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2005-08-17 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 August 17, 2005 5:00 p.m. '5:00- 5:30 p.m.: INTERVIEWS OF APPLICANTS FOR THE PARKS, RECREATION, AND GOLF COMMISSION 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PRESENTATION a. Presentation of Audio and Video Recording Software 4. APPROVAL OF MINUTES a. Joint Meeting of the City Council & UVSD - July 14, 2005 b. Regular Meeting of July 20, 2005 c. Regular Meeting Minutes of May 18, 2005 5. RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City's Boards and Agencies may be judicially challenged. 6. CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Approval of Disbursements for Month of July 2005 b. Notification of Bid to AIIstar Fire Equipment In The Amount of $5,727.15 for the Purchase of 24 Lengths of Fire Hose c. Notification to Council Regarding the Award of Bid to WIPF Construction For Boring and Installation of Conduit at the City of Ukiah Municipal Golf Course d. Notification of Emergency Purchase of a 500 GPM Goulds Pump And Motor From Groundwater Pump And Well to Replace the City's Pump at Well #3 for $ 30,904.81 e. Approval of Amendment No. 1 to Professional Services Agreement with Merritt Smith Consulting for Mixing Zone Policy Development Process Representation Services f. Award of Contract to California Pavement Maintenance Company, Inc. for Slurry Seal of Aprons at the Ukiah Regional Airport in the Amount of $19,909.95 g. Award Contract to Granite Construction Co. for Pavement Rehabilitation and Traffic Signal Loop Replacement, Specification Number 05-07 in the Amount of $198,568 and Approve Budget Amendment in the Amount of $70,000 h. Award of Contract to Traffic Limited for Street Striping 2005, Specification Number 05-06 in the Amount of $19,926.55 i. Notification Of Bid Award To Foxcroft Equipment And Services In TheAmount Of $5,148.00 Plus Freight To Purchase Two Chlorine Gas Detectors j. Award of Bid to Tomark Sports for the Purchase of Bleachers for the Ukiah Softball Complex in an Amount of $17,544 k. Adoption of an Ordinance to Change the Zoning District For the Lands Designated As Assessor Parcel No. APN 001-430-35 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. 8.PUBLIC HEARING (6:45 P.M.) a. Adoption of Resolutions Approving of Major Subdivision No. 05-17 and Major Site Development Permit 05-13 9. UN a. b, FINISHED BUSINESS Award of Sole Source Bid to Mallory Fire Equipment In The Amount of $151,207.36 For The Purchase of Replacement Firefighter Breathing Apparatus A Resolution of the City Council of the City of Ukiah Approving The Bond Sale and Financing Plan Anticipated in Prior Council Action Auithorizing Certain Capital Improvements to the City of Ukiah Water Treatment Plant and Authorizing the City Manager to Execute Required Documents 10. NEW BUSINESS a. Discussion of Possible Improvements to Alex R. Thomas Plaza Upgrades b. Adoption of Resolution Making Appointments to the Parks, Recreation, and Golf Commission 11. COUNCIL REPORTS 12. CITY MANAGER/CITY CLERK REPORTS 13. CLOSED SESSION a. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Government Code Section 54956.9 (one case) 14. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 11th day of August, 2005. Marie Ulvila, City Clerk The City of Ukiah complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. APPLICANT INTERVIEW TIME SCHEDULE FOR PARKS, RECREATION, AND GOLF COMMISSION INTERVIEW DATE: AUGUST 17:2005 PARKS, RECREATION, AND GOLF COMMISSION 5:00-5:10 Don Rones, Sr. 717 Live Oak Avenue 5:10-5:20 Julie Dunn 665 Live Oak Avenue 5:20-5:30 John Graft 417 W. Mill Street 5:30-6:00 Break for dinner Michael Kisslinger on vacation 842 Cypress Avenue Commsn: Application Interview Time Schedule- August 21,2005 ITEM NO. 3a DATE: Auqust 17, 2005 AGENDA SUMMARY REPORT SUBJECT: PRESENTATION OF AUDIO AND VIDEO RECORDING SOFTWARE With Council's approval, staff is in the process of replacing the City Clerk's malfunctioning recording equipment. Staff will conduct a brief demonstration of the new audio and video recording software that will be used to capture Council and Commission meetings. The demonstration will include the playback of a sample recording to illustrate the features and benefits of the final product that will be available to the public. RECOMMENDED ACTION: 1. City Council to receive presentation. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A N/A Sage Sangiacomo, Community/General Services Director Marie Ulvila, City Clerk, Paulette Klingbeil, MIS Coordinator, and Candace Horsley, City Manager None APPROVED: "da"ce o sley, City Mana'~ MINUTES OF THE UKIAH CITY COUNCIL Special Joint Meeting of the Ukiah City Council And Ukiah Valley Sanitation District Thursday, July 14, 2005 The Ukiah City Council met at a Special Joint Meeting with the Ukiah Valley Sanitation District (UVSD) on July 14, 2005, the notice for which had been legally noticed and posted, at 4:00 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Crane, McCowen, Rodi Ashiku. Staff present: City Manager Horsley, Utilities Director Ziemianek, and Recording Sanitation District Board Members present: Delbar. Absent: Board member Wattenburg~ County Counsel Zotter, Deputy Clerk of the B, /District S Baldwin, and Mayor Rapport, Public y. Ukiah Valley ~nd Board Chairman ;ent: Chief Deputy try Rau. . SPECIAL MEETING OF THE AND THE BOARD OF SANITATION DISTRICT ACTION ON THE KI WASTEWATER Utilities Director Ziemianek Treatment Plant Construction proj~ joint meeting of the ity Co follows: FOR tiT PACll 'LANT an OF THE OF UKIAH THE UKI VALLEY AND POSSIBLE BID FOR THE TRUCTION PROJECT iew of the Wastewater ince the May 18, 2005, Sanitation District as Bids on the Treatment Const~ wa~ · Wells ultants to The cost plant wi: challeni · Because look into spi of the City's Waste Water Pacific Company and Slayden ic Company's bid was the lowest, it ge of the Engineer's Estimate. as sewer rate and bond issuance of the increased construction cost on ad attempting to balance the additional 'acceptable" rates for the citizens would be a difficult higher than estimated, a subcommittee was formed to formation relevant to the bid by considering the overall design elemen construction costs, and the cost of borrowing money. > The subcommittee/design engineers reviewed the associated costs and benefits of accepting or rejecting the Iow bid. > The subcommittee also considered the option of re-bidding the project and the potential effects associated with project delay and costs. :> The subcommittee considered the economic feasibility of cost reductions related to design and materials. The subcommittee recommends the City Council, in concurrence with the Sanitation District Board of Directors, reject all bids and plan for a re-bid Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 1 of 8 process. Staff was instructed to explore cost reducing modifications to the plans and specifications. Mr. Ziemianek corrected the staff report to state that the target date of December 2004 to re-bid the project should be 2005 with the bid opening scheduled for February 2006 rather than February 2005. Councilmember Rodin commented construction costs/materials would likely increase if the project were delayed and inquired concerning the degree the subcommittee considered whether a delay would be most cost effective approach. Mr. Ziemianek stated the subcommittee in considered the potential cost effects associate that market rate conditions are difficult to p~ also understands that the data rate construction industry for a specific )d will not be making purposes. of the project fully and understands ~e subcommittee for the ~r decision- Mayor Ashiku, participatin! subcommittee's project anal~ delaying the project, and explain given the timeline that has alrea together with the en( overall project ;rning th, member, addressed the ation of the risk factor in greater benefit in waiting construction cycle modifications to the Director chemical treatme considerE the with ne~ ry for efficie~ uired a,, the rial interim measures other than the He stated past discussions have le plant systems for the interim until d in terms ' ' g cost efficiency. His concern timeline is whether alternative/interim systems are the facility. Mr. Zi~ ~ek evaluated, the el( uch interim systems/facilities have not been fully ,nt of maintaining such systems is a consideration. There was operate effectiw concerning the viability of the plant being able to ~ould a decision be made to delay the improvements/update. Mr. Ziemianek commented that a delay would allow the City the opportunity "in- house" to thoroughly evaluate the existing and proposed new design elements/criteria. The process would be essentially a three-fold approach to include analysis of the engineering design, the City Council/District Board members/subcommittee/design engineer's recommendations relative to "value- engineering," and City staff's overall assessment. The information process and recommendations take time. Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 2 of 8 Director Delbar referred to the three possible solutions provided by Kiewit Pacific Company: 1. To delay the decision to reiect bids to allow the Council more time to find additional funding. 2. Ask for a 60-day extension on their bid to allow for value-engineering and design change options. 3. Award the contract to Kiewit Pacific and negotiate the value- engineering/scope of the project relative to potential cost reductions and terminate the contract if the City budget cannot be met. Director Delbar suggested Attorney Rapport furtht el legal ramifications/implications associated with choos on any potential of these options. Brad Kaufman/David Jack, Kiewit Pacific to their Power Point presentation, commente costs and delay factors: · Current treatment plant market and schedule · Statistical cost information materials as asphalt/cement/ · Statistical data pertinent comparison purposes. · Example of a city's timeline awarded to Kiewit · Information con( site work, ele, '~ · The three le ng/water Iow bi¢ the ,entatives, referred iopics relative to ponding treal plant work price indexes for such ~tc. Engineers Estimate for treatment plant als, systems, landscaping equipment necessary for the project. Gl P off ti price. the comment made by Kiewit it is likely th~'y could save between 10 or 15 percent Dave' fman de: reductio~ pany have the opportunity to demonstrate a Counl come in over th~ asked how the bid for Ukiah's project could have Estimate, which was assessed as reasonable. Mr. Kaufman stated he has not seen the details of the estimate and is not surprised that the engineering industries/companies typically support their estimates. Councilmember Baldwin commented it appears to be a contractor's market and inquired how this factor affects Kiewit's profit margin. Mr. Kaufman stated in past experience with six or seven bidders in competition, their profit margins bid would typically be 25 percent less. Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 3 of 8 Mayor Ashiku inquired whether Kiewit is familiar enough with Ukiah's plant that items proposed could be eliminated without substantially affecting the outcome in terms of the quality of the wastewater and discharge ability. Mr, Kaufrnan replied his company has a list of approximately 50 or 60 items that could be eliminated. Councilmember Baldwin questioned in terms of cost reduction of the 50/60 items, and whether the longevity and/or durability of e project would be affected. Mr. Kaufman stated the items referred to pert; techniques and alternate materials and would sl and longevity of the project and design. ernative construction the quality Councilmember Baldwin inquired wh, items that could be eliminated as a engineering consultant could not provide. is able to prow~ list of the ti' value- Mr. Kaufman commented ability to design effectively, but with a project. value-el consultants have the 1st perimeters associated Mayor Ashiku inq changes in de: neces~ ability to assess Mr. in iknowledge to recommend process/system should it be on etc., as opposed to just having the company the ability to modify construction City options, stated 0 requires ti works corruption and on the City's legal aspects concerning the 3 particularly has potential legal risks. State law ;e implemented for developing/awarding a city public nitude. The requirements are intended to prevent influence relative to the bidding process. State law requires that the is be put out in a prescribed manner where the lowest bid from a responsible bidder is accepted or, all bids are rejected and re-bid. State law is clear in that renegotiation of a change order before entering into a contract or to expect a contract be awarded with the implied understanding that it is not the project being awarded is not an option, since the project is to be significantly modified in order to get cost reductions after the award. However, there is a section of the Public Contract Code that allow "bid alternates/deductive bid alternates/additive bid alternates" to be conducted in the actual bid proposal so it becomes part of the written bid when the bid goes out. From a contract law standpoint, if an offer to bid a project, as designed, where the bidder in response Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 4 of 8 submits a proposal to build the project to the public agency's specifications and the public agency accepts that bid, they have explicitly agreed to build the project as bid. And, if the public agency enters into a post-bid negotiation process and the proposed design is not completely satisfactory, the public agency may not legally be able to terminate the contract. Mayor Ashiku inquired whether there are other risks involved from another contractor suing for improper bidding. City Attorney Rapport agreed that potential liability/risk potential for cause of action exist for another process to claim the public agency undermined the bi a contract at an unfair advantage. ,ctors, as well as the in the bidding process and awarded A general discussion followed regarding proposed options and with deferring the factors with the Councilmember Baldwin addressed and inquired regarding the potential for malfunction of the treatment if the sewer from a major spill or project were delayed. Mr. Ziemianek does not antici malfunction of the equipment/s' rnent' spill, but a detrimental Mayor Ashiku had the newly repa' functions/o potential risks an~ From his The nity bett, plant facility, including ,derstand how the equipment/system the concepts regarding if the project were delayed. ~ic events can only occur in a few mi be ma~ is ~e existing staff over the next 12 months can effectively present condition until the improvements can City Attorne~ ',ommented on other project legal issues, and stated if the contract ,rded, compliance with Proposition 218 is necessary. A notice of the heari concerning a sewer rate increase must be given to remain within the 90-day bid period to accept the bid. A scenario that would not be favorable would be if the bid is awarded, and notice is given to raise the rates assuming that the rates would be increased to the bid amount of $56,000,000. Because of the corresponding factors concerning the bid period, rate increase, and notice of hearing, and other procedural bid requirements, construction could not begin until the winter, and this would not be favorable. The primary focus for tonight's discussion is to address the time period for the Iow bid that has already run 45 days in order to comply with Proposition 218. Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 5 of 8 A Kiewit Pacific representative addressed Option 3, and understands the argument concerning the termination clause. However, he does not necessarily agree with the probability of the second bidders' ability to be able to strengthen their case and whether they would have recourse in the event Kiewit were awarded the contract where Kiewit potentially ends up with change orders that go down rather than up. A general discussion followed regarding the "out clause" option on the City's part and the associated concerns expressed from a legal standpoint, and whether an addendum or alternative agreement could be created th, strengthens/clarifies the "out clause" that Kiewit agrees to. Chief Deputy County Counsel Zotter commente~ contracts and potential causes of action with b~ contract issues basically pertain to offer and al issues regarding thereof. The legal City Attorney Rapport is not sure accept such an agreement if the City entitled to the contract as set forth in the such an agreement, but Kiewit not ne( risks lie in how the bidder stan( contra bidder's choice. would be le~ uired to to them, they are The City could ask for have to comply. The legal written. It is essentially the Mayor Ashiku to Option 3. available as alternate Councilm~ uired contractor in a po~ City a lawsuit Iher there is anyone other than the ~.Option 3 is chosen. occur, but it is unlikely. member M initiat~ it. whether a bidder could waive any right to City ged that this could happen. Mayor Ashiku ;nted that Option 2 would allow staff in-house and the subcommittee the to further review the design and determine what changes may be necessary/conducive to the project as opposed to Option 3 that has contract and/or other risk factors. Board Member Crane commented on the decision-making process, and stated the subcommittee reviewed certain criteria before looking at viable solutions. Cost is a component of the project criteria. Councilmember McCowen stated some allowance/thought can be given to redesigning the plant plans as the process moves forward at the concurrence of Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 6 of 8 the bid contractor. Option 3 rather implies that if a bid is awarded at the contact price, it carries a prearranged understanding that the bid agreement would be negotiated at a 10 or 15 percent reduction. Also, such a prearranged understanding implies that if the target budget reduction is not achieved, the City can walk away, which may have legal repercussions. Alternatively, the bid could be awarded to Kiewit with the understanding that a 60-day extension is part of the agreement for the purpose of exploring value-engineering options. He inquired if at the end of this time period, the City has the option of awarding the bid at the contract price with the hope that the contractor would work with the City as the process moves forward to achieve cost reducti~.s, and whether this approach is a legal option. City Attorney Rapport stated the above-referem be enforceable. would not likely Councilmember McCowen stated the m; a promise. The intent is to award the bi the City relevant to potential plan project moves forward. ;rtains to a hope that the cost ,rd rather than II work with as the City Attorney Rapport stated appeal, which is not likely enforc, of agre legal' could be construed as an A summary of the pr direction' ,llows prior to providing I . . . . . . Two bi~ at what ct COl within bidde~ ~emselves i ifications. the opt nsion nece~ Award thl changes ~e another. The other bidder may look that contributed to their bid reduced to eliminate those costs to make the bid higher, does this say, in effect, that lesser opportunity to make those same changes This matter may have potential legal of not rejecting the bid from Kiewit and request the 60- time to decide whether suitable changes are tct to Kiewit and hope to be able to negotiate necessary found. Language in the contract provisions allow for negotiating change orders. Consider Proposition 218 noticing issue concerning the 60-day extension option in conjunction with the 45-day time period that has already run. Allow time for legal staff to evaluate options concerning the two bidders. Consider all risks involved concerning the bids and project needs relevant to making an appropriate decision. Review value-engineering proposals made by design consultant in terms of cost reductions and whether the results were realistic. Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 7 of 8 , . Consider all change orders and potential cost overruns and meet in 20/30 days. Consider the tight time line for construction schedule and project phasing. It was the consensus of the Ukiah City Council and the Board of Directors of the Ukiah Valley Sanitation District to request a 60-day extension from Kiewit on their bid to allow for value-engineering and design change options. 3. PUBLIC EXPRESSION No discussion of this agenda item. 4. ADJOURNMENT OF JOINT MEETING There being no further business, the meeting was at 6:13 p.m. Cathy Elawadly, Recording Secretary Joint Meeting of the City Council And the Ukiah Valley Sanitation District July 14, 2005 Page 8 of 8 MZNUTES OF THE UK]:AH crrY COUNCTL REGULAR MEE'rZNG WEDNESDAY, JULY 20, 2005 The Ukiah City Council met on July 20, 2005, the notice for which had been legally noticed at 6:30 PM. . ROLL CALL CouncJlmembers were present: Crane, McCowen, Rodin, Baldwin and Mayor Ashiku. Staff present: City Manager Horsley, Planning Directo Sandra Liston, Associate Planner I, Public Utilities Director ~d D~puty City Clerk Petersen. . . PLEDGE OF ALLEGTANCE led by PROCLAHATZON / I:NTRODUCTZO N a. Proclamation: Legends of The Proclamation, proclaiming 3ul Redwoods Native American Marathoi Sherrie Smith-Ferry, Tnterim Director Mend~ the Proclamation. b. Tntroduction of New Bernie Ziemianek, Director hic any years Cultural )1 ve American Day lends was read by Mayor Ashiku, useum and David Hance, re present to receive Elizabeth (Liz) Kirkley ntroduced Elizabeth, . 1 a. Special AYE~ NOES: ABSENT: RIGHT Persons who by a court. The limits to ninety challenged. 'ied by 2005 the Minutes of the Special Meeting held following roll call vote: Rodin, Baldwin, Mayor Ashiku None DECISTON with a decision of the City Council may have the right to a review of that decision has adopted Section 1094.6 of the California Code of Civil Procedure, which generally (90) the time within which the decision of the City's Boards and Agencies may be judicially m CONSENT CALENDAR M/S Crane/Baldwin approving the Consent Calendar Ttems "a" through "T" as follows: a. Approved Disbursements for Month of 3une 2005; b. Adopted Resolution 2006-02 of the Council of the City of Ukiah Approving the Execution of Supplement No. 4 to the Northern California Power Agency (NCPA) Joint Powers Agreement (.1PA) Wherein Such Supplement No. 4 Ukiah City Council Regular Meeting July 20, 2005 11 g Provides for the San Francisco Bay Area Rapid Transit (BART) District to Become a Signatory Party to the NCPA .1PA; c. Received Notification of Emergency Purchase from Weir Floway for Two 25 HP Sump Pumps in an Amount Not to Exceed $26,030 Plus Applicable Tax; d. Received Report to the City Council Regarding Acquisition of Services from the City of Light Sound and Recording for Sound IVlanagement of the 2005 Sundays in the Park Concert Series in the amount of $6,000; e. Awarded Bid to FASCO Company in the Amount of $20,138.00 and to Eagle One Company in the Amount of $5,618.96 for the Purchase of Department Evidence Facility Storage Equipment; f. Adopted Resolution 2006-03 Approving Board of Equalization to Administer COU Tran~ g. Awarded Bid to Borges Transfer for the Purch~ in the Amount of $9,698.26 for the Sports Complex; h. Received Report to City Council Reg; HLR Roofing for the Repair of Amount of $5,400; ~, .... i. Adopted Resolution 2006-04 amendi~ with regard to starting time for Council S. ith California State Tax; !86 Yards of Infield Mix ird Field at the Ukiah Services from in the Motion carried by the followin~~ll vote: .~,.~ . AYES: Crane, IvlcCow~~!~w~n, NOES: None ~!~,~, ~~ ............... . ABSENT: None .,~L~,~ .... '""~" ..~? ABSTATN: % oil meetings Al ON rrEMS No PI Cultiva' effect o! .005. ~n Tntroduction of Ordinance Regulating il Marijuana -City Attorney's Report on Opinion No. 04-709, dated 3une 23, Horsley reported that City Attorney, David Rapport, is phone from a remote site. City Rapport advised the Attorney General's Opinion No. 04-709 is consistent with previous analysis brought before the City Council. The only variant to the law would be the issue of 6 plants per parcel versus 6 plants per caregiver. Public Hearing Opened. Members of the public who addressed the Council concerning the proposed Ordinance included: Pebbles Trippet, Richard Hamilton, Dane Ukiah City Council Regular Meeting July 20, 2005 Wilkins (Director of Northern California NORMAL Educational Corporation), and Judy Pruden. Public Hearing Closed. The Ordinance reviewed at this meeting has been revised to reflect the recommendation (reflected in bold and strike out) of the Planning Commission. Councilmember Baldwin questioned whether the Council can act on the Ordinance if any of the recommendations are not acceptable to the Council. Director Stump responded that the Commission anticipated the Council would review the recommendations and expects there to be reviewed the recommendations, as submitted by tht response by City Attorney, this Ordinance would adoption. 14!S Baldwin! 14cCowen to adopt following roll call vote: AYES: Crane, McCowen, NOES: None ABSENT: None ABSTAZN: None ~ .... ..... ~i~.~ -%'~. ~,~.~ Audience request Councdmem~rs~ns~es ~O V l SO ~ '~ Jud P~ a "Ukiah Councilmembers nnifi~ Commission. Per thirty (30) days after Ashiku carried by the identified by the Citizen Anderson Valley Advertiser entitled ns Violate State Law- Piecemeal Pot bers of John the Council included Judy Pruden, Dane ibles Trippet, Ukiah Morrison, and Verge Belander. Pi Councilmerr responded to public concerns stating that the Ordinance g contemplated is not about medical marijuana, it is about attempting to deal with the unintended consequences of unregulated medical marijuana growing, primarily in residential zones. Council is still trying to balance the legitimate needs of medical marijuana patients with the public safety aspects. Additionally, he does appreciate the effort the Planning Commission put in to review this Ordinance and closer examination would show the Council has accepted most of the recommended changes. The principal exception is whether it should be six plants per qualified caregiver or six plants per parcel for residential zones. The City Attorney has stated that the six plants per parcel limit in a residential zone are defensible. Councilmember McCowen stated his belief Ukiah City Council Regular Meeting July 20, 2005 that the six plant limit was necessary if the City is to have a reasonable chance to address the public safety impacts that, based on experience, are likely to Occur. Council discussed whether the inclusion of the Citizens Advisory Board within the Ordinance is appropriate at this time. Further discussion is needed to identify how this Board would function. M/S McCowen/Baldwin introducing Ordinance by title only. Councilmember Baldwin responded to public comment opposition to this Ordinance is not coming from tho~ need the marijuana, it is coming from the make a profit. the primary who medically people in it to Motion carried by the following roll call AYES: Crane, McCowen, Rodin, NOES: None .~:.. ABSENT: None ABSTAZN: None ~:aYor Ashiku Deputy Clerk Petersen :le of M/S McCowen! Baldwin to Planning Commission changes, Parac "At a November ncluding .1 testified neighl including 'ith inten tall .~, as presented with the of meetings commencing 20, 2005, several members of the public related to marijuana cultivation cultivation of mature plants growing as and exceeding a 100 square foot area. ~ncreasE traffic to acts of violence, intimidation and · Jed change to "per parcel" 'ike "qualified patient or primary caregiver" restore Pac "qualified patient or primary caregiver' Pac Strike "religious assembly". Revise bold to read: "unless it is determin h the discretionary review process that a distance of not less than lundred (200) feet will not be detrimental to the public health, safety or general welfare". Paragraph 5, paqe 5 - Striking "qualified patient or primary caregiver to a maximum of four plants per" and insert in the last sentence, "a six-foot tall locked fence or gate". Top Line, paqe 6 - Change "four outdoor plants" to "two". Paraqraph a, paqe 6 - Ts revised to allow the planting of "no more than two plants concealed from view that could comply" Paraqraph b, paqe 6 - Is revised to read "and would not conflict with the growing of no more than two outdoor plants" Ukiah City Council Regular Meeting July 20, 2005 . Paraqraph 9, paqe 7 - Move to paragraph B., page 5. B. would then read: "Mariiuana Cultivation in Residential Zoninq Districts. 14arijuana cultivation may be permitted in the R-l, R-2, R-3, and C-N zoning districts and on legal non-conforming residential parcels in the C-:I., C-2, H, -A, and A-E zoning districts in the City." Hotion carried by the following roll call vote: AYES: Crane, McCowen, Rodin, Baldwin, Mayor Ashiku NOES: None ABSENT: None ABSTAIN: None Unfinished Business a. Discussion of Interim Urgency Ordinal Moratorium on Formula Businesses within and on Perkins and Gobbi .~ ;iness District City Manager Horsley asked if the matter until City Attorney Rapport is in and Crane stated that they had a possible ci of property in the affected Councilmem[ by Council to open the ~blic comm~ rs wanted this McCowen of interest based on ownership ddwin encouraged consensus Councilmembers McCowen and conflict of interest and left the roc elves due to a possible Public All ed Cou to be trapped by fear of the law. requirements to all businesses not just 10. limit Adopt the ~at if the Council has the power to zone and to there is possible hazard or possible harm. and study this more profoundly. cil ed Council to move forward as fast as possible and sees Tf conflict of interest is because of downtown, make this Public closed. Councilmembers having potential Conflict of Interest will be contacting the Fair Political Practices Commission to discuss the matter and request a response in writing. I¥1atter continued to August 3, 2005. New Business a. Lake Mendocino Hydro Electric Plant Restart Commission Project Ukiah City Council Regular Meeting July 20, 2005 1.O. 10. 11. Utilities Director Bernie Ziemianek presented a PowerPoint presentation to the Councilmembers providing a comprehensive outline of the proposed hydroplant restart project. Director Ziemianek reviewed necessary modifications to the powerhouse, completing the presentation by stating that the estimated cost to bring the hydroplant to full operation is $1.351Vl. Based on an analysis of flow characteristics over the past ten years and projection of flow changes suggested by the National Oceanic and Atmospheric Administration Fisheries (NOAAF), estimated yearly revenue is expected to be $750,000 per year. Base on this equation, payback of the bond for start-up costs could be repaid within two years. M/S Rodin/M¢Cowen approving the Lake Mendo, lydro Electric Plant Restart Project; carried by the following roll call AYES: Crane, McCowen, Rodin, Baldwin, ;hiku NOES: None ABSENT: None ABSTATN: None New Business b. Consideration and Direction of Applicants to City ard to Councilmembers were advise, and Parks, Recreation and Goll the number of vacancies. Itus of appi ~ did not Design Review Board applications equal to M/S applicants applicants to vote: ~in to ;orum ant is quail1 and rea~ with for whom we have enough interview those applicants and appoint Those where there are not enough carried by the following roll call Baldwin, Mayor Ashiku ;ENT: : No New c. and Adoption of Resolution approving Memorandum of for Employee Bargaining Unit- Management MIS l/Rodin adopting Resolution2006-05 approving the Memorandum of Understanding for the Management Bargaining Unit; carried by the following roll call vote: AYES: Crane, McCowen, Rodin, Baldwin, Mayor Ashiku NOES: None ABSENT: None ABSTATN: None COUNCTL REPORTS Councilmembers: Ukiah City Council Regular Meeting July 20, 2005 Crane: None McCowen: None Rodin: None Baldwin: Albert Krauss commented on the volume of the audio system in the Council Chambers. Mayor Ashiku: None 12. Cl'rY MANAGER/CI"TY CLERK REPORTS City Manager Horsley reminded Councilmembers of the time change of the meetings from 6:30 PM to 6:00 PM beginning with August 3, 2005 regular meeting. The new meeting time will be included on the City's web page. 13. CLOSED SESSION a. Conference with Labor otiator City designated representative: Cand; Employee Organization: Man Matter covered under Agenda 10.c lanager 14. ADJOURNMENT There being no further business, the met adjourned at 10:45 p.m. Gail Petersen, Deputy City Clerk Ukiah City Council Regular Meeting July 20, 2005 MINUTES OF THE UKIAH CITY COUNCIL REGULAR MEETING WEDNESDAY, May 18, 2005 The Ukiah City Council met at a Regular Meeting on May 18, 2005, the notice for which had been legally noticed, at 6:30 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken Councilmembers were present: Crane, McCowen, Rodin, Bal Staff present: Community Services Director Finance Director McCann, City Attorney Rapport, Cot Sangiacomo, and City Clerk Ulvila. and the following and Mayor Ashiku. Manager Horsley, Services Supervisor 2. PLEDGE OF ALLEGIANCE Mayor Ashiku led the Pledge of Allegiance. 3. APPROVAL OF MINUTES 3a. Re_qular Meetin_~ Minutes of Februa City Clerk Ulvila referred to a correction on Crane's return to the meeting be after Resolution to appoint Eric Crane motions should indicate that Coun¢ from voting on both matters. noted that Councilmember on the nomination and the ;sion. Also, the vote on both and had not abstained M/S Rodin the City Council cai Councilmembers e, ~, Rodin ABSTAIN: None. of the February 2, 2005 by the following roll call vote: AYES: and Mayor Ashiku. NOES: None. 3. A! 3b. ncil /Cra Crane ABSTAI ne. ES of February 167 2005 Regular Meeting minutes of the February 16, 2005 carried by the following roll call vote: AYES: Rodin, Baldwin, and Mayor Ashiku. NOES: None. None. 3. APPR~ 3c. Special of May 47 2005 M/S McCowen approving the Special Meeting minutes of the May 4, 2005 City Council meeting as presented, carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 3. APPROVAL OF MINUTES 3d. Regular Meeting Minutes of May 47 2005 Councilmember McCowen noted corrections to the following portions of the minutes: Page 3: The title of "9a" should read, "Introduction of Urgency Ordinance Imposing Moratorium on Outdoor Marijuana Growing". Regular Meeting of the Ukiah City Council May 18, 2005 Page 1 of 9 Page 4: The seventh paragraph should begin, "Rob Keegan, Ukiah, spoke..." Councilmernber Rodin noted a correction in the minutes to page 8 in which the third paragraph should read as follows, "Councilmember Rodin reported that she raised $535 from 16 contributors for the sales tax ballot measure campaign." Mayor Ashiku noted a correction to page 1, the first sentence under item "3a" should read, "Mayor Ashiku read the Proclamation..." M/S Rodin/McCowen approving the Regular Meeting m Council meeting as amended, carried by the fo Councilmembers Crane, McCowen, Rodin, Baldwin, ABSTAIN: None. ABSENT: None. the May 4, 2005 City roll call vote: AYES: shiku. NOES: None. 4. RIGHT TO APPEAL DECISION Mayor Ashiku read the appeal process. 5. CONSENT CALENDAR M/S Rodin/McCowen approving follows: a. Received Report of Disbursemer b. Received Notification to Council Aluminum, 600V, Sin States Electric; c. Awarded Bid to The Brush Mail d. Awarded Bid The Wastewater e. Ap At ~nductol "a" thro ~ction ,ms Fo tract Wit rse; of the Consent Calendar as 2005; for 3000 Ft. of 750 MC $5,910.55 to Western ,any for the Lump Sum of $346,190, For Project; k Up and Disposal Of Biosolids From of $33.00 Per Ton; ~n For Golf Professional Services f. ed Bid for Powertool$ g. Re~ Report of Depa Is, Streaml h. R~ ~ort of P Newsletter: i. Adopted Ord Modeling Software in the Amount of $10,826.89 of Finance Division to Improve Services to Other Management Staffing and Control Personnel Costs; - Printing of Winter/Spring 2005 Ukiah City View o. 1068 Regulating Skateboarding on Private Property. Motion carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 6. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Peter Keegan inquired if the City Council has the authority to adopt an ordinance (concerning marijuana) in which the public wasn't provided a hard copy to review. Regular Meeting of the Ukiah City Council May 18, 2005 Page 2 of 9 City Attorney Rapport explained the requirements for conducting a public hearing and associated legal noticing with regard to posting of the agenda, and noted that an agenda packet is provided to the Mendocino County Librar~ and the agenda and item were posted on the City's web site. It was his opinion that there was adequate public access to the document. City Manager Horsley noted that a binder containing the agenda and staff reports has been available at City Hall and is placed in the City's foyer duri~ the meeting for public review. Sage Sangiacomo reported to Council that member~ Committee were not able to attend this meeting, flyer with information concerning the Third Annual in recognition of Mendocino County's May Dive~ Martin Luther King Jr. Council with a ~rsity Dinner Event m Em SB596 Rodin Councilmember Rodin the facts concerning instant candidate preferred by the majority She also discussed the ' ' of ~ Cities to implement and requested Council',, ;96. UNFINISHED BUSINESS uest For Council's Discussion Choic, uments W Of esolution lethods - Councilmember rovided to Council delineating the election of a need for runoff elections. allows General Law ption for jurisdictions. She Bob Richard ad~ works closely with voting m its in ;alifornia Electoral Reform process and legislation. He supported choice P~ ~mment o t.m. Joe ~n, Potter election scussed th his concern about how SB596 would impact an voting system. Public Comr~ :22 p.m. Discussion followe, Ih regard to SB596 and choice voting methods. Councilmember Rodin suggested Council not vote on the matter at this meeting, but obtain additional information and postpone the matter for a month. M/S McCowen/Crane to continue the matter to the July 6th meeting; carried by the unanimous consent of Council. 7. UNFINISHED BUSINESS Regular Meeting of the Ukiah City Council May 18, 2005 Page 3 of 9 7b. Consideration and Possible Adoption of Urgency Ordinance Imposing Moratorium on New Marijuana Dispensaries and Direct Staff to Commence The Development of Zoning Regulations for Mariiuana Dispensaries City Attorney Rapport discussed his Staff Report to the City Council with regard to an Urgency Ordinance imposing a moratorium on new marijuana dispensaries, as per the City Council's request of May 4, 2005. If adopted by Council, the urgency Ordinance would become effective immediately. The Government Code authorizes a City Council to adopt as an urgency measure an interim Ordinance prohibiti~ any uses that may be in conflict with a contemplated General Plan, specific plan proposal without following the procedures otherwise required prior to the He explained legal noticing requirements, and stated by City Council as indicated in the Staff Report. He implementation procedure for the urgency Ordin~ specific information that any new dispensarit however, the Planning Department has ;d regulations, a dispensary does not require is possible that a dispensary could be ests review. This Ordinance would be in effect for 4 adopted. He recommended Staff d~ ,pment of of a zoning Ordinance. findings must be made the adoption and He ex ;d that there is no going tosoon in Ukiah; inquiries, the existing Permit. ly a busin~ ,nse, and it Planning a permanent Ordinance is ~ent regulations. Public Comment Opened: 8:20 p.~ Dane Wilkins, Director The Reform Of Mari marijuana patient's Northed (NOR Organization For pport of legitimate medical Peter Keegan, U Ordinance only affe belief use ma~ for his qt need ill are conflicting laws and the proposed lose currently in existence. It was his and voiced his support for the and noted he has written prescriptions for Diana representir Ukiah, st were their currenl . Th require a built rebuild. Caregivers Clinic, one of the dispensaries in :ing at expanding their office for wheelchair accessibility at want to expand their waiting room as well, which may y, they hope to demolish the current building and City Attorney Rapport explained that as the Ordinance is currently written, it would prohibit expansion. Ms. Field explained that they are in the process of purchasing the land and want to complete the modifications to the land within the next year. Public Comment Closed: 7:52 p.m. Regular Meeting of the Ukiah City Council May 18, 2005 Page 4 of 9 Councilmember McCowen explained that it was his intent in bringing this matter forward to regulate the dispensaries so the City can address foreseeable problems they may create. Councilmember Rodin inquired as to any problems the City has incurred with dispensaries compared to other cities. She also inquired as to how long these dispensaries have been in the City of Ukiah. Ms. Field replied that United Medical Caregivers Clinic location for four years. at their current Discussion continued with regard to the proposed experienced problems with dispensaries located directing the Planning Department and Plan regarding where dispensaries could be Council's concern that dispensaries could and welfare of Ukiah citizens, and concern toxic fertilizers thereby causing adverse affects the City has Ihe , the possibility of ission regulations the City limits ~ear schools), adverse on th .Ith, safety, " be toxic rown with ~1 marijuana users. M/S McCowen/Baldwin intro( amendments: Correcting the title of the Ordinance the word "NEW". Page 3, in the last ~ta Ro= inance tie Only with the following All" and replace with with "Ukiah". City Attorney regard to the esta ;ion of be deleted from the Ordinance with ~ng medical dispensaries. he want to allow existing dispensaries to ex M~ by roll call vote: AYES: Councilmembers Crane, M~ :~odin, Bald ~/or Ashiku. NOES: None. ABSTAIN: None. ABSENT ~e. City Clerk UI' of the Ordinance: "An Urgency Interim Zoning Ordinance establishing a on all new medical marijuana dispensaries from May 18, 2005 through and ~ding July 2, 2005, unless extended by further action of the City Council, to take effect immediately." M/S McCowen/Rodin adopting Ordinance No. 1069; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. M/S Rodin/McCowen directing staff to develop regulations for marijuana dispensaries, submit the draft regulations to the Planning Commission for review, and to expedite the process, carried by the following roll call vote: AYES: Councilmembers Crane, Regular Meeting of the Ukiah City Council May 18, 2005 Page 5 of 9 McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. Recessed: 8:19 p.m. Reconvened: 8:28 p.m. Councilmember Baldwin advised that he has had a request from the audience to hear items 8a and 8b next on the agenda. Mayor Ashiku recommended Council continue with the az n the order prepared. 7. UNFINISHED BUSINESS 7c. Discussion of Request For Proposals olf Prc Services At the Ukiah Municipal Golf Community Services Supervisor ' Council and explained the process for competitive bid process. He met with I: regarding the proposal (RFP) and it was sug services should be provided by a ssional. onal Concession ~riefly discussed Report to ~ent of s and the and Men' Clubs he Men's Golf Club that the M/S Baldwin/Rodin directing Staff concession services. · oposal for golf professional James Connerton in~ current salary, and the rr in the RFP. g a golf professional, their Community statement from the for the a p~ onal beca witl' rd to services City Golf pro. Knobl explained that the City receives a City is not covered under the contract :essions receives, nor from his income from cart he gets for concessions. He explained that the City has in running a golf course in an efficient manner et lists a line item for $20,000 to 25,000 that the Motion ca ~llowing roll call vote: AYES: Councilmembers Crane, McCowen, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 7. UNFINISHED BUSINESS 7d. Consideration of Lease of Golf Cart Storage Facility With the Ukiah Men's Golf Club Community Services Supervisor Sangiacomo explained that there have been no changes to the proposal before Council. Mayor Ashiku briefly discussed the lease to the Men's Golf Club and noted they will most likely put the money they make back into the Golf Course. Regular Meeting of the Ukiah City Council May 18, 2005 Page 6 of 9 M/S Baldwin/McCowen approving the lease of the Golf Cart Storage Facility at the Ukiah Municipal Golf Course with the Ukiah Men's Golf Club; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 8. NEW BUSINESS 8a. Approval of Mendocino Solid Waste Management Authority (MSWMA) Bud_qet City Manager Horsley reported that there are no es to last year's budget. M/S Baldwin/Rodin approving MSWMA's fiscal following roll call vote: AYES: Councilmembers C~ MayorAshiku. NOES: None. ABSTAIN: None None.' udget; carried by the Baldwin, and Si Community Services Director D~ Creeks Commission's (POSC) Western Hills. The cost of the proj~ staff, maintenance, and construction County expressed no ~ to has met with Mr. St~ Stou through his NEW BUSINESS Receipt of Letter From aths. Western Hills Trail Pro Iblough di een Creeks ssion · of Pro ect Conce ;d the Paths, Open Space, and trail project in the nor have the impacts to from Mendocino loblough reported that he not want the trail going Dan Holbrook, approximately 30 would lik~ the su le provi~ ned that the POSC is considering to the Golf Course that the POSC in which he displayed maps of to be three miles in length. m( be a to resident describe~ trail as The POSC not wan ~OSC, explained that the POSC feel the trail would and County and to visitors to the community. He attractive points of interest and a beautiful place to walk. on private property. Councilmembe~ expressed concern that the trail would be located about 50 yards down from 'st fairway and if the trail would be dangerous since it would be located adjacent to the Golf Course. Commissioner Connerton explained that he spoke to some golfers and they would need to be aware of the situation with the trail. He also noted the possibility of installing a net to avert any liability to those using the trail. Members of the audience who spoke in support of the proposed trail were: Lauren (no last name given), Neil Davis, Bill Rathkey, Tim Pletcher, Phyllis Webb, and Janet Moore. Regular Meeting of the Ukiah City Council May 18, 2005 Page 7 of 9 Members of the audience who spoke against the proposed tail were Jan Evans and Chris Philbrink who voiced issues concerning private property rights and the potential for vandalism and danger to the water tanks in the neighborhood. Discussion followed with regard to the location and proximity of the proposed trail to the Golf Course, concern with bicycles using the paths, the possibility of fencing areas where cliffs exist, looking at another exit from the Golf Cours~ property owner's issues and clarification if the trail crosses an analysis of liability and maintenance issues and h, contacting all property owners that would have the Department's concerns with parking and turning traffic to Maple Avenue, potential fire hazards, u~ area, providing "No Smoking" signs on the trail. with schools, and initiating support from the the first fairway, property, obtaining ~ey could be mitigated, their property, the Fire ~et, increased vehicle .rized c; g in the proposed the trail activities ~ity and volunteer It was the consensus of Council to direct the proposed site and investigate the concerns the process avaluating ~y Council. Community Services Director D, clearly identified and that it does was noted that the contiguous to get them involved in 'ect. h recol ~ded the location of the trail be or the Golf Course. It ied in writing and attempt 8. NEW BI 8c. Di,, ' ,d Possi Mendocim Conservati~ City consi( on eR( Mend~ District (" based on it. and been app~ 9, 2OO5, consulta Rus The ulation Actio' Contract For Water With ~n Flood Control District and Water .ined th is being returned to Council for Councilmember Baldwin. At the water rights workshop Staff to request a meeting between the City's ~ssues and the technical experts advising the ~od Control and Water Conservation Improvement has offered the City up to approximately 800 acre feet ~e City's past use of District water. The City has requested feet based on the advice of its consultants. City Attorney RaPl stated the State Water Resources Control Board (SWRCB) has differentiated between the water pumped from an underground stream flowing in a known and definite channel versus "percolating groundwater." He noted that if the City contracts for 800 acre feet and doesn't use it, it would be forfeited and goes to another agency. M/S Baldwin/Rodin requesting an additional 300 acre feet under the Water Supply Agreement with the Flood Control District; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. Regular Meeting of the Ukiah City Council May 18, 2005 Page 8 of 9 9. COUNCIL REPORTS Councilmember Baldwin explained that the City needs to get on the agenda at the Inland Water and Power Commission (IWPC) regarding the First Right of Refusal. In his opinion, it is conceivable that Mendocino County may want to rejoin the IWPC. He reported that a law suit has been filed challenging the FERC ruling with regard to the cut backs in Potter Valley. He advised that he will not be able to attend the second meeting in June because he will be on vacation. 10. CITY MANGER/CITY CLERK REPORTS City Manager Horsley stated during the budget goals not to have a separate goal setting session. She year. She also discussed the budget hearing ast year, Council voted :ouncil's direction this Discussion followed with regard to the City of Council to receive information separate goal setting session in advance of ,r's inquiry and it departm~ 3' goals an~ S. consensus ~ctives at a Councilmember Rodin condominium development that attracts for mixed use development article fro~ above Street Journal regarding a foods market and how it City Manager Horsley projected sales tax this week and better. Those cot she will be in F~ Gail Petersen is doin will ed that Jut th6 eme e budget factoring in the A business forum was held heads about making the City's service Council. She reported that this Saturday oy disaster training. She reported that Executive Assistant. 11. NI 12. There b6 further bu the City Council meeting was adjourned at 10:00 p.m. Marie Ulvila, Cit~ Regular Meeting of the Ukiah City Council May 18, 2005 Page 9 of 9 MEMO A_~enda Item: 4c TO: FROM: Honorable Mayor and City Councilmembers City Clerk Marie Ulvila SUBJECT: City Council Meeting Minutes: May 18, 2005 DATE: August 11,2005 Every effort will be made to deliver the Draft Minutes of the May 18, 2005 City Council meeting to Council on Monday, August 15, 2005. Memos: Council minutes ITEM NO.: 6a DATE: August 17, 2005 AGENDA SUMMARY REPORT SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF JULY 2005 Payments made during the month of July 2005, are summarized on the attached Report of Disbursements. Further detail is supplied on the attached Schedule of Bills, representing the four (4) individual payment cycles within the month. Accounts Payable check numbers: 63150-63513, 63644-63857 Accounts Payable Manual check numbers: 60149 Payroll check numbers: 63037-63149, 63514-63639 Payroll Manual check numbers: 63640-63643 Void check numbers: 63858 This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1. RECOMMENDED ACTION: Approve the Report of Disbursements for the month of July 2005. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: N/A Requested by: Candace Horsley, City Manager Prepared by: Kim Sechrest, Accounts Payable Specialist Coordinated with:Mike McCann, Director of Finance and Candace Horsley, City Manager Attachments: Report of Disbursements Candace Horsley, City Manage; KRS:WORD/AGENDAFJUL05 CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF JULY 2005 Demand Payments approved: Check No. 63150-63398, 63399-63513, 63644-63767, 63768-63857, 60149 FUNDS: 100 General Fund $264,638.22 131 Equipment Reserve Fund $5,899.76 140 Park Development $30,864.58 141 Museum Grants $3,012.49 143 N.E.H.I. Museum Grant 150 Civic Center Fund 200 Asset Seizure Fund 201 Asset Seizure (Drug/Alcohol) 203 H&S Education 11489 (B)(2)(A1) 204 Federal Asset Seizure Grants 205 Sup Law Enforce. Srv. Fund (SLESF) 206 Community Oriented Policing 207 Local Law Enforce. BIk Grant $1,666.66 220 Parking Dist. #10per & Maint $1,685.08 230 Parking Dist. #1 Revenue Fund 250 Special Revenue Fund 260 Downtown Business Improvement $4,031.90 290 Bridge Fund 301 2107 Gas Tax Fund 310 Special Aviation Fund 315 Airport Capital Improvement $2,239.29 330 Revenue Sharing Fund 332 Federal Emerg. Shelter Grant 333 Comm. Development Block Grant 334 EDBG 94-333 Revolving Loan 335 Community Dev. Comm. Fund 340 SB325 Reimbursement Fund 341 S.T.P. 342 Trans-Traffic Congest Relief 345 Off-System Roads Fund 410 Conference Center Fund $5,290.76 550 Lake Mendocino Bond $1,673.75 575 Garage $1,802.89 600 Airport 611 Sewer Construction Fund 612 City/District Sewer 615 City/District Sewer Replace 620 Special Sewer Fund (Cap Imp) 640 San Dist Revolving Fund 650 Spec San Dist Fund (Cap Imp) 652 REDIP Sewer Enterprise Fund 660 Sanitary Disposal Site Fund 661 Landfill Corrective Fund 664 Disposal Closure Reserve 670 U.S.W. Bill & Collect 678 Public Safety Dispatch 679 MESA (Mendocino Emergency Srv Auth) 695 Golf 696 Warehouse/Stores 697 Billing Enterprise Fund 698 Fixed Asset Fund 699 Special Projects Reserve 800 Electric 805 Street Lighting Fund 806 Public Benefits Charges 820 Water 840 Special Water Fund (Cap Imp) 900 Special Deposit Trust 910 Worker's Comp. Fund 920 Liability Fund 940 Payroll Posting Fund 950 General Service (Accts Recv) 960 Community Redev. Agency 962 Redevelopment Housing Fund 965 Redevelopment Cap Imprv. Fund 966 Redevelopment Debt Svc. 975 Russian River Watershed Assoc 976 Mixing Zone Policy JPA PAYROLL CHECK NUMBERS 63037-63148 DIRECT DEPOSIT NUMBERS 24651-24784 PAYROLL PERIOD 6/19105-7/2105 PAYROLL CHECK NUMBERS: 63149, 63514-63643 DIRECT DEPOSIT NUMBERS 24785-24949 PAYROLL PERIOD 713105-7/1615 TOTAL DEMAND PAYMENTS TOTAL PAYROLL VENDOR CHECKS TOTAL PAYROLL CHECKS TOTAL DIRECT DEPOSIT TOTAL PAYMENTS VOID CHECK NUMBERS: 63858 $9,551.25 $40,632.74 $43,690.97 $21,160.51 $1,735.88 $23,043.80 $11,368.93 $22,429.73 $10,919.78 $1,142.51 $4,525.58 $542.50 $842,927.00 $12,240.29 $21,533.37 $61,423.35 $740,922.72 $16,680.09 $204,215.65 $353,274.20 $269,761.84 $974.95 $1,353.61 $178,357.00 $71.25 $43,662.40 $25,481.89 $3,286,429.17 $54,144.88 $163,865.18 $350,349.87 $3,854,789.10 CERTIFICATION OF CITY CLERK This register of Payroll and Demand Payments was duly approved by the City Council on City Clerk APPROVAL OF CITY MANAGER I have examined this Register and approve same. 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Jo H H H OOO OOO O~ 0000 0000 O0 0 0000 0000 00 O00 L~ ~ ~ 000 o~ 00 000 {~ CO 00 00 CO CO O0 0 0 oo~ O0 000 · , o~o t~q 0 C) 00 C) 0 0 0 ~3 0 0 ~'3 cq Cq Cq ~' · 0 0 ~ 00 0 o~ 0 0 , 0 , o~ ora 0 r~ 0 ~ :~0 E~ rJ · ~D 0 > o o o c~ c~ c~ c~ o o o oooooo o o o o 0o0 oo~ ~o oo o oooooo o~ d ~ o ~o o ~HHHHHH ~000000 o o o o {,/} m 0 0 ooo o o o , 0 o o cq ~ 0'3 · c~ co co ~ i ~:o o 03 o Or~ 0~ i ,< O~ 0 ¢:::: o o rJ · > O~q o o o 00 ~ o1 o~ o o o o o o oo o o o · o o o o · . o o o c0 o~ o o o o o o · 0 o o , · o o o o o o ooo · , . · , 0 mmm rj o H ~,) 0 O~ H © © m i O~ rJ . > o oo o o oo o o OO ~D ~D O O D~ 00 O O O O O O ~D ~D O O OOOO O O O O O O O Ln ~ O O O OOO O O O O O ~°° i i i O 0 o · , 0 o o o o~ o~ c~ , 0 · , 0 OOOE~ 0 ~ CF} · 0 OO ~°~o o co c~ · 0 ~ ~ o o o ~ · , O ~ 0 ~ H i ~00~ ~000 0~0 O~ ~ ~ i O~ ~JHH O O64 H 0'< r.j . > o o o o o o oooo oooo oooo o o o {2> {2> Ln o o o o o o IF} L.n o o 00 ~ o o o o o o o o o ~ o o 0'~ o o ~ '4) o o 0 0 o 0~ o · o o oo°°~ ~o ooo ~ ~ ... °°° ~ ~ °° 000 ~0 ~ 0 ~0 ~ 0 HHHO © o~ o o o · . · t.D LD · o ~ o 0 o~E~ (JO (J H H ~J · o > 0 o o o o o o o o 0 0 o o o o ~ ~ o ~ ' . o ~ ~ o o ~ oo~o o 0 . c~ O~ i 00 O00 c~ 000000000000 00 00 00 o o o o o oo o o o o 0 0 OOoO ~oo~oo~OO~oo oo oo 000000000000 00000~000000 ~oo~o~o~ ~o ~o ~ 0 ~ H 0 o o o · · o · r..q °°~ oo ooo o oo~ ~ o oo O~ ~H H 0,< I.-I ko r.j . > o o o o [13 0000 o o ~ ~0 LN LA LA 000 0 0 000000 ~oo~o ~oo~~ 000000 88 ~ ~ ~0 oo © o o o 0 , , ~ ~0 !° oo~o °~ i H~ ° °~ O~ H~ O0 ~,.-1 0 OH rj · o > 0 o~ 0 0'~ C~ O0 CO og r-q ~ [13 m 0000 ~oo 0 0'~ LO ~o 88oo O0 0 0000 ~oo 0 O0 o gg ~0 00 00 · 0 00 O~ O~ · 0 ~ 0 0 o~ · © 0 00 · g° C> 000 000 · 0 C> ~ ~o 0 ~/~ 0 120 H o~ © {Dm o,<~ O~ o ooo o ,~ ,,~ o o ~4D 0 CD D-- D~ C~ Ch O O O O '..D '4:) Ln Ln O O 000000 000000 0 0 o c0 0'~ H .¢~ O o o O · , ~q · o ~o~ oo oooo °°~ O~ rj~ rjr... ,<o ~r~ O~ ~ H H H~~ H~~ H ~°~° oooo o o 0 ~ o o 03 C) · <2> AGENDA SUMMARY REPORT ITEM NO. 6b DATE: August 17, 2005 SUBJECT: NOTIFICATION OF BID TO ALLSTAR FIRE EQUIPMENT IN THE AMOUNT OF $5,727.15.00 FOR THE PURCHASE OF 24 LENGTHS OF FIRE HOSE Submitted for the City Council's notification is the bid award to All Star Fire Equipment in the amount of $5727.15, for the purchase of 24 lengths of fire hose. This purchase is part of the departments continuing program to replace and upgrade fire hose that is no longer serviceable and will enable both public safety and water treatment plant personnel to respond. The Fire Hose will be funded through the approved budget under 100.2101.800.000. RECOMMENDED ACTION: Receive notification of bid award to All Star Fire Equipment in the amount of $5,727.15. ALTERNATIVE COUNCIL POLICY OPTION: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Council Policy Kurt Latipow, Fire Chief Candace Horsley, City Manager None Candace Horsley, City ger AGENDA SUMMARY Item No 6c Date: August 17, 2005 REPORT SUBJECT: NOTIFICATION TO COUNCIL REGARDING THE AWARD OF BID TO WIPF CONSTRUCTION FOR BORING AND INSTALLATION OF CONDUIT AT THE CITY OF UKIAH MUNICIPAL GOLF COURSE A Request for Quotations (R.F.Q.) through the informal bid process was sent to three contractors for boring and installation of conduit at the City of Ukiah Municipal Golf Course above hole #6. One bid was received and opened by the Electric Department on July 27, 2005. A purchase order was issued to Wipf Construction for a total of $9,240.00. This project is funded from Account Number 840.3850.800.002. Sufficient funds are available. RECOMMENDED ACTION: Receive and file report regarding the award of bid to Wipf Construction in the amount of $9,240.00 ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: N/A Requested by: Stan Bartolomei, Electrical Supervisor Prepared by: Judy Jenney, Purchasing & Warehouse Assistant Coordinated with: Candace Horsley, City Manager APPROVED: ~~ Candace Horsley, City Mana~l~r AGENDA SUMMARY REPORT ITEM NO. 6d DATE: August 17, 2005 SUBJECT: NOTIFICATION OF EMERGENCY PURCHASE OF A 500 GPM GOULDS PUMP AND MOTOR FROM GROUNDWATER PUMP AND WELL TO REPLACE THE CITY'S PUMP AT WELL #3 FOR $ 30,904.81. Submitted for the City Council's notification is the emergency purchase of a new pump and motor for the City's well #3. Well #3 is a "modulating" source in that, other than the Water Treatment Plant, it is the only other automatic on-off pump. It is our primary back-up. The pump began deteriorating approximately July 15, 2005 and by July 28, 2005 began showing severe metal fatigue. The current pump was installed in 1948 and repair pads are not readily available. The new pump and motor will be sized closer to the actual production of the well which will allow us to reduce the Horsepower from the current 150 down to 75 helping to realize a significant savings in electrical cost. Savings of approximately $2000/month or $24,000/year will be realized. This will allow a simple Return of Investment (ROI) of 1.3 years. When the Water Treatment Plant is down for rehabilitation later this fall it is essential that well #3 is available to carry the bulk of the City's water production. Groundwater Pump and Well's price minus labor is approximately $6,000.00 dollars higher than the Iow price from G3 Engineering but the delivery time is 5-7 days versus 12-14 weeks. This will be funded from 820.3908.302.000. RECOMMENDED ACTION: Receive notice of emergency purchase of a pump and motor from Groundwater Pump and Well for $30,904.81 ALTERNATIVE COUNCIL POLICY OPTION: NA Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Bernie Ziemianek, Director of Public Utilities Alan Jamison, Water Treatment Plant Supervisor Candace Horsley, City Manager None Can~l-~ce Hor~ley, City Ma'fl~er ITEM NO. 6e AGENDA SUMMARY DATE: August 17, 2005 REPORT SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH MERRITT SMITH CONSULTING FOR MIXING ZONE POLICY DEVELOPMENT PROCESS REPRESENTATION SERVICES The City of Ukiah, the City of Cloverdale, the City of Healdsburg, the City of Santa Rosa, the Town of Windsor, the Forestville County Sanitation District, the Russian River County Sanitation District, the Occidental County Sanitation District, and the Sonoma County Water Agency on behalf of its Graton Sanitation Zone (collectively called "Water Recyclers" hereinafter), signed the Cooperative Agreement to Provide Funding And Resources For Development of Mixing Zone Policy dated October 1,2003 (Cooperative Agreement). The Cooperative Agreement establishes the City of Ukiah as Administrator. Pursuant the Cooperative Agreement, the City entered into an Agreement For Professional Services with Merritt Smith Consulting (Consultant) to provide Mixing Zone Policy Development Process Representation services to the Water Recyclers related to the Regional Water Quality Control Board's (RWQCB) regulatory policy development process for mixing zones. In a meeting on July 13, 2005, the Water Recyclers determined that a change in the Consultant's scope is necessary to respond to regulatory process and schedule changes made by RWQCB. The revised RWQCB approach also resulted in a decision by the Water Recyclers to discontinue funding of staff positions at RWQCB (funded through Regional Government Services) since the RWQCB would no longer provide a benefit to the Water Recyclers. (Continued on Page 2) RECOMMENDED ACTION: Approve Amendment No. 1 to Professional Services Agreement with Merritt Smith Consulting. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide alternative direction to staff. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A. Bernie Ziemianek, Director of Public Utilities Ann Burck, Project Engineer Candace Horsley, City Manager 1. Amendment No. 1 to Professional Services Agreement with Merritt Smith Consulting Candace H0rsley, City'~anager Page 2 APPROVAL OF AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH MERRITT SMITH CONSULTING FOR MIXING ZONE POLICY DEVELOPMENT PROCESS REPRESENTATION SERVICES. AUGUST 17, 2005 This amendment changes the Consultant's role by reducing interface with RWQCB and adding development of specific documents to assist Water Recyclers apply for mixing zone credit in the future as requested by the Water Recyclers. This amendment revises the not- to-exceed fee to the Consultant from $158,000 to $343,748. The estimated cost in the "Cooperative Agreement To Provide Funding and Resources For Development of Mixing Policy" approved and executed by the Water Recyclers was $750,000. The increased cost for the amended scope includes: 1 ) new tasks that are more complex than the original scope, such as biological and cultural evaluations and peer review of the document, 2) MSC is completing tasks on its own where the original scope contemplated augmenting or providing assistance to RGS for work that was to be completed by RGS and 3) includes more detailed work, thus requiring more time in the revised contract. However, the revised approach adopted by the Water Recyclers is expected to reduce overall cost because termination of the positions at RWQCB avoids more cost than the increase of the consultant's contract. Staff is recommending Council's approval of Amendment No. 1 to the Professional Services Agreement with Merritt Smith Consulting. ATTACHMENT_. CITY 0 F UKIA H AMENDMENT NO. 1 TO THE AGREEMENT FOR PROFESSIONAL SER VICES WITH MERRITT SMITH CONSUL TING DATED 23 MARCH 2005 PURPOSE OF AMENDMENT The City of Ukiah (City), the City of Cloverdale, the City of Healdsburg, the City of Santa Rosa, the Town of Windsor, the Forestville County Sanitation District, the Russian River County Sanitation District, the Occidental County Sanitation District, and the Sonoma County Water Agency on behalf of its Graton Sanitation Zone (collectively called "Water Recyclers" hereinafter), signed the Cooperative Agreement to Provide Funding And Resources For Development of Mixing Zone Policy dated October 1, 2003 (Cooperative Agreement). The Cooperative Agreement establishes the City of Ukiah as the Administrator. Pursuant the Cooperative Agreement, the City entered into an agreement For Professional Services with Merritt Smith Consulting (CONSULTANT) to provide Mixing Zone Policy Development Process Representation services to the Water Recyclers related to the Regional Water Quality Control Board's regulatory policy development process for mixing zones. In a meeting on July 13, 2005, the Water Recyclers determined that a change in the Consultant's scope is necessary to respond to regulatory process and schedule changes made by RWQCB. This amendment changes the Consultant's role by reducing interface with RWQCB and adding development of specific documents to assist Water Recyclers apply for mixing zone credit in the future as requested by the Water Recyclers. AMENDMENT A UTHORIZA TION Paragraphs 1.01, 3.01, 3.03, 4.01, 4.02 and 5.02 of the Agreement authorize the City to amend the Scope of Work of the Agreement. AMENDED PROVISIONS OF THE AGREEMENT Paragraph 1.01 shall be amended to read as follows: "CONSULTANT shall provide those technical, expert, and professional services as described in Exhibit "C," which consists of the scope of work, dated July 27, 2005, which is attached hereto as Exhibit "C" and incorporated herein. CONSULTANT shall provide such services within the time limits described below." Paragraph 3.01 shall be amended to read as follows: Amendment No. 1 page 1 of 3 "The term of this agreement shall commence on the effective date and shall terminate December 31, 2006. This agreement may be amended upon written agreement between the CITY and CONSULTANT." Paragraph 3.03 shall be amended to read as follows: "All work by CONSULTANT shall be completed pursuant to Exhibit "C." CONSULTANT shall not be held responsible for delays caused by circumstances beyond its control." Paragraph 4.01 shall be amended to read as follows: "CONSULTANT has been selected by the CITY to provide services described in Exhibit "C," attached hereto and incorporated herein by reference, for which compensation shall not exceed $343,748.00 on a time and materials basis." Paragraph 4.02 shall be amended to read as follows: "Cost overruns or failure to perform within the maximum compensation ceiling established in 4.01 above shall not relieve CONSULTANT of responsibility to provide those services specified in Exhibit "C", for a total compensation including reimbursable expenses not to exceed $343,748.00" Paragraph 5.02 shall be amended to read as follows: "Payment scheduling: Total payment not to exceed $343,748.00. Fees for professional services as outlined herein shall be paid on a time and materials basis. A detailed explanation of services and associated fees shall be listed on each invoice submitted by CONSULTANT." TERMS ,4ND CONDITIONS All terms and conditions of the Agreement shall remain in full force and effect as modified and clarified by this Amendment. ~IMENDMENT./I UTHORIZ4 TON The Parties to the Agreement may amend the provisions of the Agreement pursuant to the provisions of paragraph 3.02. SIGN~4 TURES By signing below, the authorized representatives of the City and Consultant agree to amend the Agreement as described in this Amendment. Amendment No. 1 page 2 of 3 CITY OF UKIAH MERRITT SMITH CONSULTING BY: BY: CANDACE HORSLEY DAVID W. SMITH CITY MANAGER PARTNER DATE: DATE: ATTEST: BY: DATE: MARIE ULVILA CITY CLERK APPROVED AS TO FORM: BY: DATE: DAVID J. RAPPORT CITY ATTORNEY Attachment: Exhibit C Amendment No. 1 page 3 of 3 EXHIBIT C SCOPE OF WORK BA CKGR 0 UND The North Coast Regional Water Quality Control Board (Water Board) has postponed developing a mixing zone policy and technical support document until internal staffing is available, now that outside funding of the project has been terminated. However, to comply with some final California Toxic Rule (CTR) effluent limits, most dischargers will need to seek regulatory relief through mixing zones or other methods provided in the Policy for Implementation of Toxic Standards for Inland Surface Waters, Enclosed Bays and Estuaries of California (SIP), implement aggressive source control measures, and/or construct treatment plant improvements. These decisions must be made in the near future, as some dischargers are in the process of preparing repons of waste discharge (ROWD), which are anticipated to lead to CTR-based final effluent limits, or have permit requirements or enforcement actions with compliance deadlines where the allowance of mixing zones directly affects the compliance method. Regardless, the SIP and CTR currently require dischargers to meet final effluent limits by May 18, 2010 for non- TMDL pollutantsI by limiting compliance schedules to 10-years from the effective date of the CTR, unless a variance is obtained. On June 9, 2005, the Water Recyclers (Cities of Ukiah, Healdsburg and Santa Rosa, the Town of Windsor and the Sonoma County Water Agency) requested Merritt Smith Consulting (CONSULTANT) prepare a draft scope of work and cost estimate to develop a guidance document for mixing zones in the North Coast Region (guidance document). The draft scope of services was provided to the Water Recyclers and on July 13, 2005, the Water Recyclers approved the scope of services and requested that work begin. This scope of services (Exhibit C) is the scope approved by the Water Recyclers. This scope provides for the preparation of a guidance document based on the SIP as the guiding policy for mixing zones, and shall contain detailed guidance information on applying for a mixing zone and evaluating a mixing zone application specific to the North Coast Basin Region, particularly the Russian River watershed. The guidance document shall be presented to the Water Board prior to submittal of any Russian River watershed Reports of Waste Discharge (ROWDs) that evaluate mixing zone application. The guidance document shall become part of the record in a mixing zone application, thereby requiring the Water Board to consider its contents. To date, the Water Board has issued at least six NPDES permits with final effluent limits that were based on CTR criteria and without dilution (Healdsburg, Forestville, Graton, Russian River, Sonoma West Holdings, City of Arcata); only the first four include interim limits. The Water Board is scheduled to issue permits within the next few years. 1 EPA did not approve the 15-year compliance timeframe for TMDL-based waste load allocations. Page C-1 July 27, 2005 To justify a mixing zone, most dischargers will need to begin work within the next three years. The guidance document shall provide the guidance needed for dischargers to make a scientifically defensible mixing zone application and for Water Board Staff to evaluate the applications in a consistent, predictable manner by following the guidance. DESCRIPTION OF AUTHORIZED WORK CONSULTANT shall develop a guidance document for mixing zones that is based on and complies with SIP requirements. The guidance document shall be similar to the technical support document (TSD) that was to be developed as part of the Mixing Zone Policy Development Project (MZP), by providing information that (1) can be used by dischargers to assemble and justify a mixing zone application, and (2) will allow Water Board staff to evaluate a mixing zone application. However, it shall not contain discharge requirements or pollutant specific information proposed in the TSD of the MZP. The pollutant specific information shall be provided under a separate report to the water recyclers. Consistent with direction provided in the 9 June 2005 conference call, the guidance document shall be peer reviewed by two experts in water quality and toxicology from a California university, consistent with California's Health and Safety Code Section 57004(b)2 prior to being submitted to the Water Board staff. The guidance document shall contain the following information: 1) A historical overview of mixing zones, both on a national and state level. Mixing zones are a common regulatory tool and have a long history, both in California and the United States. Many critics portray mixing zones as "new" or/or not permitted under the Clean Water Act (CWA). In addition, USEPA has recently banned mixing zones in the Great Lakes region. The document shall describe the history and use of mixing zones both on a federal and state level. It shall also provide background on the Great Lakes Initiative and describe how the Great Lakes water system differs in both concerns and makeup from the North Coast Region. 2) A description of mixing zones. The document shall describe what mixing zones are and are not. It shall contain background information that describes how beneficial uses are protected when mixing zones are properly applied. It shall describe the three types of mixing zones provided 2 Section 57004(b) requires that "The agency, or a board, department or Office within the agency, shall enter into an agreement with the National Academy of Sciences, the University of California, the California State University, or any similar scientific institution of higher learning, any combination of those entities, or with scientist or group of scientist of comparable stature or qualifications that is recommended by the President of the University of California, to conduct an external scientific peer review of the scientific basis for any rule proposed for adoption by any board, determent or office within the Agency. The scientific basis or scientific portion of a rule adopted pursuant to Chapter 6.6 (commencing with Section 25249.5) of Division 20 or Chapter 3.5 (commencing with Section 39650) of Division 26 shall be deemed to have been complied with this section if it complies with the peer review process established pursuant to these statutes." Page C-2 July 27, 2005 for in the SIP, and categories of pollutants where mixing zones can be considered. The guidance document shall also contain background information on State Water Resource Control Board orders and court orders that pertain to mixing zones and their applications. 3) A description of information needed to justify a mixing zone. The SIP requires the applicant to demonstrate, to the satisfaction of the WATER BOARD, that a dilution credit is appropriate. The SIP requires the applicant to provide, to the extent feasible, the information needed by the WATER BOARD to make a determination on allowing a mixing zone, including the calculations for deriving the appropriate receiving water and effluent flows and/or the results of a mixing zone study. Using USEPA guidance documents, State Board decisions and policy, the SIP, modeling input values, and reviews of other mixing zone applications as a basis, the guidance document shall describe common methods to assess mixing zones and contain guidelines as to how and what is needed to conduct a mixing zone study. The value, strengths and weaknesses of each common method shall be described. 4) Evaluation of mixing zones Using the parameters contained in the SIP, USEPA guidance, State Board decisions, and other mixing zone applications in permits, the guidance document shall define in more detail each parameter contained in the SIP and provide guidance on how it should be evaluated. The document shall also contain a synopsis of typical levels of information that are needed to justify mixing zones in both California and other states with similar watersheds. In addition, the guidance document shall include a discussion on the requirements for economic considerations and other Water Code requirements if denial of a mixing zone is considered. 5) Permit provisions The SIP requires the Water Board to make certain findings with regard to mixing zones and contains the formulas for calculating final effluent limits. However, it is silent on monitoring and reapplication requirements. The document shall contain guidance on developing these permit features. The guidance document shall describe, using existing USEPA guidance supplemented with examples from other permits, how to apply other forms of permit relief (such as translators, site specific objectives, etc.) in conjunction with mixing zones. 6) Watershed efforts The SIP encourages watershed efforts for special studies, of which mixing zone studies are included. The document shall explore areas where watershed efforts may be feasible and/or valuable, such as determining fish tissue concentrations or improved modeling efforts. Page C-3 July 27, 2005 7) Seasonal Mixing Zones The SIP allows the Water Board to consider seasonal mixing zones. The guidance document shall describe the use and application of seasonal mixing zones. 8) Resources for the Evaluation of Pollutants Several resources provide additional information on varying pollutant toxicity and toxicity pathways. The guidance document shall provide information on these resources and how they should be used to evaluate mixing zones. 9) Diffuser design and performance Diffuser design can change mixing properties. The guidance shall include a description of some of the more common types of diffusers, their performance characteristics, suitability to the Russian, Mad and Eel Rivers, and operational and maintenance requirements. 10) North Coast Specific Information The guidance document shall include, as appropriate, information specific to the North Coast Basin's Mad, Eel and Russian Rivers. This shall include Basin Plan provisions that impact mixing zones, hydrologic characteristics, general streambed characteristics, endangered and threatened species information, and water quality characteristics. Most of the focus shall remain on the Russian River unless other water recyclers participated in funding this document. Appendices The appendices to the guidance document shall contain supplemental information or resources pertinent to mixing zones. Some more voluminous documents may be provided in electronic format. CONSULTANT shall develop chemical-specific information on a select list of pollutants of concern that have been identified by previous reasonable potential analyses (i.e., copper, lead, mercury, nickel, silver, zinc, cyanide, 1,2,3,4,7,8- HeptaCCD, Chlorodibromomethane, Bromodichloromethane, Benzo(a)pyrene, gamma-BHC (Lindane), beta-Endosulfan, Heptachlor Epoxide, Tributyltin). CONSULTANT shall provide this information as a separate document to the Water Recyclers which they could use for their applications without duplicating efforts. The chemical-specific information shall be evaluated and presented in a manner consistent with the guidance document. APPR OA CH AND TIME SCHEDULE CONSULTANT shall utilize and build on existing MZP work thus far completed by both CONSULTANT and Regional Governmental Services (RGS). Page C-4 July 27, 2005 Phase I: In order to provide a framework for the guidance document and allow for data acquisition during the 2005-2006 discharge season, CONSULTANT's first priority shall be to provide a preliminary description of information needed to justify a mixing zone. This shall be based on current USEPA guidance, State Board decisions concerning mixing zones, and a review of several post-SIP mixing zone applications in other regions. The SIP suggests that applicants seeking to perform a special study, especially those done on a watershed basis, involve the water board and other stakeholders in the scope of the study in order to avoid costly and time consuming studies which are not appropriately designed to resolve the specific issue in question. CONSULTANT shall submit to the water recyclers a report containing an overview of the informational needs to justify a mixing zone by September 16, 2005. The timing of this report provides a few weeks for a water recycler to evaluate a mixing zone study plan and seek Water Board or other stakeholder input on its scope, if desired, prior to the beginning of the 2005-2006 discharge season. CONSULTANT anticipates information in this report will be further developed and incorporated into the guidance document. Within this timeframe, CONSULTANT shall hold a workshop-style meeting with the Water Recyclers to review and discuss the findings of first phase of this project. Phase II: By November 12, 2005, CONSULTANT shall submit a second report that encompasses a description of mixing zones, mixing zone evaluation guidelines, guidance on permit provisions, and resources for the evaluation of pollutants. During this timeframe, CONSULTANT shall hold a second workshop-style meeting to discuss findings. Subsequent updates to this report may be made as the guidance document is further developed and/or comments are received from the Water Recyclers. The purpose of the Phase I and II reports are to provide preliminary information to those who must move forward on study plan before the final draft guidance is finalized. Phase III: By March 31, 2006, CONSULTANT shall submit a draft guidance document for review and comment by the water recyclers. CONSULTANT shall request the document be reviewed and comments submitted within a three week time frame. Within this timeframe, CONSULTANT shall hold a final workshop-style meeting with the Water Recyclers to discuss the draft guidance. CONSULTANT shall incorporate the comments received and provide a revised draft to the Water Recyclers by May 5, 2006. The revised draft shall be used for peer review. Phase IV: On May 5, 2005, CONSULTANT shall distribute the revised draft of the guidance document for peer review to two qualified experts. CONSULTANT shall request that peer review comments on the draft guidance document be returned to CONSULTANT by May 24, 2006. Also during this phase, CONSULTANT shall delivere the report containing the biological and ecological effects of the chemicals identified through the RPA analysis. Page C-5 July 27, 2005 Phase V: After peer review comments are received, CONSULTANT shall finalize the guidance document and prepare responses to peer review comments. A final guidance document shall be presented to the water recyclers by June 23, 2006. CONSULTANT recommends that this guidance document be presented, along with peer review comments and responses, to the Water Board ideally concurrently or before a mixing zone application is submitted to the Water Board. Phase VI: CONSULTANT shall be available to meet with the Water Board or its staff to explain the guidance document or aspects of it, and support its use. During the course of this project, CONSULTANT shall hold monthly teleconferences to update the Water Recyclers on the status of the project. Page C-6 July 27, 2005 AGENDA SUMMARY ITEM NO. 6f DATE: Auqust 17, 2005 REPORT SUBJECT: AWARD OF CONTRACT TO CALIFORNIA PAVEMENT MAINTENANCE COMPANY, INC. FOR SLURRY SEAL OF APRONS AT THE UKIAH REGIONAL AIRPORT IN THE AMOUNT OF $19,909.95 SUMMARY: The City distributed specifications to eighteen contractors through its informal bidding process for the Airport Slurry Seal Project. The City publicly advertised this project on July 28, 2005 and July 31, 2005 in the Ukiah Daily Journal. Four sealed proposals were received and opened by the City Clerk on August 9, 2005. The lowest responsive, responsible bidder is California Pavement Maintenance Company, Inc. of Sacramento, California with a total bid of $19,909.95. The Engineer's Estimate for the project is $14,000.00. The City budget is $30,000 for this project from the Airport Pavement maintenance Program, Acct. #600-5001-305. If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head with approval of the City Manager to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. RECOMMENDED ACTION: Award the contract for slurry seal of aprons at the Ukiah Regional Airport to California Pavement Maintenance Company, Inc. in the amount of $19,909.95. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Reject all bids and direct staff to readvertise for bids. 2. Determine Airport Slurry Seal work is not necessary and provide direction to staff. Citizen Advised: Requested by: Prepared by: Coordinated with: N/A Paul Richey, Airport Manager Paul Richey, Airport Manager Candace Horsley, City Manager Rick Seanor, Deputy Director of Public Works Attachments: 1. Bid Tabulation 2. Photos of slurry seal area 3. Fisca~_Y,,ear 2005/2006 Airport Budget Sheet AP P ROVE D.(.~;;~'/'~_ ~ ~ Candace Horsley;, City~anager Paul revised-AG-AirportSlurry. SUM CITY OF UKIAH 300 SEMINARY AVENUE UKIAH, CA 95482-5400 (707) 463-6217 (City Clerk's Office) BID OPENING FOR: SLURRY SEAL APRONS AT UKIAH REGIONAL AIRPORT DATE: AUGUST 9~ 2005 TIME: 2:00 P.M. COMPANY VALLEY SLURRY SEAL CO. P. O. BOX 1620 WEST SACRAMENTO, CA 95691 AMERICAN ASPHALT REPAIR & RESURFACING CO., INC. P.O. BOX 3367 HAYWARD, CA 94540 CALIFORNIA PAVEMENT MAINTENANCE COMPANY, INC. 9390 ELDER CREEK ROAD SACRAMENTO, CA 95829 INTERMOUNTAIN SLURRY SEAL, INC. 6225 SOUTH WALNUT STREET, SUITE C LOOMIS, CA 95650 AMOUNT Marie Ulvila, City Clerk bids:Slurry Seal 2005 Rick Seanor Deputy Director of Public Works N Ukiah Airport Slurry Seal - North E ndATT^CHMENT _ 1 inch equals 200 feet P_hoto Date: March 2001 Ukiah Airport Slurry Seal - South End 1-inch equals 200-feet Photo Date: March 2001 o ~ I~J Z 0 (3.) O ATTA~'IMEN?~,,'~ _ o o o AGENDA SUMMARY ITEM NO. 6g DATE: August 17,2005 REPORT SUBJECT: AWARD CONTRACT TO' GRANITE CONSTRUCTION CO. FOR PAVEMENT REHABILITATION AND TRAFFIC SIGNAL LOOP REPLACEMENT, SPECIFICATION NUMBER 05-07 IN THE AMOUNT OF $198,568 AND APPROVE BUDGET AMENDMENT IN THE AMOUNT OF $70,000 SUMMARY: The City distributed specifications to ten builder's exchanges and five contractors for the pavement rehabilitation and traffic signal loop replacement project. The City publicly advertised this project on July 17, 2005 and July 21,2005 in the Ukiah Daily Journal. Two sealed proposals were received and opened by the City Clerk on August 9, 2005. The lowest responsive, responsible bidder is Granite Construction Co. of Ukiah, California with a total bid of $198,568. The Engineer's Estimate for the project is $147,915. The City budget is $134,000 for this project. The primary differences between the Engineer's Estimate and the Iow bid are the bid items for traffic control and for asphalt concrete. Asphalt concrete costs have increased substantially due to increases in oil prices. Both bidders listed similar traffic control prices which are likely higher than normal due to the complexity of constructing the project and managing traffic. Sufficient funding is available from the fund balance of Fund 341 Surface Transportation Project (Program). Staff recommends a budget amendment to transfer funds in the amount of $70,000 from the fund 341 balance to expenditure account 341.9655.250.000. This amount will provide the necessary funding to award the contract and to allow for potential change orders. continued on page 2 RECOMMENDED ACTION: 1. Award the contract for Pavement Rehabilitation and Traffic Signal Loop Replacement, Specification No. 05-07, to Granite Construction Co. in the amount of $198,568. 2. Approve an amendment to the 2005/2006 budget increasing expenditures in account 341.9655.250.000 by $70,000. ALTERNATIVE COUNCIL POLICY OPTIONS: Reject all bids and direct staff to readvertise for bids. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Director of Public Works/City Engine. er RickDianaseanor,Steele'Deputy Director of Public Works ~_~ Candace Horsley, City Manager Diana Steele, Director of Public Works/City Engineer 1. Bid Tabulation 2. Bid Proposal from Granite Construction Co. 3. Fiscal Year 2005~2006 Budget Sheets Ap p ROVE D :"~~~t ~~..~ Candace Horsley, City Mana~r AG-Pavemt Rehab-Signal Loop. SUM Award contract to Granite Construction Co. for Pavement Rehabilitation and Traffic Signal Loop Replacement, Specification Number 05-07 in the amount of $198,568 and approve budget amendment in the amount of $70,000 August 17, 2005 Page 2 If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head with approval of the City Manager to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. Affochment ~ ' I 88 88 888 ITEM NO. QUANTITY DESCRIPTION AND UNIT PRICE BID EXTENDED AMOUNT FROM ITEM ,, Trafiic Control for the lump sum price of 1. ILS · TL4) ¢-,,I""D[',~ -~'-t'~)O Grind Existing Roadway for a price per cubic ~ard of Asphalt Concrete for a price per ton of 3. 1152 TON (: 1o6, oo ) : J2 2; J i2o oo Traffic Signal Detection Loops for a price per loop of $,c~,~ - N;~ do liars ~ q~,oo ~ ,13, f112,oo Pavement Rehabilitation and Traffic Signal Loop Replacement Spec. No. 05-07 42 . . 1 LS 395 LF Solid White 8" Painted Traffic Stripe for a , 695 LF Double Yellow Painted Traffic Stripe for a price per linear foot of (s Io O0 ) 67 'oOO . 10 EA White Reflective Pavement Markers for the price per each of ($)0,00 .) $ /O0. oo 32 EA White Non-reflective Pavement Markers for rice each of ($. I0oOO__.) · Pavement Rehabilitation and Traffic Signal Loop Replacement 43 Spec. No. 05-07 ., Yellow Reflective Pavement Markers for the price each of Te~ rt,~l~ 10. 20 EA '--" ~ 1o, oo ) ~ 2,00,oo Valve Box Protection/Replacement for the price each of 11. 6 EA 'T-mo g~r~( g-~/ Manhole Frame & Cover Protection/ R~lacement f9[ the price each of ~. ~ EA ' .oo¢ ,2 2 0. oo TOTAL BID AMOUNT IN WORDS Fi v~ t4o~f~ ~;x.~ -~iqh¢ do Ilac~ In case of discrepancy between words and figures, the words shall prevail. Pavement'Rehabilitation and Traffic Signal Loop Replacement Spec. No. 05-07 44 We, the undersigned, further agree, if this proposal shall be accepted, to sign the agreement and to furnish the required bonds with satisfactory surety, or sureties, within fifteen-(15) calendar days after written notice that the contract is ready for signature; and, 'if the undersigned shall fail to contract, as aforesaid, it shall be understood that he or she has abandoned the contract and that, therefore, this proposal shall be null and void and the proposal guaranty accompanying this proposal, or the amount of said guaranty, sl~all be forfeited to and become the property of the City. Otherwise, the proposal guaranty accompanying this proposal shall be returned to the unc~ersigned. Witness our hands this day of August 9 _, 20 05 . Licensed in accordance with an act providing for the registration of Contractor's License No. 89 __, expiration date Ma~'007 THE CONTRACTOR'S LICENSE NUMBER AND EXPIRATION DATE STATED HEREIN ARE MADE UNDER PENALTY OF PERJURY. Signature of bidder o/~bidders, with business addresses: <-- SIGN HERE P.O. Box 50085 Watsonville, CA 95077 Notice: In the case of a corporation, give below the addresses of the principal office thereof and names and addresses of the President, Secretary, Treasurer. . GRAIqlTE CONSTRUCTION COMPANY P.O. Box 50085, Watsonville, CA 95077 William G. Dorey_~President P.O. Box 50085, Watsonville, CA 95077 Michael Futch, Secretary P.O. Box 50085, Watsonville, CA 95077 R.C. Allbritton, Treasurer P.O. Box 50085, Watsonville, CA 95077 Pavement Rehabilitation and Traffic Signal LOop Replacement 46 Spec. No. 05-07 FAIR EMPLOYMENT PRACTICES CERTIFICATION TO: City of Ukiah The undersigned, in submitting a bid for performing the following work by Contract, hereby certifies that he or she has or will meet the standards of affirmative compliance with the Fair Employment Practices requirements of the Special Provisions contained herein. PAVEMENT REHABILITATION AND TRAFFIC SIGNAL LOOP REPLACEMENT Specification No. 05-0'/ ION COMPANY ~Signature of Bidder) 1~. tzian, Business Mailing Address: P.O. Box 50085 Watsonville, CA 95077 AsSistant Secretary Business Location: 585 W. Beach Watsonville, Street CA 95076 (The bidder shall execute the certification Of this page Prior to submitting his or her proposal.) Pavement Rehabilitation and Traffic Signal Loop Replacement 48 Spec. No. 05-07 ~PENSATION CERTIFICATE · I am aware of the provisions of Section 3700 of the Labor Code .which require every employer to be insured against liability for Worker's Compensation or undertake self-insurance in accordance with the provisions of that code and I will comply with such provisions before commencing the performance of the work of this contract. · . Witness my hand this 9---~---- day of /kugust ,20 0___~_5 Signature of Bidder, with Business Address: ~s CO~ST~UCT~O~ COMP~q~ Dav~a ~ .... p.O. Box 50085 Watsonville, CA 95077 pavement Rehabilitation and Traffic Signal Loop Replacement 50 Spec. No. 05-0'7 CERTIFICATION 'OF NONDISCRIMINATION IN EMPLOYMENT The bidder represents that he or she has/has not, participated in a previous contract or subcontract subject to either the equal opportunity clause herein or the clause contained in Section 301 of Executive Order 10925; that he or 'she has/has not, filed all required compliance reports; and that representations indicating submission of required compliance prior to subcontract awards. Signature and address of Bidder: G~NS~UCTION COMP ~ANY 'David R.~ Grazian,'~A~,~i~tant Secretary Date August 9, 2005 P.O. Box 50085 Watsonville, CA 95077 (This certification shall be executed by the bidder in accordance with Section 60-1.6 of the Regulations of the President's Committee on Equal Employment Opportunity for implementing Executive Orders 10925 and 11114.) Pavement Rehabilitation and Traffic Signal Loop Replacement 52 Spec. No. 05-07 LIST OF PROPOSED SUBCONTRACTORS. In compliance with the provisions of Sections 4100-4108 of the State Government Code and any amendments thereof, each bidder shall set forth (a) the name and location of the place of business of each subcontractor who will perform work or labor or render service to the Contractor in or about the construction site in an amount in excess of one-half of 1 percent of the total bid and (b) the portion of the work to be done by each subcontractor. Pavement Rehabilitation and Traffic Signal Loop Replacement 54 Spec. No. 05-07 · STATEMENT OF EXPERIENCE OF BIDDER The bidder is required to' state below what work of similar magnitude or character he or she has done and to give references that will enable the City Council to judge of his or her experience, skill and business standing and his or her ability to conduct work as completely .and rapidly as required under the terms of the contract. See attached list of completed jobs. Pavement Rehabilitation and Traffic Signal Loop Replacement 56 Spec. No. 05-07 I. SIGNATURE(S) OF BIDDER Accompanying this proposal is Bidder' s Bond (insert the words "cash ($)", "cashier's check" or "bidder's bond", as the case may be) in an amount equal to at least 10 percent of the bid. The names of all persons interested in the foregoing proposal as principals are as follows: IMPORTANT NOTICE: If bidder or other interested person is a corporation, provide the legal name of · corporation and also the names of the president, secretary, treasurer and manager thereof. If a co-partnership, provide the true name of firm and also the names of all individual co-partners composing the firm. If bidder or other interested person is an individual, provide the first and last names in full. GRANITE CONSTRUCTION COMPANY 'William G. Dorey, President, Michael Futch, Secretary R.C. Allbritton, Treasurer, Chris Wolfe, North Coast Area Manager Licensed in accordance with an act providing for the registration of Contractors: License No. 89 , License Expiration Date May 31, 2007 Signature(s) of Bidder: O~S~RUCTION COMPANY David R. Gra~n.,~Q._~.ijAssistantS ecretary NOTE: If bidder is a corporation, the legal name of the corporation shall be set forth above together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if bidder is a co- partnership, the true name of the firm shall be set forth above together with the signature of the partner or partners authorized to sign contracts in behalf of the co-partnership; and if bidder is an individual, his or her signature shall be placed above. If a member of a partnership, a Power of Attorney must be on file with the Department prior to opening bids or submitted with the bid; otherwise, the bid will be disregarded as irregular and unauthorized. Businessaddress: P.O. Box 50085, Watsonville, CA 95077 I. Place of residence: N/A Dated August 9, 2005 Pavement Rehabilitation and Traffic Signal Loop Replacement 58 Spec. No. 05-07 CITY OF UKIAH Mendocino County, California BIDDER'S BOND KNOW ALL MEN BY THESE PRESENTS, GRANITE CONSTRUCTION COMPANY that we, _, as PRINCIPAL and Federal Insurance Company .... as SURETY, are held and firmly bound unto the City of Ukiah in the penal sum of 10 PERCENT OF THE TOTAL AMOUNT OF THE BID of the Principal above named, submitted by said Principal to the City of Ukiah, as the case may be, for the work described below, for the payment of which sum in lawful money of the United States, well and truly to be made, to the city Clerk to which said bid was submitted, we bind ourselves, our heirs, executors, administrators and successors jointly and_ severally, ~r.~lff. by th_ese, presents. I.n no case shall the liability of the surety hereunder exceed the sum of $ Ten ~ercent ~107o) o~ the total amount of the bid THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the Principal has submitted the above mentioned bid to the City of Ukiah, as aforesaid, for certain construction specifically described as follows, for which bids are to be opened at the Office of the City Clerk, Ukiah Civic Center, Ukiah, California, on August 9, 2005 for PAVEMENT REHABILITATION AND TRAFFIC SIGNAL LOOP REPLACEMENT, SPECIFICATION NO. 05-07. NOW, THEREFORE, If the aforesaid Principal is awarded the contract and, within the time and manner required under the specifications, after the prescribed forms are presented to him'or her for signatures, enters into a written contract, in the prescribed form, in accordance with the bid and files two bonds with the City of Ukiah, one to guarantee faithful performance and the other to guarantee payment for labor and materials, as required by law, then this obligation shall be null and void; otherwise, it shall be and remain in full force and virtue. IN WITNESS WHEREOF, we have hereunto set our hands and seals on this 9 day of August , A.D. 20 05 . GRANITE CON~T_RUCTION COMPANY DaVid R. Grazian,Q~ssistant Secretary (Seal) .(Seal) (Seal) Principal Federal ~_~a~e Co~ag~ 'John D///~li~and, Attorney-in-Fact, Surety (Seal) (Seal) (Seal) Address: 15 Mt. View Road, Warren, NJ 07059 Pavement Rehabilitation and Traffic Signal Loop Replacement Spec. No. 05-07 60 ii ii !I ACKNOWLEDGEMENT STATE OF CALIFORNIA } } COUNTY OF SANTA CRUZ } On this 4th day of August, 2005. before me, the undersigned Notary- public, personally appeared John D. Gilliland personally known to me OR [] proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Sign u~-ere-o~'~otaryPub~lic 5J~lq~- DENISE HARRIGAN Comm, 153854 ~NTA CR~ COU~ This Notice pertains to the following Surety Bond issued by a member Insurer of the Chubb Group of Insurance Companies, including Federal Insurance Company, Vigilant Insurance Company and Pacific Indemnity Company. Bond Number: N/^ POLICYHOLDER DISCLOSURE NOTICE TERRORISM RISK INSURANCE ACT OF 2002 You are hereby notified that pursuant to the Terrorism Risk Insurance Act of 2002 (the "Act") effective November 26, 2002, we are making available to you coverage for losses arising out of certain acts of international terrorism. Terrorism is defined as any act certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States, to be an act of terrorism; to be a violent act or an act that is dangerous to human life, property or infrastructure; to have resulted in damage within the United States, or outside the United States in the case of an air carrier or vessel or the premises of a United States Mission; and to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. Coverage for acts of terrorism is already included in the captioned Surety Bond. You should know that, effective November 26, 2002, any losses caused by acts of terrorism covered by your Surety Bond will be partially reimbursed by the United States under the formula set forth in the Act. Under this formula, the United States of America pays 90% of covered terrorism losses that exceed the statutorily established deductible to be paid by the insurance company providing the coverage. The portion of your premium that is attributable to coverage for such acts of terrorism is zero, because we could not distinguish (and separately charge for) acts of terrorism from other causes of loss when we calculated your premium. If you have any questions about this notice, please contact your agent or broker. ! Chubb POWER Surety OF ATTORNEY Federal Insurance Company Vigilant Insurance Company Pacific Indemnity Company Attn: Surety Department 15 Mountain View Road Warren, NJ 07059 Know All by These Presents, That FEDERAL INSURANCE COMPANY, an Indiana corporation, VIGILANT INSURANCE COMPANY, a New York corporation, and PACIFIC INDEMNITY COMPANY, a Wisconsin corporation, do each hereby constitute and appoint D~borah S. Jackson, R.C. AIIbdtton, John D, Gilliland and Jigisha Desai of Watsonville, California each as their true and lawful Attorney- in- Fact to execute under such designation in their names and to affix Iheir corporate seals to and deliver for and on their behalf as surety thereon or otherwise, bonds and undertakings and other wdtings obligatory in the nature thereof (other than ball bonds) given or executed in the course of business on behalf of Granite Construction Incorporated and all subsidiaries alone or in joint venture. in connection with bids, proposals or contracts to or with the United States of America, any State or political subdivision thereof or any person, firm or corporation. And the execution of such bond or obligation by such Attorney- in- Fact in the Company's name and on its behalf as surety thereon or otherwise, under its corporate seal, in pursuance of the authority hereby conferred shall, upon delivery Ihereof, be valid and binding upon the Company. In Witness Whereof, said FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY have each executed and attested these presents and affixed their corporate seals on this 25th day of March, 2005 STATE OF NEW JERSEY ss. County of Somerset On this 25th day of March, 2005 before me, a Notary Public of New Jersey, personally came Kenneth C. Wendel, to me known to be Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY, Ihe companies which executed the foregoing Power of Attorney, and the said Kenneth C. Wendel, be[ng by me duly sworn, did depose and say that he is Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMP.ANY, and PACIFIC INDEMNITY COMPANY and knows the corporate seals thereof, that the seals affixed to the foregoing Power of Affomey are such corporate seals and were thereto affixed by authority of the By. Laws of said Companies; and that he signed said Power of Attorney as Assistant Secretary of said Companies by like authority;, and that he is acquainted with John P. Smith, and knows him to be Vice President of said Companies; and that the signature of John P. Smith, subscribed to said Power of Attorney is in the genuine handwriting of John P. Smith, and was thereto subscribed by authority of said By- Laws and in deponent's presence. Notarial Seal STEPHEN B. BRADT ~_~ ~/~ Nofory Public, State of New Jersey No. 2321097 ~--- Commi~ion Exp~ree Od. 25, 2009 . \\ ~PU BL\ ~ ~ Notary Public CERIIFICATION Extract from the By- Laws of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMPANY, and PACIFIC INDEMNITY COMPANY: "All powers of attorney for and on behalf of the Company may and shall be executed in the name and on behalf of the Company, elther by the Chairman or the President or a Vice President or an Assistant Vice President, jointly with the Secretary or an Assistant Secretary, under their respective designations. The signature of such officers may be engraved, printed or lithographed. The signature of each of the following officers: Chairman, President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary and the seal of the Company may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing Assistant Secretaries or Attorneys- in- Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such power of attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached." I, Kenneth C. Wendel, Assistant Secretary of FEDERAL INSURANCE COMPANY, VIGILANT INSURANCE COMP. ANY, and PACIFIC INDEMNITY COMPANY (the 'Companies") do hereby certify that (i) the foregoing extract of the By- Laws of the Companies is true and correct, (ii) the Companies are duly licensed and authorized to transact surety business in all 50 of the United States of America and the District of Columbia and are authorized by the U.S. Ti'easury Department; further, Federal and Vigilant are licensed in Puerto Rico and the U.S. Virgin Islands, and Federal is licensed in American Samoa, Guam, and each of the Provinces of Canada except Prince Edward Island; and (iii) the foregoing Power of Attorney Is true, correct and in full force and effect. Given under my hand and seals of said Companies atWarren, NJ this 4th day of August, 2005. NTHE EVENT YOU WISH TO NOTIFY US OF A CLAIM, VERIFY THE AUTHENT[CTTY OF THIS'BOND OR NO'I'[FY US OF ANY OTHER MA'CI'ER, PLEASE ONTACT US AT ADDRESS USTED ABOVEf OR BY Telepho. n.e (9p8) 903- 3493 Fa..x...(908) 903- 3656 e-mail: surety@ chubb.com Form 15-10- 0154[~- U (Rev. 10-02) CORP CONSENT NON-COLLUSION AFFIDAVIT Note: Bidder shall execute the affidavit~ on this page prior to submitting his or her bid. Executed at North Coast Area Office by To City Council, City of Ukiah: The undersigned in submitting a bid for performing PAVEMENT REHABILITATION AND TRAFFIC SIGNAL LOOP REPLACEMENT, SPECIFICATION NO. 05-07 by contract, being duly sworn, deposes and says: that he or she has not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with such contract. Business Address: GRANITE CONiTRUCTION COMPANY David R. Grazian, Assistant Secretary Signature(s) of Bidder P.O. Box 50085 Watsonville, CA 95077 Place of Residence: N/A NOTARIZATION Subscribed and sworn to before me this 9 day of Augsut ,2005 . Notary Public in and for the County of ~anca Cruz State of Cali£o. mia. My Commission Expires December, 25 Pavement Rehabilitation and Traffic Signal Loop Replacement __, 20 05 62 LLI f n Z O0 Attachment # _ C~ ..... o §§ ~ ooooo~oo o~ I~ ~ o ~ ~ooo~oo o~ ~ o ...... ~g oo6~''s~ '~~~i'~~ooo~o o~ ~ ~'~~~'§§O~~oooooo~ ~:~ ............... ~ ..... ~~' ~o ,o° ~ ° o z ~ ~ ~. ................. g ......... oo §~ § ooo~ ~'' ~ , , ~ 0 u~ ~ ~ 0 0 , 0 ~ oo~ ~ ~ . ,0 .,,.-,0~~000~00 O~ ~ 00~0000~0~ 0 0~~ 0 O~ ~000~0 O~ ~ 00~000000~ O0 ~ ~ , o om ~ooo~mo o~ ~ oo~oooo.o~ mq m~ ~ !0 _ ~ o o o o o o o ......... ~ ~ o ~ ~ ~ ~ ~ ~ g,o ~ ~ ~ ~ ~ ~ ~ ~ .:.:.:~ ............... o o ~ ~ o ~ ~ ~ o o .... o ~ ~ ~ ::::::~i_= .... ... .... E o o ~ o o o o o ~ ~ ....... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~,~ ~ ~ ~!~ -- ooooooiooooooooooooooooooooooooolooOoo oo AGENDA SUMMARY ITEM NO. 6b DATE: August 17, 2005 REPORT SUBJECT: AWARD OF CONTRACT TO TRAFFIC LIMITED FOR STREET STRIPING 2005, SPECIFICATION NUMBER 05-06 IN THE AMOUNT OF $19,926.55 SUMMARY: The City distributed specifications to ten builder's exchanges and ten contractors for the annual street striping contract. The City publicly advertised this project on July 17, 2005 and July 21,2005 in the Ukiah Daily Journal. Two sealed proposals were received and opened by the City Clerk on August 9, 2005. The lowest responsive, responsible bidder is Traffic Limited of Lodi, California with a total bid of $19,926.55. The Engineer's Estimate for the project is $21,894.65. The City budget is $20,000 for this project. If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head with approval of the City Manager to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. RECOMMENDED ACTION: Award the contract for Street Striping 2005, Specification No. 05-06, to Traffic Limited in the amount of $19,926.55. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Reject all bids and direct staff to readvertise for bids. 2. Determine street striping for public safety of City maintained streets is not necessary and provide direction to staff. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Diana Steele, Director of Public Works/City Enginee ,~j~;u~ Rick Seanor, Deputy Director of Public Works l~ Candace Horsley, City Manager Diana Steele, Director of Public Works/City Engineer 1. Bid Tabulation 2. Bid Proposal from Traffic Limited 3. Fiscal Year 2005~2006 Budget Sheet A PPR O V ED:'''~'~ "'-'"'~ Canda~,e Horsley, City Manager AG-striping-2005.SUM ,i 8 ~ d BIDDING SCHEDULE In case of discrel3 ancy between words and fic/ures, the words shall ~il. ITEM NO. QUANTITY DESCRIPTION AND~UNIT PRICE BID EXTENDED AMOUNT FOR ITEM (in words and in figures). ,. (in figures) Broken White 4" Painted.Traffic Stripe for the price :)er linear foot of o {:;)~ $ ,~ · ~'~'~ I 5,776 LF ($ ) Broken Yellow 4" Painted Traffic Stripe for the price per linear foot of o 0 ~ $ 2 88,209 LF ($_ Solid White 4" Painted Traffic Stripe for the price per linear foot of · 0"~ $ 3 4,648 LF ($ ) Solid Yellow 4" Painted T.~,,affic Stripe for the price per linear foot of . O ~ $ ~) '~. ~'I 4 12,813 LF ($ .) Solid White 8" Painted Traffic Stripe for the price per linear foot of ,, ~ $ 5 3,998 LF ($ ) Double Yellow P~inted Traffic Stripe for the price per linear foot of _. ! ~O $ 6 29,122 LF .($ ,) Two Way Left Turn Lane (yellow) Painted Traffic Stripe for the price pe,r.linear foot of ,~ ~'. ~:~ $. 7 5,848 ($ ) Bike Lane 4" White Painte~d Traffic Stripe for the price per linear foot of ~ O ~ 8 35,084 LF .($ ) Bike Lane 6" White Pain~d,,,Traffic Stripe for the price per linear foot of 9 47,967 LF ($ YelloW No Passing Zone 4-inch Painted Traffic Stripe per linea oot for the price '~' .[ ~ of $ / ,~o 10 882 LF ($ ) , TOTAL BASE BID AMOUNT ==-) Tota, I bid amount in words:,~ Spec. NO. 05-06 26 Street Striping-2005 . We, the undersigned, acknowledge that the City Council has reserved the rigl(t to reject any or all bids or to select the base bid plus any additive bid item or combination of additive bid items and to determine which proposal is, in its opinion, the lowest responsible bid of a responsible bidder'and that which it deems in the best interest of the City to accept. We, the undersigned, further agree, if this proposal shall be accepted, tO sign the agreement and to furnish the required bonds with satisfactory surety, or sureties, within fifteen (15) calendar days after written notice that the contract is ready for signature; and, if th~ undersigned shall fail to contract, as aforesaid, it shall be understood that he or she has abandoned the contract and that,'therefore, this proposal shall be null and void and the proposal guaranty accompanying this proposal, or the amount of said guaranty, shall be forfeited to and become the property of the City. Otherwise, the proposal guaranty accompanying this proposal shall be returned to the undersigned. Witness our hands this day of Licensed in accordance with an act/providing for the registration of California Contractors License No. ,/-/'~/t~ ~_~' , expiration date ,g~/O~ . ' THE CONTRACTOR'S LICENSE NUMBER AND EXPIRATION DATE STATED HEREIN ARE MADE UNDER PENALTY OF PERJURY. Signature of bidder or bidders, with business address, phone number and fax number: )77.1 ,¢1 Notice: In the case of a corporation, give below the addresses of the principal office thereof and names and addresses of the President, SecretaW, Treasurer. Street Striping 2005 27 Spec. No.-05-06 . FAIR EMPLOYMENT PRACTICES CERTIFICATION TO: The undersigned, in submitting a bid for performing the following work by Contract, hereby certifies that he or she has or will meet the standards of affirmative compliance with the Fair Employment Practices requirements of the Special Provisions contained herein. STREET STRIPING 2005 (Signature,S) f~~ Business Mailing Address: Business Location' (The bidder Shall execute the certification of this page prio'r to submitting his or her proposal.) Spec. No. 05-06 28 Street Striping-2005 WORKER'S COMPENSATION CERTIFICATF I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for Worker's Compensation or undertake self-insurance in accordance with the provisions of that code and I will comply with such provisions before commencing the performance of the work of this contract. Witness my hand this day of /:::~. ,_~ , 200 Signature of Bidder, with Business Address: Street Striping 2005 29 Spec. No. 05-06 CERTIFICATION OF NONDISCRIMINATION IN EMPLOYMENT The bidder represents that he or she a~_~as not, participated in a previous contract or subcontract subject to either the equal opportunity clause hereto or the clause contained in Section 301 of Executive Order 10925; that he or she has/has not, filed all required compliance reports; and that"representations indicating submission of required compliance prior to subcontract awards. Signature and address of Bidder: (This certification shall be executed by the bidder in accordance with Section 60-1.6 of the Regulations of the President's Committee on Equal Employment Opportunity for implementing Executive Orders 10925 and 11114.) Spec. No. 05-06 30 Street Striping-2005 LIST OFPROPOSED SUBCONTRACTORS In compliance with the provisions of Sections 4100-4108 of the State Government Code and any amendments thereof, each bidder shall set forth (a) the name and location of the place of,business of each subcontractor who will perform work or labor or render service to the Contractor in or about the construction site in an amount in excess of one-half of 1 percent of the total bid' and (b) the portion of the work to be done by each"subcontractor. Street Striping 2005 31 ' Spec. No. 05-06 STATEMENT OF EXPERIENCE OF BIDDER idder is required to state below what work of similar magnitude or character he or she has done and to give ;nces that will enable the City Council to judge of his or her experienc, e, skill and business standing' and his ability to conduct work as completely and rapidly as required under the terms of the contra,ct. No. 05-06 32 Street Striping-2005 SIGNATURE(S) OF BIDDER (insert the words "cash ($)", "cashier's check" or "bidder's bond", as the cas~ may be) in an amount equal to at least 10 percent of the bid. The names of all persons interested in the foregoing proposal as principals are as follows: IMPORTANT NOTICE: If bidder or other interested person is a corporation, provide the legal name of corporation and also the names of the president,' secretary, treasurer and manager thereof. If a co-partnership, provide the true name of firm and also the names of all individual co-partners composing the firm. If bidder or other interested person is an individual, provide the first and last names in full. Licensed in accordance with an act providing for the registration of Contractors: License No. /"'ir ~'' ] ~ ~ ~ Signature(s) of Bidder: .... License Expiration Date_ NOTE: If bidder is a corporation, the legal name of the corporation shall be set forth above together with the signature of the officer or officers authorized to sign contracts on behalf of the corporation; if bidder is a co-partnership, the true name of the firm shall be set forth above together with the signature of the partner or partners authorized to sigh contracts in behalf of the co-partnership; and if bidder is an individual, his or her signature shall be placed above. If a member of a partnership, a Power of Attorney must be on file with the Department prior to opening bids or submitted with the bid; otherwise, the bid will be disregarded as irregular and unauthorized. , Business address: ~-0. ~0~ /'-~ ~-- ) Place of residence: Dated: I Street Striping 2005 33 Spec. No. 05-06 CITY OF UKIAH Mendocino Coun. ty, California BIDDER'S BOND KNOW ALL MEN BY THESE PRESENTS, That we, TRAFFIC LINITED , , as PRINCIPAL and t,IESTERN SURETY COFIPANY , as SURETY, are held and firmly bound unto the City of Ukiah in the penal sum of 10 PERCENT OF THE TOTAL AMOUNT OF THE BID of the Principal above named, submitted by.said Principal to the City of Ukiah, as the case may be, for the work described below, for the payment of which sum in lawful money of the United States, well and truly to be made, to the City Clerk to which said bid was submitted, we bind ourselves, our heirs, executors, administrators and successors jointly and severally, firmly by these presents. In no case shall the liability of the su.rety_h~reu.nde[ exceed the sum ors TEN__PERCENT OF THE TOTAL ANOUNT OF THE BID (10~ of bhe f. oEa'l amount; or r. ne azo,~ THE CONDITION OF THIS OBLIGATION IS SUCH, That whereas the Principal has submitted the above mentioned bid to the City of Ukiah, as aforesaid, for certain construction specifically described as follows, for which bids are to be opened at the Office of the City Clerk, Ukiah Civic Center,' Ukiah, California, on August 9, 2005 for STREET STRIPING 2005 NOW, THEREFORE, If the aforesaid Principal is awarded the contract and, within the time and manner required under the specifications, after the prescribed forms are presented to him or her for signatures, enters into a written contract, Jn the prescribed form, in accordance with the bid and files two bonds with the City of Ukiah, one toguarantee faithful performance and the other to guarantee payment for labor and materials, as required by law, then this obligation shall be null and void; otherwise, it shall be and remain in full force and virtue. IN WITNESS WHEREOF, we have hereunto set our hands and seals on this 21st day of 3ULY A.D. 2005 ATTORNEY-IN-FACT I,J'r:5'.,._..~T[RN SURETY' COI'IPANY Surety Address: (Seal) ;(Seal) __(Seal) (Seal) ._(Seal) (Seal) 2998 DOUGLAS BLVD. ~140 ROSEVILLE, CA 95661-4211 Spec. No. 05-06 34 Street Striping-2005 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of Sacramento On 3ULY Z~s~, ZOOS before me, Nicki S. Moon, Notary Public, personally appeared ~David Weise , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s), whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (les), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WZTNESS MY HAND AND OFFICIAL SEAL. (Signature of Notary Public) Wes[ern Surety Company A Subsidiary of CNA Surety. Corporation POWER OF A'I-I-O'RNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know. All Men By These Presents, That WESTERN SURETY COMPANY, a South Dakota corporation,, is a.dLJly organized and'existing CorPoration having its'principal office in the .city of Sioux Falls, and. State of.South Dakota,'ar~d-that it does by virtue of the sighature and seal ' herein affixed 'hereby make, 'conStitute and appoint ' David Wei'se, NiCki Orr~ Steven J. Reeves, Individually · . · of Lodi, California its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred to sign', seal and execute"fbr and on its behalf bonds, undertakings and other obligatory instruments of similar nature. - In Unlimited Amounts - be hereto affixed .on this . and to bind it thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the corporation and all the acts of said Attorney, pursuant to the authority hereby given, are hereby ratified and confirmed. ' This Power of Attorney is made and executed pursuant to and by authority of the By-LaTM printed on the reverse hereof, duly adopted, as indicated, by the shareholders of the corporation. ' ' In Witness Whereof, WESTERN SURETY COMPANY has caused these presents to be signed by its President and its corporate Seal to 22nd dayof September 1999 State of South Dakota } County of Minnehaha ss On this 2 2nd W E ~~_~/~ .,~...R E T Y C MOt~~NY · - . w StepHen T. Pate, President day of September , 1 99 9 before me personally came Stephen T. Pate,'to me known, who, being, by me d. uly sworn, ~did depose and say: that he reSides in'the City of Sioux Falls, state of South Dakota; that he is the President of WESTERN SURETY COMPANY described in and which executed th.e above instrument;/.hat he knows, the seal Of said corporation; that the seal affixed to the said instrument ~s such corporate Seal; that it was so affixed pursuant to authority given by the Board of Directors of said corporation and that he signed his name' thereto pursuant to like authority, and acknowledges same to be the act and deed of said corporation. My commission expires· November 30, 2000 D. Krell, Notary Public CERTIFICATE · .; I~ L. Nelson, Assistant-Secretary of WESTERN SURETY COMPANY do hereby certify that the poWer of. Attorney hereinabove set forth is · still in force, and further certify that the By-Law of the corporation printed on the reverse hereof is still in for'ce, in testimony whereof I have hereunto subscribed my name and affixed the seal.of the said corporation this 21st; 3ULY 2005 day of west. SURETY COMPANY '~L-~el~o~, ~sistant sect ary . et Form' F4280 N AFFIDAVI~T Note: Bidder shall execute the affidavit on this page prior to submitting his or her bid. To City Council, City of Ukiah: The undersigned in submitting, a bid for performing STREET STRIPING 2005 by contract, being duly sworn, deposes and says: that he or she has not, either directly or indirectly, entered into any-agreement, participated in any collusion, or otherwise taken.any action in restraint of free competitive bidding in connection with such contract. Place of Residence: State of California [ ss. County of San Joaquin Subscribed and sworn to (or affirmed) before me on this ~ day of ~k~_ ~j~q~.~ , by ~~. o_X~X.~\\ .Oh, k~~ , personally ~own to me or proved to me on the basis of satishctou evidence~to be the person~ wWo appe~ed before me. - ~\ Comm,#1344628 ~'[~,~._~ NOTAI~Y PUBLIC- CALIFORNIA. ~J]_, ~,, ~,~'-~'~/,/ San Joaqum County I-. Z Attachment AGENDA SUMMARY REPORT ITEM NO. ~ / DATE: Au.qust 17, 2005 SUBJECT: NOTIFICATION OF BID AWARD TO FOXCROFT EQUIPMENT AND SERVICES IN THE AMOUNT OF $5,148.00 PLUS FREIGHT TO PURCHASE TWO CHLORINE GAS DETECTORS Submitted for the City Council's notification is the bid award to Foxcroft Equipment & Service in the amount of $5,148.00 plus freight toward the purchase of two chlorine gas detectors. These detectors will be placed at two remote sites for the early detection of any chlorine gas leak. This will enable both public safety and water treatment plant personnel to respond more quickly thus helping to minimize any risk to the general public. There were three bids received with Foxcroft being the lowest. The expense for the chlorine gas detectors will be funded through the approved budget under 820.3908.302.000. (Cont'd on page 2) RECOMMENDED ACTION: Receive notification of bid award to Foxcroft Equipment & Service in the amount of $5,148.00 plus freight. ALTERNATIVE COUNCIL POLICY OPTION: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Bernie Ziemianek, Director of Public Utilities Alan Jamison, Water Treatment Plant Supervisor Candace Horsley, City Manager None APPROVED:' Candace Horsley, City Ma~,er BIDS FOR CHLORINE GAS DETECTOR Foxcroft Equipment & Service 2101 Creek Rd. Glen Moore, PA $4800.00 348.00 $5148.00 tax Ken Grady Company 85 Galli Dr., Suite D Novato, CA $7175.50 520.23 $7695.73 tax Sierra Monitor Corp. 1991 Tarob Ct Milpitas, CA $9815.80 711.65 $10,527.45 tax ITEM NO. 6.i DATE: Auqust 17, 2005 AGENDA SUMMARY REPORT SUBJECT: AWARD OF BID TO TOMARK SPORTS FOR THE PURCHASE OF BLEACHERS FOR THE UKIAH SOFTBALL COMPLEX IN AN AMOUNT OF $17,544. SUMMARY: In 2002, the City of Ukiah was awarded a competitive grant from the State of California Department of Parks and Recreation for improvements at the Ukiah Softball Complex. Funding was specifically awarded for the construction of the third softball field and additional complex upgrades including new bleachers for each of the fields. The existing bleachers are failing and do not have a guardrail system. In accordance with City of Ukiah purchasing policies, the City's purchasing supervisor issued a request for bid to all known vendors who sell bleachers. In addition, a public notice was published in the Ukiah Daily Journal on July 17th and 22nd. (Continued on Page 2) RECOMMENDED ACTION: Award bid to Tomark Sports for the purchase of bleachers in the amount of $17,544. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine the purchase of bleachers for the Ukiah Softball Complex is inappropriate at this time and reject all bids. 2. Select an alternate bid from those submitted. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A N/A Sage Sangiacomo, Community/General Services Director Candace Horsley, City Manager, Mary Horger, Purchasing Supervisor and Jake Burgess, Sports Coordinator. N/A APPROVED': r Three companies responded to the request for bid by the August 2nd deadline with Tomark Sports submitting the Iow bid in the amount of $17,544 for 6 aluminum bleachers. Refer to the following table for a complete summary of bids. Company Collegiate Pacific Discounter Quote $17,700 Montgomery Marketing $19,825 Tomark Sports $17,544 The cost of the bleachers will be charged to the 140.6050.800.004 account (Park Development Fund - Softball Complex Renovation Project) and will be reimbursed by the Roberti-Z'Berg-Harris Nonurbanized Area Need Basis grant. AGENDA SUMMARY REPORT ITEM NO.: DATE: August 17, 2005 SUBJECT: ADOPTION OF AN ORDINANCE TO CHANGE THE ZONING DISTRICT FOR THE LANDS DESIGNATED AS ASSESSOR PARCEL NO. APN 001-430-35 SUMMARY: The Housing Company applicants are proposing to develop a creative infill housing complex that will require the approval of multiple applications to allow the establishment of a planned development designation that will allow the unique lot sizes and other development standards necessary to do so. The first step in completing the PD process was the submittal of General Plan Amendment-Rezone No. 05-12, which would allow the General Plan land use designation for the 1.04- acre subject property to be changed from HDR (High Density Residential) to LDR (Low Density Residential). It would also allow these same lands to be rezoned from R-3 (High Density Residential) to R-1 PD (Low Density Residential-Planned Development Combining District). On September 3, 2005, the City Council conducted a public hearing regarding the General Plan Amendment-Rezone component of the project. After discussion of the project, the Council voted 5-0 to approve the Negative Declaration prepared for the project and a Resolution to change the General Plan land use designation. The Council also voted 5-0 to introduce an Ordinance to change the zoning district for the project site to R-1 PD Combining District, effectively establishing zoning criteria that will allow the development of the unique housing complex proposed by the Housing Company. The purpose of this agenda item is to adopt the Ordinance changing the zoning on the site to R-1 PD, which will allow action on subsequent major subdivision map and site development permit applications that are required to fully establish the planned development. RECOMMENDED ACTION: 1. Adopt the.Ordinance rezoning the affected lands from the R-3 Zoning District to the R-1 PD Zoning District. ALTERNATIVE COUNCIL POLICY OPTION: 1. Do not adopt the Ordinance and provide direction to staff. Citizen Advised: Legal notice published in the Ukiah Daily Journal Requested by: Mr. Bruce Shimizu and Housing Company Prepared by: Dave Lohse, Associate Planner Coordinated with: Candace Horsley, City Manager and Charley Stump, Planning Director Attachments: 1. Location Map 2. Rezone Ordinance APPROVED: Candace Horsley, ~i~Manager · 1:" LOCATION MAP A~achment #. · SHIMIZU/H.,,.0USING.; COMPANY DEVELOPMENT. ZONE.i3HANGE No. 05'12; SITE. D~q~LOPMENT PER, iT No. 05-i3; and ' M/f~JOR SUBDIVISION MAP N°..05.17 506-510 Low Gap Road Assessor Parcel No. 001.430.35 SCHOOL UNiClPAL'. .. so0 ~ooo'- ,, ~s,,oo ,,, 2000. · . .' A~]~toXrMAT~ SCAL~: ~ iach= SOO feet IRC l~erral for S~i~i/Ho.using Corp ZC/M~jor S~:~ ~ Attachment ~ l- 300' Attachment DRAFT COPY ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING THE OFFICIAL ZONING MAP FOR THE CITY OF UKIAH, CALIFORNIA The City Council of City of Ukiah does hereby ordain as follows: SECTION ONE Pursuant to the procedures set forth in Section 9009 of the Ukiah Municipal Code, the Official Zoning Map for the City of Ukiah is amended to change the zoning on a 1.04-acre property at 506-510 Low Gap Road (Assessor Parcel Number 001-430-35) in the City of Ukiah from the R-3 (High Density Residential) Zoning District to the R-1 P-D (Low Density Residential-Planned Development) Combining Zoning District. SECTION TWO This rezoning action and amendment to the Official Zoning Map of the City of Ukiah is necessary to establish more flexible development standards for lot size, lot width, and yard areas for the development of a creative planned development with twelve individually-owned homes. SECTION THREE The City of Ukiah conducted an Initial Study to ascertain if the proposed General Plan Amendment would have significant adverse impacts on the environment and concluded that the proposed General Plan Amendment project would not have a significant adverse effect on the environment and is recommending the adoption of a Negative Declaration for the Shimizu/Housing Company General Plan Amendment Project; SECTION FOUR This ordinance shall be published as required by law in a newspaper of general circulation published in the City of Ukiah. SECTION FIVE This Ordinance shall become effective thirty (30) days after adoption. Introduced by title only on ,2005 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Passed and adopted on AYES: NOES: ABSENT: ABSTAIN: 2005, by the following vote: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk AGENDA SUMMARY REPORT ITEM NO.: 8a DATE: Auqust 17, 2005 SUBJECT: ADOPTION OF RESOLUTIONS APPROVING MAJOR SUBDIVISION MAP NO. 05-17 MAJOR SITE DEVELOPMENT PERMIT NO. 05-13 SUMMARY: The Housing Company applicants are proposing to develop a creative infill housing complex on an irregular-shaped lot located near the corner of Low Gap Road and Bush Street. In order to accommodate this development project with the unique planned development standards proposed, the applicants recently processed an amendment to the General Plan land use designation and a rezone to establish a planned development, and are now seeking the City Council's support of subsequent applications to approve a 12-unit subdivision of the site and the development of twelve single-family residences on these lots. Proposed Conditions: The approval of Major Subdivision Map No. 05-17, as submitted by the Housing Company, will allow the division of the 1.04-acre site into 12 parcels with areas measuring between 2,150 square feet to 9,750 square feet, and an average lot size of approximately 3,767 square feet. The proposed subdivision also includes the development of a 20-foot wide access driveway and overflow parking spaces on the narrow portion of the lot, from the Low Gap Road frontage to a hammerhead turnaround from which individual driveways will extend. This access driveway will also provide ingress and egress to two abutting lots located southeast of the project site. (continued on Pa.qe 2) RECOMMENDED ACTION:1. Conduct a public hearing regarding Major Site Development Permit No. 05-13 and Major Subdivision Map No. 05-17; 2. Approve the Negative Declaration prepared for the projects, 3. Adopt the Resolution approving the tentative subdivision map to divide the subject property into 12 lots; and 4. Adopt the Resolution approving the Site Development Permit to develop a single-family planned development. ALTERNATIVE COUNCIL POLICY OPTION: 1. Do not adopt the Resolution or introduce the Ordinance and provide direction to staff. Citizen Advised: Legal notice published in the Ukiah Daily Journal Requested by: Mr. Bruce Shimizu and Housing Company Prepared by: Dave Lohse, Associate Planner Coordinated with: Candace Horsley, City Manager and Charley Stump, Planning Director Attachments: 1. Location Map 2. Proposed Resolution for Approval of Tentative Subdivision Map No. 05-17; 3. Proposed Resolution for Approval Major Site Development Permit No. 05-13; 4. Exhibit Package with Development Plan; Tentative Map; Elevations/Floor Plans; and Landscape Plan APPROVED: Candace Horsley, ~ty Manager The approval of Major Site Development Permit No. 05-13 will allow the development of 12 single-family homes on the lots described above. This housing project will also include the development of a common access driveway from Low Gap Road and a common-use pedestrian sidewalk to Bush Street. Background: As noted in the Agenda Summary prepared for the General Plan Amendment/Rezone component of the Housing Company project, the project site was originally developed with two single- family residences that were removed in anticipation of an approved apartment complex that was not developed. The current owners are proposing to develop a less intense residential development with an emphasis on creating a single-family atmosphere. On August 3, 2005, the City Council approved a Resolution to allow the amendment of the General Plan land use designation from HDR (High Density Residential) to LDR (Low Density Residential) in order to accurately reflect the single-family design concept. The Council also voted to introduce an Ordinance to change the zoning on the site from the R-3 (High Density Residential) Zoning District to R-1 (Low Density Residential) Zoning District, and a separate agenda item to allow the adoption of the rezone Ordinance is scheduled for action by the Council prior to any actions on this agenda item. Staff Analysis: In analyzing the proposed Subdivision and Site Development Permit projects, staff determined that the proposed lot sizes for each of the 12 lots proposed will vary considerably from the standard R-1 Zone lot size of 6,000 square feet. In fact, as the information in Table 1 below shows, only two of the lots would comply with this standard lot size and both of these lots will be used for the development of a private joint access roadway that will provide ingress and egress from the Low Gap Road frontage, with the majority of lots having areas of less than 3,000 square feet. Table 1: Proposed Lot Areas and Dimensions for Shimizu-Housing Company Planned Development Lot Area Width Ground Floor Area Front Yard* Rear Yard Side Yards Street Front 1 6,990 sq.ft. 35-45 ft. 654 sq.ft. 7 ft. 13 ft. 5 ft. & 5 ft. 20 ft. 2 4,180 sq.ft. 40 ft. 654 sq.ft. 10 ft. 10 ft. 5 ft. & 5 ft. none 3 2,510 sq.ft. 28-60 ft. 653 sq.ft. 10 ft. 9 ft. 0 ft. & 4 ft. none 4 2,370 sq.ft. 39 ft. 654 sq. ft. 15 ft. 8 ft. 0 ft. & 10 ft. none 5 2,550 sq.ft. 39 ft. 654 sq.ft. 20 ft. 7 ft. 0 ft. & 10 ft. none 6 2,150 sq.ft. 33-38 ft. 655 sq.ft. 0 ft. 13 ft. 0 ft. & 4 ft. none 7 3,260 sq.ft. 39 ft. 655 sq.ft. 7 ft. 18 ft. 5 ft. & 5 ft. none 8 3,130 sq.ft. 39 ft. 655 sq.ft. 7 ft. 15 ft. 5 ft. & 5 ft. none 9 2,990 sq.ft. 39 ft. 655 sq.ft. 7 ft. 13 ft. 5 ft. & 5 ft. none 10 2,920 sq.ft. 41 ft. 654.5 sq.ft. 0 ft. 12 ft. 5 ft. & 11 ft. none 11 2,400 sq.ft. 49 ff. 654 sq.ft. 0 ft. 9 ft. 5 ft. & 10 ft. none 12 9,750 sq.ft. 60 ft. 655 sq.ft. 5 ft. 20 ft. 5 ft. & 10 ft. 21 ft. In order to develop the proposed single-family residential units on this lot, the applicants have designed buildings with ground floor areas of 654-655 square feet and second stories with only 426-582 square feet. Despite the smaller building footprints, all of the structures effectively utilize traditional single-family residential designs and materials that include vertical concrete-board siding and pitched composition roofs. The designer has also added a variety of more unique features that are expected to make the individual buildings and the subdivision more attractive, including a wide variation in roof heights and pitches, offset walls on both stories, covered porches, decorative trusses, and gable roofing over windows, doorways, and porches. The yard areas for the proposed lots will also be smaller than normal, with a wide variety of building setbacks that include zero lot lines on several of the side yard setback areas. However, all of the lots have one or more yard area that provides space for yards, gardens, patios, porches, or other outdoor recreation areas. These yard areas will all be fenced to provide a degree of privacy. The conceptual landscaping plan for the site places the majority of new landscaping in the perimeter areas of the lot, including comprehensive plantings of drought-tolerant trees and shrubs along Low Gap Road and the boundary fronting the Bush Street corridor. Smaller trees will be planted in the front yard areas for each lot, with rear yard areas left unplanted to allow future property owners personal choices in the design of the landscaping and the types of plants used. Planning Commission Action: The Ukiah Planning Commission conducted a public hearing that included a review of the General Plan Amendment/Zone Change, the Major Subdivision Map, and the Site Development Permit on June 22® of this year. The Commission took testimony from the applicants and members of the public and discussed a variety of issues before acting on the projects. They then recommended that the City Council adopt the Mitigated Negative Declaration prepared for the project and approve all components, including Major Subdivision Map No. 05-17 and Major Site Development Permit No. 05-13. These recommendations for approval were based on the specific findings listed below and with the recommended conditions of approval outlined in the attached draft Resolutions. Recommended Findings for Major Site Development Permit No. 05-13: The Planning Department and Planning Commission recommendations for approval of the Major Site Development Permit are based, in part, on the following findings: . The proposed single family units and surrounding grounds, as conditioned, are consistent with the Ukiah General Plan since they comply with the goals and policies for the siting of new development in the Land Use Element's LDR (Low Density Residential) land use classification and with Housing Element goals for infill development and the creative and flexible development of alternative housing types, and will cause no conflicts with the goals and policies listed in other General Plan Elements; , The proposed single family units and surrounding grounds, as conditioned, would be consistent with the R-1 PD Combining District established for the site, including the approved Development Plan for the property; . There is sufficient variety, creativity, and articulation in the architecture of the proposed single family residential structures and the design of the surrounding grounds to avoid monotony or any box-like external appearance and are generally consistent with, or more attractive than, the design and scale of similar residential structures in the surrounding neighborhood; . The location, size, and intensity of the housing complex would not create hazardous or inconvenient impacts to existing vehicular traffic patterns since its development will not cause substantial traffic volume increases or alter existing traffic patterns in a substantial manner; , The accessibility of off-street parking areas on each lot and the relation of these parking areas with respect to traffic on adjacent streets will not create a hazardous or inconvenient condition to adjacent surrounding uses since the proposed residential complex will have improved ingress and egress across a private access roadway between the residential units and Low Gap Road; . The location, size, and intensity of the project will not create hazardous or inconvenient impacts to pedestrian traffic since its development plan includes multiple pedestrian walkways between the residential units and the public sidewalks abutting Low Gap Road and Bush Street; 7. Sufficient landscaped areas and open spaces have been reserved for purposes of separating or screening the proposed structures from each other and from adjoining properties; , The proposed single family residential buildings will not cut out light or air on the property since the buildings would be constructed along the perimeter areas of the property and would be set back far enough from properties to the north to limit adverse shading patterns on abutting lots; 9. The proposed multiple-family residential development will not cause excessive damage to or destruction of natural features on the site since there are no such substantial resources present. 10. The development of the single family residential planned development will cause no significant adverse environmental effects that will not be mitigated by measures designed to reduce their impact to levels of insignificance, as determined in the Negative Declaration and Initial Study prepared for the project; and 11. The development of this property with single family residences will not have a substantial detrimental impact on the character or value of an adjacent residential zoning district since the proposed planned development is a substantial improvement to existing conditions and will utilize attractive building and site designs that are compatible with surrounding development; Recommended Findings for Major Subdivision Map No. 05-17: The Planning Department and Planning Commission recommendations for approval of the Major Subdivision Map are based, in part, on the following findings: 1. The division of the property into twelve parcels is consistent with the requirements outlined for major subdivisions in the California Subdivision Map Act; . The division of the property into twelve parcels is consistent with the Ukiah General Plan since the single family housing complex will be consistent with Land Use Element criteria for Iow to medium density residential land uses and Housing Element implementation measures that encourage creativity and flexibility in establishing new housing situations; 3. The division of the property into twelve parcels, as conditioned, is consistent with the applicable Type I subdivision standards of the Ukiah Subdivision Ordinance; . The division of the existing property into twelve parcels is consistent with the modified use and development standards of the R-1 (Low Density Residential) Zoning District and with the purpose and intent of the PD Combining Zone criteria established for this parcel, which allows greater flexibility in determining lot areas, lot dimensions, yard/setback areas, and requirements for public street frontage; . The division of the existing property into twelve parcels will cause no significant adverse environmental effects, as determined in the Negative Declaration and Initial Study prepared for the project; and , The proposed single family residential housing complex is compatible with surrounding land uses and will not be detrimental to the public's health, safety, and general welfare since the project entails the a lower development density than currently permitted and is semi-secluded from the surrounding neighborhood. CONCLUSIONS: Staff concludes that the proposed subdivision and site development permit projects are consistent with the Ukiah General Plan and the applicable standards of the Ukiah Municipal Code and the Ukiah Subdivision Ordinance. Staff further concludes that, while the planned development/subdivision proposed in this project would utilize zero lot lines, reduced setback areas, and higher than normal land use densities, these same features have been utilized in similar projects in Ukiah. In staff's opinion, however, the proposed site layout and building designs combine these features in a much more interesting and usable fashion that will result in a denser, but still attractive and highly livable version of a more traditional single family neighborhood. In fact, it is staff's conclusion that the efficient layout of this compact neighborhood will foster a sense of community, and that it will be highly sought after by persons seeking to own a home or by persons looking for a more compact single family residence. LOCATION MAP A, rachment # SHIMIZU/HOUSING' COMPANY DEVELOPMENT. ZONE 'CHANGE No. 05-12; SITE. DEVELOPMENT PERMIT No. 05-13; and 'MAJOR SUBDIVISION MAP N°.. 05-17 506-510 Low Gap Road Assessor Parcel No. 001-4,30-35 SCHOOL' UNICIPAL. 0 , 500 1000 1500 2000 __~0 APPROXIMATE SCALli',: 1 inch-'-500 feet I 300' DRAFT RESOLUTION NO. Attachment # RESOLUTION OF THE CITY COUNCIL OF UKIAH APPROVING TENTATIVE SUBDIVISION MAP NO. 05-17 WHEREAS, the Ukiah Planning Commission on June 22, 2005, conducted and recommended approval of Tentative Map No. 05-17, as submitted by the Housing Company, and WHEREAS, a Mitigated Negative Declaration was found adequate and complete by the Planning Commission; and WHEREAS, the proposed site development is consistent with the Planned Development Plan approved by the City Council on August 17, 2005, and WHEREAS, the Director of Public Works/City Engineer reports that the subdivision is consistent with applicable requirements of the Ukiah Subdivision Ordinance. NOW, THEREFORE, BE IT RESOLVED THAT Tentative Map No. 05-17 (Attached Exhibit A) for the Housing Company Subdivision, is approved conditioned upon all applicable State Statutes, local ordinances, conditions of approval for Major Site Development Permit No. 05-13, and the following specific .conditions: 1. A Final Subdivision Map shall be prepared and submitted to the City Engineer for review and approval, and recorded in a manner consistent with Ukiah Municipal Code requirements. 2. Applicant shall be required to obtain any permit or approval, which is required by law, regulation, or ordinance, be it required by Local, State, or Federal agency. o Any construction shall comply with the "Standard Specifications" for such type of construction now existing or which may hereafter be promulgated by the Engineering Department of the City of Ukiah; except where higher standards are imposed by law, rule, or regulation or by action of the Zoning Administrator. . In addition to any particular condition imposed, any construction shall comply with all building, fire, electric, plumbing, occupancy, and structural laws, regulations and ordinances in effect at the time the Building Permit is approved and issued. . The subdivider of the subject property shall dedicate land, pay a fee in-lieu thereof, or both at the option of the City Council for park and recreation purposes prior to the filing of the Final Subdivision Map. , All use, construction, or occupancy shall conform to the application approved by the City Council, and to any supporting documents submitted therewith, including maps, sketches, renderings, building elevations, landscape plans, and alike. PASSED AND ADOPTED on , by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk Attachment # ~-I DRAFT RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF UKIAH APPROVING MAJOR SITE DEVELOPMENT PERMIT NO. 05-13 WHEREAS, the Ukiah Planning Commission on June 22, 2005, conducted and recommended approval of Major Site Development Permit No. 05-13, as submitted by the Housing Company, and WHEREAS, a Mitigated Negative Declaration was found adequate and complete by the Planning Commission; and WHEREAS, the proposed site development is consistent with the Planned Development Plan approved by the City Council on August 17, 2005. NOW, THEREFORE, BE IT RESOLVED THAT Major Site Development Permit No. 05-13 for the Housing Company Subdivision, is approved conditioned upon all applicable State Statutes, local ordinances, conditions of approval for Major Subdivision Map No. 05-17, and the following specific conditions: , No building permits shall be issued for any of the residential structures shown on the Development Plan/Site Development Permit until the Final Subdivision Map has been approved by the Ukiah City Council and signed by the Mayor of Ukiah. , All use, construction, or occupancy shall conform to the Development Plan approved by the City Council, and to any supporting documents submitted therewith, including maps, sketches, renderings, building elevations, landscape plans, and alike. , Any construction shall comply with the "Standard Specifications" for such type of construction now existing or which may hereafter be promulgated by the Engineering Department of the City of Ukiah; except where higher standards are imposed by law, rule, or regulation or by action of the City Council. , In addition to any particular condition, which might be imposed, any construction shall comply with all building, fire, electric, plumbing, occupancy, and structural laws, regulations and ordinances in effect at the time the Building Permit is approved and issued. 5. Applicant shall be required to obtain any permit or approval, which is required by law, regulation, or ordinance, be it required by Local, State, or Federal agency. . Building Permits shall be issued within two years after the effective date of the Development Plan/Site Development Permit, or it shall be subject to the City's permit revocation process and procedures. In the event the Building Permit cannot be issued within the stipulated period from the project approval date, a one year extension may be granted by the Director of Planning if no new circumstances affect the project which otherwise would render the original approval inappropriate or illegal. It is the applicant's responsibility in such cases to propose the one-year extension to the Planning Department prior to the two-year expiration date. . The approved Development Plan/Site Development Permit may be revoked through the City's revocation process if the approved project related to the Development Plan/Site Development Permit is not being conducted in compliance with the stipulations and conditions of approval; or if the project is not established within two years of the effective date of approval; or if the established land use for which the permit was granted has ceased or has been suspended for twenty four (24) consecutive months. Attachment , Except as otherwise specifically noted, the Development Plan/Site Development Permit shall be granted only for the specific purposes stated in the action approving the Development Plan/Site Development Permit and shall not be construed as eliminating or modifying any building, use, or zone requirements except as to such specific purposes. . The expansion of any residential structure or garage beyond the dimensions or building heights approved as part of the Development Plan shall require the approval of a Minor Site Development Permit by the Ukiah Zoning Administrator. 10. Improvement Plans for interior walkways or curb, gutters, sidewalks, driveways and street paving along the Low Gap Road frontage shall be prepared by a licensed civil engineer in accordance with City Standard Drawings and submitted to the Ukiah City Engineer for review. The improvements plans shall be approved by the City Engineer prior to the issuance of any ministerial permits for site preparation activities required for the construction of any residential unit on the subject property. 11. All improvements within the right-of-way for Low Gap Road shall be constructed in conformance with the approved improvement plans under an Encroachment Permit issued by the Public Works Department. The Encroachment Permit shall be submitted to the City Engineer for review and approval prior to the City Engineer prior to the issuance of a Building Permit for the project with a fee equal to three percent (3%) of the cost of the improvements. 12. All improvements shall be done by a properly licensed Contractor with a current City of Ukiah Business License who shall submit copies of proper insurance coverage (Public Liability: $1,000,000; Property Damage: $1,000,000) and current Workman's Compensation Certificate. 13. A Final Grading and Drainage Plan that includes an Erosion and Sediment Transport Control Plan shall be submitted to the City Engineer/Public Works Director for review and shall be approved prior to the commencement of any grading, site preparation activities, or construction of buildings and paving. A licensed civil engineer shall prepare all drainage calculations and other work done on this Plan. 14. Stockpiled soil shall be protected from erosion; drainage from all disturbed and stockpiled soils shall be directed on-site to a disposal location approved by the City Engineer. 15. All on-site paving shall be a minimum of 2" (inches) of asphalt concrete with a 6" (inch) aggregate base, or, alternatively, any option approved by the City Engineer 16. Sewer, water, and electric service shall conform to the specifications of the City Public Utilities and Public Works Departments. 17. A Final Landscaping Plan shall be submitted by the project applicant and approved by the Director of Planning prior to the issuance of a Certificate of Occupancy for the building. This plan shall include, but not be limited to the following: a) A planting legend that includes the names, location, coverage area, and canopy cover of proposed vegetation; b) A planting schedule for all vegetation installed on the site; and c) A maintenance schedule for existing or proposed vegetation, including a watering schedule and irrigation system design. 18. All landscaping shall be maintained in a neat, weed-free manner, and may not be removed or substantially altered unless the Director of Planning reviews and approves the removal or replacement of vegetation determined to be diseased, unstable, hazardous, or poorly located on the site. Any vegetation removed from the site shall be replaced with similar vegetation approved by the Planning Director. 19. Attachment # ~$ Any roof-mounted air conditioning, heating, and/or ventilation equipment shall be aesthetically screened from view consistent with the architecture of the building upon which it is located. 20. Outdoor refuse/recycle containers shall be aesthetically screened from view; garbage shall not be visible outside the enclosures. 21. A recycling program that provides the opportunity for all residents of the single family residential subdivision to recycle shall be implemented prior to the occupancy of any of the buildings and shall remain in effect so long as the structures are occupied. This program shall be reviewed by the Planning Director and approved prior to implementation to ensure it provides efficient recycling methods consistency with Ukiah Municipal Code requirements. 22. Hours of construction shall be limited to the hours between 7:00 a.m. to 7:00 p.m., Monday through Saturday unless additional hours of construction for special construction activities or projects are reviewed and approved by the Planning Director. 23. Prior to the issuance of a Building Permit, a Final Lighting Plan shall be submitted to the Director of Planning and Community Development or his/her designee for review for compliance with Ukiah Municipal Code standards for on-site lighting and with "dark sky" guidelines for reducing nighttime lighting on the site. The Final Lighting Plan shall include details regarding exterior lighting for structures, garden areas, and walkways, with lighting sources that are full cut-off, hooded, and down-cast, or otherwise shielded to ensure that light does not adversely shine towards neighboring properties, or toward the night sky. Additionally, all lighting shall be the minimum wattage necessary to provide adequate security, yet shall not result in excessively bright night glow. Sufficient details regarding the proposed wattage of all site lights shall be included in the Final Lighting Plan so that the Planning Staff can determine how bright the proposed site lights will be. The Director of Planning and Community Development shall have the authority to require the Final Lighting Plan to be modified (including the wattage) and/or additional information to be submitted so that the lighting meets the requirements listed above. 24. All activities involving site preparation, excavation, filling, grading, road construction, and building construction shall institute a practice of routinely watering exposed soil to control dust, particularly during windy days. 25. All inactive soil piles on the project site shall be completely covered at all times to control fugitive dust. 26. All activities involving site preparation, excavation, filling, grading, and actual construction shall include a program of washing off trucks leaving the construction site to control the transport of mud and dust onto public streets. 27. Low emission mobile construction equipment, such as tractors, scrapers, and bulldozers shall be used for earth moving operations. 28. All earth moving and grading activities shall be suspended if wind speeds (as instantaneous gusts) exceed 25 miles per hour. 29. If, during site preparation or construction activities, any historic or prehistoric cultural resources are unearthed and discovered, all work shall immediately be halted and City Planning Department staff shall be notified immediately of the discovery. The applicant shall also be required to fund the hiring of a qualified professional archaeologist to perform a field reconnaissance to determine whether the development of a precise mitigation program will be required prior to the continuation of any site work. Attachment # ~-~' 30. All conditions that do not contain a specific date or time period for completion shall be completed prior to the issuance of a Certificate of Occupancy. PASSED AND ADOPTED on AYES: NOES: ABSTAIN: ABSENT: , by the following roll call vote: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk "::':' ' "-' Attachment # L " .' Attachment !111!!' ! I'"' 1' 1 L ...... :'~-' Altachment # /- ~ .. .. .... -.,... ~ ~-. ., ,' .,...: ').:, ~ ,----~ ;..: -.: . :f-., . . .'.' .. -~"~ .... . .~ : -~'; .~ ] :;-:.--:- . .. "! . ':'-;- :. , /":' :' , * ..- *..** .. -.:... · . . ' '[ '.. .."; ' :-~', :. i .... ' ~ I , ' !l--' ,r' ~: ~ ..~..i"~ 1!] -- " r I ; :' ~' · I .~,.=.. :: , ~ · ~ · li~~ ~-' '" ~.1 I I ' ' ', .,..'" ' · I I ' [ ~"" '. .I. I ' .. ! . ~ I'' · .' !-...: -, ~ " : " :1 I "' ' .. ~ I I' . : ~.~. · .'~, , '.-t. -. ,. ! =-: "-.. .- I I" ~ ''~ ':' ' ~:' ~''' '"'< , ! i '-.'~-"~4-.-J:'.,; ;:~-,'.: ..'i:'".' " · -."~..'~:,'"~"'1~',, i. .' -':'- '", '~' i:';'~.:-- .'.' ".'.~.::: ~".'"'" '-" · " ' '""... ~ .... - "'. I !' '. ....... ! '*' · .. · · · ,'.o -'--.,' ..~, · % '. s " ' '<""~- ""' "~ ~' '"4 '~ *" ' ':. '--;'"";F.'~.". ." .. I x,~.:' I ]: ' · ' .' - ":'" ' .' '.;"'" ""-'" * .' ' ' - I ." . ' """:":' '";'"'" ' ..... · -:_'x, -'I, '.'1 ' ... -, -: ' ".'. ' '... '" ".'".:i:i' ": ;'"' I" ' ' ..... · "':-'... ;~" ';"'~ ... i. ";..".:['."- " · ;"". ~";i ~". . i.-;' .' :.' ~.:~': ' I .;.¥;;::;;'..,-~.. ~...:,."';";'":;.'.-~,.: !.ii:. ;"".j.:"';'"- ..... .:...::'..;... i '. . . !1' 'i I ;,!· i.,.:.":;-;<':.,'" ;.':'i:..';":"':"' ' ~ ' , · ' ' II . ' -',"',i'"-" · ·" II,. r,~.,,lll,.~.~i.~ ~1,.~,,~ ~i · ..." ' Attachment #. / '~t # .. ti I I ! I~11~ AHachment # II Attachment".# ""~':' Aff~chmenf :...' Ii / Altachment # ,'. -. .. .. AGENDA SUMMARY ITEM NO. 9 a DATE: August 17, 2005 REPORT SUBJECT: AWARD OF SOLE SOURCE BID TO MALLORY FIRE EQUIPMENT IN THE AMOUNT OF $151,207.36 FOR THE PURCHASE OF REPLACEMENT FIREFIGHTER BREATHING APPARATUS. SUMMARY: During the 2005-2006 Budget Review and Approval process the City Council approved the Fire Department's Budget which includes funding for replacement of firefighter breathing apparatus. Staff is proposing to replace the Department's aging inventory of Scott Breathing Apparatus with breathing apparatus that is fully compliant with the most recent NFPA Standards. In addition to being compliant with NFPA, the new breathing apparatus conforms with the recommendations developed by a multi-agency Task Force made up of numerous fire departments from throughout the County. The recommendation of the Task Force was that in order to maximize interoperability and economy of scale, fire departments in the County should standardize their breathing apparatus to one brand. This standardization will result in our ability to share spare parts, annual testing equipment and other services. Redwood Valley Calpella Fire District is transitioning to high pressure and Hopland has been in discussions with MSA to do the same. Staff would like to point out that the fire district is considering purchasing new breathing apparatus that is mid pressure which is consistent with what they currently have. Staff has reviewed the differences and compatibility between the mid vs high systems as provided by the manufacturer (Attachment 2) and believes the high pressure is best for our needs. Staff will be prepared to discuss the differences and compatibility issues with the Council at the meeting. (Cont'd on page 2) RECOMMENDED ACTION: Award bid to Mallory Fire Equipment in the amount of $151,207.36 for account 699.2101.800.016 ALTERNATIVE COUNCIL POLICY OPTION: 1. Provide additional direction 2. Take no action. Citizen Advised: N/A Requested by: City Council Prepared by: Kurt Latipow, Fire Chief Coordinated with: Candace Horsley, City Manager Attachments: 1. Bid 2. Mid and High system detail from the manufacturer APPROVED: ~;~~~~~'~~~ Candace Horsley, City ~nager The brand of breathing apparatus the Task Force recommends is MSA. Mallory Fire is the exclusive distributor for this product in our area and they have submitted a bid based on tagging onto the State contract (Attachment 1)in the amount of $151,207.36. A $9,000 discount is included in this price if purchased by August 30th. Once Council has discussed the various issues related to this item, if Council is willing to go ahead with the bid award, staff is recommending that Mallory Fire Equipment be awarded the bid. Jul -27-05 12: 53P July 26, 2005 13'13 Attacfment # ! Kurt Latipow Fire Department City of Ukiah 300 Seminary Avenue Ukiah, CA 95482-5400 RE: Quotation Breathing Apparatus & Related Equipment In conformance with the State of California Contract # 1-04-42-04 Breathing Contractor-Mallory Fire, we are pleased to quote the following: 28 MSA#JCMB21 R01C 14X0 CBRN Compliant Firehawk Air Mask co CM- 4500 Firehawk Air Mask B- Airframe Double Pull without chest strap 2- Swiveling Lumbar Pad 1- 30 minute Carbon Cyclinder R- MMR Regulator Type-CBRN Firehawk PTC, Threaded hose, S 0- No airline options l.- Emergency Breathing System-Quick-Fill Shoulder Mounted C- Ultra Elite Hycar, Medium l-Medium Nosecup 4- Head Harness Speed On with neckstrap X- ICM2000+TX Pass Device less Heat 0- No Case 3,763.85 10' 28 MSA#807587 30 Min. 4500PS! Carbon Cyl. 465.56 28 MSA# i 0024074 Clear Command Voice Amp. N/C (Value $381.44 ea. Under current promotion until Aug. 30,2005) 22 MSA#10035682 Ultra Elite Mask PTC 239.42 50 Unita Mask Bag 8.50 3 MSA#10041231 Rescue AirlI Firehawk Mask, 3" quick fill hose 1,656.14 3 MSA#807588 60 min. 4500PSI Cyl. 768.53 I TSI#8020T PortaCount Quantitative Fit Tester 7,315.00 1 MSA#10040052 Mask Adapter for Fit Test 88.92 N kpparatus- .isting of: :)lid cover 387.80 ~035.68 o/Charge 267.24 425.00 ~,968.42 t.305.60 'L315.00 88.92 UUA .02 ~x 'oa;e/ttrne dUb-ZI-/.UU¢ ~I~UI 15'[3 du'!-27-O5 12:53P r. uu3 P.03 MalloryCo Fire · Safety · Formr · Industrial I MSA#802710 Quick Check I cartridge or Fit TesT 28 Ziamatic #UH-5-30-3-SS Track Brackets 12 Ziamatic #CRS Restraint Strap 32.50 50.00 40.00 Subtotal Mendocino County Tax 7.25% Freight Cost (Ziarnatic & TSI Only) Grand Total 32.50 1,400.00 480.00 $t40,706.16 0,201.20 300.00 $1 51,207.36 ent. 'S. Thank you for the opportunity to be of service. Respectfully submitted by: Jim Peterson Fire Specialist Authorized by: David Marquart General Manager-California Mallory Fire User training on MSA SCBA Equipment onsite for all Department use Training Department on the application and use of PortaCount Equiprn ! The following services will be performed at no charge to the City of Ukiah Fi~c Department. Fit testing using Mallory Fire test equipment on site for entire departm :nt staff. Physical Design Differences Atlachment # -- As far as the actual design of the two SCBA's there is very little noticeable difference. From an MSA standpoint, the 3000's and 4500's utilize the same backframe, facepiece, regulators, Pass Device, End of Service Time Indicators ......... all operate the same basic way from a function standpoint. They are donned and doffed the same way. There are some small differences that you would see. For example the cylinder gauge on the back of a 3000 would only up to 3000 and 4500 would go up to 4500. Same goes for the readout on the Pass Device .... they are pressure specific. Emergency Breathing The biggest difference would be from an EMERGENCY BREATHING STANDPOINT. As mentioned, "TRANSFILLING" commonly referred to as "Quick Filling" is our recommended method of emergency breathing as it is the ONLY NIOSH approved method of emergency breathing on the market today. "Transfilling" or "Quick Filling" has been an option on MSA SCBA since 1987. This is a technology that we designed and patented. MSA 2216 psi units can transfill MsA 4500 psi units can transfill MSA 3000 psi units CAN NOT transfill, that is the biggest difference. Competitive units CAN NOT tranfill. Let's briefly review "Transfilling" and what can be accomplished with the new Universal Rescue Connection (URC) adopted by the NFPA. "Transfilling" is accomplished by the incorporating our optional 3' Transfill Hose into your operating procedures. With the use of this 3' transfill hose, one MSA SCBA can equalize with another MSA SCBA in an IDLH atmosphere, then disconnect. This procedure takes anywhere from 40 seconds to just over 1 minute (depending on the size of the cylinder (30', 45' or 60'). As mentioned, the two SCBA will equalize cylinder pressure if allowed to do so, but one can disconnect early (prior to the equalization) if that's what he or she would like to do. For example, only transfill 200 psi, then disconnect ..... if another transfill is needed, it can be performed .... etc ..... up to the point of both cylinders equaling out. This is unlike traditional "buddy breathing" ..... where users are tethered to one another, and briefly go into negative pressure temporarily while connecting up to their partners SCBA. The transfilling feature incorporates the Quick Fill Hose (mentioned above)and the Universal Rescue Connection located on the rear of our NFPA 1981, 2002 SCBA. It can also incorporate onto an optional shoulder mounted Quick Fill Nozzle located on the shoulder of the MSA SCBA. Universal Rescue Connection (NFPA 1981, 2002 ed) The Universal Rescue Connection was adopted by the NFPA in 2002. The NFPA adopted this technology prior to the 2002 revision in order to provide better interoperability among FD's. We gave a portion of this patent to the NFPA but kept the rights to Transfill between two SCBA. The following can be accomplished through the use of the Universal Rescue Connection: If SCBA's are compliant to NFPA 1981, 2002 standard, all SCBA's can receive air from any manufacturers RIT Pack (portable air supply). Any RIT Pack configured with a permanent transfill hose (most new RIT packs are) can supply air INTO an SCBA regardless of manufacturer or operating pressure. For example: a new Scott RIT Pack can supply air INTO a Survivair, MSA, Draeger, etc, etc...and Vice Versa SCBA's with a Universal Rescue Connection can be filled by any mobile compressor or cascade system very quickly by incorporating the appropriate connection on their compressor (same as 3' Quick Fill Hose connection)...SCBA's can be filled in a little over a minute (again depends slightly on size of cylinder). Trasfilling can occur between MSA 2216 and 4500 SCBA. Air can travel both IN and OUT of these SCBA. Air can be only be donated INTO to those units that do not have the ability to tranfill (MSA's 3000 psi unit, and all other manufacturer's SCBA). NOTE: Trasfilling of Air to a NON MSA SCBA or to MSA's 3000 psi $CBA can be accomplished with our 3' Quick Fill hose only if the Pressure in the MSA 2216's or 4500's is higher than that of those other SCBA's in need of receiving air. Competitive units and our MSA's 3000 have an additional check valve in them that only allows air one way .... into the SCBA. Our 2216's and 4500's do not require this additional check valve and allow air in both ways .... in and out. Why can the MSA 2216's and 4500's transfill, but not the 3000? Ail $CBA cylinders have a burst disc... If a cylinder is overpressurized past the tolerance of it's burst disc, a rapid loss of air could occur which could be catastrophic. To protect the burst disc, SCBA manufacturers incorporate a "Pressure Relief" valve that will vent in the event that a cylinder is starting to become overpressurized. This pressure relief valve will open and vent the SCBA down to a safe operating pressure. For example a 2216 SCBA has a Pressure relief valve that activates at approximately 2400 psi. If pressure exceeds 2400 psi in this system, the relief valve will vent back down to a safe operating pressure (the PRY valve would need to be changed after using the SCBA) In order for our 3000 psi system to transfill, we would need to use a dedicated 3000 psi Pressure Relief Valve in the 3000 SCBA. The pressure relief valve activation point on a hypothetical 3000 psi valve would be too close to the rupture point of a 2216 cylinders burst disc. Because we know that a 2216 may be inadvertently placed into a 3000 psi SCBA, we protect ALL 3000 PSI SCBA with a 2216 Pressure Relief Valve ...... the result ..... MSA's 3000 will not perform transfills. What limitations are there with agencies using MSA 3000's and MSA 4500 in the same area? Again, most everything, outside of emergency breathing, is identical regardless of SCBA pressure. So, donning, doffing, cylinder changes and using the system (outside of transfilling) are almost identical. MSA 4500's would be able to perform "transfills" with other MSA 4500's and even to neighboring agencies using 3000's (given that the pressure in the 4500's is greater than the 3000's) The MSA 3000's just wouldn't be able to transfill back to other MSA 3000's or to MSA 4500's. That's the biggest limitation. However, throughout California 3000's and 4500's coexist. CDF just purchased over 1,400 MSA 3000 psi SCBA's in 2004. Since they can't transfill, CDF utilizes emergency RIT packs throughout their system. Ail RIT Packs (regardless of pressure) can supply emergency breathing support to ANY SCBA having a Universal Rescue Connection. So an agency that uses 3000's can use their RIT Packs to supply to a 2216, 3000 or 4500 psi SCBA. Vice Versa with 2216 or 4500 psi RIT Packs. Another possible limitation is interchanging 3000 psi cylinders with 4500 psi cylinders. This is not recommended ..... however users should be aware A 3000 psi cylinder can be placed in a 4500 psi SCBA and it will opertate. The alarm points on the End Of Service Time Indicator and Heads up Display will not be accurate, but it will error on the side of having "more" pressure than is actually indicated. A 4500 psi cylinder CAN NOT be placed in a 3000 psi SCBA, due to the fact that the cylinder inserts and threads (CGA 347 on high pressure, CGA 346 on intermediate) are different. In this scenario, the high pressure cylinder threads (longer) will not couple completelty with the intermediate pressure coupling nut and cylinder insert. In this scenario, the SCBA will not operate AGENDA ITEM NO: 9, b MEETING DATE: 08/17/2005 SUMMARY REPORT SUBJECT: Adopt Resolution Of The City Council Of The City Of Ukiah Approving The Bond Sale And Financing Plan Anticipated In Prior Council Action Authorizing Certain Capital Improvements To The City Of Ukiah Water Plant And Authorizing The City Manager To Execute Required Documents. The City can take advantage of reduced/lower issuance costs for the proposed water bond if the sale takes place thorough the Association of Bay Area Governments ("ABAG") Competitive Bond Pool. The key advantages of using the ABAG pooled financing program include: Low issuance costs with economies of scale of pool Low interest rates with AAA-rated, tax-exempt, insured revenue bonds Standard documentation reduces staff and City Attorney time requirements Ease of procurement in selection financing professionals The financing is expected to provide the City a net $14 million to be used to recapture the $6 million of project expenses paid to date (from water utility operating reserves and other City reserves) and to provide sufficient funding to complete the project including the $8 million of project expenses currently contracted. The average annual bond payment is projected to be $880,000. This payment will be made with rate revenue generated through the rates adopted by Council April 6, 2005. (Continued on Page 2) RECOMMENDED ACTION: Adopt Resolution and Authorize the City Manager to execute agreement approving the Bond Sale and Financing Plan for Capital Improvements to the City of Ukiah Water Plant. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide alternative direction to staff. Requested by: Prepared by: Coordinated with: Attachments: Mike McCann. Finance Director Candace Horsley, City Manager; Bernie Ziemianek, Director of Public Utilities (1) Resolution; (2) Preliminary Offering Statement; and (3) Installment Sale Agreement Approved: Candace Horsley, - ' City-~anager Meeting date 8/17/05 To participate in this bond pool, a resolution must be adopted to (1) Authorize the execution and delivery of an installment purchase agreement by and between the City and ABAG (2) The execution of an Installment Sale Agreement between the City and ABAG (3) Authorize the preliminary official statement, execution of the final official statement and continuing disclosure certificate (4) Appointment of professionals and designation of "Authorized Officers" of the City. The parameters specified in the resolution include: The maximum size of the borrowing (not to exceed $15 million) the maximum average interest rate (not to exceed 5.50 percent per annum) and the maximum underwriter's discount (not to exceed 1 percent) Under the resolution, the professionals appointed to serve the City in connection with the transaction include Bartle Wells Associates as financial advisors, Jones Hall as bond counsel, and Wells Fargo Bank as Trustees. Representatives of Bartle Wells Associates and Jones Hall will be present at the Council meeting to make a formal presentation on ABAG's Water and Wastewater Pooled Financing Program and to answer questions. Important Dates: Approval of resolution and legal documents August 17, 2005 Anticipated Sale Date August 24, 2005 Anticipated Closing Date (receipt of funds) September 15, 2005 Council Action Requested: Staff recommends that Council adopt the resolution, authorizing (1) the issuance of water revenue bonds through ABAG's Water and Wastewater Pooled Financing Program, (2) authorizing the City to enter into an Installment Sale Agreement with ABAG and authorizing the City Manager to sign financing documents on behalf of the City. ATTACHMENT__~__ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING DOCUMENTS AND ACTIONS RELATING TO FINANCING OF WATER SYSTEM IMPROVEMENTS WHEREAS, 1, The City presently owns and operates facilities and property for the supply, treatment and distribution of water within the service area of the City (the '~Vater System"), and the City wishes to provide funds at this time to finance improvements to the Water System, consisting generally of the construction of additional water tanks to increase the City's storage capacity by 3.3 million gallons, installing two additional treatment modules in the City's water treatment plant, installing additional pumps and associated equipment, and fixing cracks in the concrete foundation of the treatment plant reservoir (the "Project"); and 2. The Association of Bay Area Governments (the "Authority") is authorized to assist local agencies in the financing of facilities and property such as the Project, and the Authority has proposed to enter into an Installment Sale Agreement (the "Installment Sale Agreement") with the City and Wells Fargo Bank, National Association, as trustee (the 'q'rustee"), under which the Authority agrees to provide funding for the Project and to sell the completed Project to the City in consideration of the agreement by the City to pay the purchase price of the Project in semiannual installments (the "Installment Payments"), to be secured by a pledge of and lien on the net revenues from the Water System; and 3. For the purpose of obtaining the moneys required to finance the Project, the Authority proposes to assign and transfer certain of its rights under the Installment Sale Agreement to the Trustee under an Indenture of Trust (the "Authority Bond Indenture"), between the Authority and the Trustee, under which the Authority will authorize the issuance and sale of its 2005 Water and Wastewater Revenue Bonds, Series A (the "Authority Bonds") which are secured by a pledge of certain revenues including the Installment Payments; NOW, THEREFORE, the City Council of the City of Ukiah hereby resolves as follows: Section 1. Approval of Installment Sale Agreement. The City Council hereby approves the financing of the Project as described herein. To that end, the City Council hereby approves the Installment Sale Agreement in substantially the form on file with the City Clerk, together with any changes therein or additions thereto approved by the City Manager. The Mayor or the City Manager is hereby authorized and directed for and in the name and on behalf of the City to execute the final form of the Installment Sale Agreement, and the City Clerk is hereby authorized and directed to attest to the final form of the Installment Sale Agreement. The schedule of installment payments attached to the Installment Sale Agreement shall be determined based on the payments of principal of and interest on the Authority Bonds. The principal amount of the Installment Payments shall be an amount which is sufficient to provide not to exceed $15,000,000 for the Project, and the interest rate at which the Installment Payments are computed shall not exceed 5.50% per annum. Section 2. Issuance and Sale of Authority Bonds. The City Council hereby approves the issuance of the Authority Bonds for the purpose of providing funds to finance the Project, under and in accordance with the Authority Bond Indenture in substantially the form on file with the City Clerk. The City Council approves the sale of the Authority Bonds by competitive sale of the Bonds among a limited number of bidders as provided by resolution of the governing board of the Authority. Section 3. Official Statement. The City Council hereby approves and deems nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, the portions of the preliminary Official Statement relating to the Authority Bonds which describe the City, the Water System and the Project, in the form on file with the City Clerk. The City Manager or Finance Director (an "Authorized Officer") is hereby authorized, at the request of the purchaser of the Authority Bonds, to execute an appropriate certificate affirming the completeness and accuracy of such portions of the Official Statement. The City does not assume any responsibility or liability for the Official Statement other than those portions which describe the City, the Water System and the Project. Section 4. Official Actions. The Mayor, the City Manager, the Finance Director, the City Clerk, and all other officers of the City, are authorized and directed in the name and on behalf of the City to make any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they or any of them might deem necessary or appropriate in order to consummate any of the transactions contemplated by the agreements and documents approved under this Resolution. Whenever in this Resolution any officer of the City is directed to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer is absent or unavailable. Section 5. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption. PASSED AND ADOPTED on August 17, 2005, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk 11017-83 J H:CKL 7-18-05 8-4-05 8-10-05 8-11-05 PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 18, 2005 NEW ISSUE - BOOK-ENTRY ONLY RATINGS: Standard & Poor's: (.~ Insured) In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that, for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. Bond Counsel is also of the opinion that under existing law the interest on the Bonds is exempt from personal income taxation imposed by the State of California. See "TAX MA TTERS. ' ASSOCIATION OF BAY AREA GOVERNMENTS 2005 Water and Wastewater Revenue Bonds, Series A Dated: Date of Delivery Due: September 1, as shown below The 2005 Water and Wastewater Revenue Bonds, Series A (the "Bonds") are being issued by the Association of Bay Area Governments (the "Authority") to provide moneys to finance the acquisition and construction of capital improvements to water and/or wastewater systems of the City of Ukiah and the Thermalito Irrigation District (the "Local Agencies"). Proceeds of the Bonds will also be used to fund a reserve fund for each Local Agency and to pay the cost of issuing the Bonds. See "THE FINANCING PLAN." The Bonds are special obligations of the Authority, payable from and secured by Revenues (as defined herein) consisting primarily of installment payments (the "Installment Payments") received by the Authority under Installment Sale Agreements (the "Installment Sale Agreements") to be entered into among the Local Agencies, the Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Installment Payments are calculated to be sufficient in time and amount to provide the Authority with money to pay the principal of and interest and premium, if any, on the Bonds when due. Interest on the Bonds is payable on March 1 and September 1 each year, beginning March 1, 2006. Principal on the Bonds is due on the due dates set forth in the maturity schedule on the inside cover. Individual purchases will be in principal amounts of $5,000 or integral multiples thereof. The Bonds will be issued in book-entry form, initially registered in the name of Cede & Co., New York, New York, as nominee of The Depository Trust Company, New York, New York ("DTC"). Purchasers will not receive certificates representing their interest in the Bonds. Payment of principal and interest will be remitted by Wells Fargo Bank, National Association, San Francisco, California, as trustee (the "Trustee") to DTC for subsequent disbursement to DTC participants who will remit such payments to beneficial owners of the Bonds. See "APPENDIX I - DTC and the Book-Entry Only System." The Bonds are subject to mandatory redemption from prepayments of the Installment Payments made by the Local Agencies under the Installment Sale Agreements, as described under the caption "THE BONDS - Redemption." The Bonds are special obligations of the Authority payable from and secured by certain revenues described herein consisting primarily of the Installment Payments. The Installment Payments are special obligations of the Local Agencies, and are secured by an irrevocable pledge of certain revenues of such Local Agency, consisting generally of the net revenues generated by the Local Agency's respective water or wastewater enterprise, as described herein. See "SECURITY FOR THE BONDS." A debt service reserve fund will be established by each Local Agency under its respective Installment Sale Agreement. Amounts on deposit in each Local Agency's reserve fund may be used as a reserve for the payment of ' Preliminary; subject to change. Installment Payments by the related Local Agency, and are not available to pay Installment Payments of other Local Agencies. No reserve fund is being established for the Bonds. See "SECURITY FOR THE BONDS - Reserve Funds." The payment of principal and interest on the Bonds when due will be insured by a bond insurance policy to be issued concurrently with the delivery of the Bonds by XL Capital Assurance Inc. See "MUNICIPAL BOND INSURANCE". [Insurer Logo] THE BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM AND SECURED BY THE PLEDGE OF REVENUES UNDER THE INDENTURE. NEITHER THE AUTHORITY NOR THE MEMBERS OF THE AUTHORITY ARE DIRECTLY OR INDIRECTLY OR CONTINGENTLY OR MORALLY OBLIGATED TO USE ANY OTHER MONEYS OR ASSETS OF THE AUTHORITY OR ANY OF ITS MEMBERS, OTHER THAN THE MONIES PLEDGED UNDER THE INDENTURE, TO PAY ALL OR ANY PORTION OF DEBT SERVICE DUE ON THE BONDS. THE BONDS AND THE OBLIGATION TO PAY PRINCIPAL OF AND INTEREST THEREON AND ANY REDEMPTION PREMIUM WITH RESPECT THERETO DO NOT CONSTITUTE AN INDEBTEDNESS OR AN OBLIGATION OF THE AUTHORITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF, WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION, OR A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF ANY OF THEM, BUT SHALL BE PAYABLE SOLELY FROM THE REVENUES DESCRIBED HEREIN. NO OWNER OF THE BONDS SHALL HAVE THE RIGHT TO COMPEL THE EXERCISE OF THE TAXING POWER OF THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF TO PAY ANY PRINCIPAL OF, PURCHASE PRICE, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE AUTHORITY DOES NOT HAVE ANY TAXING POWER. MATURITY SCHEDULE [See inside front cover] This cover page contains certain information for general reference only. It is not a summary of this issue. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. The Bonds will be sold and awarded under a competitive bidding among a limited number of invited bidders, to be held on August 30, 2005, subject to the conditions set forth in the Notice to Bidders. The Bonds will be offered when, as and if delivered to and received by the Underwriter subject to the approval of their validity by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, and certain other conditions. Certain matters will also be passed upon by Jones Hall as Disclosure Counsel, and for each Local Agency by its respective counsel. It is anticipated that the Bonds will be available for delivery to DTC in New York, New York on or about September 13, 2005. The date of this Official Statement is August ,2005. MATURITY SCHEDULE Due Interest CUSIP Due Interest Sept. Amount Rate Yield (~.)'1' Sept. 1 Amount Rate Yield 1 CUSIP ( )t __% Term Bonds due September 1, __; Price: % to Yield ~% - CUSIP 1' Copyright 2005, American Bankers Association. CUSIP data herein are provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc., and are provided for convenience of reference only. Neither the Authority, the Local Agencies nor the Underwriter assumes any responsibility for the accuracy of these CUSIP data. GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT Use of Official Statement. This Official Statement is submitted in connection with the offer and sale of the Bonds and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not to be construed as a contract with the purchasers of the Bonds. Estimates and Forecasts. When used in this Official Statement and in any continuing disclosure by the Authority or a Local Agency, in any press release and in any oral statement made with the approval of an authorized officer of the Authority, the Local Agency or any other entity described or referenced herein, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "forecast," "expect," "intend" and similar expressions identify "forward looking statements." Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. The information and expressions of opinion in this Official Statement are subject to change without notice, and neither the delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, give rise to any implication that there has been no change in the affairs of the Authority, the Local Agency or any other entity described or referenced herein since the date hereof. Limit of Offering. No dealer, broker, salesperson or other person has been authorized by the Authority to give any information or to make any representations in connection with the offer or sale of the Bonds other than those contained herein and if given or made, such other information or representation must not be relied upon as having been authorized by the Authority or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. Document Summaries. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions. No Registration. The Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an exception from the registration requirements contained in that Act. The Bonds have not been registered or qualified under the securities laws of any state. Involvement of Underwriter. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with and as part of its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the Agency any other entity described or referenced herein since the date hereof. All summaries of the documents referred to in this Official Statement are made subject to the provisions of such documents, respectively, and do not purport to be complete statements of any or all of such provisions. Information About the Authority. The information relating to the Authority contained herein under the heading "THE AUTHORITY" and "ABSENCE OF LITIGATION - The Authority" has been furnished by the Authority. All other information contained herein has been obtained from the Local Agencies and from other sources (other than Authority) that are believed to be reliable, but this information is not guaranteed as to accuracy or completeness by and is not to be relied upon or construed as a promise or representation by the Authority. TABLE OF CONTENTS Page INTRODUCTION ................................................................................................................................. 1 THE AUTHORITY ............................................................................................................................... 3 THE FINANCING PLAN ...................................................................................................................... 3 ESTIMATED SOURCES AND USES OF FUNDS ................................................................................. 4 THE BONDS ...................................................................................................................................... 4 Authority for Issuance ................................................................................................................ 4 Bond Terms ................................................................................................................................ 4 Redemption ................................................................................................................................. 5 Transfer and Exchange of Bonds .............................................................................................. 7 DEBT SERVICE FOR THE BONDS ..................................................................................................... 8 SECURITY FOR THE BONDS ........................................................................................................... 10 Revenues ................................................................................................................................. 10 The Installment Payments ......................................................................................................... 10 Reserve Funds ......................................................................................................................... 14 No Cross-Collateralization ........................................................................................................ 15 No Additional Bonds ................................................................................................................. 15 MUNICIPAL BOND INSURANCE POLICY .......................................................................................... 16 RISK FACTORS ............................................................................................................................... 18 Increased Expenses ................................................................................................................. 18 Insurance .................................................................................................................................. 19 Additional Obligations Payable from Net Revenues .................................................................. 19 Proposition 21 ........................................................................................................................... 19 Earthquake Risk ........................................................................................................................ 19 No Cross-Collateralization ........................................................................................................ 19 Bankruptcy Risks ...................................................................................................................... 20 Loss of Tax Exemption ............................................................................................................. 20 TAX MATTERS ................................................................................................................................ 20 RATING ........................................................................................................................................... 22 UNDERWRmNG .............................................................................................................................. 22 CONTINUING DISCLOSURE ............................................................................................................. 22 ABSENCE OF LITIGATION ............................................................................................................... 23 CERTAIN LEGAL MATTERS ............................................................................................................ 23 EXECUTION ..................................................................................................................................... 24 APPENDIXA APPENDIX B APPENDIX C APPENDIX D APPENDIX E APPENDIX F APPENDIX G APPENDIX H APPENDIX I - Information Concerning the City of Ukiah's Water System - Information Concerning the Thermalito Irrigation District's Water System - Installment Payments Summary Financial Information - Summary of Principal Legal Documents - Proposed Form of Bond Counsel Opinion - Form of Authority Continuing Disclosure Certificate - Form of Local Agency Continuing Disclosure Certificate - DTC and the Book-Entry Only System - Specimen Bond Insurance Policy OFFICIAL STATEMENT ASSOCIATION OF BAY AREA GOVERNMENTS 2005 Water and Wastewater Revenue Bonds, Series A The purpose of this Official Statement is to provide certain information concerning the issuance by the Association of Bay Area Governments (the "Authority") of its 2005 Water and Wastewater Revenue Bonds, Series A (the "Bonds"). INTRODUCTION This Introduction is subject in ali respects to the more complete information contained elsewhere in this Official Statement, and the offering of the Bonds to potential investors is made only by means of the entire Official Statement. Terms used in this Official Statement and not otherwise defined have the meanings ascribed to them in the Indenture. The definition of certain terms are set forth in APPENDIX E. Purpose of the Bonds. The Bonds are being issued to provide moneys to finance the acquisition and construction of capital improvements to water and/or wastewater systems of the City of Ukiah and the Thermalito Irrigation District (the "Local Agencies"). Proceeds of the Bonds will also be used to pay fund a reserve fund for each Local Agency and to pay the cost of issuing the Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS" and "FINANCING PLAN." For information on each Local Agency, including projects to be financed with proceeds of the Bonds, see "APPENDIX A - Information Concerning the City of Ukiah's Water System" and "APPENDIX B - Information Concerning the Thermalito Irrigation District's Water System". The Authority. The Authority is a joint exercise of powers authority organized and existing under that certain Joint Exercise of Powers Agreement, dated January 24, 1961, among certain cities and counties of the State of California (collectively, the "Members"), and under the provisions of Articles 1 through 4 (commencing with section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code (the "Act"). The Authority is authorized under Article 4 (commencing with section 6584) of the Act (the "Bond Law") to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to, public entities, and to provide financing for public capital improvements of public entities. See "THE AUTHORITY." Authority for Issuance. The Bonds are being issued under the Bond Law and an Indenture of Trust, dated as of September 1, 2005 (the "Indenture"), between the Authority and Wells Fargo Bank, National Association San Francisco, California, as trustee (the "Trustee"). Preliminary; subject to change. -1- The Bonds; Security for the Bonds; Limited Obligations. The Bonds are special obligations of the Authority payable from and secured by a pledge of certain revenues consisting primarily of installment payments (the "Installment Payments") made by each Local Agency under an Installment Sale Agreement dated as of September 1, 2005 (each, an "Installment Sale Agreement") with the Authority and the Trustee. The Authority is not directly or indirectly or contingently or morally obligated to use any moneys, other than the Revenues pledged under the Indenture, of the Authority or any of its members to pay all or any portion of debt service on the Bonds. The obligation to pay principal of and interest on the Bonds does not constitute an indebtedness or an obligation of the Authority, the State of California or any political subdivision thereof, within the meaning of any Constitutional or statutory debt limitation, or a charge against the general or taxing powers of any of them, but shall be payable solely from the revenues described herein. The Authority has no taxing power. The Installment Payments. The Installment Payments will be secured by a lien on and pledge of net revenues ("Net Revenues") derived from the water or wastewater system of the related Local Agency, from the reserve fund established for each Local Agency under its related Installment Sale Agreement, and from certain other moneys held by the Trustee under each respective Installment Sale Agreement. The Net Revenues consist of all "Gross Revenues" received by the Local Agency from its water or wastewater system, less all "Operation and Maintenance Costs" for its water or wastewater system, as such terms are defined in this Official Statement. See "SECURITY FOR THE BONDS" and "APPENDIX D - Summary of Principal Legal Documents - Installment Sale Agreements." See also the Appendices to this Official Statement providing certain information relating to the water and wastewater systems of the respective Local Agencies. Reserve Funds. Under each Installment Sale Agreement, the Trustee creates a Reserve Fund for payment of the respective Installment Payments, which is available for use only with respect to such Installment Payments. Amounts in each Reserve Fund may be used only to supplement insufficient amounts for payment of the Installment Payments of the respective Local Agency to which the Reserve Fund relates. See "SECURITY FOR THE BONDS - Reserve Funds" herein. Bond Insurance. Concurrently with issuance of the Bonds, XL Capital Assurance Inc. (the "Insurer") will issue its municipal bond insurance policy (the "Policy") for the Bonds. The Policy unconditionally guarantees the payment of that portion of the principal of and interest on the Bonds which has become due for payment, but which is unpaid. See "MUNICIPAL BOND INSURANCE POLICY" and "APPENDIX I - Specimen Bond Insurance Policy." Local Agency Information. For certain information concerning the Local Agencies and the related water or wastewater enterprise, see "APPENDIX A - Information Concerning the City of Ukiah's Water System" and "APPENDIX B - Information Concerning the Thermalito Irrigation District's Water System." Definitions and Descriptions. Brief descriptions of the Bonds, the Authority, and the Local Agencies and their respective water and wastewater systems are included in this Official Statement, together with summaries of the Indenture and the Installment Sale Agreements. Such descriptions do not purport to be comprehensive or definitive. All references herein to the Bonds, the Indenture and the Installment Sale Agreements are qualified in their entirety by reference to the actual documents. Copies of all such documents are available for inspection at the corporate trust office of the Trustee in San Francisco, California. -2- Definitions of certain capitalized terms used in this Official Statement and not otherwise defined herein or in APPENDIX D hereto shall have the meanings set forth in the Indenture and the Installment Sale Agreements. The summaries of and references contained herein to the Indenture and the Installment Sale Agreements, statutes and other documents do not purport to be comprehensive or definitive and are qualified by reference to each such document, instrument or statute. THE AUTHORITY The Authority is a joint exercise of powers authority organized and operating under Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California and under an agreement which became effective January 24, 1961, among various cities and counties in the State. The Authority is operated by its Members and was established to protect local control, plan for the future and promote cooperation on issues in the San Francisco Area. The Authority has been designated by the State of California and federal governments as the official comprehensive planning agency for the San Francisco Bay Area. The Authority's enabling legislation provides it with the power to issue the Bonds. The Authority has no taxing power. THE BONDS ARE SPECIAL OBLIGATIONS OF THE AUTHORITY, PAYABLE SOLELY FROM AND SECURED BY THE PLEDGE OF REVENUES UNDER THE INDENTURE. NEITHER 'rFE AUTHORITY NOR THE MEMBERS OF THE AUTHORITY SHALL BE DIRECTLY OR INDIRECTLY OR CONTINGENTLY OR MORALLY OBLIGATED TO USE ANY OTHER MONEYS OR ASSETS OF TFE AUTHORITY OR ANY OF ITS MEMBERS TO PAY ALL OR ANY PORTION OF DEBT SERVICE DUE ON THE BONDS. THE BONDS AND THE OBLIGATION TO PAY PRINCIPAL OF AND INTEREST THEREON AND ANY REDEMPTION PREMIUM WITH RESPECT THERETO DO NOT CONSTITUTE AN INDEBTEDNESS OR AN OBLIGATION OF THE AUTHORITY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF, WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION, OR A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF ANY OF THEM, BUT SHALL BE PAYABLE SOLELY FROM THE REVENUES DESCRIBED HEREIN. NO OWNER OF THE BONDS SHALL HAVE THE RIGHT TO COMPEL TIE EXERCISE OF THE TAXING POWER OF THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF TO PAY ANY PRINCIPAL OF, PURCHASE PRICE, PREMIUM, IF ANY, OR INTEREST ON THE BONDS. THE AUTHORITY DOES NOT HAVE ANY TAXING POWER. THE FINANCING PLAN Proceeds of the Bonds will be used by the Authority to finance the acquisition and construction of capital improvements to water and/or wastewater systems of the Local Agencies. Brief descriptions of the projects of each Local Agency are set forth in "APPENDIX A Information Concerning the City of Ukiah's Water System" and "APPENDIX B - Information Concerning the Thermalito Irrigation District's Water System." Under each Installment Sale Agreement, the Trustee will establish a Project Fund into which a portion of the proceeds of the Bonds will be deposited. Amounts on deposit in each Project Fund will be disbursed from time to time upon requisitions of the related Local Agency for the purpose of financing such Local Agency's project. -3- ESTIMATED SOURCES AND USES OF FUNDS The anticipated sources and uses of funds with respect to the Bonds are set forth below. Sources: Amount Par Amount Plus: Original Issue Premium Less: Underwriter's Discount Total Sources: Uses: Deposit to City of Ukiah Project Fund Deposit to Thermalito Irrigation District Project Fund Deposit to City of Ukiah Reserve Fund Deposit to Thermalito Irrigation District Reserve Fund Deposit to Costs of Issuance Fund (4) Total Uses: (1) Includes expenses incurred in connection with the authorization, issuance, sale and delivery of the Bonds and execution and delivery of the Installment Sale Agreements, including compensation, fees and expenses (including fees and expenses for legal counsel) of the Authority, initial fees and expenses of the Trustee (including fees and expenses for legal counsel), the bond insurance premium, legal fees and expenses, filing and recording costs, Underwriter's discount, rating agency fees, costs of preparation and reproduction of documents and costs of printing. THE BONDS Authority for Issuance The Authority is authorized under Article 4 (commencing with section 6584) of the Act (the "Bond Law") to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to, public entities, including the Local Agencies, and to provide financing for public capital improvements of public entities, including the Local Agencies. The Bonds are being issued under the Bond Law, an Indenture of Trust, dated as of September 1, 2005 (the "Indenture"), between the Authority and Wells Fargo Bank, National Association San Francisco, California, as trustee (the "Trustee"), and a resolution of the governing body of the Authority. Bond Terms The Bonds are issuable in fully registered form without coupons in denominations of $5,000 or any integral multiple thereof, so long as no Bond has more than one maturity date. The Bonds will be dated as of the Closing Date, and will mature on September 1 in the years and in the respective principal amounts and bear interest (calculated on the basis of a 360-day year comprised of twelve 30-day months). Interest on the Bonds is payable semiannually on each March I and September 1, commencing March 1, 2006 (each, an "Interest Payment Date"), calculated based on a 360-day year comprised of 12 thirty-day months, to the person whose name appears on the registration books maintained by the Trustee as the registered owner thereof as of the 15th calendar day of the month preceding each Interest Payment Date, whether or not such day is a business day (each, a "Record Date"). Interest on the Bonds will be paid by check of the Trustee mailed by first class mail, postage prepaid, on each Interest Payment Date to the Owners of the Bonds at their respective addresses shown on the Registration Books as of the close of business on the preceding Record Date. At the written request of the Owner of Bonds in an aggregate principal amount of at least $1,000,000, which written request is on file with the Trustee as of any Record Date, the Trustee will pay interest on such Bonds on each succeeding Interest Payment Date by wire transfer in immediately available funds to such account of a financial institution within the United States of America as specified in such written request, which written request will remain in effect until rescinded in writing by the Owner. The Trustee will pay principal of the Bonds in lawful money of the United States of America by check of the Trustee upon presentation and surrender thereof at the Office of the Trustee. The Bonds will bear interest from the Interest Payment Date next preceding the date of authentication thereof unless a Bond is authenticated on or before an Interest Payment Date and after the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date; a Bond is authenticated on or before the first Record Date, in which event interest thereon will be payable from the Closing Date; or interest on any Bond is in default as of the date of authentication thereof, in which event interest thereon will be payable from the date to which interest has been paid in full, payable on each Interest Payment Date. The Bonds will be issued in fully registered form, without coupons, registered in the name of The Depository Trust Company, New York, New York ("DTC") or its nominee. DTC will act as securities depository for the Bonds. So long as the Bonds are held in the book-entry system of DTC, all payments of principal, interest and premium, if any, will be made by the Trustee to DTC as the registered owner of the Bonds. See "APPENDIX H - DTC and The Book-Entry Only System." Redemption Optional Redemption. The Bonds maturing on or before September 1, 20__, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 20m, are subject to redemption prior to maturity, at the option of the Authority, in whole or in part among maturities on such basis as designated by the Authority and by lot within a maturity, from any available source of funds, on September 1, 20__, and on any Interest Payment Date thereafter, at a redemption price expressed as a percentage of the principal amount of Bonds to be redeemed, as set forth in the following table, together with accrued interest thereon to the date fixed for redemption. Redemption Dates September 1,2013 and March 1, 2014 September 1,2014 and thereafter Redemption Price 101.0% 100.0 The Bonds may be redeemed from any source of available funds. The Authority is obligated to redeem the Bonds under this optional redemption provision from any Revenues derived from the prepayment of Installment Payments by a Local Agency (the "Optional -5- Prepayment Revenues"), and in that event the aggregate principal amount of each maturity of the Bonds to be redeemed must correspond to the aggregate principal amount of the Installment Payments which are prepaid. Mandatory Sinking Fund Redemption. The Bonds maturing on September 1 in each of the years ~ and ~ (the "Term Bonds") are subject to mandatory redemption in part by lot, at a redemption price equal to 100% of the principal amount thereof to be redeemed, without premium, in the aggregate respective principal amounts and on September I in the respective years as set forth in the following table; provided, however, that if some but not all of the Term Bonds have been redeemed under subsection (a) of this Section, the total amount of all future sinking fund payments shall be reduced by the aggregate principal amount of the Term Bonds so redeemed, to be allocated among such sinking fund payments on a pro rata basis in integral multiples of $5,000 (as set forth in a schedule provided by the Agency to the Trustee). Sinking Fund Redemption Date (September 1) Principal Amount To Be Redeemed Notice of Redemption. The Trustee shall mail (by first class mail) notice of any redemption to the respective Owners of any Bonds designated for redemption at their respective addresses appearing on the Registration Books, to the Bond Insurer, to the Securities Depositories and to one or more Information Services, at least 30 but not more than 60 days prior to the date fixed for redemption; provided, however, that neither failure to receive any such notice so mailed nor any defect therein will affect the validity of the proceedings for the redemption of such Bonds or the cessation of the accrual of interest thereon. Such notice must state the date of the notice, the redemption date, the redemption place and the redemption price and must designate the CUSIP numbers, the Bond numbers (if less than all Bonds of a maturity are to be redeemed) and the maturity or maturities (in the event of redemption of all of the Bonds of such maturity or maturities in whole) of the Bonds to be redeemed, and must require that such Bonds be then surrendered at the Office of the Trustee identified in such notice for redemption at the redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. The redemption notice may provide that the City has the right to rescind the notice. Right to Rescind Notice of Optional Redemption. The Authority has the right to rescind any notice of the optional redemption of Bonds by written notice to the Trustee on or prior to the dated fixed for redemption. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption for the payment in full of the Bonds then called for redemption. The Authority and the Trustee have no liability to the Owners of the Bonds or any other party related to or arising from such rescission of redemption. Manner of Redemption. Whenever provision is made for the redemption of less than all of the Bonds of the same maturity, the Trustee shall select the Bonds to be redeemed by lot in any manner which the Trustee in its sole discretion deems appropriate. For purposes of such selection, all Bonds will be deemed to be comprised of separate $5,000 denominations and such separate denominations will be treated as separate Bonds which may be separately redeemed. -6- Partial Redemption of Bonds. If only a portion of any Bond is called for redemption, then upon surrender of such Bond the Authority shall execute and the Trustee shall authenticate and deliver to the Owner thereof, at the expense of the Authority, a new Bond or Bonds of the same series and maturity date, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond to be redeemed. Effect of Redemption. From and after the date fixed for redemption, if notice of redemption has been duly mailed and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called shall cease to be entitled to any benefit under this Indenture other than the right to receive payment of the redemption price, and no interest shall accrue thereon from and after the redemption date specified in such notice. Transfer and Exchange of Bonds Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by a duly authorized attorney of such person, upon surrender of such Bond to the Trustee at its Office for cancellation, accompanied by delivery of a written instrument of transfer in a form acceptable to the Trustee, duly executed. The Trustee shall collect any tax or other governmental charge on the transfer of any Bonds. Whenever any Bond or Bonds shall be surrendered for transfer, the Authority shall execute and the Trustee shall authenticate and deliver to the transferee a new Bond or Bonds of like series, interest rate, maturity and aggregate principal amount. Any Bond may be exchanged at the Office of the Trustee for a like aggregate principal amount of Bonds of other authorized denominations and of the same series, interest rate and maturity. The Trustee shall collect any tax or other governmental charge on the exchange of any Bonds. The foregoing provisions relating to the transfer and exchange of Bonds are not applicable to the transfer and exchange of any Beneficial Owner's interests in the Bonds so long as the Bonds are held in the book-entry system described above. -7- DEBT SERVICE FOR THE BONDS The scheduled Installment Payments have been calculated to be sufficient, in the aggregate, to enable the Authority to pay the principal of and interest and premium, if any, on the Bonds when due and payable. The following table sets forth the scheduled debt service on the Bonds. Bond Year (Sept. 1) Principal Interest Total -8- The following table sets forth the scheduled Installment Payments. Bond City of Ukiah Thermalito Irrigation District Year (Sept. 1) Principal Interest Principal Interest -9- SECURITY FOR THE BONDS The Bonds are secured by a first lien on and pledge of all of the Revenues (described below) and a pledge of all of the moneys in the Revenue Fund, the Interest Account, the Principal Account and the Redemption Fund, including all amounts derived from the investment of such moneys. The Bonds are equally secured by a pledge, charge and lien upon the Revenues and such moneys without priority for number, date of Bonds, date of execution or date of delivery; and the payment of the interest on and principal of the Bonds and any premiums upon the redemption of any thereof shall be and are secured by an exclusive pledge, charge and lien upon the Revenues and such moneys. So long as any of the Bonds are Outstanding, the Revenues and such moneys shall not be used for any other purpose; except that out of the Revenues there may be apportioned such sums, for such purposes, as are expressly permitted by the Indenture. Revenues In the Indenture, the Authority transfers in trust and assigns to the Trustee, for the benefit of the Owners from time to time of the Bonds, all of the Revenues and all of the right, title and interest of the Authority in the Installment Payments. The Trustee shall be entitled to and will receive all of the Revenues, and any Revenues collected or received by the Authority are deemed to be held, and to have been collected or received, by the Authority as the agent of the Trustee and shall forthwith be paid by the Authority to the Trustee. Under the Indenture, "Revenues" means (a) all amounts derived from or with respect to the Installment Payments, including but not limited to all Optional Prepayment Revenues and all other payments of principal thereof and interest thereon, and (b) investment income with respect to any moneys held by the Trustee in the funds and accounts established under the Indenture. The Installment Payments General. The Revenues pledged under the Indenture consist primarily of the Installment Payments. The Indenture allocates the original principal amount of the Bonds to each Local Agency in the following amounts and percentages: Local Agency City of Ukiah Thermalito Irrigation District Principal Amount Each Local Agency's obligation to pay its Installment Payments secures only its allocated share of the Bonds. See "RISK FACTORS - No Cross-Collateralization." Under the Indenture and the Installment Sale Agreements, the Authority will assign its right to receive the Installment Payments to the Trustee, so that all Installment Payments will be made by the Local Agencies directly to the Trustee. Prepayment. The Installment Payments will be subject to the same provisions for prepayment prior to maturity as the Bonds and a prepayment of any Installment Payments will result in a redemption of a portion of Bonds. See "THE BONDS - Redemption" above. -10- Pledge of Net Revenues. Each Local Agency's obligation to make Installment Payments is a special obligation of the issuing Local Agency and is secured by an irrevocable pledge of the "Net Revenues" of the Local Agencies' respective water or wastewater system. In some cases, the Local Agency's pledge of Net Revenues to the Installment Payments may be on a parity with the Local Agency's pledge of Net Revenues to outstanding indebtedness. See the Appendix applicable to each Local Agency for further information. Each Installment Sale Agreement defines the following terms with respect to the applicable Water System or Wastewater System: "Net Revenues": for any period, an amount equal to all of the Gross Revenues received during such period minus the amount required to pay all Operation and Maintenance Costs becoming payable during such period. "Gross Revenues": all gross charges (including surcharges, if any) received for, and all other gross income and receipts derived by the Local Agency from, the ownership and operation of the Water System/Wastewater System or otherwise arising from the Water System/Wastewater System, including but not limited to (a) connection charges, (b) any amounts transferred to the Water Fund/Wastewater Fund from a Rate Stabilization Fund in accordance with the Installment Sale Agreement, and (c) investment earnings on amounts held in the Water Fund/Wastewater Fund or in any other fund established with respect to the Water System/Wastewater System. Gross Revenues do not include (i) refundable deposits made to establish credit, (ii) the proceeds of any ad valorem property taxes, and (iii) the proceeds of any special assessments or special taxes levied upon real property within any improvement district served by the Local Agency for the purpose of paying special assessment bonds or special tax obligations of the Local Agency relating to the Water System/Wastewater System. "Operation and Maintenance Costs": the reasonable and necessary costs and expenses paid by the Local Agency to maintain and operate the Water System/Wastewater System, including but not limited to (a) costs of acquisition of water to be supplied by the Water System, (b) costs of electricity and other forms of energy supplied to the Water System, (c) the reasonable expenses of management and repair and other costs and expenses necessary to maintain and preserve the Water System in good repair and working order, and (d) the reasonable administrative costs of the Local Agency attributable to the operation and maintenance of the Water System. Operation and Maintenance Costs do not include (i) Debt Service payable on obligations incurred by the Local Agency with respect to the Water System, including but not limited to the Installment Payments and any Parity Debt, (ii) depreciation, replacement and obsolescence charges or reserves therefor, and (iii) amortization of intangibles or other bookkeeping entries of a similar nature. An event of default under any Installment Sale Agreement may result in insufficient Revenues with which to pay the principal of, premium (if any) and interest on the Bonds. See "APPENDIX D - Summary of Principal Legal Documents". Separate Security for Each Installment Sale Agreement. Each Installment Sale Agreement is secured solely by the Net Revenues of the water system or wastewater system to which such Installment Payments relate. As a result, if Net Revenues are not sufficient to ensure the timely payment of the respective Installment Payments, Net Revenues of other Local Agencies will not be available to pay the Installment Payments as they become due. -11- Application of Gross Revenues. Each Local Agency will establish a Water Fund or Wastewater Fund, as applicable. Pursuant to the Installment Sale Agreements, a Local Agency will deposit all of the Gross Revenues in the Water Fund/Wastewater Fund immediately upon receipt, and will apply the amounts in the Water Fund/Wastewater Fund as set forth in the applicable Installment Sale Agreement and in any Parity Debt Documents (see "Parity Debt" below). In addition to the transfers required to be made under any Parity Debt Documents, the Local Agencies will apply amounts on deposit in the Water Fund/Wastewater Fund to pay when due the following amounts in the following order of priority: (i) All Operation and Maintenance Costs. Installment Payments and all payments of principal of and interest on any Parity Debt (as defined in "Parity Debt" below). Payment of the Installment Payments and the principal of and interest on any Parity Debt will be made without preference or priority among the Installment Payments and such Parity Debt. If the amount of Net Revenues on deposit in the Water Fund/Wastewater Fund are any time insufficient to enable the Local Agency to pay when due the Installment Payments and the principal of and interest on any Parity Debt, such payments will be made on a pro rata basis. To the Trustee the amount of any deficiency in the Reserve Fund and in any reserve fund established for any Parity Debt, the notice of which deficiency has been to the Local Agency. (iv) Any other payments required to comply with the provisions of the Installment Sale Agreement, any outstanding parity debt, and any Parity Debt Documents. (v) Any other purposes authorized under the Installment Sale Agreement. Each Installment Sale Agreement provides that the Local Agency will manage, conserve and apply the Net Revenues on deposit in the Water Fund/Wastewater Fund in such a manner that all deposits required to be made under the Installment Sale Agreement are made at the times and in the amounts so required. Subject to the foregoing sentence, so long as no Event of Default has occurred and is continuing hereunder, a Local Agency may use and apply moneys in the Water Fund/Wastewater Fund for (A) the payment of any subordinate obligations or any unsecured obligations, (ii) the acquisition and construction of improvements to the Water System/Wastewater System, (iii) the prepayment of any other obligations of the Local Agency relating to the Water System/Wastewater System, or (iv) any other lawful purposes of the Local Agency. Budget and Appropriation of Installment Payments. Each Local Agency covenants in its Installment Sale Agreement to adopt all necessary budgets and make all necessary appropriations of the Installment Payments from the Net Revenues. If any Installment Payment requires the adoption by the Local Agency of any supplemental budget or appropriation, the Local Agency will promptly adopt the same. Rate Stabilization Fund. Each Local Agency has the right at any time under its Installment Sale Agreement to establish a fund for the purpose of stabilizing the rates and charges imposed by the City with respect to the Water System/Wastewater System. From time to time the Local Agency may deposit amounts in the Rate Stabilization Fund, from any source of legally available funds, including but not limited to Net Revenues which are released from the -12- pledge and lien which secures the Installment Payments and any Parity Debt, as the Local Agency may determine. The Local Agency may, but is not be required to, withdraw from any amounts on deposit in the Rate Stabilization Fund and deposit such amounts in the Water Fund/Wastewater Fund in any Fiscal Year for the purpose of paying the Installment Payments or the principal of and interest on any Parity Debt coming due and payable in such Fiscal Year. Amounts so transferred from the Rate Stabilization Fund to the Water Fund/Wastewater Fund in any Fiscal Year will constitute Gross Revenues for such Fiscal Year (except as otherwise provided herein), and will be applied for the purposes of the Water Fund/Wastewater Fund. Amounts on deposit in the Rate Stabilization Fund are not pledged to and do not secure the Installment Payments or any Parity Debt. All interest or other earnings on deposits in the Rate Stabilization Fund will be retained therein or, at the option of the City, be applied for any other lawful purposes. A Local Agency may any time to withdraw any or all amounts on deposit in the Rate Stabilization Fund and apply such amounts for any other lawful purposes of the Agency. Rate Covenant. In each Installment Sale Agreement, the applicable Local Agency covenants to fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Water SystemNVastewater System (as applicable) during each Fiscal Year, which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield Gross Revenues sufficient to pay the following amounts in the following order of priority: (a) All Operation and Maintenance Costs estimated by the Local Agency to become due and payable in such Fiscal Year. (b) All Installment Payments and all payments of principal of and interest on any Parity Debt as they become due and payable during such Fiscal Year, without preference or priority. (c) All amounts, if any, required to restore the balance in the Reserve Fund to the full amount of the Reserve Requirement. (d) All payments required to meet any other obligations of the Local Agency which are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross Revenues or the Net Revenues during such Fiscal Year. In addition, each Local Agency covenants to fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Water SystemNVastewater System (as applicable) during each Fiscal Year which are sufficient to yield Net Revenues which are at least equal to 120% of the amount described in the preceding clause (b) for such Fiscal Year. See "RISK FACTORS- Proposition 218" below. Issuance of Parity Debt. Each Installment Sale Agreement provides that, except for obligations incurred to prepay or discharge the Installment Payments or any Parity Debt, each Local Agency may not issue or incur any Parity Debt during the term of the Installment Sale Agreement unless: (a) No Event of Default has occurred and is continuing. (b) The Net Revenues (excluding any amounts derived from a Rate Stabilization Fund), calculated in accordance with sound accounting principles, as shown by the books of the Local Agency for the most recent completed Fiscal Year for which -13- audited financial statements of the Local Agency are available, or for any more recent consecutive 12 month period selected by the Local Agency, in either case verified by an Independent Accountant or a Fiscal Consultant or shown in the audited financial statements of the Local Agency, plus (at the option of the Local Agency) any Additional Revenues, at least equal 120% of Maximum Annual Debt Service (taking into account the Parity Debt then proposed to be issued); and (c) Except in the case of Parity Debt representing a loan from the State or any agency of the State, or a loan from the federal government or any agency thereof, there shall be established from the proceeds of such Parity Debt a reserve fund for the security of such Parity Debt, in an amount equal to the lesser of (i) the maximum amount of debt service required to be paid by the Local Agency with respect to such Parity Debt during any Fiscal Year, or (ii) the maximum amount then permitted under the Tax Code; and (d) The trustee or fiscal agent for such Parity Debt is the same entity performing the functions of Trustee under the Indenture. Superior and Subordinate Obligations. Each Installment Sale Agreement provides that the Local Agencies may not issue or incur any additional bonds or other obligations during the term of the Installment Sale Agreement having any priority in payment of principal or interest out of the Gross Revenues or the Net Revenues over the Installment Payments. However, the Installment Sale Agreement allows the Local Agencies to issue or incur (a) Parity Debt (see "Parity Debt" above), or (b) obligations which are either unsecured or which are secured by an interest in the Net Revenues which is junior and subordinate to the pledge of and lien upon the Net Revenues established under the Installment Sale Agreement. Reserve Funds General. Each Installment Sale Agreement creates a separate Reserve Fund for payment of the respective Installment Payments, and is available for use by each respective Local Agency. Amounts in each Reserve Fund may be used only to supplement insufficient amounts for payment of the Installment Payments of the respective Local Agency to which the Reserve Fund relates. Deposits. The Trustee for each Installment Sale Agreement will create a separate Reserve Fund for such Installment Sale Agreement. Each Local Agency's Reserve Fund will initially be funded with a reserve fund surety bond issued by the Insurer, in an amount equal to the respective Reserve Requirement (as defined below). Reserve Requirement. The term "Reserve Requirement" means, as to each Installment Sale Agreement considered independently, as of any date of calculation, an amount as follows: Local Agency Reserve Requirement City of Ukiah Thermalito Irrigation District Use of Reserve Fund. Each Installment Sale Agreement provides that, semiannually on or prior to each Installment Payment Date, the Trustee will transfer any moneys in the Reserve Fund in excess of the Reserve Requirement to the Installment Payment Fund to be credited -14- towards the Installment Payment coming due and payable on such Installment Payment Date. If on any Installment Payment Date the moneys available in the Installment Payment Fund are not at least equal to the amount of the Installment Payment then coming due and payable, the Trustee will apply the moneys available in the Reserve Fund to make such payments on behalf of the Local Agency by transferring the amount necessary for this purpose to the Installment Payment Fund. Qualified Reserve Fund Credit Instrument. Each Installment Sale Agreement provides that, with the written consent of the Insurer, each Local Agency may at any time release funds from the Reserve Fund, in whole or in part, by tendering to the Trustee: (a) a Qualified Reserve Fund Credit Instrument, and (b) an opinion of Bond Counsel stating that such release will not, of itself, cause interest on the Bonds to become includable in gross income for purposes of federal income taxation. Upon tender of such items to the Trustee, the Trustee will transfer such funds from the Reserve Fund to the Local Agency for deposit into a separate account to be held by the Local Agency and expended to finance improvements to the Water SystemNVastewater System (as applicable) in accordance with applicable state and federal law. Upon the expiration of any Qualified Reserve Fund Credit Instrument, the Local Agency will either (a) replace such Qualified Reserve Fund Credit Instrument with a new Qualified Reserve Fund Credit Instrument, or (b) deposit with the Trustee an amount of funds equal to the Reserve Requirement, to be derived from any source of legally available funds of the Local Agency. No Cross-Collateralization. Amounts on deposit in each Reserve Fund may be used only to supplement insufficient Installment Payments due from the respective Local Agency, and no Reserve Fund will cross-collateralize another Local Agency's Installment Payment obligations. See "RISK FACTORS - No Cross-Collateralization." No Cross-Collateralization No Local Agency has covenanted to pay the Installment Payments of any other Local Agency or to make up any deficit in the payment to registered owners of the Bonds which occurs by reason of another Local Agency's nonpayment. Moreover, moneys in each Local Agency's Reserve Fund are not cross-collateralized to secure debt relating to any other Local Agency, because amounts in each respective Reserve Fund may be used only to supplement insufficient amounts available for payment of the Installment Payments of the respective Local Agency. For this reason, one Local Agency's default in the payment of its Installment Payments could cause a default in the payments of principal of and interest on all of the Bonds if moneys in that Local Agency's Reserve Fund are insufficient to make up the deficit caused by such nonpayment. No Additional Bonds Under the Indenture, the Authority has covenanted that it will not issue or incur any additional bonds, notes or other indebtedness payable out of the Revenues securing the payment of the Bonds. -15- MUNICIPAL BOND INSURANCE POLICY The payment of principal and interest on the Bonds when due will be insured by a bond insurance policy to be issued concurrently with the delivery of the Bonds by XL Capital Assurance Inc. (the "Insurer" or "XLCA"). The following information has been furnished by the Insurer for use in this Official Statement. No representation is made by the Authority, the Local Agencies or the Underwriter as to the accuracy or completeness of such information, or the absence of material adverse changes therein at any time subsequent to the date hereof. Reference is made to APPENDIX I for a specimen of the Insurer's policy. General The Insurer is a monoline financial guaranty insurance company incorporated under the laws of the State of New York. The Insurer is currently licensed to do insurance business in, and is subject to the insurance regulation and supervision by, all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands and Singapore. The Insurer is an indirect wholly owned subsidiary of XL Capital Ltd, a Cayman Islands corporation ("XL Capital Ltd"). Through its subsidiaries, XL Capital Ltd is a leading provider of insurance and reinsurance coverages and financial products to industrial, commercial and professional service firms, insurance companies and other enterprises on a worldwide basis. The common stock of XL Capital Ltd is publicly traded in the United States and listed on the New York Stock Exchange (NYSE: XL). XL Capital Ltd is not obligated to pay the debts of or claims against the Insurer. The Insurer was formerly known as The London Assurance of America Inc. ("London"), which was incorporated on July 25, 1991 under the laws of the State of New York. On February 22, 2001, XL Reinsurance America Inc. ("XL Re") acquired 100% of the stock of London. XL Re merged its former financial guaranty subsidiary, known as XL Capital Assurance Inc. (formed September 13, 1999) with and into London, with London as the surviving entity. London immediately changed its name to XL Capital Assurance Inc. All previous business of London was 100% reinsured to Royal Indemnity Company, the previous owner at the time of acquisition. Reinsurance The Insurer has entered into a facultative quota share reinsurance agreement with XL Financial Assurance Ltd ("XLFA"), an insurance company organized under the laws of Bermuda, and an affiliate of the Insurer. Pursuant to this reinsurance agreement, the Insurer expects to cede up to 90% of its business to XLFA. The Insurer may also cede reinsurance to third parties on a transaction-specific basis, which cessions may be any or a combination of quota share, first loss or excess of loss. Such reinsurance is used by the Insurer as a risk management device and to comply with statutory and rating agency requirements and does not alter or limit the Insurer's obligations under any financial guaranty insurance policy. With respect to any transaction insured by XLCA, the percentage of risk ceded to XLFA may be less than 90% depending on certain factors including, without limitation, whether XLCA has obtained third party reinsurance covering the risk. As a result, there can be no assurance as to the percentage reinsured by XLFA of any given financial guaranty insurance policy issued by XLCA, including the Policy. Based on the audited financials of XLFA, as of December 31, 2004, XLFA had total assets, liabilities, redeemable preferred shares and shareholders' equity of $1,173,450,000, -16- $558,655,000, $39,000,000 and $575,795,000, respectively, determined in accordance with generally accepted accounting principles in the United States ("US GAAP"). XLFA's insurance financial strength is rated "Aaa" by Moody's and "AAA" by S&P and Fitch Inc. In addition, XLFA has obtained a financial enhancement rating of "AAA" from S&P. The obligations of XLFA to the Insurer under the reinsurance agreement described above are unconditionally guaranteed by XL Insurance (Bermuda) Ltd ("XLI"), a Bermuda company and one of the world's leading excess commercial insurers. XLI is a wholly owned indirect subsidiary of XL Capital Ltd. In addition to A.M. Best's rating of "A+" (Negative Outlook), XLI's insurance financial strength rating is "Aa2" (Outlook Negative) by Moody's, "AA-" by Standard & Poor's and "AA" (Ratings Watch Negative) by Fitch. The ratings of XLFA and XLI are not recommendations to buy, sell or hold securities, including the Bonds and are subject to revision or withdrawal at any time by Moody's, Standard & Poor's or Fitch. Notwithstanding the capital support provided to the Insurer described in this section, the Bondholders will have direct recourse against the Insurer only, and neither XLFA nor XLI will be directly liable to the Bondholders. Financial Strength and Financial Enhancement Ratings of XLCA The Insurer's insurance financial strength is rated "Aaa" by Moody's and "AAA" by Standard & Poor's and Fitch, Inc. ("Fitch"). In addition, XLCA has obtained a financial enhancement rating of "AAA" from Standard & Poor's. These ratings reflect Moody's, Standard & Poor's and Fitch's current assessment of the Insurer's creditworthiness and claims-paying ability as well as the reinsurance arrangement with XLFA described under "Reinsurance" above. The above ratings are not recommendations to buy, sell or hold securities, including the Bonds and are subject to revision or withdrawal at any time by Moody's, Standard & Poor's or Fitch, Any downward revision or withdrawal of these ratings may have an adverse effect on the market price of the Bonds. The Insurer does not guaranty the market price of the Bonds nor does it guaranty that the ratings on the Bonds will not be revised or withdrawn. Capitalization of the Insurer Based on the audited financials of XLCA, as of December 31, 2004, XLCA had total assets, liabilities, and shareholder's equity of $827,815,000, $593,849,000, and $233,966,000, respectively, determined in accordance with U.S. GAAP. Based on the audited statutory financial statements for XLCA as of December 31, 2004 filed with the State of New York Insurance Department, XLCA has total admitted assets of $341,937,000, total liabilities of $143,494,000 and total capital and surplus of $198,443,000 determined in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities ("SAP"). Incorporation by Reference of Financials For further information concerning XLCA and XLFA, see the financial statements of XLCA and XLFA, and the notes thereto, incorporated by reference in this Official Statement. The financial statements of XLCA and XLFA are included as exhibits to the periodic reports filed with the Securities and Exchange Commission (the "Commission") by XL Capital Ltd and may be reviewed at the EDGAR website maintained by the Commission. All financial statements of XLCA and XLFA included in, or as exhibits to, documents filed by XL Capital Ltd pursuant to Section 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934 on or prior to the date of this Official Statement, or after the date of this Official Statement but prior to termination of the -17- offering of the Bonds, shall be deemed incorporated by reference in this Official Statement. Except for the financial statements of XLCA and XLFA, no other information contained in XL Capital Ltd's reports filed with the Commission is incorporated by reference. Copies of the statutory quarterly and annual statements filed with the State of New York Insurance Department by XLCA are available upon request to the State of New York Insurance Department. Regulation of the Insurer The Insurer is regulated by the Superintendent of Insurance of the State of New York. In addition, the Insurer is subject to regulation by the insurance laws and regulations of the other jurisdictions in which it is licensed. As a financial guaranty insurance company licensed in the State of New York, the Insurer is subject to Article 69 of the New York Insurance Law, which, among other things, limits the business of each insurer to financial guaranty insurance and related lines, prescribes minimum standards of solvency, including minimum capital requirements, establishes contingency, loss and unearned premium reserve requirements, requires the maintenance of minimum surplus to policyholders and limits the aggregate amount of insurance which may be written and the maximum size of any single risk exposure which may be assumed. The Insurer is also required to file detailed annual financial statements with the New York Insurance Department and similar supervisory agencies in each of the other jurisdictions in which it is licensed. The extent of state insurance regulation and supervision varies by jurisdiction, but New York and most other jurisdictions have laws and regulations prescribing permitted investments and governing the payment of dividends, transactions with affiliates, mergers, consolidations, acquisitions or sales of assets and incurrence of liabilities for borrowings. THE FINANCIAL GUARANTY INSURANCE POLICIES ISSUED BY THE INSURER, INCLUDING THE BOND INSURANCE POLICY, ARE NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW. The principal executive offices of the Insurer are located at 1221 Avenue of the Americas, New York, New York 10020 and its telephone number at this address is (212) 478- 3400. The Insurer accepts no responsibility for the accuracy or completeness of this Official Statement or any other information or disclosure contained herein, or omitted herefrom, other than with respect to the accuracy of the information regarding the Insurer and its affiliates set forth under this heading. In addition, the Insurer makes no representation regarding the Bonds or the advisability of investing in the Bonds. RISK FACTORS The fo/lowing information should be considered by prospective investors in evaluating the Bonds. However, the fo/lowing does not purport to be an exhaustive listing of risks and other considerations which may be relevant to investing in the Bonds. In addition, the order in which the fo/lowing information is presented is not intended to reflect the relative importance of any such risks. Increased Expenses -18- There can be no assurance that expenses of the Local Agencies with respect to their respective water and wastewater systems will be consistent with the levels contemplated in this Official Statement. Changes in technology, increases in the cost of operation or other expenses could require increases in rates or charges in order to comply with the rate covenant described herein and in the Installment Sale Agreements, and could increase the possibility of nonpayment of the Installment Payments and, ultimately, the Bonds. See the Appendices to this Official Statement relating to the Local Agencies. Insurance The Installment Sale Agreements obligate the Local Agencies to obtain and keep in force various forms of insurance or self-insurance, subject to deductibles, for repair or replacement of a portion of the applicable water or wastewater system in the event of damage or destruction to such portion of the water or wastewater system. No assurance can be given as to the adequacy of any such self-insurance or any additional insurance to fund necessary repair or replacement of any other portion of the water or wastewater system. Significant damage to a water or wastewater system could cause a Local Agency to be unable to generate sufficient Net Revenues to pay its Installment Payments. Additional Obligations Payable from Net Revenues Each Local Agency may issue bonds or enter into other obligations payable from Net Revenues pledged for payment of its Installment Payments on a parity with its pledge of such Net Revenues to the Installment Payments. The ability of the Local Agency to enter into such parity bonds is subject to certain requirements set forth in each Installment Sale Agreement. See "SECURITY FOR THE BONDS". Each Local Agency may also issue bonds or enter into obligations payable from Net Revenues which are subordinate to its respective Installment Payments. Proposition 218 On November 5, 1996, California voters approved Proposition 218--Voter Approval for Local Government Taxes--Limitation on Fees, Assessments, and Charges--Initiative Constitutional Amendment. Proposition 218 added Articles XIIIC and XIIID to the California Constitution, imposing certain vote requirements and other limitations on the imposition of new or increased taxes, assessments and property-related fees and charges. See the Appendices relating to each of the Local Agencies for a discussion of specific issues raised by Proposition 218. Earthquake Risk Most regions in California are subject to significant seismic activity. The casualty and liability insurance maintained by the Local Agencies may not cover losses due to earthquake. If there were to be an occurrence of severe seismic activity in the service areas of the Local Agencies, there could be substantial damage to and interference with the water system and wastewater systems of the Local Agencies, which could impact the receipt of Net Revenues. No Cross-Collateralization -19- No Local Agency has covenanted to pay the Installment Sale Agreement payments of any other Local Agency or to make up any deficit in the payment to registered owners of the Bonds which occurs by reason of another Local Agency's nonpayment. Moreover, moneys in each Reserve Fund for an Installment Sale Agreement are not cross-collateralized to secure the Installment Payments of any other Local Agency, because amounts in each particular Reserve Fund may be used only to supplement insufficient amounts available from the respective Local Agency to which the Installment Payments relate. For this reason, one Local Agency's default in the payment of its Installment Sale Agreement payments could cause a default in the payments of principal of and interest on the Bonds if moneys in that Local Agency's Reserve Fund are insufficient to make up the deficit caused by such nonpayment. See "SECURITY FOR 'rFE BONDS - The Installment Payments." Bankruptcy Risks The enforceability of the rights and remedies of the owners of the Bonds and the obligations of the Local Agencies may become subject to the following: the federal bankruptcy code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equitable principles which may limit the specific enforcement under state law of certain remedies: the exercise by the United States of America of the powers delegated to it by the federal Constitution; and the reasonable and necessary exercise, in certain exceptional situations of the police power inherent in the sovereignty of the State of California and its governmental bodies in the interest of servicing a significant and legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state government, if initiated, could subject the owners of the Bonds to judicial discretion and interpretation of their rights in bankruptcy or otherwise and consequently may entail risks of delay, limitation, or modification of their rights. Loss of Tax Exemption In order to maintain the exclusion from gross income for federal income tax purposes of the interest on the Bonds, the Authority and the Local Agencies have covenanted in the Indenture and the Installment Sale Agreements, respectively, to comply with each applicable requirement of Section 103 and Sections 141 through 150 of the Internal Revenue Code. The interest on the Bonds could become includable in gross income for purposes of federal income taxation retroactive to the date of issuance of the Bonds, as a result of acts or omissions of the Authority or any Local Agency in violation 'of this or other covenants in the Indenture and the Installment Sale Agreements, respectively. Should such an event of taxability occur, the Bonds are not subject to redemption or any increase in interest rates and will remain outstanding until maturity or until redeemed under one of the redemption provisions contained in the Indentures. See "TAX MATTERS" herein. TAX MATTERS In the opinion of Jones Hall, A Professional Law Corporation, Bond Counsel, subject, however, to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from the gross income for federal income tax purposes, and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that, for purposes of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. -20- The opinions set forth in the preceding paragraph are subject to the condition that the Authority and the Local Agencies comply with all requirements of the Internal Revenue Code of 1986 (the "Tax Code") that must be satisfied subsequent to the issuance of the Bonds in order that such interest be, or continue to be, excluded from gross income for federal income tax purposes. The Authority and the Local Agencies have each covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes "original issue discount" for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which each Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes "original issue premium" for purposes of federal income taxes and State of California personal income taxes. Deminimis original issue discount is disregarded. Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight- line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual and corporate alternative minimum taxes. Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not deductible for federal income tax purposes. Owners of Premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds. In further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Bonds other than as expressly described above. The form of Bond Counsel's opinion is set forth in APPENDIX E. -21- RATING Based upon the Bond Insurer's commitment to deliver its policy of municipal insurance for the Bonds, Standard & Poor's Ratings Services ("S&P") has assigned its municipal bond rating of .... to the Bonds, with the understanding that upon delivery of the Bonds, a bond insurance policy insuring the payment when due of the principal and interest evidenced by the Bonds will be issued by the Insurer. Such rating reflects only the views of such organization and an explanation of the significance of such rating may be obtained from S&P. Generally, a rating agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its own. There is no assurance such rating will continue for any given period of time or that such rating will not be revised downward or withdrawn entirely by S&P, if in the judgment of the S&P, circumstances so warrant. Any downward change in or withdrawal of the rating might have an adverse effect on the market price or marketability of the Bonds. UNDERWRmNG The Bonds are being purchased by (the "Underwriter"). The Underwriter has agreed to purchase the Bonds at an aggregate purchase price of $ (constituting the $ .00 aggregate principal amount of the Bonds, plus a net original issue premium of $ ., and less an Underwriter's discount of $ ). The Underwriter will purchase all of the Bonds, if any are purchased. The obligation to make such purchase is subject to certain terms and conditions, the approval of certain legal matters by counsel, and certain other conditions. The Underwriter may offer and sell Bonds to certain dealers and others at a price lower than the offering price stated on the cover page of this Official Statement. The offering price may be changed from time to time by the Underwriter. CONTINUING DISCLOSURE The Authority. The Authority has covenanted in a continuing disclosure certificate (the "Authority Continuing Disclosure Certificate"), for the benefit of the holders and beneficial owners of the Bonds, to provide notices of the occurrence of certain enumerated events. The notices of such events will be timely filed by the Authority or the dissemination agent with the Repositories and a State repository, if any. The specific nature of the information to be contained in the notices of material events and certain other terms of the Authority Continuing Disclosure Certificate are summarized in "APPENDIX F - Form of Authority Continuing Disclosure Certificate." These covenants have been made to assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) (the "Rule"). The Authority has never failed to comply, in any material respect, with an undertaking under the Rule. The Local Agencies. Each Local Agency has covenanted in a continuing disclosure certificate (each a "Local Agency Continuing Disclosure Certificate"), for the benefit of the holders and beneficial owners of the Bonds, to provide annually certain financial information and operating data relating to that Local Agency by not later nine months following the end of the -22- Local Agency's fiscal year (which currently ends on June 30), or March 31 of each year commencing March 31, 2006, including the audited Financial Statements of the Local Agency (together, the "Local Agency Annual Report"), and to provide notices of the occurrence of certain other enumerated events. Neither the City of Ukiah nor the Thermalito Irrigation District has ever failed to comply, in any material respect, with an undertaking under the Rule. The specific nature of the information to be contained in the Local Agency Annual Report or notices of material events and certain other terms of the Local Agency Continuing Disclosure Certificate are summarized in "APPENDIX G - Form of Local Agency Continuing Disclosure Certificate." ABSENCE OF LITIGATION The Local Agencies. Each Local Agency will certify (or its legal counsel will issue an opinion) in connection with the issuance of the Bonds to the effect that there is no action, suit or proceeding known to the respective Local Agency to be pending or threatened, restraining or enjoining the execution or delivery of the Bonds, the Installment Payments, the Indenture or the Installment Sale Agreements, or in any way contesting or affecting the validity of the foregoing or any proceeding of the Local Agency taken with respect to any of the foregoing. The Authority. There is no pending or, to the best knowledge of the Authority, threatened litigation seeking to restrain or enjoin the issuance, sale, execution or delivery of the Bonds, or in any way contesting or affecting the validity of the Bonds or any proceeding of the Authority taken with respect to the issuance or sale thereof, the pledge or application of any moneys or security provided for the payment of the Bonds, or existence or powers of the Authority, or the authority of the Authority to enter into any document relating to the Indenture, the Installment Sale Agreements or the Bonds. CERTAIN LEGAL MA'I-FERS Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, will render an opinion with respect to the validity and enforceability of the Indenture and as to the validity of the Bonds. The proposed form of this opinion is attached as APPENDIX E. Certain legal matters will also be passed upon for the Authority by Jones Hall, A Professional Law Corporation, as Disclosure Counsel, and for each Local Agency by its counsel. Certain legal matters will also be passed upon by Kenneth K Moy, counsel to the Authority. Bond Counsel and Disclosure Counsel will receive compensation contingent upon the sale and delivery of the Bonds. -23- EXECUTION This Official Statement and its distribution have been duly authorized and approved by the Authority and the Local Agencies. ASSOCIATION OF BAY ARF_.A GOVERNMENTS Finance Director -24- APPENDIX A INFORMATION CONCERNING THE CITY OF UKIAH'S WATER SYSTEM The City of Ukiah Incorporated on March 8, 1876, the City of Ukiah (the "City") is located approximately 100 miles north of San Francisco in the northern coastal region of California on U.S. Highway 101. The area is centrally located between the Bay Area, Eureka and Sacramento. With the northern Coastal Mountains as a backdrop, the City is situated in the fertile Yokayo Valley. Surrounded by rich grape vineyards and pear orchards, Ukiah is just over an hour drive from the Mendocino Coast and the coastal redwoods. The largest industry in the City and in the rest of Mendocino County (the "County") is agriculture. However, in the past 10 years more and more small non-agricultural manufacturer, information firms and mail order businesses have started operations here. And, as the County seat, a large number of the City's residents are employed by government. The City operates under a Council-City Manager form of government and provides a full range of services, including police, fire fighting and medical emergency, sewage treatment, water treatment and distribution, electric power distribution and generation, street lighting and maintenance, parks and recreation, and a municipal golf course. The current members of the City's City Council are listed below: Member Mark Ashiku, Mayor Phil Baldwin, Vice Mayor Mad Rodin Doug Crane John McCowen Ending date of current term November 2006 November 2006 November 2008 November 2008 November 2006 See "Background Demographic Information" below. The Water System The City has been providing drinking water to its residents since 1880. The Water System consists of the following: Water Treatment Plant: The Water System's primary water source is the Russian River, which is classified by the U.S. Environmental Protection Agency as surface water. The primary process in surface water treatment is chemical clarification by coagulation and flocculation, sedimentation, and filtration. Ukiah's Water Treatment Plant uses up-flow tanks, which combine the processes of coagulation, flocculation, and sedimentation in a single compartmented tank. The water is then filtered and chlorinated before it can be delivered to the Water System's customers. The Water Treatment Plant has a capacity to pump and treat between 5 and 5.5 million gallons of drinking water per day, depending on the turbidity of the water. A-1 · Storage: The City has eight storage tanks with a combined storage capacity of six million gallons. · Distribution: A water distribution system, including pipelines, water mains, fire hydrants, and water valves. The Water Division of the Ukiah Public Utilities (the "Utilities Department") maintains the Water System. The City's Finance Department is responsible for managing billing for the Water System; the billing is done on a consolidated basis with the City's other utilities. Service Area The Water System's service area is not co-terminous with the City's boundaries; the Water System currently serves approximately 5,700accounts (as of June 30, 2004), of which approximately 25 are currently outside the City's boundaries. With limited exceptions, new residents and businesses in the City are required to connect to the Water System. Sources of Water Supply The City has the following existing water rights: Russian River: Pursuant to Water Right Permit 12952 (Application 15704), the City has a right to divert Russian River underflow for municipal purposes. Under the Permit, water can be diverted at a rate not to exceed 20.0 cubic feet per second from January 1 through December 31, which is approximately 3 times the City's current usage. The Permit expired on December 31, 2000 and the City filed a Petition for Extension of Time with the State Water Resources Control Board. The Permit is current and valid while the Petition for Extension of Time is processed. The City expects that the Petition will be approved within the next few years, subsequent to completion of the required environmental review process. The City expects its permit, when extended, will allow the same diversion rate as stated in the original Permit. The City believes it would have sufficient water to serve existing demand and the level of demand projected over the next 10 years even if the City's permit were not extended and its rights to Russian River underflow were limited to its historical peak usage (1.7 million HCF per year). The City also has a pre-1914/pre-1949 Appropriative Right for diversion of 2.8 cubic feet per second from the Russian River, for a maximum of 2,072.2 acre-feet annually. · Groundwater: The City has an appropriative right to groundwater at its Well No. 4 of approximately 1,500 gallons per minute (no maximum). Lake Mendocino: The Mendocino County Russian River Flood Control and Water Conservation Improvement District (the "District") holds water right Permit 12947B (Application 12919B) for storage and use of up to 8,000 acre-feet of water in Lake Mendocino. The City entered into a water supply agreement with the District that allows the City to use up to 800 acre-feet annually of the District's water. The water supply agreement provides that the City's right to receive water is not guaranteed, and is subject to a number of conditions, including drought. The water supply agreement was effective December 30, 2004 and has a rolling six-year term; the initial termination date was December 31, 2010 and, unless a party notifies the other A-2 in any year of its intent to terminate the agreement, the term is automatically extended for another 12-months. Historical Water Production The table below sets forth a five-year history of water pumped and processed at the Water Treatment Plant, measured in millions of gallons. Table 1 WATER PRODUCTION (in millions of gallons) 1999-2004 Year Annual Daily Average 1999 1,376 3.77 2000 1,338 3.67 2001 1,326 3.63 2002 1,357 3.72 2003 1,262 3.46 2004 1,346 3.69 Source: City of Ukiah. Customer Base Active Water Connections. The Water System has over 5,500 service connections. The City's current rate structure does not differentiate between commercial and residential customers and the City does not have industrial users. The table below sets forth a three-year summary of active water accounts by size for the Water System. As of June 30, 2004, approximately 87% of water connections were 3/4" meters serving single-family homes. Table 2 Active Water Connections Size June 30,2002 June 30,2003 June 30,2004 3/4" 4,806 4,833 4,969 1" 275 275 268 I 1/2 124 128 138 2" 111 118 116 3" 40 39 30 4" 86 90 94 6"+ 69 75 70 5,511 5,558 5,684 Source: City of Ukiah. A-3 The following table shows average annual water usage by meter size on an aggregate basis for fiscal years 2001-02 through 2003-04. Table 3 Summary of Average Water Usage by Meter Size Fiscal Year 2001-02 through 2003-04 Meter Size Annual Average (hcf)¢) 3/4" 904,000 1" 134,000 1.5" 125,000 2" 206,000 3" 96,000 4" 190,000 6"+ 51,000 Total 1,706,000 (1) 1 hcf equals 748 gallons Source: City of Ukiah. Largest Users. The following table shows the top ten water users in the City based on total gallons consumed and revenue to the Water System during Fiscal Year 2003-04. Table 4 Top Ten Customers by Water Volume Sold and Revenues 2003-04 Total Gallons Total Account Name Description Consumed Revenue City of Ukiah * Golf course and civic 129,000 $96,000 facilities Ukiah Unified School District Schools and 70,300 53,000 · administration facilities. County of Mendocino * 21,000 17,000 Russian River Cemetery Cemetery 18,500 14,000 Dist. Manor Oaks Mobile Estates Mobile homes, multi- 17,000 13,000 family residential units Mendocino Brewing Brewery 15,000 12,000 Company Ukiah Adventist Hospital Hospital 14,000 11,000 Orchard Manor Apartments Multi-Family residential 9,500 8,000 units Wal-Mart Stores Retail 8,200 7,000 Hampton Inn Ukiah Hotel/Motel 6,000 5,000 Source: Estimated by Bartle Wells Associates based on customer use information provided by the City of Ukiah. Customers marked with an asterisk have multiple accounts. Total system consumption is approximately 1.7 million hcf per year. A-4 Water Rates and Charges The City Council has the independent authority to establish rates and fees for use of the Water System, subject to the provisions of State law (see "Proposition 218" below). The City Council adopted the following rate structure by Resolution No. 2005-42 (the "2005 Rate Resolution") adopted on April 6, 2005. Prior to adoption of this resolution, the rates were last adjusted in 1996. Meter Size/ Class Description 3/4" Meter 1" Meter 1 1/2" Meter 2" Meter 3" Meter 4" Meter 6"&Up Fire Service 2" & Under Fire Service 3" Meter Fire Service 4" Meter Fire Service 6" & Up Table 5 Water Rate Structure Fiscal Years 2004-05 through 2008-09 1996 Effective Effective Effective Effective Effective Rates 5/2005 11/2005 11/2006 11/2007 11/2008 $13.80 $ 14.08 $ 14.36 $ 14.64 $ 14.94 $ 15.24 14.40 18.38 21.58 22.97 24.41 25.90 15.00 27.76 37.85 41.85 45.99 50.28 15.50 39.33 58.10 65.38 72.93 80.75 16.70 66.52 105.72 120.70 136.25 152.36 17.80 104.92 173.40 199.43 226.44 254.45 19.00 200.16 341.13 394.53 449.92 507.37 15.50 7.87 11.62 13.08 14.59 16.15 16.70 13.30 21.14 24.14 27.25 30.47 17.30 20.98 34.68 39.89 45.29 50.89 20.70 40.03 68.23 78.91 89.98 101.47 Consumption Rate (S/unit; 1 unit is 748 gallons) Source: City of Ukiah. $ 0.58 $ 0.73 $ 0.91 $ 1.07 $ 1.20 $ 1.29 A-5 Comparative Water Charges. For the City and surrounding communities, the table below is a summary comparison of the typical monthly bill for a single-family residence with a 3/4" meter and monthly consumption of 1,600 cubic feet of water use per month (the City's average monthly usage for a single-family residence). Table 6 Water Rates For Consumption (Monthly Charges) As of December 2004 City/Community Served City of Ukiah Rogina Water Company Millview County Water District Willow County Water District City of Cotati Bodega Bay Public Utility District Redwood Valley County Water District City of Willits Monthly Fixed Consumption Monthly Bill Service Charge Charge (16 hcf use) $14.08 $11.68 $25.76 13.46 14.82 28.28 5.25 23.64 28.89 15.46 18.15 33.61 10.97 24.36 35.33 11.00 40.00 51.00 22.40 33.60 56.00 32.70 36.80 69.50 Source: City of Ukiah. Connection Fees Fee Structure. The City charges connection fees for new residential, commercial, industrial and agricultural construction and development. The table below sets forth the Water System's connection fee structure, which was adopted by Ordinance No. 810 in 1983. The City anticipates reviewing and revising its water connection fees by December 2005. Table 7 Connection Fees Meter Size Current Fee Demand Capacity Up to 3/4" $ 660 1.00 1" 1,100 1.67 I 1/2" 2,200 3.33 2" 3,520 5.33 3" 7,040 10.67 4" 11,000 16.67 4" + Determined by City Council Existing Debt Of the Water System Department of Water Resources Loans. The City has obtained a loan from the California Department of Water Resources (the "State Loan") to finance an upgrade of the Water Treatment Plant and to finance an upgrade of the wastewater treatment plant to comply with safe drinking water standards. The final payment is due in fiscal year 2021-22. At June 30, 2005, the balance of the loan was $2,299,053. Principal and interest are payable semi-annually on April I and October 1; the A-6 interest rate is 3.6024%. Loan payments are payable from Net Revenues of the City's Water System on a parity with the Installment Payments. Environmental Issues Relating to the Water System Although there are a number of environmental issues associated with the Russian River, including the presence of endangered species, the City is not aware of any environmental or regulatory issues that would adversely impact its ability to deliver water as described in this Appendix. Projected Maintenance and Capital Improvements In May 2001, the California Department of Health Services ("DHS") conducted an inspection/audit of the Water System. The DHS audit concluded that the City's water treatment and distribution storage facilities must be expanded to reliably meet current and anticipated demand and to ensure that fire protection is available at all times. DHS has made these improvements a condition of renewal for the Water System's operating permit (see "Sources of Water Supply" above). The City responded to the findings of the DHS inspection/audit by retaining SPH Associates Consulting Engineers to complete a Predesign Report for the Water Treatment Plant and storage facilities improvements identified in the DHS audit. The SPH report, dated February 2004, presents the findings and recommendations of the DHS audit and outlines the capital projects needed to bring the Water System into compliance with DHS requirements. The required improvements include constructing various water storage and distribution facilities installing the related pumping, distribution and support systems, and retrofitting the Water Treatment Plant, particularly its reservoir. The improvements are intended to supply storage for fire, drought and other non-standard situations in which the existing facilities and capacity may prove inadequate. Estimated construction cost in 2004 dollars for the proposed system improvements is $15 million. The construction of the required improvements is divided in two phases. The storage capacity expansion (Phase 1) of the project consists of constructing additional water tanks to increase the City's storage capacity by 3.3 million gallons, installing two additional treatment modules in the Water Treatment Plant, each module capable of treating 3 million gallons per day ("MGD") and installing additional pumps and associated equipment. Water Treatment Plant Retrofit (Phase 2) of the project involves fixing cracks in the concrete foundation of the reservoir. Phase 2 construction is planned for fiscal year 2005/06. The City expects to use proceeds of the Bonds deposited into its Project Fund, pursuant to Resolution No. 2005-05 adopted by the City Council on July 2, 2004, to reimburse the City for previous expenditures on Water System capital improvements. In addition to the future improvements described above, the City expects to pay for capital improvements to the Water System over the next 10 fiscal years on a pay-as-you-go basis. Employee Retirement and Health Care One of the expenses of the Water System is its share of the City's pension and health care benefit plans. For fiscal year 2004-05, the City allocated approximately 5.8% of these costs to the Water System. A-7 Employee Retirement Systems. The City's two defined benefit pension plans, Miscellaneous Plan of the City of Ukiah and Safety Plan of the City of Ukiah (the "Plans"), provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Plans are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employees within the State of California. State statutes within the Public Employees' Retirement Law establish a menu of benefit provisions as well as other requirements. Funding Policy. Active plan members in the Plans are required to contribute 7.0% (10% for safety employees) of their annual covered salary. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The required employer contribution rate for fiscal 2003-04 was 8.871%. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. Annual Pension Cost. For fiscal year 2003-04 the City's annual pension cost was $432,580 for miscellaneous employees and $0 for safety employees. In addition, the City paid $678,926 representing substantially all of the employees' required contributions under the terms of the City's various employee bargaining unit agreements. The required contribution for fiscal year 2003-04 was determined as part of the June 30, 2001, actuarial valuation using the entry age normal actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions include (a) 8.25% investment rate of return (net of administrative expenses); (b) projected salary increases that vary by duration of service ranging from 3.75% to 14.20% for miscellaneous members (4.27% to 11.59% for safety members), and (c) 3.75% cost-of-living adjustment. Both (a) and (b) include an inflation component of 3.5%. The actuarial value of the Plan's assets was determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of the investment gains and/or losses. Three-Year Trend Information Year Ending Annual Pension Cost Net Pension Net Pension June 30,_ Miscellaneous Safety Obligation Obligation 2002 $ 0 $0 100% $0 2003 0 0 100 0 2004 432,580 0 100 0 As of June 30, 2003 (based on a CalPERS statement dated October 2004), the unfunded accrued actuarial liability (UAAL) of the City's Miscellaneous Plan was $5,940,255 and the unfunded actuarial liability of the City's Safety Plan was $372,690. The Plans' unfunded actuarial liabilities are being amortized as a level percentage of projected payrolls on a closed basis. The remaining amortization period was 31 years (15 years for safety) as of June 30, 2004. Deferred Compensation. The City offers its employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to all City employees, permit employees to defer a portion of their salary until future years. Participation in the plans is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The City has adopted the provisions of GASB Statement 32 and, therefore, the assets and liabilities of these plans are excluded from its financial statements. A-8 Health Benefits. The City pays a fixed contribution to the cost of employees' medical benefits. The City does not pay any health benefits when employees separate from service with the City. Proposition 218 On November 5, 1996, the voters of the State approved Proposition 218, the so-called "Right to Vote on Taxes Act." Proposition 218 adds Articles XIIIC and XIIID to the State Constitution, which affect the ability of local governments to levy and collect both existing and future taxes, assessments, fees and charges. Proposition 218, which generally became effective on November 6, 1996, changes, among other things, the procedure for the imposition of any new or increased "fee" or "charge," which is defined as "any levy other than an ad valorem tax, a special tax or an assessment, imposed by a [local government] upon a parcel or upon a person as an incident of property ownership, including user fees or charges for a property related service" (and referred to herein as a "property-related fee or charge"). Specifically, Article XIIID requires that, before any property-related fee or charge may be imposed or increased, written notice must be given to the record owner of each parcel of land affected by such fee or charge. The City must then hold a hearing upon the proposed imposition or increase, and, if written protests against the proposal are presented by a majority of the owners of the identified parcels, the City may not impose or increase the property-related fee or charge. Further, revenues derived from a property-related fee or charge may not exceed the funds required to provide the "property-related service" and may not be used for any purpose other than that for which the fee or charge was imposed. Further, the amount of a property- related fee or charge may not exceed the proportional cost of the service attributable to the parcel and no property-related fee or charge may be imposed for a service unless that service is actually used by, or is immediately available to, the owner of the property in question. Since Proposition 218 was enacted in 1996, appellate court cases and an Attorney General opinion have indicated that fees and charges levied for water and wastewater services are not property-related fees and charges and thus are not subject to the above-described requirements regarding notice, hearing and protests in connection with any increase in the fees and charges being imposed. However, in Richmond v. Shasta Community Services District (9 Cal. Rptr. 3rd 121), the California Supreme Court addressed the applicability of the notice, hearing and protest provisions of Article XIIID to certain water service related charges. In Richmond, the Court indicated in dicta that a fee for ongoing water service through an existing connection could, under certain circumstances, constitute a property-related fee and charge, with the result that a local government imposing such a fee and charge must comply with the notice, hearing and protest requirements of Article XIIID. Most recently, in Howard Jarvis Taxpayers Association v. City of Fresno (March 23, 2005), the Court of Appeal Fifth District concluded that water, sewer and trash fees are property-related fees subject to Proposition 218 and must comply with Article XIIID. The City most recently adopted rates on April 6, 2005, and did so in compliance with Proposition 218. The provisions of Proposition 218 have not been fully interpreted by the courts. The City is unable to predict how Article XlIIC and Article XlIID will be interpreted by the courts and what, if any, further implementing legislation will be enacted, and there can be no assurance that Article A-9 XlIIC and Article XlIID will not limit the ability of the City to impose, levy, charge and collect increased fees and charges for the Water System. Litigation At the time of issuance of the Bonds, the City will certify, that to the best knowledge of the City, there is no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the City to restrain or enjoin the authorization, execution or delivery of the Installment Sale Agreement, or the pledge of the Net Revenues or the collection of the Installment Payments, or in any way contesting or affecting validity of the Installment Sale Agreement, or in any way contesting or affecting the transactions described in this Official Statement. Historical Revenues and Expenses The following table shows Water System revenues and expenses for fiscal years 2001- 02 through 2004-05. The information for fiscal years 2001-02 through 2003-04 is based on the City's audited financial statements; the City's audited financial statements for fiscal year 2003-04 are attached at the end of this Appendix. The information for fiscal year 2004-05 is based on unaudited financial statements of the City. Because, prior to April 2005, the City had not increased rates since 1996, revenue has remained relatively unchanged. With respect to expenses, the consumer price index for the San Francisco Bay Area increased by an annual average of 3.44% between 1997 and 2003. Table 8 Water Fund - Summary of Revenues and Expenses 2001-02 through 2004-05 (in thousands) 2001-02 (1) 2002-03 ¢) 2003-04 (1) 2004-05 (2) Revenue Water Sales $1,877 $1,839 $1,845 $1,881 Connection Fees 37 17 48 30 Interest Earnings 217 187 106 114 Other Revenue (13) 74 24 20 Total Revenue $2,119 $2,117 $2,024 $2,045 Expenses Salaries and Benefits $ 432 $ 570 $ 637 $669 Operations and Maintenance 726 606 620 639 Capital Replacements 3 95 71 0 Utilities 416 442 412 425 Capital Improvement Expenses (31 20 640 112 8,163 Debt Payment 217 217 217 217 Total Expenses $1,815 $2,573 $2,069 $10,113 (1) Based on the City's audited financial statements. (2) Unaudited, estimated actuals as of July 2005. (3) Capital improvement expenses for fiscal year 2004-05 were paid from available moneys and will be repaid to the City from proceeds of the Bonds. Source: City of Ukiah. A-10 Projected Operating Results and Debt Service Coverage The table below presents a summary of projected Water System revenues, expenses and debt coverage ratios, based on City estimates contained in the City's 2005-06 Budget. Table 9 Pro Forma Cash Flow Fiscal Year 2006-06 through 2009-10 ($ ooos) Revenues Water Sales (1) Connection Fees (2) Interest Earnings Other Revenue Total Revenue 2005/06 2006/07 2007/08 2008/09 2009/10 $2,625 $3,033 $3,377 $3,666 $3,716 18 19 19 20 21 39 103 102 102 105 2._~_4 2~4 2~4 24 2~4 2,706 3,179 3,522 3,812 3,866 Operating Expenses Salaries and Benefits Operations and Maintenance Utilities Total Operating Expenses 802 842 884 928 974 549 565 582 599 617 458 472 486 501 516 1,809 1,879 1,952 2,028 2,107 Net Revenues 897 1,300 1,570 1,784 1,759 Debt Service State Loan Debt Service Projected Debt Service on the Bonds Total Debt Service 182 182 182 182 182 300 620 885 885 885 482 802 1,067 1,067 1,067 Debt Service Coverage Ratio (3) 1.8 1.6 1.4 1.6 1.6 Income Available for Capital & Other Purposes 415 498 503 717 692 (1) Based on approved water rates and historical water use. (2) Based on 12 new connections per year. The City has averaged approximately 50 new connections per year over the past 10 years. (3) Debt service coverage equals Net Revenues divided by total debt service. Source: City of Ukiah. A-11 City Investment Practices The City invests its funds, including funds of the Water System, in accordance with the City's Investment Policy, most recently amended in September 2002. Management responsibility for the City's investments is delegated, for a one-year period, subject to annual review and delegation, to the City Treasurer. The City Treasurer may further delegate day-to-day management to a professional external investment advisor. The City Treasurer reports to the Investment Oversight Committee and the City Council on a monthly basis. The Overnight Committee meets at least every six months. According to the most recent investment report provided to the City Council, for the year ended June 30, 2005, the City has invested funds as set forth in the table below. As of June 30, 2005, the market value of the investment portfolio was approximately 99.2% of the investment portfolio's book value. The net annual yield of the portfolio as of June 30, 2005 was 2.44%. CITY OF UKIAH Investment Portfolio Summary (as of June 30, 2005) Type of Investment ABS/CMO Corporate Notes Federal Agency Bonds/Notes Federal Agency Mortgage Backed Securities U.S. Treasury Bond/Note Book Value Market Value Percent of Total $ 4,150.12 $ 4,076.66 0.007% 6,766,742.50 6,767,366.00 12.212 31,434,569.14 31,125,476.24 56.168 923,448.25 892,648.98 1.611 10,792,533.90 10,710,141.34 19.327 LAIF 5,915,246.97 5,915,246.97 10.674 TOTAL $55,836,690.88 $55,414,956.19 100.000% Source: City of Ukiah. Background Demographic Information Population. Population estimates of the past five years for the City, the County and the State are shown in the following table. CITY OF UKIAH, COUNTY OF MENDOCINO AND STATE OF CALIFORNIA Population Estimates Calendar Years 2001 through 2005 Year City of Ukiah Mendocino County State of California 2001 15,595 87,014 34,441,561 2002 15,700 87,865 35,088,671 2003 15,943 88,650 35,691,442 2004 15,943 89,369 36,271,091 2005 15,959 89,974 36,810,358 Source: California State Department of Finance. A-12 Employment. According to the California Employment Development'Department, for calendar year 2004, the unemployment rate was 6.5% in the County. The table below shows the County's labor patterns during 2000 through 2004. COUNTY OF MENDOCINO Wage and Salary Employment Calendar Years 2000 through 2004 Civilian Labor Force Employment Unemployment Unemployment Rate 2000 2001 2002 2003. 2004 43,720 44,800 46,060 45,450 44,190 41,310 42,150 43,000 42,340 41,330 2,410 2,650 3,060 3,110 2,860 5.5% 5.9% 6.6% 6.9% 6.5% Agricultural Total Non-Agricultural Construction Natural Resources & Mining Manufacturing Trade, Transportation & Public Utilities 5,870 Wholesale Trade 610 Retail Trade 4,560 Finance & Insurance 560 Real Estate, Rental & Leasing 390 Services 790 Government 6,370 2,490 2,470 2,340 2,170 2,410 30,250 30,980 31,530 30,890 29,620 1,490 1,640 1,660 1,610 1,480 650 480 360 350 340 4,790 4,080 3,750 3,380 3,140 6,080 6,050 5,940 5,920 640 640 600 610 4,730 4,670 4,630 4,630 590 590 630 620 560 580 570 580 850 840 820 750 6,750 7,750 7,840 7,380 Source: California Employment Development Department. A-13 Largest Employers. The following tables list some of the largest non-manufacturing and manufacturing/distribution employers within the County area. COUNTY OF MENDOClNO Largest Employers Employer Name Coyote Valley Shodakai Casino Fetzer Tasting Room & Visitor Fetzer Vineyards Fetzer Vineyards Forest Ranger Unit Hdqrs Frank R Howard Memorial Hosp Hardwood Harwood Products Inc Home Depot Hopland Sho Ka Wah Casino Laborers Hod Carriers Local Little River Inn Mendocino Coast District Hosp Mendocino County Coroner Ofc Mendocino County Food Stamps Mendocino County Social Svc Mental Health Svc-Mendocino Metalfx Raley's Supermarket Retech Safeway Trinity School Ukiah City Hall Ukiah Valley Medical Ctr Wal-Mart Location Redwood Valley Hopland Hopland Hopland Willits Willits Branscomb Branscomb Ukiah Hopland Ukiah Littleriver Fort Bragg Ukiah Ukiah Ukiah Ukiah Willits Ukiah Ukiah Ukiah Ukiah Ukiah Ukiah Ukiah Industry Casinos Wineries Bed & Breakfast Accommodations Bed & Breakfast Accommodations Government Offices-State Hospitals Hardwoods Lumber-Wholesale Home Improvements Casinos Associations Resorts Hospitals Government Offices-County County Government-Social/Human Resources County Government-Social/Human Resources Mental Health Services Sheet Metal Fabricators Grocers-Retail Importers Grocers-Retail Schools City Government-Executive Offices Hospitals Department Stores Source: State of California Employment Development Department. Effective Buying Income. "Effective Buying Income" is defined as personal income less personal tax and nontax payments, a number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as "disposable personal income." The following table summarizes the total effective buying income for the County of Mendocino, the State and the United States for the period 1999 through 2003. Annual figures for 2004 are not yet available. A-14 EFFECTIVE BUYING INCOME For Calendar Years 1999 Through 2003 (As of January 1) Year Area Total Effective Buying Income (000s omitted) Median Household Effective Buying Income 1999 County of Mendocino $ 1,200,656 $28,315 California 590,376,663 39,492 United States 4,877,786,658 37,233 2000 County of Mendocino $ 1,283,336 $30,998 California 652,190,282 44,464 United States 5,230,824,904 39,129 2001 County of Mendocino $ 1,322,332 $31,848 California 650,521,407 43,532 United States 5,303,481,498 38,365 2002 County of Mendocino $ 1,434,410 $33,590 California 647,879,427 42,484 United States 5,340,682,818 38,035 2003 Countyof Mendocino $ 1,446,248 $34,072 Ca liforn ia 674,721,020 42,924 United States 5,466,880,008 38,201 Source: Sales and Marketing Management, The Survey of Buying Power, Demographics USA. Assessed Valuations. The following table shows the assessed valuations for the City from 1999-00 through 2004-05. Year Local Secured Utili~ Unsecured Total 1999-00 $651,560,762 $13,469 $49,446,261 $701,020,492 2000-01 684,894,512 0 51,454,905 736,349,417 2001-02 716,876,355 0 53,056,515 769,932,870 2002-03 770,075,813 0 50,289,853 820,365,666 2003-04 831,902,128 0 53,614,565 885,516,693 2004-05 880,920,012 0 53,186,288 934,106,300 2005-06 953,993,844 0 60,179,094 1,014,172,938 Source: California Municipal Statistics, Inc. A-15 [INSERT CITY OF UKIAH AUDITED FINANCIAL STATEMENTS HERE] A-16 APPENDIX B INFORMATION CONCERNING THE THERMALITO IRRIGATION DISTRICT The Thermalito Irrigation District supply sewer The Thermalito Irrigation District (the "District") was formed as an agricultural water agency in the early 1920s and today is primarily an urban water supplier. It also provides services. The current members of the District's Board of Directors (the "Board") are listed below: Member Bradley Taggart Gary Allen Edgar Thompson, Vice President Stanley Huston Ernie Reynolds, President Ending date of current term November 2008 November 2008 November 2006 November 2008 November 2006 The District has a service area of 40 square miles, serving commercial, industrial and residential land uses, including approximately 9,500 residents of the City of Oroville and Butte County. The majority of units are single-family dwellings. See "Background Demographic Information" below. During the past several years, the majority of new growth within the District has been residential and the District expects this trend to continue. The District issues "will serve" letters as part of the entitlement process for new residential development; the letters expire after 1 year so the District may issue multiple "will serve" letters for the same proposed development. Since July 1, 2004, the District issued "will serve" letters for approximately 1,500new dwelling units, including the following larger developments: Developer/Development Number of Planned Units The Water System The District's water system consists of the following: · Water Treatment Plant. The Water Treatment Plant currently has a capacity of 6.0 MGD. The District will use proceeds of the Bonds to finance an expansion of the Water Treatment Plant to 10.0 MGD. · Closed storage reservoirs, including a 2.5 million gallon water storage tank and Concow Reservoir (storage capacity of 8,600 acre feet of water). · Delivery system including approximately 50 miles of steel, ductile, cast iron, PVC and asbestos-cement pipes. The District performs regular maintenance and replacement of pipe on an as needed basis; most new pipe installation is of the PVC type. Asbestos-cement pipe is being phased out. B-1 Sources of Water Supply Primary Source. The District's primary water source is the surface impoundment at Concow Dam (known as Wilenor Reservoir), which includes a total consumptive entitlement of 7,225 acre feet annually, which the District believes will be sufficient to meet demand and growth for at least the next two decades. Secondary Source. The District also periodically pumps groundwater from five strategically-placed wells throughout the distribution system. The wells are typically off-line most of the year and are generally used only during periods of maintenance at the Water Treatment Plant or during periods of high demand. Total combined production of the wells equal 3.0 mgd. Historical Water Production The table below sets forth a history of water pumped and processed at the Water Treatment Plant for calendar years 2002 through 2004, measured in millions of gallons. Table 1 WATER SUPPLY BY SOURCE AND DELIVERIES (in Acre Feet) 1999-2004 Year Wells Surface Total 2002 391.93 2,563.39 2,955.32 2003 181.00 2,409.22 2,590.22 2004 20.64 2,587.58 2,608.22 Source: Thermalito Irrigation District. Customer Base Active Water Accounts. The Water System has over 2,752 active water accounts (as of December 31,2004). The District's current rate structure is based on meter size and does not differentiate between commercial, industrial and residential users. The Water System has two geographically-based zones. Zone A encompasses approximately 95% of the Water System's customers. Zone B is in the southern part of the District and encompasses approximately 5% of the Water System's customers. The table below sets forth a summary of active water accounts by customer class for calendar years 2002 through 2004. B-2 Table 2 Active Water Accounts Calendar Years 2002-2004 Customer Class 12/31/02 12/31/03 12/31/04 Single-family residential 2,319 2,338 2,463 Multi-family residential 75 85 221 Commercial/institutional 119 153 45 Industrial 6 6 3 Landscape irrigation 12 12 19 Agricultural Irrigation 3 3 1 Total 2,534 2,597 2,752 Source: Thermalito Irrigation District. The following table shows metered water deliveries by customer class for calendar years 2002 through 2004. Table 3 Metered Water Deliveries Calendar Years 2002-2004 (in HCF) Customer Class 12/31/02 12/31/03 12/31/04 Single-family residential 1,070,713 947,394 1,019,633 Multi-family residential 34,929 34,422 37,047 Commercial/institutional 54,957 62,107 66,842 Industrial 2,806 255 2,718 Landscape irrigation 4,505 496 532 Agricultural Irrigation 1,404 1,262 1,360 Total 1,169,314 1,045,936 1,128,132 Source: Thermalito Irrigation District. B-3 Largest Users. The following table shows the top ten water users in the District based on total gallons consumed and revenue to the Water System during Fiscal Year 2004-05. Table 4 Largest Water Customers 2004-05 Customer Description Annual Charge* [Name of Apartment Building to come] Apartment Building $23,490 Chateau Mobile Park Mobile Home Park 21,629 Thermalito School District School District 16,739 Privately Owned Mobile Home Park 9,870 Sundown Mobile Mobile Home Park 7,655 Ramblin Rose Mobile Home Park 2,884 Home Depot Commercial/Retail 2,262 Notty Estates Mobile Home Park 2,193 Privately Owned Mobile Home Park 1,918 Privately Owned Mobile Home Park 1,774 Total * Estimated from billing records Source: Thermalito Irrigation District. Water Rates and Charges The Board has the independent authority to establishes rates and fees for use of the Water System, subject to the provisions of State law (see "Proposition 218" below). Basic Water Rate. The Board adopted the following rate structure, effective July 1, 2005, by Resolution No. 05-03 adopted on May 17, 2005 (the "2005 Rate Resolution"). The District previously raised adjusted rates effective May 1,2000. The District currently plans to undertake a rate study and consider a multi-year rate increase to be effective July 1,2006. B-4 Meter Size Table 5 Basic Water Rate and Minimum Monthly Rates Effective July 1, 2005 Minimum Monthly Rate 5/1/00 - 6/30/05 (1) Minimum Monthly Rate Effective 7/1/05 3/4" Meter 1" Meter 1 1/2" Meter 2" Meter 3" Meter 4" Meter 6" & Up $16.00 18.20 23.20 28.80 65.00 85.00 150.00 Basic rate per HCF (2) Rate per multiple units w/common meter 0.46 14.00 (1) Included a water allowance (e.g., 500 CF for 3/4" meters). (2) HCF = Hundred Cubic Feet Source: Thermalito Irrigation District. $17.60 2O.O2 25.52 31.68 71.50 93.50 165.00 0.46 14.00 B-5 Comparative Water Charges. For the District and surrounding communities, the table below is a summary comparison of the typical monthly bill for a single-family residence with a 3/4" meter and monthly consumption of 15 hundred cubic feet of water use per month (the District's average monthly usage for a single-family residence). Table 6 Monthly Single Family Residential Water Charges Assumes 3/4" Metter, 15 hcf Monthly Use As of July 1, 2005 Fixed Quantity Total Charge Charge Char[ie California Water Services Company - Metered* South Feather Water and Power** Thermalito Irrigation District California Water Services Company - Flat Rate* City of Grass Valley Paradise Irrigation District Nevada Irrigation District City of Gridley $12.51 $8.33 $20.84 15.64 7.65 23.29 17.60 6.90 24.50 26.54 - 26.54 12.05 15.88 27.93 22.50 8.10 30.60 18.10 14.20 32.30 [to come] * Based on rates for the City of Chico & Hamilton City area; roughly half of customers are fiat rate. ** Previously Oroville-Wyandotte Irrigation District Source: Thermalito Irrigation District. Meter Installation Fee. The District charges fees to new customers connecting to the Water System. The fees recover the District's costs for Water System infrastructure and supply and for meter installation. The table below sets forth the Water System's new meter installation rates, effective May 18, 2005, which was adopted by Resolution No.__ on May 17, 2005. Table 7 New Meter Installation Rates Effective May 18, 2005 Meter Size Zone A Zone B 3/4" $4,655 $5,055 1" 6,105 6,505 1 1/2" 8,820 9,220 2" 17,545 17,945 3" 29,084 29,484 4" 43,084 43,484 6" 71,084 71,484 The new meter installation fees incorporate a water storage capacity fee of $934.00 per new equivalent dwelling unit beginning May 18, 2005 pursuant to Resolution No. 05-05 adopted by the Board on May 17, 2005. The District adopted the water storage capacity fee to finance the estimated cost ($1,375,000) of a new 1 million gallon storage tank, which would increase the District's capacity to serve the equivalent of 2,000 new single-family residential units. B-6 Billing of Customers of the Water System The District bills customers on a monthly basis. The District reads meters at the end of each month for the prior month's usage. Billing goes out on the first of each month and are due by the end of the month. The District imposes a $10 late fee when a customer is 45 days late. The District posts a 2-day lock-off notice on a customer's door when the customer is two months late. If the District locks-off a customer's meter and the bill remains unpaid, the District notifies the customer that the meter will be pulled and imposes a tax lien. Once the District has pulled a customer's meter, the customer must pay $700 to restore service. Existing Debt of the Water System Following issuance of the Bonds, the District will have no outstanding debt payable from Net Revenues of the Water System. Currently, the District has two obligations payable from revenues of the Water System. The District executed and delivered an Installment Purchase Contract dated May 1, 1994 with the California Local Government Finance Authority; the Installment Purchase Contract obligated the District to pay installment payments in the initial principal amount of $410,000. The District will use proceeds of the Bonds to defease the District's obligation to make installment payments on the date of issuance of the Bonds, to pay installment payments through February 1, 2005, and to prepay any remaining installment payments on February 1,2005. The District is party to an equipment lease with La Salle Bank, which the District will prepay on or before the date of issuance of the Bonds with other available moneys. Environmental Issues Relating to the Water System The District is not aware of any environmental or regulatory issues that would adversely impact its ability to deliver water as described in this Appendix. Projected Maintenance and Capital Improvements [to come] The District is using proceeds of the Bonds to finance expansion of the Water Treatment Plant ($ ) and to finance certain other improvements to the Water System ($__). The District also expects to undertake the following future capital improvements: The District expects to purchase a new 1 million gallon storage tank for the purpose of increasing the District's capacity to serve the equivalent of 2,000 new single-family residential units. The District has already collected and set aside funds for this purpose and has imposed a water storage capacity fee to help pay for this project (see "Water Rates and Charges" above). The District does not currently expect to pledge Net Revenues as part of this financing, but can provide no assurance to that effect. The District expects to purchase and install an approximately $3 million solar electricity generation system in fiscal year 2006-07. Because acquisition and installation of the system will be part of a Pacific Gas & Electric program, the B-7 District expects to be responsible for paying approximately half of the system's cost, and anticipates issuing long-term debt to finance its share. The District expects to purchase/install the system only if it results in net savings to the District as a result of decreased electric costs. · The District will undertake ongoing repairs and replacements, but will pay for them from revenues of the Water System on a pay-as-you-go basis. Employee Retirement and Health Care One of the expenses of the Water System is its share of the District's pension and health care benefit plans. For fiscal year 2003-04, the District allocated approximately __% of these costs to the Water System. Employee Retirement Systems. The District's defined benefit pension plan, which began May 1, 2004, is part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employees within the State of California. State statutes within the Public Employees' Retirement Law establish a menu of benefit provisions as well as other requirements. The District is required to make a monthly contribution to CalPERS to include actuarial valuations of prior and future years of service of each employee. The employer rate at June 30, 2004 was 27.316% of gross earnings per period. Contributions to CalPERS during the year ended June 30, 2004 amounted to $20,346.33. Prior to contracting with PERS, the District maintained a Public Employees Deferred Compensation Plan for substantially all of its employees with Aetna (lng), Hartford Life and Manufacturers Life Insurance of North America. Contributions were made based on variable percent of gross wages of eligible employees. Contributions to the plans for the year ended June 30, 2004 were $46,295. The total assets of the plans at June 30, 2004 are $448,313 plus one year of variable rate interest. [update] In addition, the District maintains a memorandum of understanding with its employees for unused vacation and sick leave. The two major items contained in the Memorandum of Understanding are: (1) that upon termination of employment each employee shall be paid an amount in salary equal to his/her unused accumulated vacation pay, and (2) that upon retirement, death, or disability, each employee shall be paid an amount equal to 50% of his/her accumulated unused sick pay. The amount of this accumulation at June 30, 2005 was $ [1. Are there any unfunded liabilities? 2. Discuss "large employee wage increases and additional cost of CalPERS retirement plan identified as "negative aspects to the District's profitability" in the 2003-04 audit.] Health Benefits. The District provides group health insurance coverage through the CalPERS Health Program HMO Basic Plan, and currently pays 100% of the monthly premium for the District's employees and their dependents. For those employees retiring prior to age 65 with at least 30 years' service with the District, or at age 62 with at least 15 years' service, the District pays the monthly medical insurance premium not to exceed the amount in force at the time of retirement, for a period not to exceed 5 years or until the employee reaches the age of 65, whichever comes first. B-8 Proposition 218 General. On November 5, 1996, the voters of the State approved Proposition 218, the so-called "Right to Vote on Taxes Act." Proposition 218 adds Articles XlIIC and XlIID to the State Constitution, which affect the ability of local governments to levy and collect both existing and future taxes, assessments, fees and charges. Proposition 218, which generally became effective on November 6, 1996, changes, among other things, the procedure for the imposition of any new or increased "fee" or "charge," which is defined as "any levy other than an ad valorem tax, a special tax or an assessment, imposed by a [local government] upon a parcel or upon a person as an incident of property ownership, including user fees or charges for a property related service" (and referred to herein as a "property-related fee or charge"). Specifically, Article XIIID requires that, before any property-related fee or charge may be imposed or increased, written notice must be given to the record owner of each parcel of land affected by such fee or charge. The District must then hold a hearing upon the proposed imposition or increase, and, if written protests against the proposal are presented by a majority of the owners of the identified parcels, the District may not impose or increase the property- related fee or charge. Further, revenues derived from a property-related fee or charge may not exceed the funds required to provide the "property-related service" and may not be used for any purpose other than that for which the fee or charge was imposed. Further, the amount of a property- related fee or charge may not exceed the proportional cost of the service attributable to the parcel and no property-related fee or charge may be imposed for a service unless that service is actually used by, or is immediately available to, the owner of the property in question. Interpretation of Proposition 218. Since Proposition 218 was enacted in 1996, appellate court cases and an Attorney General opinion have indicated that fees and charges levied for water and wastewater services are not property-related fees and charges and thus are not subject to the above described requirements regarding notice, hearing and protests in connection with any increase in the fees and charges being imposed. However, in Richmond v. Shasta Community Services District (9 Cal. Rptr. 3~d 121), the California Supreme Court addressed the applicability of the notice, hearing and protest provisions of Article XlIID to certain water service-related charges. In Richmond, the Court indicated in dicta that a fee for ongoing water service through an existing connection could, under certain circumstances, constitute a property-related fee and charge, with the result that a local government imposing such a fee and charge must comply with the notice, hearing and protest requirements of Article XlIID. Most recently, in Howard Jarvis Taxpayers Association v. City of Fresno (March 23, 2005), the Court of Appeal, Fifth District concluded that water, sewer and trash fees are property-related fees subject to Proposition 218 and must comply with Article XIIID. The California Supreme Court denied the City of Fresno's petition for review of the Court of Appeal's decision on June 15, 2005. Proposition 218 and the District's Water System Rates. In May 2005, the District adopted (i) increased water rates, (ii) increased water meter installation fees and (iii) a new water storage capacity fee. The District did not consider its water rates to be property-related fees and, accordingly, did not comply with Article XlIID in May 2005. As described above, the District plans to undertake a rate study and to consider a new multi-year rate increase to be effective July 1, 2006, and will comply with Proposition 218 in connection with such rate increase. B-9 Conclusion. The provisions of Proposition 218 have not been fully interpreted by the courts. The District is unable to predict how Article XIIIC and Article XIIID will be interpreted by the courts and what, if any, further implementing legislation will be enacted, and there can be no assurance that Article XIIIC and Article XIIID will not limit the ability of the District to impose, levy, charge and collect increased fees and charges for the Water System. Litigation At the time of issuance of the Bonds, the District will certify, that to the best knowledge of the District, there is no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the District to restrain or enjoin the authorization, execution or delivery of the Installment Sale Agreement, or the pledge of the Net Revenues or the collection of the Installment Payments, or in any way contesting or affecting validity of the Installment Sale Agreement, or in any way contesting or affecting the transactions described in this Official Statement. Historical Revenues and Expenses The following table shows Water System revenues and expenses for fiscal years 2001- 02 and 2004-05. The information for fiscal years 2001-02 through 2003-04 is based on the District's audited financial statements; the District's audited financial statements for fiscal year 2003-04 are attached at the end of this Appendix. The information for fiscal year 2004-05 is based on unaudited financial statements of the District. B-10 Table 8 Water Enterprise Financial History 2001-02 through 2004-05 2001/02 2002/03 2003/04 Estimated 2004/05 REVENUES Water Sales Water Services & Connection Fees Other Operating Income Interest Income Total Revenues $1,034,959 $1,029,468 $1,053,436 $1,050,039 125,253 164,275 324,280 349,906 54,655 3,815 106,002 133,097 76,952 51,354 40,420 60,668 1,291,819 1,248,912 1,524,138 1,593,710 OPERATING EXPENSES* Administration & General Water Treatment/Fuel & Power Transmission & Distribution Meter Reading/Wilenor Water Supply/Other Total Operating Expenses Net Revenues 403,117 383,480 561,225 766,309 243,151 223,684 267,110 253,446 166,089 184,060 202,779 222,878 37,680 37,312 60,841 65,812 850,037 828,536 1,091,955 1,308,445 441,782 420,376 432,183 285,265 Debt Service California Local Gov't Financing Authority Bonds LaSalle National Bank Lease Agreement Total Debt Service 33,000 32,680 37,350 32,007 54,623 54,623 54,623 54,623 87,623 87,303 91,973 86,630 Debt Service Coverage Funds Available for Capital & Other Purposes 5.04 4.82 4.70 3.29 354,159 333,073 340,210 198,636 * Excludes depreciation. Source: Based on audited financial statements and matudty schedules for outstanding debt. B-11 Projected Operating Results and Debt Service Charge The table below presents a summary of projected Water System revenues, expenses and debt coverage ratios, based on estimates contained in the District's 2005-06 Budget. For future years, the District made the assumptions set forth in the footnotes to the following table. Table 9 Water Enterprise Cash Flow Projections Fiscal Year 2005-06 through 2007-08 ($ ooos) Projected 2005/06 2006/07 2007/08 2008/09 2009/10 Total Revenues Water Sales Revenues Water Services Connection Fees (2) Interest (3) Other (4) Total Revenues 1,224,257 1,347,000 1,482,000 1,630,000 1,793,000 175,697 50,000 50,000 50,000 50,000 931,000 931,000 931,000 931,000 931,000 83,000 88,000 59,000 74,000 91,000 10,000 10,000 10,000 10,000 10,000 2,423,954 2,426,000 2,532,000 2,695,000 2,875,000 Operating Expenses(5) Administration & General Treatment Plant Transmission & Distribution Meter ReadingANillenor Supply/Other Subtotal Operating 808,939 833,000 858,000 884,000 911,000 279,309 288,000 297,000 306,000 315,000 247,467 255,000 263,000 271,000 279,000 66,750 70,000 72,000 74,000 76,000 1,402,465 1,446,000 1,490,000 1,535,000 1,581,000 Net Revenues 1,021,489 980,000 1,042,000 1,160,000 1,294,000 Debt Service 2005 Bonds 75,000 265,000 265,000 265,000 265,000 Debt Service Coverage (6) 13.62 3.70 3.93 4.38 4.88 Funds Available for Capital & Other Purposes 855,526 715,000 777,000 895,000 1,029,000 (1) Includes adopted rate increase effective July 1, 2005 and future projected rate increases of 7% per year for the next 4 years. The District anticipates adopting future rate increases based on an independent rate study that will be conducted in fiscal year 2005-06. (2) Based on adopted fees and 200 new 3/4-inch meter connections per year. The District has issued "will- serve" letters to developers for approximately 1,500 new residential dwelling units since July 1, 2004. (3) The annual interest rate earned on available moneys is projected at 3%. (4) Includes items such as frontage fees, mailine extension fees, among others. (5) Operating expenses for fiscal year 2005-06 are based on the 2005-06 adopted budget; subsequent fiscal years' expenses reflect a 3% annual increase. (6) Debt service coverage equals Net Revenues divided by Debt Service. Source: Thermalito Irrigation District. B-12 District Investment Practices The District invests its funds, including funds of the Water System, in accordance with the District's Investment Policy, most recently amended in ~ All of the District's invested funds are invested with the Local Agency Investment Fund, which is managed by the California State Treasurer. Background Demographic Information Population. Population estimates of the past five years for the City of Oroville (the "City"), Butte County (the "County") and the State of California (the "State") are shown in the following table. CITY OF OROVlLLE, BUTTE COUNTY AND STATE OF CALIFORNIA Population Estimates Calendar Years 2001 through 2005 Year City of Oroville Butte County State of California 2001 13,008 205,028 34,441,561 2002 13,064 207,492 35,088,671 2003 13,250 210,022 35,691,442 2004 13,313 212,237 36,271,091 2005 13,369 214,119 36,810,358 Source: California State Department of Finance. B-13 Employment. The table below shows the County's labor patterns during 2000 through 2004. BU'R'E COUNTY Wage and Salary Employment Calendar Years 2000 through 2004 Civilian Labor Force Employment Unemployment Unemployment Rate 2000 2001 2002 2003 2004 93,300 95,300 97,600 99,100 98,000 87,600 89,100 90,500 91,700 90,900 5,700 6,200 7,100 7,400 7,100 6.1% 6.5% 7.3% 7.4% 7.2% Agricultural Natural Resources, Mining, Construction Manufacturing Wholesale Trade Retail Trade Trans., Warehousing, Utilities Information Finance & Insurance Real Estate, Rental & Leasing Professional and Business Svs Educational & Health Svs Leisure & Hospitality Other Services Government Total all Industries 3,000 2,700 2,500 2,600 2,600 2,700 5 100 1 800 9 500 2 000 1 400 1 900 1 600 6 300 10 900 7 200 3 300 16,300 72,900 2,900 4 500 1 600 9 900 2 100 1 400 2 200 1 700 6.400 11.300 7 300 3 600 16,600 74,200 3,100 3 900 1 700 10 300 2 200 1 300 2 400 1 800 6 200 11 700 7 100 3 700 16,900 74,700 3,400 4,OOO 1,800 10,200 2,200 1,400 2 500 1 800 5 600 12 200 6 900 3 700 17 000 75 300 3,800 4,OO0 1 900 10 000 1 800 1 400 2 400 1 700 5 500 12 300 6 900 3700 16,100 74,200 Source: California Employment Development Department. B-14 Largest Employers. The following tables list some of the largest non-manufacturing and manufacturing/distribution employers within the County. BU'R'E COUNTY Largest Employers Employer Name Baldwin Contracting Co Inc Butte Community College Chico Creek Care & Rehab Chico High School Chp Plus Do-It Leisure Enloe Hospice Enloe Medical Ctr Enloe Medical Ctr Enloe Medical Ctr Patient Acct Enloe Rehabilitation Ctr Feather Falls Casino Feather River Hospital Feather River Hospital Clncl Gold Country Casino Good Life Lifetouch National Schl Studio Northern California Homes Oroville Hospital Sheriff-Personnel Office Signature Fruit Co Sun Gard Bi-Tech Inc Wal-Mart Wal-Mart Wittmeier Auto Ctr Location Chico Oroville Chico Chico Chico Chico Chico Chico Chico Chico Chico Oroville Paradise Paradise Oroville Paradise Chico Paradise Oroville Oroville Gridley Chico Chico Oroville Chico Industry Contractors-Engineering General Schools-Universities & Colleges Academic Hospitals Schools Home Health Service Rehabilitation Services Home Health Service Hospitals Clinics Hospitals Rehabilitation Services Casinos Hospitals Laboratories-Medical Casinos Newspapers (Publishers) Photographers-Portrait Real Estate Support Services Hospitals Sheriff Canning (Manufacturers) Publishers-Computer Software Department Stores Department Stores Automobile Dealers-New Cars Source: State of California Employment Development Department. Effective Buying Income. "Effective Buying Income" is defined as personal income less personal tax and nontax payments, a number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as "disposable personal income." The following table summarizes the total effective buying income for the County, the State and the United States for the period 1999 through 2003. Annual figures for 2004 are not yet available. B-15 EFFECTIVE BUYING INCOME For Calendar Years 1999 Through 2003 (As of January 1) Year Area Total Effective Buying Income (O00s omitted) Median Household Effective Buying Income 1999 Butte County $ 2,574,256 $24,024 California 590,376,663 39,492 United States 4,877,786,658 37,233 2OOO Butte County $ 2,954,489 $28,181 California 652,190,282 44,464 United States 5,230,824,904 39,129 2001 Butte County $ 3,033,324 $29,570 Californ ia 650,521,407 43,532 United States 5,303,481,498 38,365 2002 Butte County $ 3,131,104 $30,388 California 647,879,427 42,484 United States 5,340,682,818 38,035 2003 Butte County $ 3,193,035 $30,755 Ca lifo rn ia 674,721,020 42,924 United States 5,466,880,008 38,201 Source: Sales and Marketing Management, The Survey of Buying Power, Demographics USA. Assessed Valuations. The following table shows the assessed valuations for the [County/City] from 1999-00 through 2004-05. Year 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 Secured Utility Unsecured Total Source: California Municipal Statistics, Inc. B-16 [INSERT THERMALITO IRRIGATION DISTRICT AUDITED FINANCIAL STATEMENTS HERE] B-17 APPENDIX C INSTALLMENT PAYMENTS SUMMARY FINANCIAL INFORMATION C-1 APPENDIX D SUMMARY OF PRINCIPAL LEGAL DOCUMENTS The following is a brief summary of the provisions of the Indenture of Trust for the Bonds and the individual Installment Sale Agreements. Such summary is not intended to be definitive, and reference is made to the complete documents for the complete terms thereof. D-1 APPENDIX E PROPOSED FORM OF BOND COUNSEL OPINION [to come] E-1 APPENDIX F FORM OF AUTHORITY CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the "Disclosure Certificate") is executed and delivered by the ASSOCIATION OF BAY AREA GOVERNMENTS (the "Authority") in connection with the issuance by the Authority of its $ 2005 Water and Wastewater Revenue Bond, Series A (the "Bonds"). The Bonds are being issued under an Indenture of Trust, dated as of September 1, 2005 (the "Indenture"), between the Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Authority covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Authority for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Trust Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings: "Dissemination Agent" shall mean Wells Fargo Bank, National Association, or any successor Dissemination Agent designated in writing by the Authority and which has filed with the Authority and the Trustee a written acceptance of such designation. "Listed Events" shall mean any of the events listed in Section 3(a) of this Disclosure Certificate. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by the State of California as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Certificate, there is no State Repository. Section 3. Reporting of Significant Events. (a) Under the provisions of this Section 3, the Authority shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds, if material: F-1 (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Principal and interest payment delinquencies. Non-payment related defaults. Unscheduled draws on debt service reserves reflecting financial difficulties. Unscheduled draws on credit enhancements reflecting financial difficulties. Substitution of credit or liquidity providers, or their failure to perform. Adverse tax opinions or events affecting the tax-exempt status of the security. Modifications to rights of Bond holders. Contingent or unscheduled redemption of Bonds. Defeasances. Release, substitution, or sale of property securing repayment of the securities. Rating changes. (b) Whenever the Authority obtains knowledge of the occurrence of a Listed Event, the Authority shall as soon as possible determine if such event would be material under applicable Federal securities law. (c) If the Authority determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Authority shall promptly file a notice of such occurrence with the Municipal Securities Rulemaking Board and each State Repository with a copy to the Trustee. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(viii) and (ix) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Trust Agreement. Section 4. Termination of Reporting Obligation. The Authority's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the Authority shall give notice of such termination in the same manner as for a Listed Event under Section 3(c). Section 5. Dissemination Agent. The Authority may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be Wells Fargo Bank, National Association. Any Dissemination Agent may resign by providing thirty days' written notice to the Authority and the Trustee. Section 6. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Authority may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Section 3(a), it may only be made in connection with a change in circumstances that arises from a change in F-2 legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. Section 7. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Authority from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Authority chooses to include any information in any notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Authority shall have no obligation under this Disclosure Certificate to update such information or include it in any future notice of occurrence of a Listed Event. Section 8. Default. In the event of a failure of the Authority to comply with any provision of this Disclosure Certificate the Trustee, at the written direction of any Participating Underwriter or the holders of at least 25% aggregate principal amount of Outstanding Bonds, shall, but only to the extent moneys or other indemnity, satisfactory to the Trustee, has been furnished to the Trustee to hold it harmless from any loss, costs, liability or expense, including fees and expenses of its attorneys and any additional fees of the Trustee, or any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Authority to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Trust Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the Authority to comply with this Disclosure Certificate shall be an action to compel performance. Section 9. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent and the Trustee shall have only such duties as are specifically set forth in this Disclosure Certificate. The Dissemination Agent shall be paid compensation in accordance with the indenture for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent and the Trustee shall have no duty or obligation to review any information provided to it by the Authority and shall not be deemed to be acting in any fiduciary capacity for the Authority, the Bond holders or any other party. F-3 Section 10. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Authority, the Trustee, the Dissemination Agent, the Participating Underwriters and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. Date: ,2005 ASSOCIATION OF BAY AREA GOVERNMENTS By Finance Director ACKNOVVLEDGED: WELLS FARGO BANK, NATIONAL ASSOCIATION, as Dissemination Agent By Vice President F-4 APPENDIX G FORM OF LOCAL AGENCY CONTINUING DISCLOSURE CERTIFICATE This CONTINUING DISCLOSURE CERTIFICATE (the "Disclosure Certificate")is executed and delivered by the (the "Local Agency") in connection with the issuance by the Association of Bay Area Governments of its $~ 2005 Water and Wastewater Revenue Bonds, Series A (the "Bonds"). The Bonds are being issued under an Indenture of Trust, dated as of September 1, 2005 (the "Indenture"), between the Association of Bay Area Governments (the "Authority") and Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Bonds are secured by and payable from Revenues, which consist, in part, of payments (the "Installment Payments") made by the Local Agency under an Installment Sale Agreement, dated as of September 1, 2005 (the "Installment Sale Agreement"), among the Authority, the Trustee and the Local Agency. The Local Agency covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the Local Agency for the benefit of the holders and beneficial owners of the Bonds and in order to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Trust Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section 2, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the Local Agency under, and as described in, Sections 3 and 4 of this Disclosure Certificate. "CPO" means the Internet-based filing system currently located at www. DisclosureUSA.org, or such other similar filing system approved by the Securities and Exchange Commission. "Dissemination Agent" shall mean Wells Fargo Bank, National Association, or any successor Dissemination Agent designated in writing by the Local Agency and which has filed with the Local Agency and the Trustee a written acceptance of such designation. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. "Participating Underwriter" shall mean any of the original underwriters of the Bonds required to comply with the Rule in connection with offering of the Bonds. "Repository" shall mean each National Repository and each State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by the State of California as a state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. As of the date of this Disclosure Certificate, there is no State Repository. G-1 Section 3. Provision of Annual Reports. (a) The Local Agency shall, or upon written direction shall cause the Dissemination Agent to, not later than nine months after the end of the Local Agency's fiscal year (currently June 30), commencing with the report for the 2004-2005 fiscal year (provided, however, that the first Annual Report may consist of the Local Agency's audited financial statements and the Official Statement for the Bonds), provide to each Repository (or, in lieu of providing to each Repository, provide to the CPO) an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate with a copy to the Trustee. Not later than fifteen (15) Business Days prior to said date, the Local Agency shall provide the Annual Report to the Dissemination Agent (if other than the Local Agency). The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the Local Agency may be submitted separately from the balance of the Annual Report, and later than the date required above for the filing of the Annual Report if not available by that date. If the Local Agency's fiscal year changes, it shall give notice of such change to the Municipal Securities Rulemaking Board and each State Repository with a copy to the Trustee. The Local Agency shall provide a written certification with each Annual Report furnished to the Dissemination Agent and the Trustee to the effect that such Annual Report constitutes the Annual Report required to be furnished by the Local Agency hereunder. (b) If the Local Agency is unable to provide to the Repositories an Annual Report by the date required in subsection (a), the Local Agency shall, by written direction, cause the Dissemination Agent to provide to (i) each National Repository or the Municipal Securities Rulemaking Board and (ii) each appropriate State Repository (with a copy to the Trustee) a notice, in substantially the form attached as Exhibit A. In lieu of filing the notice with each Repository, the Local Agency or the Dissemination Agent may file such notice with the CPO. (c) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and each State Repository, if any; and (ii) if the Dissemination Agent is other than the Local Agency, file a report with the Local Agency certifying that the Annual Report has been provided under this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. Section 4. Content of Annual Reports. The Local Agency's Annual Report shall contain or incorporate by reference the following: (a) Audited Financial Statements prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to lime by the Governmental Accounting Standards Board. If the Local Agency's audited financial statements are not available by the time the Annual Report is required to be filed under Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited G-2 financial statements shall be filed in the same manner as the Annual Report when they become available. (b) Unless otherwise provided in the audited financial statements filed on or prior to the annual filing deadline for Annual Reports provided for in Section 3 above, financial information and operating data with respect to the Local Agency for preceding fiscal year, substantially similar to that provided in the corresponding tables and charts in the Official Statement for the Bonds: (i) An update for the previous fiscal year of the table in the Official Statement showing coverage provided by the Local Agency's Net Revenues with respect to its Installment Payments. (ii) The Water System's revenues and expenses for the most recently-completed fiscal year in the form of the table in the Official Statement. (iii) Information concerning any revision in the adopted rates and charges which are generally imposed by the Local Agency upon customers of the Water System in the form of the tables in the Official Statement. (iv) A description of any additional indebtedness incurred during the prior fiscal year which is payable from Net Revenues on a parity with the Installment Payments. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the Local Agency or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The Local Agency shall clearly identify each such other document so included by reference. (c) In addition to any of the information expressly required to be provided under this Disclosure Certificate, the Local Agency shall provide such further material information, if any, as may be necessary to make the specifically required statements, in the light of the circumstances under which they are made, not misleading. Section 5. Reporting of Significant Events. (a) The Local Agency shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Installment Payments, if material: (1) Principal and interest payment delinquencies. (2) Non-payment related defaults. (3) Unscheduled draws on debt service reserves reflecting financial difficulties. (4) Unscheduled draws on credit enhancements reflecting financial difficulties. (5) Substitution of credit or liquidity providers, or their failure to perform. (6) Adverse tax opinions or events affecting the tax-exempt status of the security. G-3 (7) (8) (9) (10) (11) Modifications to rights of security holders. Contingent or unscheduled bond calls. Defeasances. Release, substitution, or sale of property securing repayment of the securities. Rating changes. (b) Whenever the Local Agency obtains knowledge of the occurrence of a Listed Event, the Local Agency shall as soon as possible determine if such event would be material under applicable Federal securities law. (c) If the Local Agency determines that knowledge of the occurrence of a Listed Event would be material under applicable Federal securities law, the Local Agency shall promptly file a notice of such occurrence with (i) each National Repository or the Municipal Securities Rulemaking Board and (ii) each applicable State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds pursuant to the Indenture. In lieu of filing the notice of Listed Event with each Repository in accordance with the preceding paragraph, the Local Agency or the Dissemination Agent may file such notice of a Listed Event with the CPO. Section 6. Termination of Reporting Obligation. The Local Agency's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior prepayment or payment in full of all of the Installment Payments. If such termination occurs prior to the final maturity of the Local Agency's obligations under the Installment Payments, the Local Agency shall promptly file a notice of such occurrence in the same manner as for a Listed Event under Section 5(c). Section 7. Dissemination Agent. The Local Agency may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The initial Dissemination Agent shall be Wells Fargo Bank, National Association. Any Dissemination Agent may resign by providing thirty days' written notice to the Local Agency and the Trustee. Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the Local Agency may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the G-4 consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended under the provisions hereof, the first annual financial information filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to the undertaking specifying the accounting principles to be followed in preparing financial statements, the annual financial information for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the Local Agency to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. A notice of the change in the accounting principles shall be sent to the Municipal Securities Rulemaking Board and each State Repository with a copy to the Trustee. Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the Local Agency from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the Local Agency chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the Local Agency shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 10. Default. In the event of a failure of the Local Agency to comply with any provision of this Disclosure Certificate the Trustee, at the written direction of any Participating Underwriter or the holders of at least 25% aggregate principal amount of Outstanding Bonds, shall, but only to the extent moneys or other indemnity, satisfactory to the Trustee, has been furnished to the Trustee to hold it harmless from any loss, costs, liability or expense, including fees and expenses of its attorneys and any additional fees of the Trustee, or any holder or beneficial owner of the Bonds may, take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Local Agency to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Installment Sale Agreement or the indenture, and the sole remedy under this Disclosure Certificate in the event of any failure of the Local Agency to comply with this Disclosure Certificate shall be an action to compel performance. Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent and the Trustee shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Local Agency agrees to indemnify and save the Dissemination Agent and the Trustee, their officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's or the Trustee's respective negligence or willful misconduct. The Dissemination Agent shall be paid G-5 compensation by the Local Agency for its services provided hereunder in accordance with its schedule of fees as amended from time to time and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent and the Trustee shall have no duty or obligation to review any information provided to it by the Local Agency and shall not be deemed to be acting in any fiduciary capacity for the Local Agency, the Bond holders or any other party. The obligations of the Local Agency under this Section 11 shall survive resignation or removal of the Dissemination Agent and payment of the Bonds. SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the Local Agency, the Trustee, the Dissemination Agent, the Participating Underwriters and holders and beneficial owners from time to time of the Bonds, and shall create no rights in any other person or entity. Date: ,2005 [LOCAL AGENCY] ACKNOWLEDGED: WELLS FARGO BANK, NATIONAL ASSOCIATION, as Dissemination Agent By Title By Vice President G-6 EXHIBIT A NOTICE TO MUNICIPAL SECURITIES RULEMAKING BOARD AND EACH STATE REPOSITORY OF FAILURE TO FILE ANNUAL REPORT Name of Issuer: Association of Bay Area Governments Name of Local Agency: Name of Issue: Association of Bay Area Governments $ Wastewater Revenue Bonds, Series A 2005 Water and Date of Issuance: ., 2005 NOTICE IS HEREBY GIVEN that (the "Local Agency") has not provided an Annual Report with respect to the above-named Bonds as required by that certain Installment Sale Agreement, dated as of September 1, 2005, between the Authority, the trustee named therein, and the Local Agency. The Local Agency anticipates that the Annual Report will be filed by Dated: [LOCAL AGENCY] By Name Title G-7 APPENDIX H DTC AND THE BOOK-ENTRY ONLY SYSTEM The information in this Appendix concerning The Depository Trust Company ("DTC"), New York, New York, and DTC's book-entry system has been obtained from DTC and the Authority takes no responsibility for the completeness or accuracy thereof. The Authority cannot and does not give any assurances that D TC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to D TC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that D TC, D TC Participants or D TC Indirect Participants will act in the manner described in this Appendix. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of D TC to be followed in dealing with D TC Participants are on file with D TC. The Depository Trust Company ("DTC"), New York, NY, will act as securities depository for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered security certificate will be issued for each maturity of the Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered under the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S, equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S, securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (respectively, "NSCC", "GSCC", "MBSCC", and "EMCC", also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S, securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of the Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation H-1 from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except in the event that use of the book-entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Bonds with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of the Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Owners of the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Authority as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of principal of, premium, if any, and interest evidenced by the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the Authority or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Trustee, or the Authority, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal of, premium, if any, and interest evidenced by the Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC)is the responsibility of the Authority or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and H-2 disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving reasonable notice to the Authority or the Trustee. Under such circumstances, in the event that a successor depository is not obtained, Bond certificates are required to be printed and delivered. The Authority may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. In the event that the book-entry system is discontinued as described above, the requirements of the Indenture will apply. The foregoing information concerning DTC concerning and DTC's book-entry system has been provided by DTC, and neither the Authority or the Trustee take any responsibility for the accuracy thereof. Neither the Authority or the Underwriter can and do not give any assurances that DTC, the Participants or others will distribute payments of principal, interest or premium, if any, evidenced by the Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. Neither the Authority or the Underwriter is responsible or liable for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Owner with respect to the Bonds or an error or delay relating thereto. The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the Authority believes to be reliable, but the Authority takes no responsibility for the accuracy thereof. H-3 APPENDIXI SPECIMEN BOND INSURANCE POLICY I-1 ATTACHMENT_~,, -- Jones Hall, A Professional Law Corporation July 15, 2005 August 8, 2005 INSTALLMENT SALE AGREEMENT Dated as of September 1, 2005 among the ASSOCIATION OF BAY AREA GOVERNMENTS, as Seller CITY OF UKIAH, as Purchaser and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee Relating to $ Association of Bay Area Governments 2005 Water and Wastewater Revenue Bonds, Series A SECTION 1.1. SECTION 1.2. SECTION 2.1. SECTION 2.2. SECTION 3.1. SECTION 3.2. SECTION 3.3. SECTION 3.4. SECTION 3.5. SECTION 3.6. SECTION 4.1. SECTION 4.2. SECTION 4.3. SECTION 4.4. SECTION 4.5. SECTION 4,6. SECTION 4.7. SECTION 4.8. SECTION 5.1. SECTION 5.2. SECTION 5.3. SECTION 5.4. SECTION 5.5. SECTION 5.6. SECTION 5.7. SECTION 5.8. SECTION 5.9. SECTION 5.10. SECTION 6.1. SECTION 6.2. SECTION 6.3. TABLE OF CONTENTS Page ARTICLE I Definitions; Rules of Interpretation Definitions .............................................................................................. 2 Interpretation .......................................................................................... 6 ARTICLE II Representations, Covenants and Warranties Representations, Covenants and Warranties of the City ...................... 6 Representations, Covenants and Warranties of Authority ................... 8 ARTICLE III Issuance of Bonds; Application of Proceeds The Bonds ............................................................................................. 9 Deposit and Application of Funds .......................................................... 9 Acquisition and Construction of the Project .......................................... 9 Appointment of City as Agent ................................................................ 9 Plans and Specifications ....................................................................... 9 Certificate of Completion ...................................................................... 10 ARTICLE IV Sale of Project Installment Payments Sale ...................................................................................................... 10 Term ..................................................................................................... 10 Title ...................................................................................................... 11 Installment Payments ........................................................................... 11 Pledge and Application of Net Revenues ............................................ 12 Rate Stabilization Fund ........................................................................ 13 Special Obligation of the City; Obligations Absolute ............................ 14 Additional Payments ............................................................................ 14 ARTICLE V Covenants of the City Disclaimer of Warranties ..................................................................... 15 Release and Indemnification Covenants .............................................. 15 Sale or Eminent Domain of Water System ........................................... 16 Insurance ............................................................................................. 16 Records and Accounts ....................................................................... 16 Rates and Charges .............................................................................. 17 Superior and Subordinate Obligations ................................................. 17 Issuance of Parity Debt ....................................................................... 17 Operation of Water System in Efficient and Economical Manner ......... 18 Assignment and Amendment Hereof ................................................... 19 ARTICLE VI Events of Default Events of Default Defined .................................................................... 20 Remedies on Default ............................................................................ 21 No Remedy Exclusive .......................................................................... 22 -i- SECTION 6.4. SECTION 6.5. SECTION 6.6. SECTION 7.1. SECTION 7.2. SECTION 7.3. SECTION 7.4. SECTION 8.1. SECTION 8.2. SECTION 8.3. SECTION 8.4. SECTION 8.5. SECTION 8.6. SECTION 8.7. SECTION 8.8. SECTION 8.9. SECTION 8.10. APPENDIXA APPENDIX B Agreement to Pay Attorneys' Fees and Expenses ............................. 22 No Additional Waiver Implied by One Waiver ....................................... 22 Trustee, the Bond Insurer and Bond Owners to Exercise Rights .................................................................................................... 22 ARTICLE VII Prepayment of Installment Payments Security Deposit .................................................................................. 23 Optional Prepayment ............................................................................ 23 Mandatory Prepayment From Proceeds of Insurance, Sale or Condemnation ....................................................................................... 23 Credit for Amounts on Deposit ............................................................ 23 ARTICLE Vl ll Miscellaneous Further Assurances ............................................................................ 24 Notice ................................................................................................... 25 Governing Law .................................................................................... 25 Binding Effect ...................................................................................... 25 Severability of Invalid Provisions ......................................................... 25 Article and Section Headings and References ................................... 26 Payment on Non-Business Days ......................................................... 26 Execution of Counterparts ................................................................... 26 Waiver of Personal Liability ................................................................. 26 Trustee and the Bond Insurer as Third Party Beneficiaries ................ 26 Schedule Of Installment Payments Description Of Project -ii- INSTALLMENT SALE AGREEMENT This INSTALLMENT SALE AGREEMENT (this "Agreement"), dated as of September 1, 2005, is among the ASSOCIATION OF BAY AREA GOVERNMENTS, a joint exercise of powers authority duly organized and existing under the laws of the State of California (the "Authority"), as seller, the CITY OF UKIAH, a municipal corporation duly organized and existing under the laws of the State of California (the "City"), as purchaser, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as trustee (the "Trustee"). BA CKG R 0 UND: 1. The City presently owns and operates facilities and property for the supply, treatment and distribution of water within the service area of the City (the "Water System"), and the City wishes to provide funds at this time to finance improvements to the Water System consisting generally of various water storage and distribution facilities, installing the related pumping, distribution and support systems, and retrofitting the Water Treatment Plant, particularly its reservoir (the "Project"). 2. The Authority has the power to assist the City in the financing of facilities and property useful to the City, and the Authority has proposed to enter into this Agreement with the City under which the Authority has agreed to provide funding for the Project and sell the completed Project to the City in consideration of the agreement by the City to pay the purchase price of the Project in semiannual installments (the "Installment Payments"). 3. For the purpose of obtaining the moneys required to finance the Project in accordance with the terms hereof, the Authority has assigned and transferred certain of its rights under this Agreement to the Trustee under an Indenture of Trust dated as of September 1, 2005, between the Authority and the Trustee, under which the Authority has authorized the issuance of its 2005 Water and Wastewater Revenue Bonds, Series A in the aggregate principal amount of $ (the "Bonds") which are secured by a pledge of certain revenues including the Installment Payments. 4. The City has determined to secure the Installment Payments with a pledge of and lien on the Net Revenues from the Water System, on a parity with the pledge and lien which secures the loan obligations of the City under Contract No. E54304 dated May 18, 1990, between the City and the State of California, acting by and through the Department of Water Resources. 5. The payment of principal of and interest on the Bonds is insured by a municipal bond insurance policy issued by XL Capital Assurance Inc. (the "Bond Insurer"). AGREEMENT: In consideration of the foregoing and the material covenants hereinafter contained, the City, the Trustee and the Authority formally covenant, agree and bind themselves as follows: ARTICLE I DEFINITIONS; RULES OF INTERPRETATION SECTION 1.1. Definitions. Unless the context clearly otherwise requires or unless otherwise defined herein, the capitalized terms in this Agreement have the respective meanings given them in Appendix A to the Indenture. In addition, when used in this Agreement the following terms have the following defined meanings: "Additional Revenues" means, with respect to the issuance of any Parity Debt, any or all of the following amounts: (i) An allowance for Net Revenues from any additions or improvements to or extensions of the Water System to be made by the City during the 36 month period following the issuance of such Parity Debt, in an amount equal to 90% of the estimated additional average annual Net Revenues to be derived from all properties which are improved with a structure the construction of which has been completed prior to the date of issuance of such Parity Debt and to which service will be provided by such additions, improvements and extensions, all as shown by the certificate or opinion of a Fiscal Consultant. (ii) An allowance for Net Revenues arising from any increase in the charges made for service from the Water System which has become effective prior to the incurring of such Parity Debt but which, during all or any part of the most recent completed Fiscal Year for which audited financial statements of the City are available, or for any more recent consecutive 12 month period selected by the City under Section 5.8(b), was not in effect, in an amount equal to the total amount by which the Net Revenues would have been increased if such increase in charges had been in effect during the whole of such Fiscal Year or 12 month period, all as shown by the certificate or opinion of a Fiscal Consultant. "City Representative" means the Mayor, the City Manager or the Finance Director of the City, or any other person authorized by resolution of the City Council of the City to act on behalf of the City under or with respect to this Agreement. "Event of Default" means an event of default hereunder, as described in Section 6.1. "Fiscal Consultant" means any consultant or firm of such consultants appointed by the City and who, or each of whom: (a) is judged by the City to have experience in matters relating to the financing of water system enterprises; (b) is in fact independent and not under domination of the City; (c) does not have any substantial interest, direct or -2- indirect, with the City other than as purchaser of the Bonds or any Parity Debt; and (d) is not connected with the City as an officer or employee of the City, but who may be regularly retained to make reports to the City. "Fiscal Year" means the twelve-month period beginning on July 1 of any year and ending on June 30 of the next succeeding year, or any other twelve-month period selected by the City as its fiscal year. "Gross Revenues" means all gross charges (including surcharges, if any) received for, and all other gross income and receipts derived by the City from, the ownership and operation of the Water System or otherwise arising from the Water System, including but not limited to (a) connection charges, (b) any amounts transferred to the Water Fund from a Rate Stabilization Fund in accordance with Section 4.6, and (c) investment earnings on amounts held in the Water Fund or in any other fund established with respect to the Water System. Gross Revenues do not include (i) refundable deposits made to establish credit, (ii) the proceeds of any ad valorem property taxes, and (iii) the proceeds of any special assessments or special taxes levied upon real property within any improvement district served by the City for the purpose of paying special assessment bonds or special tax obligations of the City relating to the Water System. "Installment Payment" means all payments required to be paid by the City on any date under Section 4.4(a), including any amounts payable upon delinquent installments and including any prepayment thereof under Section 7.2. "Installment Payment Date" means, with respect to any Interest Payment Date, the 3rd Business Day preceding such Interest Payment Date. "Installment Payment Fund" means the fund which is established and held by the Trustee under Section 4.4(b). "Maximum Annual Debt Service" means, as of the date of any calculation, the maximum sum obtained for the current or any future Fiscal Year: (a) the aggregate amount of the Installment Payments coming due and payable in such Fiscal Year hereunder, except to the extent payable from any security deposit under Section 7.1; (b) the principal amount of all outstanding Parity Debt, if any, coming due and payable by their terms in such Fiscal Year, provided that if any such issue of Parity Debt has principal coming due and payable solely at maturity, such principal shall be deemed to be amortized over the full term of such Parity Debt in a manner that results in approximately equal annual installments of principal and interest in each Fiscal Year; and (c) the amount of interest which would be due during such Fiscal Year on the aggregate principal amount of all outstanding Parity Debt, if any, which would be outstanding in such Fiscal Year if such Parity Debt are retired as scheduled; provided, however, that with respect to any Parity Debt which bear interest at an adjustable rate, such interest shall be calculated at an assumed rate equal to the average rate of interest per annum for each of the five previous whole -3- calendar years as shown by the J. J. Kenny Index (or, in the event and to the extent such index is not maintained for all or any portion of such period, any similar index of variable rate interest for tax- exempt obligations as may be selected by the City in its sole discretion). "Net Revenues" means, for any period, an amount equal to all of the Gross Revenues received during such period minus the amount required to pay all Operation and Maintenance Costs becoming payable during such period. "Operation and Maintenance Costs" means the reasonable and necessary costs and expenses paid by the City to maintain and operate the Water System, including but not limited to (a) costs of acquisition of water to be supplied by the Water System, (b) costs of electricity and other forms of energy supplied to the Water System and (c) the reasonable expenses of management and repair and other costs and expenses necessary to maintain and preserve the Water System in good repair and working order. Operation and Maintenance Costs does not include (i) Debt Service payable on obligations incurred by the City with respect to the Water System, including but not limited to the Installment Payments and any Parity Debt, (ii) depreciation, replacement and obsolescence charges or reserves therefor, (iii) amounts payable as administrative costs of the City including costs attributable to the use of City-owned assets, and (iv) amortization of intangibles or other bookkeeping entries of a similar nature. "Overdue Rate" means the highest rate of interest represented by any of the Outstanding Bonds. "Parity Debt Documents" means, collectively, the indenture of trust, trust agreement or other document authorizing the issuance of any Parity Debt or any securities which evidence Parity Debt. "Parity Debt" means any bonds, notes, leases, installment sale agreements or other obligations of the City payable from and secured by a pledge of and lien upon any of the Net Revenues on a parity with the Installment Payments, entered into or issued under and in accordance with Section 5.8. "Prior State Loan" means the loan obligations of the City under Contract No. E54304 dated May 18, 1990, between the City and the State of California, acting by and through the Department of Water Resources, in the aggregate original principal amount of $3,427,628. "Project" means the facilities, improvements and other property described more fully in Appendix B attached hereto, as that Appendix may be amended from time to time. "Project Costs"-means, with respect to the Project, all costs of the acquisition, construction and installation thereof which are paid from moneys on deposit in the Project Fund, including but not limited to: (a) all costs required to be paid to any person under the terms of any agreement for or relating to the acquisition, construction and installation of the Project; (b) obligations incurred for labor and materials in connection with the acquisition, construction and installation of the Project; (c) the cost of performance or other bonds and any and all types of insurance that may be necessary or appropriate to have in effect in connection with the acquisition, construction and installation of the Project; (d) all costs of engineering, architectural, legal, environmental, design and other consulting services, including the actual out-of-pocket costs for test borings, surveys, estimates, plans and specifications and preliminary investigations therefor, development fees, sales commissions, and for supervising construction, as well as for the performance of all other duties required by or consequent to the proper acquisition, construction and installation of the Project; (e) any sums required to reimburse the City for advances made for any of the above items or for any other costs incurred and for work done which are properly chargeable to the acquisition, construction of the Project. (f) all financing costs incurred in connection with the acquisition, construction and installation of the Project; and (g) the interest components of the Installment Payments during the period of acquisition, construction and installation of the Project. "Project Fund" means the fund by that name established and held by the Trustee under Section 3.6. "Qualified Reserve Fund Credit Instrument" means an irrevocable standby or direct-pay letter of credit or surety bond issued by a commercial bank or insurance company and deposited with the Trustee under Section 4.7, provided that all of the following requirements are met at the time of acceptance thereof by the Trustee: (a) the long-term credit rating of such bank or insurance company is A or better from each rating agency which then maintains a rating on the Bonds; (b) such letter of credit or surety bond has a term of at least 12 months; (c) such letter of credit or surety bond has a stated amount at least equal to the portion of the Reserve Requirement with respect to which funds are proposed to be released under Section 4.7; and (d) the Trustee is authorized under the terms of such letter of credit or surety bond to draw thereunder an amount equal to any deficiencies which may exist from time to time in the Installment Payment Fund for the purpose of making payments required under Section 4.4. "Rate Stabilization Fund" means any fund established and held by the City as a fund for the stabilization of rates and charges imposed by the City with respect to the Water System, which fund is established, held and maintained in accordance with Section 4.6. "Reserve Fund" means the fund by that name established and held by the Trustee under Section 4.7. -5- "Reserve Requirement" means, as of the date of calculation, an amount equal to the maximum amount Installment Payments payable by the City in the current or any future Fiscal Year. "Water Fund" means the fund or funds established and held by the City with respect to the Water System for the receipt and deposit of Gross Revenues. "Water System" means the entire system of the City for the supply, storage, treatment and distribution of water within the service area of the City, including but not limited to all facilities, properties, lands, rights, entitlements and other property useful in connection therewith, together with all extensions thereof and improvements thereto at any time acquired, constructed or installed by the City. SECTION 1.2. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and includes the neuter, masculine or feminine gender, as appropriate. (b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and do not affect the meaning, construction or effect hereof. (c) All references herein to "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement; the words "herein," "hereof," "hereby," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. ARTICLE II REPRESENTATIONS, COVENANTS AND WARRANTIES SECTION 2.1. Representations, Covenants and Warranties of the City. The City represents, covenants and warrants to the Authority and the Bond Insurer as follows: (a) Due Organization and Existence. The City is a municipal corporation duly organized and validly existing under the laws of the State, has full legal right, power and authority under said laws to enter into this Agreement and to carry out and consummate all transactions contemplated hereby and thereby, and by proper action the City Council of the City has duly authorized the execution and delivery of this Agreement. (b) Due Execution. The representatives of the City executing this Agreement are fully authorized to execute the same. (c) Valid, Binding and Enforceable Obligations. This Agreement have been duly authorized, executed and delivered by the City and -6- (d) (e) (f) constitute the legal, valid and binding agreements of the City enforceable against the City in accordance with their respective terms; except as the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and except as such enforceability may be subject to the exercise of judicial discretion in accordance with principles of equity. No Conflicts. The execution and delivery of this Agreement, the consummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof and thereof, do not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the City is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the City, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially adversely affect the consummation of the transactions contemplated by this Agreement or the financial condition, assets, properties or operations of the City, including but not limited to the performance of the City's obligations under this Agreement. Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the City or of the voters of the City, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of this Agreement or the Indenture, or the consummation of any transaction herein or therein contemplated, except as have been obtained or made and as are in full force and effect. No Litigation. To the best knowledge of the undersigned representatives of the City, there is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, municipal or other governmental authority pending or, to the knowledge of the City after reasonable investigation, threatened against or affecting the City or the assets, properties or operations of the City which, if determined adversely to the City or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this Agreement or the Indenture, or upon the financial condition, assets, properties or operations of the City, and the City is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially adversely affect the consummation of the transactions contemplated by this Agreement or the Indenture, or the financial conditions, assets, properties or operations of the City, including but not limited -7- to the payment and performance of the City's obligations under this Agreement. (g) Prior Indebtedness. The City has not issued or incurred any obligations which are currently outstanding having any priority in payment out of the Gross Revenues or the Net Revenues over the payment of the Installment Payments as provided herein. SECTION 2.2. Representations, Covenants and Warranties of Authority. The Authority represents, covenants and warrants to the City and the Bond Insurer as follows: (a) Due Organization and Existence. The Authority is a joint exercise of powers authority organized and existing under the laws of the State, and has power to enter into this Agreement and to perform the duties and obligations imposed on it hereunder and thereunder. The Executive Board of the Authority has duly authorized the execution and delivery of this Agreement. (b) Due Execution. The representatives of the Authority executing this Agreement are fully authorized to execute the same. (c) Valid, Binding and Enforceable Obligations. This Agreement have been duly authorized, executed and delivered by the Authority and constitute the legal, valid and binding agreements of the Authority with the Authority, enforceable against the Authority in accordance with their respective terms; except as the enforceability thereof may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and except as such enforceability may be subject to the exercise of judicial discretion in accordance with principles of equity. -8- ARTICLE III ISSUANCE OF BONDS; APPLICATION OF PROCEEDS SECTION 3.1. The Bonds. The Authority shall issue the Bonds under the Indenture in the aggregate principal amount of $ The City hereby approves the Indenture, the assignment thereunder to the Trustee of certain rights of the Authority, and the issuance of the Bonds. SECTION 3.2. Deposit and Appfication of Funds. The proceeds received by the Trustee from the sale of the Bonds shall be deposited in the respective funds and accounts, and in the respective amounts, as set forth in Section 3.01 of the Indenture. The amount of $ shall be deposited from the proceeds of sale of the Bonds into the Project Fund to be applied to finance the acquisition, construction and improvement of the Project as provided in this Agreement. In addition, the amount of $ shall be deposited from the proceeds of sale of the Bonds into the Reserve Fund to be held as a reserve for the payment of the Installment Payments as provided herein. SECTION 3.3. Acquisition and Construction of the Project. The City, as agent of the Authority under Section 3.4, hereby agrees with due diligence to supervise and provide for, or cause to be supervised and provided for, the acquisition, construction and installation of the Project in accordance with the plans and specifications, purchase orders, construction contracts and other documents relating thereto and approved by the City under all applicable requirements of law. All contracts for, and all work relating to, the acquisition, construction and installation of the Project are subject to all applicable provisions of law relating to the acquisition and construction of public works by the City. The failure to complete the Project by the estimated completion date thereof does not constitute an Event of Default hereunder or a grounds for termination hereof, nor will such failure result in the diminution, abatement or extinguishment of the obligations of the City hereunder to pay the Installment Payments when due. The Authority has no responsibility, and shall incur no liability or obligations, for the performance by the City of its obligations under this Section 3.3. SECTION 3.4. Appointment of City as Agent. The Authority hereby appoints the City as its agent to carry out all phases of the acquisition, construction and installation of the Project under and in accordance with the provisions hereof. The City hereby accepts such appointment and assumes all rights, liabilities, duties and responsibilities of the Authority regarding the acquisition, construction and installation of the Project. As agent of the Authority hereunder, the City will enter into, administer and enforce all purchase orders or other contracts relating to the Project. SECTION 3.5. Plans and Specifications. The City has the right to specify the exact scope, nature and identification of the Project and the respective components thereof. Before any payment is made for the Project or any component thereof from amounts on deposit in the Project Fund, the City must prepare detailed plans and specifications relating thereto. The City may from time to time amend any such plans and specifications, and thereby change or modify the description of the Project or any component thereof. SECTION 3.6. Project Fund. The Trustee shall establish and maintain a separate fund to be known as the "City of Ukiah 2005 Project Fund". The Trustee shall disburse -9- moneys in the Project Fund from time to time to pay Project Costs (or to reimburse the City for payment of Project Costs) in accordance with written requisitions filed by the City with the Trustee. Each such written requisition must be signed by a City Representative and shall state, with respect to each payment to be made thereby, (i) the name and address of the firm or corporation to whom such payment is to be made, (ii) the amount and purpose of such payment and (iii) that such constitutes payment of a Project Cost. The Trustee has no responsibility for payments made in accordance with this Section 3.6. The City shall maintain accurate records showing all disbursements from the Project Fund. Amounts on deposit in the Project Fund shall be invested by the Trustee at the written direction of the City in accordance with Section 8.1. Upon the receipt by the Trustee of a written certificate of a City Representative under Section 3.7 stating that the Project has been substantially completed, the Trustee will withdraw from the Project Fund and deposit in the Installment Payment Fund all amounts remaining on deposit in the Project Fund, other than amounts estimated by the City (as identified in such written certificate) to be required to pay future Project Costs. Upon the filing with the Trustee of a written certificate of the City stating that no further amounts are intended to be requisitioned from the Project Fund, the Trustee will thereupon close the Project Fund and transfer all remaining amounts therein to the Installment Payment Fund. If and to the extent so directed in writing by a City Representative, the Trustee shall apply all or a portion of the amounts so transferred from the Project Fund to the Installment Payment Fund to the prepayment of Installment Payments under Section 7.2. SECTION 3.7. Certificate of Project Completion. Upon the completion of the Project, but in any event not later than 30 days following such completion, the City Representative must execute and deliver to the Authority, the Bond Insurer and the Trustee a written certificate of the City Representative which (a) states that the construction of the Project has been substantially completed, (b) identifies the total Project Costs thereof, and (c) identifies the amounts, if any, to be reserved in the Project Fund for payment of future Project Costs. ARTICLE IV SALE OF PROJECT; INSTALLMENT PAYMENTS SECTION 4.1. Sale. The Authority hereby sells the Project to the City and the City hereby purchases the Project from the Authority, upon the terms and conditions set forth in this Agreement. SECTION 4.2. Term. The Term of this Agreement commences on the Closing Date, and ends on September 1, 20m, or such later or earlier date on which all of the Installment Payments, Additional Payments and other amounts due hereunder have been paid or prepaid. Notwithstanding the foregoing provisions of this Section 4.2, the Term of this Agreement will not end so long as any amounts are owed to the Bond Insurer with respect to the Bond Insurance Policy. SECTION 4.3. Title. Title to the Project, and each component thereof, will be deemed conveyed by the Authority to and vested in the City upon the completion of the acquisition, construction and installation thereof. The Authority and the City will execute, -10- deliver and cause to be recorded any and all documents reasonably required by the City to consummate such transfer of title. SECTION 4.4. Installment Payments. (a) Obligation to Pay. The City hereby agrees to pay to the Authority, as the purchase price of the Project hereunder, the aggregate principal amount of $ together with interest (calculated on the basis of a 360-day year of twelve 30-day months) on the unpaid principal balance thereof, payable in semiannual Installment Payments in the respective amounts and on the respective Installment Payment Dates specified in Appendix A. The Installment Payments shall be secured by and payable solely from the sources specified in Section 4.5. Notwithstanding anything herein or in the Indenture to the contrary, amounts paid by the Bond Insurer under the Bond Insurance Policy do not relieve the City from its obligations hereunder to pay the Installment Payments when due. (b) Installment Payment Fund. The Trustee shall establish and maintain a separate fund to be known as the "City of Ukiah 2005 Installment Payment Fund". On each Installment Payment Date, the City shall deposit with the Trustee an amount which, together with amounts then held by the Trustee in the Installment Payment Fund, is equal to the full amount of such Installment Payment coming due and payable on such Installment Payment Date. On each Installment Payment Date, the Trustee shall withdraw the full amount of the Installment Payment coming due and payable on such Installment Payment Date and transfer such amount to the Revenue Fund which is established and held by the Trustee under the Indenture. (c) Effect of Prepayment. If the City prepays all remaining Installment Payments in full under Section 7.2, the City's obligations under this Agreement will thereupon cease and terminate, including but not limited to the City's obligation to pay Installment Payments under this Section 4.4; provided, however, that the City's obligations to compensate and indemnify the Trustee under Sections 4.8 and 5.2 will survive such prepayment. If the City prepays the Installment Payments in part but not in whole under Section 7.2 or Section 7.3, the principal component of each succeeding Installment Payment will be reduced as provided in such Sections, and the interest component of each remaining Installment Payment will be reduced by the aggregate corresponding amount of interest which would otherwise be payable on the Bonds which are thereby redeemed under the applicable provisions of Section 4.01 of the Indenture. (d) Rate on Overdue Payments. If the City fails to make any of the payments required in this Section 4.4 and Section 4.8, the payment in default will continue as an obligation of the City until fully paid, and the City shall pay the same with interest thereon, from the date of default to the date of payment, at the Overdue Rate. (e) Assignment. The City understands and agrees that certain rights of the Authority, including but not limited to the right of the Authority to receive payment of the Installment Payments, have been assigned by the Authority to the Trustee in trust under the Indenture, for the benefit of the Bond Insurer and the Owners of the Bonds, and the City hereby consents to such assignment. -11- SECTION 4.5. Pledge and Application of Net Revenues. (a) Pledge. All of the Net Revenues and all moneys on deposit in any of the funds and accounts established and held by the Trustee under the Indenture are hereby irrevocably pledged to the punctual payment of the Installment Payments. Such pledge constitutes a security interest in and lien on the Net Revenues and such other moneys for the payment of the Installment Payments in accordance with the terms hereof, on a parity with the pledge and lien which secures the Prior State Loan and any Parity Debt. (b) Deposit of Net Revenues Into Water Fund; Transfers to Make Payments. The City has heretofore established the Water Fund, which the City agrees to continue to hold and maintain for the purposes and uses set forth herein. The City will deposit all of the Gross Revenues in the Water Fund immediately upon receipt, and will apply the amounts in the Water Fund as set forth in this Agreement and in any Parity Debt Documents. In addition to the transfers required to be made the Prior State Loan and under any Parity Debt Documents, the City will apply amounts on deposit in the Water Fund to pay when due the following amounts in the following order of priority: (i) all Operation and Maintenance Costs; (ii) the Installment Payments and all payments of principal of and interest on any Parity Debt; to the Trustee the amount of any deficiency in the Reserve Fund and in any reserve fund established for any Parity Debt, the notice of which deficiency has been to the City; (iv) any other payments required to comply with the provisions of this Agreement, the Prior State Loan and any Parity Debt Documents; and (v) any other purposes authorized under subsection (d) of this Section. (c) No Preference or Priority. Payment of the Installment Payments and the principal of and interest on the Prior State Loan and any Parity Debt shall be made without preference or priority among the Installment Payments, the Prior State Loan and such Parity Debt. If the amount of Net Revenues on deposit in the Water Fund are any time insufficient to enable the City to pay when due the Installment Payments, the Prior State Loan and the principal of and interest on any Parity Debt, such payments shall be made on a pro rata basis. (d) Other Uses of Net Revenues Permitted. The City will manage, conserve and apply the Net Revenues on deposit in the Water Fund in such a manner that all deposits required to be made under the preceding subsection (b) are made at the times and in the amounts so required. Subject to the foregoing sentence, so long as no Event of Default has occurred and is continuing hereunder, the City may use and apply moneys in the Water Fund for (i) the payment of any subordinate obligations or any unsecured obligations, (ii) the acquisition and construction of improvements to the Water System, (iii) the prepayment of any other obligations of the City relating to the Water System, or (iv) any other lawful purposes of the City. (e) Budget and Appropriation of Installment Payments. During the Term of this Agreement, the City will adopt all necessary budgets and make all necessary appropriations of the Installment Payments from the Net Revenues. If any Installment -12- Payment requires the adoption by the City of any supplemental budget or appropriation, the City will promptly adopt the same. The covenants on the part of the City contained in this subsection (e) are duties imposed by law and it is the duty of each and every public official of the City to take such actions and do such things as are required by law in the performance of the official duty of such officials to enable the City to carry out and perform the covenants and agreements in this subsection (e). SECTION 4.6. Rate Stabilization Fund. The City has the right at any time to establish a fund to be held by it and administered in accordance with this Section 4.6, for the purpose of stabilizing the rates and charges imposed by the City with respect to the Water System. From time to time the City may deposit amounts in the Rate Stabilization Fund, from any source of legally available funds, including but not limited to Net Revenues which are released from the pledge and lien which secures the Installment Payments and any Parity Debt, as the City may determine. The City may, but is not be required to, withdraw from any amounts on deposit in the Rate Stabilization Fund and deposit such amounts in the Water Fund in any Fiscal Year for the purpose of paying the Installment Payments or the principal of and interest on any Parity Debt coming due and payable in such Fiscal Year. Amounts so transferred from the Rate Stabilization Fund to the Water Fund in any Fiscal Year will constitute Gross Revenues for such Fiscal Year (except as otherwise provided herein), and will be applied for the purposes of the Water Fund. Amounts on deposit in the Rate Stabilization Fund are not pledged to and do not secure the Installment Payments or any Parity Debt. All interest or other earnings on deposits in the Rate Stabilization Fund will be retained therein or, at the option of the City, be applied for any other lawful purposes. The City may any time to withdraw any or all amounts on deposit in the Rate Stabilization Fund and apply such amounts for any other lawful purposes of the City. SECTION 4.7. Reserve Fund. The Trustee shall establish and maintain a special fund designated as the "City of Ukiah 2005 Reserve Fund" to be held by the Trustee in trust for the benefit of the City and the Owners of the Bonds. The Trustee shall deposit an amount equal to the Reserve Requirement in the Reserve Fund on the Closing Date from the proceeds of the Bonds. Moneys in the Reserve Fund will be held in trust as a reserve for the payment when due of the Installment Payments on behalf of the City. Semiannually on or prior to each Installment Payment Date, the Trustee shall transfer any moneys in the Reserve Fund in excess of the Reserve Requirement to the Installment Payment Fund to be credited towards the Installment Payment coming due and payable on such Installment Payment Date. If on any Installment Payment Date the moneys available in the Installment Payment Fund are not at least equal to the amount of the Installment Payment then coming due and payable, the Trustee shall apply the moneys available in the Reserve Fund to make such payments on behalf of the City by transferring the amount necessary for this purpose to the Installment Payment Fund. Upon the termination of this Agreement and so long as all Installment Payments and other amounts due hereunder have been paid in full, the Trustee shall withdraw all amounts in the Reserve Fund and, at the written request of the City, pay those amounts to the City. Amounts on deposit in the Reserve Fund shall be invested by the Trustee at the written direction of the City in accordance with Section 8.1. With the written consent of the bond Insurer, the City may at any time release funds from the Reserve Fund, in whole or in part, by tendering to the Trustee: (a) a Qualified Reserve Fund Credit Instrument, and (b) an opinion of Bond Counsel stating that such release will not, of itself, cause interest on the Bonds to become includable in gross income for purposes of federal income taxation. Upon tender of such items to the -13- Trustee, the Trustee will transfer such funds from the Reserve Fund to the City for deposit into a separate account to be held by the City and expended to finance improvements to the Water System in accordance with applicable state and federal law. Upon the expiration of any Qualified Reserve Fund Credit Instrument, the City will either (a) replace such Qualified Reserve Fund Credit Instrument with a new Qualified Reserve Fund Credit Instrument, or (b) deposit with the Trustee an amount of funds equal to the Reserve Requirement, to be derived from any source of legally available funds of the City. SECTION 4.8. Additional Payments. In addition to the Installment Payments, the City shall pay when due the following amounts to the following parties: (a) to the Authority, all costs and expenses incurred by the Authority to third parties which are required to comply with the provisions of this Agreement and the Indenture, to the extent the Authority determines that such costs and expenses are allocable to the City; (b) to the Authority, an annual administrative fee equal to .01% of the outstanding principal balance of the Installment Payments, which fee shall be calculated and billed to the City by the Trustee; and (c) to the Trustee upon request therefor, all of its reasonable costs and expenses payable as a result of the performance of and compliance with its duties hereunder or under the Indenture or any related documents. The Additional Payments are payable from, but are not secured by a pledge or lien upon, the Net Revenues. The rights of the Trustee and the Authority under this Section 4.8, and the obligations of the City under this Section 4.8, survive the termination of this Agreement. SECTION 4.9. Special Obligation of the City; Obligations Absolute. The City's obligation to pay the Installment Payments and any other amounts coming due and payable hereunder is a special obligation of the City limited solely to the Net Revenues. Under no circumstances is the City required to advance moneys derived from any source of income other than the Net Revenues and other sources specifically identified herein for the payment of the Installment Payments and such other amounts. No other funds or property of the City are liable for the payment of the Installment Payments and any other amounts coming due and payable hereunder. The obligations of the City to make the Installment Payments from the Net Revenues and to perform and observe the other agreements contained herein are absolute and unconditional and are not subject to any defense or any right of set-off, counterclaim or recoupment arising out of any breach by the Authority or the Trustee of any obligation to the City or otherwise with respect to the Water System, whether hereunder or otherwise, or out of indebtedness or liability at any time owing to the City by the Authority or the Trustee. Until such time as all of the Installment Payments, all of the Additional Payments and all other amounts coming due and payable hereunder have been fully paid or prepaid, the City (a) will not suspend or discontinue payment of any Installment Payments, Additional Payments or such other amounts, (b) will perform and observe all other agreements contained in this Agreement, and (c) will not terminate this Agreement for any cause, including, without limiting the generality of the foregoing, the occurrence of any acts or circumstances that may constitute failure of consideration, -14- eviction or constructive eviction, destruction of or damage to the Water System, failure to complete the acquisition and construction of the Project by the estimated completion date thereof, sale of the Water System, the taking by eminent domain of title to or temporary use of any component of the Water System, commercial frustration of purpose, any change in the tax law or other laws of the United States of America or the State or any political subdivision of either thereof or any failure of the Authority or the Trustee to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with the Indenture or this Agreement. ARTICLE V COVENANTS OF THE CITY SECTION 5.1. Disclaimer of Warranties. The Trustee and the Authority make no warranty or representation, either express or implied, as to the value, design, condition, merchantability or fitness for any particular purpose or fitness for the use contemplated by the City of the Project or any component thereof, or any other representation or warranty with respect to any of the Project or any component thereof. The Trustee and the Authority are not liable for incidental, indirect, special or consequential damages, in connection with or arising out of this Agreement or the Indenture for the existence, furnishing, functioning or use of the Project. SECTION 5.2. Release and Indemnification Covenants. The City agrees to indemnify the Authority, the Trustee and the Bond Insurer, and their respective officers, agents, successors and assigns, against all claims, losses and damages, including legal fees and expenses, arising out of (a) the use, maintenance, condition or management of, or from any work or thing done on or about the Water System by the City, (b) any breach or default on the part of the City in the performance of any of its obligations under this Agreement or the Indenture, (c) any act or omission of the City or of any of its agents, contractors, servants, employees or licensees with respect to the Water System, and (d) any act or omission of any lessee of the City with respect to the Water System. No indemnification is made under this Section 5.2 or elsewhere in this Agreement for willful misconduct or gross negligence under this Agreement by the Authority, the Trustee or the Bond Insurer, or their respective members, officers, agents, employees, successors or assigns. The provisions of this Section 5.2 survive the expiration of the Term of this Agreement. SECTION 5.3. Sale or Eminent Domain of Water System. Except as provided herein, the City covenants that the Water System shall not be encumbered, sold, leased, pledged, any charge placed thereon, or otherwise disposed of, as a whole or substantially as a whole if such encumbrance, sale, lease, pledge, charge or other disposition would materially impair the ability of the City to pay the Installment Payments or the principal of or interest on any Parity Debt, or would materially adversely affect its ability to comply with the terms of this Agreement or any Parity Debt Documents. The City may not enter into any agreement which impairs the operation of the Water System or any part of it necessary to secure adequate Net Revenues to pay the Installment Payments or any Parity Debt, or which otherwise would impair the rights of the Bond Owners or the Trustee with respect to the Net Revenues. If any substantial part of the Water System is sold, the payment therefor shall either (a) be used for the acquisition or construction of improvements and extensions or replacement facilities or (b) be applied on a pro rata basis to (i) prepay the Installment Payments on the next available -15- prepayment date under Section 7.2, and (ii) prepay any Parity Debt in accordance with the related Parity Debt Documents. Any amounts received as awards as a result of the taking of all or any part of the Water System by the lawful exercise of eminent domain, if and to the extent that such right can be exercised against such property of the City, shall either (a) be used for the acquisition or construction of improvements and extension of the Water System, or (b) be applied on a pro rata basis to (i) prepay the Installment Payments on the next available prepayment date under Section 7.2, and (ii) prepay any Parity Debt in accordance with the related Parity Debt Documents. SECTION 5.4. Insurance. The City shall at all times maintain with responsible insurers all such insurance on the Water System as is customarily maintained with respect to works and properties of like character against accident to, loss of or damage to the Water System. All amounts collected from insurance against accident to or destruction of any portion of the Water System shall be used, at the option of the City, either (a) to repair or rebuild such damaged or destroyed portion of the Water System, or (b) to prepay on a pro rata basis (i) the Installment Payments on the next available prepayment date under Section 7.2, and (ii) prepay any Parity Debt in accordance with the related Parity Debt Documents. The City will maintain, with responsible insurers, worker's compensation insurance and insurance against public liability and property damage to the extent reasonably necessary to protect the interests of the City, the Authority, the Trustee and the Owners of the Bonds. Any policy of insurance required under this Section 5.4 may be maintained as part of or in conjunction with any other insurance coverage carried by the City, and may be maintained in whole or in part in the form of self-insurance by the City or in the form of the participation by the City in a joint powers agency or other program providing pooled insurance. SECTION 5.5. Records and Accounts. The City will keep proper books of record and accounts of the Water System in which complete and correct entries shall be made of all transactions relating to the Water System. Said books shall, upon prior request, be subject to the reasonable inspection of the Bond Insurer and the Owners of not less than 10% of the Outstanding Bonds, or their representatives authorized in writing, upon not less than 2 Business Days' prior notice to the City. The City will cause the books and accounts of the Water System to be audited annually by an Independent Accountant not more than 9 months after the close of each Fiscal Year, and shall make a copy of such report available for inspection by the Bond Insurer and the Bond Owners at the office of the City and at the Trust Office of the Trustee. Such report may be part of a combined financial audit or report covering all or part of the City's finances. SECTION 5.6. Rates and Charges. The City will fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Water System during each Fiscal Year, which are at least sufficient, after making allowances for contingencies and error in the estimates, to yield Gross Revenues sufficient to pay the following amounts in the following order of priority: (a) All Operation and Maintenance Costs estimated by the City to become due and payable in such Fiscal Year; -16- (b) All Installment Payments and all payments of principal of and interest on any Parity Debt as they become due and payable during such Fiscal Year, without preference or priority; (c) All amounts, if any, required to restore the balance in the Reserve Fund to the full amount of the Reserve Requirement; and (d) All payments required to meet any other obligations of the City which are charges, liens, encumbrances upon, or which are otherwise payable from, the Gross Revenues or the Net Revenues during such Fiscal Year. In addition, the City will fix, prescribe, revise and collect rates, fees and charges for the services and facilities furnished by the Water System during each Fiscal Year which are sufficient to yield Net Revenues which are at least equal to 120% of the amount described in the preceding clause (b) for such Fiscal Year. SECTION 5.7. Superior and Subordinate Obligations. The City may not issue or incur any additional bonds or other obligations during the Term of this Agreement having any priority in payment of principal or interest out of the Gross Revenues or the Net Revenues over the Installment Payments. Nothing herein limits or affects the ability of the City to issue or incur (a) Parity Debt under Section 5.8, or (b) obligations which are either unsecured or which are secured by an interest in the Net Revenues which is junior and subordinate to the pledge of and lien upon the Net Revenues established hereunder. SECTION 5.8. Issuance of Parity Debt. Except for obligations incurred to prepay or discharge the Installment Payments or any Parity Debt, the City may not issue or incur any Parity Debt during the Term hereof unless: (a) No Event of Default has occurred and is continuing; (b) The Net Revenues (excluding any amounts derived from a Rate Stabilization Fund), calculated in accordance with sound accounting principles, as shown by the books of the City for the most recent completed Fiscal Year for which audited financial statements of the City are available, or for any more recent consecutive 12 month period selected by the City, in either case verified by an Independent Accountant or a Fiscal Consultant or shown in the audited financial statements of the City, plus (at the option of the City) any Additional Revenues, at least equal 120% of Maximum Annual Debt Service (taking into account the Parity Debt then proposed to be issued); and (c) Except in the case of Parity Debt representing a loan from the State or any agency of the State, or a loan from the federal government or any agency thereof, there shall be established from the proceeds of such Parity Debt a reserve fund for the security of such Parity Debt, in an amount equal to the lesser of (i) the maximum amount of debt service required to be paid by the City with respect to such Parity Debt during any Fiscal Year, or (ii) the maximum amount then permitted under the Tax Code; and (d) The trustee or fiscal agent for such Parity Debt is the same entity performing the functions of Trustee under the Indenture. -17- SECTION 5.9. Operation of Water System in Efficient and Economical Manner. The City covenants and agrees to operate the Water System in an efficient and economical manner and to operate, maintain and preserve the Water System in good repair and working order. SECTION 5.10. Tax Covenants. (a) Generally. The City shall not take any action or permit to be taken any action within its control which would cause or which, with the passage of time if not cured would cause, interest on the Bonds to become includable in gross income for federal income tax purposes. (b) Private Activity Bond Limitation. The City shall assure that the proceeds of the Bonds are not used in a manner which would cause the Bonds to become "private activity bonds" within the meaning of Section 141(a) of the Tax Code, or which would meet the private loan financing test of Section 141(c) of the Tax Code. (c) Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Tax Code. (d) No Arbitrage. The City shall not take, or permit or suffer to be taken by the Trustee or otherwise, any action with respect to the Bond proceeds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken on the Closing Date would have caused the Bonds to be "arbitrage bonds" within the meaning of Section 148(a) of the Tax Code. (e) Rebate Requirement. The City will calculate or cause to be calculated all amounts of excess investment earnings with respect to the Bonds which are required to be rebated to the United States of America under Section 148(0 of the Tax Code, at the times and in the manner required under the Tax Code. The City will pay when due an amount equal to excess investment earnings to the United States of America in such amounts, at such times and in such manner as may be required under the Tax Code, such payments to be made from Gross Revenues or any other source of legally available funds of the City. The City will keep or cause to be kept, and retain or cause to be retained for a period of 6 years following the retirement of the Bonds, records of the determinations made under this subsection (e). The Authority has no duty or responsibility to monitor or ensure compliance by the City with its obligations under this subsection (e). (f) Maintenance of Tax-Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the date of issuance of the Bonds. SECTION 5.11. Continuing Disclosure. The City hereby covenants and agrees that it will execute and deliver the Continuing Disclosure Certificate on the Closing Date, and that it will comply with and carry out all of the provisions of the Continuing Disclosure -18- Certificate and provide to the Bond Insurer a copy of any materials disseminated by the City in compliance therewith. Notwithstanding any other provision of this Agreement, failure of the City to comply with the Continuing Disclosure Certificate will not constitute an Event of Default hereunder; provided, however, that any Participating Underwriter (as such term is defined in the Continuing Disclosure Certificate) or any Owner or beneficial owner of the Bonds may take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the City to comply with its obligations under this Section 5.11. SECTION 5.12. Assignment and Amendment Hereof. This Agreement may not be assigned by the City in whole or in part. This Agreement may be amended by the City and the Authority, but only (a) for the purpose of providing for the issuance of any Parity Debt under and in accordance with Section 5.8, or (b) with the prior written consent of the Bond Insurer but without the consent of any Bond Owners, to the extent permitted by law but only for any one or more of the following purposes: (i) to add to the covenants and agreements of the City contained in this Agreement, other covenants and agreements hereafter to be observed, to pledge or assign additional security for the Installment Payments, or to surrender any right or power herein reserved to or conferred upon the City; (ii) to cure any ambiguity, inconsistency or omission, or correct any defective provision, contained in this Indenture, or in any other respect whatsoever, as the City may deem necessary or desirable, provided that such modification or amendment does not materially adversely affect the interests of the Bond Owners in the opinion of Bond Counsel filed with the City, the Authority, the Bond Insurer and the Trustee; to amend any provision hereof relating to the Tax Code, to any extent whatsoever but only if and to the extent such amendment will not adversely affect the exclusion from gross income of interest on any of the Bonds under the Tax Code, in the opinion of Bond Counsel filed with the City, the Authority, the Bond Insurer and the Trustee. SECTION 5.13. Information to Bond Insurer. The City shall cooperate with the Bond Insurer in all regards as may be required to comply with the terms and provisions of the Bond Insurance Policy and as required to enable the Trustee to receive payments under the Bond Insurance Policy. The City shall provide such information to the Bond Insurer from time to time as the Bond Insurer may reasonably request in writing. SECTION 5.14. Further Assurances. The City will execute and deliver any and all such further agreements, instruments, financing statements or other assurances as may be reasonably necessary or requested by the Authority, the Bond Insurer or the Trustee to carry out the intention or to facilitate the performance of this Agreement, including, without limitation, to perfect and continue the security interests herein intended to be created. -19- ARTICLE VI EVENTS OF DEFAULT SECTION 6.1. Events of Default Defined. The following are Events of Default: (a) Failure by the City to pay any Installment Payment when due and payable hereunder. (b) (c) (d) Failure by the City to pay any Additional Payment when due and payable hereunder, and the continuation of such failure for a period of 30 days. Failure by the City to observe and perform any covenant, condition or agreement on its part to be observed or performed, other than as referred to in the preceding clauses (a) or (b), for a period of 60 days after written notice specifying such failure and requesting that it be remedied has been given to the City by the Authority, the Bond Insurer or the Trustee; provided, however, that if the City notifies the Authority and the Trustee that in its reasonable opinion the failure stated in the notice can be corrected, but not within such 60-day period, such failure will not constitute an event of default hereunder if the City commences to cure such failure within such 60 day period and thereafter diligently and in good faith cures the failure in a reasonable period of time. The filing by the City of a voluntary petition in bankruptcy, or failure by the City promptly to lift any execution, garnishment or attachment, or adjudication of the City as a bankrupt, or assignment by the City for the benefit of creditors, or the entry by the City into an agreement of composition with creditors, or the approval by a court of competent jurisdiction of a petition applicable to the City in any proceedings instituted under the provisions of the Federal Bankruptcy Code, as amended, or under any similar acts which may hereafter be enacted. (e) The occurrence of any event defined to be an event of default under the contract authorizing the Prior State Loan, or under any Parity Debt Documents. For purposes of determining whether any Event of Default has occurred under and as described in the preceding clause (a), no effect will be given to payments made by the Bond Insurer under the Bond Insurance Policy. SECTION 6.2. Remedies on Default. Whenever any Event of Default has occurred and is continuing, the Trustee as assignee of the Authority has the right, at its option and without any further demand or notice, to take any one or more of the following actions: (a) Declare all principal components of the unpaid Installment Payments, together with accrued interest thereon at the Overdue Rate from the immediately preceding Interest Payment Date on which payment was made, to be immediately due and payable, whereupon the same shall -20- immediately become due and payable. Notwithstanding the foregoing provisions of this subsection (a), however, if, at any time after the principal components of the unpaid Installment Payments have been so declared due and payable under this subsection (a), and before any judgment or decree for the payment of the moneys due has been obtained or entered, the City deposits with the Trustee a sum sufficient to pay all principal components of the Installment Payments coming due prior to such declaration and all matured interest components (if any) of the Installment Payments, with interest on such overdue principal and interest components calculated at the Overdue Rate, and the reasonable expenses of the Trustee (including any fees and expenses of its attorneys), and any and all other defaults known to the Trustee (other than in the payment of the principal and interest components of the Installment Payments due and payable solely by reason of such declaration) have been made good, then, and in every such case, the Trustee will rescind and annul such declaration and its consequences. However, no such rescission and annulment extends to or affects any subsequent default, or impairs or exhausts any right or power consequent thereon. As provided in Section 6.6, the Trustee is required to exercise the remedies provided herein in accordance with the Indenture. (b) Take whatever action at law or in equity may appear necessary or desirable to collect the Installment Payments then due or thereafter to become due during the Term of this Agreement, or enforce performance and observance of any obligation, agreement or covenant of the City under this Agreement. (c) As a matter of right, in connection with the filing of a suit or other commencement of judicial proceedings to enforce the rights of the Trustee and the Bond Owners hereunder, cause the appointment of a receiver or receivers of the Gross Revenues and other amounts pledged hereunder, with such powers as the court making such appointment may confer. SECTION 6.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority is intended to be exclusive and every such remedy will be cumulative and in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default impairs any such right or power or will be construed to be a waiver thereof. Each right and power may be exercised from time to time and as often as the Trustee deems expedient. In order to entitle the Authority to exercise any remedy reserved to it in this Article VI, it is not necessary to give any notice, other than such notice as may be required in this Article VI or by law. SECTION 6.4. Agreement to Pay Attorneys' Fees and Expenses. If either party to this Agreement defaults under any of the provisions hereof and the nondefaulting party, the Trustee or the Owner of any Bonds employs attorneys or incurs other expenses for the collection of moneys or the enforcement or performance or observance of any obligation or agreement on the part of the defaulting party herein contained, the defaulting party agrees that it will on demand therefor pay to the nondefaulting party, the Trustee or such Owner, as the case may be, the reasonable fees of such attorneys and such other -21- expenses so incurred. The provisions of this Section 6.4 survive the expiration of the Term of this Agreement. SECTION 6.5. No Additional Waiver Implied by One Waiver. If any agreement herein is breached by either party and is thereafter waived by the other party, such waiver is limited to the particular breach so waived and does not waive any other breach. SECTION 6.6. Trustee, the Bond Insurer and Bond Owners to Exercise Rights. Such rights and remedies as are given to the Authority under this Article VI have been assigned by the Authority to the Trustee under the Indenture, to which assignment the City hereby consents. The Trustee, the Bond Insurer and the Owners of the Bonds will exercise such rights and remedies as provided in the Indenture. ARTICLE VII PREPAYMENT OF INSTALLMENT PAYMENTS SECTION 7.1. Security Deposit. Notwithstanding any other provision hereof, the City may on any date secure the payment of Installment Payments, in whole or in part, by irrevocably depositing with the Trustee an amount of cash which, together with other available amounts, is either (a) sufficient to pay all such Installment Payments, including the principal and interest components thereof, when due under Section 4.4(a), or (b) invested in whole or in part in non-callable Federal Securities in such amount as will, in the opinion of an Independent Accountant (which opinion is addressed and delivered to the Trustee and the Bond Insurer), together with interest to accrue thereon and together with any cash which is so deposited, be fully sufficient to pay all such Installment Payments when due under Section 4.4(a) or when due on any optional prepayment date under Section 7.2, as the City instructs at the time of said deposit. If the City posts a security deposit under this Section for the payment of all remaining Installment Payments, all obligations of the City hereunder, and the pledge of Net Revenues and all other security provided by this Agreement for said obligations, will cease and terminate, excepting only the obligation of the City to make, or cause to be made, all Installment Payments from such security deposit. Said security deposit constitutes a special fund for the payment of such Installment Payments in accordance with the provisions hereof. Payments made by the Bond Insurer under the Bond Insurance Policy will not be considered in determining whether the City has paid and discharged any or all of the Installment Payments under the preceding provisions of this Section 7.1. SECTION 7.2. Optional Prepayment. The City may exercise its option to prepay the principal components of the Installment Payments in whole or in part on any date on which the Bonds are subject to optional redemption under Section 4.01(a) of the Indenture. Such option shall be exercised by payment of a prepayment price equal to the sum of (a) the aggregate principal components of the Installment Payments to be prepaid, (b) the interest component of the Installment Payment required to be paid on or accrued to such date, and (c) the premium (if any) then required to be paid upon the corresponding redemption of the Bonds under Section 4.01(a) of the Indenture. If the City prepays the Installment Payments in part but not in whole, the principal components will be prepaid -22- among such maturities and in such integral multiples of $5,000 as the City designates in written notice to the Trustee. SECTION 7.3. Credit for Amounts on Deposit. If the City prepays the Installment Payments in full under this Article VII, such that the Indenture is discharged by its terms, and upon payment in full of all Additional Payments and other amounts then due and payable hereunder, all available amounts then on deposit in the funds and accounts established under this Agreement will be credited towards the amounts then required to be so prepaid. ARTICLE VIII MISCELLANEOUS SECTION 8.1. Investment of Funds. All moneys in any of the funds or accounts established with the Trustee under this Agreement shall be invested by the Trustee solely in Permitted Investments under the written direction of the City. In the absence of any such direction from the City, the Trustee shall invest any such moneys in clause (i) of the definition of Permitted Investments. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account. All interest or gain derived from the investment of amounts in any of the funds or accounts established hereunder shall be deposited in the fund or account from which such investment was made. For purposes of acquiring any investments hereunder, the Trustee may commingle funds held by it hereunder. The Trustee may (but is not obligated to) act as principal or agent in the acquisition or disposition of any investment. The Trustee shall incur no liability for losses arising from any investments made under this Section. The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City specifically waives receipt of such confirmations to the extent permitted by law. The Trustee will furnish the City periodic transaction statements which include detail for all investment transactions made by the Trustee hereunder; provided that the Trustee is not obligated to provide an accounting for any fund or account that (a) has a balance of $0.00 and (b) has not had any activity since the last reporting date. The Trustee or any of its affiliates may act as sponsor, advisor or manager in connection with any investments made by the Trustee hereunder. All Permitted Investments acquired under this Section 8.1 shall be valued in accordance with the provisions of Section 4.05 of the Indenture. SECTION 8.2. Notices. Any notice, request, complaint, demand or other communication under this Agreement must be given by first class mail or personal delivery to the party entitled thereto at its address set forth below, or by telecopier or other form of telecommunication, at its number set forth below. Notice is effective either (a) upon transmission by fax or other form of telecommunication, (b) upon actual receipt after deposit in the United States of America mail, postage prepaid, or (c) in the case of personal delivery to any person, upon actual receipt. The Authority, the City, the Trustee -23- or the Bond Insurer may, by written notice to the other parties, from time to time modify the address or number to which communications are to be given hereunder. If to the Authority: Association of Bay Area Governments 101 Eighth Street Oakland, California 94607 Attention: Public Finance Director Fax: (510) 464-8468 If to the City: City of Ukiah 300 Seminary Avenue Ukiah, California 95482 Attention: City Manager Fax: (707) 463-6204 If to the Trustee: Wells Fargo Bank, National Association 555 Montgomery Street, 10th Floor San Francisco, California 94111 Attention: Corporate Trust Services Fax: (415) 395-9064 If to the Bond Insurer: XL Capital Assurance, Inc. 1221 Avenue of the Americas New York, NY 10020 Fax: (212) 944-3777 Attention: Surveillance SECTION 8.3. Governing Law. This Agreement is construed in accordance with and governed by the laws of the State. SECTION 8.4. Binding Effect. This Agreement inures to the benefit of and is binding on the Authority, the City, the Bond Insurer and their respective successors and assigns, subject to the limitations contained herein. SECTION 8.5. Severability of Invafid Provisions. If any one or more of the provisions contained in this Agreement is for any reason held invalid, illegal or unenforceable in any respect, then such provision or provisions will be deemed severable from the remaining provisions contained in this Agreement and such invalidity, illegality or unenforceability will not affect any other provision of this Agreement, and this Agreement will be construed as if such invalid or illegal or unenforceable provision had never been contained herein. The Authority and the City each hereby declares that it would have entered into this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof irrespective of the fact that any one or more Sections, paragraphs, sentences, clauses or phrases of this Agreement may be held illegal, invalid or unenforceable. SECTION 8.6. Article and Section Headings and References. The headings or titles of the several Articles and Sections hereof, and any table of contents appended to copies hereof, are solely for convenience of reference and do not affect the meaning, construction or effect of this Agreement. All references herein to "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement; the words "herein," "hereof," "hereby," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section -24- or subdivision hereof; and words of the masculine gender shall mean and include words of the feminine and neuter genders. SECTION 8.7. Payment on Non-Business Days. Whenever any payment is required to be made hereunder on a day which is not a Business Day, such payment will be made on the immediate preceding Business Day. SECTION 8.8. Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which is an original and all of which together constitute one and the same instrument. SECTION 8.9. Waiver of Personal Liability. No member of the City Council, officer, agent or employee of the City has any individual or personal liability for the payment of Installment Payments or Additional Payments or be subject to any personal liability or accountability by reason of this Agreement. Nothing herein relieves any such member of the City Council, officer, agent or employee from the performance of any official duty provided by law or by this Agreement. SECTION 8.10. Bond Insurer as Third Party Beneficiary. The Bond Insurer is hereby made a third party beneficiaries hereof and is entitled to the benefits of this Agreement with the same force and effect as if the Bond Insurer were a party hereto. -25- IN WITNESS WHEREOF, the Authority, the Trustee and the City have caused this Agreement to be executed in their respective names by their duly authorized officers, all as of the date first above written. ASSOCIATION OF BAY AREA GOVERNMENTS, as Seller By Joseph K. Chan, Finance Director CITY OF UKIAH, as Purchaser By Mayor A"FI'EST: By. City Clerk WELLS FARGO BANK, N.A., as Trustee By Authorized Officer APPENDIX A SCHEDULE OF INSTALLMENT PAYMENTS Installment Principal Interest Total Payment Date(1) Component Component Payment February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February 1 August 1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 2OO6 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 1, 2020 2020 1,2021 2021 1, 2022 2022 1, 2023 2023 A-1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 February August 1 1 2024 2O24 1 2025 2025 I 2026 2026 1 2027 2027 1 2028 2028 1 2029 2029 1 2030 2030 (1) Installment Payment Dates are the third (3rd) Business Day immediately preceding each Interest Payment Date shown in the table. A-2 APPENDIX B DESCRIPTION OF PROJECT The Project consists of the construction of various water storage and distribution facilities, installing the related pumping, distribution and support systems, and retrofitting the Water Treatment Plant, particularly its reservoir. The improvements are intended to supply storage for fire, drought and other non-standard situations in which the existing facilities and capacity may prove inadequate. B-1 ITEM NO. 10A DATE: August 17, 2005 AGENDA SUMMARY REPORT SUBJECT: DISCUSSION OF POSSIBLE IMPROVEMENTS TO ALEX R. THOMAS PLAZA Summary During the recent budget hearings, the City Council discussed landscape improvements and requested that staff return at a later date to discuss other potential improvements to the Alex R. Thomas Plaza. In order for staff to develop a comprehensive approach to renovating the Plaza, the following report discusses an array of improvement options for Council's consideration. Since the removal of the fountain, various improvements have been considered, but implemented on a limited basis due to budget constraints. However, the City has been successful in enhancing park usage through the programming of community events. Most recently, the Park hosts both the Tuesday and Saturday Farmer's Market, the Moonlight Movie Madness Series and Frank's Hot Dogs. Other annual events include the Ukiah Country PumpkinFest, Early Iron Car Show, Granite Chili Cook- Off, Cinco de Mayo, Pastels in the Plaza, and Small Town Christmas/Truckers Light Parade. All of these activities attract routine usage and help to create the traditional 'q'own Square" presence. While increased programming of the Plaza has deterred vandalism, it has not been eliminated. Thus, any potential elements considered for installation should be vandal resistant with regard to design and type of build material. In addition, Council may wish to consider the reinstallation of a video surveillance/monitoring system to discourage illegal activities. In an effort to assist with the discussion, staff has identified the following areas of improvement that Council may wish to consider. In preparing the list, staff was assisted by members of the Ukiah Main Street Program (UMSP). The UMSP has considerable experience with community improvement projects and is involved with event planning at the Plaza. (Continued on Page 2) RECOMMENDED ACTION: After discussion of the potential improvements to Alex R. Thomas Jr., Plaza, provide direction to staff. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Judy Pruden and Joy Beeler of the Ukiah Main Street Program City Council Sage Sangiacomo, Community/General Services Director Candace Horsley, City Manager N/A Candace Horsley, City M~nager Landscape Planter Improvements Throughout the Plaza, a number of planter areas have been severely abused and require replanting. Most recently, the Park's Division experimented with the planting of a limited set of roses around the sundial. Specifically, the carpet and rambler varieties were used. These varieties of roses are hardy and withstood a lot of abuse at this location. In addition, the small roses produced by these varieties provide exquisite color and are not conducive for picking/display. Staff believes that these roses can be utilized to provide a strong vandal resistant foundation to a revised landscape plan for the Plaza. Staff also recommends the use of natural grasses and other scrubs that are hardy and recover quickly from abuse. The costs associated with implementing a revised landscape plan would be in irrigation and plants. The cost associated with design and installation of the plants could mostly likely be deferred with the use of volunteers and Park staff. Hardscape Improvements In between the pavilion and the center of the Plaza, there is a small 3 x 15 foot planter (Image #1 ) that obstructs pedestrian traffic. Rather than replanting, staff recommends extending the hardscape with either cement or pavers. Small planters would be retained on each side of the new walkway to provide some visual appeal. Image #1' Recommended Location for Hardscape The large concrete area in the center of the Plaza left vacant with the removal of the fountain (Image #2) and the picnic area in the southeast corner of the Plaza (Image #3) may be visually improved with the use of painted/stamped or engraved concrete designs. One suggestion is to incorporate an interactive labyrinth or geometric design such as the examples depicted in Image #4 and #5. This improvement for the center of the Plaza may not be option if Council chooses to replacement the water feature at this location. Replacement fountains are discussed later in this report. Image #2: Center of the Plaza Image #3: Picnic Area in the Southeast Corner Image #4: Interactive Concrete Design Image #5: Geometric Design Shade Previous Councils have expressed the desire to increase the amount of shade in the Plaza. Since its original installation, a number of additional shade trees have been added to the landscape. However, it will take at least another 5 years for these trees to mature and produce usable shade. In an effort to maintain open space for gatherings and special events within the Plaza, additional tree plantings should be limited to the outer perimeter of the park. Up to six trees are recommended for installation along the perimeter, including the picnic area in the southeast corner of the park. Shade arbors over the four perimeter bench areas in the park (Image #6) have also been considered. An example of an arbor is shown in Image #7. The rounded architecture of the arbor fits well with the overall layout of the plaza. Steel is recommended over the use of wood for construction. While it is initially more expensive than wood, steel would be less susceptible to vandalism and would require less maintenance. Vines planted along the base of the arbors would grow quickly and provide shade during the summer. Thermostat activated water misters could easily be added to the arbors as an additional feature to help provide relief from the hot summer days. Image #6: Existing Park Benches Image #7: Arbor Example The stage is the focal point for most activities schedule in the Plaza (Image #8). A closed cover canopy over the stage would provide the necessary protection from adverse weather conditions. Currently, most events have to bring in portable make shift canopies to protect props, instruments, and sound equipment. In addition, a well designed cover will provide a visual feature that would further enhance the traditional "Town Square" presence. Image #9 depicts an example of a band shell that could be modified with site appropriate design elements like round columns instead of the square. Image #8: Existing Stage at the Plaza Image #9: Example of a Band Shell Table and Chairs Originally, the southeast corner of the Plaza (Image # 10) had a number of concrete picnic tables. Like the fountain, the concrete design of the tables was ideal for bikes and skateboards to grind. Ultimately, they had to be removed. If new tables are considered, staff recommends powder coated, surfaced mounted, metal mesh tables as shown in Image #11. This type of table is less susceptible to graffiti and can be removed quickly if vandalism becomes an issue. Image #10: Picnic Area in Southeast Corner Image #11' Example of Picnic Table Portable folding tables and chairs are utilized during special events and provide a great deal of flexibility. In addition, they are put into storage when not in use and thus, are not susceptible to ongoing vandalism. The tables and chairs currently in use at the Plaza were taken out of service from the Todd Grove Room and are old and failing. In order to support continued use, new folding tables and chairs will have to be purchased. Kiosk Given the number of community events at the site, a kiosk may be another feature to consider. The concept for a kiosk is that event and other community information could be posted and than viewed. If Council wants to pursue this option, there are many types of kiosks that can considered. An example of a kiosk is shown in Image #12. Image #12: Kiosk Example Fountain Since the removal of the original fountain, there has been considerable discussion with regard to a replacement water feature. In 2001, an ad-hoc committee of the Council was formed to explore possible options. After receiving considerable input from the public and event organizers, the committee concluded that a large tiered fountain would obstruct a person's view of the stage and that the center region of the park should be retained as a gathering place. Various other water elements were considered including a water wall and a zero depth water feature in the center that could be shutoff during large events. Examples of interactive/zero depth water fountains are pictured in Image #13 and #14. While there has been favorable desire in the past to reincorporate a water feature at the Plaza, costs have remained the single prohibiting factor. Specifically, staff has brought this option back to determine if Council would like staff to pursue options for design and estimates on construction and ongoing maintenance costs. Image #13: Interactive Fountain Example Image #14: Zero Depth Fountain Example Conclusion Once again, the improvements listed in this report are supplied as a matter of discussion only. Staff anticipates that the incorporation of improvements at the Plaza will continue to be an evolving process and desired improvements will need to be phased in based upon cost and staff availability. Staff would like direction with regard to the type and priority of improvements prior to spending time on design details and cost estimates. Should the Council wish to explore any of the improvements listed in the report, staff will proceed with securing bids/cost estimates and return to the Council for project approval and a budget amendment. AGENDA SUMMARY ITEM NO. 1 Ob DATE: August 17, 2005 REPORT SUBJECT: ADOPTION OF RESOLUTION MAKING APPOINTMENTS TO THE PARKS, RECREATION, AND GOLF COMMISSION News Releases were issued on June 6, 2005, June 29, 2005, and July 25, 2005 (extending the deadline) soliciting applicants to fill expired terms on the Parks, Recreation, and Golf Commission (4). As of the August 9, 2005 deadline, applications were received from the following individuals: Julie Dunn (Women's Golf Club), Don Rones (Men's Golf Club), John Graft, and Michael Kisslinger. (Continued on Page 2) RECOMMENDED ACTION: Adopt Resolution making appointments to the Design Review Board and to the Parks, Recreation, and Golf Commission. ALTERNATIVE COUNCIL POLICY OPTIONS: Direct staff to re-advertise for the vacancies and/or reschedule appointments accordingly. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Applicants notified of interview Ukiah City Council , Marie Ulvila, City Clerk ~.,'~l~...,c'~?.l ~~,~/c..~ Candace Horsley, City Manager 1. Resolution making appointments to the Parks, Recreation, and Golf Commission 2. News Releases announcing vacancies 3. Terms of City of Ukiah Boards and Commissions 4. Resolution No. 2001-61 - Establishing Procedures for Appointment 5. Applications for appointment APPROVED: Candace Horsley, City M~ager ASR: Commission Appointments August 17, 2005-Parks Page 1 o~: 3 The Parks, Recreation, and golf Commission has four vacancies; one for a representative from the Men's Golf Club, one representative from the Women's Golf Club, and two residents living within the Sphere of Influence. Interviews are scheduled to begin at 5:00 p.m. on August 17, 2005 for the current vacancies on the Parks, Recreation, and Golf Commission. Please. note that Mr. Kisslinger, candidate for appointment to the Parks, Recreation, and Golf Commission, has notified staff that he will be unable to participate in an interview on August 17th as he will be out of town on vacation that week. He sends his apologies and hopes that Council will consider his application for appointment to that Commission. It is Council's policy that the nominations for Commission vacancies are rotated among Councilmembers. The responsibility for the initial nomination is Councilmember McCowen. Page 2 of 3 and RESOLUTION NO. 2006- &TTA~HI~IENT ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH MAKING APPOINTMENTS TO THE PARKS, RECREATION, AND GOLF COMMISSION WHEREAS, the annual expiration of terms for City Commissions occurred on June 30, 2005; WHEREAS, the vacancies were duly advertised until the close of applications on June 6, June 29, and August 9, 2005, with submitted applications timely received and submitted to Council for consideration; and WHEREAS, the City Council previously requested Parks, Recreation, and Golf Commission applicants who were interviewed on August 17, 2005, to be forwarded for consideration at this time. NOW, THEREFORE, BE IT RESOLVED, that the Ukiah City Council approved the nominations submitted per procedures outlined in Resolution No. 2001-61, and do hereby appoint the following persons to terms on the following Commissions: PARKS, RECREATION, AND GOLF COMMISSION to fill a term to June 30, 2008; to fill a term to June 30, 2008; to fill a term to June 30, 2008; to fill a term to June 30, 2008; to fill a term to June 30, 2008; PASSED AND ADOPTED this 17th day of August, 2005, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Marie Ulvila, City Clerk Mark Ashiku, Mayor Page 3 of 3 NEWS RELEASE DATE: FOR RELEASE: SUBJECT: CONTACT: OPPORTUNITY TO SERVE YOUR COMMUNITY July 25, 2005 Immediately Vacancies on City of Ukiah Commissions Marie Ulvila, City Clerk, 463-6217 UKIAH, CA. - The City of Ukiah announces there will be vacancies occurring on the Design Review Board, and the Parks, Recreation, and Golf Commission effective June 30, 2005. Any qualified individual, who would like to make a difference in their community and is interested in serving as a volunteer for the terms as outlined below, may apply for these upcoming vacancies. Current Commissioners may be eliqible to real)ply. COMMISSION NUMBER OF LENGTH OF RESIDENCY REQUIREMENT VACANCIES TERM Design Review Board 5 4 Years 4-Reside or own real property or business within the City Limits of Ukiah 1-Represent the community at large with no ownership or residence requirement Parks, Recreation, and Golf 4 3 Years 2 -*Reside within the Sphere of Commission Influence 1- Women's Golf Club representative 1- Men's Golf Club representative ~l~__l_ .... ~m l_--~! m . . . (Sphere of Influence boundaries are ridge top to ridge top, Highway 20 to Burke Hill Road) Applications are located at the reception counter in the administration wing of the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, or call 463-6217 for an application to be mailed, faxed, or emailed to you. The submittal deadline has been extended to Tuesday, August 9, 2005, at noon. Interviews for selected commissions will be held and appointments considered at a regular City Council meeting in i ~¢¢--~--~'.?! AL~.~t 2005. ~~,/ Marie Ulvila, City Clerk 300 SEMINARY AVENUE UKIAH, CA 95482-5400 TERMS OF CITY OF UKIAH BOARDS AND COMMISSION MEMBERS As of August 4, 2005 Date Appointed Investment Oversight Committee - Public Member 2-year term - (Crane) Mark Ashiku - Mayor Mari Rodin - City Councilmember Candace Horsley - City Manager Mike McCann - Finance Director Allen Carter- City Treasurer, Chair Monte Hill- Public Member 6/30/04 6/30/06 Present Term Expires Library Advisory Commission - City Representative Councilmember Philip Baldwin Parks, Recreation~ and Golf Commission - 3-year term** - (McCowen) Shirley Ann Dietrich - Women's Golf Club **Melody Ann Valles - Public Member **Fredrick Koeppel- Public Member -_Men's Golf Club Chamise Cubbison Robert Beltrami, Interim Chairman Jonah Freedman 7/17/02 6/30/O5 7/17/02 6/30/05 7/17/02 6/30/05 6/30/07 7/7/04 6/30/07 7/7/04 6/30/07 9/1/04 6/30/07 ** Two Commissioners may reside within the Sphere of Influence Paths, Open Space, & Creeks Commission (POSCC): (McCowen) Date Appointed Howell Hawkes *Fred Koeppel Dan Holbrook (unexpired term of Bill Randolph) James Connerton *Lindsay Leland Term Expires 5/21/03 6/30/06 5/21/03 6/30/06 8/6/05 6/30/06 8/3/05 6/30/08 8/3/05 6/30/08 ** Two Commissioners may reside within the Sphere of Influence *Planninq Commission-3 year term - (Mayor Ashiku) Mike Whetzel Ken Anderson Judy Pruden Kevin Jennings, Vice-Chairman James Mulheren, Chairman Date Appointed Term Expires 1/05/05 11/7/06 1/05/05 11/7/06 1/05/05 11/2008 1/05/05 11/7/06 1/05/05 11/2008 Traffic Engineering Committee - (McCowen) Benjamin Kageyama (Public Rep.), Chairman *Steve Turner (Public Rep.) *Bruce Richard (MTA Rep.) Risk Manger- Patsy Archibald City Engineer- Diana Steele Deputy Public Works Director - Rick Seanor Police Captain- Dan Walker Associate Planner- Dave Lohse Superintendent of Public Works - Jerry Whitaker A~oointment 10/06/99 2/4/O4 Term Expires AI-t'ACHMENT ~ Terms: August 4, 2005 Page 2 of 2 AI-rACHMENT~ RESOLUTION NO. 2001-61 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING PROCEDURE FOR FILLING"' VACANCIES ON CITY COMMISSIONS AND BOARDS. WHEREAS, 1. Ukiah City Code §1151 provides that members of the Planning Commission shall be appointed in accordance with a procedure established by resolution 'of the City Council; and 2. The City Council adopted a procedure for filling vacancies on the City's boards and commissions, including the Planning Commission;. and 3. The. City Council has determined that using a uniform procedure will insure fair and consistent treatment of candidates and Councilmembers; 4. The City Council has determined to amend its procedures for appointing commissioners; NOw, THEREFORE, BE IT RESOLVED that the City Council hereby adopts the following amended procedure for filling vacancies on the City's commissions and boards, including the Planning Commission. PROCEDURE FOR FILLING VACANCIES ON COMMISSIONS AND BOARDS The City Council shall fill vacancies on City boards and commissions, using the · following procedure. ,1. Applicant pool. The City Council shall develop an available pool of candidates for a vacancy by advertising the vacancy at least once in a newspaper of general circulation in Ukiah not less than thirty (30) days prior to the council meeting at which the vacancy is to be filled. The advertisement shall specify a deadline for submitting applications. All completed applications received prior, to the deadline shall be included in the pool of available applicants, provided the applicant: a. meets the minimum qualifications for the position as established in the aPplicable Ukiah City Code section or resolution, establishing the commission or board; and b. participates in a personal interview, if the City Council conducts personal interviews for the position. The City Council has determined that interviews will be conducted for applicants of the Planning Commission, the Parks, Recreation and Goff Commission, and the Airport Commission. An application shall be deemed complete when signed by the applicant. Applications included in an available poOl may be used as a source of nominations for a period of one (1) year from the application deadline. 2. Exceptions. The following shall be considered for appointment or reappointment to a commission or board without submitting a written application: a. Incumbents seeking reappointment for an additional term; b. Elected officials seeking appointment in their capacity as elected officials; c. City staff seeking appointment in their capacity as City staff; de All appointees, except. 'public re. embers, on the Investment Oversight' Commission, Traffic Engineering Committee, Cultural Arts Advisory Board and the Disaster Board; e. 'City Council members, including the Mayor, appointed in their capacity as City Council members; and f. Appointments to the Civil Service Board. Any such exempt applicants shall be considered for appointment, if they submit a written request for consideration within 10 days of the date the appointment is made. 3. Nominations. Each Councilmember, including the Mayor, shall have the right to nominate a candidate from the available pool of candidates. at The right to plaCe a name before the City Council for consideration shall rotate among the Councilmembers based' on seniority with the most senior Councilrnember going first. b. The Council shall vote on each nomination as it is made. Gl A Councilmember's right to make a nomination shall terminate and the right to nominate candidates shall rotate t° the next most senior Councilmember, when a Councilmember's nomination is approved by a majority vote of the Councilmembers present or the Counciimember agrees to pass the nomination to the next most senior Councilmember, whichever occurs first. d. This process for 'rotating the right to nominate candidates among Councilmembers to fill vacancies shall be followed for each separate commission or board. 1. -The City Clerk shall maintain a record of the last Councilmember to make a nomination for each commission or board. 2. When another vacancy must be filled on that commission or board, the next Councilmember in line to make nominations for that commission or board shall make the first nomination to fill the vacancy. PASSED AND ADOPTED this 6th day of June, 2001, by the following roll call vote: AYES: Councilmembers Larson, Smith, Baldwin, and Mayor Ashiku NOES' .Counciimember Libby ABSTAIN: None ABSENT: None ATTEST: Marie Ulvila, City Clerk &TTACHMENT ~ Date ("~, ~, ' CITY OF'UKIAH · APPLICATION FOR' APPOINTMENT PARKS, RECREATION & GOLF COMMISS -.. I am applying fo'r an appointment to the City of Ukiah's Parks, Recre 1.. Name 2: Residence Address "7 I-) /--~ t/4.- ¢2,~/c'.,"~.~'4.. Res. Phone 3. Busir~ess Address Bus. Phone 4. Employer -¢- '/~..¢_.~-/r~''"'''~ Job Title .E~- 'Employed Since 5..Howlong have you resided in Ukiah?'¢~ years; Mendocino County{45years; Calif.?. ~ r~ years 6. Please list community groups.or Organizations'you are affiliated with and indicate any offices held gt~~ ~ ~ ~..--~.- u Please answer the folloWing questions on separate sheets of paper and attach to application.. 7.' Why are you applying to serve on the City of Ukiah's Parks, Recreation and' Golf CommiSsion? .. 8. What is your understanding-of the purpose, role and responsibility of the Parks Recreation and Golf Commission? ' .. . . . 9. How do you believe your own skills, experience, expertise and 'perspectives will be beneficial to the work of the Parks, Recreation and Golf CommisSion? 10. What do· you believe is the 'single most important parks, recreation and golf issue facing our community? And why? ' 11. In your opinion what type or tyPes of parks development or recreational and golf programs . should the City encourage? 12. In your opinion what type or types of parks development or recreational and golf programs should the City discourage? ·' What kind of ideal community d°you envision for Ukiah? · Are there any other City Of Ukiah' Committees/COmmissions in which you are interested and on which you would be willing to serve? . . ~lease return this apPlication and· attachments to the City Clerk flY'Noon o 005. Thank you for your interest in serving the City of Ukiah. - 13. Signature· /-~. '/'7-~ ~ '/, ·Date City of Ukiah, 300 Seminary Avenue, Ukiah, CA 95482-5400 Phone' 463-6217 Fax' 463-6204 Forms: Parks, Recreation & Golf Commission Application Revised: 6/6/05 .! August 10,2005 To Whom It May Concern: The Ukiah Men's Club bo~d of directors has unanimously chosen Don Rones Sr. to fill the empty chair on the Parks and Recreation Commission. We believe with Don's background on the golf' course and as a former mayor he would bring a unique insight to this ¢omnaission. Sincerely, Erie Barkhurst President CITY OF UKIAH APPLICATION FOR APPOINTMENT PARKS, RECREATION & GOLF COMMISSION iJUL-5 2O05 CITY OF UKIAH CITY CLERK'S DEPARTMENT ! am applying for an appointment to the-City of Ukiah's Parks, Recreation & Golf Commission. 1. Name '~ Lc t i ¢_~ '~ o w ~ 2. Residence Address ~'- ~ q'C__.___~.OL~. )~\16 Res. Phone_f-~ 3, Business Address ¢,0. ~o Y t %G I [ ~ ~.t ~ ~ Bus. Phon~ 4, Empl0yer,_~~ ~~ ~~%t~i~.G~ _~0b Title O~_~r _Empioy~ Since~ . . 5. How long have you reslded in Ukiah?]~__years; Mendocino County~ years; Calif;? ~.___years 6. Pleas~ list community .groups or organizations you are affiliated· with and indicate, any offices Please answer the following questions on separate sheets .of paper and a~ach to application. ..7,:.. Why:are,you;applying re,some On the'C~t:¢.::b.¢ U'~iah,S'Parks;."Re:~eati0n-and GOlf"co~mis~i'on? .... , ..................... .~,, .. ,,, .8:,' :".'.?,~.~&~ y6'~r 'bkd~rst~d'i~'g ~ ~he' p;~ose, :.:~le 'a~'d' ;;sponsibility of the' Parks, Recreation and ~o~ uommissionv H0w'do.,, : y0u_ .bel'isve' '. _ you r;.O¢)ffcskil'l§,:. ., .~xp":~'q'8'~. nco,", ex. ertise me work of the Parl~s;'"Reereatibn '~nd"~if Co~.~i~io.~:.and. ... pe.rspectives,....will...: . . .. .. : .,....be:beneficial: . ~ to 10. 11, 12, 13. 14. What do you believe is the single most important parks, recreation, and golf issue facing our community? And why?' In your opinion what type or types of parks development or recreational and golf programs should the City encourage? ' In your opinion what type or types of parks development or recreational and golf programs should the City discourage? . What kind of ideal· community do you envision for Ukiah? Are there any other City of Uklah Commitlees/CornmiSSions in which you are interested and cn which you would be willing to serve? ~lease returnthis appli~bation.'~nd.'attachmentS~..to.the City Clerk by Noon on.June 28, 2005,. Thank you fo[.Youri;i'ntereS.t:]n'sef;~ii~g::,the;~Ci~ 6f.t)k. iah.-..:.::::~ .... ,.:.:~. :-,, ?~:' ., '.. ,~..~ ..... ~.,,~.: .-.~ .... ~ .... -. · t']:'i.;'::~../~-%':. :" '.' '. :"'.~;'~?'-~... .... . . ..................../' ~. ................. Signatur, e: ~.-:' ..~0~/,~,~::~.. ?,.:.,..' :,,. ,~:~':~:' ~.~{e?..~~:;...~:;'~'~,:..../,..Z.;o:o:~... .... :.:: :?.:...:~:..~-~:: .... .. · //, ............ - ............,. .'; ..... '-.,.~..i.' ~.:., .' :~ :'.: ..... ; .,.. -: City of Ukiah,,300 $~ml:na~ AV~'~.~;'. Ukiah,·' OA~9548~)',:5400' · ¢li'b'rie·: 46a;62~·?,',' Fax: .46'3~6]04 . . . . Forms?ar..k~, Recreation & Golf Commission Application Revised: 6/6/05 , . TO: CITY OF UKIAH RE: APPLICATION FOR APPOINTMENT TO PARKS, RECREATION & GOLF COMMISSION I, Julie Dunn am applying to serve on the City ofUkiah's Parks, Recreation and Golf Commission because I want to be involved in the process of keeping our city beautiful. and representing the Ukiah Women's Golf Club. My understanding of the purpose, role and responsibility is to provide input from the citizens ofUkiah, act as a liaison between the community and staff. My skills include managing my own business for 15 years, (Marketing Director for the Pear Tree Shopping Center, selling advertising for The Press Democrat) bookkeeping my husband's painting business for 30 years, serving on several community boards, committees and service clubs. I believe the most important issue facing our community is making the citizens understand what it costs to do business. The current golf rate structure has angered a lot of golfers, I believe the city had to do what it did, and pacifying those members is important. In my opinion the city should continue doing what they are doing with more public awareness of the cost of doing business. We have very beautiful parks. We have a good Golf Course. I think the city could organize more family events at both the Golf Course and Parks. In my opinion the city should discourage gang activity, loud music and vandalism at our parks and golf course. I envision Ukiah as a place to work and play on weekdays and weekends. I think the Parks, Recreation and Golf Department have done an excellent job in making that happen. I would like to see the County of Mendocino work together more with the city to benefit all residents of the valley. I would only be interested in serving on the Parks, Recreation and Golf Commission. Julie Dunn Ukiah Women's Golf Club c/o Shirley Dietrick, President · PO Box 21 Redwood Valley, CA 95470 City of Ukiah 300 Seminary Ave. Ukiah, CA 95482 TO WHOM IT MAY CONCERN; The Ukiah. women's Golf Club recommends Julie Dunn be appointed to the City of Ukiah Parks & Recreation Commission as the Women's Golf Club Representative. Shirley Dietrick, Presidem JUL 1 2 2005 CITY OF UK1AH CITY CLERK'S DEPARTMENT PARKS, RECREATION.& GOLF COMMISSIO1 2 - 2005 Date 9- /"- ~ ~ ' · CITY ~ CITYCL~RK'$ DEPARTMENT I am applying for an appointment to the City of Ukiah's Parks, Recreation'& Golf CommisSio-n'~- 2'. Residence Address .~//7' ~/r~.Z-~ '~~' ~~ ~ Res. Phone,, ~ ~ ~ /~ 3. Business Address ~~' ~. ~oa~ ~ -Bus. Phone ~ ~ ~~/~ 4. Employer, ~ ~0 .~- Job Title~d~ ~c~¢F'Employed Since,;~-J7-~ 5. How long have you resided in Ukiah? .y~ars; Mendocino County ~ears; Calif.?,~ years .. 6. Please list community groups or organizations you are affiliated with and indicate any offices Please answer the following questions on separate sheets of paper and aRach to application. 7. Why are you applying to se~e 0n the City of Ukiah's Parks, Recreation and Golf CommisSion? 8. What is your understanding of the purpose, role and responsibility of the Parks, Recreation and Golf Commission? 9. How do you believe.your own skills, experience, expe~ise and'perspectives will be beneficial to the work of the Parks, Recreation and Golf Commission? · 10. What do.you believe is the single most important parks, recreation', and golf issue facing our community? And why? 11. In your opin. ion what type or types of parks development or recreational and golf programs should the City encourage? 12. 13. 14. In your opinion what type or types of parks development or recreational and golf programs should the City discourage? · What kind of ideal co.mmunity do you envision for Ukiah? . . · Are there any Other City of Ukiah Committees/Commissions in which you are interested and on which you would be willing to serve? ~lease return this application and attachments to the Citg Clerk b~'Roon o 005. Thank you for ~our interes~in ser~in~ the Citg of ~kiah. - . . ~ Signature - d' "f~~ ' . - ~ ~~ .- ~~ City o 300 seminary Avenue, Ukiah, CA 95482-5400 Phone: 463-6217 . FaX: 463-6204 ; Forms: Parks, Recreation '& Golf Commission Application Revised: 6/6/05 . ]2 om applying to serve on the City of Ukiah's Parks, Recreation & Golf Commission because Z believe my skills and familiarity with the City of Ukiah would be beneficial to the Commission. . My understanding of the role and responsibility of the Parks, Recreation & Golf Commission is to come together as a Commission to protect, improve and move forward to establish new and improve existing parks and recreation areas in the URiah oreo. . believe that my many years experience working with Boards and Commissions would make me an excellent Commissioner. lO. At the present time ]] do not know enough to specify the single most important park, recreation, and golf issue facing the community. Z would need to familiarize myself with'the issues facing this Commission before I; could specify which :[ believed to be the single most important issue. 11. In my opinion, I believe that the City should encourage are park, . recreational and golf programs that are geared towards keeping the youth in the area busy with programs that encourage them to learn. ]] also believe that we need to educate the population as to what parks, recreation, and golf programs are available to them. .12.. In my opinion I would discourage programs that increase the budget beyond it's means and programs that have a high risk of danger. 13. Z believe that Ukiah is already a very special place to live'and raise children. Z would like to help protect and improve what we have already. 14. T would be willing to serve on any Board of Committee/Commission that my experience and skills would make me a valuable tool for that entity. CITY OF UKIAH~~ ~ ~ APPLICATION FOR APPOINTMENT ~~.ll -- - "- --'~~~ PARKS, RECREATION & GOLF COMMISSION CITY CLr-RK,s DEPARTMENT I'am applying fo~ an a. ppoint[nent to the City of Ukiah's Parks, Rec.reatio-n &.Go om ' .~ 3. Business Address ~ t~ .~ /~,~'3¢,.,. ~d_ 53t. Bus. Phone.. ~"~-- 4. Employer/'"/-/~//~/~::~¢,-'/ ~'~/~/.¢, Job Title///~,~,., (:~,,~~.,,,/.; 'Employed Since_ 5. How 10ng have you resided i/~kiah?/~years; Mendocino County:./:> yeals; Calif.? Z¢ .years 6. Please list community groups or organizations you are affiliated with and indicate any offices held Please answer the following questions on separate sheets of paper and attach to application. 7. Why are you applying to serve on the City of Ukiah's Parks, Recreation and Golf Commission? , What is your understanding of the purpose, role and responsibility of the Parks, Recreation and Golf Commission? .. , How do you believe your own skills, experience, expertise and'perspectives will be beneficial to the work of the Parks, Recreation and Golf Commission? 10. What do.you believe is the single most important parks, recreation, and golf issue facing our community? And why? 11. 12. · In yoUr opin. ion what type or types of parks development or recreation'al and golf programs should the City encourage? In your opinion what type or types of parks development or recreational and golf programs should the City discourage? 13. 14. What kind of ideal community do 'you envision for Ukiah? · Are there any other City of Ukiah Committees/CommisSions in which you are interested and on which you would be willing to sene? · return this application and' attachments to the City Clerk by Noon on~005. Thank you for your interest in serving the City of Ukiah. Sign. atu re ~ ~//'"'~~~./~'~'~ 'Date '~/~,~ -"'" City of Ukiah, 300 ~~'~.ry.Avenue, Ukiah, CA 95482-5407 P~e: 463-6217 Fax: 463-6204 Forms: Parks, Recreation & Golf Commission Application Revised: 6/6/05 Salne~ Address: Phone: , . . . 10. 11. 12. 13. 14. City of Ukiah Application for Appointment Parks, Recreation & Golf Commission Answers to Questions 6 thru 14 Michael Kisslinger 842 Cypress Ave., Ukiah, CA 95482 707-468-0338 I advise and consult with many local groups, agencies, and organizations, but I am not officially affiliated with any of them. Because we live next to Todd Grove Park, and the Golf Course the activities of this commission have a more immediate impact on our lives that most Ukiahans. Out of a sense of"informed self interest" I know that ;fi want a good, safe; community for my family I need to insure the same thing for everyone. To provide oversight and advice the city staff in the management of the City parks, the Golf Course, and other recreational facilities and activities. I am a trained and experience mediator, facilitator, and trainer. I am also very well informed about community development, economic development, management, governance, and fundraising. Currently the most important issue is the decay of the basic infi'astmcture of our parks and rec facilities. The City has not had the money to maintain them for years, and it shows. We should encourage anythin~ that people want to do that gets them outside, active, and together. Family oriented, community oriented, group oriented. I don't care what words you use, it's really all about getting people out together doing things. That is what I call community building. Anything that separates people, or creates strife. We need to share our common resources, not fight over them. My vision of Ukiah combines the best use of modem technology with the human interaction of a small town to create a safe, fun, and friendly place to raise a family. Possibly.