 498.36 664.44 830.56 498.36 1,328.88 1,550.36 1,993.32 2,657.76 1,052.04 996.66 1,993.32 1,827.22 1,661.10 1,495.00 2,325.54 1,910.30 885.92 1,439.62 48.94 97.88 146.82 63.87 120.28 60.14 1,162.77 Exhibit A Page 3 Exhibit "A" Resolution # CITY MANAGER'S REPORT SCHEDULE OF FEES AND RATES FOR GARBAGE AND RECYCLING COLLECTION SERVICES FOR THE 1999/2000 FISCAL YEAR New Rate Monthly Code Service Description Rate 985 24-yd weekly 1,328.88 990 18-ydweekly 996.66 995 14-yd weekly 775.18 996 24.5-ydweekly 1,356.57 997 29ydweekly 1,605.73 998 20ydweekly 1,107.40 Exhibit "A" Resolution # New combinations of containers or new sizes will be established by staff based on comparable sizes or quantities. Extraordinary rates and Special Services DROP BOXES Special 3-day rental 3 yard box per dump $ 99.07 includes tipping fee Weekly - 7-day rental All sizes - per dump $ 145.00 Plus tipping fee Additional $10.00 fee per day for retaining drop box more than 7 days. Compactors, per dump $ 124.50 Plus tipping fee Special Services - Call-in pickup and disposal Appliances Tires (up to 4 automobile or motorcycle sized tires on regular garbage collection route) Tires (5 or more automobile or motorcycle sized tires, special trip) $ 16.00 Plus tipping fee $ 3.30 each $ 16.00 Plus tipping fee Large truck sized fires $ 16.00 Plus tipping fee (special trip) Furniture and Other Items $ 16.00 Plus tipping fee (special trip) Locking bin $ 21.40 one-time setup charge Special service rates may be established based on the current disposal charge plus equipment and labor cost. Such rates shall be approved by the City Manager with ratification by the City Council. GARATE99.XLS Exhibit A Page 4 9a ITEM NO. DATE: July 7, 1999 AGENDA ~UMMARY REPORT SUBJECT: COUNCIL APPROVAL OF RESOLUTION MAKING APPOINTMENTS TO AIRPORT COMMISSION AND PLANNING COMMISSION At the May 19, 1999 regular meeting of the City Council, Council directed the City Clerk to advertise for one vacancy on the Airport Commission and one vacancy on the Planning Commission for terms expiring on June 30, 1999. The deadline for submitting applications for these Commissions was June 25, 1999 at noon. Two applications for the Airport Commission and three applications for the Planning Commission were received by the deadline. Council interviews for Planning Commissioner were scheduled at 5:15 p.m. on July 7, 1999, with the appointment to fill the one vacancy agendized at this time. Additionally, attached for Council's consideration are the two applications received for the one vacancy on the Airport Commission. All applicants have been notified of this meeting and are available in the audience should Council desire to make inquiries. Also attached for Council's review is a copy of the terms of the Airport Commission and the Planning Commission members. Please note that in the nomination process, Vice Mayor Ashiku would have the option to make the first nomination for both the Airport Commission and the Planning Commission appointments. RECOMMENDED ACTION: Adopt Resolution making appointment of one person to the Airport Commission, to a 3-year term expiring June 30, 2002, and one person to the Planning Commission, to a 3-year term expiring June 30, 2002. ALTERNATIVE COUNCIL POLICY OPTIONS: Direct City Clerk to re-advertise for vacancies and extend the deadline for submittal of applications. Citizen Advised: N/A Requested by: Ukiah City Council Prepared by: Marie Ulvila, City Clerk Coordinated with: Candace Horsley, City Manager Attachments: 1. Terms of Airport Commission and Planning Commission members 2. Applications for Airport Commission 3. Applications for Planning Commission (Submitted with Interview Agenda) 4. Resolution making appointments to Airport Commission and Planning Commission. Cab-dace H'c~rsley~-C~y Manager c:asrccomsn TERMS OF CITY OF UKIAH BOARD AND COMMISSION MEMBERS As of July 1, 1998 *Next Councilmember to nominate for appointment to this Commission/Board. **Two Commissioners may reside within the City's Sphere of Influence Planninq - 3 year term - Ashiku* Eric Larson Jennifer Puser Mike Correll Joe Chiles Date of Current Present Term Last Date Appointment Expires To Serve 7/01/98 6/30/01 6/30/01 7/01/98 6~30~01 6~30~01 7/01/98 6/30/01 6~30~04 7/02/97 6/30/00 6~30~03 Airport - 3 year term ** - Ashiku* Ken Fowler ** - Chair (outside) Mark Ashiku (City) Doug Crane (City) Michael Whetzel (City) 7/01/98 6/30/01 6/30/01 7/01/98 6/30/01 6/30/04 7/01/98 6/30/01 6~30~04 7/01/98 6/30/01 6~30~04 commsn:airpc RECORD OF APPLICATIONS FILED FOR ONE (1) AIRPORT COMMISSION DEADLINE OF JUNE 25, 1999, NOON Date Applicant's Name, Address & Commission Date Application Phone Application Taken Out Submitted to City Clerk 6111199 Allen Rogina Airport 6111199 875 Vich¥ Hills Drive 6118/99 Bruce DeVries Airport 6124199 1800 Wildwood Road election/aplogair CITY OF UKIAH ............... ~ APPLICATION FOR AIRPORT COMMISSION API~tI'I~I~~ ~] I~ E I am applying for an appointment to the City of Uk~ah s A~rpod Comm~ss~o~ Cl~ CLERK'S ,DEPARTME~ 3. Business Address ~ ~ 4. Employer ~'"~ ,/T/° /"~¢~ Res. Phone Bus. Phone ¢'?,,,Z Job Title ~.~ev- Employed since 5. How long have you resided in Ukiah? California? years; Mendocino County? 6. Please list community groups or organizations you are affiliated with. Indicate office held. Please answer the following questions on separate sheets of paper and attach. . Why,~re you app~lying tO serve on the Gity of Ukiab's Airport Commission~ ~o~;~:'e C-o What is your unde£standing of the purpose, role and responsibility of the Airport Commission? . 10. How do you believe your own skills, experience, expertise, and pers~pectives will be b~enef!ci~ t,o~the~ work of the Airport CommissLon? /¢¢'~, ~ ,8'¢~ ,! 8¢~'~"~ G*' /~.,~'"'-".¢'/s¢ . What do you believe is the single most important Airport related issue facing our community? and why? ,~,,- 11. 12. 13. 14. In your opinion, what ~,~e ~o~ir~rt ~.~~m~__~ Airport_cclevelopment should the City encourage?~z-/,~'¢'~ In your opini~n,,w~ of Airport programming or Airport development should the City discourage? · ~ o~~ you envision for U kiah?~z ,~~ Are there any other City of Ukiah Committees/Commissions in which you are interested and on which you would be willing to serve? Your name will be kept in an applicants' pool for one year from the date of your application, and we will notify you of vacancies as they occur. For more information or if you have questions, please contact the City Clerk's office at 463-6217. Thank you for your interest in serving the City of Ukiah. commapc.wpd CITY OF UKIAH APPLICATION FOR AIRPORT COMMISSION APPOINTMENT Date I am applying for an appointment to the City of Ukiah's Airport Commission. 1. Name ~ ~ ~,. c _~_ ~2,, I -- '-~; 2. ResidenceAddress/,~c?~' /~/'/~'//,/~r;,,.~_ ~.~ Res. Phone ~.'.',.x-' ,.,, ,, 3. Business Address Bus. Phone 4. Employer ~ ?/,r /../-; ,~ ./,' 5. How long have you resided i~h Ukiah? California? Job Title'S, ,, ~_,.,/~; ,, ;T"- Employed since v, ~ years; Mendocino County? 6. Pl~_~se list community groups or organizations y~ou are affiliated with. Indicate office held. " ". ..- ,, . ,~ ,~-~,/3,<, /~ Z-' ? "> 4- '~ ?', .,,.~ ,~- , i~ /:.'--~'i,- r- / . ,-, ~ Please answer the following questions on separate sheets of paper'and attach, . Why are you applying to serve on the City of Ukiah's Airport Commission? . What is your understanding of the purpose, role and responsibility of the Airport Commission? . How do you believe your own skills, experience, expertise and perspectives will be beneficial to the work of the Airport Commission? 10. What do you believe is the single most important Airport related issue facing our community? and why? 11. In your opinion, what type of Airport programs or Airport development should the City encourage? 12. In your opinion, what type of Airport programming or Airport development should the City discourage? 13. What kind of ideal community do you envision for Ukiah? 14. Are there any other City of Ukiah Committees/Commissions in which you are interested and on which you would be willing to serve? Your name will be kept in an applicants' pool for one year from the date of your application, and we will notify you of vacancies as they occur. For more information or if you have questions, please contact the City Clerk's office at 463-6217. Thank you for your interest in serving the City of Ukiah. commapc.wpd question 1 I have always been interested in aviation and city airports and their operation. Since 1951 I have been an active pilot. I would like to work with the Airport Commission,Council and staff for a safe and efficient airport. It is my belief that this airport is one of Ukiah's main assets. This community has been good to me and my family and in some way I would like to give back to the city. . It is my understanding that the city code says that the Airport Commission makes recommendations and advice on policy to Council. . My background is 48 years of flying experience, 35 years in school administration, both at district level and as school principal. I have worked on numerous committees on a local and state level. Since my retirement last year from education I feel that I have the time, expertise and management skills to give to this Airport Commission. 10. I believe the most important Airport related issue facing our community is future expansion and encroachment by development. 11. Any new programs that fits within the City's long range development plan that would enhance the Airport and aviation related activities. 12_. The City should discourage any business not related to the interest of this Airport and they should also be environmental friendly. 13. To keep a safe small town environment that continues to attract new businesses which will produce good hiring practices. This will make Ukiah's economy even stronger. 14. No -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2000- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH MAKING APPOINTMENTS TO THE AIRPORT COMMISSION AND TO THE PLANNING COMMISSION WHEREAS, the annual expiration of terms for City Commissions occurred on June 30, 1999; and, WHEREAS, the vacancies were duly advertised until the close of applications on June 25, 1999, with submitted applications timely received and submitted to Council for consideration; and, WHEREAS, the City Council previously requested Planning Commission applicants who were interviewed on July 7, 1999, to be reforwarded for consideration at this time, and, NOW, THEREFORE, BE IT RESOLVED that the Ukiah City Council approved the nominations submitted per procedures outlined in Resolution No. 95-48, and do hereby appoint the following persons to terms on the following Commissions: PLANNING COMMISSION to fill a term to June 30, 2002; AIRPORT COMMISSION to fill a term to June 30, 2002; PASSED AND ADOPTED this 7th day of July, 1999, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Jim Mastin, Mayor ATTEST: Marie Ulvila, City Clerk Item No. q b Date: Juiv 7,, 1999 AGENDA .. SUMMARY ..... REPORT SUBJECT: A'uth0rize the MaYor t~' i~xec~ie Exhibit A,' ReviSi0n"2 io C~)ntraci 92'-~A0, ' 20058 between the City of Ukiah and the Western Area Power Administration. REP°RT~' In March c~' 199~ the dity' ~)f Ukial~ ehtered' into'a~ Agreement'Wi'th the Western- Area Power Administration to reduce our Contract Rate of Delivery from 8.773 megawatts to 4.917 megawatts. As a consideration for this reduction the City of Ukiah had first call on any excess energy available from Western. Under the Agreement the City of Ukiah has the right to call back the reduction by giving Western notice. Execution of Exhibit A, Revision 2 will complete this call back. The Sacramento Utility District is interested in purchasing additional energy for the pedod July 1-December 31, 1999. However, this energy must be from a renewable source. The City of Ukiah has agreed to sell a portion of our geothermal energy production to the Sacramento Utility District. We have been able to negotiate a price that will be approximately 20% above production cost, and roughly twice the cost of energy obtained through our Western Power Contract. As result, we will replace the geothermal energy by calling back our lay-off to Western resulting in a savings to the City of Ukiah of approximately $120,000 dudng the July to December time period. Therefore, staff recommends that the City Council authorize the Mayor to execute Exhibit A, Revision 2 to Contract 92-SAO-20058. RECOMMENDED ACTION:' Auth0hZe the Mayor to ~xe(~ute Exhibii~ A,"Re;~i~i(~n '2 io ...... Contract 92-SAO-20058 between the City of Ukiah and the Westem Area Power Administration. ALTERNA:I'~vE' COUNcIL'P6LiC~y'6'PTi0NS: De~Y'APP~:ov~I.' ~'iizeh AdVised: iqiA .............................. Requested by: Darryl L. Barnes, Director of Public Utilities Coordinated with: Candace Horsley, City Manager Attachment: 1) Exhibit A, Revision 2. ......... .... . ........... : ....... ~/~'X ..... _., ,,. , , ,,,~,.~,, , APPROVE~-""~ '"~-,~ ).n .... ~ce H'Or'sley,-G'~-ty ~anager Department of Energy Western Area Power Administrelion Sierra Nevada Customer Service Region 114 Palkshore Drive Folsom, California 95630-4710 Mr. Darryl L. Barnes Public Utilities Director City of Ukiah 300 Seminary Avenue Ukiah, CA 95482-5400 Dear Mr. Barnes: Western Area Power Administration and City of Ukiah (Ukiah) are padies to Contract 92-SAO-20058. Contract 92-SAO-20058 provides for Western to furnisl~ electric service to Ukiah. Ukiah has been participating in Western's temporary allocation program. Effective July 1, 1999, the terms and conditions of the i~'ogram will change and Ukiah will cease their participation. Therefore, enclosed are two originals of Exhibit A, Revision 2 to Contract 92-SAO-20058, whici~ sets forth Ukiah's new contract rate of delivery. If the terms of Exhibit A, Revision 2 are acceptable, please sign and date the originals, have the signatures attested, and return them to Peggy Muir, N6205, at this ofl'ice. Upon signature by Western, we will send you an executed original for your' records. If you have any questions regarding the above, please contact Hirosl~i Kasl~iwagi at (916) 353-4477. Sincerely, Jerry W. Toenyes Regional Manager Enclosure (2) Exhibit A, Revision 2 City of Ukiah Contract No. 92-SAO-20058 EXHIBIT A (Contract Rate of Delivery) 1. l"his Exhibit A, Revision 2, to be effective under and as a part of Contract No. 92- SAO-20058 (Contract) shall become effective July 1, 1999; shall supersede the current Exhibit A executed March 1, 1996; and shall remain in effect until superseded by another Exhibit A or upon termination of the Contract. 2. On July 1, 1999, the Contract Rate of Delivery shall be 8.773 rnegawatts (MW), of which 4.917 MW is Long-Term Firm Power, and 3.856 MW is Westlands Withdrawable Power. WESTERN AREA POWER ADMINISTRATION By: Title: Address: 114 Parkshore Drive Folsom, CA 95630 Date: CITY OF UKIAFI By: Title: Attest: Address: By: Title: Date: AGENDA SUMMARY REPORT ITEM NO. DATE: JULY 7, 1999 SUBJECT: APPROVAL OF USE OF COMMUNITY DEVELOPMENT COMMISSION (FUND # 335) MONIES FOR LOW INTEREST HOUSING LOANS AND CORRESPONDING BUDGET AMENDMENT In September 1997, the City Council approved a $106,000 loan to Rural Communities Housing Development Corporation (RCHDC) for land purchase and infrastructure improvements in its Mulberry Lane self-help housing project. The loan was established with a three percent annual interest rate and was to be paid off within two years. RCHDC has requested that after the repayment, $80,000 from this fund be used for Iow interest, partially deferred loans to the new homeowners in the same housing development. Fund #335, "Community Development Commission", was established to receive the payments for rehabilitation loans originally awarded in the late 1980s through a Community Development Block Grant from the State administered by the Community Development Commission of Mendocino County. Monies within the Fund must be used for Iow and moderate income housing or economic development. Loans, rather than grants, from this fund have been encouraged to provide a long term source of money to leverage with other community efforts. The proposed loans are consistent with the requirements for reuse of the monies within the Fund. (continued on page 2) RECOMMENDED ACTION: 1) Approve Use of $80,000 of Fund #335 for Low and Moderate Income Housing Loans, 2) Authorize City Manager to Execute Necessary Loan Documents, and 3) Approve Amendment to 1999/00 Budget Increasing Revenue Accounts 335.0700.503.XXX and Expenditure Account 335.4710.680.000 by $80,000 each. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine different funding level is appropriate and authorize modified amount. 2. Determine use of the monies for these loans is not appropriate and do not approve the use as requested. Citizen Advised: Requested by: , Prepared by: Coordinated with: Attachments: Yes Rural Communities Housing Development Corp.ora it, j,0n Michael F. Harris, Risk Manager/Budget Officer Candace Horsley, City Manager 1. May 4, 1999 letter from Rural Communities Housing Development Corporation, page 1. 2. Budget amendment worksheet, page 2. 3. 1999 HUD housing income limits for Mendocino County, page 3. APP ~ '"'"" Candace Horsley, Git Manager APPROVAL OF USE OF COMMUNITY DEVELOPMENT COMMISSION (FUND #335) MONIES FOR LOW INTEREST HOUSING LOANS AND CORRESPONDING BUDGET AMENDMENT July 7, 1999 The loans will be made with individual self-help homeowners to assist in qualifying for the major funding source, United States Department of Agriculture, Rural Development (USDA/RD). Each loan maximum will be $10,000, and the families must have income below 80% of the County Median Income as determined by the Federal Housing and Urban Development Department (HUD) [currently $38,500 for a family of four]. The loans are to extend for 11 years, with no interest accrued or payments required during the first five years. Beginning in the sixth year a four percent interest rate will be applied and monthly payments by the owners will be made. In the event the property is sold or the title is otherwise transferred, the loan will be due and payable in full. The loans will be secured by the subject property. Staff believes this loan program will be very beneficial to the targeted income group, is consistent with the requirements of the Community Development Commission fund, and meets the goals and objectives of the City's General Plan Housing Element. Since the specifics of this program were not finalized prior to the adoption of the 1999-00 Budget, a budget amendment is necessary. No General Fund monies are involved with this proposal. The loan expense will be identified in account 335.4710.683.000, while RCHDC's repayment of the 1997 loan will be recorded as revenue in accounts 335.0700.503.XXX. Staff recommends approval of $80,000 in loans for Iow and moderate income homeowners in RCHDC's self-help housing project on Mulberry Lane, authorization for the City Manager to execute the necessary documentation, and approval of the budget amendment. mfh:asrcc99 0707RCHDC Page 2 Housing Development Coroorat on 237 E. Gobbi St. Ukiah, California 95482 (707) 463-1975 Fax (707) 463-2252 May 4, 1999 Michael Harris Deputy Redevelopment Director City of Ukiah 300 Seminary Ave. Ukiah, CA. 95482 Dear Mike: The purpose of this letter is to request that up to $80,000 from the City's CDBG program income funds that are committed to improvements on the Doolan Creek Self-Help program be reprogrammed to be low-interest loans for families in this project. It is anticipated that by July, the loans will close on the first group of eleven families and the money will be returned to the city. If the City approves our request it would mean that up to $80,000 of the amount returned to the City be reallocated to provide low-interest loans to some of the families in the project. Several of the families need small loans from $5,000 to $10,000 in order to qualify for the USDA/RD 502 loans. This is the group of families that need assistance from the City. I am aware that you want shorter terms to these loans than the City provided for previous Self- Help families. In this regard I would suggest the following terms: · 1 ~t 5 years would be deferred and interest-free, and beginning with the sixth year the loan will convert to a fully amortized 4% loan for another five years. · Loan will be due and payable upon sale of property and transfer of title to the property. · Maximum amount of loan will be $10,000. · Families must have incomes that do not exceed 80% of the County Median Income. Thank you for your help in this effort. Sincerely, Executive Director LLI DEPT. OF HOUSING ~ C.D. Moderate income 43100 49250 55400 61550 66450 71400 76300 81250 MADERA Very Iow income 13000 14900 16750 18600 20100 21600 23050 24550 Area median: Lower income 20850 23800 26800 29750 32150 34500 36900 39300 $37,200 Median income 26050 29750 33500 37200 40200 43150 46150 49100 Moderate income 31250 35700 40200 44650 48200 51800 55350 58950 MARIN Very Iow income 25350 28950 32600 36200 39100 42000 44900 47800 Area median: Lower income 38100 43500 48950 54400 58750 63100 67450 71800 $72,400 Median income 50700 57900 65150 72400 78200 84000 89800 95550 Moderate income 60850 69500 78200 86900 93850 100800107750 114700 MARIPOSA Very Iow income 13050 14900 16800 18650 20150 21650 23150 24600 Ama median: Lower income 20900 23850 26850 29850 32250 34600 37000 39400 $37.300 Median income 26100 29850 33550 37300 40300 43250 46250 49250 Moderate income 31350 35800 40300 44750 48350 51900 55500 59050 MENDOCINO Very Iow income 13500 15400 17350 19250 20800 22350 23850 25400 Area median: Lower income 21550 24650 27700 30800 33250 35750 38200 40650 $38,500 Median income 26950 30800 34650 38500 41600 44650 4775O 50800 Moderate income 32350 36950 41600 46200 49900 53600 57300 61000 MERCED Very Iow income 12900 14750 16600 18450 19950 21400 22900 24350 Area median: Lower income 20650 23600 26550 29500 31900 34250 36600 38950 $36,900 Median income 25850 29500 33200 36900 39850 42800 45750 48700 Moderate income 31000 35450 39850 44300 47850 51400 54950 58500 MODOC Very Iow income 12850 14700 16500 18350 19800 21300 22750 24200 Area median: Lower income 20550 23500 26400 29350 31700 34050 36400 38750 $36,700 Median income 25700 29350 33050 36700 39650 42550 45500 48450 Moderate income 30850 35250 39650 44050 47550 51100 54600 58150 MONO Very Iow income 15150 17300 19500 21650 23400 25100 26850 28600 Area median: Lower income 24250 27700 31200 34650 37400 40200 42950 45700 $42,800 Median income 30300 34650 38950 43300 46750 50250 53700 57150 Moderate income 36350 41550 46750 51950 56100 60250 64400 68550 MONTEREY Very Iow income 17300 19750 22250 24700 26700 28650 30650 32600 Area median: Lower income 27650 31600 35550 39500 42700 45850 49000 52150 $49,400 Median income 34600 39500 44450 49400 53350 57300 61250 65200 Moderate income 41500 47450 53350 59300 64050 68800 73550 78300 NAPA Very Iow income 18300 20900 23550 26150 28250 30350 32450 34500 Area median: Lower income 29300 33450 37650 41850 45200 48550 51900 55250 $52,300 Median income 36600 41850 47050 52300 56500 60650 64850 69050 Moderate income 43950 50200 56500 62750 67750 72800 77800 82850 NEVADA Very Iow income 16300 18650 20950 23300 25150 27050 28900 30750 Area median: Lower income 26100 29800 33550 37300 40250 43250 46250 49200 $46,600 Median income 32600 37300 41950 46600 50350 54050 57800 61500 Moderate income 39150 44700 50300 55900 60350 64850 69300 73800 ORANGE Very Iow income 23900 27300 30750 34150 36900 39600 42350 45100 47 TOTAL P.01 ITEM NO. DATE: 9cl JULY 7, 1999 AGENDA SUMMARY REPORT SUBJECT: ADOPT RESOLUTION IN SUPPORT OF "THE FAIR COMPETITION AND TAXPAYERS SAVINGS ACT" INITIATIVE AND LEGISLATION SUMMARY Cities, counties, special districts, and other local agencies who rely on private design firms to assist them in delivering needed infrastructure projects, are being asked to support "The Fair Competition and Taxpayers Savings Act" initiative and legislation initiated by the Taxpayers for Fair Competition. Submitted for the City Council's consideration is a resolution which would, if adopted, indicate the City Council's support for the "The Fair Competition and Taxpayers Savings Act", and it would authorize the Director of Public Works/City Engineer to sign the letter of support and to act as the City's contact person concerning the pending initiative and legislation. CONTINUED ON PAGE 2 Prepared by: Coordinated with: Attachments: RECOMMENDED ACTION: Adopt the resolution in support of "The Fair Competition and Taxpayers Savings Act" Initiative and Legislation. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine that the current ban on design services will not affect the City of Ukiah in the future, and do not adopt the resolution. Citizen Advised: N/A Requested by: Taxpayers for Fair Competition and Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager /,-.--- 1. Resolution of Support. 2. Letter of Request. 3. Initiative. 4. AB1448 5. ACA16. 6. Letter of Support. 7. Resolution No. 98-07. Candace Ho~sley, C er RHK:kk R:I~PW LTAXPAYERS Adopt Resolution in Support of "The Fair Competition and Taxpayers Savings Act" Initiative and Legislation July 7, 1999 Page 2 BACKGROUND On July 16, 1997, the Ukiah City Council adopted Resolution No. 98-07 at the request of the Taxpayers for Fair Competition, and the Director of Public Works/City Engineer opposing the ballot initiative entitled "Government Cost Savings and Taxpayers Protection Amendment" (Proposition 224), initiated by the Professional Engineers in California Government (PECG). The initiative would have severely hampered the State government and most likely any project sponsor utilizing State funds from contracting with qualified private engineers and architects for the design of public projects. Cities and counties were concerned that this initiative would directly affect their projects funded with State Gas Tax monies. The initiative would have required the State Controller to review proposed consultant agreements to determine if the design work could be done at a lesser expense if performed by the State of California employees. The review guidelines dictated by the initiative created an unbalanced playing field which favored the selection of State employees for the performance of the design work. Proposition 224 was defeated by the voters, however, PECG successfully pursued a favorable decision from the California Supreme Court. The Supreme Court determined that the California State Constitution prohibits the State government from contracting out for design services. Uncertainty as to how this may affect local governments in the future is a concern. Will additional lawsuits ban local governments from contracting with private engineering firms? If all design work for projects funded with State money was to be done by the State bureaucracy, a large bottleneck would develop, stalling local projects for an indefinite amount of time. The Taxpayers for Fair Competition (organization) is pursuing both legislation and an initiative to remove the design prohibition placed on the State, and it seeks the City's support. The organization is currently gathering signatures to place the initiative on the March 2000 ballot. The organization is pursuing a legislative remedy via AB1448 and ^CA16 which has already been introduced. If the legislation fails to pass, the organization is prepared to proceed with the initiative route. Staff believes this effort is worthwhile and necessary to maintain efficient project design at the State and local levels. RHK:kk R:I~PW ATAXPAYERS RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH IN SUPPORT OF "THE FAIR COMPETITION AND TAXPAYERS SAVINGS ACT" INITIATIVE AND LEGISLATION WHEREAS, California's population growth has resulted in the demand for more than $90 billion worth of highway, school, prison, flood control and other infrastructure i~nprovement projects; and WHEREAS, the need for state and local governments to contract with the private sector for architectural and engineering services has never been greater; and WHEREAS, a series of successful lawsuits by the bureaucrats at Caltrans has resulted in effectively banning the state from contracting with private engineers and architects; and WHEREAS, a recent study by the California Business Roundtable has determined the Caltrans lawsuits will create a $3 billion backlog of highway and bridge projects alone; and WHEREAS, in order to stop the Caltrans bureaucrats' continuing effort to prevent the state and local governments from utilizing private engineer and architects, an initiative and legislation known as "The Fair Competition and Taxpayer Savings Act" has been prepared; and WHEREAS, the Fair Competition and Taxpayer Savings Act changes California's laws and allows the state and local governments to contract with private companies for architectural and engineering services; and WHEREAS, the Fair Competition and Taxpayer Savings Act will save California's taxpayers money by encouraging competition between state employees and the private Resolution No. Page I of 2 /- sector; and WHEREAS, the Fair competition and Taxpayer Savings Act requires architecture arid engineering contracts to be subject to standard accounting practices and requires financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget. NOW, THEREFORE, IT IS HEREBY RESOLVED that the Ukiah City Council endorses "'l'he Fair Cornpetition and Taxpayers Savings Act" for architectural and engineering services as an initiative and legislation, and it authorizes its Director of Public Works/City Engineer to execute the support form and to serve as the City's contact for lhis endorsement. PASSED AND ADOPTED on this following roll call vote: AYES: NOES: ABSTAIN: ABSENT: day, ,1999, by the ATrEST: Jim Mastin, Mayor Marie Ulvila, City Clerk Resolution No. Page 2 of 2 [] 111 Anza Boulevard, #406 · Burlin~ame, CA 94010 · 650-340-0470 · FAX: 650-340-1740 [] 11300 W. Ol~lmpie Boulevard, #840 · Los Angeles, CA 90064 · 310-996-2600 · FAX: 310-996-2673 .~,.,~ May 6, 1999 Mr. Rick Kennedy Director of Public Works/City Engineer City of Ukiah 300 Seminary Ave. Ukiah, CA 95482-5400 Dear Mr. Kennedy, Last spring the Ukiah City Council voted to oppose Proposition 224, which would have prevented state and local governments from contracting out with qualified private engineers and architects. Fortunately, Prop. 224 was soundly defeated by the voters of California. Unfortunately, the same people who brought us Prop. 224 are at it again. While we were defeating Prop. 224, the same group of Caltrans employees was also pursuing their agenda in the courts. The bad news is they won - the California Supreme Court agreed with their interpretation of the constitution. This means that state government is essentially banned from contracting out for design services. And make no mistake about it -- local governments could be next In the past, cities, counties and special districts, as well as local and regional agencies, have relied on private design firms to help meet their infrastructure needs. Your ability to contract out for these services has already been impacted by the state ban. It's only a matter of time before additional lawsuits will attempt - and could well succeed - in extending that ban to local governments. In fact, the state employees' lawsuit ha~ already resulted in the City of San Die(lo and East Bay MUD cancelin(l contract_~ with local firms. If this ban is allowed to remain in place, it will essentially take control over your local projects and give it to the stat~-. You lose the ability to decide when, where and how to complete a project. Losing the ability to contract out also means completion of local infrastructure pro_iects will slow to a crawl. If all design work must be done by the state, a huge bottleneck will develop, stalling local projects for an indefinite amount of time. According to the California Business Roundtable, there will be a $3 billion backlog of transportation projects by the end of 1999 alone. Unfortunately, that's just the beginning. Further, as all design work shifts to the state, California's government will be forced to support a ballooning permanent workforce. As more and more scarce taxpayer funds are siphoned off to this purpose, it will mean either fewer dollars for vital local projects or increased taxpayer costs- just one more way for Sacramento to take funds away from local government. That is why we are asking for your City Council's support of the Fair Con~petitiof and Taxpayer Savings Act_ It expressly allows state and local governments to contract out for design services, giving you the flexibility and control necessary to deliver projects on budget and on time. Currently we are gathering signatures to place this initiative on the March 2000 ballot. In the meantime, we are also pursuing a legislative remedy. The legislation (AB 1448 and ACA 16), which has already been introduced, contains the same language as the initiative. We are working to pass the legislation but prepared to go the initiative route if necessary. We would like your City Council to support both the legislation and the initiative. I hope that once you have reviewed the enclosed materials you will agree that our solution allows California and its taxpayers the best opportunity to improve our infrastructure needs. Please sign and return to me the enclosed support form or sampl( resolution so I can add your city council to our growin_cl coalitior. I will be calling to follow-up on this letter. In the meantime, if you have any questions, please feel free to call me at (650) 340-0470. Thank you for your consideration. /~ru/Jason elB Y~arnett WHY LOCAL GOVERNM &AGENCIES SHOULD SUPPORT THE "FAIR COMPETITION AND TAXPAYER SAVINGS ACT" /IC~'1fl##££~ To Protect Ability Of Local Governments To Contract Out For Architectural & Engineering Services Historically, local government has been free to rely on private design firms as a cost-effective way to speed the delivery of transportation, school, water, earthquake retrofitting and other infrastructure projects. A series of lawsuits brought by state employees (primarily Caltrans engineers) however, has effectively banned Califor- nia State government from contracting with qualified private engineers and architects. This has also begun to limit the ability of local government to choose where and when to use private firms, putting many important local projects in jeop- ardy. But that's not all. Without action, the ability of local governments to contract for these services could be com- pletely taken away. The Ban On State Contracting Puts The Existing Ban Gives Sacramento Local Transportation One More Way To Take Funds Away , Projects In JeopardyFrom Local Governments The design work on all Caltrans projects will now have to be done by Caltrans employees. Accord- ing to the California Business Roundtable, this situation will create a $3 billion backlog of important highway and bridge projects by the end of 1999 alone. Failure to deliver on existing projects will make it more difficult in the future to find funding for new projects. "Make no mistake about it. The ability of local government to control local projects is very much at stake if we don't take action." Rob Salaber, Former Dixon City Councilmember Private Sector Earthquake Experts ~ Can No Longer Be Utilized Even though critical projects may need specific expertise available only in the private sector, these lawsuits have precluded their use. More than 20 contracts for seismic retrofit work have already been canceled. If this ban on contracting remains in place, state government will be forced to support a ballooning permanent workforce. As more and more scarce taxpayer funds are siphoned off to support an increased state payroll, it will mean either fewer dollars for vital projects at the local level, or increased taxpayer costs. This Situation Is Only Going To Get , Worse For Local Governments It's only a matter of time before additional lawsuits will attempt- and could well succeed -in officially extending this ban beyond state government to lo- cal and regional governments and agencies as well. In fact, the state employees' lawsuit has already resulted in the City of San Diego and East Bay MUD canceling contracts with private firms. Taxpayers for Fair Competition · 111 Anza Boulevard, Suite 406 · Burlingame, CA 94010 Phone: (650) 340-0470 · Fax: (650) 340-1740 /C,~'~. ® ~ ~?'~ Local Control Will Be Surrendered To The State The ban on state contracting essentially takes control over many local projects and gives it to the state. If local governments are denied the ability to contract out at all, you will lose the abil- ity to decide when, where and how to complete a local infra- structure project. Schedule Control: Does any- one really believe you'll be able to approach a big, Sacramento bureaucracy and insist a project be done when you want it? Hardly. And if completion of a local project depends on state infrastructure, such as an off ramp, you'll be in the same situ- ation. Budget Control: You can ne- gotiate price with a private firm, but not with a Sacramento bu- reaucracy. The price will be whatever it says- and you'll pay the bill. "Don't be fooled by false charges regarding the "Fair Competition and Taxpayer Savings Act." This measure does noth- ing to alter the current process by which contracts are awarded. It simply ensures you have the ability and flexibility to do so. Remember, it's the people misrepresenting this initiative who have ham- pered the state's ability to deliver infrastructure projects." John Fantham Director of Public Works County of Santa Cruz The "Fair Competition and Taxpayer Savings Act" exists in both legislative and initiative form. It is needed to overturn these lawsuits and ensure that state, as well as regional and local governments, will have the option of contracting for pri- vate engineering and architectural projects. The "Fair Competition and Taxpayer Savings Act" will: · Preserve The Flexibility Local Governments Need To Create The Design Team That Best Meets Its Needs Passage of the "Fair Competition and Taxpayer Savings Act" expressly al- lows state and local government the option of contracting with private engi- neers and architects. Local govern- ments should be able to make their own decisions about what combination of services will work best for them on any given project. Completion of Even More Local [ Projects Will Slow To A Crawl I This measure doesn't make local gov- ernment do anything not already required. · Affirm Local Choice On STIP Projects Even before the state ban existed, Caltrans gen- erally completed projects at a slower pace than a combination of public and private efforts. For example, Caltrans calculated it would take 17 years to complete a highway project in Santa Clara County. The project was ultimately com- pleted by a local public-private partnership 40% faster and hundreds of millions of dollars cheaper than what Caltrans had originally estimated. If state control of local projects is allowed to ex- pand beyond state transportation projects, the situation will become even worse. The antici- pated $3 billion backlog of transportation projects is just the beginning. This measure would make it absolutely clear that regional improvements under the State Transpor- tation Improvement Plan (STIP) are local choice projects, and that the sponsoring local or regional government has the choice and authority to use the design services of its choice. Provide Taxpayer Safeguards And Accountability Californians must be assured that taxpayer dol- lars are protected. Therefore, the initiative re- quires contracts be awarded through a competi- rive selection process that does not alter cur- rent law governing the selection of private firms. I-I Ill Anza Boulevard, #406 · Burlin~arne, CA 94010 · 650-340-0470 · FAX: 650-340-1740 11300 W. Okjmpio Boulevard, #840 · Los Angeles, CA 90064 · 310-996-2600 · FAX: 310-996-2673 ~-,~ WHO SUPPORTS "THE FAIR COMPETITION AND TAXPAYER SAVINGS ACT"? Legislation and Initiative (a~ of 5/6/99) Alliance of California Taxpayers and Involved Voters Bay Counties Civil Engineers and Land Surveyors Association California Building Industry Association California Business Roundtable * California Cement Promotion Council California Chamber of Commerce * California Chapter, American Planning Association California Manufacturers Association * California Minority and Women's Businesses Coalition California Taxpayers' Association * Consulting Engineers and Land Surveyors of California Contra Costa Transportation Authority Engineering and Utility Contractors Association Kern County Taxpayers Association National Federation of Independent Business Orange County Taxpayers Association* Responsible Voters for Lower Taxes San Diego County Taxpayers Association Shasta County Taxpayers Association Sonoma County Taxpayers Association Waste Watchers Western States Petroleum Association * Legislation only at this time. The Fair Competition and Taxpayer Savings Initiative for Architectural and Engineering Service 1. Permits Contracting Out of Architectural and Engineering Services: Allows state and local governments, special districts and school districts to contract with private companies for architectural and engineering services. Defines such services as architectural, landscape architectural, enviromnental, engineering, land surveying and construction management. 2. Local Choice to Deliver Transportation Projects On-Time: Gives local governments greater control over transportation improvements so that highway, bridge and transit projects can be delivered on-time and within budget. 3. Competitive Selection and Taxpayer Safeguards: Requires contracts be awarded through a competitive selection process that: · Prohibits government employees from awarding contracts if they have a financial or business relationship with the companies involved. · Requires compliance with all laws regarding political contributions, conflicts of interest or unlawful activities. ·Sub. jccts all architecture and engineering contracts to standard accounting practices. · l'crmits financial and performance audits as necessary to ensure contract services arc delivered within the agreed schedule and budget. 4. Strict Design and Construction standards- Already established project seismic safety, project design and construction standards are not chan,,ed bv the initiative 5. Only Applies to Architectural and Engineering Services: This measure does not apply to any other contracts except for architecture and engineering services. For example, it does not apply to peace officers, teachers or correction officers. Taxpayers for Fair Competition · 111 Anza Boulevard, Suite 406 · Burlingame, CA 94010 4/14/]999 Phone: (650) 340-0470 · Fax: (650) 340-1740 FAIR COMPETITION AND TAXPAYER SAVINGS INITIATIVE SECTION 1. TITLE. This measure shall be known and may be cited as the "Fair Competition and Taxpayer Savings Act." SECTION 2. PURPOSE AND INTENT. tt is the intent of the people of the State of California in enacting this measure: (a) To remove existing restrictions on contracting for architectural and engineering services and to allow state, regional and local governments to use qualified private architectural and engineering firms to help deliver transportation, schools, water, seismic retrofit and other infrastructure - projects safely, cost effectively and on time; (b) To encourage the kind of public/private partnerships necessary to ensure that California taxpayers benefit from the use of private sector experts to deliver transportation, schools, water, seismic retrofit and other infrastructure projects; (c) To promote fair competition so that both public and private sector architects and engineers work smarter, more efficiently and ultimately deliver better value to taxpayers; (d) To speed the completion of a multi-billion dollar backlog of highway, bridge, transit and other projects; (e) To ensure that contracting for architectural and engineering services occurs through a fair, competitive selection process, free of undue political influence, to obtain the best quality and value for California taxpayers; and (f) To ensure that private finns contracting for architectural and engineering services with governmental entities meet established design and construction standards and comply with standard accounting practices and permit financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget. SECTION 3. Article XXII is hereby added to the California Constitution to read: § 1. The State of California and all other governmental entities, including, but not limited to, cities, counties, cities and counties, school districts and other special districts, local and regional agencies and joint power agencies, shall be allowed to contract with qualified private entities for architectural and engineering services for all public works of improvement. The choice and authority to contract shall extend to all phases of project development including permitting and environmental studies, rights-of-way services, design phase services and construction phase services. The choice and authority shall exist without regard to funding sources whether federal, 0001 state, regional, local or private, whether or not the project is programmed by a state, regional or local governmental entity, and whether or not the completed project is a part of any State owned or State operated system or facility. § 2. Nothing contained in Article VII of this Constitution shall be construed to limit, restrict or prohibit the State or any other governmental entities, including, but not limited to, cities, counties, cities and counties, school districts and other special districts, local and regional agencies and joint power agencies, from contracting with private entities for the performance of architectural and engineering services. SECTION 4. Chapter 10.1 is hereby added to Division 5 of Title 1 of the Government Code to read: § 4529.10. For purposes of Article XXII of the California Constitution and this act, the term "architectural and engineering services" shall include all architectural, landscape architectural, environmental, engineering, land surveying, and construction project management services. § 4529.11. Ail projects included in the State Transportation Improvement Program programmed and funded as interregional improvements or as regional improvements shall be subject to Article XXII of the California Constitution. The sponsoring governmental entity shall have the choice and the authority to contract with qualified private entities for architectural and engineering services. For projects programmed and funded as regional improvements, the sponsoring governmental entity shall be the regional or local project sponsor. For projects programmed and funded as interregional improvements, the sponsoring governmental entity shall be the State of California, unless there is a regional or local project sponsor, in which case the sponsoring governmental entity shall be the regional or local project sponsor. The regional or local project sponsor shall be a regional or local governmental entity. § 4529.12. All architectural and engineering services shall be procured pursuant to a fair, competitive selection process which prohibits governmental agency employees from participating in the selection process when they have a financial or business relationship with any private entity seeking the contract, and the procedure shall require compliance with all laws regarding political contributions, conflicts of interest or unlawful activities. § 4529.13. Nothing contained in this act shall be construed to change project design standards, seismic safety standards or project construction standards established by state, .regional or local governmental entities. ...Nor shall any provision of this act be construed to prohibit or restrict the 0002 authority of the Legislature to statutorily provide different procurement methods for design-build projects or design-build-and-operate projects. § 4529.14. Architectural and engineering services contracts procured by public agencies shall be subject to standard accounting practices and may require financial and performance audits as necessary to ensure contract services are delivered within the agreed schedule and budget. § 4529.15. This act only applies to architectural and engineering services defined in Government Code section 4529.10. Nothing contained in this act shall be construed to expand or restrict the authority of governmental entities to contract for fire, ambulance, police, sheriff, probation, corrections or other peace officer services. Nor shall anything in this act be construed to expand or restrict the authority of governmental entities to contract for education services including but not limited to, teaching services, services of classified school personnel and school administrators. § 4529.16. This act shall not be applied in a manner that will result in the loss of federal funding to any governmental entity. § 4529.17. The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. § 4529.18. If any act of the Legislature conflicts with the provisions of this act, this act shall prevail. § 4529.19. This act shall be liberally construed to accomplish its purposes. § 4529.20. This act seeks to comprehensively regulate the matters which are contained within its provisions. These are matters of statewide concern and when enacted are intended to apply to charter cities as well as all other governmental entities. SECTION 5. This initiative may be amended to further its purposes by statute, passed in each house by roll call vote entered in the journal, two-thirds of the membership concurring, and signed by the Governor. SECTION 6. If there is a conflicting initiative measure on the same ballot, which addresses and seeks to comprehensively regulate the same subject, only the provisions of this measure shall become operative if this measure receives the highest affirmative vote. OOO3 AMENDED IN ASSEMBLY APRIL 12, 1999 CALIFORNIA LEGISLATURE--1999-2000 REGULAR SESSION ASSEMBLY BILL No. 1448 Introduced by Assembly Member Cox (Coauthors: Assembly Members Campbell, Leach, and Oller) (Coauthor: Senator Johannessen) February 26, 1999 An act to add Chapter 10.3 (commencing with Section 4529.61) to Division 5 of Title 1 of the Government Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST AB 1448, as amended, Cox. Public contracts: architectural and engineering services. The California Constitution provides that the civil service includes every officer and employee of the state, subject to specified exceptions. Statutory provisions govern contracting by state and local agencies for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services. This bill would enact statutory provisions to implement a proposed amendment to the California Constitution related to public contracting for architectural and engineering services. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for 98 AB 1448 -- 2 -- making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation:' no. Fiscal committee: yes. State-mandated local program: yes. The people of the State of California do enact as follows: 1 SECTION 1. Chapter 10.3 (commencing with 2 Section 4529.61) is added to Division 5 of Title 1 of the 3 Government Code, to read: 4 5 CHAFFER 10.3. FAIR COMPETITION AND TAXPAYER 6 SAVINGS ACT 7 8 4529.61. For purposes of Article XXII of the California 9 Constitution and this chapter, the term "architectural 10 and engineering services" includc3 shall include all 11 architectural, landscape architectural, environmental, 12 engineering, land surveying, and construction project 13 management services. 14 4529.62. All projects included in the State 15 Transportation Improvement Program programmed and 16 funded as interregional improvements or as regional 17 improvements arc shall be subject to Article XXII of the IS ('alil'~)rnia Constitution. The sponsoring governmental 19 cnt~tx h-~ .vhall have the choice and the authority to 2() ctmtr'act with qualified private entities for architectural 21 and engineering services. For projects programmed and 22 luHtlcd as regional improvements, the sponsoring 23 g~,xcrn~cntal entity bt shall be the regional or local 24 l,~t~c,.l .,ponsor. For projects programmed and funded as 25 ~ntcncg~,mal improvements, the sponsoring -( ",,xcrn~cntal entity bt shall be the State of California, _/ unlc,,, there is a regional or local project sponsor thcn in 98 -- 3 -- AB 1448 1 which case the sponsoring governmental entity is shall be 2 the regional or local project sponsor. The regional or local 3 project sponsor is~0ae shall be a regional or local iiUi ltlli(.~tllt~ 5 (.tUU[.J tlll~, 4 governmental ,. ..... : F*'~F ..... 8 ~ ......... prOCCSS ...... C ~ 12 agcncicg, to procure v 13 ~"s ......... 15 n~n a~ 17 g ............... · ......... 20 ..... :- a ............ v ................ 22 ~ ~a ~ 23 4529.63. All ~chitectural and engineering services ..... ~ .....~ fai~ 24 shall be procured pursuant to a 25 competitive selection process which prohibits 26 governmental agency employees from participating in 27 the selection process ~ when they have a financial or 28 business relationship with thc any private entity seehng 29 the -~-~"~'~ ~ contract, and the procedure shall 30 require compliance with all laws reg~ding political 31 contributions, conUicts of interest, or unlawful activities. 33 4529.64. Nothing contained in this chapter shall be 34 construed to change project design stand.ds, seis~c 35 safety standards, or project construction stand.ds 36 established by state, regional, or local governmental _~7 entities. This -~ .......~ ..... ~ Nor shall any provision of 38 this chapter be construed to prohibit or restrict the 39 authority of the Le Mature to 40 statutorily provide different procurement methods for 98 AB 1448 -- 4 m 1 design-build projects or design-build and operate 2 projects. 3 A ~"}cI ~'-'/ 4 4529.65. Architectural and engineering services 5 contracts procured by public agencies are shall be subject 6 to standard accounting practices and may require 7 financial and performance audits as necessary to ensure 8 that contract services are delivered within the agreed 9 schedule and budget. 10 a ~oc~ ,~o 11 4529.66. This chapter,w~,~,,-o'~'~'~: .... ,~,,~.~" only applies to 12 architectural and engineering services defined in Section 13 4529.61 Tt,:~ ~,t, ..... a ..... ......... ~, ....... Nothing contained in this 14 chapter shall be construed to expand or restrict the 15 authority of governmental entities to contract for fire, 16 ambulance, police, sheriff, probation, corrections, or 17 other peace officer services. ......... ~, ....... Nor 18 shall anything in this chapter be construed to expand or 19 restrict the authority of governmental entities to contract 20 for education services including, but not limited to, ............. d classified school 21 teaching services services of 22 personnel, and school administrators. 23 a~'~n ~q 24 4529.67. This chapter m~ shall not be applied in a 25 manner that res'alta will result in the loss of federal 26 funding to any governmental entity. 28 4529.68. The provisions of this chapter are severable. 29 If any provision of this chapter or its application is held 30 invalid, that invalidity shall not affect other provisions or 31 applications that can be given effect without the invalid 32 provision or application. 33 a ~q ~ 1 34 4529.69. If any other act of the Legislature conflicts 35 with the provisions of this chapte~ this chapter will 36 prevail. 37 4529.70. This chapter shall be liberally construed to 38 accomplish its puwoses. 39 4529.72. 98 ~ 5 ~ AB 1448 1 4529. 71. This chapter seeks to comprehensively 2 regulate the matters which are contained within its 3 provisions. These are matters of statewide concern and ......... v,,~, if ......~ ;~ when enacted are intended to 5 apply to ch~ter cities as well as all other governmental 6 entities. 7 SEC. 2. Notwithstanding Section 17610 of the 8 Government Code, if the Com~ssion on State Mandates 9 determines that this act contains costs mandated by the 10 state, re~bursement to local agencies and school 11 districts for those costs shall be made pursuant to P~t 7 12 (commencing with Section 17500) of Division 4 of Title 13 2 of the Government Code. If the statewide cost of the 14 claim for reimbursement does not exceed one million 15 doll,s-($1,000,000), reimbursement shall be made from 16 the State Mandates Claims Fund. O 98 CALIFORNIA LEGISLATURE--1999-2000 REGULAR SESSION Assembly Constitutional Amendment No. 16 Introduced by Assembly Member Cox March 3, 1999 Assembly Constitutional Amendment No. 16--A resolution to propose to the people of the State of California an amendment to the Constitution of the State, by adding Article XXII thereof, relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST ACA 16, as introduced, Cox. Public contracts: architectural and engineering services. The California Constitution provides that the civil service includes every officer and employee of the state, subject to specified exceptions. Statutory provisions govern contracting by state and local agencies for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services. This measure would provide that the state and all other governmental entities are permitted to contract with private entities for architectural and engineering services for all public works of improvement, without regard to funding source, whether the project is programmed by specified entities, or whether the project is part of a state-owned or state-operated system or facility. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. 99 ACA 16 ~ 2 ~ 1 WHEREAS, It is the intent of the people of the State of 2 California in enacting this measure to do all of the 3 following: 4 (a) Remove existing restrictions on contracting for 5 architectural and engineering services and allow state, 6 regional, and local governments to use qualified private 7 architectural and engineering firms to help deliver 8 transportation, schools, water, and other infrastructure 9 projects safely, cost-effectively, and on time; 10 (b) Encourage the kind of public or private 11 partnerships necessary to ensure that California 12 taxpayers benefit from the use of private sector 13 transportation, earthquake safety, and other 14 infrastructure experts; 15 (c) Promote fair competition so that both public and 16 private sector architects and engineers work more 17 efficiently, and ultimately deliver better value to 18 taxpayers; 19 (d) Speed the completion of a multibillion dollar 20 backlog of highway, bridge, transit, and other projects; 21 (e) Ensure that contracting for architecture and 22 engineering services occurs through an open and publicly 23 advertised competitive selection process, free of undue 24 political influence, to obtain the best quality and value for 25 California taxpayers; 26 (f) Ensure that private firms contracting for 27 architectural and engineering services with 28 governmental entities meet established design and 29 construction standards and are held responsible for the 30 performance of their contracts; now, therefore, be it 31 Resolved by the Assembly, the Senate concurring, That 32 the Legislature of the State of California at its 1999-2000 33 Regular Session commencing on the seventh day of 34 December 1998, two-thirds of the membership of each 35 house concurring, hereby proposes to the people of the 36 State of California that the Constitution of the State be 37 amended by adding Article XXII thereof, to read: 38 39 ARTICLE XXII 40 99 ~ 3 ~ ACA 16 1 PUBLIC CONTRACTS 2 3 SECTION 1. This article shall be known as the "Fair 4 Competition and Taxpayer Savings Act." 5 SEC. 2. The State of California and all other public 6 entities, including, but not limited to, cities, counties, 7 cities and counties, special districts, local and regional 8 agencies, and joint powers agencies, may contract with 9 private entities for architectural and engineering services 10 for all public works of improvement. The choice and 11 authority to contract extends to all phases of project 12 development, including permit and environmental 13 studies, rights-of-way services, design phase services, and 14 construction phase services. The choice and authority to 15 contract exist without regard to funding source, whether 16 federal, State, regional, local, or private, whether or not 17 the project is programmed by a State, regional, or local 18 government entity, or whether or not the completed 19 project is a part of any state-owned or state-operated 20 system or facility. 21 SEC. 3. Article VII may not be construed to restrict 22 or prohibit the State or any other public entities, 23 including, but not limited to, cities, counties, cities and 24 counties, special districts, local and regional agencies, and 25 joint power agencies, from contracting with private 26 entities for the performance of architectural or 27 engineering services. 28 SEC. 4. Chapter 10.3 (commencing with Section 29 4529.61) of Division 5 of Title 2 of the Government Code, 30 or any successor, may be amended only by a bill that 31 furthers the purposes of this measure and is passed in each 32 house of the Legislature by rollcall vote entered in the 33 journal, two-thirds of the membership concurring. O 99 FI 111 Anza Boulevard, #406 · Burlingame, OA 94010 · 650-340-0470 · FAX: 650-340-1740 FI 11300 W. OItjrnpie Boulevard, #840 · Los Angeles, CA 90064 · 310-996-2600 · FAX: 310-996-2673 Support Form ! / We support the Taxpayers for Fair Competition legislation and initia- tive allowing state and local governments to hire private architectural and engineering firms to help build important infrastructure for transportation, schools, prisons and water projects. You may add my/our name to your coalition list. Organization Name Date Authorized Signature Printed Name Mailing Address City, State, Zip Phone FAX E-Mail Address Please FAX completed form to Jason Barnett at (650) 340-1 740 THANK YOU] Taxpayers for Fair Competition 4/14/99 - Both 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22, 23 24 25 26 27 28 RESOLUTION NO. 98-07 'RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH OPPOSING THE PROPOSED "GOVERNMENT COST SAVINGS AND TAXPAYERS PROTECTION AMENDMENT" WHEREAS, 1. Every day billions of dollars of critical building, engineering and design projects from seismic retrofitting to flood control to schools and hospitals are underway; and 2. State, regional, and local governments are currently allowed the flexibility to contract with private firms, on a competitive basis, to design these projects; and 3. This process allows government the essential flexibility to use private firms to deliver a project on time and cost effectively; and 4. The so-called "Government Cost Savings and Taxpayers Protection Amendment" completely changes the process by giving the state bureaucracy a virtual monopoly on designing every State funded project; and 5. This will thereby force cities, counties, schools, special districts, regional governments, and even many private business to use the state bureaucracy to design roads, parks, hospitals, health clinics, schools, water treatment facilities, flood control walls, and other critical structures -including all engineering, design, geological and environmental work; and 6. Virtually every school and hospital has been designed by private firms, not state government; and 7. The proposed initiative eliminates local control and forces communities to rely on the out-of-town state bureaucracy for their design work; and Resolution No. 98-07 Page 1 of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8. Local governments would not be able to hold the state bureaucracy accountable; and 9. The initiative gives one state politician enormous power to decide who receives tens of thousands of design and building projects worth billions of dollars; and 10. The State Controller would have to analyze tens of thousands of proposed contracts per year costing taxpayers hundreds of thousands of dollars, if not millions, in additional expenses; and 1 1. To meet potential workload demands, hundreds, if not thousands, of state employees would need to be employed and paid, even if no projects were underway; and 1 2. Taxpayers would pick up the tab for billions of extra costs for projects, lost jobs and more state employees to evaluate projects. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah opposes the so-called "Government Cost Savings and Taxpayers Protection Amendment" that will cost our cities, counties, special districts and economy millions. /// III Iil III ill /// ,e.o,.tio..o. 98-07 Page 2 of 3 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 9.5 27 PASSED AND ADOPTED this 16th day of July, 1997, by the following roll. call vote: AYES: Councilmembers Ashiku, Kelly, Mastin, and Mayor Malone. NOES: None. ABSTAIN: ABSENT: ATTEST: None. C;uncilmember Chavez. .~ , ~/~ ) /~) S h e ric~a/n Malone // Mayor en B. Henderson City Clerk B:I~,E$1 FED.UP Resolution No. 98-07 Page 3 of 3 AGENDA SUMMARY ITEM NO. 9e DATE: JULY 7, 1999 REPORT SUBJECT: ADOPT RESOLUTION APPROVING ADMINISTERING AGENCY - STATE MASTER AGREEMENT FOR FEDERAL-AIDE PROJECTS, AND APPROVE BUDGET AMENDMENT IN THE AMOUNT OF $212,000 Submitted for the City Council's adoption is a Resolution Approving the Administering Agency - State Master Agreement for Federal-Aide Projects, and Authorizing the Mayor to Execute the Master Agreement. Last year, the City of Ukiah received notice that its candidate project for federal funding under the Hazard Elimination Safety (HES) Program of the Federal Highway Transportation Act was selected for funding in the 1999/2000 program year. The City's candidate HES project is the Traffic Signalization Upgrade for the Gobbi Street and State Street intersection. Funding in the amount of $212,000 for preliminary engineering (design), construction, and construction engineering (inspection) was approved. Authorization to proceed with the preliminary engineering phase has been given and federal funds up to a maximum of $18,500 are available for reimbursement for this phase of the work. The authorization to proceed with this phase is not a commitment on the part of the State to make reimbursement of federal dollars until the Master Agreement and the forthcoming Program Supplement Agreement are executed by the City, State, and the Federal Highway Administration. This project was not included in the 1999/2000 budget. It is requested that a budget amendment for the receipt and expenditure of $212,000 of federal dollars be approved. Both revenues and expenditures will be accounted for in the Special Revenue Fund (#250). RECOMMENDED ACTION: Adopt Resolution Approving the Administering Agency - State Master Agreement for Federal-Aide Projects, and Authorizing the Mayor to Execute the Master Agreement; and approve amendment to the 1999/2000 budget increasing Revenue Account No. 250.0600.488.001, and Expenditure Account No. 250.9815.800.001 by $212,000 each. ALTERNATIVE COUNCIL POLICY OPTIONS: Elect not to proceed with the project and do not adopt resolution. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: APPROVE'E~~_ RHK:kk R:I~PW AHES N/A Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Resolution Approving Master Agreement. 2. Master Agreement. 3. Notice of Authorization to Proceed. 4. Notice of Project Selection. 5. Budget Amendment Worksheet. Candace Horsley, City anager RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING AND AUTHORIZING THE EXECUTION OF THE ADMINISTERING AGENCY - STATE AGREEMENT FOR FEDERAL-AIDE PROJECTS, AGREEMENT NO. 01-5049 WHEREAS, the City of Ukiah has received federal funding allocation approval for its Hazard Elimination Safety (HES) project entitled "Traffic Signalization Upgrade at the Gobbi Street/State Street intersection, Project No. STPLHG-5049(003), EA No. 01924456L, for the 1999/2000 program year; and WHEREAS, an Administering Agency- State Agreement for Federal-Aide projects must be executed between the Agency and the State prior to the Agency receiving federal funding reimbursement for eligible project costs related to said HES project. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Ukiah approves the Administering Agency-State Master Agreement No. 01-5049, and it authorizes the Mayor to execute said Master Agreement. PASSED AND ADOPTED on this day, ,1999, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Jim Mastin, Mayor Marie Ulvila, City Clerk Resolution No. Page I of 1 MASTER AGREEMENT ADMINISTERING AGENCY-STATE AGREEMENT FOR FEDERAL-AID PROJECTS 01 District This AGREEMENT, made effective this day of City of Ukiah City of Ukiah Adminstering Agency Agreement No. 01 - 5049 998, is by and between the hereinafter referred to as "ADMINISTERING AGENCY," and the State of California, acting by and through the California Department of Transportation (Caltrans), hereinafter referred to as "STATE." WITNESSETH: WHEREAS, the Congress of the United States has enacted the Intermodal Surface Transportation Efficiency Act of 1991 to fund programs which include, but are not limited to, the Surface Transportation Program (RSTP), the Congestion Mitigation and Air Quality Improvement Program (CMAQ), the Transportation Enhancement Activities Program (TEA), and the Bridge Replacement and Rehabilitation Program (HBRR) (collectively the "Programs"); and WHEREAS, the Legislature of the State of California has enacted legislation by which certain Federal funds (RSTP and CMAQ) may be made available for use on local transportation facilities of public entities qualified to act as recipients of these federal funds in accordance with the intent of Federal law; and WHEREAS, before Federal-aid will be made available for a specific Program project, ADMINISTERING AGENCY and STATE are required to enter into an agreement relative to prosecution of said project and maintenance of the completed facility. NOW, THEREFORE, the parties agree as follows: ARTICLE I- PROJECT ADMINISTRATION 1. This AGREEMENT shall have no force or effect with respect to any Program project unless and until a project-specific Program Supplement to this AGREEMENT for Federal-aid Projects, hereinafter referred to as "PROGRAM SUPPLEMENT," has been executed. 2. The term "PROJECT," as used herein, means that authorized project financed in part with Federal funds as further described in an "Authorization to Proceed" document executed by STATE, in the subsequent specific PROGRAM SUPPLEMENT, and in a Federal-aid Project Agreement (PR-2). 3. The Financial commitment of STATE administered federal funds will occur only upon the execution of this AGREEMENT, and the execution of each project-specific PROGRAM SUPPLEMENT and PR-2. 4. ADMINISTERING AGENCY ftmher agrees,'as a condition to payment of funds obligated to a PROJECT, to comply with all the agreed-upon Special Covenants or Remarks attached to the PROGRAM SUPPLEMENT identifying and defining the nature of the specific PROJECT. 5. The PROGRAM SUPPLEMENT shall designate the party responsible for implementing the various phases of the PROJECT, the Federal funds requested, and the matching funds to be provided by ADMINISTERING AGENCY and/or STATE. Adoption of the PROGRAM SUPPLEMENT by ADMINISTERING AGENCY and approval by STATE shall cause such PROGRAM SUPPLEMENT to be executed and be a part of this AGREEMENT as though fully set forth herein. Unless otherwise expressly delegated in a resolution by the ADMINISTERING AGENCY's governing body, the PROGRAM SUPPLEMENT shall be approved and managed by the ADMINISTERING AGENCY's governing body. 6. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth In'LPP 95-07, "Reengineering," and subsequent approved revisions .. and Local Programs Manual updates, hereafter referred to as REENGINEERED PROCEDURES) relating to the Federal-aid Program, all Title 23 Federal requirements, and all applicable Federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise designated in the approved PROGRAM SUPPLEMENT. 7. If PROJECT involves work on the State highway system, it shall also be the subject of a separate standard form of encroachment permit and, where appropriate, a cooperative agreement between STATE and ADMINISTERING AGENCY to determine how the PROJECT 'is to be constructed. 8. If PROJECT is not on STATE-owned right of way, pROjECT shall be constructed in accordance with REENGINEERED PROCEDURES. The REENGINEERED PROCEDURES describe minimum statewide design standards for local agency streets and roads. The REENGINEERED PROCEDURES for projects'off the National Highway System (NHS) allow the STATE to accept either the minimum statewide design standards or ADMINISTERING AGENCY-approved geometric design standards. Also, for projects off the NHS, STATE will accept ADMINISTERING AGENCY-approved standard specifcafions, standard plans, and materials sampling and testing quality assurance programs that meet the conditions described in the REENGINEERED PROCEDURES. 9. When PROJECT is not on the State highway system but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the parties may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for furore maintenance of protective devices or other facilities installed under the contract. 10. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. As provided in.the REENGINEERED PROCEDURES, work may be performed by a consultant(s), provided a fully qualified and licensed employee of ADMINISTERING AGENCY is in responsible charge. 11. The Congress of the United States, the Legislature of the State of California, and the Governor of the State of California, each within their respective jurisdiction, have prescribed certain employment practices with respect to work financed with Federal or State funds. ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM (Exhibit A attached hereto) whenever State funds finance part of the PROJECT, and the NONDISCRIMINATION ASSURANCES (Exhibit B attached hereto). ADMINISTERING AGENCY further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for 11/29/95 performance of work connected with the PROJECT shall incorporate Exhibits A (whenever State funds finance part of the PROJECT) and Exhibit B (with third party's name replacing ADMINISTERING AGENCY) as parts of such agreement. ARTICLE II- RIGHTS OF-WAY 1. No contract for the construction of a Federal-aid PROJECT shall be awarded until the n~ary rights of way have been secured. Prior to the advertising for construction of the PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that necessary rights of way are available for construction purposes or will be available by the time of award of the construction contract 2. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability which may result in the event the right of way for a PROJECT is not clear as certified. The furnishing of right of way as provided for herein includes, in addition to all real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of damages to real property not actually taken but injuriously affected by PROJECT. ADMINISTERING AGENCY shall pay, from its own non-matching funds, any costs which arise out of delays to the construction of the PROJECT because utility facilities have not been removed or relocated, or because rights of way have not been made available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work. 3. Subject to STATE approval and such .,supervision as is required in REENGINEERED PROCEDURES over ADMINISTERING AGENCY s right of way acquisition procedures, ADMINISTERING AGENCY may claim reimbursement from Federal funds for expenditures to purchase only necessary rights of way included in PROJECT after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY. 4. When real property rights are to be acquired by ADMINISTERING AGENCY for a PROJECT, said ADMINISTERING AGENCY must carry out that acquisition in compliance with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. 5. Whether or not Federal-aid is to be requested for right of way, should ADMINISTERING AGENCY, in acquiring right of way for PROJECT, displace an individual, family, business, farm operation, or non-profit organization, relocation payments and services will be provided as set forth in Chapter 5 of Title 23, U.S. Code. The public will be adequately informed of the relocation payments and services which will be available,- and, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from his/her dwelling or to move his/her business or farm operation without at least 90-days written notice from ADMINISTERING AGENCY. ADMINISTERING AGENCY will provide STATE with specific assurances, on each portion of the PROJECT, that no person will be displaced until comparable decent, safe and sanitary replacement housing is available within a reasonable period of time prior to displacement, and that ADMINISTERING AGENCY's relocation program is realistic and adequate to provide orderly, timely and efficient relocation of displaced persons for the PROJECT as provided in Federal Highway Programs Manual (FHPM 7-5). 6. In all real property transactions acquired for the PROJECT, following recordation of the deed or such other recorded instrument evidencing title in the name of the ADMINISTERING AGENCY or their assignee, there shall also be recorded a separate document which is an "Agreement Declaring Restrictive Covenants." Said Agreement Declaring Restrictive Covenants will incorporate the assurances included within Exhibits A and B and Appendices A, B, C and D, as appropriate, when executed by ADMINISTERING AGENCY. 11/29/95 ARTICLE III- MANAGEMENT AND MAINTENANCE OF PROPERTY 1. ADMINISTERING AGENCY will maintain and operate the PROJECT property acquired., developed, rehabilitated, or restored for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the property may transfer this obligation and responsibility to maintain and operate the property to another public entity. 2. Upon ADMINISTERING AGENCY acceptance of the completed Federal-aid construction contract or upon contractor being relieved of the responsibility for maintaining and protecting a portion of the work, the agency having jurisdiction over the PROJECT shall maintain the completed work in a manner satisfactory to the authorized representatives of STATE and the United States. If, within 90 days after receipt of notice from STATE that a PROJECT, or any portion thereof, under ADMINISTERING AGENCY's jurisdiction is not being properly maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of furore Federal-aid projects of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of maintenance satisfactory to STATE and the Federal Highway Administration.' The provisions of this section shall not apply to a PROJECT which has been vacated through due process of law. 3. The maintenance referred to in paragraph 2, above, includes not only the phYsical condition of the PROJECT but its operation as well. PROJECT shall be maintained by an adequate and well-trained staff of engineers and/or such other professionals and technicians as the project requires. Said maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements. ARTICLE IV - FISCAL PROVISIONS 1. The PROJECT, or portions thereof, must be included in a Federally-approved Statewide Transportation Improvement Program (FSTIP) prior to ADMINISTERING AGENCY submittal of the "Request for Authorization." 2. State and Federal funds will not participate in PROJECT work performed in advance of approval of the "Authorization to Proceed." The parties shall execute a PROGRAM SUPPLEMENT between STATE and ADMINISTERING AGENCY subsequently incorporating the "Authorization to Proceed." 3. ADMIlqISTERING AGENCY may submit invoices in arrears for reimbursement of participating PROJECT costs on a monthly or quarterly progress basis once the PROJF. LW PROGRAM SUPPLEMENT has been executed by STATE and the PR-2 has been executed by FlqWA. The total of all amounts claimed, plus any required matching funds, must not exceed the actual total allowable costs of all completed engineering work, right of way acquisition, and construction. 4. Invoices shall be submitted on ADMINISTERING AGENCY letterhead and shall include this AGREEMENT number, Federal-aid project number, and Progress billing number for the PROJECT, and shall be in accordance with REENGINEERED PROCEDURES. 5. The estimated total cost of PROJECT, the amounts of Federal-aid programmed, and the matching amounts agreed upon may be adjusted by mutual consent of the parties hereto in a Finance Letter/Detail Estimate and a PR-2 document which are to be considered as part of this AGREEMENT. Federal-aid program amounts may be increased to cover PROJECT cost increases only if such funds are available and FHWA concurs with that increase. 11/29/95 6. When additional federal-aid funds are not available, the ADMINISTERING AGENCY agrees that the payment of Federal funds will be limited'to the amounts approved by the PR-2, or its modification (PR-2A)~ and agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY funds. 7. ADMINISTERING AGENCY shall use its own nonfederal-aid funds to finance the local share of eligible costs and all expenditures ruled ineligible for financing with Federal funds. STATE shall make the determination of ADMINISTERING AGENCY cost eligibility for Federal fund financing. 8. Any overpayment to ADMINISTERING AGENCY of amounts invoiced shall be returned to STATE by ADMINISTERING AGENCY upon written demand. 9. Should ADMINISTERING AGENCY fail to refund all moneys due STATE as provided hereunder or should ADMINISTERING AGENCY breach this Agreement by failing to complete PROJECr, then, within 30 days of demand, or within such other period as may be agreed to in writing between the parties hereto, STATE, acting through the State Controller, the State Treasurer, or any other public agency, may withhold or demand a transfer of an amount equal to the amount owed to STATE from furore apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other funds and/or may withhold approval of future ADMINISTERING AGENCY Federal-aid projects. 10. Should ADMINISTER/NG AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, pursuant to Article IV - 9, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder. ARTICLE V- RETENTION OF RECORDS/AUDITS 1. For the purpose of determining compliance with Public Contract Code Section 10115, et. seq. and Title 21, California Code of Regulations, Chapter 21, Section 2500 et, seq., when applicable, and other matters connected with the performance of the Agreement pursuant to Government Code Section 10532, ADMINISTERING AGENCY and any third party under contract with ADMINISTERING AGENCY shall retain all original records to the project financed with Federal funds and shall make records available upon request by Federal and State representatives. Following final settlement of the project costs with FHWA the records/documents may be microfilmed by the ADMINISTERING AGENCY, but in any event shall be retained for a period of three years from STATE payment of the f'mal voucher, or a four-year period from the date of the final payment under the contract, whichever is longer. ADMINISTERING AGENCY shall retain records/documents longer if required in writing by STATE. 2. Per the Single Audit Act of 1984, any ADMINISTERING AGENCY that receives $100,000.00 or more per fiscal year in Federal Financial Assistance shall have an audit performed by an independent audit rum per the Single Audit Act - (see OMB-A128, "Audits of State and Local Governments"). ARTICLE VI- FEDERAL LOBBYING ACTIVITIES CERTIFICATION 1. By execution of this AGREEMENT, ADMINISTERING AGENCY certifies, to the best of the signatory officer's knowledge and belief, that: 11/29/95 A. No STATE or Federal appropriated funds have been paid or will be paid, by or on behalf of ADMINISTERING AGENCY, to any person for influencing or attempting to influence an officer or employee of any STATE or Federal agency, a Member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding of any STATE or Federal contract including this Agreement, the making of any STATE or Federal loan, the entering into of any cooperative contract, and the extension, continuation, renewal, amendment, or modification of any STATE or Federal contract, grant, loan, or cooperative contract. B. If any funds other than Federal appropriated funds have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a member of Congress, an officer or employee of Congress or an employee of a member of Congress in connection with this Agreement, grant, local, or cooperative contract, ADMINISTERING AGENCY shall complete and submit Standard Form-LLL, "Disclosure Form to Rep Lobbying," in accordance with the form instructions. C. This certification is a material representation of fact upon which reliance was placed when this Agreement was made or entered into. Submission of this certification is a prerequisite for making or entering into this Agreement imposed by Section 1352, Tide 31, U.S. Code. Any party who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. 2. ADMRqlSTERING AGENCY also agrees by signing this document that the language of this certification will be included in all lower tier sub-agreements which exceed $100,000 and that all such sub-recipients shall certify and disclose accordingly. ARTICLE VII- MISCELLANEOUS PROVISIONS 1. Neither STATE nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done, or omitted to be done, by ADMINISTERING AGENCY under, or in connection with, any work, authority or jurisdiction delegated to ADMINISTERING AGENCY under this AGREEMENT. It is understood and agreed that, pursuant to Government Code Section 895.4, ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE, its officers, and employees from all claims, suits or actions of every name; kind and description brought for, or on account of, injury (as defined in Government Code Section 810.8) occurring by reason of anything done, or omitted to be done, by ADMINISTERING AGENCY under, or in connection with, any work, authority or jurisdiction delegated to ADMINISTERING AGENCY under this Agreement. STATE reserves the right to represent itself in any litigation in which STATE's interests are at stake. 2. Neither ADMINISTERING AGENCY nor any officer or employee thereof, shall be responsible for any damage or liability occurring by reason of anything done, or omitted to be done, by STATE under, or in connection, with any work, authority, or jurisdiction delegated to STATE under this AGREEMENT. It is also understood and agreed that, pursuant to Government Code Section 895.4, STATE shall fully indemnify and hold ADMINISTERING AGENCY harmless from any liability imposed for injury (as defined by Government Code Section 810.8) occurring by reason of anything done, or omitted to be done, by STATE under, or in connection with, any work, authority, or jurisdiction delegated to STATE under this Agreement. ADMINISTERING AGENCY reserves the fight to represent itself in any litigation in which ADMINISTERING AGENCY's interests are at stake. 3. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this Agreement, shall act in an independent capacity and not as officers, employees or agents of STATE. 11/29/95 4. STATE may terminate this AGREEMENT with ADMINISTERING AGENCY should ADMINISTERING AGENCY fail to perform the covenants herein contained at the time and in the manner herein provided. In the event of such termination, STATE may proceed with the PROJECT work in any manner deemed proper by STATE. If STATE terminates this AGREEMENT with ADMINISTERING AGENCY, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under this AGREEMENT prior to termination, provided, however, that the cost of PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY under this. AGREEMENT, and the balance, if any, shall then be paid ADMIIN-ISTERING AGENCY upon demand. 5. Without the written consent of STATE, this AGREEMENT is not assignable by ADM]IN'ISTERING AGENCY either in whole or in part. 6. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or Agreement not incorporated herein shall be binding on any of the parties hereto. 7. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the fight to annul this AGREEMENT without liability, pay only for the value of the work actually performed, or in STATE's discretion, to deduct from the price of consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee. 8. In accordance with Public Contract Code Section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by.a Federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two-year period because of ADMINISTERING AGENCY's failure to comply with an order of a Federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board. 9. ADMINISTERING AGENCY shall disclose any f'mancial, business, or other relationship with STATE or the FHWA that may have an impact upon the outcome of this AGREEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of this AGREEMENT. 10. ADMINISTERXNG AGENCY hereby certifies that it does not now have nor shall it acquire any financial or business interest that would conflict with the performance of PROJECT under this AGREEMENT. 11. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its discretion, to terminate this AGREEMENT without liability, to pay only for the work actually performed, or to deduct from the PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration. 12. · This Agreement is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature that may affect the provisions, terms, or funding of this AGREEMENT in any manner. 11/29/95 ARTICLE VIII- TERMINATION OF AGREEMENT 1. This Agreement and any PROGRAM SUPPLEMENT(s) executed under this AGREEMENT shall terminate upon 60 days' prior written notice by STATE. 2. Each separate PROGRAM SUPPLEMENT shall separately establish the term and funding limits for each described PROJECT funded under this Federal-aid program. No STATE or FHWA funds are obligated against this AGREEMENT. IN WITNESS WHEREOF, the parties have executed this AGREEMENT by their duly authorized officers. STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION CITY OF UKIAH By By Chief, Office of Local Programs Project Implementation Date ADMINISTERING AGENCY Representative Name & Title (Authorized Governing Body Representative) Date EXHIBIT A FAIR EMPLOYMENT PRACTICES ADDENDUM 1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment because of race, color, sex, religion, ancestry or national origin. ADMINISTERING AGENCY will take aff'u'mative action to ensure that employees are treated during employment, without regard to their race, sex, actual or perceived sexual orientation, color, religion, ancestry, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section. 2. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the Stale · Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement. 3. Remedies for Willful Violation: (a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon rexxfipt of a f'mal.judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon rex~ipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employ- ment Practices Act and had issued an order under Labor Code Section 1426 which has become final or has obtained an injunction under Labor Code Section 1429. (b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement. 11/29/95 EXHIBIT B NONDISCRIMINATION ASSURANCES ADMINISTERING AGENCY HEREBY AGREES THAT, as a condition to receiving any Federal financial assistance from the STATE, acting for the U.S. Department of Transportation, it will comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d-42 U.S.C. 2000d-4 (hereinafter referred to as the ACT), and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, "Nondiscrimination in Federally-Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964" (hereinafter referred to as the REGULATIONS), the Federal-aid Highway Act of 1973, and other pertinent directives, to the end that in accordance with the ACT, REGULATIONS, and other pertinent directives, no person in the United States shall, on the grounds of race, color, sex, national origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity for which ADMINISTERING AGENCY receives Federal financial assistance from the Federal Department of Transportation, ADMINISTERING AGENCY HEREBY GIVES ASSURANCE THAT ADMINISTERING AGENCY will promptly take any measures necessary to effectuate this agreement. This assurance is required by subsection 21.7(a) (1) of the REGULATIONS. More specifically, and without limiting the above general assurance, ADMINISTERING AGENCY hereby gives the following specific assurances with respect to its Federal-aid Program: 1. That ADMINISTERING AGENCY agrees that each "program'' and each "facility" as defined in subsections 21.23 (e) and 21.23 Co) of the REGULATIONS, will be (with regard to a "program") conducted, or will be (with regard to a "facility") operated in compliance with all requirements imposed by, or pursuant to, the REGULATIONS. 2. That ADMINISTERING AGENCY shall insert the following notification in all solicitations for bids for work or material subject to the REGULATIONS made in connection with the Federal-aid Program and, in adapted form, in all proposals for negotiated agreements: ADMINISTERING AGENCY hereby notifies all bidders that it will affmnatively insure that in any agreement entered into pursuant to this advertisement, minority business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national origin, religion, age, or disability in consideration for an award. 3. That ADMINISTERING AGENCY shall insert the clauses of Appendix A of this assurance in every agreement subject to the ACT and the REGULATIONS. 4. That the clauses of Appendix B of this Assurance shall be included as a covenant running with the land, in any deed effecting a transfer of real property, structures, or improvements thereon, or interest therein. 5. That where ADMINISTERING AGENCY receives Federal financial assistance to construct a facility, or part of a facility, the Assurance shall extend to the entire facility and facilities operated in connection therewith. 10 11/29/95 6. That where ADMINISTERING AGENCY receives-Federal financial assistance in the. form, or for the acquisition, of real property or an interest in real property, the Assurance shall extend to rights to space on, over, or under such property. 7. That ADMINISTERING AGENCY shall include the appropriate clauses set forth in Appendix C and D of this Assurance, as a covenant running with the land, in any future deeds, leases, permits, licenses, and similar agreements entered into by the ADMINISTERING AGENCY with other parties: Appendix C; (a) for the subsequent transfer of real property acquired or improved under the Federal- aid Program; and Appendix D; (b) for the construction or use of or access to space on, over, or under real property acquired, or improved under the Federal-aid Program. 8. That this assurance obligates ADMINISTERING AGENCY for the period during which Federal fmancial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property or real property or interest therein, or structures, or ~rnprovements thereon, in which case the assurance obligates ADMINISTERING AGENCY or any transferee for the longer of the following periods: (a) the period during which the property .is used for a purpose for which the Federal f'mancial assistance is extended, or for another purpose involving the provision of similar services or benefits; or (b) the period during which ADMINISTERING AGENCY retains ownership or possession of the property. 9. That ADMINISTERING AGENCY shall provide for such methods of administration for the program as are found by the U.S. Secretary of Transportation, or the official to whom he delegates specific authority, to give reasonable guarantee that ADMINISTERING AGENCY, other recipients, sub- grantees, applicants, sub-applicants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed by, or pursuant to, the ACT, the REGULATIONS, this Assurance and the Agreement. 10. That ADMINISTERING AGENCY agrees that the United States and the State of California have a right to seek judicial enforcement with regard to any matter arising under the ACT, the REGULATIONS, and this Assurance. THIS ASSURANCE is given in consideration of and for the purpose of obtaining any and all Federal grants, loans, agreements, property, discounts or other Federal financial assistance extended after the date hereof to ADMINISTERING AGENCY by STATE, acting for the U.S. Department of Transportation, and is binding on ADMINISTERING AGENCY, other recipients, subgrantees, applicants, sub-applicants, transferees, successors in interest and other participants in the Federal-aid Highway Program. 11 11/29/95 APPENDIX A TO EXHIBIT B During the performance of this Agreement, ADMINISTERING AGENCY, for itself, its assignees and successors in interest (hereinafter collectively referred to as ADMINISTERING AGENCY) agrees as follows: (1) Compliance with Reeulations: ADMINISTERING AGENCY shall comply with the regulations relative to nondiscrimination in Federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be mended from time to time, (hereinafter referred to as the REGULATIONS), which are herein incorporated by reference and made a part of this agreement. (2) Nondiscrimination: ADMINISTERING AGENCY, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub-applicants, including procurements of materials and leases of equipment. ADMINISTERING AGENCY shall not participate either directly or indirectly in the discrimination prohibited by Section 21.5 of the REGULATIONS, including employment practices when the agreement covers a program set forth in Appendix B of the REGULATIONS. (3) Solicitations for Sllb-agreements, Including Procurements of Materials and Eq_uipmcnt: In all solicitations either by competitive IJidding or negotiation made by ADMINISTERING AGENCY for work to be performed under a Sub-agreement, including procurements of materials or leases of equipment, each potential sub-applicant or supplier shall be notified by ADMINISTERING AGENCY of the ADMINISTERING AGENCY's obligations under this Agreement and the REGULATIONS relative to nondiscrimination on the grounds of race, color, or national origin. (4) Information and Reoort~: ADMINISTERING AGENCY shall provide all information and reports required by the REGULA'I*IONS, or directives issued pursuant thereto, and shall permit access to ADMINISTERING AGENCY's books, records, accounts, other sources of information, and its facilities as may be determined by STATE or FHWA to be pertinent to ascertain compliance with such REGULATIONS or directives. Where any information required of ADMINISTERING AGENCY is in the exclusive possession of another who fails or refuses to furnish this information, ADMINISTERING AGENCY shall so certify to STATE or the FHWA as appropriate, and shall set forth what efforts ADMINISTERING AGENCY has made to obtain the information. (5) Sanctions for Noncompliance: In the event of ADMINISTERING AGENCY's noncompliance with the nondiscrimination provisions of this agreement, STATE shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to: (a) withholding of payments to ADMINISTERING AGENCY under the Agreement until ADMINISTERING AGENCY complies; and/or (b) cancellation, termination or suspension of the Agreement, in whole or in part. (6) Incom_ oration of Provisions: ADMINISTERING AGENCY shall include the provisions of paragraphs (1) through (6) in every sub-agreement, including procurements of materials and leases of equipment, unless exempt by the REGULATIONS, or directives issued pursuant thereto. ADMINISTERING AGENCY shall take such action with respect to any sub-agreement or procurement as STATE or FHWA may direct as a means of enforcing such provisions including sanctions for .noncompliance, provided, however, that, in the event ADMINISTERING AGENCY becomes involved in, or is threatened with, litigation with a sub-applicant or supplier as a result of such direction, ADMINISTERING AGENCY may request STATE enter into such litigation to protect the interests of STATE, and, in addition, ADMINISTERING AGENCY may request the United States to enter into such litigation to protect the interests of the United States. 12 11/29/95 APPENDIX B TO EXHIBIT B The following clauses shall be included in any and ail deexts effecfing or recording the transfer of PROJECT real property, structures or improvements thereon, or interest therein from the United States. (GRANTING CLAUSE) NOW, 'IIqEREFORE, the U.S. Department of Transportation, as authorized by law, and upon the condition that ADMINISTERING AGENCY will accept title to the lands and maintain the project constructed thereon, in accordance with Tire 23, United States Code, the Regulations for the Administration of Federal-aid for Highways and the policies and procedures prescribed by the Federal Highway Administration of the Department of Transportation and, aiso in accordance with and in · compliance with the Regulations pertaining to and effectuating the provisions of Tire VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 U.S.C. 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the ADMINISTERING AGENCY all the right, tire, and interest of the U.S. Department of Transportation in, and to, said lands described in Exhibit "A" attached hereto and made a part hereof. (HABENDUM CLAUSE) TO HAVE AND TO HOLD said lands and interests therein unto ADMINISTERING AGENCY and its successors forever, subject, however, to the covenant, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal fmanciai assistance is extended or for another purpose involving the provision of similar services or benefits and shail be binding on ADMINISTERING AGENCY, its successors and assigns. ADMINISTERING AGENCY, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, (1) that no person shall on the grounds of race, color, sex, nationai origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed (;) (and) * (2) that ADMINISTERING AGENCY shall use the lands and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Tire 49, Code of Federal Regulations, Department'of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federaily-assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended (;) and (3) that in the event of breach of any of the above-mentioned nondiscrimination conditions, the U.S. Department of Transportation shall have a right to re-enter said lands and facilities on said land, and the above-described land and facilities shall thereon revert to and vest in and become the absolute property of the U.S. Department of Transportation and its assigns as such interest existed prior to this deed.* - * Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. 13 11/29/95 APPENDIX C TO EXHIBIT B The following clauses shall be included in any and all deeds, licenses, leases, permits, or similar instruments entered into by ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7(a) of Exhibit B. The grantee (licenSee, lessee, permittee, etc., as appropriate) for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (.in the case of deeds and leases add "as covenant running with the land") that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this (deed, license, lease, permit, etc.) for a purpose for which a U.S. Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the (grantee, licensee, lessee, permittee, etc.), shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal RegulationS, U.S. Department of Transportation, Subtitle A, Office of Secretary, Part 21, Nondiscrimination in Federally-assisted programs of the Department of Transportation - Effecmation of Title VI of the Civil Rights Act of 1964, and as said RegulationS may be amended. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to terminate the (license, lease, permit etc.) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit, etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to re-enter said land and facilities thereon, and the above-described lands and facilities shall thereupon revert to and vest in and become the absolute property of ADMINISTER/NG AGENCY and its assigns. * Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. 14 11/29/95 APPENDIX D TO EXHIBIT B The following shall be included in all deeds, licenses, leases, permits, or similar agreements entered into by the ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7 (b) of Exhibit B. The grantee (licensee, lessee, permittee, etc., as appropriate) for himself, his personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds, and leases add "as a covenant running with the land") that: (1) no person on the ground of race, color, sex, national origin, religion, age or disability, shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the ground of race, color, sex, national origin, religion, age or disability shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (3) that the (grantee, licensee, lessee, permittee, etc.,) shall use the premises in compliance with the Regulations. (Include in licenses, leases, permits, etc.)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to terminate the (license, lease, permit, etc.) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit, etc.) had never been made or issued. (Include in deeds)* That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to re-enter said land and facilities thereon, and the above-described lands and facilities shall thereupon revert to and vest in and become the absolute property of ADMINISTERING AGENCY, and its assigns. Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964. 15 11/29/95 Cmltrans District 1 8-538-7810 p.8 (.'HH-76 (VERSION E-76) AUTHORIZATION 1'0 PROCEEII F~:CDERAL AID PROGRAM rFiOJ L. OCATOR O.I-MEN-O-UKI PF!EFIX STPLHG I' ,qO,IECT II(] 5049(003> ~;;Lq NO :1. ;[] I' s'r- EA 0 J --9244561_ /:,!)ENCY U I< I AH F.!IUTE SIAIE ST itP DATA: HPO/¥EAR tl [] ~AN I ZE~ ~ If~B/RURAl_ RURAL AREA PHASE CALIFORNIA DEPARTMENT OF 'FRANSPOR'IATION PROJECT LOCATION. INIERSECTION OF STALE & GO.B.BI ST.S TYPk- OF WORK SIGNALS AND TURN POCKEI' FED, RR NOS PUC CODE(S> EXEHPT FROM FHIJA REVIEIJ ENV SI'ATUS CAT, EXCL, R/II STATLIS POPULA'T ION .BRIDGE NOS PREV, ALItHORIZA'I'ION PI.-': R/W CON APPR CODES Q43 LINE NOS 10 IJORK CLASS .1. FUNC, CL, UM05 PROJECT COST FEIIERAL COST PRE:U, OIIL.]GAllON 0 0 F'E THIS RE(~UESI' lB,500 18 ,.(0 SUiBTOT ¢,I.. 1B, 500 18,500 TOTAL liB,500 [8,500 IltIS AUI'HPI~IZATION TO PROCEED IS NOT A COHMII'MENT ON THE PART OF STATE TO MAKE REIHBURSEttENI'S ~.;'~'II_ THF FPOGRAM SUPPLEHEN'r AGREEMENT IS EXECUTED BY THE AGENCY AND STATE AN~ FEDERAL-AID ~U,JE[:f AGltEEHEHT (PR--2) IS EXECIJI'ETJ ~Y TIqE S'fAfE AND FHWA, PPNO - 01-N/A S I'Ai"E RE'riAR I< S APPN ::13Z, S¥1:'LHG-5049(003) TI-IlS PF'tqUEST IS FOR PE PE $ F)H LINE' J.O .T 0 '1 h L F' F.: ].IL 8,_,00 ~ 8500 ..... F' I:.: 1 - J.l.'::J/"?~, CHAItGE]) APPN. COItI:_' 'I'[) Q-13 (T-.2~.., lOOg I-lES) :f, 212,0C, 0 HAX, FED, 9L)LI..ARS AVAILAtiL. E, 97/9E; HES PROGRAH ,",!1'I'HOt','.IZA'; tON '[0 P E F'REPARE:O PEVIEWEi} ]3Y AU I'HO R I ZE'D '[iY [!t~l. IGATED i~Y A COI'I'ON ON 1.i /~'* ,C, lAlr ~r CALIFORNIA BUSINESS, TRAI'ISPOR[A[ION AND HOUSING AGENCY PEIE WILSON, Govem,,r Di!PARTMENf OF 1RANSPORTATION DISIRICT 1, P.O. BOX 3700 I::LIRFI'A, CA 95502-3?00 ll~ll l'lt('d',lE 707/445 (T07) ,145-6399 April 24, 1998 HES Program Mr. Rick Kennedy Director of Public Works City of Ukiah 300 Sen~inary Avenue Ukiah, CA 95482 Dear Ricl,,, 'lhis is to announce that your HES candidate pr. oject to upgrade traffic, sig. nals at .tl~e intersection of State Street and Gobbi Street, nominated for the multi-year program_., was selected for the years 1999/2000. Also at this time we would like to solicit local projects to develop the new "Priority List for I. lazard Elimination Safety Projects" for the 2000/2001 year program. Please send your candidate projects listed in your priority order to our office as soon as possible but no later than June 1, 1998. Chapter 9 of the Local Assistance Program Guidelines is a good source for instructions for your submittal. Project Status Reports for new and existing projects are due July I, 1998. If you have any questions, please contact me at the above phone number. Sincerely, ;, /!, ~J~n Bulinski Local Assistance Engineer u Z u < 0 0 u .,,~ C:) z ILl 0 g > -- a~ >- AGENDA SUMMARY ITEM NO. 9~' DATE: JULY 7, 1999 REPORT SUBJECT: APPROVE SOLE SOURCE PROCUREMENT AND AWARD CONSTRUCTION CONTRACT TO URETEK USA, INC., FOR THE COMPLETION OF THE REPAIR TO STATE STREET AT A COMPENSATION NOT TO EXCEED $26,000 For the benefit of the new Councilmembers, previous Staff Reports concerning this project performed by Uretek USA, Inc., are attached for background information. Submitted for the City Council's consideration and approval is Staff's request for a sole source procurement and the award of a construction contract to Uretek USA, Inc., for the completion of the repair work to State Street from Henry Street to Low Gap Road. As indicated in Uretek's proposal, it is proposed that the undersealment not completed in the previous work be performed on a time and expense basis not to exceed $25,550 utilizing the unit prices of $6.40 per pound of URETEK 486 (undersealment polyurethane) and $595 per day for traffic control. It is estimated that 3,620 pounds of URETEK 486 is needed to complete the undersealant work for the four traffic lanes of State Street from Henry Street to approximately 385 feet north of Henry Street. It is also estimated that the work can be completed in four (4) working days. The grinding of the slab high points at the curled ends of the individual slabs was completed as part of the previous contract and is not required as part of this work. Should it become necessary to inject additional URETEK 486 beyond the estimated 3,620 pounds, Uretek USA, Inc., has agreed to a unit price of $5.45 per pound of URETEK 486 beyond the estimated quantity. The undersealment of concrete roadways utilizing expanding polyurethane is a proprietary process and is only available from Uretek USA, Inc. Because of funding restrictions and staff's recommendation that the remaining project funds in the 1998/1999 budget be utilized for the completion of the roadway milling, it was not possible to complete the undersealment work with the original project. As explained to the City Council last year, we encountered substantial voids under the concrete road pavement which caused a tremendous consumption of the URETEK 486 material. It is now time to complete the undersealment work. The completion work has been budgeted in the 1999/2000 budget under Account No. 301.9830.250 at a funding level of $26,000. RECOMMENDED ACTION: Approve Sole Source Procurement and award construction contract to Uretek USA, Inc., for the completion of the repair to State Street at a compensation not to exceed $26,000. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine work is not needed and do not award contract. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer ~ Candace Horsley, City Manager 1. Uretek USA, Inc., proposal. 2. Agenda Summary Report without attachments dated August 5, 1998. 3. Memorandum to Candace Horsley dated August 4, 1998. 4. Agenda Summary Report without attachments dated June 3, 1998. 5. Final invoice for previous work. 6. Fund No. 301 Budget Sheet. APPROVED: RHK:kk R:I\PW AURETEK Canc~ace Horsl~yl City Mar~ger The URETEK Method® URETEK USA, INC. Tuesday, March 09, 1999 Rick Kennedy, P.E. Director of Public Works / City Engineer City of Ukiah 300 Seminary Ave. Ukiah, CA Dear Rick: I have enclosed the budget proposal we have discussed for your review and use in the budget preparation process. I have structured this proposal along the same lines as our previous proposal and subsequent contract. This proposal is the total repair of the four traffic lanes of State Street north of Henry for approximately 385 feet. All joints will be undersealed, stabilized, lifted and leveled (where possible) to provide a smooth, stable dde. If you have questions, please feel free to contact me at 209-257-1809. Thanks again for your time, interest and favorable consideration. Regards, URETEK USA, Inc. / Faux Pas Enterprises, LLC Encl.: Proposal for Ukiah Budget 10230 Ponderosa Way, Suite 100 · Pine Grove, California 95665 · Off 209-257-1809 ° Fax 209-257-1814 Proposal from URETEK USA, Inc. to City of Ukiah, California To: From: Subject: Date: Rick Kennedy / City Engineer / Director of Public Works Jim Barber/URETEK USA, Inc. / Faux Pas Enterprises, LLC BUDGET PROPOSAL- Application of The URETEK Method to Repair Transverse Joint Areas of Pavement on State Street - Repair of All Four Traff~: Lanes not Completed In 1998 3/8/99 Scope of Work: URETEK USA, Inc. will drill 5/8 inch holes on approximate 6-foot centers and inject URETEK 486 expanding polyurethane foam under the slab joints to be repaired. The expanding foam will underseal, stabilize and lift the roadway to as near its original as the structure will permit. Traffic control is the responsibility of URETEK USA, Inc. The work will be accomplished between the hours of 7:30 AM to 5:00 PM (or to be determined by the City of Ukiah). The work areas will be left free of construction debds at the end of each work pedod. Traffic will be permitted to retum immediately to the repaired areas after traffic control is removed. Location: City of Ukiah, CA. The four (4) twelve foot wide traffic lanes on State Street from Henry Street north approximately 385 feet is the area to be repaired. The parking lane is not a part of this proposal. Project Duration: The estimated total duration of this project is 4 days. URETEK USA, Inc. will schedule this work based upon your needs and our existing production schedule. Material: The matedal to be used is URETEK 486, a high-density expanding polyurethane foam with an nominal density of 4 lb. URETEK 486 will expand up to 15 times its odginal liquid volume, exerting an upward anisotropic lifting force of approximately 8 kips per square foot. Assumed Conditions Specific to this Project: 1. The average depth of depressed paved surface ( below odginal grade profile ) over the entire repair area cannot be determined exactly, therefore an estimate of URETEK 486 matedal required is as follows: Injection of URETEK 486 at transverse joints i.e., approximately 98 transverse joints are to be undersealed using approximately 37 lb. of URETEK 486 per common joint. An approximate total of 3620 lb. of matedal will be required at a cost of $23,170 and will require about four (4) working days at (8) hours per day. Traffic control will be provided at $595/day. This work will be done in conjunction with and coordinated by URETEK USA, Inc. See NOTE below. Grinding of slab high points i.e., removing of approximately 1/4 to 3/8 inch of concrete at the curled ends at transverse joints between all adjacent slabs was completed as part of the previous contract and is not required here. 2. A 30 foot approach/departure gradient is required in each direction from all settled structures. 3. This work is covered by California State Prevailing Wage Rate Regulations. NOTE: URETEK USA, Inc. has no way of determining the exact amount of material required to affect the specified repairs due to possible extensive voids under the pavement; therefore, if the estimated amount is reached pdor to completion of the repairs, URETEK will not proceed without the City of Ukiah's specific approval. If additional matedal is required, URETEK USA, Inc. will provide it at a reduced rate of $5.45/lb. up to ten percent (10%) of the original estimated quantity. In any case, the City of Ukiah will only be charged for the actual amount of URETEK 486 injected. COST: The charge for less than 20,000 lb. of URETEK 486 (installed) is $ 6.40/lb. (the same rate as last year's contract). Additional material, if required, will be charged at $5.45/lb. See NOTE above. PROJECT COST (BUDGET): The total budget cost of the 1999-2000 project year is $25,550. Optional Additional Services: To be provided upon specific request and approval by the City of Ukiah or it's designated representative. Concrete sawing or concrete grinding (using powered hand guided equipment) on relatively small areas. $150 / hour (with two hour minimum charge) Accepted - Signature - Date · Presented by: Jim Barber, P.E. URETEK USA, Inc./Faux Pas Enterprises, LLC .2 GENCY ITEM NO. DATE: AUGUST__L~, 1998 ITEM SUMARY REPORT APPROVE NON-AGENDIZED ITEM AS EMERGENCY ITEM; AUTt'I()RIZE THE EXPENDITURE OF AN ADDITIONAL $4.2,345 FOR THE STATE STREET SURFACE REMEDIATION PROJECT, AND APPROVE BUDGET AMENDMENT Submitted for the City Council's consideration and approval as an emer0ency item is a non-agendized matter pertaining to the State Street Surface Reme(liatio~ project currently in progress. A decision regarding project funding and/or the reduction of the scope-of-work needs to be made immediately. Staff is requesting the City Council's authorization to expend an additional $42,345 from Gas Tax Fund No. 2'107 for the completion of the State Street SI]rface Remediation project from I_ow Gap Road to Henry Street. Additional funds are neoded to complete the undersealment of the concrete panels. The volume of voids under the joints of the concrete panels is greater than what was anticipated and, there¢ore, a greater amount of urethane than what was estimated is being consumed. CONTINUED ON PAGE 2 RECOMMENDED ACTION' Authorize an increase in tl~e al)proved project fl~nding level and approve budget amendment increasing Account No. 301.9830.240.000 by $42,345. ALTERNATIVE COUNCIL POLICY OPTIONS: Not approve the funding increase;. Allow project limits to fall where current funding allows. Requested by: Prepared by: Coordi~ated with' Attachments- Rick H. I(ennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/Ci'ty Engineer Candace Horsley, City Manager 1. Project reports from Contractor. 2. Copy of Fund Summary in 1998/99 Budget. 3. Budget Worksheet. APPROVED: R: 1 \PW:kk ASTATE.ST Candace Horsley, City Manager Approve Non-agendized Item as Emergency Item; Authorize the Expenditt~re of an Additional 842,345 'for the State Street Surface Remediation Project, and Approval Budget Amendment August 5, 1998 Page 2 BACKGROUND At the time the proposed State Street Surface Remediation project was submitted to the City Council for project approval on June 3, 1998, Staff emphasized tl~at the proposed project funding level of $120,000 was based oil assumed material usage of 13,900 (pounds) lbs of urethane for undersealment and 52,032 sqtlare feet of surface to be milled. Unit item costs for the undersealment are $6.40 per Ibsofure~hanefor tile first 13,900 lbs an(t $5.4.5 per lb. for qtlantities over 13,900 Ihs, and .'.1490 per day for traffic control. It was assumed that 24 lbs of urethane would be curlst~med per common joint. This assumed consumption rate translates to 1.33 lbs per foot et traffic lane. There are four (4) traffic lanes between the project limits of l_ow Gal) Road and Henry Street each being 2,600 feet long for a total traffic lane footage of 10,400 'feet. Based on tile first six (6) days of undersealment work, urethane consumption was averaging just under 2 II)s per linear foot of traffic lane. From Sunday, Jt~ly 26 to Monday, August 3, 3,890 linear 'feet of traffic lane had been co~nplel'ed alIbi 7,480 lbs of urethane constlmed. 'lhe work completed included the entire lenglt~ of'the outside north bound lane 'from Henry Street to Low Gap Road (2,600 feet) and both the outside and inside southbo~Jnd lanes from Low Gat) Road to Evans Street (each lane at 645 + feet). Last night, the urethane consumption rate exceeded Ille average of 2 lbs per foot for the work performed within the inside northbound lane as reported in the attached memorandum from the contractor. If project funding is not increased, and if the urethane consumption rate remains in the vicinity of 2 lbs per foot of traffic lane, the limits of project cornplotior~ for undersealment will most likely be between Low Gap Road and Clara Street for tl~e two southbound lanes and the inside northbound lane. The limits for the milling vw}rk will not change, however, without slab undersealment and stabilization, the milling of the surface will not be a lasting improvement. Staff is recommending that the approved project funding be increased by $42,345. This funding increase would permit an additional 7,590 lbs of t~retl~ane at a t~nit price of $5.4.5 per lb. and two more days of traffic control at $490 per day. Based on the observed 2 lbs of urethane consumption per foot of traffic lane and a balance of 3,450 feet of traffic lane remaining to be undersealed (two southbound lanes, one inside northbound lane from Clara to Henry) after the maximum urethane pot~ndage of 13,900 is reached, it is calculated that an additional 6,900 lbs of uretha~e will be needed to complete tile entire project. Based on last night's experie~lce, it is recommended that we increase the balance needed by 10% to 7,590 lbs. It is recommended that 1he additional ft~nding be tal(el~ from tile 'ft~d l~;~l~lce of 872,854 in Gas Tax Fund No. 2107. A budget amendment is required to ~uthorize this expenditure. RHK:KK R:I\PW ~d~, ~________~ ASTATE,ST M.E.M.O.R.A.N.D.U.M I)ATE: August 4, 1998 TO' FROM: RE' Candace Horsley, City Manager Rick H. Kennedy, Director of Public Works/City Engineer SURFACE REMEDIATION OF STATE STREET FROM LOW GAP ROAD TO HENRY STREET As previously communicated, the volume of voids under tile concrete panels or slabs i:; greater ll~an 'l. hat anticipated arid we are consuming more urethane material than vvasestirl~ated. We calculate that an additiona17,0001bs of urethane will be needed ~,~ complele tt~(.; project witllii~ the original project limits. Tt~is estimate is based on It~e material used and distance covered to date; we are experienci~ig a consumption rate of 2 lbs per linear foot of lane. We haw} traversed 3,890 feet as of Monday ~iight ;~(J have (;u~sumed 7,480 lbs of urethane or approximately 54% of our poundage Illicit of 13,900 lbs. The total distance to be traversed between Low Gap Road and Henry Street is 10,400 feet (2,600 feet x 4 lanes). If we are limited to the 13,900 lbs of urethane, we can only underseal 6,950 linear feet or approximately 67% of the original project. The ~]orthbound ()utside lane has been undersealed between Henry Street and Low Gap l~oad. 1'1~; soutl~bound oul:side and inside lanes from Low Gap Road to Evans has I~r;(.;rl u~(.ler,sealed. As instructed by me, the contractor will underseal tl~e remailiiilg l.l~ree (3) la~es to equal dista~ces from Low Gap Road unless additional funding is secured. 'l't~is distance would be approximately 1,450 feet soutt~ of Low Gap Road or to Clara Street. It is eslin~ated that we carl underseal the complete project with an additional ,~39,130. -rl~is would include 7,000 lbs of urethane at the reduced unit price of 05.4-5 per It)s, and two (2) additional days of traffic control at $490 per day. lt)e $23,074 allowa~ce or estimate for tile milling portio[~ of the project remains tile .';ame, ti()~vever, it is not beneficial to mill concrete panels that have not been t~ndersealed because they will continue to rock. Would yoLJ authorize a request to City Council for the additional funding this Wednesday night. We could do so as an emergency item. I would recommendtha-t tile additio~al funding needed be taken from the anticipa'ted fund balance of 872,854 i~ Fund No. 2107. R: 1 ',PW MItORSLEY.28 ITEM NO. 10c DATE: ,JUNE 3,_19_98__8__ ~GENDA S U M_M A .R. Y R E P.___O_O__~R_'['_ APPROVE SOLE SOURCE PROCUREMENT AND AWARD CONTRACT TO URETEK USA, INC., FOR THE REPAIR OF STATE STREET FROM I IENRY STREET TO LOW GAP ROAD AND SELECT PROJECT SCOPE OPTION Submitted for the City Council's consideration and approval is Staff's request for a sole source procurement and the award of a contract to Uretek LISA, Inc., for the repair of State Street from Henry Street to Low Gap Road. Two options witi~ dii[ering project scopes and costs have been submitted and it is requested that the City Council select the scope-of-work it desires to fund. CONTINUED ON PAGE 2 RECOMMENDED ACTION: I , 2. 3. 4. 5. Approve sole source procurement. Award contract to Uretek USA, Inc. Select scope-of-work option - either Plan A or Plan B. If Plan A is selected, identify and authorize the expenditure of additional funds. If Plan B is selected, identify which two adjacent lanes are desired for repair. ALTERNATIVE COUNCIL POLICY OPTIONS: , , Reject sole source procurement and direct Staff to request bids for conventional "mud jacking" method. Not proceed with project. Citizen Advised' N/A Requested by' Prepared by: Coordinated with' Attachments. Rick H. Kennedy, Director of Public Works/City Engineer Rick H. Kennedy, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Proposal from Uretek USA, Inc., Plan A. 2. Proposal from Uretek USA, Inc., Plan B. 3. Memorandum from Glenn Behn regarding sole contracting with Uretek USA, Inc. 4. . source Memorandum from District Director of District 04 regarding sole source procurement with Uretek USA, Inc. Request for approval to contract with pertinent information regarding conventional and Uretek repair methods. Candace Horsle¥, C]lt¥ Manager R; l~,V:kk AURETEK Approve Sole Source Procurement and Award Contract to Uretek USA, INC., for the Repair of State Street from Henry Street to Low Gap Road and Select Project Scope Option June 3, 1998 Page 2 The existing pavement section of State Street from Henry Street to Low Gap Road is an exposed concrete pavement approximately 12" thick placed on an equally deep section of cement treated aggregate base. The concrete pavement has cracked between the transverse joint, as concrete slabs inherently do and over the years the sections of pavement have been rocking over the underlying surface creating voids under the transverse joints and cracks. The successive cracking of concrete pavement and the subsequent creation of voids create an unlevel riding surface. This physical condition causes the vehicle to rock as it traverses over high and Iow points between the adjacent slab sections. The traditional repair for unlevel concrete road beds involves the injection of flowable concrete grout into the voids under the pavement joints thereby lifting Iow points and then milling the surface to remove the high points in the slab sections. This system of repair called "mud jacking" has been used for many years by State Highway Departments. A somewhat recent method to the United States is now replacing the conventional repair system utilized by State Highway Departments in the repair of their concrete highways. This new system is patented by Uretek USA and it consists of injecting a special formulation of high density polyurethane in-lieu of concrete grout. The formula technology was developed in Finland and it has become the material of choice for lifting and undersealing concrete in Europe. The Uretek undersealing method is now being utilized by Caltrans and they are finding that the urethane will last significantly longer than the 18 months experienced with the conventional concrete grout. There are reports of the urethane lasting for 18 years in Europe. As indicated in the attached internal correspondence between Caltrans' departments, Caltrans has sole sourced Uretek for concrete slab undersealing. Competitive bids are not possible because Uretek USA, Inc., does not sell the material to others or make the equipment available for application. The patent will be in effect until Noven~ber 4, 2003. Caltrans District 04 has stated its position that the high density polyurethane foam is environmentally safe and is superior to the concrete grout which has the potential for polluting water bodies and aquifers. Uretek USA, Inc., has submitted two proposals to the City designated as Plan A and Plan I~. Tl~e scope-of-work for Plan A involves the injection of the urethane and milling of the road surface of all four lanes of traffic within State Street excluding the parking lanes from Henry Street to Low Gap Road. The estimated duration of the work is 14 days and the work would be accomplished between the hours of 10:00 p.m. to 6:00 a.m. Water, water loading facilities, dump location for waste water and disposal fees would be the responsibility of the City. The total cost for Plan A is estimated at $119,034 based on the maximum material usage of 13,900 pounds of the urethane (Ur'etek 486). If the amount of material exceeds this stated maximum the excess amount would be charged at $5.45 per pound, but in no case would Uretek USA, Inc., apply rnaterial in excess of the maximum without prior approval from the City. The City would be charged for the actual amount of Uretek 486 injected at a rate of $6.40 per pound up to the maximum of the 13,900 pounds. Approve Sole Source Procurement and Award Contract to Uretek USA, INC., for the Repair of State Street from Henry Street to Low Gap Road and Select Project Scope Option June 3, 1998 Page 3 The scope-of-work for Plan B involves the injection of the Uretek 486 material and milling of the high points within the road surface for any two adjacent 12 foot wide traffic lanes within State Street from Henry Street to Low Gap Road. The two adjacent lanes could be the two inside lanes (one in each direction of travel) or the two lanes in either the southbound or northbound directions. The estimated duration of the contract is seven days and the work would be accomplished between the hours of 10:00 p.m. and 6:00 a.m. As in Plan A, the City would provide water, water loading facilities, dump location for wastewater and disposal fees. The total cost for Plan B is estimated at $59,930 based on the maximum material usage ()1 ~:~,900 pounds of Uretek 486. Material in excess of this stated maximurn would be cilarged at $5.45 per pound and the maximum would only be exceeded upon approval of the City. As in Plan A, the first 6,900 pounds would be charged at $6.40 per pound. Under both Plans, there will be nominal costs in the range of $300 for water ~sage. Gas Tax Funds in the amount of $60,000 were budgeted for the surface repair of State Street based on discussions with the Uretek USA, Inc., representative two years ago and an original scope-of-work which included the injection of urethar~e only. Uretek USA, Inc., is now recommending some milling of high spots which cal~not be corrected with the sealing and lifting of concrete slabs by injecting only at tl'~e joints. It is obvious that Plan A would be the preferred option, however, the fund balance in the Gas Tax Fund has been obligated for other projects. Current and future oas tax allocations made to the City are supporting street maintenance and engir~eering services. The budgeted amount of $60,000 will cover the costs for Plan B or half the project. Because sources of funds available to cities for road maintenance project are rapidly diminishing, the City Manager is recommending that the City fund the entire ~'~roject now (Plan A) while a majority of the funds are available. It is recommended that the anticipated balance of $22,000 in the 1998/99 Gas Tax Allocation which is not designated for the support of Street Maintenance and Engineering Services and $38,000 from Fund 110, Special General Fund Reserve be utilized to f{~nd the complete project. The proposed additional allocations would be present:ed for approval during the Budget Hearings. It is recommended that Plan A be condi[ionally awarded upon the allocation of additional funding with the approval of the 1998/99 Budget. RHK:kk R: I'J:'W AURETEK URETEI( USA, Inc. 9422 Itammerly Houst(,% TX 77080 Voice: 713/9'/3-0125 Fax: 7].3/973-2168 Invoice Invoice Number: 11643 Invoice Date: 9/5/98 Page: 1 S01d T0: UKI 01 CITY OF UKIAH DIREC"I'OR OF PW/CITY ENGINEER 300 SEMINARY AVE UKIA[I, CA 95482-5400 C U~.!0 ~_~]~e_r_r .[!.~_ ................ 'Payment Terms ............... i' :_¥_.:-'. ............................ Pescr_iption "Ro~t Surface Remediation for State Street from Low Gap Road to Henry Street" contract date(] 22 June 1998 revised 5 August 1998 to $161,379.00. All totals sl~own to nearest dollar. Foam Injection - Base Contract: 13,922 lbs 8 $6.40/lb = $89,101; Foam Injection - Approved Revision: 4,862 lbs 8 $5.45/lb = $24,498; Traffic ConL'~:ol - Base Contract: 14 days 8 $490/day = $6,86(); Traffic Control - Approved Revision: 2 days 8 $49() = $960; Additional Traffic Control: 5 days 8 0.00 approved; Roadway Milling.- Base Contract: 94 macl,.i~e hr 8 $245.47/hr = $23,074; Roadway Milling - Approved Revision: 68.8 machine hr 8 $245.47/hr = $16,886; Roadway Milling not approved: 1.1 machine hr ~ 0.00 approved. 9422 Hamn~erly · Houslon, Texas 77080 e Tel: 713/973-0125 ~' Fax: 713/,973-2168 Sales Rep ID -1 Due Date Amount ].61,379.00 Rug 29 98 04:44p 3im Barber 707-864-9376 Saturday, August 29, 1998 Rick Kennedy Director of Public Works / City Engineer City of Ukiah 300 Seminary Ave. Ukiah, CA 95482-5400 Payment Request Number 1 (Pro-Forma Invoice I DRAFT) Dear Rick, This Payment Request is for contracted work done under an Agreement dated June 22, 1998 for "Road Surface Remediation for State Street from Low Gap Road to Henry Street" in the amount of $1 '19,034 and revised on August 5, 1998 to $161,379. Ite___j~ Contrac~t Ouantit¥ Unit Price Total Provide(___Ji Total Char~ Foam Injection 13,922 lbs $6.40/lb 13,922/lb $89,101 Base Contract Foam Injection 4,862 lbs $5.45/lb 4,862/lb $24,498 Approved Revision Traffic Control 14 days $490/day 14 days $6,860 Base Contract Traffic Control 2 days $490/day 2 days $960 Approved Revision Traffic Control 5 days No Charge 5 days $0 Not Approved Roadway Milling 94.0 machine hr $245.47 hr 94.0 machine hr $23,074 Base Contract Roadway Milling Approved Revision 68.8 machine hr $245.47 hr 68.8 machine hr $16,886 Roadway Milling 1.1 machine hr No Charge 1.1 machine hr $0 Not Approved Total Due $161,379 ~ / ) ~ t ,'2 NOYE: All totals shown to nearest dollar. The revi.~ion of August 5, 1998 provided for additio~ sel¥ices as required. It was agreed that in the interest of ridability and public comfort, the roadway milling wot.lid be completed throughout the entire project'~.it~, and ii: any funds remained they would be used to underseal the areas of the roadway which had not been undersealed. The milling cor, st~med all available funds appropriated. The original bas~._12jd~was actually predicated on machine hours for milling and translated into surface area to be milled in the proposal. Final milled area was 129,429 sq. ft. Approximately 2800 lbs of foam should be injected when funds are available. C) i 0 0 0 0 0 0 0 0 0 O. 0 0 0 0 0 0,,I 0 0 0 0 0 0 0 0 0 0 0 0 0 0 01~0 0 0 I'-. 0 I',-- 0 0 o ~ 0 0,1 0 0 I'-- 0 0 --9-o AGENDA SUMMARY ITEM NO. 9q DATE: July 7, 1999 REPORT SUBJECT: APPROVAL OF EMPLOYMENT AGREEMENT WITH LANDFILL EMPLOYEES FOR STAFF RETENTION THROUGH SCHEDULED CLOSURE DATE OF UKIAH LANDFILL In anticipation of the scheduled closure of the Ukiah Landfill in approximately November 2000, Staff has drafted an Employment Agreement requesting a commitment from the current Landfill employees, which will help them plan for their personal needs and will help the City meet its obligations to close the Landfill in a timely and efficient manner. The Agreement will be provided to Council and considered in Closed Session. RECOMMENDED ACTION: 1. Approve Employment Agreement for Landfill Employees. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Do not approve Employment Agreement for Landfill Employees. 2. Refer to Staff for additional information. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Melody Harris, Personnel Officer Melody Harris, Personnel Officer Candace Horsley, City Manager N/A APPROVED:~- 3:~oer~a~rland.fil Candace Horsley, City~Ma)~ager AGENDA SUMMARY ITEM NO. 9h DATE: JULY 7, 1999 REPORT SUBJECT: APPROVAL OF SETTLEMENT AGREEMENT BETWEEN REDWOOD BUSINESS PARK AND THE CITY OF UKIAH The City and representatives for Redwood Business Park have been meeting to discuss a settlement agreement regarding the existing litigation. A draft settlement agreement will be discussed in Closed Session with the Council, and if approved, brought to Open Session for Council vote. RECOMMENDED ACTION' Approve settlement agreement regarding Redwood Business Park. ALTERNATIVE COUNCIL POLICY OPTIONS: Do not approved draft settlement regarding Redwood Business Park, and refer matter back to staff with direct. Citizen Advised: Representatives of Redwood Business Park Requested by: Prepared by: Coordinated with: Attachments: Candace Horsley, City Manager Candace Horsley, City Manager Candace Horsley, City Manager 1. Copy of draft settlement agreement regarding Business Park. Redwood APPROVED: ~ _~., CH:kk Cand~ce Horsley, ~i~-'~,lanager R:I\CM ARBP CONFIDENTIAL MEMORANDUM DATE: July 1, 1999 FROM: Candace Horsley, City Manager TO: Honorable Mayor Mastin and Members of City Council SUBJECT: Item 12a - Conference with Labor Negotiator- Fire Unit Attached please find the ratified Fire Unit MOU, approved by Council on April 21, 1999. I have received a call from Richard Reed, the Labor Consultant for the Fire Unit regarding No. 6 of the MOU, EMT-I incentive. The issue is as follows: When the Fire Unit first brought this issue into negotiation in their very first proposal, they indicated they were looking at incentive pay for the two Firefighters that currently have EMT-I certificates for the following reasons. Back in 1984/85, the Certificate Pay for EMT-I was made a requirement of the position and therefore incentive pay no longer was given to Firefighters that possessed the Certificate. The Fire Unit discussion during negotiations centered around the fact that there were two Firefighters, Mark Hilliker and Chuck Yates, who currently had their EMT-I Certificates and it was felt they should receive some sort of incentive pay for those Certificates as they were hired before it became required by the job description. In most cases when a Certificate no longer qualifies for incentive pay, we roll the equivalent percentage into the position salary. In this case that was not accomplished as it was the Fire Chief who handled the changes to the job description requirements personally. Council agreed to pay these two individuals and we adopted the MOU. After adoption of an MOU, Personnel and Payroll check every item on the MOU for accuracy. In their review of this particular item, they found that the Unit had been incorrect in their representation that both Mark Hilliker and Chuck Yates had been hired before the EMT-I incentive was a requirement. In fact, only Mark Hilliker was hired before it was a requirement, and Chuck Yates was hired under the first recruitment that did have the EMT-I Certificate as a requirement of the job. Our Personnel Officer, Melody Harris, met with Chuck Yates to inform him that he would not be receiving the $100 per month and the poor guy went absolutely ballistic. He was not part of the negotiations (again, the great communication that this Unit seems to have), and his understanding was that anyone that had an EMT-I Certificate and did not have a certificate higher than that would receive the $100 per month. Richard Reed contacted me and indicated that this was very disturbing to the whole Unit and their intention all along was to have both Mark Hilliker and Chuck Yates receive this incentive. I explained to him that we had taken it on faith that they were accurate in the information they had given us, and because of the way the MOU is written, Chuck Yates does not qualify for the incentive. I then indicated to Mr. Reed that I would take this issue to the Council in Closed Session to notify you of the situation, and if you so chose to give the EMT-I incentive pay to Chuck Yates, since we did discuss two employees, that I would be back to let them know the final determination. I also explained to him that I was not going to push for this as I feel that their intention in the negotiations was regarding employees hired before the EMT-I Certificate became a requirement. I will be discussing this further with you in Closed Session. CH:ky Att. 4:Can:MCC196 MEMORANDUM OF UNDERSTANDING 1998-1999 'l-ilis Memorandum of Understanding is entered into pursuant to the Meyers-Millias-Brown Act (Califo~llia Gover~lment Code Section 3500, et. seq.) and applicable ordinances and ~esolutions of tile City of Ukiah, between the City of Ukiah (hereinafter City) and the Fire Unit (hereinafter Unit). As a result of meet and confer sessions, the City and Unit have agreed to the following understandings. ]'erm lhe term of this Agreement shall be one year, effective October 1, 1998, through · ';eptenlber 30, 1999. All items in this Memorandum of Agreement shall be effective upon signing of the Agreement unless otherwise specil'ically stated. a. Effective tile pay period closest to tile signing of tllis Agreement, Fire Unit members shall receive a 4% increase to their base rate salary schedule. b. Fire Unit members shall receive a lump sum payment which is equivalent to 4% of base rate salaw retroactive to the October 4, 1998 pay period. This lump su~n will be a one-time payment and will ~lot incr'ease base rate salary. Overtime is not included. ~¢ll~'ER_S..Defef~ed Compensation Program Tile (City agrees to adopt the CalPERS 457 Deferred Compensation Program in addilion to the existing deferred compensation programs currently offered. 3. Medical Insurance Tile City shall pay an additional $20.00 towards City health insurance coverage for Fire Uilit employees, for a total monthly contribution of $300.60. . Compensatory.Time (CTO) Fire Unit employees may accrue a maximum of 72 CTO hours. Employees may buy out up to 48 hours CTO upon reaching their maximum accrual two times per fiscal year, at the 56 hour rate. .'.i. ?_ERS Sick Leave Conversion . 10. 11. Fi~'e Unit members will continue to accrue sick leave at tile rate of 24 hours per rnon!ll. Upon reliren~nt, llle City shall divide lhe total accrued sick leave hours by two (~o arrive at the equivalent of 12-hours/month accrual) for purposes of reporting fin~.)l sick leave credit to PERS. In exchange for the agreement to convert their final sick leave accrual to tile equivalent of 12-houm per month upon retirement, tile City shall Ir)ay an additional 2% base salary (The PERS Actuary has stated this would otherwise have been a 3% cost to the City upon each retirement). E.M.T.-1 Incentive Tile C;ity agrees to a $100.00 per month EMT-1 Incentive Pay for tile two firefighters hired prior to implementation of the EM-r-1 hiring prerequisite. Paramedic Stipend Tile Cily and tile Unit agree Paramedic specialty pay shall be increased from $275.00 to $300.00 per montt) for Unit members holding a Paramedic license. Preceptor Program The City and life Unit agree that a Paramedic Preceptor fee will be charged to Paramedic Interns to recupe the costs of training at file tale of $150.00 per i:)a~;.~l~dic intef~L l"l'le Preceptor shall receive $100.00 of lhis fee upon conclusion of II~e i~lef~ship, and tile ~emaining $50.00 will be relai~ed by tl~e City of Ukiah for administrative costs. PERS Military Buy Back Provision The City will amend tile PERS contract to include a military buy back provision. C.__qn_tinuation The Cily and the Unit agree that all conditions of employment established by City policy, including all conditions affecting wages, hours, and working conditions tllat are ~l~.)t specifically addressed in this Memorandum of Understanding shall continue in effect and shall not be affected by the terries of this Memorandum of Un<:le~ slanding. 1he value or availabilily of the benefits provided in tile Memorandum of Un(le~sla~iding as originally worded or as amended from time to time may depend on llloir tax treatment by tile state or federal government or the decisions of other gov(?~ll'ne~t agencies or departments, sucll as, but not limited to, the Public Enil)lr,~yees Reti~eme~lt Syslem. The City will e~ldeavor lo oblain file most favorable treal~ent legally possible from these other governmental entities. However, tile Cily f~akes l~o lelueselllation co~lcerni~g file valuo of sucl~ benefits to lllr~ll~l)oIS or II(.)W II,ay will be taxed or oilier'wise I~eal. o(I I..)y oll~er age~cios or (.l~.~l~;,~l~r~ls. '! I~e Cily's ol)ligalions u~Mer II,is Men~o~a~Mtu~ of Underslandi~g a~e li~]~il,~l Io II~e di~ecl cost of providi~g ll~e salaw a~.l be~elits as described in tl~e Mo~,,~a~l(lum of U~]de~slanding. -fl~e Cily shall I~ave ~o additional fi~]a~cial obli¢~;~lio~, eve~ if ll~o lax or other Irea(~ent of sucl~ salaw or benefits by otl~er agr~;ios or del~arl~e~]ls ~educes or elinlinales llleir value 1o II~e en~ployee. Cily will n~eet and conifer witl~ tl~e Fire U~lil regarding tl~e i~npact upon salary and -ll]is Men~orandum is ratiliod and adopled pursuant to tl~e ~eco~nmendalions of lt~e foll,'.,~wil~g ~;l)rese~datives II,is 21st day of___Apdl , '1999. cl'rY OF UKIAI I Cily Manager 3 f IOUIFIRE98 FIRE UNIT Ricl~ard Reed Labor Co~sulta~t CONFIDENTIAL MEMORANDUM DATE: FROM: TO: SUBJECT: July 1, 1999 Candace Horsley, City Manager Honorable Mayor Mastin and Members of City Council Item 12b - Conference with Labor Negotiator- Police Unit I will be meeting with the Police Unit representatives next week to begin our negotiations and would like to meet with the Council to gain perspective and guidelines for the negotiation sessions. We are completing a salary survey that I will present in Closed Session as part of the information for your consideration. The Unit has indicated they have two main priorities. One is salary and the second being a trust fund for retirees health. CH:ky 4:Can:M¢C197 CONFIDENTIAL MEMORANDUM DATE: FROM: TO: SUBJECT: July 1, 1999 Candace Horsley, City Manager ~ Honorable Mayor Mastin and Members of City Council Item 12d - Conference with Legal Counsel Regarding Settlement with Gary Akerstrom After the initial meeting between the attorneys and our Closed Session item with the Council, Mayor Jim Mastin and I met with Gary Akerstrom to discuss the Council's direction from the Closed Session meeting. Gary backed down on most of his additional requests and has agreed to a package with total dollars being within $5,000 of our original verbal agreement. The draft settlement agreement is enclosed for your review. City Attorney Dave Rapport has not had a chance to review this as of the writing of this item, as he does not get back from his three-week vacation until Sunday. I have several concerns and will be meeting with him on Monday, July 4, to go over the agreement and we will then be contacting Gary Akerstrom's attorney to clarify questions that we may have. We will be discussing this settlement agreement in more detail with the Council in Closed Session. CH:ky 4:Can:MCC198 333 BUSH STREET SAN FRANCISCO CALIFORNIA 94104-2878 TELEPHONE: (415) 772-6000 FACSIMILE: (415) 772-6268 KENNETH B, FINNE¥ (415) 772-6817 kf'umey@hewm.com HELLER EHRMAN WHITE & MCAULIFFE ATTORNEYS A PARTNERSHIP OF PROFESSIONAL CORPORATIONS June 28, 1999 Via Facsimile and U.S. Mail Scott Johnson, Esq. Rapport & Johnson P.O. Box 488 Ukiah, CA 95482 9 1999 Re: Draft Settlement Agreement between Redwood Business Park and the City of Ukiah Dear Scott: SAN FRANCISCO Los ANGELES PALO ALTO SEATTLE PORTLAND tACOMA ANCHORAGE WASHINGTON, D.C. HONG KONG SINGAPORE 22814-0003 Enclosed please find a redlined version and a clean copy of the current draft Settlement Agreement between the City and Redwood Business Park. It is our belief that the attached draft reflects the terms of the tentative agreement reached between the City and Redwood Business Park in two days of negotiations on June 11 and June 16. I have also enclosed a third document that sets forth the basis of the identification of the Assessor's Parcels that would be released from payment of the Capital Improvement Fee pursuant to paragraph l(a)(1) of the draft Agreement. After you have had a chance to review the attached documents, please give me a call. My hope is to have the draft Agreement in shape for a final review by David upon his return in early July. It is my belief that the Ci.ty_is_hop__'mgJx~r>resentlhis_dmft Agreement to the City Council for its approval at the City Council Hearing scheduled fOr-- July 7. That schedule would require Candace placing the consideration of the Agreement on the agenda no later than Friday, July 2. You, of course, will want to be in contact with Candace regarding the scheduling and substance of the proposed Agreement. Thank you for your assistance with this matter. Enclosure cc' Gary Akerstrom (xv/encls.) Yours truly, Kenneth B. Finney / /' AGREEMENT REGARDING EASEMENT CLAIMS This Agreement is made and entered in Ukiah, California on -~ July __, 1999 by and between Redwood Business Park of Ukiah ("Redwood"), a Califomia limited partnership, and the City of Ukiah ("City"), a general law municipal corporation. Collectively, the City and Redwood will be referred to herein as "the Parties." The parties hereby agree as follows: 1. City and Redwood obligations upon sale and purchase of parcels. Upon satisfaction of the/'"Condition Preceden/;" that Redwood sell to Ken Fowler Motors (Fowler), and Fowler purchase and take title to, Mendocino County Assessor Parcel Numbers 180-08~ 58,-59,-64,-65,-66 and-67 within the Redwood Business Park (the "Dealer Parcels"), which are defined for the purposes of this Agreement in the attached Exhibit A: a. the City shall: (1) a forever release _A from payment of any capital improvement fee that is imposed by a resolution of the Ukiah City Council adopting fees for off-site traffic mitigation with respect to the Airport Industrial Park (the "Capital Improvement Fee" or "CIF") the following-A Mendocino Parcel Nos; a 180-070-24,-25,- 26-, ^ -27,-29; and, - ^ 180-080-19,-22,-25, -- ^ 26,-28.-29,-51. ..... -53.-55.-58.-59.-63,- 64, -65, -66. and -67: provided, however, that if any parcel released fi'om pa~vrnent pursuant to this subpara~aph is rezoned by the Ci~, that parcel shall be obligated to pay any increase between the CIF applicable to the parcel under its zonin~ designation as of effective date of this A~eement and the fee it would be obligated to pay under a new CIF for any new zonin~ desi~gnation for the parcel. [By way of example: The terms of this A~eement release Parcel No. 180-080-28 from the obligation to pay the CIF applicable to the Parcel under its current "Industrial" zoning. If that Parcel is rezoned by the Ci~ at some future date from its current zonin~ desi.maation of"Industrial" ~9 a new~ ..1 _ __' UC:~l~lXiatlioi~ yr. fG, .1- "n..,..:l" k~,a, aill?lU, l\Utall,the owner of that r, .... , ......,~, ~..- ,.,k,;~..,~.~ ,,.~ this A~eement to pay any increase between the CIF for the Parcel when it was zoned Industrial and the fee imposed by a new CIF for the Parcel after it has been rezoned Retail,] (2) a forever release Redwood from payment of any and all money owed by Redwood under RDA/REDWOOD: AIRPORT PARK BOULEVARD PROJECT AGREEMENT, entered on August 30,1996; (3) by no later than -~ days following the satisfaction of the Condition Precedent set forth in Para~aph 1 above, adopt a resolution pursuant to Streets and Highways Code Section 1806 accepting Airport Park Boulevard, from the south boundary of Mendocino County Assessor's Parcel No. 180-080-44 ("Friedman Brothers' Parcel") to its intersection with Talmage Road into the City maintained street system; (4) _a by no later than days following the satisfaction of the Condition Precedent set forth in Para~aph 1 above, abandon the cul de sac easement shown as "ROAD B" on Parcel Map MS 97-07-~, which mar> is attached to A~eement as Exhibit B; and_.~_ (5) -~ initiate proceedin~es to modify, the use designation on Mendocino County Assessor Parcel No. 180-070-24, -25, -26, -27, -28 and-29 from "Professional Offices" to "Professional Offices and Retail Commercial" as described in the Final Subsequent EIR for Redwood Business Park and Aimort Business Park and as shown in the Traffic Mitigation portion of the CIF Report. b. Redwood shall: (1) arrange for the dismissal of its appeal in Business Park v. City. ofUkiah, Mendocino County Superior Court Case No. 77507, First District Court of Appeal, No. AO82941 ("Action 1") which shall be effective as of the date the City satisfies its obligations set forth in subparagraph l(a)(3) above. 2. City's and Redwood's Release and Hold Harmless Agreement with Respect to Airport Park Boulevard. Upon the City's satisfaction of its obligations under subparagraph l(a)(3) above, the City and Redwood shall be bound by the releases set forth in subparagraph 2(a) and 2(b) below. a. The City hereby agrees to release and hold harmless Redwood and its general and limited partners, its officers, agents and employees and its successors and assigns from any liability, cost or obligation arising out the design or construction of thr~¢o~.v.~ ~ vnc~rticm~ r~f A ir'port. Park ............. lqcmlevard that have~ been_ _ _ built a.q of the date of this Agreement. It will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause of action of any nature whatsoever hereby released. The City has considered the possibility that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, intends to assume the risk that it is releasing such unknown claims. The City agrees that this Agreement is a full and final release of any and all such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides- A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon the City's successors and assigns. b. Redwood ~ its general and limited partners, hereby waive and release the City, and its officers, agents and employees from any liability, cost or obligation arising out of the City's acts or omissions as alleged in the Action 1 or the City's position that it had not accepted maintenance responsibility for Airport Park Boulevard. They will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause of action of any nature whatsoever hereby released. Redwood has considered the possibility that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, intends to assume the risk that it is releasing such unknown claims. Redwood agrees that this Agreement is a full and final release of any and all such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon Redwood's successors and assigns. 3. Redwood obligations upon adoption of-~ P_r.0_p9..~ Capital Improvement Fees. Provided the City Council approves the CIF as set forth in the proposed revisions to the CIF currently in effect, which revised -~ CIF (the "Proposed · ~ attached hereto as Exhibit -~ C and incorporated herein by this reference: a. Redwood shall dismiss with prejudice the action entitled: ~ Business Park v. City_ ofUkiah, Mendocino County Superior Court Case No. 77252 (;~Action 2"); b. Redwood and its general and limited partners shall waive and release the City, and its officers, agents and employees from any liability, cost or obligation arising out of the City's acts or omissions as alleged in Action 2 or the City's adoption of the CIF challenged in Action 2. They will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause of action of any nature whatsoever hereby released. Redwood has considered the possibility that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, intends to assume the risk that it is releasing such unknown claims. Redwood agrees that this Agreement is a full and final release of any and all such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon Redwood's successors and assigns. 4. Application of laws. The interpretation and enforcement of this Agreement shall be governed by the laws of the State of California and the Parties agree to jurisdiction and venue in the courts of Mendocino County. 5. Attorney's Fees and Costs. If any action at law or in equity shall be brought to enforce any the terms of this Agreement, the prevailing party shall be entitled to recover from the other party reasonable attorney's fees and costs of litigation as determined by the court. 6. Integration. This Agreement contains the entire agreement among the Parties, except with reference io agreements specifically identified herein and supersedes all prior and contemporaneous oral and written agreements, understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties. 7. Waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 8. Notices. Whenever notice, payment or other communication is required or permitted under this Agreement it shall be deemed to have been given when personally de!i?.red or when deposited in the United States mail with proper first class postage affixed thereto and addressed as follows: REDWOOD UKIAH Gary Akerstrom Redwood Business Park of Ukiah 425 Talmage Ave Ukiah, CA. 95482 C/O Candace Horsley, City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, California 95482 9. Paragraph Headings. The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of' this agreement. 10. Duplicate Originals. This Agreement 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' the Agreement between the parties. WHEREFORE, the parties have entered this Agreement on the date first written above. REDWOOD BUSINESS PARK OF UKIAH -~ A California Limited Partnership By E1 Dorado Estates, Inc., Its General Partner Bv.' Gary L. Akerstrom · CITY OF UKIAH By: Its 273676.04 .SF ~45V6404'!.DOC) 06/28/99 10:03 AM AGREEMENT REGARDING EASEMENT CLAIMS This Agreement is made and entered in Ukiah, California on July ~, 1999 by and between Redwood Business Park of Ukiah ("Redwood"), a California limited partnership, and the City of Ukiah ("City"), a general law municipal corporation. Collectively, the City and Redwood will be referred to herein as "the Parties." The parties hereby agree as follows: 1. City and Redwood obligations upon sale and purchase of parcels. Upon satisfaction of the "Condition Precedent" that Redwood sell to Ken Fowler Motors (Fowler), and Fowler purchase and take title to, Mendocino County Assessor Parcel Numbers 180-08-58,-59, -64, -65, -66 and-67 within the Redwood Business Park (the "Dealer Parcels"), which are defined for the purposes of this Agreement in the attached Exhibit A: a. the City shall: (1) forever release from payment of any capital improvement fee that is imposed by a resolution of the Ukiah City Council adopting fees for off-site traffic mitigation with respect to the Airport Industrial Park (the "Capital Improvement Fee" or "CIF") the following Mendocino Parcel Nos; 180-070-24, -25, -26, -27, -29; and, ! 80-080-19, -22, -25, -26, -28, -29, -51, -53, -55, -58, -59, -63, -64, -65, -66, and - 67; pr.ovided, however, that if any parcel released from payment pursuant to this subparagraph is rezoned by the City, that parcel shall be obligated to pay any increase between the CIF applicable to the parcel under its zoning designation as of effective date of this Agreement and the fee it would be obligated to pay under a new CIF for any new zoning designation for the parcel. [By way of example: The terms of this Agreement release Parcel No. 180-080-28 from the obligation to pay the CIF applicable to the Parcel under its current "Industrial" zoning. If that Parcel is rezoned by the City at some future date from its current zoning designation of"Industrial" to a new designation of, for example, "Retail." the owner of that Parce! would be obligated under this Agreement to pay any increase between the CIF for the Parcel when it was zoned Industrial and the fee imposed by a new CIF for the Parcel after it has been rezoned Retail.] (2) forever release Redwood from payment of any and all money owed by Redwood under RDA/REDWOOD: AIRPORT PARK BOULEVARD PROJECT AGREEMENT, entered on August 30,1996; (3) by no later than days following the satisfaction of the Condition Precedent set forth in Paragraph 1 above, adopt a resolution pursuant to Streets and Highways Code Section 1806 accepting Airport Park Boulevard, from the south boundary of Mendocino County Assessor's Parcel No. 180-080-44 ("Friedman Brothers' Parcel") to its intersection with Talmage Road into the City maintained street system; (4) by no later than days following the satisfaction of the Condition Precedent set forth in Paragraph 1 above, abandon the cul de sac easement shown as "ROAD B" on Parcel Map MS 97-07, which map is attached to Agreement as Exhibit B; and, (5) initiate proceedings to modify the use designation on Mendocino County Assessor Parcel No. 180-070-24, -25, -26, -27, -28 and-29 from "Professional Offices" to "Professional Offices and Retail Commercial" as described in the ' and as shown in the Traffic Mitigation portion of the CIF Report. b. Redwood shall: (1) arrange for the dismissal of its appeal in Business Park v. Ci_ty ofUkiah, Mendocino County Superior Court Case No. 77507, First District Court of Appeal, No. AO82941 ("Action 1") which shall be effective as of the date the City satisfies its obligations set forth in subparagraph l(a)(3) above. 2. City's and Redwood's Release and Hold Harmless Agreement with Respect to Airport Park Boulevard. Upon the City's satisfaction of its obligations under subparagraph l(a)(3) above, the City and Redwood shall be bound by the releases set forth in subparagraph 2(a) and 2(b) below. a. The City hereby agrees to release and hold harmless Redwood and its general and limited partners, its officers, agents and employees and its successors and assigns from any liability, cost or obligation arising out the design or construction of those portions of Airport Park Boulevard that have been built as of the date of this Agreement. It will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause of action of any nature whatsoever hereby released. The City has considered the possibility that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, ii'tends to assume the risk that it is releasing such unknown claims. The City agrees that this Agreement is a full and final release of any and all such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon the City's successors and assigns. b. Redwood and its general and limited parmers, hereby waive and release the City, and its officers, agents and employees from any liability, cost or obligation arising out of the City's acts or omissions as alleged in the Action 1 or the £ ity's position that it had not accepted maintenance responsibility for Airport Park Boulevard. They will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause of action of any nature whatsoever hereby released. Redwood has considered the possibility that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, intends to assume the risk that it is releasing such unknown claims. Redwood agrees that this Agreement is a full and final release of any and all such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon Redwood's successors and assigns. 3. Redwood obligations upon adoption of Proposes Capital Improvement Fees. Provided the City Council approves the CIF as set forth in the pcoposed revisions to the CIF currently in effect, which revised CIF (the "Proposed CIF") is attached hereto as Exhibit C and incorporated herein by this reference: a. Redwood shall dismiss with prejudice the action entitled: Redwood Business Park v. City ofUkiah, Mendocino County Superior Court Case No. 77252 (::Action 2"); - __ b. Redwood and its general and limited partners shall waive and release the City, and its officers, agents and employees from any liability, cost or obligation arising out of the City's acts or omissions as alleged in Action 2 or the City's adoption of the CIF challenged in Action 2. They will never commence or prosecute, or assist in any way in the commencement or prosecution of any claim, demand, or cause action of any nature whatsoever hereby released. Redwood has considered the possibilitx that it may not now fully know the number or magnitude of all the claims hereby released, but, nevertheless, intends to assume the risk that it is releasing such unknoxvn claims. Redwood agrees that this Agreement is a full and final release of any and ail such claims, and expressly waives, as to such claims, the benefits of Sections 1542 of the California Civil Code, which provides: A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor. This release shall be binding upon Redwood's successors and assigns. 4. Application of laws. The interpretation and enforcement of this Agreement shall be governed by the laws of the State of California and the Parties agree to jurisdiction and venue in the courts of Mendocino County. 5. Attorney's Fees and Costs. If any action at law or in equity shall be brought to enforce any the terms of this Agreement, the prevailing party shall be entitled to reco,~er from the other party reasonable attorney's fees .and costs of litigation as determined by the court. 6. Integration. This Agreement contains the entire agreement among the Parties, except with reference to agreements specifically identified herein and supersedes all prior and contemporaneous oral and written agreements, understandings, and representations among the parties. No amendments to this Agreement shall be binding unless executed in writing by all of the parties. 7. Waiver. No waiver of any of the provisions of this Agreement shall be deemed, or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 8. Notices. Whenever notice, payment or other communication is required or permitted under this Agreement it shall be deemed to have been given when personally delivered or when deposited in the United States mail with proper first class postage affixed thereto and addressed as follows: ~ REDWOOD UKIAH Gary Akerstrom Redwood Business Park of Ukiah 425 Talmage Ave Ukiah, CA. 95482 C/O Candace Horsley, City Manager Ukiah Civic Center 300 Seminary Ave. Ukiah, California 95482 9. Paragraph Headings. The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this agreement. 10. Duplicate Originals. This Agreement 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 the Agreement between the parties. WHEREFORE, the parties have entered this Agreement on the date first written above. REDWOOD BUSINESS PARK OF UKIAH, A California Limited Partnership By El Dorado Estates, Inc., Its General Partner By: Gary L. Akerstrom CITY OF UKIAH By: Its 2. 3676.04 .SF (5V6404!.DOC) 06/28/99 10:03 AM ATTACHMENT "J" Proposed Fee Revision Ct TY OF UKIAH I '=' '" ~0MMAR~ OF CAPITAL IMPROVEMENT FEES BY PARCEL NUMBER-,~IRPORJT INDUSTRIAL PARK -- - Lot ! /~s~essor's Proposed C~rrent . IO t Parcel No. Land' bSe Acreage t Fee F~ NO. ' --- -~ 180--070-40 Jack I~'The 1~3x Restaurant d,65 $ ~L 0.3 ]-9. ,58 $22,6~2.I2 SU~--'~OTAL (~AST FOOl) RESTAI~ANT) 0.65 $10,319.58 $22,662.12 41_ 180-070-39 Sh~ll Statien/Mini-Mart 0.74 $18,395.78 $40,4.99.39 t .... SUe~OTAL (~AS S~^T~O.ZM~m-~ARD 0.74 2 t 1E~-070-01 Talrr~e P~-.--,.~al Center : 0.00 "$0.00 $0.00 _3 180~0~0-0~ Tatma~C=,:~__~P_ar~ . 0~00' $0.00 ~'.00 [.. 4 180-070.03 No,~;, ~'-~ Wood 0.00 __$0-00 " $0.00~ 6 ' 1'~0-070-29 ---. Nmi;, ~u,ties Enl~ine~ring 0.00 _~ $0.00 $1!~,9~2.72 ._ 7 t 180'O70'28 Office/Retail ~.53 $6.409.8[ $11,240.:~3 8 . 180.070.27 -- R~lwood Coast Rte~ional Cente~' 0.00 ~, - ~ $0.00 ' E0.00 · ~o I ~o-oz'o-26 - o"i~e~, 1.21 ~ 180.070.25 -- I ~etail 1.09 )~ ~4,566.47 $8,007.67 11 --i _ i 180-070-24 -~ [ O~-~tail 1.02 ~ $4,273.21 $7,493.~2 _~__.~.~___: __~ S U BTOTAI.-(O~-~CE./R~_i I AIIL) 4.85 ~0 180-0~0--~ Walmart .~istinll~) 0.00 - $0.00 $0.00 ! 2 j 180-O80-41 __ Re~il .... 1.00 $~t,870.80 $10.702.92 __13 j 180.O8d-53 ~ Relm~ 1.88 ,~ $9,157.11 $2'0,'1'21,49 ,--1¢ i 180-080-54 La.Z-Boy Fm'mture Galleries 1.28 _ _ $6,234.63 $13.699.74 15 ! 180-080-55 -- Rc--~l 1.06 % $5,163.05 $11,345.09 '16 180.080.52 Staples Offme Superstore 2.18 $10,618.35 $23.332.36 26 180-~0-51 --- Food-4,l. ess 5.04 ~ $24,548-85 $53,~42.71 27 I80-.080.~145 Friedman, Etr°thers 10.51__ _ $51,192.14 $112.4~7.67 5 180-070-38 [ Waimart (E~pansion) .. 2.52 $12,274.42 $26,971.35 S U BTOTAI. '(REi'A__IL). 25.47__ $,]24,O59_36 $272,603.32 !. . 17 1B0:(~0-16 Industrial ?-9~ $4,770.52 $10,552.32 18 180:O80.25 .-. Im~l~strial 3.54 %~ $5,705.28 $12,620.01 ..19 180-0~0.26 _ vaca~ l~iidin~ '" 0.00 X $0.00 $O.00 20 ........ 180-080~19. . -- In_0~__tdat... 1.00' :~( $1,611.6~ $3,564.9'~ 21 180-OE~-:Z2 -- Ir~,~al ?-23 ~ $3,594.O1 $7,949.89 22 180-080-27 I~ial 4:49 $7~236.36 23 180-O80.2_8 - I~tdal .. 4.~9 X $7,397,53_, _ $.[6.363.23 _ 24 ...... 180.OE~-29 -- Indust~al--- 4.60 X $7,413.64 $16,398.8~ .... . ....... ~ _~3_._ _c~-,n P~ ~ q R:,~ _26 29 180.110-07 Me,',:l~ Brewing 9.Ob -$14'504'c~5 i $32.084.77 30 ]80.'i 10-02,06 Industrial " 8.78 $14.150.39j $50..~86.99 3~ 180.120.04 ~ ~ _nd,ntt_ ia~ 5.8O $9,34f.64 t 'S20,-6~6.85 _32-- . . . 184-080-0! ' Industrial ],-20 $1,933.99 I $4,277.97 i SU~iOTAL (INDU$iI~IAL) 53.18 $86,626.83 I 1210,903.89 34 i 180-080-64.65 ~ - Auto ~ip .... 1.62 ~ ~ $5,573.06[ current 3~'-~ 180.-080-6;~3~ Auto Deater~ip 1.80 36 i 180-080.60,6'1 Auto ~arts/Auto Care 1.84 ~ $9,678.46t- lists 37--i --- ~80-d80-59 -- Auto Dea~ip 2.09 X, $7.189.941 this 38t 180-080.58 - A~to Dealership 2.18 ~ $7.499.55 I - - as 40 1 ]80-080-56 Auto Part,Auto Care 2 ?-~ $! ! ,729.87 J percel. SU~i-OTAL (AUTO DF-~LE. RSHI~/AUTO PA.~Y~AUTO CARE)' 15.$1 $60.763.77 $239;774.O8 Date aod T'mae Printed: 6/1/99 at 9.42 AM Fi]c~: P~otx~'~dCIFS-99-Fce_s-Art-[.l _ development will not cxr.,c~ thc total of ~es¢ costs. 2 3 4 5 6 7 NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Ukiah that: 1. Airport Industrial Park Capital Improvement Fees shall be charged upon and paid prior to the issuance of any tmrmit for all new development in the Airport Industrial Park depicted and described on the map attached hereto as Attachment 8 9 10, I1 12 13 14 'A' of Exhibit 'A' except as otherwise specifically provided, in Ukiah City Code Section 9~43. For new development under construction, Capital Improvement Fees shall be charged upon and paid prior to the occupancy of said new development in the Airport Industrial Park. No certificate of occupancy or permit, as appropriate, shall be issued until the required fees are paid. *Permit', "Inspections', and 'Certificate of Occupancy", 15 as used in this Section, have the same meaning and application as described in 16 17 18 19 2O 21 22 23 24 25 26 ,, Sections 106, 108, and 109, respectively, of the currently adopted edition of the Uniform Building Code, International Conference of Building Officials. _E~. The fees for constructing the off-site capital improvements are identified · L on Attachment "I" of'Exhibit 'A'. The fees per acre of developable land based on proposed Iand use are as follows: Fast Food Restaurant $34,864.79; Gas Station/Mini-Mart $54,728.91; OfficefRetail $7,346.49; Retail $10,702.92; Industrial $3,564.97; Auto Dealership $7,554.63; and Auto ParL~lAuto Care $11,510.69. These fee rates are based on the future value of capital ::ez'zted to construct the identified improvements five (ii) years from the date of adoption of this resolution. IThe amount of fee due for each parcel to be dex eloped shall be discounted to its present value at the time payment is made ~,:sc~d on an annual interest rate of 5.25 %, and the time remaining in full qua,qer :r. crement: :- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2O 23 24 25 !11 26 2711'/// 2811111 Ill/ 4, 6, 7. of a year of the five (5) year period. _Uae.of Fee. The fee shall be used solely to pay (1) for the described public facilities to be constructed by the City; (2) for reimbursing the City for the development's fair share of those capital improvements already constructed by the City; or (3) to reimburse other developers who have constructed public facilities described in Exhibit "A" attached hereto, where those facilitiez were beyond that needed to' mitigate the impacts of the other developer's project or projects. Fee Review. If any fees collected pursuant to this r~olution remain unexpended five (5) year~ after collecting any such fees, the City shall review the fees if aacl as required by Government Code Section 66001 (d) or any amendments thereto. If some, but not all, fees collected pursuant to this resolution are expended ,-~ authorized herein, it shall be conclusively presumed that the fees first received are the fees first expended. Filing a Prot0st. The 90 day period for filing a protest pursuant to Government Code Section 660020(a) begins on the date this resolution is adopted by the City r- Council. ludic/al acti[o, to_ l~hi_s R__~o~lution. The time limits provided in Government Code Section 660020 for filing an action or proceeding to attack, review, set aside, void or annul the fees imposed by this resolution apply. The fees shall become effective on and after July 7, I997. 06~25~99 REDWOOD BUSINESS PARK 'PROPOSED C.I,F. [.OT ID PROPOSED FEE DUE'IN 5 YEARS #11 180-70-24 $4,273.21 #10 180-70-25 $4,566.47 #9 180-70-26 $5,069.20 ~ 180-70-27 $0.00 ~ 180-70-29 $0.00 #20 #21 #18 #19 #23 #24 #25 #26 #13 #15 #38 #37 #34 #33 #35 (Pot) 180-080-19 180-080-22 180-O80-25 180-O80-26 180-080-28 180-080-29 180-080-30 180-O80-51 180-080-53 180-080-55 180-080-58 180-080-59 180-080-64 & 180-08O-66 & 180-080-63 65 67 $1,611.66 $3,594.01 $5,705.28 $0.00 $7 397.53 $7.413.64 $8.960.84 $24.548.85 $9 157.11 $5.163.05 $7 499.55 $7 189.94 $5.573.06 $5 745.07 $3,096,15 $116,564.62 X 0.7743 = $90,255.99 Discount Rate for 5 Years ~ 5.25% Per Resolution 97-70 = I I = 0.7743 (1.0525)~ 1.2915 ·