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HomeMy WebLinkAbout2006-02-15 Packet CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 February 15, 2006 6:00 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PRESENTATION//INTRODUCTIONS/PROCLAMATIONS a. Introduction of New Police Department Employees- Police Officers Josh Cabral, Andy Porter, and Chris Long b. Introduction of New Finance Department Employees- Jeff King, Information Technology Specialist and Steve Butler, Information Technology Supervisor c. Introduction of New Employee- Chris White, Code Compliance Coordinator d. Proclamation - Recognition of "National Engineers' Week 2006" 4. APPROVAL OF MINUTES a. Regular Meeting Minutes of November 2, 2005 b. Special Meeting of City Council: ClP Workshop of December 7, 2005 c. Special Closed Session Meeting of City Council of January 31,2006 1 RIGHT TO APPEAL DECISION Persons who are dissatisfied with a decision of the City Council may have the right to a review of that decision by a court. The City has adopted Section 1094.6 of the California Code of Civil Procedure, which generally limits to ninety days (90) the time within which the decision of the City Boards and Agencies may be judicially challenged. 1 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 January 2006 b. Rejection of Claim for Damages Received from Vanessa Verducci and Referral of Claim to the Joint Powers Authority, Redwood Empire Municipal Insurance Fund c. Rejection Of Claim For Damages Received From Troy And Elaine Burgess And Referral Of Claim To The Joint Powers Authority, Redwood Empire Municipal Insurance Fund d. Approval of Resolution Terminating the Existence of a Local Emergency for the City of Ukiah Report of Acquisition of Replacement Computer Equipment from Dell Marketing, L.P. Adoption of Ordinance Revising Section 9254, Entitled "Marijuana Cultivation" to Division 9, Chapter 2, Article 19 of the Ukiah City Code Request Authorization to Replace Engineering Associate Position with Assistant Engineer Adoption of Resolution Revising Fees for Copy Costs Notification to Council Regarding Award of Bid For the Emergency Rental of a Line Truck to Global Rental Company, Inc., in the Amount of $11,523.75. e, g. h. Notification to Council Regarding the Award of Bid for the Emergency Repair of the Digger Derrick Line Truck to Terex Utilities in the Estimated Amount of $16,170,00 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 (6:15 P.M.) None. gl UNFINISHED BUSINESS a. Authorize the City Manager to Negotiate and Execute a Contract for Golf Professional Services for the Ukiah Municipal Golf Course with Jimmy Stewart and Frank Johnson, Tayman Park Golf Group, Inc. b. Adoption of Resolution Calling Special Municipal Election, Requesting the Consolidation of the Election with the Statewide Election To Be Held June 6, 2006, Requesting Mendocino County to Conduct the Election, and Approving a Ballot Measure to be Placed on the Ballot for such Election. Discussion and Direction Regarding Future Consideration of Revisions to the City Sign Regulations C. 10. NEW BUSINESS a. Approval of Fiscal Year 2005/06 Mid Year Budget Amendment b. Continued Discussion and Consideration of an Ordinance Regarding Campaign Reform--Baldwin, Rodin c. Receipt of Audited Financial Statements for Fiscal Year 2004-2005 d. Selection of Disaster Planning Sub-Committee--Ashiku e. Discussion and Possible Action Regarding Procedures for the Appointment of Planning Commissioners--Ashiku 11. COUNCIL REPORTS 12. CITY MANAGER/CITY CLERK REPORTS 13. CLOSED SESSION Employee Negotiations: Fire Unit Negotiator: Candace Horsley 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 9th day of February~ 2006. Marie Ulvila, City Clerk The City of Ukiah complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. AGENDA ITEM NO: 3.a. MEETING DATE: February 15, 2006 SUMMARY REPORT SUBJECT: INTRODUCTION OF NEW POLICE DEPARTMENT EMPLOYEES SUMMARY: The Police Department will be introducing new officers, Josh Cabral (Bi-Lingual), Andy Porter and Chris Long. These three employees replace open vacant positions. RECOMMENDED ACTION: No Action Required ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: John Williams, Police Chief Candace Horsley, City Manager Approved: ~ ' ity Manager AGENDA ITEM NO: 3b. MEETING DATE: February 15, 2006 SUMMARY REPORT SUBJECT: INTRODUCTION OF NEW FINANCE DEPARTMENT EMPLOYEES- JEFF KING, INFORMATION TECHNOLOGY SPECIALIST AND STEVE BUTLER, INFORMATION TECHNOLOGY SUPERVISOR. The City of Ukiah is pleased to introduce two new Finance Department employees. Jeff King is our new Information Technology Support Specialist, with primary responsibility in systems maintenance and computer related customer support. Jeff has a technical background in computer and network systems; he has specialized in database design, with several products being used in the Auto Repair and Wine industries. Before coming to work for the City of Ukiah, Jeff worked for several large manufacturing companies, managing and working in the IT departments. Jeff and his family moved from Montana in the mid 80's, and have settled in Potter Valley. Jeff grew up in Yellowstone Park and spent 4 years in the US Navy as an Aviation Electronic Warfare crew leader on the P3 Orion airplanes Steven Butler is our new Information Technology Supervisor with primary responsibility in planning, operations and management of our technology investments. Steve comes to us from nearly 25 cumulative years with Pacific Gas and Electric Company where for the last 15 years he had been involved with multiple facets of their IT systems. (continued on page 2) RECOMMENDED ACTION: Welcome new Finance Department employees to the City. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizens Advised: Prepared by: Coordinated with: Attachments: N/A Mike McCann, Finance Director Candace Horsley, City Manager N/A Candace Horsley, City'~nager Steve holds a Microsoft Certified Systems Engineer certification and is proficient in leveraging technology to meet the needs of business. Through various roles in the utility Steve has hands on experience in user support, network operations, project planning and management. In the year 2000 Steve left PG&E and joined Lucent Technologies for 18 months as a consultant specializing in implementations of Microsoft technologies. He worked, providing consulting services to Lucent's high profile clients such as Microsoft Corporation, LAM Industries, APL Container Shipping and the Seattle Mariner's baseball organization. With the collapse of the Dot-Com industry and the subsequent downturn in Lucent's business Steve returned to PG&E where he was welcomed back with open arms to lead various technology efforts. Steve spent much of his childhood growing up in Ukiah. His family settled in the valley in 1969. After graduating from Ukiahi in 1977 Steve went to work for PG&E at the Geysers which ultimately had him move to be closer to work. After spending nearly 15 years in the Bay Area he decided to move back to Ukiah, a rural setting where he could be closer to his family, reconnect with old acquaintances and build a new life. ITEM NO: 3c DATE: February 15, 2005 AGENDA SUMMARY REPORT SUBJECT: INTRODUCTION OF NEW EMPLOYEE - CHRIS WHITE, CODE COMPLIANCE COORDINATOR SUMMARY: I am pleased to introduce our new Code Compliance Coordinator, Chris White, to the City Council. Chris is a former Police Officer with the City of Fort Bragg, and most recently worked at the Mendocino Private Industry Council. He is the Vice President of the Willits Frontier Days festival, and is very involved with organizing and managing the event. Since joining the Department, Chris has taken on a number of code compliance cases, and is learning the steps and procedures for resolving code violations and community issues. He is very organized and is developing a new documentation and filing system, and we are sound-boarding ideas for developing a programmatic approach to code compliance. He has established positive working relationships with the Staff from various Departments, and is rapidly becoming a valued member of the organization. Chds is a groat addition to the Staff, and we're fortunate to have him. Please welcome Chds White to the City of Ukiah team. RECOMMENDED ACTION: Council welcome Code Compliance Coordinator Chris White to the City. ALTERNATIVE COUNCIL POLICY OPTION: N/A Citizen Advised: N/A Requested by: Planning and Community Development Department Prepared by: Chadey Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: None Candace Horsley, City Manager PROCLAMATION OF THE CITY COUNC1'L OF THE CITY OF UKI'AH "Recognition of National Engineers' Week, 2006" WHEREAS, engineers' have built the foundation for progress and contributed greatly; turning ideas into reality, making America the leading technological nation in the world; and WHEREAS, engineering contributions are a integral part of our citizens' every day lives; and WHEREAS, the health, safety and comfort of this community greatly depend on the services of engineers'; and WHEREAS, the quality and effectiveness of planning, design, and construction are vitally dependent upon engineering skills; and WHEREAS, few professions are as diverse, as challenging, as critically important to the achievements, productivity, and future of our City as engineering; and WHEREAS, the City of Ukiah can be proud of the contribution to its development provided by engineers'; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Ukiah, hereby proclaim February 19 - 25, 2006 as: "National Engineers' Week" in the City of Ukiah, and call upon all citizens and civic organizations to recognize the contributions made by this special group of people. Dated: February 15, 2006 Mark Ashiku, Mayor CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 November 2, 2005 6:00 p.m. 1. ROLL CALL 6:11 PM Councilmembers Present: Crane, McCowen, Rodin, Staff Present: City Manager Horsley, Finance Director Planning Director Stump, and City Clerk Ulvila. id Mayor Ashiku. City Attorney Rapport, 2. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 3. PROCLAMATION 6:10 PM 3a. American Lung Association: "Shine Mayor Ashiku read the proclam urging U November as "Shine a Little Light Cancer". on Lung Cancer" zens to observe the month of Maggie Okimi accepted the Pro~ the American Lung Asso l, and :ific Pulmonary Services, 4. APPROVAL 4a. R~ City Clerk Ulvila Minut, minute,, 2005 - 6:13 PM continued to the next Council meeting. 4b. City Mi October 12. 2005- 6:14 PM the minutes be continued to the next Council meeting. 4c. tecial Mi M/RC .wen/Baldw presente~ by McCowen, Baldwi None. I 2005-6:15 PM the Special Meeting Minutes of October 17, 2005 as g roll call vote: AYES: Councilmembers Crane, MayorAshiku. NOES: None. ABSTAIN: None. ABSENT: 5. RIGHT TO DECISION - 6:15 PM Mayor Ashiku read the appeal process. 6. CONSENT CALENDAR- 6:16 PM Mayor Ashiku requested that item "6g" to be moved to New Business for discussion. City Attorney Rapport clarified that this is not an item upon which the City Council takes action on, but rather a report of action that was taken by staff. Mayor Ashiku withdrew his request. M/S Baldwin/Rodin approving Consent Calendar items "a" through "h" as follows: a. Rejected Claim for Damages Received from Charles and Kerri and Referral to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; b. Rejected Claim for Damages Received from Mona Falgout and Referral to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Approved Emergency Purchase from Groiniger and Company of Additional Materials Needed for the Brush Street Water Main Replacement Project in the Amount of $11,148.07; d. Authorized Sue Goodrick, Risk Manager, to be designated as an Alternate Director on the Redwood Empire Municipal Insurance F~ I's Board of Directors; e. Adopted Resolution 2006-18 Establishing City Issuance and f. g, Renewal of a Tobacco License Effective January Adopted Ordinance No. 1072 of the City Council Article Seven (7) Entitled "Tobacco Retailer's' Received Notification to the City Council on Mendocino Roofing Inc. for the Repair Buildings at the Ukiah Regional Air Adopted Resolution 2006-19Auth( Employees to Represent the City with Tax Records of the State Board of E( Taxes Collected for the h. :ity Manl of Ukiah Adding a New ty Code; in nt of $9,990 to 9nt of and Gutters on Desic .Officers or mine Transacl ns and Use to Transactions and Use Motion carried by the following roll c Rodin, Baldwin, and Mayor Ashiku. Cc Crane, McCowen, ABSENT: None. 7. AUDIENCE ITEM~ No one came addres ~e 6:18:04 PM 8. PUBLIC H 8a. Cl Ma, C( Cou~ of N( Subdivision R~ uirementFxce ~n i:18:53 PM ~as requested this matter be continued to the next regular The matter was continued with the consensus of 8. PI 8. PUBL UKIAH ROLL CALL: Pre JOINT HEARING OF CITY COUNCIL AND THE 3N DISTRICT - 6:20:11 PM Ukiah Valley Sanitation District Board Present: Crane, Wattenburger and rman Delbar. Also Present: Chief Deputy County Counsel Zotter and Clerk of the Board Furman. 8. PUBLIC HEARINGS 8b. Adoption of Resolution of the City Council of the City of Ukiah Revising and ModifvinQ Rates for the Sewer Service for the Fiscal Years 2005-2006 (CommencinQ December 172005) Through 2009-2010- 6:20:55 PM Finance Director McCann discussed the history of the wastewater treatment plant and noted that staff began planning improvements to the plant in the 1990's. Several major components of the sewer plant were beginning to fail as they reached the end of their service lives, the plant was rapidly approaching capacity, and state discharge requirements 2 were rapidly becoming more stringent. Annual rate increases included in the new rate schedule provide funding for operation and maintenance of the wastewater system as well as repayment of the construction bonds. The City contracted with Bartle Wells Associates to provide a rate study and financial advisory services in connection with financing the project to upgrade and expand the wastewater treatment plant. The portion of the project that will increase capacity of the plant is to be paid for through an increase in connection fees so that this cost is paid for by new developments rather than existing rate payers. The portion of the project which is replacing and upgrading the system to serve existing customers is apportioned to the montl sewer charges so that this portion is paid by current customers. (6:32:04 PM) Doug Dove, consultant with Bartle Wells Associates. mailed to individuals along with the notice of the pr on the proposed increase. The City is in bonds in the next few months and that ne( the rate structure, noting that there is a rates. He explained that the proposed rates a proposed that the City and District implement a be one bill per property. Both District m concerning the proposed rate incre~ City's bond rating, and concern with ~rden landlords. e rate chart that was rate inc~ ~nd public hearing approximat~5 million dollars the increases. H on to review centive incl .in the new City and th strict. He He proposed that there rs questioned Mr. Dove and staff Jency rate as it pertains to the .llection of sewer bills upon Councilmember Bal Benefits Fund as thi return i ible Io thes month to discuss the Public City Manager Council witt ~e is staff's plan to bring forward options to Publi PM Mem of the audi~ Farn,, Cooperrii Dorothy G ,, Lynn Im; Judy Pruder to the issue included: Ukiah Morrison, Ken Cynthia Hernandez, Bob McAdoo, J.W. Tarver, Warren Sawyers, Lee Kramer, Estok Menton, Lloyd Gerboth, Moriety, and Charley Ruelle. Public Hearing 7:36:38 Mayor Ashiku noted that 25% of the proposed residential rate is based on consumption which makes it possible for those people who use a little bit of water and who don't impact the sewer system as much, to pay a lower fee than someone else who uses a lot of water and has a larger impact on the sewer system. The attempt was to encourage people to conserve and make it possible for the City to be eco friendly at the same time. Considerable discussion ensued with regard to the proposed sewer rates, connection fees, bonds, projected growth rate for the City of Ukiah, repairs needed at the wastewater treatment plant that need to be made to meet water quality standards, the possibility of adjusting/reducing the rates in the future, and City staff assisting managers and landlords of multiple units in calculating individual sewer bills based on previous usage. Councilmember McCowen discussed a different rate scenario from what is proposed by staff. District Board Chairman Delbar expressed his concerned with billing landlords. City Attorney Rapport explained that it states in the Proposition 218 notice that the residential rate will be a combination of the fixed fee minimum plus the consumption charge which is based on water use measured at the m~ .~r in J ,. Both the City and District need water consumption data from the water distrk 'ing Sanitation District customers in order to estimate the probable fees that ~vill pay under new rules, and to charge customers under the new rates. Chief Counsel Zotter concurred. ag 8C. Section 3707.1 of the Ukiah Char_cled to the Customer Ret District member Wattenburger next meeting concerning a seni~ individuals. It is his hope to obtain order to drive down the cost of the rr unit complexes at the flat rate for resi~ individual units. He su ,e rate PUBLIC HEARINGS Introduction of an Ordinance of a ouncil of the it ion doll, I~ Amem ewer Servi be ,s - 8:35:48 and have a report back at the an impact on fixed income the federal government in preferred keeping multi and sending the bills to District Chairma~ instead of indivic age with the issue of billing landlords (Item 8b) M/S Ba Servi roll the fis~ AYES: None. ::) revising and modifying rates for Sewer through 2009-2010, motion carried by the following ~bers Crane, McCowen, Rodin, Baldwin, and Mayor ABSENT: None. Chief Dep situation. in the City's ord ordinance does n( Co Zotter advised the District can only act by ordinance in this ordinances are virtually identical, there is a special clause allows it to change rates by resolution whereas the District's that clause. Therefore, he recommended the District adopt an urgency ordinance w findings in order to act on the matter at this meeting so that it would be consistent with the City's action. He provided language for the urgency of "Whereas, it is necessary that this ordinance take effect immediately because the City will act to adopt new rates on November 2, 2005 by resolution in order to obtain bond financing for the construction of the improvement to the City sewer plant by the end of November." M/S Wattenburger/Crane adopting the Ordinance as stated with the urgency provisions suggested by Chief Deputy County Counsel Zotter, and to include investigation of CARE programs, senior citizen discounts, etc. as soon as possible; carried by the following roll call vote: AYES: District members Crane, Wattenburger, and Chairman Delbar. (item 8c) M/S Baldwin/McCowen introducing Ordinance by title only. Councilmember Rodin requested that the City send a letter to landlords and tenants providing them with an estimate of a fair rent increase based on prior usage to the extent such information can be provided under the Public Records Act. Councilmember Baldwin recommended that landlords and tenants be informed of their current usage. Motion carried by the following roll call vote: AYES: Counci Rodin, Baldwin, and Mayor Ashiku. NOES: None. AB: Crane, McCowen, None. ABSENT: None. City Clerk Ulvila read the title of the Ordinance, City of Ukiah Amending Section 3707.1 of the Uk Code. City Council of the M/S McCowen/Rodin Introducing Ordin~ AYES: Councilmembers Crane, McCowen None. ABSTAIN: None. ABSENT: None. in, Bald~ by the follo~ Mayor 'oll call vote: ;u. NOES: Recessed: 9:12:18 PM Reconvened: 9:17:47 PM Mayor Ashiku announced that he comment on this matte by not allowing public Public Hearing I: 9:17 Members of the au, Lee Kram~ Ron Ledford, Robert Gattenburger, Publ C It wa, sus City Iorsley Council cone to not reconsider its decision. iested that item "lOa" be considered next on the agenda. 10. NEW BUSl 10a. Award of Co~ act to Argonaut Constructors in the Amount of $709~697 for th~ Construction of Airport Infrastructure Improvements as Outlined in Specification PW 03-10 No public comments received. M/RC McCowen/Crane authorizing award of contract to Argonaut Constructors in the amount of $709,697 for the construction of Airport Infrastructure Improvements as outlined in Specification PW 03-10; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. Councilmember Baldwin stated that he would like to hear from Chris Stone regarding a proposal to relocate the airport. 10b. Review~ Discuss~ and Formulate Comments Concerning the Hop Kiln (Ryder Homes) Development Project on 154 Acres in the Unincorporated Area Northeast of the City- 9:30:33 PM Planning Director Stump advised that Mendocino County has distributed a referral packet of the Hop Kiln (Ryder Homes) development project to the City for review and comment. The Hop Kiln ranch development proposal is located on 154 acres east of the Masonite plant property. He discussed the two proposed scenarios. The lopers have expressed a desire to understand any concerns the City has about the willingness to work with the City to solve potential proble He noted that the City will have the opportunity to rewt environmental impacts resulting from the project Report (EIR) is prepared and circulated for publ merits of the project. and have indicated a address City concerns. on the potential 9ntal Impact and t( comment on the Jay Ryder, owner of Ryder Homes and ,nent of company submitted a site plan to the County the application to meet County standards. They consideration of the environm~ 9 of the p intend to phase the project over sc planned growth. He responded to qL iect, exl that his and have be{ working on led to go before the County for ~n preparation of an EIR. They ~g planned development with ncil concerning the project. Richard Derringer, ag and noted it is their smart growth and use as devel tin the of the development of an urban village, utilizing Considerable discu expressed traffic cc of als( :ussed. the proposed development. Council City of Ukiah's infrastructure, including and sewer s =es, and fire and police services. The topic and the potential for annexation into the City was Public 0:06 PM Members of It spoke to the issue included Neil Rathkey, Judy Pruden, Steve Wilson, Tom Larson, Wallace Stahl, David Smith Ferri, James Connerton, Lisa Pinky Kushner, Anne Oliver, Madeline Holtcamp, Vishnu, Mary Anne Miller, Shoemaker, Darlene Hamilton, Al Krauss, Dotty Coplan, Phyllis Curtis, Mary Anne Landis, Jay Ryder, and Richard Derringer. Public Comment Closed: 10:59 PM Council and staff further discussed the proposed development and potential impacts to the City of Ukiah. The Ukiah Valley Area Plan (UVAP) was also discussed. It was the consensus of the City Council to recommend to the County to not allow any further General Plan Amendments until the UVAP is completed. It was noted by Planning Director Stump that final comments on the project are due at the County on November 18, 2005. It was the consensus of the City Council to form a subcommittee of Councilmember Rodin and McCowen, along with Planning Director Stump, to develop a letter from the City Council and one from City staff, addressing the City's concerns and present the letters to the Council at its next meeting. Recessed: 11:29 PM Reconvened: 11:40 PM ga 9a. ZoninQ Matters -11:40 City Attorney Rapport advised that the Fair Politi~ issued a written opinion responding to confli( Councilmember McCowen. His questions ari,, property in or within 500 feet of the downt, Street or Gobbi Street. These are the are~ "formula businesses", which the City Council which the City Council plans to consider. Becau= interests in real property in or withi~ opinion and discuss the impact of participate in the discussion or ado areas or the adoption of form-based UNFINISHED BUSINESS Discussion of Conflict of Interest in Formula could of the,, on the and Form Based mission (FPPC) has q ~ns submitted by his ownershil~ parcels of s improvem( rict, Perkins by a m on and by "form-b sed zoning" ity Council members also own ,as, he was asked to review that of City Council members to ,rmula businesses in these He read the FPPC o the downtown or areas will have businesses or the conflict then tht mak~ ~e of in1 his opi at Coun~ ambers who own property in 'kins and Gobbi) or within 500 feet of those with ~ct to the interim moratorium on formula for those areas. If the existence of the ugh Councilmembers to make a decision, lect randoml nough Council members with a conflict to ~quired to make a decision. Disc[ determi concernin~ issues. A pc potential confli~ Rapport that ea~ followed re Coun~ and determining the selection process for would participate in discussion and decision making on formula businesses and form-based zoning ncil determined that four of the five Councilmembers have a g both of these matters. It was noted by City Attorney may contact the FPPC or an attorney for advice. It was the consensus of the City Council to move forward with this matter. 11. COUNCIL REPORTS 12:03 am Councilmember Rodin reported attending the Russian River Watershed Association meeting last Thursday. She stated that there is an Economic Summit at Mendocino College this Friday. She reported speaking with Colleen Henderson and was informed that she is the only representative from the City attending the meeting. They plan to discuss economic clusters at their next meeting. 12. CITY MANAGER/CITY CLERK REPORTS City Manager Horsley offered Council a choice of either keeping the 2005-2006 fiscal year budget in a binder or having a bound version. All of the Councilmembers requested a bound budget. Adjourned to sit as the Ukiah Redevelopment Agency: 12:06 AM Reconvened: 12:07 AM Adjourned to Closed Session: 12:07 AM 13. CLOSED SESSION 13a. Conference with Labor N~ otiator. Governmen Employee Negotiations: Electric Unit & Miscella Negotiator: City Manager 54957.6 Reconvened: 1:20 AM No action taken. 14. ADJOURNMENT There being no further business, :ing was 'ned at: 1:20 AM Marie Ulvila, City Cler 4b MINUTES OF THE UKIAH CITY COUNCIL CAPITAL IMPROVEMENT PROJECT AND EQUIPMENT WORKSHOP WEDNESDAY, DECEMBER 7, 2005 The Ukiah City Council met at a Regular Meeting on December 7, 2005, the notice for which being legally noticed, at 4:30 p.m. Roll was take~:~=: and the following Councilmembers were present: Crane, McCowen, Rodin, Bal~i~:i and Mayor Ashiku. Staff present: City Manager Horsley, Police Chief John ~i;,!!:i~s, Director of Public Works Diana Steele and Deputy Director of Public Wor~::i,::~ii~?~eanor, Public Works Supervisor Whitaker, Director of Planning Charley Stu~:':i~:::Dir'e~tor of Public Utilities Bernie Ziemianek, Director of Community Services, ~::!~R~cording:':'S~retary Elawadly. O P E N IN G R E MAR KS City Manager Horsley briefly explained t~?~much o~::~:~the inform~[i~n for the depa~mental Capital Improvement Projects:~(~:~:~ was::~pared on so,are program "Access" and on "Excel" fo'~::~:~:~9:: ,~:.~?i::~ment Replacement Lists, allowing the City Council to have p[e:!imina~ bu~:~:::~:~;~i~formation for FY 2006. The criteria selected in forma~ing the inf~~iD~ assists i~:~?~:~plaining the individual project purpose/intenFnature/priority and imp~:~ Councilmember Rodin ca~ :i~:~at 5:13 Mayor Ashiku came in~;~?~:~29 ClP AND EQ0i.~MENT OVer,VIEW Bernie Ziemianek - ~blic Utiii~:~':~Electr~ Oivision (Refer to Pages 7-11 for specific ProjeCt Mst in¢~~') ...... Animal · It is n~Ssa~ to i~eye ~i~t[ic system reliability, se~ice, and longevity. · Th~ Year program ~ ~:75,0~ ~er feeder, five feeders are necessa~. Mr, Ziemiah6E explained th~efinition of a feeder. Generation 2 buy-in · This project will ;sed at the December 21, 2005, City Council meeting. Gobbi Substation Rearranqe Buswork · It is necessary to reconfigure and improve service for the feed circuits at the Gobbi Street Substation so that two transformers can operate at the same time, especially during overload periods that occur in the summer months. Protection Scheme Upgrading / Reconductoring -increase capacity · It is necessary to increase protection and reduce stress on the Gobbi Street Substation to improve system reliability by increasing electric load carrying capability through the process of sectionalizing/breaking down the components of the feeders and minimizing loss of equipment. Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 1 of 8 SCADA System at Gobbi Substation · It is necessary to provide an effective remote monitoring and operation of the Gobbi Street Substation so that data can be easily accessed and failures quickly analyzed. Mr. Ziemianek provided a brief update on the status of the hydroplant project. He intends for the facility to begin functioning in the spring of 2006. Water-Sewer Division Sewer Line Replacement/Upgrade/Reline · There was discussion concerning funding sources aside funding on a yearly basis for the components requiring upgrad~s/~eplace~:~to the City Sewer Water Re-Use Study · This study is directed toward the Waste~::ii'~'~ter Trea~nt Plant. An: :~i~ernative funding source may be found for the study pr~i :.~:,~ The New Well Drilling and hyd be ad~:f~¢S~ed at a future City Council meeting relative to well drilling and to the:~i~ting system. Charley Stump - Plannlqg~:~:~nd Building. pages 5 and 6 fo .specific Project List inf~~i~)i:~ :~':'~i?:ii iii~':i?.i,i?~ i · Plan updates are neCeSSary f~"~!i~he Airp°:'~ii~'~ster Plan and the Ukiah General Plan. Revisions to the.~::~':~Y Zoning ~de are:'~:~::~:ndated by the General Plan after its · Downtown/Gateway/Form Based update. Further discuss Zoning The as · Some Sage Sang 14 for Project Ukiah General Plan has been updated. The has been funded and will be updated next year Study. The Land Use Element and other be ~d relative to an update. completed in-house. ity Services (Refer to a separate document, pages 1- General Information CIP discussion/information for the Community Services Department was separated by division (Parks, Conference Center, General Government Buildings, Golf, and Grace Hudson Museum/Sun House). Discussion/information for the Vehicle/Equipment Replacement Cost Schedule was provided for the Parks, Golf, and General Government Buildings Divisions. o The equipment is monitored very closely for all divisions and routine maintenance is conducted. o The City benefits from having various types of equipment, such as tree trimming equipment that has reduced contract costs for this maintenance service. Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 2 of 8 o As a cost savings, the City purchases quality used vehicular and other types of equipment. o The purpose for having the vehicles for the various divisions, including the amount of use and purpose was addressed. o The Excel spreadsheet information for Golf Division equipment has an extra column (Replacement Priority) to reflect a realistic schedule since the Golf Co u rse ope rates as a n E nte rp rise F u nd needed because the ,bi Street Riverside The CIP f,o,r the Community Services Depa~m~n! are documented as funded and "unfunded projects. Some of the proje~!ii~re contingent upon ~t. funding, donations or volunteer labor. A number of maintenance funds (large tickei~i~s).i~~; as replacement of HVAC units, carpeting, roofing, and associat~~ ~::i'ntenance items have been identified within the different mon~ ~ be budgeted and/or a fund established for the anticipated/p iture"'~!i~oid having to pay a large lump sum for replacement when it ,ment cement and associated costs was ", i~:.~ovements/upgrades. Since Park Bond .sirabl~:i:'~::~::,::establish a yearly contribution fund. Discussion of the::'::~;:6l'P, lium Renovation, the Skate Park Develo ~'~':i~ Ukiah i' Swimming Pools Renovation Project will b, re~::~i::.::8t tonight's City Council meeting. Ukia~:::~8~orts Com $25,000 is budgeted for continued lighting and sp~¢t~ter seating was available this past year to develop the third fi~!~':i which is currei~::l~ in Ukiah S plex PE~!$e IV- Money has been budgeted to pave the parking lot, renc ighting ~:~: Fields 1 and 2. The funding sources for this project will come from , Park Development Fund, grants, and donations. Todd Gove Renovation Project- $50,000 has been budgeted from the General Fund t:6?'~tenovate the BBQ area. The Park Amenity Replacement and Renovation Fund has $20,000 budgeted to replace amenities. Mr. Sangiacomo explained that various types of City has many parks/parking lots and facilities to Park is another facility the City monitors/maintains. It was noted that the Ukiah Unified School District is responsible for maintenance of the tennis courts at Ukiah High School. There was discussion concerning CIP for Observatory Park and corresponding Observatory buildings. Staff anticipates that the park would be open to the public in early spring or summer of 2006. There was discussion concerning Riverside Park, which has been officially designated as a "park." Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 3 of 8 Conference Center Division · Conference Center Roof Replacement- $96,900 has been budgeted to replace the failing roof system. General Government Buildin_qs .... · There was general discussion regarding staff time being u~:i::~o control leaks and fixing water damage to interior/exterior of the Civic Cente:~i ~e flat roof has been r e pla c e d. ~,~: ~ ~: ,~,, ~:~:,,, ~,,~:~,~ ,~,~:,~ :i~. ~: ::::~::~,~:~ ~ · st ooo $ 0,000 stucco, pa~icularly underneath the facade area~t~:~:ling gutters ~'~ contributed to this problem · Council Chamber Seating - Most of the s~~::::~ still functioning and~ ~eats can be replaced over time where necessa~. .ct is :~ ~Urrently funde~ · Civic Center & Annex Security System -I a security system should likely be considered. The project i~ot currently Golf Division · All projects are contingent on.... · Projects that are an im~::~.~ment pri~ in~!:~:':'~?~t~:~'~:~eplacement and bridge renovation on hole nu~~::~:-::~and 11 :~:::::~ ~:~ ........ · Some of the impro~:~tswii::i? i i e Men's Golf Club volunteer project. · Drainage Renova~i~:~::'Fund - T~: project~¥~roves the drainage on site that creates more desirable~:::~ditions the:~'~inter months. Drainage system improvements :~:'~::~n's Golf Club as a volunteer project on the ba~:.~i~ · Fu:~:~i~g: for improve~ pr~::~, to the buildings and cou~yard come from the Gene~i ~und, Museum~:?~Uild, d~:~tions, and grants. · Sun Ho~:~enovation i~lves a seismic retrofit with electrical upgrades. · Staff will r~i~::.the lighting::~ at the Sun House to ensure it is downcast/shielded and not intrusive t~ i~ nig~ ~Y and/or neighborhood. Di~n~ Steel~ - Publi:~:~::'Work~ (refer to p~ge~ ~-4 ~nd p~ge~ ~-2~ for Project Li~t information) ~ City of Uki~h Engineering Division ~quip~ent Replacement Go~t ~ohedule prepared by Ri~k Although the Public Works Department participates on the Airport improvement projects, the primary agencies working on these projects are the FAA and EDA, and they are the grant funding sources. (Pages 1 and 2) Landfill (Pages 3 and 4) · The projects have been sorted by CIP versus maintenance. · Landfill Closure will be funded by money held in reserve. Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 4 of 8 · There are three maintenance funds that must be maintained due to corrective action for known and unforeseeable releases, environmental monitoring, and post-closure activities. · An application has recently been submitted to the State to look at a technical proposal, which could significantly reduce the correction action cost. · The State has yet to review and respond to the City's engineered alternative report that was submitted approximately two years ago. General Public Works projects · The format separates Administrative Task, Capital Imi~'~~ts, Maintenance, and Feasibility and Technical Study elements. Administrative Task (Page 12) N PDES Phase II Implementation · This project is ongoing, and staff continU~i~!!~=~..meet:~i~i~:'Regional Q:~'~ii~y Water Resources Board on related issues. .... .Talma,qe Street Relinquishment '::~i? i .... Staff is negotiating with Caltrans in~{~iiS~"~'~d~,:The pr~,~ is ongoing.(Page 12) Capital Improvement (Page~ ~2~! 90 :.~i~.~. ii .Rail Trail Bike Path - Gob~Ji~i?,ii~J~i~a ~':'~!~:! i'~?,~,~!~:~i ....... · A grant application ~!ii~'een ~i~itted f~ ~'~:~siderationl Staff met with NG~ii"::~epresent~i~es rega~i~hg project issues. Oak Manor School · Project rai'i~ ~i:.~,~ia:ge until the improvements to Gobbi Stree' ;ection has been completed. Waug~n.e Bridge RePJ~'~meniI~? · The bria~e will ultimatel~ii?:i~ave t°::':6~ replaced. · There ~ discussion ~,arding the potential to obtain contributions from new developm~!S ~j:n the a~~ to help pay the cost of replacement. Some type of assessment ~:~be ~~sary in this regard. The EIR prepared for buildout of the AlP did not in~i~ii~: ~irements for contributions for upgrades to Waugh Lane. However, develoP~§~::':::~n Waugh Lane have contributed 30 feet of right-of-way, as well as installed curb, gutter, and sidewalk for the various developments. Orchard Avenue Orr Creek Bridqe & Road Extension · (Page 13 for project information) Cleveland Drainaqe · (Page 13 for project information) Perkins Street Storm Drain Extension · It is necessary to improve the drainage system in this area. Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 5 of 8 Gobbi and Orchard Intersection Improvements · This project is funded by impact fees and STIP. Gobbi, Oak Manor & Babcock Realiqnment · The City has qualified for STIP funding for this project. However, there has been rescheduling of the project due to State funding constraints. Hastinqs and State- Left Turn WB to SB State · This a project to be funded by fees that are collectO~i~ough the ^1~, Capital Improvement Fees for development. .t_ED Traffic Si.qnal Chan.qeout and Battorv-Backup: :.U i The City has received I-tfiS program fundin~:,i!i~?:~'his proiect at 90 ~¢~nt with City match @10 percent, and the City's matc~!!~'~i¥ likely be ~unded from:'~:::~ Sl~d(~) Perkins and Hospital Intersection Im · The cost is estimated to be various developments in the area, projects for Adventist Health on Hos the pr~ji~i,i,i,i,~ould be partially funded by Walg'd~in,s project and the phased Talma This ress. The project is estimated to cost $180,000 and fun~i~.~ill come Improvement Fees. ADA- C~.ii~,~amps Phase'~i~?~,.~.: · There i~?~'~Qject fundin~i'i?.~Or approximately 40 ADA ramp locations. The primary funding source~:~omes fr~.the MCOG Local Transportation Fund. ADA- Obstruction~ !iR~e or Relocate · There is an appr~ate $200,000 allowance for this project. The intent is to remove obstructions that inhibit accessible transit. Oak Manor to Orchard Trail Extension & Improvements · This is essentially a "Wish List" item. This project is recommended and its objective revisited from time to time in the event funding is available. Talmage Footpath · Project funding is held in City Fund 699. The intent is to develop some type of pedestrian access route through areas that are constrained between State Street and the Railroad tracks. The project would be considered a pathway rather than a sidewalk and would provide a safe walking area. Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 6 of 8 NCRA Ukiah Depot Restoration · The cost figure of $168,000 represents the original cost estimate when TEA funding through MCOG was applied for at customary construction costs. Historical restoration requires more detailed work and is considered more costly so the project is somewhat under-funded. Staff is monitoring the availability:::gf funding sources to complete the project. C ity-Wi d e S tree t I m p r o ve m e n t P r cie ct s · This item represents a place holder for numerou~i:'~;~.~f~ffid':i~provement projects identified in the City-Wide Traffic study, US 10!.::jiD:t~changb:::':~:~dy, Brush Street Triangle Study and other relevant traffic impro.~::~nt projects. ~h~,e projects are dependent on effective monitoring of grant fu~J:~:~:~ availability and ::~i~:e:[ sources of RR Crossing Rehabilitation- Ford, Commerce, Ai:~;a~Piant Road 2002 STIP & RR Crossinq Rehabilitation - Perkins, Go.b~L Talmaqe a~::~::~J~:ra 2000 STIP · There is commitment for fundi:'~:::?:~=:the projeCt:has been delayed due to rescheduling of the STIP funding c~Je~~ ~'~::' It was the consensus of the, G~U:Bcilmem~~8 pre~:?:';~~ ~e[er:'~;~ workshop discussions to a later date pe~inen~¢~;~:~~,,,:,::19 th¢~g~ ~? of i':~;~:;::',~'~Oject List and Equipment Replacement Cost Sch~8~;J::~ for ~:!ic Wor~,~d the Police Depa~ment. A D J O U R N M There being no fudher ~:~inesS~ ~:: ~]?G~Ou~.cil::~:~:~eeting was adjourned at 5:53'28 PM Cathy 'Bl~ad ly, Record i~ ~ecre:(::~?;:~:~ Ukiah City Council Capital Improvement Project and Equipment Workshop December 7, 2005 Page 7 of 8 CITY OF UKIAH CITY COUNCIL AGENDA Special Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 January 31, 2006 1. ROLL CALL - 5:29 p.m. Councilmembers Present: Crane, Ashiku Staff PresentCity Manager Horsley, Secretary Petersen-Latipow. McCowen, Rodin City Attorn~ , and Mayor pport, and Recording Adjourned to Closed Session: 5:30 p.m. w CLOSED SESSION CONFERENCE WITH LEGAL (Government Code Section 54956. No action taken. Reconvened: 7:15 p.m. 3. ADJOU There being no r the ~g was adjourned at 7:15 p.m. Gail Special Meeting Minutes January 31,2006 Page 1 of I ITEM NO.: 6a. DATE: February 15, 2006 AGENDA SUMMARY REPORT SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF JANUARY 2006 Payments made during the month of January 2006, 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: 66963-67161, 67234-67416 Accounts Payable Manual check numbers: 60158, 67417 Accounts Payable Manual check stock: 67418-67429 Payroll check numbers: 66902-66962, 67162-67233 Payroll Manual check numbers: 66900-66901 Void check numbers: none 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 January 2006. 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 APPROVED~~.- ';~---~ ~,~..-.--..~,. Candace Horsley, City Man r KRS:WORD/AGENDAJAN06 CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF JANUARY 2006 Demand Payments approved: Check No. 66963-67053, 67054-67161,67234-67308, 67309-67417 FUNDS: 100 General Fund $162,497.25 131 Equipment Reserve Fund 140 Park Development $1,468.44 141 Museum Grants $10,447.98 143 N.E.H.I. Museum Grant 150 Civic Center Fund 200 Asset Seizure Fund $4,350.89 201 Asset Seizure (Drug/Alcohol) 203 H&S Education 11489 (B)(2)(A1) 204 Federal Asset Seizure Grants 205 Sup Law Enforce. Srv. Fund (SLESF) $1,000.00 206 Community Oriented Policing 207 Local Law Enforce. BIk Grant 220 Parking Dist. #10per & Maint $442.96 230 Parking Dist. #1 Revenue Fund $34.00 250 Special Revenue Fund $3,895.00 260 Downtown Business Improvement $799.13 290 Bridge Fund 301 2107 Gas Tax Fund 310 Special Aviation Fund 315 Airport Capital Improvement $2,672.50 330 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 $96,421.92 550 Lake Mendocino Bond $1,673.75 575 Garage $4,215.87 PAYROLL CHECK NUMBERS 66900-66962 DIRECT DEPOSIT NUMBERS 26538-26689 PAYROLL PERIOD 12/18/05-12/31/05 PAYROLL CHECK NUMBERS: 67162-67233 DIRECT DEPOSIT NUMBERS 26690-26834 PAYROLL PERIOD 1/1/06-1/14/06 600 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 TOTAL DEMAND PAYMENTS TOTAL PAYROLL VENDOR CHECKS TOTAL PAYROLL CHECKS TOTAL DIRECT DEPOSIT TOTAL PAYMENTS VOID CHECK NUMBERS: NONE MANUAL A/P CHECK STOCK: 67418-67429 $45,509.01 $82,256.85 $134,720.17 $21,160.51 $18,141.61 $24,229.61 $457.73 $51,101.79 $7,983.41 $1,348.33 $13,522.51 $699.33 $4,554.25 $1,006,159.46 $9,086.50 $211,069.11 $43,747.26 $636,650.82 $6,688.86 $9,647.95 $325.00 $446,802.70 $1,065.33 $50,000.00 $45,664.74 $39,422.63 $3,056.10 $3,204,991.26 $50,066.8O $139,879.07 $397,528.11 $3,792,465.24 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. CERTIFICATION OF DIRECTOR OF FINANCE I have audited this Register and approve for accuracy and available funds. 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O~ H ~o HHHHH HHHHH~ ~o ~o H ~1 H H~: 0 oo~ i i i OO O OOOOO 0~00 ~00~ O~OO 00 O22 ~' ~ ~1H I-.-] H ~o r~ ~ O ~ i i ~ oo ,:I '-'o O C~ O O MD O~ U'l O U"l · O O O · · O O O O O O · ,.,,3U'~ O. . ~ H~ ...... m m~~ o o OOOOOOOOO ~ OOOOOOOOO ~ ~ OOO~~OO ~ ~ O 0 ~OOOOOOO ~ g g O ~O O · . . · CD 12o °° . googg O0 HHHHHHHHH ? ggooggoog o o OO OO O O 0 ~ O0 (20 H H H H ~0 0 ~H~H~H~ 0 ~ 0 H~H~H~ H~H~H~ H~H~H~ 88 ~ o o o o o o 0~000~0~ ~ ~o~oos~o~~ o O~ O0 O~ ~ 0 r~ H r~ 0 ~ ~ 00 o o o i.~ , . 0 u~ · 0 0 ~ o ~ · o . o ~ o o o t~o o o ~ 00 o o Soo~ooosoos o O0 000 O0 0 0000000~~ ~ oo~o ~o o c~ I.~ o CD 00 oD 00 00 o o °~ ~~~~~~~~~~~ 8 00000000 0000000000000 00000 0 o~ 00 00~00000000 000000000000 oo~oo~oo~ O0 O0 O0 000000000000 ~0 ~ ~ ~0 O0 O0 O0 O0 0000~~0~0~000000000000000000 0 ~ O0 O~ ~0 ~0 ~ ~ ~ ~ ~ 0000000000000000000000000000000 0 0000000000000000000000000000000 0000000000000000000000000000000 0 0000000000000000000000000000000 0 0 ~J ~ 0 0000000000000000000000000000000 ~ 88°°8°°°8°°88°°88°°88°°8°°88°°8oo ooo oo oo oo oo oo oo o0:~ ~o ~0 H ~0 tx.) oo 0 0 U~ kO 0000 0 0 0~ 000 · . O0 ~ ~ O~ 0 0 0 0 O0 0 0 0 000 0 0 0 0 O0 0 0 0 0 0 0 000~0~0~000~0~~00~00 ~~000~0~0~00~0~0~ 000000000000000000000000 o oo oooo 0 0 0 O0 0 0 O0 O0 000000000000000000000000 0 ~J ~h 0 ~D ~D 00 00 0 0 OD OO 0 0 ~° 0 0 ggoog~oo~oo~oog~oo~oO~oo oo oo oo oo oo 0000000~ ~ Q 0 U"l u"l u"l [~ ~ 0 o © o~ o ~ · ,,,.,1 · .4 ~ mm 0~00 OOOO OO~O 0HHHH~H O0 00~00~ ~ 00~00~ ~ ~00~0 . · 0 .... 0 ~ ~0 0 0000~0 00 0 0000000 0 0000000 0~00000 H , , {2> · · C> tx.) O~H · 0 t'.,J 00 o 00 OOHOHO H H 0~0~0 H~H~H oo ooooo ~o~ ooooo o~o~o · . . . ~0~0~ OH~ ~H~ 0000 ~000 00~0 O~ · 0 0 F--'- o 0000 oo~ o o u-i ~ o~ o o o~o ooo o oooo 0 0 ~0 o~ ~0 ,o ~0 0 ~J hh 0 i~. ~ I~ o~o o ~ t-J O3 C> o o o o o o {30 0o ~.~ L~ ?? ~j~ ~. o · ~0 © 0 0 ITEM NO. 6 b MEETING DATE: February 15, 2006 AGENDA SUMMARY REPORT SUBJECT: REJECTION OF CLAIM FOR DAMAGES RECEIVED FROM VERDUCCI AND REFERRAL OF CLAIM TO THE JOINT AUTHORITY, REDWOOD EMPIRE MUNICIPAL INSURANCE FUND VANESSA POWERS A claim from Vanessa Verducci was received by the City of Ukiah on January 12, 2006 alleging injury resulting from a fall on December 31, 2005 at the corner of Mason and Clara Streets due to mud and debris caused by flooding. Pursuant to City policy, it is recommended the City Council reject these claims as stated and refer them to the Redwood Empire Municipal Insurance Fund (REMIF). RECOMMENDED ACTION: Reject claim for damages received from Vanessa Verducci and refer to the Joint Powers Authority, Redwood Empire Municipal Insurance Fund. ALTERNATIVE COUNCIL POLICY OPTIONS: Alternative action not advised by the City's Risk Manager. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Yes Claimant Sue Goodrick, Risk ManagedBudget Officer Candace Horsley, City Manager 1. Claim from Vanessa Verducci, pages 1-6. Candace Horsley, City ~;~nager File With: City Clerk's Office City of Ukiah 300 Seminary Ave Ukiah, CA 95482 CLAIM FOR MONEY OR DAMAGES AGAINST THE CITY OF UKIAH RESERVE FOR FILING STAMP CLERK'S D'SFA~'TMENT A claim must be presented, as prescribed by the Government Code of the State of California, by the claimant or a person acting on his/her behalf and shall show the following: If additional space is needed to provide your information, please attach sheets, identifying the paragraph(s) being answered. 1. Name and address of the Claimant: Name of Claimant: ()6t~.~..¥~,.~C~' L).p (--AL_,~C_~(~_.[, . Address to which the person presenting the claim desires notices to be sent: Name of Addressee: O./"~-~ '~.=~"~'/~ O ~_~('~i-~Telephone: ~_~ ~c~ --."~ o~ ~ ~' Address: 6 /0 ~ _~-'~_'~,~/~-' -R--b~-/--., ~ ~ ~ i' u~7'~. / ("~-~~ ~'~[7 ~--~.-.~ 3. The date, place and other circumstances of the occurrence or transaction which gave rise to the claim asserted. Date of Occurrence: O¢__(~'_.., ,~ i, ('~ 5 Time of Occurrence: Location: ('"_~ !j/~ ~ ~$ ~ ~0 ~ Circumstances giving rise to this claim: ~ ~¢1 / ~ ~, . h~ / ~. ~ ~ ene, ,on . P , g , hflu~y, uollla~ o~ IU55 i~cuFFeo SO rat as the time of the presentation of the claim. ~ / . . The name or names of the public employee or employees causing the injury, damage, or loss, if known. Page I of 3 . If amount claimed totals less than $10,000: The amount claimed, if it totals less than ten thousand dollars ($10,000) as of the date of presentation of the claim, including the estimated amount of any prospective injury, damage, or loss, insofar as it may be known at the time of the presentation of the claim, together with the basis of computation of the .amount claimed. If amount claimed exceeds $10,000: If the amount claimed exceeds ten thousand dollars ($10,000), no dollar amount shall be included in the claim. However, it shall indicate whether the claim would be a limited civil case. A limited civil case is one where the recovery sought, exclusive of attorney fees, interest and court costs does not exceed $25,000. An unlimited civil case is one in which the recovery sought is more than $25,000. (See CCP § 86.) · .. ,~~imited Civil Case /~ Unlimited Civil Case ~You are required to provide the information requested above in order to comply with Government Code |§910. 7. Claimant(s) Social Security Number(s): (optional) Claimant(s) Date(s) °f Birth :¢-~'c~ 6 --6~ Name, address and telephone number of any witnesses to the occurrence or transaction which gave rise to the claim asserted: 10. If the claim involves medical treatment for a claimed injury, please provide the name, address and telephone number of any.doctors or hospitals providing treatment: 11. If applicable, please attach any medical bills or reports or similar documents supporting your claim. If the claim relates to an automobile accident: · Claimant(s) Auto Ins. Co.: Telephone: Address: Insurance Policy No.: Insurance Broker/Agent: Telephone: Address: Claimant's Veh. Lic. No.: Vehicle Make/Year: Claimant's Drivers Lic. No.: Expiration: If applicable, please attach any repair bills, estimates or similar documents supporting your claim. Page 2 of 3 READ CAREFULLY For all accident claims, place on the following diagram the name City of Ukiah vehicle; location of City of Ukiah vehicle at time of of streets, including North, East, South, and West; indicate place accident bY "A-I" and location of yourself or your vehicle at the of accident by "X" and by showing house numbers or distances to time of the accident by "B-I" and the point of impact by "X." street corners. If City of Ukiah vehicle was involved, designate by letter "A" location of City of Ukiah vehicle when you first saw it, NOTE: If diagrams below do not fit the situation, attach hereto a and by "B" location of yourself or your vehicle when you first saw proper diagram signed by claimant. ~,, SIDEWALK PARKWAY SIDEWALK CURB----~ Warning: Presentation of a false claim is a felony (Penal Code §72). Pursuant to California Civil Prodecures §1038, the City/Agency may seek to recover all costs of defense in the event an action is filed which is later determined not to have been brought in good faith and with reasonable cause. Signature: l.~¢~~5~ 0 '~J ~~ Date: Page 3 of 3 BARR FAMILY CHIROPRACTIC · 620 S. Dora St.//102 West Ukiah, CA 95482 707-462-9448 Patient · Date: Walter K. Barr, D.C. 384445983 License #: DC27198 Medicare# DC027198 Diagnosis:?~q/g9 ~5'~,~ ~~,~f ~---~~/,¢~v~tO~ew Dx: 57 EP Minimal 99211 30.00 26 EP Minimal J/Mn 99211-25 15.00 89 EP Limited-Re 99212 54.00 3 EP Limited-Re//Mn 99212-25 25.00 90 EP Inter-Re 99213 78.00 1 EP Inter-Re#Mn 99213-25 40.00 91 EP Extend-Re 99214 115.00 48 EP Extend-Re//Mn 99214-25 60.00 92 EP Comp-Re 99215 175.00 2 EP Comp-Re#Mn 99215-25 100.00 ****************************** 110 111 112 113 114 115 116 ****Evaluation and Management**** 52 CMT(1-2) 98940 40.00  Brief Exam 99201 55.00 53 CMT(3-4) 98941 55.00 Brief Exam/W/Mn 99201-25 40.00 54 CMT(5) 98942 70.00 Brief Exam/Reduced 99201-52 30.00 55 CMT(extraspinal) 98943 40.00 94 NP Limited Exam 99202 95.00 5 CMT(1-2)reduced 98940-52 30.00 56 NP Limited Exam/W/Mn 99202-25 55.00 102 CMT(3-4)reduced 98941-52 40.00 16 NP' Inter-Exam 99203 145.00 107 CMT(1-2)Medicare 98940-AT 26.45 95 NP Inter-Exam/W/Mn 99203-25 95.00 101 CMT(3-4)Medicare 98941-AT 37.22 17 NP Extend-Exam 99204 200.00 ~ CMT(5)Medicare 98942-AT 47.99 96 NP Extend-Exam/W/Mn 99204-25 150.00 "~Iq***PT**PT**PT** 18 NP Comp-Exam 99205 250.00 14 Electric Stimulation 97032 30.00 9 NP Comp-Exarr~W/Mn 99205-25 210.00 159 Decompression TX 97140 30.00 4 Neuromusc Reed 97112 40.00 63 Massage 97124 35.00 69 Therapeutic Activities 97530 35.00 58 Biofeedback/Meditation 90901 55.00 *******Workers Compensation******* · V 117 V 118 V 119 V 120 V 122 V 124 **************************** ~**** 126 156 A 157 A 158 A 128 ************************************************** 127 Today's Charges: ~7 ~...~-- ~ 130 129 Today's eayments:f~'-~-~ ~-~ ~ ? ~'5~_2) ******************************************************* 133 Next Visit Date: Visit Time 134 Return: M T W Th F S NP WC ev.aluatiOn 99201-25 38.50 NP WC evaluation 99202-25 57.80 NP WC evaluation 99203-25 76.50 NP WC evaluation 99204-25 109.65 NP WC evaluation 99205-25 145.35 EP WC eval 99211-25 22.62 EP WC eval 99212-25 35.70 EP WC eval 99213-25 47.60 EP WC 'eval 99214-25 72.25 EP WC eval 99215-25 110.50 CMT(1-2) WC ,. 98940 36.22 CMT(3-4) WC 98941 46.16 CMT(5) WC 98942 56.67 CMTextraspinal WC 98943 33.89 Soft Tissue Mobilization 97610 33.21 Traction 97012 17.53 Infrared 97026 17.53 WC Therapeutic EX 97110 33.21 WC Nmreeducation 97112 33.21 WC Functional Act 97114 33.21 WC Electric Stim 97118 23.37 WC Massage 97124 22.14 WC My,release 97250 44.28 WC Kinetic Act 97530 33.21 ************************************************************************************************************************************************************************* I hereby authorize the above named Doctor or Clinic to furnish information concerning my present illness or injury and direct the insuror to pay without equivocation~ directly to the above named Doctor or Clinic any and all benefits due them as a result of this claim. I am also aware that I am personally respon- sible for charges and/or balance not covered by my insurance, I hereby state and agree that a photocopy of this document will be as valid and binding on all parties involved as the original copy. Signed:__ Date: **********Office Visit*********** BARR FAMILY CHIROPRACTIC 620 S. Dora St.//102 West Ukiah, CA 95482 707-462-9448 Patient Date: Walter K. Barr, D.C. 384445983 License #: DC27198 Medicare# DC027198 Diagnosis'~, ?~9 ~y~__2/D ~..~/~ __~'~.c_~ ,~-.~d/fNew Dx:~z/~ **********Office Visit*********** ****Evaluation and Management**** 52 CMT(1-2) 98940 93 NP Brief Exam 99201 55.00 53 CMT(3-4) 98941 15 NP Brief Exam/W/Mn 99201-25 40.00 54 CMT(5) 98942 109"NP Brief.Exam/Reduced 99201-52 30.00 55 CMT(extraspinal) 98943 94 NP Limited Exam 99202 95.00 5 CMT(1-2)reduced 98940-52 56 NP Limited Exam/W/Mn 99202-25 55.00 102 CMT(3-4)reduced 98941-52 16 NP Inter-Exam 99203 145.00 107 CMT(1-2)Medicare 98940-AT 95 NP Inter-Exam/W/Mn 99203-25 95.00 1.01 CMT(3-4)Medicare 98941 -AT 17 NP Extend-Exam 99204 200.00 ~ CMT(5)Medicare 98942-AT 96 NP Extend-Exam/W/Mn 99204-25 150.00 (~-._pT**PT**PT**PT** 18 NP Comp-Exam 99205 250.00 14 Electric Stimulation 97032 9 NP Comp-Exam/W/Mn 99205-25 210.00 159 Decompression TX 97140 4 Neuromusc Reed 97112 57 EP Minimal 99211 30.00 63 · Massage 97124 26 EP MinimalJ/Mn 99211-25 15.00 69 Therapeutic Activities 97530 89 EP Limited-Re 99212 54.00 58 Biofeedback/Meditation 90901 3 EP Limited-Re//Mn 99212-25 25.00 90 EP Inter-Re 99213 78.00 1 EP Inter-Re//Mn 99213-25 40.00 91 'EP Extend-Re 99214 ' 115.00 48 EP Extend-Re//Mn 99214-25 60.00 92 EP Comp-Re 99215 175.00 2 EP Comp-Re//Mn 99215-25 100.00 V V V V V V ****************************** ********************************* A A A Today's Charges: Today' s Payments: Next Visit Date: Visit Time Return: M T W Th F/g-r-) 40.00 55.00 70.00 40.00 30.00 40.00 26.45 37.22 30.00 30.00 40.00 35.00 35.00 55.00 *******Workers Compensation*** 110 NP WC evaluation 99201-25 38.50 111 NP WC evaluation 99202-25 57.80 112 NP WC evaluation 99203-25 76.50 113 NP WC evaluation 99204-25 109.65 114 NP WC evaluation 99205-25 145.35 115 EP WC eval 99211-25 22.62 116 EP WC eval 99212-25 35.70 117 EP WC eval 99213-25 47.60 118 EP WC eval 99214-25 72.25 119 EP WC eval 99215-25 110.50 120 CMT(1-2) WC 98940 36.22 122 CMT(3-4) WC 98941 46.16 124 CMT(5) WC 98942 56.67 126 CMTextraspinal WC 98943 33.89 156 Soft Tissue Mobilization 97610 33.21 157 Traction 97012 17.53 158 Infrared 97026 17.53 128 WC Therapeutic EX 97110 33.21 127 WC Nmreeducation 97112 33.21 130 WC Functional Act 97114 33.21 129 WC Electric Stim 97118 23.37 132 WC Massage 97124 22.14 133 WC Myorelease 97250 44.28 134 WC Kinetic Act 97530 33.21 **************************************** ~s************************************* ~.******************************************************************** ********************** I hereby authorize the above named Doctor or Clinic to furnish information concerning my present illness or injury and direct the insuror to pay without equivocation~ directly to the above named Doctor or Clinic any and all benefits due them as a result of this claim. I am also aware that I am personally respon- sible for charges ancot balance not covered by my insurance, I hereby state m~d agree that a photocopy of this document will be as valid and binding on all parties involved as the original copy. Signed: Date: BARR FAMILY CHIROPRACTIC 620 S. Dora St.//102 West Ukiah, CA 95482 707-462-9448 Patient Date: Walter K. Barr, D.C. 384445983 License #' DC27198 Medicare# DC027198 Diagnosis:~q~r-) 7Z2./c_D .~.~2/ ~)2~,Dj, ~,~../,/_/NewDx:,~,~? ****Evaluation and Management**** 93 NP Brief Exam 99201 55.00 52 CMT(1-2) 98940 53 CMT(3-4) 98941 15. NP Brief Exam/W/Mn 99201-25 40.00 109,NP, Brief E~am/Reduced 99201-52 30.00 . 54 CMT(5) 98942 55 CMT(extraspinal) 98943 94 NP Limited Exam 99202 95.00 5 CMT(1-2)reduced 98940-52 56 NP Limited Exam/W/Mn 99202-25 55.00 102 CMT(3-4)reduced 98941-52 16 NP Inter-Exam 99203 145.00 95 NP Inter-Exam/W/Mn 99203-25 95.00 107 CMT(1-2)Medicare '98940-AT 101 CMT(3-4)Medicare 98941 -AT 17 NP Extend-Exam 99204 200.00 108 CMT(5)Medicare 98942-AT 96 NP Extend-Exam/W/Mn 99204-25 150.00 ' PT**PT**PT**PT** 18 NP Comp-Exam 99205 250.00 14 Electric Stimulation 97032 9 NP Comp-Exam/W/Mn 99205-25 210.00 159 Decompression TX 97140 4 Neuromusc Reed 97112 63 Massage 97124 69 Therapeutic Activities 97530 58 Biofeedback/Meditation 90901 57 EP Minimal 99211 30.00 26 EP Minimal//Mn 99211-25 15.00 89 EP Limited-Re 99212 54..00 3 EP Limited-Re//Mn 99212-25 25.00 90 EP Inter-Re 99213 78.00 1 EP Inter-Re#Mn 99213-25 40.00 91 EP Extend-Re 99214 115.00 48 EP Extend-Re#Mn 99214-25 60.00 92 EP Comp-Re 99215 175.00 2 EP Comp-Re//Mn 99215-25 100.00 ****************************** A A A Today's Charges: Today' s Payments' Next Visit Date: Visit Time Return: M T W~F~ **********Office Visit*********** 40.00 55.00 70.00 40.00 30.00 40.00 26.45 ~7.2_ 30.00 30.00 40.00 35.00 35.00 55.00 *******Workers Compensation******* 110 NP WC evaluation 99201-25 38.50 111 NP WC evaluation 99202-25 57.80 112 NP WC evaluation 9920_~-_5"? 76.50 113 NP WC evaluation 99204-25 109.65 114 NP WC evaluation 99205-25 145.35 115 EP WC eval 99211-25 22.62 116 EP WC eval 99212-25 35.70 117 EP WC eval 99213-25 47.60 118 EP WC eval 99214-25 72.25 119 EP WC eval 99215-25 110.50 120 CMT(1-2) WC 98940 36.22 122 CMT(3-4) WC 98941 46.16 124 CMT(5) WC 98942 56.67 126 CMTextraspinal WC 98943 33.89 156 Soft Tissue Mobilization 97610 ' 33.21 157 Traction 97012 17.53 158 Infrared 97026 17.53 128 WC Therapeutic EX 97110 33.21 127 WC Nrnreeducation 97112 33.21 130 WC Functional Act 97114 33.21 129 WC Electric Stim 97118 23.37 132 WC Massage 97124 22.14 133 WC Myorelease 97250 44.28 134 WC Kinetic Act 97530 33.21 #************ ************************************************************************************************************************************************************ [ hereby authorize the above named Doctor or Clinic to furnish information concerning my present illness or injury and direct the insuror to pay without ,quivocation~ directly to the above named Doctor or Clinic any and all benefits due them as a result of this claim. I am also aware that I am personally respon- sible for charges and/or balance not covered by my insurance, I hereby state and agree that a photocopy of this document will be as valid and binding on all parties involved as the original copy. Signed: Date: ITEM NO. 6 ¢ MEETING DATE: February 15, 2006 AGENDA SUMMARY REPORT SUBJECT: REJECTION OF CLAIM FOR DAMAGES RECEIVED FROM TROY AND ELAINE BURGESS AND REFERRAL OF CLAIM TO THE JOINT POWERS AUTHORITY, REDWOOD EMPIRE MUNICIPAL INSURANCE FUND A claim from Troy and Elaine Burgess was received by the City of Ukiah on January 26, 2006 alleging damage to their telephone line and fax machine due to a power outage that occurred on December 23, 2005 at their residence on Lorraine Street. Pursuant to City policy, it is recommended the City Council reject these claims as stated and refer them to the Redwood Empire Municipal Insurance Fund (REMIF). RECOMMENDED ACTION: Reject claim for damages received from Troy and Elaine Burgess and refer to the Joint Powers Authority, Redwood Empire Municipal Insurance Fund. ALTERNATIVE COUNCIL POLICY OPTIONS: Alternative action not advised by the City's Risk Manager. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Yes Claimant Sue Goodrick, Risk Manager/Budget Officer Candace Horsley, City Manager 1. Claim from Troy and Elaine Burgess, pages 1-6. APPROVED~~ Candace Horsley, C~ Manager City Clerk's O' City of 300 Seminary Ukiah, CA 954 MONEY OR AGAINST OF UKIAH RESERVE FOR FILING STAMP CLAIM NO. A claim must be presented, as prescribed by the Government Code of the State of California, by the claimant or a person acting on his/her behalf and shall show the following- If additional space is needed to provide your information, please attach sheets, identifying the paragraph(s) being answered. o Name and address of the Claimant: Name of Claimant: TRO~' ~r" E L/4-'~iL/i:, Address: ~ ] /_ _~'~ "~1~'1:~.~% T ~ ~ ~ -- _ 2 Address to which the person presenting the claim desires notices to be sent: Name of Addressee: Address: ~ t Lo 'RI~ .,or 1 ~ g ~'~ k.~~~, C~ L~ F, The date, place and other circumstances of the occurrence or transaction which gave rise to the claim asserted. 4, . Date of Occurrence: I "~-T ':'q- ~'""~" ",'3'-d)O-5 Time of Occurrence:/q.?p.,~,x. / (-..):~:)~ /q' ]qt. ~oc~t~o~: ~0 .,_ ¢4. /--oR~,~lX,/£ .~/~. Z.t H_,/ 4 /-I Circumstances giving rise to this claim:'- ~-'~'[e. "~O¢¢q--Y" ,[..,~le_ !oe_.&'~e. Z LL.¢. i"oS-S 't~'l. e_ 5'fre~_l · ' a " " i ~ '; ' ' e e a descnphon of the n~ebtedness, obligation'mjury, damage or loss incurred so far as it~maybe known at~ the hme of the presentation of the claim. ~ The name or names of the public employee or employees causing the injury, damage, or loss, if known. Z- ¥'el'z,:,r'4 e 4_ -Phe p pobl.e .5, f:?.C. ~ o'f "/-k e L; ~,,e_ o If arrrount claimed totals less than $10,000: The amount claimed, if it totals less than ten thousand dollars ($10,000) as of the date of presentation of the claim, including the estimated amount of any prospective injury, damage, or loss, insofar as it may be known at the time of the presentation of the claim, together with the basis of computation of the amount claimed. Amount Claimed and basis for computation: ~¢'j,.~'~. ~,~ .':-':%, .~. C i:~ e ¢ ~ ~' ¢' L t"M ~ If amount claimed exceeds $10,000' If the amount claimed exceeds ten thousand dollars ($10,000), no dollar amount shall be included in the claim. However, it shall indicate whether the claim would be a limited civil case. A limited civil case is one where the recovew sought, exclusive of attorney fees, interest and coud costs does not exceed $25,000. An unlimited civil case is one in which the recoveW sought is more than $25,000. (See CCP ~ 86.) ~ Limited Civil Case ~ Unlimited Civil Case You are required to provide the information requested above in order to comply with Government Cod~ {910. 7. Claimant(s) Social Security Number(s): (optional) . , Claimant(s) Date(s) of Birth' 'Bc e,c-Es dq.-18-- .53 EL._Cr-[fd Izz u' E..s.s ob 8, Name, address and telephone number of any witnesses to the occurrence or transaction which gave rise to the claim asserted' 10. If the claim involves medical treatment for a claimed injury, please provide the name, address and telephone number of any doctors or hospitals providing treatment: 11. If applicable, please attach any medical bills or reports or similar documents supporting your claim. If the claim relates to an automobile accident: ~O/~ ~' Claimant(s) Auto Ins. Co.: Telephone' Address: Insurance Policy No.' __ Insurance Broker/Agent: Telephone: Address' Claimant's Veh. Lic. No · Vehicle Make/Year: Claimant's Drivers Lic. No.: Expiration: If applicable, please attach any repair bills, estimates or .~imilar rfr~r:¢,m¢nt( ,~,,nnr~; ......... ~.-,;,-,-, READ CAREFULLY For all accident claims, place on the following diagram the name City of Ukiah vehicle; location of City of Ukiah vehicle at time of of streets, including North, East, South, and West; indicate place accident by "A-I" and location of yourself or your vehicle at the of accident by "×" and by showing house numbers or distances to time of the accident by "B-1" and the point of impact by "X." street corners. If City of Ukiah vehicle was involved, designate by letter "A" location of City of Ukiah vehicle when you first saw it, and by "B" location of yourself or your vehicle when you first saw CURB NOTE: If diagrams below do not fit the situation', attach hereto a proper diagram signed by claimant. PARKWAY T '~ CURB ~ Warning: Presentation of a false §1038, the City/Agency may seek claim is a felony (Penal Code §72). Pursuant to California Civil Prodecures determined no/to have been brought in good faith and with reasonable cause. to recover all costs of defense in the event an action is filed which is later Date Page 3 Fit' '~ that w as eas¥, SALE QTY SKU Low prices. Every item. Every day. 110% Price-Hatch. Guaranteed. 1225 Airport Park Blvd Ukiah, CA 95482 (707) 463-7110 558779 15 006 06944 0800 01/26/06 12:15 OUR PRICE DUPLICATE COPY * Not Va] id for Refund 1 BROTHER HFC640CW 012502614036 199.98 SUBTOTAL 199.98 Staples Coupon NO. 54882 -30.00 12% Associate Discount -20.40 Standard Tax 7.75% 11.59 TOTAL $161.17 Novus Card No.: XXXXXXXXXXXX6468 Auth No.: 026793 161.17 Not DUPLICATE COPY * Valid for Refund TOTAL ITEMS 1 Compare and Save with Staples-brand products. THANK YOU FOR SHOPPING AT STAPLES ! Shop online at www.staples:com 08000126060694406 T BURGESS Page 41 LORRAINE Accounl Number UKIAH CA 95482 - 5945 Billing Date Web Site 1 of 3 · 707 462-5093 375 4 Jan 10, 2006 www.sbc, com Monthly Statement Previous Bill 18.41 Payment Received 1-06 Thank you! Adjustments 18.41CR · O0 Balance .OO Current Charges Total Amount Due 78.44 $76.44 Amount Due in Full by Feb 10, 2006 Questions? Call: =lans and Services 1 800 310-2355 VarTec Telecom 1 800 583-6767 total Current Charges 73.54 2.90 76.44 Monthly Service - Jan 10 thru Feb 9 Service is billed in advance from the loth of each montl]. 1. Residence Flat Rate Service 2. Caller ID Complete Blocking Total Monthly Service Ad__~ditions and Changes to Service' This section of your bill reflects charges and credits resulting from account activity. Charges for 707 462-5093 Order No. 3055520 PON 7074625093 BURGESS TROY & ELAINE 41 LORRAINE UKtAH Item No__. ~ One-Time Charges 3. Service Connection 1 First 15 Min of Wire, Jack or Trouble Isolation Monthly Quantity_ Rate Surcharges and Other Fees 4. Federal Subscriber Line Charge 5. Rate Surcharge 6. State Regulatory Fee 7. Federal Universal Service Fee Total Surcharges and Other Fees G~overnment Fees an__._____d Taxes 8. CA High Cost Fund Surcharge- A: 9. CA High Cost Fund Surcharge- B: 10. California TeleconnectFund Surcharge 11. Universal Ufeline Telephone Service Surcharge 12. CA Relay Service and Communications Devices Fund 13. 9-1-1 EmergencySys~em 14. Federal Total Government Fees and Taxes Total Plans and Services 10.69 .00 10.69 Amount Bi_ lied 55.00 4.38 ,14CR .07 .44 4.75 .14 1.31 .08 .85 .18 .07 .47 3.10 73.54 PREVENT DISCONNECT · CARRIER INFORMATION WE'RETHE NEW AT&T · CHCF-A DIRECTORY ASSISTANCE · SPECIAL NEEDS PAY BILLS ONLINE ee "News You Can Use" for additional information Local Services provided by SBC California or SBC Nevada based upon the service address location. AGENDA SUMMARY ITEM NO. 6. ct DATE: February 15, 2006 REPORT SUBJECT: APPROVAL OF RESOLUTION TERMINATING THE EXISTENCE OF A LOCAL EMERGENCY FOR THE CITY OF UKIAH BACKGROUND: On December 30, 2005, the City Manager acting as the Director of Emergency Services prepared a proclamation declaring a local emergency due to excessive rain, flooding and storm conditions. The City Council ratified that action at a Special Meeting held on January 5, 2006. On January 18, 2006 and February 1,2006, the City Council approved Resolution Numbers 2006-34 and 2006-35 which extended the existence of a local emergency. At its February 7th meeting, the Mendocino County Board of Supervisor's closed their declaration of the existence of a local emergency. It is anticipated that if more flooding occurs, the County would "re-open" its declaration. Staff is recommending the approval of the attached resolution terminating the existence of a local emergency for the City of Ukiah, with the understanding that the declaration would be "re-opened" in the event of further flooding. RECOMMENDED ACTION: City Council approve resolution terminating its declaration of the existence of a local emergency for the City of Ukiah. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A N/A Sue Goodrick, Risk Manager/Budget Officer Candace Horsley, City Manager 1 - Resolution Terminating Existence of Local Emergency APPROVED:~¢~"-} CanOe Horsily, City M~ger RESOLUTION NO. 2006 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH PROCLAIMING TERMINATION OF LOCAL EMERGENCY WHEREAS, in accordance with the proclamation of the Director of Emergency Services on the 30th day of December 2005, and its ratification by the City Council on the 5th day of January 2006, as a result of conditions of extreme peril of the safety of persons and property caused by excessive rain, flooding and storm conditions; and WHEREAS, the situation resulting from said conditions of extreme peril is now deeded to be within the control of normal protective services, personnel, equipment and facilities of and within the City of Ukiah, NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of Ukiah, State of California does hereby proclaim the termination of said local emergency. PASSED AND ADOPTED this call vote: day of February, 2006, by the following roll AYES: NOES: ABSENT: ABSTAIN: ATTEST: Marie Ulvila, City Clerk Mark Ashiku, Mayor RESOLUTION NO. 2006 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH PROCLAIMING TERMINATION OF LOCAL EMERGENCY WHEREAS, in accordance with the proclamation of the Director of Emergency Services on the 30th day of December 2005, and its ratification by the City Council on the 5th day of January 2006, as a result of conditions of extreme peril of the safety of persons and property caused by excessive rain, flooding and storm conditions; and WHEREAS, the situation resulting from said conditions of extreme peril is now deeded to be within the control of normal protective services, personnel, equipment and facilities of and within the City of Ukiah, NOW, THEREFORE, BE IT RESOLVED that the City Council for the City of Ukiah, State of California does hereby proclaim the termination of said local emergency. PASSED AND ADOPTED this call vote: day of February, 2006, by the following roll AYES: NOES: ABSENT: ABSTAIN: ATTEST: Marie UIvila, City Clerk Mark Ashiku, Mayor AGENDA SUMMARY ITEM NO. 6e DATE: February 15, 2006 REPORT SUBJECT: REPORT OF ACQUISITION OF REPLACEMENT COMPUTER EQUIPMENT FROM DELL MARKETING, L.P. SUMMARY: Section 1522 of the Municipal Code requires a report be filed with the City Council regarding purchases between $5,000 and $10,000. In accordance with the above mentioned section this report is submitted to the City Council regarding the acquisition of replacement computer equipment for the following departments: Purchase to replace four older computers that are over 4 years old. These systems are using an obsolete operating system (Microsoft Windows 98) and their components have exceeded their MTF (Mean Time to Failure) ratings resulting in security risks and increased maintenance costs. Information Technology department confirmed replacement of these systems are warranted. The Purchasing Department issued a Purchase Order for replacement computer equipment through Dell Marketing, L.P. - PO# 036529 for $6,702.40. Funds are included in the FY05-06 budget for this purpose in accounts 410.6190.690.000, 100.1915.690.000, 100.6110.690.000, 100.6001.690.000 & 695.6120.690.000. RECOMMENDED ACTION: Receive report regarding acquisition of replacement computer equipment from Dell Marketing, L.P. in the amount of $6,702.40. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised' N/A Requested by: N/A Prepared by: Steve Butler, Information Technology Supervisor Coordinated with: Mary Horger, Purchasing Supervisor and Candace Horsley, City Manager Attachments: None AP PROVED:,---~~ Candace Horsle¥, Cit~anager ~'I-EH NO: 6f DATE: February 15, 2005 AGENDA SUMMARY REPORT SUB3ECT: ADOPT]~ON OF ORDZNANCE REVTSTNG SECTI'ON 9254, ENTTTLED "MART3UANA CULT]~VAT~ZON" TO DIVI'STON 9, CHAPTER 2, ART~ZCLE 19 OF THE UK]~AH C~ZTY CODE SUHHARY: On February 1, 2006, the City Council conducted a public hearing and unanimously introduced an Ordinance revising the marijuana cultivation regulations adopted last year. The purpose of the revised Ordinance was to simplify enforcement and make the ordinance more defensible against legal challenge. The Ordinance has been prepared in final form and is ready for formal adoption. RECOHHENDED ACTI:ON: 1) Adopt the Ordinance revising Section 9254 entitled "Marijuana Cultivation" to Division 9, Chapter 2, Article 19 of the Ukiah City Code. ALTERNATZVE COUNC:I:L POL]:CY OP'D~ON: Do not adopt the Ordinance and provide direction to Staff. Citizens Advised: :Interested groups, organizations, and members of the public Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager and David Rapport, City Attorney Attachments: 1. Ordinance for Adoption APPROVED,~~-~~~, Candace Horsley, City M~ager ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 9254, ENTITLED: "MARIJUANA CULTIVATION," OF THE UKIAH CITY CODE The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE The City Council hereby finds and declares as follows: 1. In November 1996, the voters of California approved Proposition 215, the Compassionate Use Act of 1996, which enacted Health and Safety Code Section 11362.5. Under the Compassionate Use Act, Health and Safety Code Section 11357, making it a crime to possess marijuana, and Section 11358 making it a crime to cultivate marijuana, shall not apply to a patient, or to a patient's primary caregiver, who possesses or cultivates marijuana for the personal medical purposes of the patient upon the written or oral recommendation or approval of a physician. 2. Since the enactment of the Compassionate Use Act, 264 persons with residence addresses in the City of' Ukiah have been issued medical marijuana identification cards by the Mendocino County Sheriff's Department. 3. The number of parcels in the City used to grow marijuana has increased substantially. The City Police Department estimates that up to 250 parcels are currently being used to grow marijuana throughout the City's residential neighborhoods. 4. Marijuana plants as they begin to flower and for a period of 2 months or more during the growing season (August- October) produce an extremely strong odor, offensive to many people, and detectable far beyond property boundaries. One popular strain of marijuana is called "Skunk" or "Super Skunk" and has a strong odor that resembles the smell of a skunk. 5. The strong smell of marijuana as well as its visibility from adjacent parcels or from areas accessible to the general public advertises its presence in the neighborhood and creates both an attractive nuisance and the risk of robbery and armed robbery. 6. Recently, the City planning and police departments have received numerous odor complaints related to the growing of marijuana in residential neighborhoods. The Mendocino County Air Quality Management District ("MCAQMD") reports an accelerating increase in formal air quality complaints associated with the growing of marijuana in residential neighborhoods in the City of Ukiah. In 2002, the MCAQMD received two such complaints; in 2003, five complaints; and by October 31, 2004, it had received over 20 ORDINANCE NO. 1 formal complaints for 2004. In addition, in 2004 MCAQMD received an additional two dozen informal calls complaining about marijuana odor in residential neighborhoods in the City. 7. Several highly publicized recent events have called attention to the impact on public safety caused by the growing of marijuana in residential neighborhoods of the City. In one recent incident a property owner was shot in the hand by an intruder caught stealing marijuana from the property owner's backyard. The intruder gained entrance through a neighboring property and passed the neighbor's bedroom window, carrying a loaded handgun. In 2004 the City police department reports numerous calls to the department to respond to incidents related to the growing of marijuana in residential neighborhoods. 8. At a City Council meeting on November 3, 2004, several members of the public testified to problems in their neighborhoods related to marijuana cultivation, including impacts associated with intense cultivation of mature plants, growing as tall as 14 feet, within a 100 square foot area. These impacts ranged from increased traffic to acts of violence and intimidation. 9. The Mendocino County District Attorney refuses to prosecute persons who grow marijuana as long as the person claims to be growing it pursuant to Proposition 215 and within a 100 square foot area on his or her property. As a result, City Police have been unable to take enforcement action, even where cultivation of marijuana for sale is suspected. 10. The City of Ukiah is a relatively small city with a population of approximately 15,000 people. It has three full-time planners in its Planning Department, one part-time code enforcement officer and one building inspector. It has limited resources available to engage in extensive regulation of marijuana cultivation. 11. Limiting the number of plants per parcel that medical marijuana patients may grow in residential neighborhoods and requiring that that they be grown indoors within a secure structure should alleviate a number of the above-described problems. These requirements should substantially reduce the public nuisance caused by the odor of mature plants. It should make marijuana cultivation less visible and less attractive to young people or potential thieves. It should prevent cultivation for sale and the associated public safety problems. 12. It is the City Council's intention that nothing in this Ordinance shall conflict with federal law as contained in the federal Controlled Substances Act, 21 U.S.C. Section 801 et seq., nor to otherwise permit any activity that is prohibited under that Act. It is further the City Council's intention that nothing in this Ordinance shall be construed to (1) allow persons to engage in conduct that endangers others or causes a public nuisance, (2) allow the use of marijuana for non-medical purposes, or (3) allow any activity relating to the cultivation, distribution, or consumption of marijuana that is otherwise illegal. ORDINANCE NO. 2 SECTION TWO Section 9254 is hereby added to Division 9, Chapter 2, Article 19 of the Ukiah City Code to read as follows. §9254: MARIJUANA CULTIVATION: Section 1. Definitions. As used herein the following definitions shall apply: 1. "Cultivation" means the planting, growing, harvesting, drying, or processing of marijuana plants or any part thereof. 2. "Fully enclosed and secure structure" means a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, and which is accessible only through one or more Iockable doors. 3. "Immature marijuana plant" means a marijuana plant, whether male or female, that has not yet flowered and which does not yet have buds that are readily observed by unaided visual examination. 4. "Indoors" means within a fully enclosed and secure structure. 5. "Mature marijuana plant" means a marijuana plant, whether male or female, that has flowered and which has buds that are readily observed by unaided visual examination. 6. "Outdoor" means any location within the City of Ukiah that is not within a "fully enclosed and secure structure. 7. "Parcel" means property assigned a separate parcel number by the Mendocino County Assessor. 8. "Primary caregiver" means a "primary caregiver" as defined in Health and Safety Code Section 11362.7(d). 9. "Qualified patient" means a "qualified patient" as defined in Health and Safety Code Section 11362.7(f). Section 2. Cultivation of Marijuana. A. Outdoor cultivation: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any premises within any zoning district in the City of Ukiah to cause or allow such premises to be used for the outdoor cultivation of marijuana plants. ORDINANCE NO. 3 B. Indoor cultivation in residential zoninq districts: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any Parcel within any residential zoning district (R-l, R-2, R-3 and CN districts) in the City of Ukiah to cause or allow such Parcel to be used for the cultivation of more than twelve mature and twenty-four immature marijuana plants within a fully enclosed and secure structure on the Parcel. C. Indoor cultivation of marijuana restricted to Qualified Patients and Primary Care Givers: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any Parcel within the City of Ukiah to cause or allow such premises to be used for the cultivation of marijuana, unless the person is a Qualified Patient or Primary Care Giver. D. Public nuisance prohibited: It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any Parcel within the City of Ukiah to create a public nuisance in the course of cultivating marijuana plants or any part thereof in any location, indoor or outdoor. A public nuisance may be deemed to exist, if such activity produces (1) odors which are disturbing to people of normal sensitivity residing or present on adjacent or nearby property or areas open to the public, (2) repeated responses to the Parcel from law enforcement officers, (3) a repeated disruption to the free passage of persons or vehicles in the neighborhood, (4) excessive noise which is disturbing to people of normal sensitivity on adjacent or nearby property or areas open to the public, or (5) any other impacts on the neighborhood which are disruptive of normal activity in the area. Section 3. Enforcement. The violation of this ordinance is hereby declared to be a public nuisance and may be abated by the City Attorney by the prosecution of a civil action for injunctive relief. Cultivation of marijuana on parcels within the City that does not comply with this Section 9254 constitutes a violation of the zoning ordinance and is subject to the penalties and enforcement as provided in Article 22, commencing with § 9350. SECTION THREE 1. COMPLIANCE WITH CEQA. The City Council finds that this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15061(b)(3) (there is no possibility the activity in question may have a significant effect on the environment). In addition to the foregoing general exemptions the following categorical exemptions apply, Sections 15308 (actions taken as authorized by local ordinance to assure protection of the environment), and 15321 (action by agency for enforcement of a law, general rule, standard, or objective administered or adopted by the agency, including by direct referral to the City Attorney as appropriate for judicial enforcement). ORDINANCE NO. 4 2. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 3. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on February 1, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku None None None Adopted on AYES: NOES: ABSENT: ABSTAIN: ,2006 by the following roll call vote: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk ORDINANCE NO. 5 AGENDA SUMMARY ITEM NO 6..q. DATE: February 15, 2006 REPORT SUBJECT: REQUEST AUTHORIZATION TO REPLACE ENGINEERING ASSOCIATE POSITION WITH ASSISTANT ENGINEER The following report will discuss a staffing change proposed for the Engineering department. Please note that the proposed change would not result in an additional position to the City, only a change in classification to more effectively meet the workload demands and technical needs of the Engineering department. The Engineering Department currently has an Engineering Associate position that has provided the engineering staff with field inspections. This position has also assisted with surveying, plans checking and other related duties. The Engineering Associate position has become vacant, and in view of increasing development currently taking place within the City and planned for the near future, the Department has determined the need for more in- house staff review of plans and developer projects, as well as the need for CAD mapping and design. The Assistant Engineer would also be able to perform inspections, as is the case in many other agencies. The Engineering Department requests elimination of the Engineering Associate position and authorization to hire a degreed Engineer for in-house plans checking and engineering design work. The difference in salary range between the Engineering Associate and Assistant Engineer would only be a 5% increase ($3,438/year) in salary to the General Fund. However, due to Fair Labor Standards Act (FLSA) criteria, the Assistant Engineer position would be classified as exempt from overtime, thereby classifying it in the Management Unit. Staff requests authorization for the Engineering Department to eliminate the position of Engineering Associate to hire a degree Civil Engineer. RECOMMENDED ACTION: Council to approve hiring a degreed Assistant Engineer and elimination of the Engineering Associate position. ALTERNATIVE COUNCIL RECOMMENDATIONS: Do not approve request to hire a degreed Assistant Engineer; Refer to Staff for additional information. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Director of Public Works and City Manager Melody Harris, Personnel Officer Candace Horsley, City Manager 1. Public Works Department Organizational Chart APPROVED: Candace Horsl~' ,~*'~~ anager AGENDA SUMMARY REPORT ITEM NUMBER: 6.h. DATE: February 15, 2005 SUBJECT: ADOPTION OF RESOLUTION REVISING FEES FOR COPY COSTS On March 20, 1991, the City Council unanimously approved Resolution 91-47, adopting Procedures for Public Records Act Requests in accordance with the California Public Records Act. At this time, fees for duplicating documents were set at 20 cents per page. Due to recent .changes in copy machine purchases, an analysis of the current direct cost was made, as allowed by law. The analysis was based on the direct cost of two copy machines, the total number of copies made within the term of the maintenance agreement, additional cost-for-copy in excess of the maintenance agreement, the annual fee for the agreement and the cost of paper. Personnel costs for the time to make the copy was factored in, resulting in a per page copy cost of ten cents per page. This decrease in the cost is a result of acquiring more cost-efficient copying equipment and an all-inclusive maintenance agreement. Staff further analyzed recent trends in requests for duplication of the City Council meetings, as well as requests for certified copies of documentation. Direct costs for providing a CD-R copy which includes the cost of the CD-R, jewel case, CD label, and fifteen minutes of personnel cost to oversee the duplication process, resulted in a fee of $3.00 per CD-R. For certified copies of documentation, it is estimated that the time it takes the City Clerk to certify the document including direct cost, results in a fee of $1.00 per certified page, including copying cost. RECOMMENDED ACTION: Approve Resolution Amending the Copy Fee to Ten Cents a Copy ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Gail Petersen, Executive Assistant to the City Manager Candace Horsley, City Manager 1: Proposed Resolution 2: Resolution 91-47 Approved: Candace Horsley, City er RESOLUTZON NO. RESOLUTZON OF THE cTrY COUNCZL OF THE cTrY OF UKZAH REVZSZNG FEES FOR COPY COSTS WHEREAS: . On March 20, 1991, the City Council adopted Resolution 91-47, Establishing Regulations Under the California Public Records Act; and 1 ' Review of the approved fees for providing copies of public records is necessary due to the replacement of previously owned copy machines with mom cost efficient copy machines. NOW, THEREFORE, BE IT RESOLVED that Section 3 "Fees" of Resolution 91- 47 is hereby revised as follows: 3. Fees. Unless another fee is expressly authorized by statute, the custodian shall charge a fee for records furnished under these regulations of 10¢ per page for copies made on City standard copy machines; $3.00 per CD-R for audio or video recordings of public meetings, $1.00 per page for certified copies; and the actual cost to the City if an outside copy service is used, such as where an unusually large number of copies are requested, or specialty services are needed, as in the case of blue prints or unusually large items. PASSED AND ADOPTED this following roll call vote: AYES: NOTES: ABSTAIN: NONE: day of February, 2006, by the A'I-I'EST: Mark Ashiku, Mayor Marie Ulvila, City Clerk AGENDA SUMMARY Item No 6.i. Date: February 15, 2006 REPORT SUBJECT: NOTIFICATION TO COUNCIL REGARDING AWARD OF BID FOR THE EMERGENCY RENTAL OF A LINE TRUCK TO GLOBAL RENTAL COMPANY, INC. IN THE AMOUNT OF $11,523.75 In late December, the Electric Department's line truck failed dialectic testing which made it inoperable for working around high voltage lines. In order to continue daily operations a rental truck was needed while the line truck was being repaired. Quotations for rental rates were requested from Global Rental Company, Inc. and Terex Utilities. Global Rental Company, Inc. was the only one to respond with a rate of $3,500.00 per 28 day period and a $250.00 transportation charge. Since the City's truck will be repaired by the end of February, this rental will require a total purchase order of $11,523.75. Sufficient funds are available in account number 800.3765.303.000. RECOMMENDED ACTION: Receive and file report regarding the award of bid to Global Rental Company, Inc. in the amount of $11,523.75 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 Manager AGENDA SUMMARY Item No 6.j. Date: February 15, 2006 REPORT SUBJECT: NOTIFICATION TO COUNCIL REGARDING THE AWARD OF BID FOR THE EMERGENCY REPAIR OF THE DIGGER DERRICK LINE TRUCK TO TEREX UTILITIES IN THE ESTIMATED AMOUNT OF $16,170.00 The Electric Department's digger derrick line truck failed annual dialectic testing performed by All Cai Equipment Services Inc., making it inoperable for working around high voltage lines. The truck was sent to Terex Utilities who inspected and retested the boom and jib. Removal of the defective boom and installation and testing of a new boom and components was necessary. Terex Utilities is the sole supplier for manufactured parts for this boom. A purchase order was issued to Terex Utilities for $16,170.00. Sufficient funds are available in account number 800.3765.303.000. RECOMMENDED ACTION: Receive and file report regarding the award of bid to Terex Utilities in the amount of $16,170.00 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 Manager AGENDA SUMMARY ITEM NO. 9.a. DATE: February 15, 2006 REPORT SUBJECT: AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT FOR GOLF PROFESSIONAL SERVICES FOR THE UKIAH MUNICIPAL GOLF COURSE WITH JIMMY STEWART AND FRANK JOHNSON, TAYMAN PARK GOLF GROUP, INC. Background Last year, the City Council authorized the issuance of the Request for Proposals (RFP) for Golf Professional Services due to the expiration of the current Golf Professional's contract. The RFP was reviewed by both of the executive committees of the Men's and Women's Golf Clubs, as well as the Park, Recreation and Golf Commission and the Ukiah City Council. The intent of developing the RFP and pursuing open recruitment was to bring the concession contract and services up to current industry standards by acquiring comparative proposals. The RFP identified a comprehensive scope of services which far exceeds the services defined in the current contract. Pages two and three of the RFP describe twenty-two bullet points of services which the contractor will be required to provide. In addition, the RFP includes a detailed description of the overall philosophy of service for the City's golf course and asks the contractor to describe the methodology and practices which will be put in place to meet those service objectives. A copy of the RFP is included for review as Attachment #1. (Continued on Page 2) RECOMMENDED ACTION: 1. Authorize the City Manager to negotiate and execute a contract for Golf Professional Services at the Ukiah Municipal Golf Course with Jimmy Stewart and Frank Johnson, Tayman Park Golf Group, Inc. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine the execution of a contract for Golf Professional Services is inappropriate at this time and remand to staff with further direction. 2. Select an alternative candidate for Golf Professional Services and authorize the City Manager to negotiate and execute a contract. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Golf Professional Services Screening Committee City Council and the Parks, Recreation, and Golf Commission Sage Sangiacomo, Community/General Services Director Candace Horsley, City Manager, Maya Simerson, Community Services Supervisor, and Mary Horger, Purchasing Supervisor. , , Request for Proposals for Golf Professional Services Screening Committee's Evaluation Criteria and Interview Questions Written Proposal and Supplemental Information from Frank Johnson/Jimmy Stewart Written Proposal from Jeff McMillen Photos From Site Tour of Tayman Park Golf Course Reference Survey Questions APPROVED: nager Two additional items included in the RFP communicated the City's desire to research the possibility of developing a practice range facility and expanding on-site food and beverage services. The intent is to work cooperatively with the contractor to investigate the potential to develop a practice range on or off-site. As the development of a practice range may not be feasible, the contract would only require the Pro to work with the City to attempt to do so but, if not feasible, will not require it. A bar and grill type facility is a standard service at most golf courses and can significantly contribute to the facilities revenue. Currently, a very limited food and beverage service is offered'. Furthermore, many individuals have expressed concerns with regard to the service of alcoholic beverages at the same counter that golfers, including families and minors, must pay and register to play. The RFP included language that requests the contractor to develop a plan for the operation of an expanded type of grill and banquet facility. However, if not feasible the contract would not require it. Request for Proposal Process The RFP was issued on October 18, 2005 and was advertised in both the Ukiah Daily Journal and the Press Democrat. In addition, the RFP was direct mail to more than 40 regional courses, numerous Professional Golf Association (PGA) related affiliates and variety of electronic media sources that specifically target PGA professionals. Four proposals were received by the November 22, 2005 deadline from: - Tom Bugbee, Golf Solutions Ca (Adobe Creek Golf and Peacock Gap Golf Clubs) - Jeff McMillen (Ukiah Municipal Golf Course) - Frank Johnson/Jimmy Stewart (Tayman Park Golf Course) - John E. Theilade Jr. Golf Solutions CA did not respond to the request for an oral interview and was subsequently dropped from the review process. The other three applicants complied with the request for an oral interview. Screening Committee In accordance with the RFP, a five panel screening committee was established to evaluate the written proposals and conduct oral interviews. Per Council's direction to ensure that the golfing community was well represented and had a significant voice in the selection process, the screening committee consisted primarily of members of the Men's and Women's Golf Clubs whom were selected by their respected executive boards. Prior to selection, staff expressed to the leadership of each Club the importance of a fair process and the need to select representatives would not be biased toward any one candidate. Staff was present at the Men's Club Executive Board meeting when the screening committee representatives for the Men's Club were considered and selected. The Board took great care in their decision to ensure impartiality. The Men's Club representatives were the current club president, Paul Moore and at-large member, Paul Shimmin. The Women's Club representatives were the club president, Shirley Dietrick and at-large member, Raylene Neustel. Maya Simerson, the Community Services Supervisor, acted as the City's representative on the panel. Each of the members of the screening committee received copies of the proposals for advance review. The committee developed an extensive list of questions and evaluation criteria, which are included for review as Attachment #2. The criteria included more than 26 rating factors that were specifically designed to evaluate every aspect of a candidate's ability to successfully function as the golf professional for the Ukiah Municipal Golf Course. Furthermore, the interview questions were designed explicitly to explore the candidate's aptitude and capabilities to fulfill the requirement specified in the RFP including their philosophy and concept of golf operations as well as their philosophy and methodology for providing specific golf related programs. The committee conducted an extensive oral interview with each of the applicants lasting more than an hour for each candidate. In addition to the questions listed in the attachment, the committee explored in more depth many of the details outlined in each of the candidate's proposals. Committee members individually evaluated and ranked each of the candidates based on their written response to the RFP and oral interviews. The following are the results of the Screening Committee: Ranking Candidates Score 1. Frank Johnson/Jimmy Stewart 93 2. Jeff McMillen 81 3. John Theilade, JR. 79 The #1 ranking for Frank Johnson/Jimmy Stewart was an independent and unanimous evaluation of each member of the Screening Committee. The general feeling of the committee was that Frank Johnson/Jimmy Stewart had the aptitude and proven record as golf professionals to develop and implement the necessary business systems and programs to bring the operations and services of the Ukiah Municipal Golf Course to within industry standards in addition to having desires consistent with the community. Specifically, members of the committee recognized the abilities of the Frank Johnson/Jimmy Stewart to · Implement and develop a year round junior golf program · Expand food and beverage services including the sale of sandwiches year round · Put into service a fully electronic and integrated point of sale system with critical accounting solutions and online tee reservations · Implement and maintain an on-line marketing program that would include a website, collection of customer data and a platform to advertise services and discounts · Provide professional advice, oversight and recommendations for course maintenance activities and improvements including a proven record of successful implementation of major projects such as a driving range and tee, fairway, and green renovations. · Maintain a customer friendly focus and provide a great golfing experience for all players · Willingness to develop a strong partnership with the golfing community as well as City staff and officials Proposals and supplemental information from each of the top two candidates are included as Attachment #3 (Frank Johnson/Jimmy Stewart) and Attachment #4 (Jeff McMillen). Proposals from the other candidates are available upon request. Post Interviews and Contractual Viewpoints At the conclusion of the screening committee's evaluation, City Staff conducted separate post- interviews with the top two ranked applicants including Frank Johnson/Jimmy Stewart and Jeff McMillen. In the post interviews, staff explored both contractual and service related issues. One of the main goals of the post interviews was to develop an understanding of the fiscal elements of a potential contract with either one of the candidates. The following chart provides a summary of the major fiscal elements of the City's current contract for professional services and is provided as a matter of reference to understanding each of the applicants viewpoints expressed in the post interviews. Fiscal Elements of the Current Contract City Paid To The Contractor Green Fees and Memberships Contractor Paid To the City Merchandise, Food, and Beverage Cart Rentals Lessons Marketing Credit Cart Processing Fees ~6% of the first $150,000 over $150,000; 6% Flat Rate of $2,500 per year 0% $1,000 match All Fees Frank Johnson/Jimmy Stewart expressed the following contractual viewpoints during the post interview: · Requested simplifying the contract to a flat 6% for all shared revenue and will include the gross cart rental revenue in the calculations of which the City currently receives only a flat rate of $2,500 per year. · Would implement an on-line marketing program from Legendary Marketing that would include a website, collection of customer data and a platform to advertise services and discounts at no cost to the City (valued at $6,800 per year). · Implement and maintain an electronic Point of Sale System including on-line tee reservations at no cost to the City (valued at $7,000 per year). · The potential benefit to the City of the on-line marketing and point of sale system programs would be to increase revenue by increasing the number of rounds played, especially during Iow play periods. · Credit Cart Processing fees would be shared; City would assume the fees when a card is used to pay for greens, memberships, and cart path fees; Pro would pay fees for merchandise, lessons, food, beverage and cart rentals. · Would implement the PGA's First Tee Program which is a year-round instructional program for youth of all socioeconomic backgrounds. In addition, staff conducted a site visit of the Tayman Park Golf Course in Healdsburg currently operated by Mr. Stewart and Mr. Johnson. The purpose was to develop a familiarity with the operations like that already known of the Ukiah Municipal Golf Course, currently operated by Mr. McMillen. Some photos of that site tour are included as Attachment #5. Jeff McMillen expressed the following contractual viewpoints during the post interview: · Believes that the current contract is equitable for both the City and Pro except for the credit card processing fees which are currently assumed by the Pro and expressed a desire to renegotiate. · Would be willing to implement an electronic point of sale system with the cost to be shared between the City and Pro. · Currently offers only one three-day junior golf workshop per summer. He indicated that he would be willing to offer more junior golf workshops to satisfy existing demand. In addition to the post interviews, staff conducted a reference check of both the applicants using the identified contacts in each of their proposals. Each person of reference was presented a series of questions and asked to rank the candidates on a scale of 1 to 10, with 10 being the highest score. The questions used in this process are included as Attachment #6 for review. While contact with all listed references was attempted, at the time of this report four from each of the candidates' list had responded to the request. The results of the reference survey are as follows: Frank Johnson/Jimmy Stewart had an average score of 8.9 and Jeff McMillen had an average score of 7.8. Park, Recreation, and Golf Commission Review On February 7, 2005, the Parks, Recreation and Golf Commission held a special meeting to discuss and consider the proposals for golf professional services. The Commission conducted a two and half hour meeting at which staff presented an overview of the process and the screening committee's results. The top two candidates were advised of the meeting time and encourage to be on-hand to answer questions from the Commission. Frank Johnson/Jimmy Stewart were present at the meeting and responded to a number of questions from Commission members and members of the public. Approximately 25 members of the public were in attendance with nearly half contributing to the discussion during the public comment portion of the agenda. Some public members expressed a desire to retain Mr. McMillen and stated they had a high level of satisfaction with the current pro's operations and also cited the previously submitted petition. Others raised concern that the Johnson/Stewart proposal looked great, but questioned their ability to implement specific highlighted objectives including the point of sale system, expanded junior golf program, and the desire to explore the feasibility of developing a driving ranging for the facility. Other members of the public expressed the need for a positive change and renewed energy like that presented by Mr. Johnson/Stewart. Subsequent to the meeting, other golfers have expressed their thanks for a fair selection process and felt that Mr. Johnson/Stewart were talented and knowledgeable. The Commission had a substantial discussion regarding Mr. Stewarts and Mr. Johnson desire to expand the PGA's nationwide First Tee Junior Golf Program to the Ukiah Municipal Golf Course. Mr. Stewart gave a detailed overview of the program which is also included as part of their submitted material (Attachment #3; tab #6 within the folder). Mr. Stewart described the mission of the program as "to impact the lives of young people by providing learning facilities and educational programs that promote character-development and life-enh, ancing values through the game of golf." In order to bring the First Tee program to the North Coast and to promote junior golf, Mr. Stewart helped form the First Tee of the North Bay, a non-profit organization. The non-profit is able to receive grant funds that are made available by the PGA and affiliates specifically to support the First Tee junior golf program. The non-profit is governed by a nine member board of directors, representing a variety of regional businesses. Mr. Stewart indicated that there is flexibility to add additional directors to represent additional areas that may become involved including from the Ukiah area. Mr. Stewart was instrumental in the formation of the non-profit and has been hired by the board of directors as its executive director and receives compensation for that role. Mr. Stewart represents that he initially devoted a significant amount of time at no compensation to laying the groundwork for the First Tee of the North Bay. Grant funds and donations are used to support the administration of the program, lessons, equipment, and fee subsidies to pay for rounds of golf. 5 Commission members requested that the contract include a section requiring an annual evaluation and also wanted to be sure that the contract contained a default and breach section. The contract is being modified to include an annual evaluation between the City and Contractor with the intent to maintain quality performance, communication, and customer satisfaction as well as to address any issues that may have arisen. In addition, the draft contract already contains a detailed breach section to protect the interest of the City and ensure satisfactory performance of the items identified in the contract including the Contractor's obligations. Commission members and some members of the public questioned if the rates would increase for greens, carts, or food. The City of Ukiah retains the exclusive rights to set rates for green fees, memberships, and cart path fees and these rates are fixed by a resolution of the City Council. While the contractor retains the rights to set rates for merchandise, cart rentals, food and beverage, the sample contract states that the rates shall be comparable to those of other public golf courses. Mr. Stewart has indicated that it is in the best interest of the concessionaire to maintain Iow and competitive rates. The Commission also wanted to be sure that if the contract was awarded to Frank Johnson/Jimmy Stewart that there would be an identified Pro whom would be the lead for operations at the Ukiah Municipal Golf Course. Frank Johnson was identified has the lead individual for the Ukiah operation. Mr. Johnson is a PGA class "A" golf professional and a detailed profile is included within the proposal (Attachment #3; tab #2). Subsequently, staff has verified Mr. Johnson's status with the PGA. Mr. Stewart re-emphasized that the incorporation of his partnership with Mr. Johnson was done for the purpose of tax reporting and they are not a management company. Mr. Stewart and Mr. Johnson have stated that they have complementary skills that will be of particular importance in accomplishing the goals outlined in the RFP and draft contract. Specifically, Mr. Stewart has a specialized background in course design having previously worked for Robert Trent Jones and Ron Fream Golf Design Company. After substantial discussion and consideration, the Parks, Recreation and Golf Commission voted in a 6 to 1 vote to recommend to the City Council the proposal from Frank Johnson/Jimmy Stewart, Tayman Park Golf, Inc. A draft contract with Tayman Park Golf Group inclusive of the issues identified at the Park, Recreation, and Golf Commission along with the specific terms outlined during the post interview will be presented at the City Council Meeting. For initial review, a sample contract was included in the original RFP and is included as part of Attachment #1. 411 STRE~ Attachment # _~ ,-'~,, October 18, 2005 To Whom It May Concern: The City of Ukiah invites proposals for Golf Professional Services as per attached Request for Proposals #E26174. Sea/ed proposals will be received until 5 p.m., November 22, 2005, at the office of the City Clerk, Attn: Marie Ulvila, 300 Seminary Avenue, Ukiah, CA 95482. Fax or e-mailed copies will not be accepted. It will be your sole responsibility to have proposals delivered to the City Clerk before the closing hour and date. Late bids will not be considered. Questions regarding the specifications can be directed to Sage Sangiacomo, Director of Community/General Services, at 707-463-6221. Thank you, PURCHASING DEPARTMENT Contact Info: Mary Horger Purchasing Agent City of Ukiah (707) 463-6233, Fax: (707) 463-6234 E-mail: maryh @cityofukiah.com CITY OF UKIAH REQUEST FOR PROPOSALS No. E26174 GOLF PROFESSIONAL SERVICES PROPOSAL DUE NOVEMBER 22, 2005 I. INTRODUCTION The City of Ukiah is seeking proposals for a qualified member of the Professional Golf Association to operate and provide golf professional (Pro) and concession services at Ukiah Municipal Golf Course. The City anticipates a multi-year agreement for the work requested in this RFP and is seeking an individual experienced in working with public agencies and municipal golf course management. All submittals shall include all pertinent professional data, historical background, and detailed responses to the information requested in this RFP and shall be written in an appropriate narrative text, tabular materials and illustrative graphics in such a manner as to be easily discernible to the public and City staff. All proposals must be submitted to the office of the City Clerk at 300 Seminary Avenue, Ukiah, CA by 5:00 p.m. on Tuesday, November 22, 2005. II. BACKGROUND The City of Ukiah is a beautiful community in the heart of California wine country and approximately one hour from the Mendocino Coast. The town is located approximately 60 miles north of Santa Rosa, CA on the Highway 101 corridor with a full time population of slightly more than 15,070. Ukiah is also the retail and service hub to an area reaching a 50 mile perimeter and a daytime service population of approximately 45,000 people. The Ukiah Municipal Golf Course is a 5,850 yard, eighteen hole, par 70 facility. Amenities include proshop, cart storage buildings, and community/dining room. The golf course averages between 35,000 and 45,000 rounds per year. The community room is currently available for rent to the public for private and public events. However, it is the City's intent to convert the community room into full time food and beverage service with banquet room. The City is also interested in the development of a full service practice/range facility either on or off-site. Golf course maintenance is the responsibility of City maintenance crews - however, the Pro is expected to actively participate in the scheduling and advising of maintenance activities. Groups involved with the golf course include a very active Men's and Women's Clubs and the City's Parks, Recreation, and Golf Commission. The Pro is expected to actively support these groups through meeting attendance as needed and coordinating events. III. OPERATOR RESPONSIBILITIES The minimum scope of services and responsibilities of the operator shall include tasks described below: Manage all pro shop operations including collection and accounting of daily greens fees, categorical recording of rounds played, and selecting and acquiring all golf related merchandise and supplies for retail merchandising adequate to respond to demand. · Develop and implement critical business systems including but not limited to scheduling all tournaments/events and daily tee times, collecting all fees, preparing and submitting audits, completing asset inventories, developing personnel management procedures consistent with City policy, paying all taxes and license fees, and providing quarterly reports and accounting of business activity to the City. · Operate and maintain a fleet of carts adequate to respond to demand for public rental. Maintain rental sets of men's, women's, and youth golf clubs and push carts adequate to respond. · Maintain a pro shop lounge area that shall include (at a minimum) seating, tables, and one large screen television with cable/satellite programming. 2of7 · Develop a complete .golf instruction program and employ at least one other fulltime golf professional with sufficient knowledge and experience to provide quality golf instruction. · Develop and implement a comprehensive junior golf development program. · In cooperation with the City, develop implement a comprehensive marketing strategy for promotion of the golf facility including but not limited to promotion of special group and tournament play programs and recruitment of out of area play, particularly during low play periods. · Act as liaison between the City and various golf organizations affiliated with the golf course and actively representing the City to the public in matters related to the Golf Course and its operation. · Actively coordinate golf activities with golf course maintenance to minimize interference with play and smooth administration of tournaments and special events. · Provide professional advice, oversight and recommendations for course maintenance activities and improvements. · Prepare and submit an annual operation budget for the operation of concession and lesson activities. · Provide limited food and beverage concessions and develop a plan for the operation of a full service food and beverage facility on site. · In cooperation with the City, develop of a full service practice range facility on or off-site. · Maintain appropriate insurance in accordance with Exhibit "B" of the attached sample agreement. · Enforcement of all rules and regulations which are adopted by the City Council. · Regulating the rate of play and play and conduct of the players in such a way as to provide for the safety of the player and others. · Daily policing of the Golf Course through a regularly scheduled marshalling program at key times, minimizing slow play and preserving order, including keeping off trespassers, preventing injury to the Golf Course by players and others. · Preventing any person from playing without first having paid green fees unless otherwise directed by City. · Acting as starter of play, and supervising cart usage. · Keeping the Golf Course and practice area open for play during a schedule of reasonable hours approved by City. · Administration of liability insurance program for privately owned carts on the golf course. Based on the above general information, the City has prepared this Request for Proposals for distribution to applicants. All related information necessary to submit a proposal is provided in the following pages for your consideration. IV. INSURANCE REQUIREMENTS The insurance requirements are set forth in "Exhibit B". V. PROPOSAL PROCEDURES A. Form and Style of Proposals. Describe in a detailed narrative, with supporting data or tabular materials as appropriate, the proposed approach and procedures to be used in completing the tasks described in the Scope of Services capable of meeting the City's expectations as described. Include a 3of7 B. Ce proposed schedule showing implementation of the various tasks as needed. The final agreement with the Pro will include a schedule for completion of the major milestones based upon selected consultant's schedule. 2. Proposals shall include a detailed description and history of the applicants experience related to and necessary for the successful completion of the tasks defined in this RFP. Include references and contact information. 3. Proposals shall include a statement as to whether the applicant is sole proprietor, partnership or corporation, or other legal entity and include contact information. 4. Each proposal shall include a statement that all information included in the proposal is true and accurate as represented by the presenter. Any proposal containing information proven false shall be considered rejected by the City. Submission of Proposals. 1. All copies of the proposal and any related documents shall be submitted in a sealed envelope clearly stamped Golf Professional Services Proposal in a location on the face of the envelope so as to be easily identified. Ten (10), (full color it? applicable), copies of the proposal must be submitted to the office of the City Clerk at 300 Seminary Ave, Ukiah, CA by 5:00 p.m. on Tuesday, November 22, 2005. SUBMIT PROPOSALS TO: Marie Ulvila, City Clerk City of Ukiah 300 Seminary Avenue Ukiah, California 95482 Any questions regarding this request for proposals may be directed to Mr. Sage Sangiacomo, Community Services Director at (707) 463-6221. 2. Proposals received after 5:00 p.m. on November 22, 2005 will not be considered, and will be returned unopened. Proposals that are not submitted in accordance with the specifications of this RFP shall be considered non-responsive. 3. Oral, Facsimile, or electronic proposals will be considered invalid and will not' be accepted. 4. Applicants are strongly encouraged to visit the facility prior to submitting a proposal - failure to do so will in no way relieve the applicant from its obligation to comply in every detail with all provisions and requirements of the contract, nor will a plea of ignorance of such conditions and requirements be accepted as basis for any claim whatsoever by the contractor for additional compensation. Consideration of Proposals. 1. It is the intent of the City to award a contract to the applicant whose proposal is in the best interest of the City, and based upon but not limited to the applicants demonstrated experience and ability. Applicants selected for an oral presentation shall be prepared to present evidence of professional and financial ability to perform. 2. Selection of the successful applicant shall be based upon a qualitative comparative analysis of professional qualifications, quality of proposal and oral presentation as opposed to a quantitative analysis of proposals. 3. The City shall rank acceptable proposals received and conduct oral interviews with the top ranking applicants. The City will then initiate negotiations with the top candidate(s). 4of7 . Should negotiations be unsuccessful, the City will then initiate negotiations with the next highest-ranking candidate(s). As part of the evaluation process, the City may contact the applicant's current or most previous employer or visit facilities currently operated by the applicant. De Agreement for Services Attached to this RFP is a sample agreement for professional services. A substantially similar agreement shall be executed between the City and the successful applicant and shall include the specific terms and conditions resulting from the negotiation process. Ee References Provide a list of at least three client references who have received services from you. Provide names of contact person, addresses and telephone numbers for all references. Fe Exceptions Identify any exceptions you are proposing with respect to the Scope of Services. Additionally, if there are any exceptions to the City's insurance requirements and/or the City's contract provisions as shown in the attached exhibits, the applicant should list the exceptions in the proposal. VI. PHILOSOPHY AND CONCEPT OF OPERATION STATEMENTS The following information is intended to assist with the preparation of the proposal and solicit information from the applicant as to the philosophy of the City and the methodology by which the applicant will deliver services. The proposal narrative should include a philosophy statement demonstrating the applicants approach to service delivery to the general golf community with specific reference to the tasks defined in this RFP. Examples should include: Description of the applicant's goals and overall approach to operation of golf facilities with specific reference as to how these goals apply to Ukiah. · Delineate the applicants approach to customer service and relationships with local golf groups affiliated with the golf course. State specific examples of past experience. · Describe the methods and basis for budget development and fiduciary responsibility. · Describe business practices and methods. · Describe methods and philosophy for evaluating services. · Describe the applicant's anticipated relationship with the City and any advisory committees. · Describe marketing strategies and approach. · Provide a description of your philosophy towards and methodology for providing the following programs: o 2. 3. 4. 5. Marshalling program and rate of play Use of private carts on the course Fee structure development Instructional programs Establishment of discount programs, play incentives, resident priority, and comps. Senior play and related discounts 5of7 . Use of facility by schools and development of junior programs Tournament policies Pro shop design and dress code for golf professional staff VII. EXPERIENCE Minimum qualifications include that the applicant has at least five (5) years experience of management responsibility in at least a similar size facility. Proposals should include a detailed description of all previous experience in working with public/private agencies and list specific references and appropriate contact information. Applicants must include any golf management operations contracts, which have been cancelled or otherwise terminated in the last ten years with appropriate contact information. Applicant shall list any additional golf related operations currently under contract and the remaining length of those contracts. VIII. PERSONNEL REQUIREMENTS Proposals shall include a list of the applicants anticipated personnel to be employed in the Pro shop and the qualifications and duties for each position. If a person other than the applicant is intended to be the Head Pro present, then that shall be specified in the proposal. Operator is expected to emplo3~ at least one other fulltime professional with sufficient knowledge and experience to provide quality golf instruction. The City expects the current full time staff at the Ukiah Municipal Golf Course, other than the Pro, to be given first priority for hire by the incoming applicant or to be retained for a reasonable period of time to be negotiated in the agreement. IX. RIGHT OF REFUSAL The City of Ukiah reserves the right to reject any and all proposals; to waive any irregularities and to accept the proposal that appears to be in the best interest of the City. 6of7 EXHIBIT B INSURANCE REQUIREMENTS Pro shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Pro, his agents, representatives, employees or subcontractors. A. MINIMUM SCOPE OF INSURANCF, Coverage shall be at least as broad as: 1. Insurance Services Office from number GL 002 (ed. 1/73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001). 2. Worker's Compensation insurance as required by the Labor Code of the State of California and Employers Liability insurance. B. MINIMUM LIMITS OF INSURANCE Pro shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Workers' Compensation and Employers Liability: Workers' compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. C. DEDUCTIBLES AND SELF-INSURED RETENTIONS Any deductibles or self-insUred retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self- insured retentions as respects the City, its officers, officials, employees and volunteers; or the Pro shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. OTHER INSURANCE PROVISIONS The policies are to contain, or be endorsed to contain, the following provisions: General Liability and Automobile Liability Coverages a. The City, its officers, officials, employees and volunteers are to be covered as insureds as respects; liability arising out of activities performed by or on behalf of the Pro, products and completed operations of the Pro, premises owned, occupied or used by the Pro, or automobiles owned, leased, hired or borrowed me Fe G, by the Pro. The coverage shall contain no special limitations on the scope of protection afforded to the City, its officers, officials, employees or volunteers. b. The Pro's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the Pro's insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The Pro's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and vOlunteers for losses arising from work performed by the Pro for the City. 3. All Coverages Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a Best's rating of no less than A:VII. VERIFICATION OF COVERAGE Pro shall furnish the City with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be on forms provided by the City. Where by statute, the City's workers' compensation related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. SUBCONTRACTORS Pro shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. SAMPLE AGREEMENT FOR GOLF PROFESSIONAL AND GOLF COURSE CONCESSION SERVICES THIS AGREEMENT made and entered into this of 2005. by and between the City of Ukiah, a Municipal Corporation. Hereinafter referred to as "CITY" and hereinafter referred to as "CONTRACTOR" consists of the following mutual covenants, conditions and promises: WITNESSETH WHEREAS, the CITY owns the Ukiah Municipal Golf Course an eighteen hole public facility with a Pro Shop, clubhouse, food and beverage service, and surrounding grounds located at 599 Park Blvd., Ukiah, CA; and WHEREAS, it is the desire of the CITY to contract for Golf Professional and Golf Course Concession Services at the Ukiah Municipal Golf Course as herein described; and WHEREAS, the CITY has solicited proposals for the services as set forth herein; and NOW, THEREFORE, IT IS AGREED AS FOLLOWS: CITY hereby grants CONTRACTOR the exclusive rights to Golf Professional and Golf Course Concession services, as described herein, at Ukiah Municipal Golf Course. RECITALS The parties are entering into a contract whereby the Contractor will continue to manage and operate the Pro Shop, subject to the terms and conditions specified below. AGREEMENTS In consideration of the terms and conditions contained in this Agreement, the parties hereto agree as follows: 1. TERM. The initial term of this Agreement shall commence upon execution of this Agreement and shall expire on ,2007. The term of this Agreement may be extended for two (2) additional periods of two (2) years each commencing on the expiration of the initial or extended term upon the mutual agreement of the parties. The foregoing may be exercised by the Contractor delivering to the City, at least ninety (90) days prior to the expiration of the initial or extended term, written notice of request for such extension. If such notice is not so given, the foregoing extension provision shall terminate and no longer be of any force or effect. The extension of the term of this Agreement pursuant to the foregoing shall be subject to a review of the method and manner by which the Contractor has met the terms and conditions of this Agreement. Contractor and City may agree to adjust those terms and conditions which, from experience, indicate a need for revision in order to facilitate and enhance Contractor's service to the general public. All terms and conditions which are not revised shall remain in full force and effect upon an agreement to extend this Agreement. 2. PRO SHOP SUBLEASE. City hereby subleases to Contractor the Pro Shop. For the purposes of this Agreement, the Pro Shop shall include the sales area of the clubhouse and exterior deck area which are more particularly shown on Exhibit A attached hereto. Contractor shall use the Pro Shop only for the management and operation of the Golf Course, and the sales and rental of golf related products and for no other purpose. 3. INDEPENDENT CONTRACTOR The CONTRACTOR'S relationship to the City in the performance of this Agreement is that of an independent contractor. The personnel performing services under this Agreement shall at all times be under the Contractor's control and exclusive direction, and shall be employees of the Contractor, and not employees of the City, and shall not be entitled to the benefits provided by the City to its employees, including but not limited to pension plans, health insurance and unemployment insurance. 4. EQUAL EMPLOYMENT OPPORTUNITY In connection with the execution of this Agreement, Contractor shall not discriminate against any employee or applicant for employment because of race, religion, color, sex or national origin. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during their employment without regard to their race, religion, color, sex or national origin. Such actions shall include but not be limited to the following: advertising, layoff or termination, rates of pay or other forms of compensation. 5. OBLIGATIONS OF CONTRACTOR a. Contractor shall manage, operate and supervise play on the Golf Course, including but not limited to: Manage all pro Shop operations including collection and accounting of daily greens fees, categorical recording of rounds played, and selecting and acquiring all golf related merchandise and supplies for retail merchandising adequate to respond to demand. Develop and implement critical business systems including but not limited to scheduling all tournaments/events and daily tee times, collecting all fees, preparing and submitting audits, completing asset inventories, developing personnel management procedures consistent with City policy, paying all taxes and license fees, and providing quarterly reports and accounting of business activity to the City. Operate and maintain a fleet of carts adequate to respond to demand for public rental. Maintain rental sets of men's, women's, and youth golf clubs and push carts adequate to respond. Maintain a pro shop lounge area that shall include (at a minimum) seating, tables, and one large screen television with cable/satellite programming. Develop a complete golf instruction program and employ at least one other fulltime golf professional with sufficient knowledge and experience to provide quality golf instruction. Develop and implement a comprehensive junior golf development program. In cooperation with the City, develop implement a comprehensive marketing strategy for promotion of the golf facility including but not limited to promotion of special group and tournament play programs and recruitment of out of area play. Particularly during Iow play periods. Act as liaison between the City and various golf organizations affiliated with the golf course and actively representing the City to the public in matters related to the Golf Course and its operation. Actively coordinate golf activities with golf course maintenance to minimize interference with play and smooth administration of tournaments and special events. Provide professional advice, oversight and recommendations for course maintenance activities and improvements. · Prepare and submit an annual operation budget for the operation of concession and lesson activities. Provide limited food and beverage concessions and develop a plan for the operation of a full service food and beverage facility on site. In cooperation with the City, develop of a full service practice range facility on or off-site. Maintain appropriate insurance in accordance with Exhibit "B" of the attached sample agreement. · Enforcement of all rules and regulations which are adopted by the City Council, which rules and regulations so long as they remain in effect shall be deemed to be incorporated herein and by reference made a part of this Agreement. · Regulating the rate of play and play and conduct of the players in such a way as to provide for the safety of the player and others. · Daily policing of the Golf Course through a regularly scheduled marshalling program at key times, minimizing slow play and preserving order, including keeping off trespassers, preventing injury to the Golf Course by players and others. · Preventing any person from playing without first having paid green fees unless otherwise directed by City. · Acting as starter of play, and supervising cart usage. · Keeping the Golf Course and practice area open for play during a schedule of reasonable hours approved by City. · Administration of liability insurance program for privately owned carts on the golf course. b. Rental Carts. Contractor shall provide and maintain at its sole expense a fleet of golf carts adequate to respond to demand, including tournaments, including the responsibility for the following: · Assigning the golf cart to the proper individual. · Instructing the renter how to use the cart properly, and enforcing proper usage on the Golf Course. · Directing the renter to and from first and tenth tee as needed. · Requesting driver's license or other suitable identification from renter as a deposit. · Moving carts in and out of proper housing daily. · A thorough washing of each cart as frequently as needed · Fuel for carts. · Proper repair of body damage to carts. · 90% of all carts must be operable at all times. · Proper maintenance each time cart is brought in to ensure safe mechanical condition. c. Other limitations Contractor shall not do any of the following without having first obtained the written consent of City thereto, which the City in its sole discretion may deny: · Install or permit installation or use of any vending machine, pinball machine or similar equipment. · Attach, hang, or otherwise affix any sign or advertising matter anywhere on the Golf Course. · Allow any newspaper rack or other object to be placed and maintained outside of the Pro Shop whether attached thereto or freestanding, or anywhere on the Golf Course. · Permit vendors to display or sell goods, wares or merchandise either within the interior or exterior of the Pro Shop, or anywhere on the Golf Course. d. Standard of Performance Contractor agrees to provide a high standard of performance in the execution of all obligations and duties as herein provided, particularly with respect to service given directly to the publicizing the golf course. The City reserves the right through the office of the City Manager to instruct the Contractor as to the standard of performance when deemed necessary. e. Contractor Employees Contractor shall retain at all times on the premises during hours of operation a manager who is experienced in the operation of golf courses, is an employee of Contractor and is authorized to represent and act for Contractor in matters pertaining to the exercise of the requirements hereby stated and to the performance of the duties and obligations required in this agreement. Contractor shall keep City informed in writing of the status of key positions. Contactor shall hire no employee without approval of City. Employees of Contractor who have contact with the public shall be clean, courteous and neat in appearance and demeanor at all times. Contractor shall at all times have sufficient personnel at the premises to provide a level of service customary in the industry. Within ten (10) days following receipt of written notice from City that a particular employee of Contractor is not satisfactory to City for whatever reason, Contractor shall dismiss that employee forthwith. f. No Preferential Treatment. Contractor shall not grant any preferential treatment to any individual or group of individuals, including but not limited to granting of starting time or playing privileges, except as authorized in the rules and regulations adopted by the City. All Complimentary rounds of play must be approved by City in writing prior to granting by Contractor. 6. PAYMENTS BY CONTRACTOR a. Definition of Gross Revenue The term "Gross Revenue" as used in this Agreement shall mean the gross selling price of all products and services sold or rented in or from the Pro Shop or Golf Course by Contractor, its employees, sub-contractors or agents, whether for cash or on credit, without exclusion, except as specifically excluded by this subsection or as otherwise agreed to in writing by City. Gross Revenue shall include the value of all products or services given away or traded. Gross Revenue shall not include sales and use taxes collected from customers. The term "Merchandise Gross Revenue" as used in this Agreement shall mean all Gross Revenue attributable to the sale or rental of products or merchandise. The term "Cart Rental Gross Revenue" as used in this Agreement shall mean all Gross Revenue attributable to the rental of golf carts, with the exception of money received from outside tournament cart rentals which do not generate profit to Contractor. The term "Golf Lesson Gross Revenue" shall mean all Gross Revenue attributable to golf lessons given at the Golf Course or Driving Range. b. Amount of Payments In consideration of the Sublease of the Pro Shop and the right to operate the Golf Course, Contractor shall pay to City the following percentages of Gross Revenue as defined above: percent ( percent ( percent ( percent ( %) of Merchandise Gross Revenue %) of Golf Cart Gross Revenue %) of Golf Lesson Gross Revenue %) of Food and Beverage Gross Revenue (if included) c. Time of Payment. Contractor shall make the payments to City on a quarterly basis. Each payment shall be received by City not later than 30 days following the end of each quarter. Contractor shall submit a statement together with each payment showing the total amount of Gross Revenue by category for the previous month. If Contractor fails to pay any amount when due, COntractor shall also pay City a late charge in the amount of ten percent (10%) of the amount due plus interest on such amount at a rate of one and one-half percent (1-1/2%) per month or the maximum amount permitted by law, whichever is less. Contractor may make the foregoing payments more frequently than monthly at its option. '7. PAYMENTS BY CITY. a. Greens Fees In consideration of the operation of the Golf Course by Contractor, City shall pay to Contractor the sum of percent (%) of gross revenue received from greens fees. Payment shall be made within thirty (30) days following the close of each quarter. b. Reimbursement of Credit Card Fees City shall reimburse Contractor for commercially reasonable credit card processing fees paid by Contractor to credit card companies relating only to customers who pay green fees by credit card. Contractor shall submit a claim for such reimbursement together with documentation from the credit card companies showing such processing fees. Claims shall be submitted quarterly. City shall reimburse Contractor within thirty (30) days following receipt of the properly documented claim by Contractor. 8. FEES AND PRICES. Green fees, reservation fees, and tournament fees (collectively "Golf Fees") shall be fixed by a resolution of the City Council adopted from time to time, which resolution, so long as it remains in effect, shall be deemed to be incorporated herein by reference and made a part of this Agreement. Other fees and prices, including, but not limited to, cart rental fees, merchandise prices,' food and beverage prices, and lesson fees shall be set by Contractor but in any case shall be comparable to those of other public golf courses in the area. 9. RECEIPT OF REVENUE. a. Re.qister of Receipts All Gross Revenue, including but not limited to all Golf Fees, Merchandise Gross Revenue, Food and Beverage Gross Revenue, Cart Rental Gross RevenUe, and Lesson Gross Revenue shall be processed through cash registers and in the manner prescribed by City. b. Deposits All Golf Fees shall be deposited daily in accordance with written instructions provided by City. Such deposits shall include all cash received together with the amount of all checks and credit card payments, even if Contractor has not yet cashed the checks or received payment from the credit card companies. Contractor shall not be entitled to any payment or credit as a result of any check that cannot be cashed or any credit card payment that is not honored by the credit card company, as such risks of non-payment are assumed by Contractor. c. Fiduciary Responsibility Contractor shall hold in a fiduciary capacity, and not make any personal or other use of Golf Fees, or the portion of other gross revenue required to be paid by Contractor to City, received or collected by Contractor. d. Errors Contractor shall be responsible for any shortages in monies collected on behalf of and required to be paid to City. e. Access Without Fee Contractor shall not allow any person to play golf, take golf lessons, use a golf cart, or use any facilities of the Golf Course who has not first paid the prescribed fees, unless otherwise agreed to in writing by the City. f. Activity Reports Contractor shall prepare and deliver to City a monthly report of the number of rounds played by each class of players and the amounts collected for each class of player. 10. ACCOUNTING AND FINANCIAL STATEMENTS. a. Financial Record Keepin.q. Contractor shall install and maintain a system of records and accounts in a form approved by the City, from which the amounts of fees, gross revenues from all sources, and other financial data necessary to fulfill the requirements of this Ao~reement readily can be ascertained. Contractor shall permit City, through its designated representatives, to inspect and audit such accounts and all other records of Contractor at any time upon demand. On or before the 15th day of each month during which this Agreement remains in force, Contractor shall deliver to City a statement showing the to. tal amounts of money collected or received by Contractor from all sources during the preceding calendar month. b. Accountinq. Contractor shall keep true and accurate books and records showing all transactions related to the operations covered by this Agreement. Contractor, within ninety (90) days after the close of each fiscal year of July 1 through June 30 ("Fiscal Year") for the term of this Agreement, shall provide the City in a form satisfactory to the City, an accounting of all transactions related to the operations covered by this Agreement during the preceding Fiscal Year. The accounting shall include, but not be limited to, all Gross Revenue by type. The Contractor shall furnish a written statement and an opinion directed to the City prepared by the Certified Public Accountant that the payments of the preceding year have been made within the terms and conditions of this Agreement and that all revenues are completely and accurately reported. Such statement shall contain a list of the revenues as shown upon the books and records of the Contractor which were used to compute the payments to the City during the period covered by the statement. Contractor shall also provide within ninety (90) days after the close of each Fiscal Year for the term of this Agreement a copy of the Federal Income Tax return filed for that year. c. Financial Statements. The City may require complete financial statements for the operations covered by this Agreement satisfactory in form to the City, prepared by a Certified Public Accountant with an unqualified opinion annexed thereto including, but not limited to: · Comparative balance sheets if available; · Comparative operating statements if available; · Changes in investment in property and equipment; · Changes in Contractor's equity. Such financial statements shall be submitted to the City within ninety (90) days following the last day of the Fiscal Year covered by the City's request, and shall include a written statement directed to the City prepared by the Certified Public Accountant that the payments to the City of the year covered by the City's request have been made within the terms and conditions of this Agreement. City agrees that said financial statements shall be submitted on a confidential basis and shall not be disclosed to third parties unless required by statute or regulation. 11. MAINTENANCE. a. City Responsibility City shall be responsible for the maintenance of the Golf Course grounds and ancillary buildings, and the exterior of the Pro Shop and Clubhouse, including, structural and mechanical equipment. City shall also provide once daily maintenance on the Pro Shop restrooms and furnish and pay all costs in connection with janitorial supplies within the pro Shop. b. Contractor Responsibility Provide routine custodial maintenance of the Pro Shop including but not be limited to cleaning of windows (inside and outside), floor coverings and walls, and the routine maintenance to ,include but not be limited to maintenance of electric lights, keeping all locks and fasteners and other interior furnishings, equipment, and fixtures in a state of repair. Contractor shall keep the Shop in a clean and sanitary condition and reasonably free from rubbish at all times to the satisfaction of City which expressly retains and reserves the right to inspect the Shop at all times by and through its authorized representatives. Contractor further agrees to provide for the security of the Pro Shop and keep lavatories open at all times the course is open for play or the pro Shop is open for business. 12. CONDITION OF PREMISES. Contractor agrees that neither City or City's agents have made any representations or promises with respect to the physical condition of the Pro Shop, the Golf Course, parking lots, cart storage, revenues or expenses of the operation, or any other matter related to the Golf Course and associated facilities except as herein expressively set forth in the provisions of the Agreement. Contractor agrees that neither City nor any agent of the City has made any representation or warranty as to the suitability of the Pro Shop for the conduct of the Contractor's business. 13. HAZARDOUS MATERIALS. a. Definition As used herein, the term "Hazardous Material" shall mean any waste, material or substance (whether in the form of a liquid, a solid, or a gas and whether or not air-borne), which is or is deemed to be a pollutant or a contaminant, or which is or is deemed to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or injurious, or which presents a risk, to public health or to the environment, or which is or may become regulated by or under the authority of any applicable local, state or federal laws, judgments, ordinances, orders, rules, regulations, codes or other governmental restrictions, guidelines or requirements, or any amendments or successor(s) thereto. b. Hold Harmless Contractor and City shall indemnify, defend and hold harmless the other party and its officers, officials, employees and agents with respect to all losses arising out of or resulting from the release of any Hazardous Material in or about the Golf Course, or the violation of any Environmental Law, by that party or that party's agents, contractors, or invitees. This indemnification' includes all losses, liabilities, obligations, penalties, fines, claims, actions (including remedial or enforcement actions of any kind and administrative or judicial proceedings, orders, or judgments), damages (including consequential and punitive damages), and costs (including attorney, consultant, and expert fees and expenses) resulting from the release or violation. This indemnification shall survive the expiration or termination of this Agreement. c. Allowable Materials Contractor shall not use or bring onto the Golf Course any Hazardous Material other than Hazardous Materials commonly used for the operation of vehicles and equipment. Contractor may use other Hazardous Materials for the maintenance of the Golf Course only with the prior written consent of City. Contractor shall use, store and dispose of all such Hazardous Material in strict compliance with all applicable statutes, ordinances and regulations in effect during the term of this Agreement. 14. WASTE. Contractor shall not use, or suffer or permit any person or persons to use the Pro Shop or Golf Course in any manner that will tend to create waste or nuisance or will unreasonably disturb the operator of the clubhouse restaurant and snack bar. 15. PROMOTION OF FACILITIES. Contractor shall, in good faith and with all reasonable diligence, use its best efforts, suitable advertising and other means, to promote the use of the facilities covered by this agreement. Cost for such promotional activities shall be equally shared by City and Contractor 16. PARKING. Contractor shall have the non-exclusive right to use the existing golf course parking lots for guest and employee parking. City reserves the right to establish reasonable regulations concerning the location of employee parking within such lots. 17. FURNISHINGS AND EQUIPMENT. Contractor shall furnish the following in connection with the operation of the pro Shop: High quality fixtures, counters, showcases, equipment and other interior furnishings or devices required to operate the Shop as may be necessary which items shall be approved by City prior to their installation; provided that prior to exercising any rights or privileges under this Agreement, the Contractor shall file with City a signed inventory of all furnishings and equipment owned by Contractor, which inventory shall be maintained on a current basis. The foregoing items shall be maintained by Contractor in good condition and working order and shall be replaced as necessary to keep such items at a high level of quality. · An adequate stock of golf merchandise, supplies and equipment for sale. · Furnish an adequate supply of golf clubs and other golf equipment for rent in connection with the operation of a first-class course. 18. TAXES. a. Definition. As used in this Agreement, the term "Taxes" shall include any form of tax or assessment, possessory interest tax, license fee, license tax, tax or excise on rent, or any other levy, charge, expense or imposition (individually and collectively "impositions") imposed by any Federal, State, County or City, on any interest of Contractor in the Golf Course or Pro Shop, its improvements, fixtures, inventory, or any other aspect of its business. b. Payment of Taxes by Contractor. Contractor shall pay all taxes attributable to the Pro Shop and related facilities when due and payable. In the event any such Taxes are not separately assessed against the Pro Shop, such Taxes shall be prorated by multiplying the entire cost of such Taxes by a fraction, the numerator of which is the gross area of the Pro Shop and the denominator of which is the gross leasable area of the entire clubhouse. Pursuant to Section 107.6 of the Revenue and Taxation Code, City hereby advises, and Contractor recognizes and understands, that this Agreement does create a possessory interest subject to property taxation and that the Contractor will be subject to the payment of property taxes levied on such interest. Contractor shall pay taxes directly to the Assessor on or before the date such taxes are due and payable. .19. INSURANCE. Contractor shall at all tines during the term hereof, produce and continue in force Comprehensive General Liability Insurance, Automobile Insurance, Property Insurance and Workers' Compensation and Employer's Liability Insurance in accordance with Exhibit "B" of this agreement. City may require increases in all of Contractor's insurance policy limits for all insurance to be carried by Contractor as set forth in this Article, if such increases are commercially reasonable. Neither party shall be required to carry earthquake insurance. 20. WAIVER OF SUBROGATION. Contractor and City hereby waive and release any and all right of recovery against the other, including employees and agents, arising during the Term for any and all loss or damage to any property located within or constituting a part of the building in which the Pro Shop located, including loss of rental, which loss or damage arises from the perils covered by Fire and Extended Coverage Policy to the extent such loss or damage is not within a deductible and is actually paid under the policy. This mutual waiver is in addition to any other waiver or release contained in this Agreement. City and Contractor shall each have their insurance policies issued in such form as to waive any right of subrogation which might otherwise exist. 21. INDEMNITY Contractor shall indemnify, defend, and hold harmless City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of. litigation) of every nature occurring at the Pro Shop, Golf course, or arising out of or in any way connected with Contractor's operations under this Agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of City. Contractor shall promptly notify City or any death, serious injury or substantial property damage occurring on or about the Golf Course or Pro Shop. City shall not be liable to Contractor for any damages to Contractor arising from any act or neglect of the operator of the restaurant, banquet facilities and snack bar located in the Clubhouse. 22. UTILITIES. City shall pay forty (40%) percent of the utilities, including electric, sewer, and water for the Pro Shop and Clubhouse. Contractor agrees to pay sixty (60%) of utilities, including electric, water, and sewer for the Pro Shop and Clubhouse as well as all charges for CATV, and any other utility services used exclusively in and upon the Pro Shop during the entire agreement term, and shall maintain all equipment utilized with respect to said utilities in good working order, at its sole expense. This section shall apply only to such Pro Shop related uses and not for Golf Course uses, which are on separate utility meters. Currently electricity used in the Pro Shop is on the same meter as the remainder of the Clubhouse. City shall provide Contractor with a written claim together with documentation of Contractor's share of each monthly utility bill. Within fifteen (15) days of receipt of such properly documented claim, Contractor shall pay City the amount of such claim. Contractor shall contract directly with all other utilities for any necessary service. Regardless of the entity which supplies any of the Contractor's Utilities or provides any service referred to irt this Agreement, City shall not be liable in damages for any failure or interruption of any utility or service, unless caused by an act or omission to act of City. No failure or interruption of any utility or service, unless caused by City, shall entitle Contractor to terminate this Agreement. 23. REPAIRS AND MAINTENANCE. a. Contractor's Duties. Contractor shall, during the term of this Agreement (except for normal wear and tear, damage by casualty or condemnation, and that caused by City) maintain and keep in good order, condition, and repair the interior nonstructural portions of the Pro Shop, including all improvements constructed by Contractor therein, including, but not limited to, the following: the interior surface of exterior walls; all windows, doors, door frames, and door closures; all plate glass, storefronts and showcases; all carpeting and other floor covering; and all interior plumbing and sprinkler systems, doors, door locks, display windows, window casements, light bulbs, installed therein. Contractor shall as necessary, or when required by governmental authority, make modifications or replacements of the foregoing. The parties acknowledge that the premises are public property which the City has a responsibility to ensure are used in a manner which effectively serves the public. Accordingly, the City has a greater interest than most owners in ensuring the quality of the maintenance and operation of the premises. At all times, Contractor shall maintain and operate the Pro Shop and all other facilities and services offered in connection therewith in a first-class manner, and furnish and maintain a standard of service at least equal to the better class of similar businesses during the entire term of this agreement. Contractor shall keep all fixtures, furnishings and equipment within those portions of the facility occupied by Contractor clean, neat, safe, sanitary, in good order and in first-class condition and repair at all times. Contractor shall maintain and operate the Pro Shop in accordance with the highest commercial standards of cleanliness and shall keep the Pro Shop and surrounding deck clean and free from rubbish. b. City Duties. City shall, at its sole cost and expense, maintain, repair and replace the following: the foundation, roof, roofing, building exteriors, and structural portions of the Pro Shop. City shall repair any damage or defects caused by the negligence of City, its agents or contractors, or by any previous City work done improperly. Contractor shall give City notice of such repairs as may be required under the terms of this Article, and City shall proceed forthwith to effect the same with reasonable diligence, but in no event later than thirty (30) days after having received notice. c. Ri.qht of Entry. In the event of emergency repairs, Contractor hereby grants to City the right to enter upon the Pro Shop at any time for the purpose of making such repairs. 24. ALTERATIONS. a. Prior Consent Contractor shall not, without City's prior written consent, make any structural alterations, improvements, or additions of a structural nature, or exterior design modifications in, or install any exterior signs, decoration or painting, or build any fences, or install any radio or television antennae, loud speakers, sound amplifiers or similar devices on the roof or exterior of the Pro Shop, or make any changes to the exterior of the Pro Shop or any of the surrounding areas (hereinafter "Alterations") without City's prior written consent. b. Proposal for Improvements Any alterations in or about the Golf Course or Pro Shop that Contractor shall desire to make and which require the consent of City shall be presented to City in written form for conceptual approval. If conceptually approved, Contractor shall submit proposed detailed plans. City shall respond to any such submission promptly within thirty (30) working days after receipt. If City fails to respond within such thirty-day period, Contractor may give City ten (10) days written notice of its intention to proceed with the proposed alteration. If City fails to respond within such ten-day period, City shall be deemed to have given its consent to the proposed alteration. If City shall give its consent, the consent shall be deemed conditioned upon Contractor acquiring a permit to do the work from appropriate governmental agencies, the furnishing of a copy thereof to City prior to the commencement of the work and the compliance by Contractor of all conditions of said permit in a prompt and expeditious manner. c. Quality of Work All work with respect to alterations must be done in a good and professional manner and diligently prosecuted to completion to the end that the improvements on the Golf Course or Pro Shop shall at all times be a completed unit except during the period of work. Any such alterations shall be performed and done strictly in accordance with the laws and ordinances relating thereto. Contractor shall have the work performed in such a manner so as not to unreasonably obstruct the access of any other Contractor in the Building. 25. MECHANICS LIENS. a. Responsibility for Payment Contractor hereby agrees that it will pay or cause to be paid all costs for work done by it or caused to be done by it on the Pro Shop, and it will keep the Pro Shop free and clear of all mechanics' liens on account of work done by Contractor or persons claiming under it. b. Security If Contractor shall desire to contest any claim of lien, it shall furnish City adequate security of the value or in the amount of the claim pursuant to Section 3143 and such other applicable provisions of the California Civil Code, plus estimated costs and interest, or a bond of a responsible corporate surety in such amount as is necessary to release the lien, or provide City with evidence that enforcement of the lien is stayed. If a final judgment establishing the validity or existence of a lien for any amount is entered, Contractor shall pay and satisfy the same at once. c. In Case of Default If Contractor shall be in default in paying any charge for which a mechanics' lien claim and suit to foreclose the lien have been filed, and shall not have given City security to protect the Golf Course or Pro Shop and City against such claims of Lien, then City may, but shall not be obligated to, pay the said claim and any costs, and the amount so paid, together with reasonable attorneys' fees incurred in connection therewith, shall be immediately due and owing from Contractor to City, and Contractor agrees to and shall pay the same with interest at the Default Rate. d. Notice of Lien Should any claims of lien be filed against the Golf Course or Pro Shop or any action affecting the title to such property be commenced, the party receiving notice of such lien or action shall forthwith give the other party written notice thereof. 26. DAMAGE AND DESTRUCTION. In the event of the partial or total damage or destruction of the building of which the Pro Shop is a part during the Term or any extensions thereof, from any cause, City shall, to the extent of the proceeds available to City, forthwith repair and reconstruct said building to substantially the same condition which said building was in immediately prior to such damage or destruction, provided such repairs or reconstruction can be made under then existing laws and regulations. Notwithstanding anything to the contrary, in the event the Pro Shop is (1) partially or totally damaged or destroyed by a cause or casualty other than those covered by said insurance and the City does not elect to repair such damage at its sole cost, or (2) the Pro Shop is partially or totally damaged or destroyed by any cause at any time during the last two (2) years of the Term hereof (including any Option Terms, if exercised), or (3) in the event the building in which the Pro Shop is situated is damaged or destroyed by any cause or casualty to the extent that more than thirty-three percent (33%) of the replacement cost thereof at the time of such damage or destruction is uninsured, then either party may elect to terminate this Agreement by giving notice of such termination within ninety (90) days after the occurrence of such damage or destruction. Provided that with respect to the occurrence of an event specified above, if either party elects to terminate this Agreement, the other party shall have thirty (30) days after receipt of such notice of termination to notify the other of its election to repair and rebuild l0 the buildings and other improvements so damaged or destroyed at its cost and expense in which event this Agreement shall not be terminated, such repairs and rebuilding to be performed as soon as reasonably possible. Unless this Agreement is terminated as provided above, and Contractor shall continue the operation of its business during any period to the extent reasonably practicable from the standpoint of prudent business management; provided that the payments by Contractor shall be reasonably reduced by City in proportion to the extent that Contractor is deprived of the use of the Pro Shop. 27. CONTRACTOR DEFAULTS. The occurrence of any one or more of the following events shall constitute a material default and breach of this Agreement by Contractor: a. Material default and breach: (1) Any failure by Contractor to make any payment to City required hereunder as and when due where such failure continues for ten (10) days after receiving written notice from City of such failure. (2) The abandonment of the Pro Shop by Contractor. The failure of Contractor to occupy the Pro Shop for any 24-hour period sl~all be deemed an abandonment and vacation except when prevented by fire, earthquake, war, strike or other calamity beyond its control. (3) A failure by Contractor to observe and perform any other provisions of this Agreement to be observed or performed by Contractor, where such failure continues for thirty (30) days after written notice thereof by City to Contractor; provided, however, that if the nature of such default is such that the same cannot reasonably be cured within such thirty (30) day period, Contractor shall not be deemed to be in default if Contractor shall within such period commence such cure and thereafter diligently prosecute the same to completion. (4) Repeated violations of the same provision of this agreement for an unreasonable number of times. Contractor shall be deemed to have committed a repeated violation for an unreasonable number of times if Contractor fails to perform the same provision more than ten times over the course of this agreement and each time City gives Contractor notice of such violation, even if Contractor subsequently cures the violation. (5) The making by Contractor of any general assignment for the benefit of creditors; the filing by or against Contractor of a petition to have Contractor adjudged a bankrupt of or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against Contractor, the same is dismissed within sixty (60) days); the appointment of a trustee or receiver to take possession of substantially all of Contractor's assets located at the Golf Course or Pro Shop, or of Contractor's interest in this Agreement, where possession is not restored to Contractor within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Contractor's assets located at the Golf Course or Pro Shop or of Contractor's interest in this Agreement, where such seizure is not discharged within thirty (30) days. b. In the event of any such default by Contractor, then in addition to any other remedies available to City at law or in equity, City shall have the immediate option to terminate this Agreement and all rights of Contractor hereunder by giving written notice of such intention to terminate. If City so terminates this agreement, then in addition to any other remedies available to City at law or in equity, Contractor shall pay City's reasonable costs in providing interim operations and in obtaining a new operator of the Pro Shop, Golf Course and Driving Range. c. In the event of any such default by Contractor, City shall also have the right, with or without terminating this Agreement, to re-enter the Pro Shop and take possession of the subject premises, including all improvements, equipment and inventory thereon, remove all persons and property therefrom by summary proceedings or otherwise; such property may be removed and stored in a public warehouse or elsewhere at the cost of and for the account of Contractor. d. City may terminate this Agreement upon five (5) days' written notice to Contractor if the Golf Course Maintenance Contract with Professional Golf Operations expires or is terminated. 28. CITY DEFAULTS. If City should be in default in the performance of any of its obligations under this Agreement, which default continues for a period of more than thirty (30) days after receipt of written notice from Contractor specifying such default, or if such default is of a nature to require more than thirty (30) days for remedy and continues beyond the time reasonably necessary to cure (provided City must have undertaken procedures to cure the default within such thirty (30) day period and diligently pursue such efforts to cure to completion), Contractor may, in addition to availing itself of any other remedies available at law and in equity, at its option, upon written notice, terminate this Agreement. 29. SURRENDER OF PREMISES. Upon expiration or termination of this Agreement, Contractor shall quit and surrender the Pro Shop with all the improvements thereon in as good state and condition as the same were when possession thereof was given to Contractor, reasonable wear and tear excepted, in good condition. Upon expiration or termination of this Agreement, Contractor agrees, unless otherwise permitted in writing by City, to remove all personal property belonging to Contractor. Contractor shall, at its own expense, repair all damage to the Golf Course or Pro Shop including, but not limited to, any damages caused by the removal of its personal property. All improvements shall remain the property of the City and shall not be removed by Contractor. All personal property belonging to the City or purchased with City funds shall remain the property of the City and shall not be removed by Contractor. 30. SUBORDINATION. Contractor shall, upon City's request, subordinate this Agreement in the future to any first lien placed by City upon the Golf Cou¢se or Pro Shop or building of which the Pro Shop forms a part with an insurance company, bank or any other institutional lender, provided that such lender executes a nondisturbance agreement providing that if Contractor is not then in default under this Agreement, this Agreement shall not terminate as a result of the foreclosure of such lien, or conveyance in lieu thereof, Contractor's rights under this Agreement shall continue in full force and effect and its possession be undisturbed except in accordance with the provisions of this Agreement. 31. ASSIGNMENT. Contractor acknowledges that City has entered into this Agreement based upon the unique qualifications of Contractor. Accordingly, Contractor shall not assign this Agreement, sublet the Pro Shop, enter into franchise, license or concession agreements with respect thereto or otherwise transfer this Agreement or any interest, right or obligation therein (collectively "Assignment" or "Assign") without first procuring the written consent of City. City reserves the right to reasonably or unreasonably refuse to consent to such an Assignment. City agrees not to unreasonably refuse to consent to such an Assignment. 32. NOTICES. Whenever under this Agreement a provision is made for any demand, notice or declaration of any kind or where it is deemed desirable or necessary by either party to give or serve any such notice, demand or declaration to the other, it shall be in writing and either served personally or sent by registered mail or certified mail, return receipt requested, with postage prepaid, addressed to Contractor or City, as the case may be, at the following address: Contractor City of Ukiah Attn: City Manager 300 Seminary Avenue Ukiah, CA 95482 Either party may by like notice at any time and from time to time designate a different address to which notices shall be sent. Notices shall be effective upon receipt or the date of refusal to accept delivery. 33. SALE. Notwithstanding anything contained herein to the contrary, City may assign, in whole or in part, City's interest this Agreement, and may sell all or part of the Building. In the event of any sale or exchange of the Golf Course or Pro Shop by City and/or an assignment by City of this Agreement, City shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Agreement arising out of any act, occurrence or omission relating to the Golf Course or Pro Shop or to this Agreement occurring after the consummation of such sale or exchange and/or assignment, provided such purchaser or exchange has aSsumed City's obligations under this Agreement. 34. WAIVER OF BREACH. One or more waivers of a breach of any covenant, term or condition of this Agreement by either party shall not be construed by the other party as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval of either party to or of any act by the other party of a nature requiring consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. 35. RELATIONSHIP OF PARTIES. Nothing herein contained, either in the method of computing rent or otherwise, shall create between the parties hereto, or be relied upon by others as creating, any relationship of partnership, association, joint venture, employer/employee or otherwise. The sole relationship or the parties hereto shall be that of an independent contractor. 36. LAWS OF CALIFORNIA. The laws of the State of California shall govern the validity, performance and enforcement of this Agreement. Should either party institute legal suit or action for enforcement of any obligation contained herein, .it is agreed that the venue of such suit or action shall be in Contra Costa County. 37. INTEGRATION OF REPRESENTATIVES. It is understood that there are no oral agreements or representations between City and Contractor which affect this agreement. This agreement supercedes and cancels any and all previous agreements, negotiations, arrangements, advertisements, or representations and understandings between the City and Contractor or displayed to Contractor by city with respect to the Golf Course or Pro Shop operation. There are no other representations or warranties between the parties 38. TITLES. The titles of Articles and sections herein are for convenience only and do not in any way define, limit or construe the contents thereof. 39. VOID PROVISIONS. If any provision of this Agreement shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provisions of this Agreement and all such other provisions shall remain in full force and effect; and it is the intention of the parties hereto that if any provision of this Agreement is capable of two constructions, only one of which would render the provision valid, then the provision shall be the meaning which renders it valid. 40. FORCE MAJEURE. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, inability to obtain labor or other materials or reasonable substitutes therefore, governmental restrictions, governmental regulations, governmental controls, enemy or hostile governmental action, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the party obligated to perform any term, covenant or condition of this Agreement, shall excuse the performance by such party for a period equal to any such prevention, delay or stoppage except the obligations imposed with regard to rental and other charges to be paid by Contractor pursuant to this Agreement. 41. TIME IS OF THE ESSENCE. Time is of the essence in the performance of each provision of this Agreement. 42. COMPLIANCE WITH GOVERNMNET REGULATIONS. Contractor shall promptly comply with all Fire Code, Building Code and State Fire Marshal requirements and make necessary corrections in a timely manner. Contractor shall include Fire Safety as part of the training program for new employees, especially managers. In addition, Contractor shall promptly comply with all laws, ordinances, orders, and regulations promulgated by any governmental agency and affecting the Golf Course or Pro Shop and their cleanliness, safety, occupation and use. Failure to comply which results in three or more citations for any one condition in any twelve-month period from any governmental or regulatory agency or body will be deemed to be cause for termination of this agreement without opportunity to cure such default. Contractor shall not perform any acts or carry on any practices that may damage the facilities and improvements located upon the Golf Course or Pro Shop or that may be a nuisance or menace to customers. 43. INSPECTIONS. City or its duly authorized representatives, or agents and other persons for it, may enter upon the Pro Shop at any and all reasonable times during the term of this agreement for the purpose of determining whether or not Contractor is complying with the terms and conditions hereof or for any other purpose incidental to right of City. 44. INTEREST IN OTHER COURSES. Contractor shall not have any financial or other interest in the control, operation or promotion of any other golf course, driving range or golf establishment within a twenty (20) mile radius of the City of Ukiah. This prohibition shall apply to Contractor and any member of his immediate family--namely, his wife or any child residing in the same household as Contractor and who is partially supported by Contractor. 45. ORGANIZATIONS. Contractor shall not become an officer or member of any golf club or organization of golfers formed or to be formed at the Golf Course or in any organization in which participation would conflict with the orderly and efficient operation of the course, and particularly in the granting of starting time or playing privileges. 14 46. AUTHORITY. Contractor shall have no authority to bind and shall not attempt to bind, City to any contracts or other obligations of any nature. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. City of Ukiah: Attest: City Manager City Clerk Approved As To Form' City Attorney Lessee: By: Its: Candidate Name: City of Ukiah Oral Interview Rating Sheet Attachment Date' January 17, 2006 Position Applied For: Golf Professional for the Ukiah Municipal Golf Course Rater's Name: Evaluation of candidates is to be made on the basis of the factors listed below. We ask that you rate each performance dimension as it relates to the job at the city of Ukiah and the particular candidate. Space is provided below for you to note important points and impressions. You may find it helpful to initially give a tentative rating to the first candidate until you have interviewed others. Our central concern is whether you, if you were workinq for the City of Ukiah and/or as a customer, would hire a given candidate. At the end of the day we ask that you enter a score on the Evaluation Form and rank each applicant in numerical order. RATING FACTORS EDUCATION: Does the applicant meet the education requirements for this position? EXPERIENCE: Does the. candidate posses an appropriate amount of experience for this position? COMMUNICATION SKILLS: Does the candidate understand the questions, make direct replies, select, organize and present ideas with clarity and appropriateness of language? ANALYTIC SKILLS: Does the candidate demonstrate analytical skills in making decisions by using the best available facts; breaking them down into essential components and examining their relationships? MENTAL ALERTNESS: Does the candidate respond quickly and logically and transfer a thought or idea to others in a clear, concise and appropriate manner? USE OF COMMON SENSE: Does the applicant demonstrate good use of common sense in dealing with pressure situations; making effective logical decisions? INTEREST: Does the applicant demonstrate interest and enthusiasm in the position? SELF CONFIDENCE: Is the applicant relaxed and at ease and demonstrate strong confidence in him/herself? FRIENDLINESS: Does the applicant demonstrate a naturally friendly manner? Not Recommended 0-69 Qualified 70-79 Well Qualified 80-89 Superior 90-100 Philosophy and Concept of Operations Goals and Overall Approach. Are the goals clear and consistent with the community's desires? Do they make good business sense? Customer Service: Is the applicant's approach to customer service desirable and appropriate? Does the applicant have a strong history to support the success of his/her approach? Budget Development and Fiduciary Responsibilities: Does the applicant have sound methods? Experience? Business Practices and Methods: Are these practices and methods compatible and desired? Does the applicant have the aptitude and experience to successfully implement? Methods and Philosophy for Evaluating Services: Does the applicant have strong employee management skills.'? Does the applicant have a method for self evaluations? Relationship with the City and Advisory Committees: Does the applicant demonstrate a strong desire for these relationships? Does the applicant have experience with these type of relationships? Marketing Strategies and Approach: Does the applicant demonstrate an understanding of who the customer is? Does the approach include a diverse approach and incorporate new technologies? Philosophy and Methodology for Providing Specific Programs iMarshalling Program an~ Rate Of Play use °f Private Carts °n the C°urse .. Fee Structure Development -- Instructional Programs Discount Programs, Play Incentives, etc. ,., Senior Play and Related Discounts Junior Programs Tournament Policies Pro Shop Design Dress Code for Pro Shop Staff RATING SCHEDULE: Considering the quality of the candidate's education, experience and personal qualities, and bearing in mind the duties and responsibilities of the position, how strongly can you endorse the candidate: Indicate with a numerical score. FINAL SCORE (0-100): (OVERALL IMPRESSION) FINAL RANKING (1,2, or 3 with 1 being the best among candidates interviewed): Written comments are encouraged and welcomed and REQUIRED for candidates rated below 70. COMMENTS: RATER'S SIGNATURE Golf Professional Interview Questions: 1. Opening Statement: a. As previously indicated, you have up to ten minutes for an opening statement? 2. Education and Experience: a. Please describe your education and experience as it relates to this position? 3. What has attracted you, both professional and personally, to this position is Ukiah? 4. What steps have you taken to prepare your written and oral presentations? 5. Goals and Overall Approach. a. Describe your goals and overall approach to operations of golf facilities with a specific reference as to how these goals apply to Ukiah? b. What are the greatest strengths of our course? c. What are the greatest weaknesses of our course? 6. Customer Service a. Please describe your customer service philosophy? b. Recently the Press Democrat published an article on poor customer service at local golf courses. Is the criticism justified and if so what do you perceive to be the problem? c. What would you do to ensure good customer service from your employees? d. If we were to perform a background check, what is the best and worst thing your current or pervious employer would say about you? e. What improvement do you have planned for the Pro Shop? 7. Budget Development and Fiduciary Responsibilities a. What to you perceive to be your budget development and fiduciary responsibilities? b. With the growing availability of quality discounted merchandise from big box stores, the internet and large specialty retailers, is there a place for site specific golf pro shop merchandise? c. What steps would you take to ensure competitive pricing of product, including green fees, instruction, food and beverage and merchandise? d. What systems and/or policies would you implement to ensure the proper collection and accounting of sales? 8. Business Practices and Methods a. What are the essential elements of a good business plan for the Ukiah Municipal Golf Course? b. What steps would you take to implement these practices and methods? Methods and Philosophy for Evaluating Services: a. How would you ~neasure success for our operations? 10. Relationship with the City, Advisory Committees, and General Public: a. Lets for a minute consider the relationship between the Pro, City and Golfers. At times these relationships can be tested, especially during the consideration and discussion of fee increases and maintenance activities. Please describe your role in these discussions? . 11. Marketing Strategies and Approach: a. Who do you believe is our target customer at the Ukiah Municipal Golf Course? b. Over the past decade, the golfing industry has experience a declining trend in number of rounds played. What would you do to establish more interest and players for our course? c. What role do discounts and play incentives have within your marketing plan? 12. Philosophy and Methodology for Providing Specific Programs a. How important do you feel a marshalling program is for the course? And what would be the elements of the program that you plan to implement? b. What is your view of private carts at the Ukiah Municipal Golf Course? Should the program be phased out or should it be limited? c. What type of instructional programs would you implement? Who would administer and/or teach these programs? d. What experience do you have with tournaments? What would your role be with private tournaments? Closing Statement and any questions of the committee. 13. PROPOSAL FOR GOLF PROFESSIONAL SERVICES ES'E UKIAH 1931 MUNICIPAL GOLF COURSE CITY OF UKIAH Submitted by: Jimmy Stewart/Frank Johnson, Tayman Park Golf Group, Inc. TABLE OF CONTENTS TAB 1 -ORIGINAL PROPOSAL & LETTER TAB 2 - PROFILES TAB 3- MEN'S & WOMEN'S CLUB ENDORSEMENTS TAB 4- MARKETING TAB 5- BUSINESS SYSTEMS TAB 6- JUNIOR GOLF PROGRAM TAB 7 - OTHER ITEMS PROPOSAL FOR GOLF PROFESSIONAL SERVICES 1931 UlrdAH MUNICIPAL G 0 L F COURSE CITY OF UKIAH Submitted by: Jimmy Stewart/Frank Johnson, Tayman Park Golf Group, Inc. -man Park Golf Co "Tile golf COurse with Sonoma County's most picturesque vie~s" Home Of "The Clubhouse," A Sonoma County Landmark 21 November 2005 Made Ulvila, City Clerk City of Ukiah 300 Seminary Avenue Ukiah, CA. 95482 Dear ~Ms. Ulvila, Sage' n Cot~se'~in Healdsburg, .... : We have is..~ucial in helping the City of Ukiah Ukiah Municipal Golf Course that will result in financial stability for the g new players and keeping the existing golfers satisfied and coming Out t° Play l ' As a brief summary of the key points, I would like to review the following items. How the City of Ukiah functions - the Ukiah Golf Operation reports to the Director of Community Services, which is the same reporting structure as we have in Healdsburg. We therefore understand the needs of a Director in overseeing a Golf Course Operation. In addition, we would like to implement a weekly tour of the golf course with the Director of Community Services, the Golf Professional and Golf Course Maintenance Supervisor to make sure that the course is maintained in the best possible condition and that priorities can be established/maintained according to budget requirements/constraints to ensure 927 Fitch Mountain Road, Healdsburg, California 95448 7 " that the players will have the best possible golf experience. . Various Groups Involved With the Golf Course- the Men's & Women' s Clubs in coordination with the Parks, Recs & Golf Commission is a major key to the success of the Ukiah golf operation. Without the cooperation from these groups, success is near to impossible. This is very similar to Healdsburg where our Men's Club is comprised of 5 generations and we must cater to the desires of all - without losing the focus of what we are trying to accomplish, a financially sound operation & a great golfing experience for all of our players. o Driving Range - a driving range is the key to the future and long term financial stability of the golf operation and the development of the game in Ukiah- through adding new players and junior golfers/programs, particularly the First Tee program (www.thefirsttee.org). As a sidenote, Tayman Park Golf Course is the home of the First Tee Program in the North Bay Area and I would plan to bring this program immediately to Ukiah should we be awarded the contract. Having worked previously for the Robert Trent Jones and Ron Fream Golf Course Design companies, the experience gained there enabled me to design and build a driving range in Healdsburg, and I would employ the same strategy here. This would start with a development of an overall golf course masterplan study to see where the best driving range location would be that would maximize access while minimizing construction costs (from a quick initial look, perhaps this would be down holes 7 & 8, with two holes added on the back nine to replace these holes?). Again, a masterplan study would identify this, along with any other future course improvements. Due to the critical nature of this project, this process should begin immediately upon completion of negotiations. , Full Food & Beverage Service with Banquet Room - a cost benefit study along with use analysis would be carried out to examine the conversion of the existing Community Room into a full service F & B operation with Banquet capabilities. Extreme care and caution must be exercised here as many a golf course operation has lost money by developing this side of the business as the high conversion costs and ongoing labor costs of a restaurant operation, can easily exceed revenue, if one is not very careful. . Development/Implementation of Critical Business Systems - after careful research about three years ago we settled on Crescent Systems at Tayman Park Golf Course as our computerized accounting and POS system. Through this we are able to take tee time reservations, track rounds, breakdown rounds played, handle all F & B transactions, keep track of inventory, etc., all of which are posted daily to the general ledger for accounting purposes. From a marketing standpoint, our website at Tayman Park is maintained by Legendary Marketing. This is much more than a website as we have the capability to track people who come to our site, offer special deals on the site & change our offerings constantly, contact our customers through email blasts and in the future offer on-line tee time reservations. We would recommend the same systems be implemented at Ukiah and we would plan to do this if selected. For your information, Tayman Park Golf Group, Inc. is a corporation and all information submitted in this proposal is true and accurate. If you have any further questions after reading this proposal or you would like to visit our' current golf operation in Healdsburg, please do not hesitate to contact me at (707) ~ Thank you for allowing us to be a part of this process. Sincerely, (/ Ji~ny Stewart .,~O~wner/Operator, Tayman Park Golf Group, Inc. Schedule/Timetable The schedule/timetable for the implementation of key activities is outlined on the spreadsheet on the next page. The timeframe shown is from 2005 -2007. This schedule/timetable starts with the Proposal Review & Negotiation phase and presumes that a contract would be signed by the end of January 2006. The reason that speed is of the essence is to allow set up of the Golf Operations to be carried out over the slower month of February with any problem areas being worked out in early March before play begins to pick up in late March/April. During this time existing policies will be reviewed with the appropriate groups, and if necessary refined after these conversations with the Director of Community Services, Parks, Rec & Golf Commission, and/or appropriate group. As the driving range is such a key component to the long term financial stability of the Ukiah Golf Course, upon setup of the golf course operations a golf course masterplan study will be immediately carried out. Once the plan is completed, the timeline for this review is totally dependent on the City and other interested groups, however, I have attempted to show how fast this process can move if the will is there. I have also assumed that 2-3 new holes would have to be constructed in order to place the driving range near the present clubhouse. Time must be allowed for these replacement holes to be constructed and grow-in before driving range construction can begin which places actual commencement of driving range operations at late summer/early fall 2007. If in the masterplan process another opportunity presents itself where construction of additional holes is deemed unneccesary, the driving range operation could open even sooner in the late winter/early spring 2007. As far as the Full F & B Study; this, too can be carried out very soon after taking over operations. However, it would be my recommendation that this project be delayed (unless the pro-forma numbers indicate otherwise) until after the driving range is completed as this will attract more people to the facility which in mm will enhance potential restaurant sales. A First Tee Junior program would be implemented immediately starting with the boy' s high school team in the spring 2006. 0 0 0 0 0 0 0 E 0 0 0 0 0 0 0 E Scope of Services The minimum scope of services and responsibilities that we as the operator would provide the City of Ukiah at the Ukiah Municipal Golf Course would be as follows (this is not an exhaustive list). 1. Manage all pro shop operations including collection and accounting of daily greens fees, categorical recording of rounds played, and selecting and acquiring all golf related merchandise and supplies for retail merchandising adequate to respond to demand. 2. Develop and implement critical business systems including but not limited to scheduling all tournaments/events and daily tee times, collecting all fees, preparing and submitting audits, completing asset inventories, developing personnel management procedures consistent with City policy, paying all taxes and license fees, and providing quarterly reports and accounting of business activity to the City. 3. Operate and maintain a fleet of carts adequate to respond to demand for public rental. 4. Maintain rental sets of men' s, women's, and youth golf clubs and push carts adequate to respond. 5. Maintain a pro shop lounge area that shall include (at a minimum) seating, tables, and one large screen television with cable/satellite programming. 6. Develop a complete golf instruction program and employ at least one other fulltime golf professional with sufficient knowledge and experience to provide quality golf instruction. 7. Develop and implement a comprehensive junior golf development program. 8. In cooperation with the City, develop and implement a comprehensive marketing strategy for promotion of the golf facility including but not limited to promotion of special group and tournament play programs and recruitment of out of area play, particularly during low play periods. 9. Act as liaison between the City and various golf organizations affiliated with the golf course and actively representing the City to the public in matters related to the Golf Course and its operation. 10. Actively coordinate golf activities with golf course maintenance to minimize interference with play and smooth administration of tournaments and special events. 11. Provide professional advice, oversight and recommendations for course maintenance activities and improvements. 12. Prepare and submit an annual operation budget for the operation of concession and lesson activities. 13. Provide limited food and beverage concessions and develop a plan for the operation of a full service food and beverage facility on site. 14. In cooperation with the City, develop of a full service practice range facility on or off- site. 15. Maintain appropriate insurance in accordance with Exhibit "B" of the attached sample agreement. 16. Enforcement of all rules and regulations which are adopted by the City Council. 17. Regulating the rate of play and play and conduct of the players in such a way as to provide for the safety of the player and others. 18. Daily policing of the Golf Course through a regularly scheduled marshalling program at key times, minimizing slow play and preserving order, including keeping off trespassers, preventing injury to the Golf Course by players and others. 19. Preventing any person from playing without fu'st having paid green fees unless otherwise directed by City. 20. Acting as starter of play, and supervising cart usage. 21. Keeping the Golf Course and practice area open for play during a schedule of reasonable hours approved by City. 22. Administration of liability insurance program for privately owned carts on the golf course. Philosophy of Operations Description of the applicant's goals and overall approach to operation of golf facilities with specific reference as to how these goals apply to Ukiah- in my introduction letter I have stated that golf operations of Ukiah Municipal Golf Course and Tayman Park Golf Course in Healdsburg are very similar in many ways. Both are City run golf courses where we must keep the public happy with their golfing experience and City Government informed. The scope of services outlines our responsibilities and this combined with an emphasis on excellent customer service while carrying out these services promotes an excellent all round operation. Delineate the applicants approach to customer service and relationships with local golf groups affiliated with the golf course. State specific examples of past experience. - Even though this is a municipal golf course, we want to have our customer service feel like our patrons are at a "private country club for the day." This starts with the Head Pro who then instills the same ethic in his staff. As far as relationships with local golf groups, I have outlined this in my cover letter where the relationship with the Men's Club, Women's Club and Parks, Rec & Golf Committee is critical for the success of the golfing operation. Our Healdsburg Men's Club is a prime example of this, as without their input and involvement our operation could be no where near as successful as we are. I want to emphasize that like Healdsburg, these Men's Club are unlike most golf courses. There are 5 generations in the Healdsburg Men's Club and it takes time and diplomacy to achieve excellent results. Describe the methods and basis for budget development and fiduciary responsibility - using the Crescent Systems computer software for a golf course operation, budgets are made from a revolving average of the last 5 years of operations. Actual vs. budget numbers are then reviewed on a weekly, monthly, quarterly basis and adjustments made accordingly to ensure budget numbers are achieved or exceeded. Describe business practices and methods - again the Crescent Systems computerized software program is key in monitoring the business. Periodic checks are made during the day checking the number of people on the tee sheet and on the course with cash or credit card tickets. Daily reports are printed out and the cash register balanced to these daily summaries. Any discrepancies are therefore handled immediately and this is then followed by daily deposits being made at the bank. Merchandise purchased is tagged and scanned into the system and placed on the racks with monthly physical inventories carried out to ensure accurate counts. Additionally, a bookkeeper balances the bank statements on a monthly basis for accuracy, making sure that all daily deposits coincide with the daily/monthly computer reports. All of this can be done on-line through Crescent Systems and wv,~v,~.~o~e~v~3c.con~ and can be accessed by the City if desired as well. Describe methods and philosophy for evaluating services - setting job descriptions and goals for employees and having periodic reviews to ensure they are being met. Having meetings with Director of Community Services, Men's & Women's Club, talking to golfers and getting feedback from them on how we are doing. Describe the applicant's anticipated relationship with the City and any advisory committees - The Golf Operation reports to the Director of Community Services just like we do in Healdsburg. There would be a weekly meeting/inspection with the Head Golf Professional, Director of Community Services and the Golf Course Maintenance Supervisor to ensure that no details are being missed. There would also be regular meetings with the Park, Rec & Golf Commission to keep everyone informed and working together. Describe marketing strategies and approach - use the City Utility billings, the Parks & Rec mailings/brochures to keep everyone informed of specials and other programs. A golf course website (visit x~,wx~¥.taymanparkgolf, com as an example) created by Legendary Marketing would also be created so that a database of people can be developed to keep people informed of specials and other things going on at the golf course, as well as monitoring trends of those who visit our website. This will be an excellent resource to help tie in to the local hotels, B&B's and other businesses to attract any visitors, guests and/or tournaments. Provide a description of your philosophy towards and methodology for providing the following programs: Regarding the following items, 1. Marshalling program and rate of play 2. Use of private carts on the course 3. Fee structure development 4. Instructional programs 5. Establishment of discount programs, play incentives, resident priority, and comps. 6. Senior play and related discounts 7. Use of facility by schools and development of junior programs 8. Tournament policies 9. Pro shop design and dress code for golf professional staff we are very familiar with each of these. For items 1-8 as every golf course and community is slightly different, an analysis of what is currently going on for each of these items at Ukiah Municipal Golf Course would be performed and the needs reviewed with the appropriate people - the Director of Community Services, Men's & Women' s Clubs, Parks, Rec & Golf Committee, School teams, etc. and where deemed necessary. Regarding item 9; we would look carefully at the layout of the proshop in order to maximize the use of space and look at trying to serve any alcoholic beverages from a different location as to the golf check in area, in order to avoid any conflict with junior golfers and those who are underaged. Nametags would be provided for staff and a dress code would be implemented for all staff. Experience 1998 to present: Tayman Park Golf Course, Healdsburg- lease contract (30 years remaining) for the management of the golf course operations for the Community Services Department - pro shop, driving range, banquet hall, F & B Operations, golf course maintenance. Personnel Requirements Frank Johnson, Head Golf Professional, Class A PGA Member, 1997. Club Corp Management Training Program & Management experience. Curtis Wood, Assistant Professional, PGA Apprentice. Graduate - San Diego Golf Academy. Jimmy Stewart, Head Golf Professional, Golf Course Architecture & Design experience as Former COO - Robert Trent Jones II Golf Course Design Company & Ronald Fream's Golfplan. First priority for other positions will be given to existing Ukiah Municipal Golf Course personnel or they will be retained for a reasonable period of time to be negotiated in the Agreement. References Robin Goodman- former Director of Community Services, City of Healdsburg, 2000- 2005 (now Parks & Rec Director, City of Lathrop), Tel. .. ~ (cell) Lori Moore, current Community Services Department Supervisor, City of Healdsburg, Tel. (7071 Neil Smart- former Director of Community Services, City of Healdsburg, 1998-2000, Tel. (707' · Eddie Gokan, current Director & former Club Captain, Healdsburg Men's Club, Tel. # (707)" Mark Gleason, former Mayor, City of Healdsburg, Tel. (707) -" z. c, Tom Peterson, Commissioner - Parks & Rec Commission, City of Healdsburg, Tel. (707) All addresses for the above people can be directed to the City of Healdsburg, 401 Grove St., Healdsburg, CA. 95448 Date: 1/9/06 To: Sage Sangiacomo, City of Ukiah From: Jimmy Stewart/Frank Johnson Dear Sage, I wanted to clarify one point of our proposal for the Golf Professional Services at the Ukiah Municipal Golf Course. We, of course, have a company for tax reporting purposes, but, - Frank and I are not a management company. - Frank and I are not interested in becoming a management company. - Frank and I are golf professionals who nm the Tayman Park Golf Course in Healdsburg. Why do we operate as a team? It is because we both have complementary skills that help enhance a golf operation. What interested us, in the first place, in your request for proposal were the similarities between the Ukiah Municipal Golf Course and the Tayman Park Golf Course operations, their close proximity (only 35 minutes away), and the same improvements that we have already brought to Tayman Park that you are hoping to bring to Ukiah by changing your golf professional services. These improvements are: - Additional attention, care & incentives for a very active Men's & Women's Club. - Working closely with the Community Services Department to help the City achieve their recreational goals. - An upgrade in business systems to a computer driven POS, Tee sheet and Accounting system that is accessible on-line and provides daily accountability. - Implementing a year round junior golf program. - Developing a masterplan study for furore course improvements. - Adding a driving range to enhance the golf operation including bringing new players to the game & provide an additional revenue source. - providing the marketing & operational savvy to help develop new revenue streams & increase play so that the golf course reserve funds can be built back up. If you ask us who are we getting to run our golf course operations, the first answer is that you are not getting a management company! You are, however, getting both Frank and myself, because it is going to take both Frank's and my complementary skills to accomplish the goals, outlined above, that you have laid out for us to achieve. You will have Frank or myself on sight at Ukiah Municipal Golf Course as much or than any normal golf operation, with a particular emphasis'on any Men's, Women's or special Club events. Of course, like any operation we will have assistants that work with us just like your current golf set up, but we were not planning on nmning Ukiah with assistants and sitting back from afar and letting Ukiah run on its own. That is why there are two of us and if we did not think we could do an excellent job we would not have responded to your request for proposal. What Frank and I will guarantee is overall service that does promote the feeling of being at a "private country club for a day" and we look forward to the challenge of giving you a golf operation you can be proud of. We feel we have the track record of doing this at Tayman Park and we know that we can do the same, and even better, at Ukiah. We also look forward to restoring the home and home matches between Ukiah and Healdsburg that were such a fun part of the yearly golf calendar in the past. One last item, in closing, our website address at Tayman Park has changed to www.tavmanparkgolfcourse.com should you wish to visit it for an overview of the type of web presence we would create for Ukiah Municipal Golf Course as well. Should you have any questions, please do not hesitate to contact us at 799-4263. Sincerely. /Jmmy Stewart FRANK PGA Member JOHNSON 927 SOUTH FITCH MOUNTAIN RD HEALDSBURG, CALIFORNIA 95448 T 707 433.4275 C 707 291.1474 TAYMANGOLF@S BCG LOBAL. N E_~ PROFILE Frank Johnson, a native of Northern California is the Director of Golf at Healdsburg's Tayman Park Golf Course. A PGA class "A' Golf Professional, Frank previously managed the San Leandro Golf Complex, a 27 hole facility that yearly generated golf rounds in excess of 80,000. Under his direction the San Leandro Golf Complex was voted as one of Americas "top 100 golf shops" three years running and helped graduate future Golf Professionals to PGA Membership. Club Corp of America soon followed with a stop as Operations Director at the Rancho Solano Golf Course in Fairfield and a chance to continue high quality education by enrolling in Club Corp of America's Advanced Management Training Program. Today, he and his partner Jimmy Stewart have taken over operation of Tayman Park Golf Course, owned by the City of Healdsburg, and have been making steady improvements since 1999. Among the changes that have helped revive this historic property were: Improved irrigation, the building and design of three holes, and a three tiered ddving range to promote future growth of the game to all who want to learn it. As a result of the renovations, local golfers have been coming back regularly to play the course and is attracting attention from players who live all over the Bay Area and beyond. To Whom It May Concern Frank Johnson & Jim Stewart have operated Tayman Park Golf Course since 1999. During that time we have seen great improvements in the golf course and service here. The relationship they have with our Men's Club is also excellent. They attend our meetings, give us input on the golf course, listen to our suggestions and even serve our Christmas dinner with their staff as a sign of appreciation to the Men's Club and our members. Having also previously been a member of the Ukiah Men's Club and understanding how you all operate their, I think Frank and Jim would be an excellent fit for your golf operation there. If you would like to talk with me further about Frank & Jim, you can reach me at 799- 0465. Sincerely, Eddie Gokan Former Men's Club Captain & Current Member- Healdsburg Men's Club HEALDSBURG WOMENS GOLF CLUB Healdsburg Womens Golf Club Committee Dear Sir or Madam: The last seven years have seen a transformation of our historic course in Healdsburg due to Jim Stewart and Frank Johnson's experience, professionalism and demeanor which have had both a stablizing and' prospering effect on our Women's Golf Club. No longer are the days of Golf Professionals coming and going with each spring. As Golf Captain for 2006, I am looking forward to working with both Jim and Frank this year in continuing to promote growth and stability within our active group of women. Sincerely, / · · Val Cronin Healdsburg Women's Golf Captain (707) 431.9053 927 SOUTI! FITCII MOUN'rAIN ROAD ·ilF. AI.DSBURG, CA. · 95448 IslIONE: 7117 433.4275 · FAX: 71}7 433.7846 Legendary Marketing SmartSite Admin Page 1 of 2 Top Pages Report Time Period: I~uly 2005 ~ Graph {~ Table I~a~e Name Page~ Percent Home · 1,114 32.77% Free Golf . 309 9.09% Rates 293 8.62% Weddings 213 6.27% Course 210 6.18% Driving Range 146 4.30% Home Continued 137 4.03% News 105 3.09% Lessons 100 2.94% Scorecard gq 2,g1% Shopping Cart 94 2.77% Outings 82 2.41% Contact Information 57 1.68% Direction 55 1.62% Membership 49 1.44% Specials 46 1.35% Events 36 1.06% Pro Shop 32 0.94% Coupons 26 0.76% Request a Wedding 20 0.59% Packages & Tournament Menu 19 0.56% History 16 0.47% Newsletter Signup 15 0.44% Request a Lesson 15 0.44% Staff Bios 14 0.41% Members Loqin 13 0.38% Contact Us 13 0,38% Members Area 13 0.38% Request an Outing 12 0.35% Golf Articles 8 0.24% Members Directory 6 0.18% Calendar 6 0.18% Request an Event 4 0.12% Request a Membership 4 0.12% Member News 2 0.06% Media 2 0.06% Build Page 9 i 0.03% Refer a Friend i 0.03% Member Calendar I 0.03% Build Page 8 I 0.03% Tournament Manager I 0.03% Build Page 7 I 0.03% Unks I 0.03% Golf I 0.03% Build Page 6 i 0.03% Practice Facilities I 0.03% Build Page 5 I 0.03% Industrial League Information 2005 I 0.03% Shopping Cart Policies i 0.03% Build Page 10 I 0.03% http://smartsites.legendarymarketing.com/admin2.1/reports_top_pages.php 1 / 17/2006 Legendary Marketing SmartSite Admin Page I of I Entries in Newsletter Sign Up Entries 1 - ~.~ out of 11 Search ~ E-mail c~ First Name c' Last Name Email N~me Dat~ [86139@excite.com , Cliff Wilkins , 8/13/2005 - 10:16 PM $cantrall~$bcglobal.net Barbara Bristol 7/19/2005 - 07:20 PM vogtjm@hotmail,com John Vogt 6/18/2005 - 12:07 PM info@golflinks.com 5/4/2005 - 11:36 PM jutiegre@aol.com Julie Greenwalt 5/3/2005 - 05:02 PI~I kant, ique@sonic.~et Kaye Rogers 4/24/2005 o 12:04 AM bojokruckerCo~comcast, net Bob Krucker 4/12/2005 - 11:28 AM bojokruckerC~comcast.net Bob Krucker 4/12/2005 - ! 1:26 AM bojokrucker~Jcomcast,net Bob Krucker 4/12/2005 - 11:26 AM bo]okrucker@comcast, net Bob Krucker 4/12/2005 - ! 1:13 AI~I evanstex@pacbell.net Melinda Evans 3/19/2005 - 08:02 PM http://smartsites.~egendarymarketing.c~m/admin2.~/c~ntact-p~int-user-pr~~~e.php?f~r... 1/17/2006 Run: 2/05/06 9:55AM Account Date Tayman Park Golf Course Daily POS Transactions by G/L Account January 1, 2005 Description Date Range 1/01/05 To 1/01/05 Amount 103500 103500 104000 104000 131000 215000 218000 218000 401100 402000 403000 404000 405100 405500 406000 501000 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 1/01/05 Cash - NBR Main Account - Cash Cash - NBR Main Account - Check Cash - NBR Mgr's Operating - Amex Cash - NBR Mgr's Operating - MCNisa Inventory - Shop Sales Tax Payable Gift Certificates - Credit Book Gift Certificates Golf- Green Fees Golf- Cart Fees Merchandise Sales Range Income Restaurant Food Sales Restaurant Liquor Sales Restaurant Beer Sales C-O-S Merch Inventory Purchases Total: 213.00 1 ,O59.OO 12.00 1,071.00 -53.00 -11.18 77.99 -2,020.00 -105.00 -28.00 -83.71 -120.00 -3.72 -5.58 -55.80 53.00 0.00 Page: 1 of 1 Run: 1116106 Class # 10:15 AM Description Tayman Park Golf Course Sales Analysis By Class (Totals Collapsed) Quantity Sales Class Range: Date Range: 1/01105 Cost I to 989 to 1/01/05 Cost Margin 1 3 11 15 24 25 31 33 80 100 110 115 125 850 WD Gr. Fees 9 WE Gr. Fees 9 Misc. Rounds Junior WE 9 Cart Fees Range Fees Golf Gloves Golf Shoes Misc & Sundries Food Soft Drink/Bev Beer Liquor Administrative 1 5 1 2 5 17 1 1 2 1 2 29 2 7 $12.00 $75.00 $0.00 $18.00 $28.00 $120.00 $11.16 $45.49 $27.O6 $0.93 $2.79 $55.80 $5.58 $o.oo $0.00 $6.50 $46.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 58.2% 102.2% Report Totals: Sales $401.81 Cost: $53.00 Margin 13.19% Page: I of I ~ 0 0 ~ 0 0 0 C: C 0 0 0 ]ilri!llllll!i!lill~Sl :~lllllllll~lllUllli!ll!~ III IllllillillHl~ ~IIIIIIIHIIIIH;H! i~ ? I IIrHH illlllill! tlllllll Illll IHI I Il HHiII Il:IS1 I!l IIIIIH ti Ill!Ill IIH:tIIIIH~ Ill ~ l; l! :::r' m ~'~. F iEVERANCE · COURTESY · JUDGMENT o o = o ,-. ,-.,_. = o~~ o o .-. '-' ~ ~ ? ~ o,. o,. .-,_ 3 ddd~,.,,., ,.,~d,..,,,.,,,.,~,..,,,.,,., d--'-' '-"-'~'-" ,..,,,J o c~ ~ ~ c-' o ~ -- o · - ~ ~ ~ e ~ u~ -- .... ~ ~: ~ -- .~ ,~ ~': ~ '~ °'= ,~ -Fa Fir~ !iiTee® INPACT REPORT 2004 Fi~>t tee First - Courtesy To IMPACT THE LIVES OF YOUNG PEOPLE BY PROVIDING LEARNING The First Tee FACILITIES AND EDUCATIONAL PROGRAMS THAT PROMOTE AND LiF!:,,,-.[.~,, VALUES THROUGH THE GAME OF GOLF. In 1997, the World Golf Foundation created The First Tee to introduce young people of all backgrounds to the game of golf by creating affordable and accessible golf facilities for those who had not previously had exposure to the game and its positive values. As The First Tee continued to evolve, so did its mission. The primary focus of The First Tee expanded into giving young people of all backgrounds an opportunity to develop, through golf and character-education, life-enhancing values such as honesty, integrity and sportsmanship. In 2000, The First Tee, along with a team of experts in the field of youth development and golf, created a curriculum for teaching character-education through specific life skills. This curriculum is called The First Tee Life Skills Experience, and it is implemented by trained coaches as well as volunteers at learning facilities of The First Tee. The Life Skills Experience is a unique component of The First Tee that sets it apart from most youth development programs. It was created as part of the Life Skills Education, along with The First Tee Coach Program (details below), to teach character -education and instill core values in participants around the world. As of 2004, The First Tee has introduced golf and life skills to more than 3S0,000 young people at over I ?0 learning facilities worldwide. Individuals, communities and organizations interested in learning more about The First Tee, can visit w~vw. thefirsttee.or§ or call (904) 940-4300. F rst :Tee Life Skills Education Target - Introduction to The First Tee; promotes safe and fun experiences that introduce golf and life skills at a baseline level. Par - Emphasizes communication skills and self-management. Birdie - Emphasizes goal setting. Eagle - Builds on Par and Birdie Levels and also emphasizes resistance skills, conflict resolution and planning for the future. Ace - (In development) Offers advanced coaching and practice in many of the life skills introduced in the Par, Birdie and Eagle Levels. Coach-in-Training - (Phases I, II and III) Each coach is required to participate in three phases of training and complete additional requirements related to practical experience. The First Tee Coach - Recognition for completion of all three phases of the Coach-in-Training process. Recognized coaches of The First Tee must fulfill ongoing continuing education requirements. The First Tee Master Coach - Special designation awarded for ongoing excellence in delivering the Life SI<ills Experience as well as involvement inThe First Tee program enhancement. Life Skills Education Research Summar), ( IN 2003,THE FIRST TEE SELECTED AND TO CONDUCT A LARGE-SCALE, SCIENTIFIC STUDY TO EVALUATE THE ~ ,:~ OF THE LIFE SKILLS EDUCATION AND EXAMINE CHANGES IN THE LIVES OF YOUTH AS A RESULT OF THEIR PARTICIPATION IN THE FIRST TEE. C · Participants of The First Tee learn life skills. They acquire knowledge about specific life skills taught by coaches, and they gain life skills knowledge that can be transferred to situations outside the golf course setting. · The First Tee participants change their behavior for the positive. · Relationships between participants of The First Tee and their coaches improve with time, which is critical considering the significant impact mentoring relationships have on positive youth development. Based upon the entirety of the research,The First Tee knows that the Life Skills Education is having a positive impact on the lives of participants. How the Research Was Conducted BEFORE THE FIRST TEE WAS ABLE TO MEASURE THE IMPACT OF THE LIFE SKILLS EDUCATION, AN APPROPRIATE AND DEPENDABLE SURVEY WAS NEEDED. UNIVERSITY OF FLORIDA SURVEY DEVELOPMENT IMPLEMENTATION The University of Florida (UF) developed and validated a survey to test general life skills (Life Skills Inventory), as well as a method of measuring the degree of trust that participants have in coaches of The First Tee (Trust Rating). The initial step made by UF generated the primary measurement vehicle that University of Nevada, Las Vegas (UNLV) used to evaluate the impact of The First Tee Life Skills Education during the second step of the research process. After extensive statistical testing, the UF research findings estab- lished initial reliability and validity of the Life Skills Inventory and the Trust Rating. The in-depth results of this research, which included examinations of participants, parents/guardians and coaches, are revealed inside. Open Here for In-Depth Research Results Participant Results 264 total participants 115 participants entering the Par Level of The First Tee Life Skills Experience 149 non-participants of similar demographics with no involvement in The First Tee A 47% IMPROVEMENT from pre- to post-test indicated that Par Level participants increased their knowledge and understanding of important life skills, such as communication, respect, a positive attitude, self-manage- ment and goal setting. This result allowed the researchers to investigate if the specific life skills taught by The First Tee can be generalized to non-golf settings. The Learning Assessment Pre-Test ~ 6-8 Weeks ~ Post-Test A 5% IMPROVEMENT in approximately six to eight weeks revealed that Par Level participants increased their use of general life skills, particularly goal setting; whereas, there was no change in the use of general life skills by non-participants. The First Tee Life Skills Inventory Pre-Test ~ 6-8 Weeks ~ Post-Test A 5% improvement is respectable when compared to skill improvement over the same timeframe in other domains. For example, this finding would be similar to helping a golfer lower her scoring average from 80 to 76 or helping a math student improve his overall grade from a B to an A-. Participants were assessed using two distinct surveys: The Learning Assessment · The Learning Assessment, which was developed by UNLV, asked questions about knowledge of specific life skills taught during The First Tee Par Level programming. · Because the questions were specific to the Par Level, only participants of The First Tee completed this survey. · The Learning Assessment was administered at pre- and post-test, approximately 6-8 weeks apart. The Life Skills Inventory · The Life Skills Inventory, which was developed by UE asked questions regarding the use of general life skills. ° The First Tee participants and non-participants completed this survey. ° The Life Skills Inventory was administered at pre- and post-test, approximately 6-8 weeks apart. C°~rtesy .) Parent/Guardian Results During a telephone interview, parents/guardians of The First Tee participants reported dramatic IMPROVEMENT in their child's behavior after participation in Par Level programming. Observed Changes by Parents/Guardians Pc~sluw::· Negative · Communication Skills Responsibility 2% Confidence Grades In School Social Ability 4% Data from the Life Skills Inventory suggested that prior to entering Par Level programming, participants were no different than non- participants in their use of general life skills. However, according to parents/guardians, after completing the Par Level, participants made a significant IMPROVEMENT in their use of general life skills, particularly goal setting. Parents/Guardians of non-participants reported no change in their child's use of general life skills. 98 total parents/guardians 50 parents/guardians of The First Tee participants 48 parents/guardians of non-participants Parents/Guardians were assessed by two different methods: Telephone Interviews · UNLV and The Cannon Center for Survey Research at UNLV developed the telephone interview protocol. · Parents/Guardians of The First Tee participants took part in the telephone interviews. · Telephone interviews were conducted at post-test only. The Life Skills Inventory · The Life Skills Inventory was slightly modified for parents/guardians. ° Parents/Guardians of The First Tee participants and of non-participants completed this survey. ° The Life Skills Inventory was administered to parents/guardians at pre- and post-test, approximately 6-8 weeks apart. Coach Resu ts '~he First Tee participants felt their relationship ith their coaches POSITIVELY changed during their participation in Par Level programming. Data £rom the Trust Ikating suggested that participants trusted their coaches prior to entering Par Level programming. However, after com- pleting the Par Level, participants increased their degree of' trust in coaches by 18%. Trust Rating \~/o'~9~°~eCe~ ~ · ~ No Improvement Pre-Test ~ 6-8 Wee~ ~ Post-Test There was a POSITIVE relationship between the amount of"coaching experience" and the degree of"participant learning." Coaching experience was examined using a demo- graphic questionnaire. Participant learning was measured using i~l~the Learning Assessment. The results revealed a moderate, positive iL):elationship between The First Tee experience of coaches and the !~l~learning of Par Level life skills for participants. There was a POSITIVE relationship between "coaching behavior" and the degree of"participant learning." Coaching behavior xvas examined through video analysis. Participant learning ~vas measured using the Learning Assessment. The results indicated a strong, positive relationship between the behavior of coaches and the learning of Par Level life skills by participants. These results demonstrate the effectiveness of The First Tee Coach Building Blocks below. 9 coaches at participating Chapters of The First Tee The assessment of coaches involved three methods: The Trust Rating · The Trust ILating, which was developed by UE examined the degree of trust that participants had in their coaches. · The First Tee participants completed this survey. · The Trust tLating was administered at pre- and post-test, approximately 6-8 weeks apart. A Demographic Questionnaire · Coaches at nine Chapters of The First Tee completed this questionnaire. · The questionnaire was administered at the approximate mid-point of the study. AVideo Analysis of Coaching Behavior During The FirstTee Par Level Programming · Coaches at nine Chapters of The First Tee were video taped. · The video taping of coaching behavior took place at the approximate mid-point of the study. The First Tee Coach Building Blocks When delivering any Level of The First Tee Life Skills Experience, coaches use specific coaching strategies and behaviors to reinforce The First Tee Coach Building Blocks and Philosophy. The effective utilization of coaching strategies and behaviors such as the ones listed below increase the probability that optimal learning environments are created for all participants. Doing vs. Telling: Coaches tend to"talk less," enabling participants to become involved more quickly. Fun and Seamless: Coaches create a learning environment that integrates golf and life skills singular activities, drills and games. Intention Equals Attention: Coaches keep their attention (i.e., instruction and feedback) consistent :~with their intention (i.e., purpose of the lesson). ~alancem Process and Outcome: Coaches create learning and performance situations that facilitate self-comparison rather than compariso~ to others. Youth Centered: Coaches strive to identify and understand the agenda of participants by asking open-ended questions and listening. Relationship Focused: Coaches build rapport with participants by acknowledging them as individuals rather than just golfers. Good-Better-How~: Coaches provide feedback by catching the participants "doing something right" and providing positive reinforcement. Coachable Moments: Coaches take advantage of spontaneous situations to reinforce previous learned life skills. 'The Good-Better-How technique is described in L. and Nilsson. P., ( © 2003 VISION54...Coaching for the future Inc. Used with Permms~on. One Step Ahead THE FIRST TEE HAS DEVELOPED A STRATEGIC PLAN FOR .~ ~,:~ ~ THAT WILL: Examine HOW ndWHY The First Tee is valuable,ou development program. Life SI<ills Education h~,~ o~-, ~-~c~p~,,~,~ or The First Tee. EnableThe First Tee t°lM PROVE i,s pr.ogr, ams for participants. Acknowledgments The First Tee xvould like to thank all of the universities, individuals and Chapters of Thc First Tee who xvere involved in the Litk~ Skills Education Research. University of Nevada, Las Vegas Mark Guadagnoli, Ph.D. Bill Holcomb, Ph.D. Gabriele Wulf, Ph.D. The Cannon Center for Survey Research The First Tee Life Skills Education Development Consultants Al Petitpas, Ed.D. Director, National Football Foundation Center for Youth Development through Sport at Springfield College Linda Petlichkoff, Ph.D. Professor, Department of Kinesiology Boise State University Peter Ryan, Ph.D. UNIVERSITY OF FLORIDA University of Florida Peter R. Giacobbi, Jr., Ph.D. The First Tee Life Skills Education Staff Beth Brown, Ph.D., LPGA Manager of Life Skills Education Dedric F. Holmes Director of Life Skills Education Participating Chapters of The First Tee The First Tee of Akron The First Tee of Canton The First Tee of Central Coast The First Tee of Chattanooga The First Tee of Chester/Delaware Counties The First Tee of Chesterfield The First Tee of Cooks Creek The First Tee of Fort Smith The First Tee of Greater Austin The FirstTee of Greater Kansas City The First Tee of Greater Sacramento The FirstTee of Memphis The First Tee of Metropolitan New York The First Tee of Michigan The First Tee of Northeastern Illinois The First Tee of Salina The First Tee of Sarasota/Manatee The First Tee of Southern Nevada The FirstTee of Tampa Bay The First Tee of Valparaiso This project was supported by Grant No. 2003-JS-FX-O036 awarded by the Office of Juvenile' Justice and Delinquency Prevention, Office of justice Programs, U.S. Department of Justice~ Points of view or opinions in this document are those of the author and do not necessarily rep- resent the officiat position or policies of the U.S. Department of Justice. © 2004 World Golf Foundation, Inc, All Rights Reserved, Use with Permission. The First Tee Life Skills Education,The First Tee Life Skills Experience,The First Tee Coach and The First Tee Impact Report are all proprietary brands and data of The First Tee division of World Golf Found~ thc. No portion of this be reproduced without written )erm~ss~on. , I 135 120 110 3 2 455 435 4(~0 3 135 135 lOS 3 4 310 295 85 4 5 145 115 90 3 6 340 2802- 45 4 7 300 285250 4 8 320 3(10 275 4 9 470 445 395 5 Z- -- PPG P~II(L IRII lING GRI tN SHORT GAME TEACHING AREA PREP/M~ED FOR: TAYMAN PARK GOLF COURSE 927 SOUTH FITCH MOUNTAIN HEALDSBURG, CA 95448 PREPARED BY: RONALD FREAM & DAVID DALE GOLF COURSE ARCHITECTURE DATE: MARCH 17, 2005 G~IC S~E: 1"=t~' o so 1 o 4~ Aitachment # JEFF MCMILLEN HIGHLAND COURT UKIAH, CA ~5452 (707) Golf Professional's Service Proposal City of Ukiah Request for Proposals No. E26174 Jeff McMillen 25 Highland Court Ukiah, CA 95482 (707) City of Ukiah Request for Proposals No. E26174 Golf Professional Services I believe success is based on a commitment to the simple philosophy that our product is golf, but our business is people. As we go about our work each day, we must direct our attention toward doing what's right for our customers. Our efforts at budgeting, planning personnel selection, training, golf course maintenance, pro shop sales, food and beverage sales are all done with the ultimate goal of pleasing and satisfying every customer. Each golf professional and staff member has the responsibility to ensure every customer has a great golfing experience, since our very job depends on our success in pleasing the customer. My personal goal is to promote and elevate the game of golf at Ukiah Municipal Golf Course so that our customers' pursuit of the game is an important part of their lifestyle and recreational pleasure. Understanding that golf is a service industry, it is also my goal to provide our customers with outstanding service. I believe it is important to keep in mind that our financial rewards can only be returned by the degree of service we provide. Thinking in terms of pure profit should be avoided. More importantly is to think in terms of what we can do for the customers at Ukiah Municipal Golf Course. As a result, the improved service provided by this approach will inevitably give the golf operation a greater financial return. PHILOSOPHY. AND CONCEPT OF OPERATION STATEMENTS A. Description of the applicant's goals and overall approach to operation of golf facilities with specific reference as to how these goals apply to Ukiah: My goals are to provide the best possible golfing experience to our customers on a daily basis. This will include customer service, to go out of our way to do everything we can to make the golfers feel welcome, to have a friendly and knowledgeable staff, and provide top-of-the-line merchandise for all golfers' needs. I offer professional expertise which includes the rules of golf, the most current product information, teaching of the golf stance and swing, all aspects of the game, and much more. Over the sixteen years I have had the opportunity to serve the golfers of Ukiah, I have learned many things, but the most important is that no matter the golfers' experience or ability, if you provide them with fair and friendly service, they will enjoy their golfing experience, and return time and time again. Also during this time I have come to know almost all of the local golfers, and provide them with more of an individualized service, knowing what their personal r~eeds are. Ukiah is a small town, and the financial support base for the golf course relies mainly on these local golfers. B. Delineate the applicant's approach to customer service and relationships with local golf groups affiliated with the golf course. State specific examples of past experience: Customer service is the most important service we, as PGA golf professionals, can offer to our customers. I have spent the past twenty-five years in the golf business, learning how to provide better customer service to my golf club through personal experience, PGA seminars, PGA publications, workshops, and many other educational avenues. I believe continuing education in the PGA methods and philosophies is very important. My relationship with the Men's and Ladies' Clubs at the Ukiah Municipal Golf Course is outstanding. Over the years I have provided many services for these different groups, which include creating a tournament schedule for the year, establishing tee times for the year, preparing the golf course for each event, and managing the tournaments on the day of the event. This includes starting the players group by group, collection of the score cards, posting all scores on a score board for each event, and providing the tournament chairperson with the final results. Importantly, I work with the chairpersons to create the following year's event and incorporating changes and offering suggestions to improve the event, and make it even more successful. By meeting with local golf groups on a regular basis, we have worked together on a number of issues from tour schedules, concerns the members may have, to improvements to the golf course itself. The Men's Club has a very strong relationship with the City of Ukiah and has made many improvements to the golf course over the past sixteen years, from small projects to major ones, helping to provide the golfer a better golfing experience. C. Describe the methods and basis for budget development and fiduciary_ responsibility: Currently, the City of Ukiah is using a single cash register to record all business transactions at the golf course. I have researched and discussed with Sage Sangiacomo the possibility of a P.P.O. point of sales computer. This would be a great tool for collecting data for budgets, marketing, security, and long-range planning. I plan to install this type of equipment. Currently, I collect and document all daily, yearly fees, as well as all cartpath fees. I bank all monies generated at the golf course on behalf of the City of Ukiah, and provide them with an accounting of alt transactions that occur at the golf course. This information is used to develop a budget, produce profit and loss statements, financial statements, and a marketing program for next year. D. Describe business practices and methods: As golf professionals we are expected to be a player, teacher, employer, employee, merchandiser, leader, budget planner, mediator, and more. It would be difficult to find another profession that requires the same total managerial skills that it takes to run a smooth golf operation. With increased costs and increased competition selling merchandise, it is critical to have a clear and accurate picture of finances at all times. The basis is a sound accounting system, one that provides all necessary information needed without being too complicated. It is crucial that the business have thorough and accurate financial records. It is necessary to have a clear idea of profit and loss - without this information, it is impossible to manage a successful business. It is necessary to have a clear understanding of a balance sheet, profit and loss statement, cash flow, and how taxes affect the business. At present, I use the accrual method of accounting. This is currently accomplished in hand-written style. I would like to implement a computerized bookkeeping program (such as Quick Books) which would be inexpensive yet ensure accuracy and accessibility, assist in the creation of balance sheets, profit and loss sheets and the preparation of documents for income tax purposes. E. Describe methods and philosophy .for evaluating services: As a member of the PGA, I am dedicated to the idea that the name "golf professional" shall be a synonym with and pledge of, honor service and fair dealing. In evaluating services, I believe that professional integrity, fidelity to the game of golf, and a sense of great responsibility to employers, employees, manufacturers, golfers and fellow golf professionals should transcend the thought of material gain in the motives of a true golf professional. Personnel that may be hired should undergo close scrutiny to ensure that their ideals and motives follow this same philosophy- keeping in mind that ethics, integrity, a passion for the sport and a selfless desire to help all golfers enjoy their game will be what draws players back to the course and makes it successful. Supplementary services offered at the course, including food and beverage, pro- shop, and merchandise should be of the highest caliber within the available budget and should be evaluated for quality and value, taking into consideration the feedback offered from players and others who may use the clubhouse facilities and course. From this information, appropriate changes are implemented. F. Describe the applicant's anticipated relationship with the City and any advisory_ committees: My relationship with the City of Ukiah and the advisory committees would be very similar to the one that is currently in place. I approach these relationships with professionalism and courtesy. I look forward to working with both the City and advisory committees as a way of improving services, attracting more players and creating more revenue. I am currently scheduled to meet with Sage Sangiacomo on a bi-weekly basis or more often when needed. I meet with the Men's and Ladies' Clubs on a monthly basis or when needed, such as when the clubs have a special event coming up. Additionally, I meet with the advisory committee for the Parks and Recreation Department. ! am available at any meeting that requires my presence or when a golf item comes up that I can be of help with. I believe the City should have the golf professional be more involved in the maintenance of the golf course. This is an area of expertise a PGA golf professional has and I believe, at present, this knowledge is being underutilized at the Ukiah Municipal Golf Course. Maintenance of the golf course is a major requirement for the profitability of the facility, and having a stronger relationship between the golf professional and the City would result in an improved appearance and quality of the course, which in turn would improve the reputation of the course and draw not just more local players, but players from out of the area who often travel to other courses for the enjoyment of a new challenge. G. Describe marketing strategies and approach: It is important in marketing strategies to know the customer and the market. Without this information you cannot effectively target the' areas you need to be successful. Ukiah is unique in that a very large percentage of play comes from local customers. This makes targeting the local play the number one priority. After that, marketing should look to outside play, ways to attract visiting golfers who will enjoy their experience and spread the word. There are many ways to market our course once the areas to target have been identified. Methods might include a multimedia approach of television, radio, and newspaper ads, golf magazine ads, coupon books, special events (charity fundraisers, etc.) and 2-for-1 discounts. In addition to the standard methods of advertising, I would like to implement a golf course website which would provide information including upcoming tournaments, golf and cart fees, special programs/camps, pro shop specials, 2-for-1 s, junior and senior play, and discounts. When marketing a course, it is necessary to pick the specific areas to be targeted, whether it is yearly tickets, daily fees, twilight fees, or slow times. Once these have been established, the most effective type of advertisement can be chosen. It is also a good practice to make at lease one visible improvement to the course every year. These changes make the golfer aware that the golf professional and the city maintain the course with pride and value the golfer's business. Informing the golfers of future projects/improvements shows a continued effort to improve the quality of their experience. 1. Marshalling program and rate of play: The marshal program in Ukiah is very important. It provides the golfer with a good pace of play that ensures the golfer a reasonable amount of time to play a round of golf. In Ukiah, weekend and weekday prime times are self-marshalling because so many regulars play at this time. The marshals work the later shift to target people who sneak onto the golf course without paying, and to help the pace of play with the less experienced golfers. During slow times, the marshals sand fairway divots, rake bunkers, clean out yardage markers and many other general duties. 2. Use of private cans on the course: The use of private carts in Ukiah is one of the reasons our' course is unique in this day and age. Because of golf industry management companies and the need to increase revenues, private cart usage is becoming obsolete, but without them in Ukiah, the customer base would dry up. Iri order to avoid this, and maintain or increase play/numbers of rounds of golf, I feel it is important to preserve the availability and use of private carts at a reasonable and fair price. 3. Fee structure development: It is critical to keep the golf course profitable, which requires regular attention to revenue and profit/loss analysis. Profitability is a difficult challenge while keeping the fees as low as possible for the golfers. I suggest a plan that implements annual percentage increases to offset the rise in maintenance costs. Prior to the annual increase, the opinions and ideas of the golfing community should be solicited. In this way they are included in the process and feel they are part of the team. Without the golfers' participation, it is possible to lose the support of the golfing community you have worked so hard to develop. 4. Instructional pro grams: "Why do you want to learn the game of golf?." I've asked hundreds of beginners this question, and I've received answers such as, "Our company has an annual tournament and almost everyone plays"; "I've watched it on TV and it looked interesting"; "My husband is a golf nut and I'm tired of staying home"; or simply, "It looks like fun." All these answers share one thing in common - each person is looking for enjoyment in the great game of golf. With over thirty years of teaching experience, I offer the opportunity to learn the game or to improve the golfer's skills. I work with the Men's and Ladies' Clubs to offer clinics to their members at no charge. I also offer a free three-day junior camp to kids of all ages to provide them with the basics of the golf game and etiquette so that they can play the game, and take part in junior tournaments as their skills increase. 5. Establishment of discount programs, play incentives, resident phority, and comps: Once a customer market is established, it is possible to target the areas of slow play to try to increase profitability with tools which may include 2-for-l, discounted green fees, lunch and beverage with each paid round of golf, just to name a few. It is very important to increase revenues during slack time. There should be some priority set aside to local golfers because they are the golfers that support the golf course year-round. A compensation policy for rounds of golf should be developed and implemented so that all staff members know what is expected, how it is provided and how to manage these rounds. This policy should include PGA members and assistants, superintendents and assistants, some employees, marshals, and local community organizations on a limited basis. 6. Senior play and related discounts: The seniors of our community need a place to relax, socialize and exercise. The golf course provides an excellent place for this. The senior golfer is crucial to our success, and critical to our ability to raise the revenue base, as they represent a large number of our customers during the weekdays when most people are at work and can only play on the weekends. This gives us a great opportunity to discount fees during the slow times and fill the golf course. Senior discounts should remain a vital aspect of the golf course fee structure. 7. Use of facility by schools and development of junior pro,ams: I think it is great to offer our local high school boys' and girls' golf teams the opportunity to play and practice during the school year golf season. It provides increased interest and support from our local golfers, and helps to create a new golfer base who will utilize the course, bringing in additional revenue. Over the years in Ukiah, I have offered a junior golf program with over one thousand kids participating in the program. These kids have gone on to play major college golf, and some have become PGA golf professionals. These kids are the future of the game of golf and our continued success as a golf course. The junior golf program I have developed over the years is a work in progress. Over the years, I have added to my program, including a 3-day camp for children ages 5 through 15, with instruction of all types from full swing to shot game, rules, and etiquette. For the past 16 years, the camp opportunity has been provided at no charge to the participants, along with a tee-shirt for each child. We also offer junior tournaments, leagues, sweeps and one-on-one lessons for the children. 8. Tournament policies: Tournament policies are necessary to provide fair and consistent services to our customers. The policies currently include a fee structure for all golfers, whether local or out-of-town, number of players needed for a tournament, whether tee times or shotgxm, a booking fee which consists of a prize fund to be spent in the pro shop, and information on how to book a tournament, and deadlines on payment or cancellations. 9: Pro shop design and dress code for golf professional staff: The pro shop design is essential because it represents the golf course image, and enables methods to display and sell merchandise. The shop should be updated every year to give a new, fresh look to customers. The design must be functional for both staff and customers. It is important to maintain a clean, well-kept and welcoming atmosphere, and to carry current equipment, as well as styles in shoes and clothing for both women and men to the extent possible in the space available. At present the pro shop meets these standards. The golf staff represents the course and is a customer's first impression of' the level of quality and professionalism maintained there. The golf staff is the connection to the customer, and he or she needs to be professionally dressed at all times. It should always be a priority goal to exceed the customers' expectations, and a good dress code will support this objective. I have always stressed the importance of my dress code at Ukiah, and will continue to do so. EXPERIENCE 1970-1979 Skagit Golf and Country Club (Washington): summer golf course crew member; performed all general duties, and all types of maintenance from mowing greens to rough, bUilding bunkers, installing sprinkler systems 1983-1989 Aptos Seascape Golf Course (California): Assistant golf professional; during my time at Aptos I learned all aspects of the golf business and also obtained my Class "A" PGA membership 1990-present Ukiah Municipal Golf Course: Employed as head golf professional and director of golf shop operations; perform all duties as set forth by the current R.F.P. for the City of Ukiah. PERSONNEL REQUIREMENTS As the head Golf Professional I would employ an assistant PGA golf professional who would be responsible for extending goodwill among all customers and their guests, teach and promote the game of golf, assist with maintaining a neat and clean golf shop.~ assist with inventory, receive and price merchandise, sell merchandise and follow daily procedures. I would also employ a shop person who would extend goodwill among all customers and their guests, welcoming the golfers and helping them enjoy their experience at Ukiah Municipal Golf Course. This shop person would also assist with selling merchandise, and maintaining an attractive shop. REFERENCES Ron Ledford P.O. Box 190 Talmage, CA 95481 (707) ~- Norm Johnson 1451 Christopher Ct. Ukiah, CA 95482 (707), Chris Philbrick (707) ,' Faye Hefie 611 Chablis Ct. Ukiah, CA 95482 (707). Jim Brown 596 N. School St. Ukiah, C A95482 (707), Robert Dorsey 1211 N. State St. Ukiah, CA 95482 (707) z~ ...... Aftachment #_ ~ Golf Professional Reference Survey Pro: Reference Name' Please rate each question on a scale of 1 (lowest) to 10(highest). Rate(l-10) 1. How would you rate the customer service level of the applicant? . How would you rank the success of the marketing and advertising programs for the course? 3. How would you rate the success of their junior program? 4. How would you rate the overall success of their instructional program? 5. Rate their interaction with the local men's and women's golf clubs? 6. How would you rate the quality and presentation of merchandise in the pro- shop? 7. How would you rate the quality and selection of food and beverage? . How would you rate the applicants aptitude to implementing new technology, such as a point of sale system, on-line reservations, and website? 9. How would you rate the overall layout and presentation of the pro- shop? 10. Does this applicant have clear goals that are consistent with the community's desires? 11. How would you rate the applicant ability to assist with the planning, development and implementation of improvements to the course and pro-shop? AGENDA SUMMARY ITEM NO. 9b DATE: February 15, 2006 REPORT SUBJECT: ADOPTION OF RESOLUTION CALLING SPECIAL MUNICIPAL ELECTION, REQUESTING THE CONSOLIDATION OF THE ELECTION WITH THE STATEWlDE ELECTION TO BE HELD JUNE 6, 2006, REQUESTING MENDOCINO COUNTY TO CONDUCT THE ELECTION, AND APPROVING A BALLOT MEASURE TO BE PLACED ON THE BALLOT FOR SUCH ELECTION. SUMMARY: The City Council has decided to present a ballot measure on the June 6, 2006, ballot. The measure will ask the voters whether they want to restore the practice in effect in the City for 100 years prior to 1986 of rotating the position of mayor among the five elected members of the Ukiah City Council and to discontinue the practice of the last 20 years of directly electing the mayor every two years. In order to conduct a special election on June 6, 2006, on this measure, the City Council must adopt the resolution attached to this agenda summary report. The Resolution does the following: 1. It calls a special municipal election for June 6, 2006; 2. It consolidates the election with the statewide election scheduled for June 6, 2006; 3. It requests the Board of Supervisors to permit the County Elections Clerk to conduct the election; 4. It approves the form of the ballot measure; Continued on Page 2 RECOMMENDED ACTION: (1) Adopt Resolution calling election, consolidating election with statewide June 2006 election, requesting Mendocino County to conduct election, approving ballot measure, and authorizing designated City Council members to file rebuttal argument, if required. ALTERNATIVE COUNCIL POLICY OPTIONS: Revise and adopt documents Citizen Advised: N/A Requested by: City Council Prepared by: City Attorney Coordinated with: City Clerk, City Manager Attachments: 1. Resolution Calling Election, County Election Services, Ballot Measure and other matters C City Manager March 1, 2005 Page 2 of 2 5. It directs the City Clerk to transmit the measure to the City Attorney for an impartial analysis; 6. It directs the City Clerk to publish notice of the election as required by law and to publish notice of ballot arguments as required by law; and 7. Authorizing designated City Council members to file rebuttal argument, if required. Under Elections Code Section 9286 the City Clerk is required to fix a date 14 days from the calling of the election as a deadline, after which no arguments for or against any city measure may be submitted for printing and distribution to the voters. Within that 14 day time period, the city clerk must accept arguments for the measure and arguments against the measure. The City Council or one or more members of the City Council, authorized by the City Council, may file a written argument for the measure. Any individual voter who is eligible to vote on the measure, or bona fide association of citizens, or any combination of voters and associations, may file a written argument against the measure. (Elections Code §9282.) The City Clerk is required to send a copy of any arguments received for or against the measure to the authors of the arguments. The authors of the arguments for or against the measure may submit a rebuttal argument not exceeding 250 words. The rebuttal argument must be filed with the City Clerk no later than 10 days after the final filing date for the primary arguments. (Elections Code §9285.) To adhere to this schedule, the City Council would have to approve and file with the City Clerk a ballot argument for the measure no later than March 1, 2006. A rebuttal argument, if required, could not be approved at a regular City Council meeting. Accordingly, the proposed resolution authorizes designated members of the City Council to file a rebuttal argument on behalf of the City Council. The City Council should decide who will be designated to file the rebuttal argument. Attachment # RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH CALLING FOR CONSOLIDATING MUNICIPAL ELECTION PRESENTING BALLOT PROPOSITION WITH JUNE 2006 STATEWIDE ELECTION, REQUESTING BOARD OF SUPERVISORS TO DIRECT COUNTY ELECTIONS CLERK TO CONDUCT ELECTION, PRESENTING BALLOT MEASURE, TRANSMITTING MEASURE TO CITY ATTORNEY FOR IMPARTIAL ANALYSIS AND AUTHORIZING ARGUMENTS AND REBUTTAL ARGUMENTS IN FAVOR OF MEASURE. WItEREAS, 1. Election Code Section 10403 authorizes the City Council of the City of Ukiah ("City") to request the Mendocino County Board of Supervisors to consolidate a municipal election with the statewide election scheduled for June 6, 2006; and 2. The City Council shall set forth in the resolution the exact form of any ballot measures to appear on the election ballot and other matters necessary or convenient to call a municipal election to consider a ballot measure and consolidate it with a statewide election; and 3. Section 10002 of the Elections Code of the State of California authorizes the Clerk of the County of Mendocino to render specified services relating to the conduct of an election to any city or district which has by resolution requested the Board of Supervisors to permit the County Clerk to render the services, subject to requirements set forth in that section; NOW, THEREFORE, BE IT RESOLVED that: 1. The City Council hereby calls a municipal election for June 6, 2006. 2. The City Council authorizes a ballot proposition for said election as follows: MEASURE Shall the practice of the direct election of the mayor for a two year term be eliminated and the previous system be restored whereby the City Council appoints the mayor from among the five elected City Council members, all of whom serve four year terms? · Yes · No 3. The City Council hereby requests the Mendocino County Board of Supervisors to consolidate the above-referenced municipal election with the statewide election scheduled for June 6, 2006. 4. The Board of Supervisors of the County of Mendocino is hereby requested to permit the County Clerk to perform and render all services and proceedings incidental to and connected with the conduct of the special municipal election of the City of Ukiah with the cooperation and assistance of the City Clerk of the City of Ukiah, such services to include, but not be limited to, the following: 1) 3) 4) 5) 7) 8) 9) Establish voting precincts, secure locations for polling places, and secure the services of election officers for each precinct as required by law. Prepare and furnish to the election officers necessary supplies for the conduct of the election. Cause to be translated, as appropriate, and printed the requisite number of sample ballots, official ballots, rosters and other necessary forms. Make necessary arrangements for the delivery of supplies to the various precincts. Distribute absent voter ballots as required by law. Receive the return of elections material and supplies. Canvass the returns of the election, including the absent voter ballots. Furnish a tabulation of the number of votes cast in each precinct. Make all the necessary arrangements to pay the precinct board members and other costs of the election incurred as the result of services performed for the City of 2 10) 11) Publish a list of precincts, election officers; polling places and hours polls will be open. Verify signatures appearing on petition papers. 5. The City Clerk shall transmit a copy of the ballot measures set forth in section 2 of this Resolution to the City Attorney for the preparation of an impartial analysis as required by Elections Code Section 9280. 6. The City Clerk is directed to publish the Notice of Election, as required by law. 7. The City Clerk is directed to publish notices related to arguments for and against said measure as required by law. 8. are hereby authorized to submit a rebuttal argument on behalf of the City Council to any argument submitted in opposition to the measure. PASSED AND ADOPTED by the City Council of the City of Ukiah on this 15th day of February 2006, by the following roll call vote: AYES: NOES: ABSTAINING: ABSENT: ATTEST: Mark Ashiku, Mayor Made Ulvila, Deputy City Clerk ~'I'EM NO: 9.c. DATE: February 15, 2006 AGENDA SUMMARY REPORT SUB3ECT: DI'SCUSSTON AND DI'RECT]:ON REGARDI'NG FUTURE CONS]:DERATi'ON OF REVI'S]:ONS TO THE CTTY S]:GN REGULATi'ONS SUMMARY: Recently, the Council decided to agendize a discussion of alternative approaches to revising the City sign regulations at a regularly scheduled meeting. This Agenda item is intended to fulfill that direction. BACKGROUND: Over the past several years, Staff and the Planning Commission have been working on revising the City's sign regulations. The original direction to undertake this project was provided by the Planning Commission and City Council after a series of public discussions about the existing regulations. The General Plan also calls for sign regulations that "focus on creating an environment in which signs can serve marketing needs in an attractive and informational manner." Since 2001, the Planning Commission has conducted eight public discussions regarding the sign regulations, and the Council has discussed it four times. Additionally, Staff has conducted meetings with the Chamber of Commerce, sign contractors, Hain Street Design Committee, members of the Employers Council, and other interested parties to discuss issues, concerns, and ideas. (continued on page 2) RECOMMENDED ACI'ZON: Discuss alternatives for future consideration of revising the City sign regulations and provide direction to Staff. ALTERNATWE COUNCI'L POLZCY OPT]:ON: Provide alternative direction to Staff. Citizens Advised: Interested groups, organizations, and individuals Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Hanager Attachments: 1. Example sign regulations from other jurisdictions (previously distributed). APPROVED: Last July, the Planning Commission completed its public hearing process and formulated a recommendation for revising the regulations to the City Council. ]:n September, the City Council conducted a public hearing to consider the Planning Commission recommendations. After the public hearing, the Council decided to continue the discussions and directed Staff to arrange a public workshop dedicated solely to the sign regulations. As indicated above, the Council recently decided to agendize a discussion of alternative approaches to revising the City sign regulations at a regularly scheduled meeting. ALTERNAT/VES: The Council has a wide range of alternatives in regard to the City sign regulations. The following list provides a brief discussion of a number of possible alternatives. Do not revise the existing regulations: The Council could decide to not update the existing regulations. There has been public testimony opining that the 1983 sign regulations do not need to be updated and that they merely need to be consistently enforced. This alternative could include direction to begin a comprehensive sign regulation enforcement program. w Review and consider adopting the Planning Commission recommendations for revising the regulations: The Council could review, edit, modify, etc. the Planning Commission recommendations for revising the regulations. Review recently adopted sign regulations for other jurisdictions and provide direction to Staff: This alternative would provide the Council with examples of how other communities are approaching the regulation of signs. The Council could select an example to model our regulations after, and/or pick and choose various provisions from the different regulations and direct Staff to prepare a new draft for consideration. B Consider preparing individual sign regulations for the different zoning districts in the City: This approach would create individual sign regulations for the C-1 (Community Commercial), C-N (Neighborhood Commercial), R-1 (Low Density Residential), etc. zoning districts. RECOI~II~IENDA'I']:ON: Discuss alternatives for future consideration of revising the City sign regulations and provide direction to Staff. AGENDA SUMMARY ITEM NO. 10.a DATE: February 15, 2006 REPORT SUBJECT: APPROVAL OF FISCAL YEAR 2005-2006 MIDYEAR BUDGET AMENDMENT At the halfway point in the fiscal year the City traditionally reviews expenses versus the approved budget. Since specific proposed expenditures over $10,000 require pre-approval of the Council (with exceptions for emergencies) and $5,000-10,000 items require separate Council notification, such items are not addressed in this budget review. Instead, expenditures are reviewed for run-rate (will current budget cover the full year at current pace of expeniditures?) and for unanticipated events not addressed elsewhere through a separate Council action. We are looking for budgeting oversights and errors, missed estimates and the kind of items that can gradually generate an overage at the end of the year without raising an early "red flag", such as fuel costs. Staff will be present to discuss one new program request in the police department and one in the fire department. Attachment A provides a summary, by department, of the requested mid-year budget amendments. Directors will be present to respond to any questions the Council may have related to their proposed amendments. Please note that the midyear budget amendment does not include the significant, unanticipated costs the City incurred with New Year's storms and flood. Staff will be returning to Council with an update on the impact of the recent storms at a future date. Staff is recommending Council approve the budget amendments as presented. RECOMMENDED ACTION: Approve Attachment A - Summary of Plroposed Mid-Year Budget Amendments - Fiscal Year 2005/2006. ALTERNATIVE COUNCIL POLICY OPTIONS: 1) Determine modifications to budget amendment are necessary, identify changes, and approve revised amendment. 2) Determine budget amendment is not necessary and take no action. Citizen Advised: N/A Requested by: N/A Prepared by: Sue Goodrick, Risk Manager/Budget Officer & Mike McCann, Finance Director Coordinated with: Department Directors and Candace Horsley, City Manager Attachments: A - Summary of Proposed Midyear Budget Amendments APPROVED: Candace Horsl~y,~Manager AGENDA SUMMARY ITEM NO. 10.b. DATE: February 15, 2006 REPORT SUBJECT: CONTINUED DISCUSSION AND CONSIDERATION OF AN ORDINANCE REGARDING CAMPAIGN REFORM -- BALDWIN, RODIN Vice Mayor Baldwin had brought forth the subject of City campaign reform at a previous Council meeting. The City Council discussed the issue and requested that the Vice IVlayor and Councilmember Rodin prepare information and data regarding this issue for further Council discussion. The attached documents are submitted by the two Councilmembers for review, dialogue and possible action. RECOMMENDED ACTION: DISCUSSION AND POSSIBLE ACTION ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Vice Mayor Baldwin and Councilmember Rodin Candace Horsley, City Manager I - Memo from Rodin and Baldwin dated February 15, 2005 2 - Practical Campaign Reform for States - The Reform Institute APPROVED~ Candace Horsley, City Mana~)~r Attachment # / TO: UKIAH CITY COUNCIL MEMBERS FROM: PHIL BALDWIN & MARl RODIN RE: CITY CAMPAIGN REFORM ORDINANCE DATE: FEBRUARY 15, 2005 Campaign reform will enhance the quality of our democracy by promoting the fundamental principles and values of a free society. It will help reconnect citizens to the political process, encourage greater individual involvement in public affairs, and produce a more responsive, transparent and accountable govemment~. Our proposal for campaign reform in Ukiah addresses two areas: campaign contribution limits and campaign disclosure. Instituting limits in these areas will ensure a level playing field for candidates (and ballot measures). A level playing field will, in tum, promote local democracy by reducing the influence of money and enhancing public trust, participation, and discussion of public policy. More than 75 local govemments nationwidc ~ncluding many in neighboring Sonoma and Marin Counties--plus several states, have adopted campaign reform laws. Most have been drafted in response to problems that have arisen. We are being proactive in advancing an ordinance to prevent corruption of our political process. Our proposal, which is based on examples from municipalities large and small, contains the following major elements: A $100 limit on campaign contributions from individuals, businesses, and independent committees; · Public disclosure of contributors who donate $25 or more to a campaign; · A voluntary campaign spending cap of $5,000, with incentives to encourage participation; A candidate who agrees to abide by the $5,000 spending limit may identify himself/herself as a "Fair Campaign Finance Candidate" on all campaign literature and advertisements. Likewise, candidates not abiding by the spending limit must so disclose in their campaign literature and advertisements. We have fleshed out the finer points of a campaign reform ordinance below. It is our intent to discuss them as a council. Once we have majodty support for the elements of an ordinance, we can ask our city attorney to draft a legally acceptable version. We wish to thank Ron Epstein for providing us research findings, resources, examples of other ordinances and helping to guide our discussions. The Center for Governmental Studies at UCLA also provided feedback on our first draft. We found the introductory chapter from a report called Enhancing Values: Practical Campaign Reforms for States (included in your packet) to eloquently state the purpose and goals of campaign reform. Although this report advocates for public financing of campaigns, which we are not proposing, it nevertheless shows the broad political support for campaign reform in general. This report was written under the auspices of The Reform Institute, whose advisory board chair is Senator John McCain. 1 Adapted from: Enhancing Values: Practical Campaign Reforms for States. The Reform Institute. (Year unknom3) Page1 CAMPAIGN CONTRIBUTION UMITS: . 7. A limit of $100 per adult or business to each candidate, initiative, referendum, or recall campaign dudng the election cycle prescribed (described below). (Rationale: To level the playing field for candidates, so that candidates who have connections to large sums of money do not have a financial advantage over other candidates.) A limit of $100 per adult or business to an independent committee which directly or indirectly, receives contributions or makes expenditures or contributions for the purpose of influencing or attempting to influence the action of the voters in a municipal election for or against the nomination or election of one or more candidates, or an initiative, referendum, or recall (hereafter "Independent Committees") dudng the election pedod (cycle) prescribed. (Rationale: to prevent an interest group from having a larger influence---via fundraising or campaigning--over the course of a campaign than the candidates themselves.) Limit in-kind contributions or gifts to be used in campaigns to $500 for professional services and $100 for matedal items of any kind for candidates and Independent Committees based on estimated fair market value. Contributions by a person and his or her spouse shall be treated as separate contributions and shall not be aggregated. Contributions by children under eighteen shall be treated as contributions by their parents and attributed either one-half to each parent or entirely to a single custodial parent. (Rationale: To close a loophole that would allow families with children from cumulatively giving more than what is intended by the ordinance.) All candidates agreeing to a voluntary campaign spending limit of $5,000 and having a minimum of $500 in their campaign treasury or 200 signatures from registered Ukiah voters will be offered: A. Free ballot statement in the official sample ballot. B. Free inclusion of candidate photograph and up to 1000 word statement displayed on the City's web site. C. Mention in a City news release within one week of election filing date of commitment to abide by the voluntary campaign contdbution---a "Fair Campaign Finance Candidate". D. Inclusion of photograph and up to 750-word statement in a city newsletter distributed 6 to 2 weeks pdor to election. (Rationale: To encourage viable, legitimate candidates to keep to reasonable spending limits and to keep candidate budgets roughly similar.) Limits will be indexed to the Northern Califomia C.P.I. and be revised every two years before the election cycle begins. (Rationale: To ensure that contribution limits remain in line with the cost of running a campaign.) The period in which contributions may be collected will be begin March I preceding a November election and October 1 preceding a June election. An election cycle--for the purposes of this ordinance--will end at 5pm on the Thursday prior to the election. (Rationale: A nine month campaign period seems reasonable while not allowing candidates to bank money from election to election, which might provide an incumbent with an unfair advantage. The purpose of setting an ending date the Thursday before an Page 2 election is to avoid having a candidate receive large contributions just prior to an election, which might provide an unfair advantage over other candidates.) No loans to the candidate or committees formed or existing pdmadly to support or oppose candidacies or a candidate for city office may be made after the closing of the election cycle noted in #6 above. No funds may be collected to repay loans after this final date. (Rationale: To prevent candidates from avoiding reporting requirements by accepting last minute loans to be repaid anonymously after the election.) CAMPAIGN CONTRIBUTION DISCLOSURE: Public disclosure is required for all cumulative contributions to either candidates or Independent Committees of $25 or more from individuals, businesses, or committees formed or existing pdmadly to support or oppose candidacies or a candidate for city office. This disclosure shall apply to ballot initiatives, referenda, and recall campaigns as well. 'Di_sc. lo_sure_ _she_Il _in_cl_ude _n.a ._re_e,_ a_.dd_re_s_s,_ a_n_d_ _oc_cu_p_a_ti _on_. ~r__type_ _, o..f_b_u_si_n~s_s_o_r ............ organization (just like FPPC forms). (We need a schedule of disclosures. Is FPPC schedule enough-other than requiring the pre-election report?) (Rationale: To see what interests, if any, are supporting the candidates.) 2. Public disclosure of expenditures greater than $500 in an election cycle by any Independent Committee formed or existing primarily to support or oppose candidacies or a candidate for city office. This disclosure shall apply to ballot initiatives, referenda, and recall campaigns as well. (Following same schedule as for other disclosures.) (Rationale: To see what interests, if any, are supporting the candidates.) . Contributions will be disclosed on FPPC reports filed with the city clerk on the FPPC schedule. Contributions collected between the final disclosure required by the State FPPC and the Thursday pdor to the election shall be reported to the city clerk by noon on the Fdday before the election. (Rationale: In stopping the collection of campaign funds several days before the election, we ensure the public a chance to learn of all financial contributions, even the last minute ones.) 4. After a candidate or Independent Committee has collected a minimum of $3,000, all disclosure statements to the FPPC and city clerk will be displayed on the City's web site. (Rationale: This will allow the public to easily assess the support of viable candidates.) 5. All candidates and Independent Committees shall establish an election campaign account into which shall be deposited all sums collected and from which all funds will be dispersed. DISCLOSURE ON MASS MAILINGS, ADVERTISEMENTS, AND POLLS 2. Candidates and Independent Committees must disclose on any mass mailings, telemarketing/phone banking, radio advertising, television advertising, or opinion polling if he/she is or is not a candidate or Independent Committee that has voluntarily adopted the $5,000 spending limit. (We can adopt font size requirements for pdnt material. Also we can require highest donor declarations for those going over the $5,000 limit.) Candidates who agree to the voluntary campaign spending limit of $5,000 shall be permitted to use the phrase "Fair Campaign Finance Candidate" on any promotional materials including flyers, posters, mass mailings, telemarketing/phone banking, radio advertising and television advertising. Candidates who do not voluntarily agree to the $5,000 spending limit shall not use that phrase or any similar phrase in promotional materials. Page 3 Independent Committees that agree to a voluntary campaign spending limit of $5,000 shall be permitted to use the phrase 'A Fair Campaign Finance Committee" on any promotional materials including flyers, posters, mass mailings, telemarketing/phone banking, radio advertising and television advertising. Independent Committees that do not voluntarily agree to the $5,000 spending limit shall not use that phrase or any similar phrase in promotional materials. PROHIBITION OF "LAUNDERED" CAMPAIGN CONTRIBUTIONS No candidate, committee, or campaign treasurer shall accept any campaign contribution made directly or indirectly, by any person in a name other than the name by which the contributor is known and identified for legal purposes, or in the name of any different person, or combination of parsons, other than the name of the actual contributor. No person shall, in his or her or its own name, make a contribution of any thing of value belonging to another person, or that was received from another person on the condition that it is used as a campaign contribution. Such practices are commonly known as Ulaundedng" campaign contributions. Upon discovery by any candidate, committee, or campaign treasurer of the receipt of any such Ulaundered" campaign contributions in violation of this section, the candidate, committee or campaign treasurer shall promptly pay to the city clerk for deposit to the city's general fund, from any of the candidate's or committee's available campaign funds, the amount of such "laundered" campaign contributions received in violation of this section. (21-5 of Novato ordinance.) (Rationale: To clarify the intent of this ordinance and to make it clear that violating the elements of this ordinance by indirectly contributing beyond what is expressly stated is inconsistent with the spirit of this ordinance.) ENFORCEMENT AND PENALTIES (SEE COTA TI ORDINANCE FOR GOOD ENFORCEMENT SECTION) Penalty for not submitting the last report by noon on Friday before the election will be $500 per calendar day, or any portion of a calendar day, after the deadline, if the total budget for the campaign is within the $5,000 voluntary spending limit. If the total budget for the campaign is over $5,000, the candidate will be liable for an amount equal to the total funds received (donation or loan) in the last filing period. Penalty for failing to properly or accurately report contributions and expenditures will be three times the amount he/she fails to properly report or unlawfully contributes, expends, accepts, gives or receives, or five hundred dollars per violation, whichever is greater. 3. A winning candidate who is found to be in violation of this ordinance must relinquish the seat won. 4. Severability clause. (If one portion of the ordinance is found to be invalid, the whole ordinance will not be found to be invalid.) Page4 SENATOR JOHN S. McCAIN Chair of Advisory Board RICHARD H. DAVIS President TREVOR POTTER Legal Counsel CECILIA I. MARTIN EZ Executive Director ENHANCING VALUES: PRACTICAL CAMPAIGN REFORMS FOR STATES PROJECT DIRECTORS ANTHONY CORRADO Professor of Government Colby College DANIEL ORTIZ Professor of Law University of Virginia School of Law The Reform Institute 211 North Union Street, Suite 250 Alexandria, VA 22314 Tel (703) 535-6897 Fax (703) 299-9110 www. reforminstitute.org info@reforminstitute.org I DUC N THE PRINCIPLES and Goals of Reform Campaign finance laws enhance the quality of our democracy by promot- ing the fundamental principles and values of a free society. An effective system of campaign funding ensures that candidates and other par- ticipants in the political process have an opportunity to gather the resources needed to wage viable campaigns and share their views with the public. By doing so, the laws expand the choices available to voters and promote more robust public debate. An effective funding system also protects the integrity of the political process by minimizing corruption, reducing the influence of money, and foster- ing equality of political participation. In ful- filling these goals, campaign finance rules can strengthen our democracy and restore people's faith in government and public officials. They can help reconnect citizens to the political process, encourage greater indi- vidual involvement in public affairs, and produce a more responsive, transparent and accountable government. Campaign finance reform alone will not resolve all of the problems in our political system, but well-crafted reforms make a valuable contribution to the health of our democracy. Most importantly, they can revi- talize the basic principles that form the foundation of our government. This is espe- cially true when comprehensive approaches to reform are adopted. But even smaller changes can make a big differ- ence in promoting the cause of good government. To be effective, campaign finance laws should aim to achieve the following objectives, which constitute the basic pur- poses of regulation in this area. 1. Campaign finance laws should provide adequate funding for political campaigns. Money is said to be the "mother's milk" of politics, because it is the means of acquir- ing the goods and services needed to wage viable campaigns. The health and vitality of our democracy depends in part on the ability of candidates, parties, and political groups to garner the resources needed to make their case to voters. Any system of campaign finance should ensure that candidates and other active citizens have a fair opportunity to conduct well- funded, competitive campaigns. ENHANCING VALUES: PRACTICAL CAMPAIGN REFORM FOR STATES ~ The Reform Institute Campaign finance laws must preserve the freedom of speech and political association, and allow candidates and others to amass the funds needed to engage in effective advoca- cy. The rules should not be so restrictive as to impose unfair burdens on candidates and political organizations or to impede their abil- ity to raise the funds needed to communicate with the electorate. Instead, they should encourage citizens to express their views and to participate financially in election cam- paigns. At the same time, the law should bal- ance this objective with the other principles of reform to protect against the detrimental effects that unregulated money can have in the political system. 2. Campaign finance laws should protect the integrity of the political process. The U.S. Supreme Court, almost three decades ago, held that the "primary interest" served by campaign finance legislation "is the prevention of corruption and the appearance of corruption spawned by the real or imag- ined coercive influence of large financial con- tributions on candidates' positions and on their actions if elected to office."' Campaign finance laws must protect the integrity and legitimacy of representative gov- ernment against the corruptive and undue influence that can accompany political gifts. Without strong safeguards to diminish the influence of money in the political process, the representative character of our democra- cy is undermined, and public confidence and trust in government is lost. The threat of con-uption or undue influ- ence is greatest when there are no limits placed on political contributions, and when contributions are not disclosed to the public in a timely manner. Campaign finance regula- tions should contain strong measures that prohibit the exchange of campaign donations for political quid pro quos and prevent donors from buying access to elected officials or candidates for office through large politi- cal gifts. At a minimum, the rules should: · Prohibit large, unregulated political con- tributions · Prohibit contributions from corporations, regulated utilities, and labor unions · Prohibit cash contributions, except for small individual donations · Place reasonable limits on contributions from individuals and political committees · Require full public disclosure of contri- butions to candidates, parties, and politi- cal committees · Require full public disclosure of the monies raised and spent on independ- ent expenditures and electioneering communications The best regulatory approaches go beyond the disclosure and regulation of contributions. These systems seek to reduce the role of private money by providing public resources to candidates fbr the financing of their campaigns. In the most comprehensive program of reform, candi- dates are able to receive public resources to finance their campaigns, eliminating alto- gether the need to raise substantial amounts of money in private contributions. Other approaches to reform offer public resources to candidates as an incentive to encourage small donations from individuals, thereby empowering small contributors, broadening citizen participation in the financing of elec- tions, and diminishing the role of large donors and special interests. 3. Campaign finance laws should ensure transparency and public accountability. Elections provide citizens with an opportu- nity to vote for the candidates and policy choices that best represent their views. In order for individuals to make informed decisions, they need to have access to information about the candidates and their positions. This includes access to informa- tion about the sources of a candidate's support and the sources supporting the messages being distributed to influence I N T R 0 D U C T I 0 N ~ The Principles and Goals of Reform elections and public policy debates. Full, timely, and effective public disclosure of the financial activity that takes place in elections is thus an essential requirement of any campaign finance system. Full public disclosure of the monies raised and spent in connection with elec- tions offers a number of benefits. First, dis- closure promotes transparency and thus facilitates public scrutiny of the financial transactions that take place in an election. As the experience with financial transac- tions in the business community and other areas of the private sector has demonstrat- ed, roles that promote transparency and public review can be an effective vehicle for identifying and addressing financial abuse. Disclosure is therefore a necessary, but not sufficient, means of safeguarding the integrity of the political process and thwarting corruption. Second, disclosure helps promote a more informed electorate. By providing informa- tion about the sources of funding backing a candidate or political group, disclosure provides citizens with important informa- tion that can help to distinguish the choices they face. Furthermore, it enhances the ability to hold public officials accountable for the financial practices that take place in an election. Finally, disclosure facilitates more effec- tive enforcement of the law. It yields a pub- lic record of the contributions and expendi- tures made in each election, which makes it easier for enforcement agencies to monitor the transactions that take place in a cam- paign and identify violations of law. The most effective disclosure rules require more than a simple accounting of the monies raised and spent in a campaign. To be effective, the rules must ensure time- ly reporting and include provisions for making information available to the public in an easily digestible form. The rules should also require timely reporting of independent expenditures and monies spent on electioneering communications, and special reporting requirements for con- tributions or expenditures made late in a campaign. The best systems provide for electronic disclosure, facilitating public access via the Internet, in a form that can be easily searched by voters who seek information about a particular candidate or political committee, or the contribution activities of particular donors. This is the most efficient means of ensuring that all citi- zens have an opportunity to access the information they seek on campaign funding. E D CORRUPTION ELE 1905 4. Campaign finance laws should empower citizens and reduce the influence of special interests. A truly representative government that reflects the will of the people and enjoys the confidence and trust of its citizens can only be acNeved by reducing the influence of special interests in government. Campaign finance rules should not favor monied inter- ests. Rather, they should empower individu- als and expand their influence. Reforms that enhance the role of individuals increase the responsiveness of the political system and restore the power of' individual citizens to determine the outcome of elections and the direction of government policy. The key to reducing the influence of spe- cial interests and returning power to indi- vidual citizens is to increase the value of individual donors who give small amounts to the candidates of their choice. Reforms that serve this purpose include: ENHANCING VALUES: PRACTICAL CAMPAIGN REFORM FOR STATES ~ The Reform Institute · Voluntary public campaign funding pro- grams that emphasize low-dollar qualify- ing contributions · Programs that offer public matching sub- sidies on individual contributions to amplify the value of small contributions · Tax credit incentives to encourage indi- viduals to participate financially in politi- cal campaigns · Rules that promote individual participa- tion by allowing contributions to be made via the Internet 5. Campaign finance rules should encour- age electoral competition. Elections best serve their purpose when they are characterized by high levels of competition. Competitive elections offer voters more meaningful choices. They attract greater interest within the elec- torate and produce higher levels of voter participation. They also attract a larger number of candidates, since individuals considering service in public office are more likely to stand for election when they know they have a fair chance in seeking an office. When elections are competitive, citizens win. Money is not the only factor that affects the level of competition in an election. Ballot access rules and the methods used to draw district lines also play an impor- tant role in determining the fairness and independence of electoral contests. But campaign finance laws can enhance the fairness of elections and the quality of choices available to voters by ensuring that incumbent officeholders and the wealthy do not have an unfair advantage in election campaigns. The rules should help to level the playing field by incorpo- rating reforms that serve to improve the resources available to the challengers. Such an approach helps to ensure that elections are decided on the basis of a candidate's message, not the size of a campaign's warchest. To encourage competition, campaign finance laws should include such reforms as: · Voluntary public campaign funding with accompanying limits on campaign spend- ing for candidates who accept public resources · Supplemental public funding to help can- didates maintain competitive levels of spending when facing privately funded, high-spending opponents · Rules that encourage participation in broadcast candidate debates, at least for candidates running for statewide office · Provisions that require the Secretary of State or other appropriate election official to prepare and disseminate to the public impartial voter guides offering information about candidates and ballot propositions 6. Campaign finance laws should guarantee effective enforcement and administrative support. Effective administration and enforcement of the law is an essential component of any regulatory system. Indeed, the recent experi- ence with campaign finance regulation at the national and state and local levels suggests that the objectives of reform will only be achieved if regulations are independently administered, vigilantly monitored, and strict- ly enforced. Any effort to regulate the role of money in politics must give due regard to the needs to administer and enforce the law. Most impor- tantly, the laws should establish an inde- pendent, unelected agency responsible tbr administering and implementing regulations, set forth clear enforcement procedures, and contain strict penalties for violating the rules. Adequate budgetary support and staffing is also essential, since the agency or office responsible for the law can cmTy out its functions only if it has the resources to per- form all of its duties. Too often the benefits of reform have been diminished by the fail- ure to provide administrators with the neces- sary authority and resources. THE REFO INSTITUTE- OUR UNIQUE, INDEPENDENT VOICE The health of a free society can be meas- ured by the willingness of ordinary people to take an active role in the nation's dem- ocratic institutions. The Reform Institute's mission is to help reestablish the essen- tial connection between citizens and their government, and to renew the American tradition of meaningful, active citizen par- ticipation in the nation's civic life. Led by Senator John McCain, the Institute is a nonprofit, nOnpartisan 501(c)(3) educational organization dedi- cated to achieving those goals by pro- moting open and fair elections, by reduc- ing the influence of special interests in our politics, and by neutralizing the politi- cal influences percolating into the reform debate. The Institute is a unique, independent voice in the constellation of watchdog organizations. We are entirely non- partisan and strive for objectivity in our approach. We believe the reform agenda spectrums, including business leaders, elected officials and, most importantly, average Americans who are tired of poi- itics as usual and have been inspired by Senator McCain's principles of reform. The Institute's distinctive network is reflected in the members of our Advisory Board--a bipartisan group of notable academics, legal experts, elec- tion administrators and public officials. This includes Charles Kolb (Committee for Economic Development), Norm Ornstein (American Enterprise Insti- tute), Tom Mann (Brookings Institution), U.S. Senator Lindsey Graham, David Pottruck (CEO, Charles Schwab) and for- mer U.S. Senators David Boren and Bob Kerry. These and other members of the Board have joined forces to carry forward the reform agenda from a mod- erate vantage point. The Institute is proud to carry forward can only flourish when partisan politics Senator John McCain's work in campaign are largely removed from the debate, finance and 'election reform, and to work The Institute brings together a broad toward a more responsive, open democ- base of reformers frOm all ideological racy for all Americans. AGENDA ITEM NO: 10.c MEETING DATE: February 15, 2006 SUMMARY REPORT SUBJECT: RECEIPT OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR 2004-2005. This agenda item officially presents the Audited Financial Statements for the fiscal year ended June 30, 2005 for the Council's acceptance. I want to thank everyone involved in the City's accounting process. Achieving a clean audit is the result of thoroughness and attention to detail in the daily work of people at all levels in many departments. The City once again had a very good audit. Both the Independent Auditors' Report (pages 1-2) and the Schedule of Findings and Questioned Costs (page 55) were completely clean, indicating that the City is in full compliance with accounting standards and the auditors had no procedural findings or questioned costs. Of particular concern with our pending bond sale, the Statements demonstrate financial stability with adequate cash reserves as well as prudent debt and investment policies. On a full accrual accounting basis (including the net fixed assets and long-term debt), the City's net assets increased'by $3,067,000 with 42% of the gain was in governmental funds and 58% in enterprises. On a fund accounting basis (excluding fixed assets and long-term debt) the General Fund balance decreased $338,134 to $3,618,909, including the General Fund reserve funds 110 & 115. (continued on page 2) RECOMMENDED ACTION: Accept and file the Audited Financial Statements for the Year ended June 30, 2005 ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staff with alternative direction. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: ended June 30, 2005 Mike McCann, Finance Director Candace Horsley, City Manager Bound copy of Audited Financial Statements for the Year Approved: ~ Candace Horsley~(~;ity Manager Back.qround: Outline of Audited Financial Statements The following material is provided as guide for reading the Statements. Staff is available to the Council and public to schedule time to review the Statements in greater detail. Prior year Statements are also on file and available for review. The Statements are actually a 57 page bound document consisting two major sections each containing a number of separate letters, reports and schedules. REPORT Paqes Table of Contents Financial Section Independent Auditors' Report Management's Discussion and Analysis Government-wide Financial Statements Fund Financial Statements Notes to Financial Statements Required Supplemental Information Single Audit and Other Compliance Schedule of Expenditures of Federal and Other Awards Notes to Schedule of Expenditure... Independent Auditor's Report on Compliance and Internal Control Over Financial Reporting... Independent Auditor's Report on Compliance with requirements of Major Program...OMB Circular A-133 Schedule of Findings and Questioned Costs Independent Auditor's Report on Appropriations Limit Worksheet i-ii 1-2 3-13 15-16 17-26 27-44 45-46 48-49 5O 51-52 53-54 55 56-57 Mana._qement's Discussion and Analysis (pages 3-13) This section is a narrative overview and analysis on the financial information as well as some discussion of future events and considerations prepared by City staff. Government-wide Financial Statements (pages 15-16) These two statements are required by GASB 34 and are designed to present a single- page overview of all City controlled operations. All activities of the City are identified as either Governmental Activities or Business-type Activities. Governmental Activities are provided for the general population and largely funded by taxes. Business-Type Activities charge fees to users and generate all or most of the money necessary to pay Audit Contract Extension page 2 of 5 April 6, 2005 their own expenses. Most significantly, these statements are presented on a full accrual basis, as is used in private industry, and include capital assets, long-term debt and other non-current transactions. On page 15, the "Statement of Net Assets" looks much like a normal balance sheet, with three sections: Assets, Liabilities, and Net Assets. The terminology uses Net Assets instead of Fund Balance to describe the net financial position of the City. On page 16, the "Statement of Activities", summarize the year's activity in a way that is believed to be more useful to the investment community and other Statement users. The top portion of the statement lists each governmental and business-type activity down the left side. For each activity expenses and then program revenues and finally the net change in net assets are displayed across the page. The lower portion lists general revenues by source and then summarizes the total effect of the year's activity on the City's financial position. The ending balances on this report will equal the ending balances on the Statement of Net Assets. Fund Financial Statements for Governmental Funds - (pages 17-19) These are the traditional fund reports, based on the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash while remaining silent on long-term asset and liabilities, On page 17, the "Balance Sheet" identifies assets liabilities and fund balances for the General Fund, Other Governmental Funds and Total columns. The report ends with a list of items not reported in the Governmental Funds to demonstrate how the Fund statements reconcile with the "Statement of Net Assets" on page 15. On page 18, the "Statement of Revenues, Expenditures and Changes in Fund Balances" lists Revenue, Expenditures and Other Financing Sources (Uses) and compares with the Income Statement prepared in previous years. On page 19, the third report in this section reconciles the Net Change in Fund Balances from the "Statement of Revenues, Expenditures and Changes in Fund Balances" to the Change in Net Assets for Governmental Activities on Page 16. Fund Financial Statements for Business-type Funds - (paqes 20-26) The activities of the Proprietary Funds (i.e. Business-type or Enterprise Funds) are identified in the reports on pages 20 through 24. The Fiduciary Funds are identified on pages 25 and 26. Notes to Financial Statements (pa.qes 27-42) In addition to the financial statements themselves, the "Notes to Financial Statements" Audit Contract Extension Page 3 of 5 April 6, 2005 provide important additional information about the financial condition of the City and the manner in which business is conducted. The Notes are reformatted from prior years to comply with the new reporting requirements: Note 1, Summary of Significant Accounting Policies, discusses other entities that are included in the financial statements and the City's policies regarding how various assets, liabilities, revenues and expenses are recorded in the financial statements. The sub-sections of this note are: A) Reporting Entity; B) Government-Wide and Fund Financial Statements; C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation; and, D) Assets, Liabilities, and Net Assets or Equity. Note 2, Reconciliation of Government-Wide and Fund Financial Statements, discusses the new presentation of Government-Wide and Fund Financial statements as the basic required financial reports. Note 3, Stewardship, Compliance and Accountability, discusses budgetary information, Funds with expenditures in excess of appropriations, and Funds with deficit Equities. Note 4, Detailed Notes on All Funds, provides information concerning: A) Deposits and Investments; B) Capital Assets; C) Interfund Receivables, Payables and Transfers; D) Capital Leases; E) Long-Term Debt; and, F) Segment Information. Note 5, Other Information, lists information related to: A) Risk Management; B) Related Organizations; C) Contingencies; D) Landfill Closure and Postclosure Costs; E) Service Contracts; F) Employee Retirement Systems; and G) Deferred Compensation. Required Supplemental Information (pages 45-46) Schedule I compares the General Fund Revenues and Expenditures to Budget. Schedule II provides information relative to the City of Ukiah's participation in the Public Employees' Retirement System. Schedule of Expenditures of Federal and Other Awards (pages 48-49) The Schedule of Expenditures of Federal Awards and Other Awards is presented in a standardized format required of all recipients of significant federal funding. This report identifies each grant award, receipts or revenue and disbursements or expenditures for each grant. Compliance and Internal Control (pages 51-54) The Compliance and Internal Control section is the area where the auditors report on compliance in accordance with government auditing standards, compliance with general federal requirements, and on internal control structure. Audit Contract Extension Page 4 of 5 April 6, 2005 Report on Appropriations Limit Worksheets (pages 56-57) In accordance with League of California Cities guidelines, the auditors performed a review of the appropriations limit work papers prepared by City staff. Based on the limited procedures performed, the auditors noted no exceptions. Recommended action Staff recommends receiving and filing the audited financial statements for the year ended June 30, 2005. Audit Contract Extension Page 5 of 5 April 6, 2005 CITY OF UKIAH FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS' REPORTS FOR THE YEAR ENDED JUNE 30, 2005 CITY OF UKIAH TABLE OF CONTENTS JUNE 30, 2005 Financial Section Exhibit Page Independent Auditors' Report Management's Discussion and Analysis Basic Financial Statements: 1-2 3-13 Govemment-wide Financial Statements: Statement of Net Assets One 15 Statement of Activities Two 16 Fund Financial Statements: Balance Sheet- Govemmental Funds Three 17 Statement of Revenues, Expenditures, and Changes In Fund Balances- Governmental Funds Four 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 19 Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses, and Changes In Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements Five Six Seven Eight Nine 20 - 21 22 23 - 24 25 26 27 -44 Required Supplemental Information: Schedule of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual- General Fund Schedule 45 CITY OF UKIAH TABLE OF CONTENTS JUNE 30, 2005 Schedule of Funding Progress - Public Employees' Retirement System Sinele Audit And Other Compliance Section Schedule of Expenditures of Federal and Other Awards Notes to the Schedule of Expenditure of Federal And Other Awards Independent Auditors' Report on Compliance and Intemal Control Over Financial Reporting Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors' Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Structure Over Compliance in Accordance With OMB Circular A-133 Schedule of Findings and Questioned Costs Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets Schedule III Paoe 46 48 - 49 50 51 - 52 53 - 54 55 56 - 57 FINANCIAL SECTION co. __Certified Public Accountants ' INDEPENDENT AUDITORS' REPORT Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L. Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, California 95482 We have audited the accompanying financial statements of the govemmental activities, the business-type activities, each major fund, and the aggregated remaining fund information of the City of Ukiah, California, as of and for the year ended June 30, 2005, which collectively compdse the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of City of Ukiah management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregated remaining fund information of the City of Ukiah as of June 30, 2005, and the respective change in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 28, 2005, on our consideration of the City of Ukiah's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. ! MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 The Management's Discussion and Analysis and other required supplementary information and pages 3 through 13 and 45 through 46, respectively, are not a required part of the basic financial statements but are supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consist principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City of Ukiah's basic financial statements. The accompanying schedule of expenditures of federal and other awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular ^-133, Audits of States, Local Governments, and Non-Proffi Organizations, is not a required part of the basic financial statements. The schedule of expenditures of federal and other awards has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. October 28, 2005 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Ukiah (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2005. Please read it in conjunction with the accompanying basic financial statements. This Analysis is organized into ten topics, moving from highlights of 2005, through descriptions of the financial statements and analysis of the selected information. The final topics discuss some of the City's financial processes and the upcoming budget outlook. Note: Unless otherwise indicated, all amounts are expressed in thousands of dollars. 1. FINANCIAL HIGHLIGHTS · The City's total net assets increased 4.53% to $70,742 from $67,675 a year ago. · Governmental net assets ended the year at $22,027 up 6.29% from $20,723 in the prior year. · Total tax revenue, other governmental revenues and business activity revenues exceeded expenses by $3,067. · General Fund expenditures and other financing sources and uses exceeded revenues by $357. · Total revenues from all sources were $37,272, up 1.01% from $36,894 in the prior year. · The total cost of all activities was $34,205 up 6.13% from the prior year at $32,230. 2. USING THIS ANNUAL REPORT This annual report consists of four parts - management's discussion and analysis (this portion), the basic financial statements, required supplemental information, and the single audit and other compliance information The basic financial statements include two kinds of statements that present different views of the City. (1) Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. These statements provide information about the activities of the City as a whole. (2) Fund financial statements describe how City services are financed in the short term as well as what resources are available for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. Each of these basic financial statements is further described below: Reporting the City as a Whole: The Statement of Net Assets and the Statement of Activities A frequently asked question regarding the City's financial health is whether the year's activities contributed positively to the overall financial well-being. The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are accounted for regardless of when cash is received or paid. These two statements report the City's net assets and changes thereto. Net assets, the difference between assets and liabilities, are one way to measure the City's financial health, or financial position. Over time, increases or decreases in net assets are an indicator of whether the financial health is improving or deteriorating. However, it is important to consider other non-financial factors such as changes La the City's property tax base or condition of the City's roads and other infrastructure assets to accurately assess the overall health of the City. The Statement of Net Assets and the Statement of Activities present information about the following: · Governmental activities - All of the City's basic services are considered to be governmental activities, including general government, community development, public safety, public works, and community services. Property taxes, sales taxes, Vehicle License Fees (VLF), ambulance fees, transient occupancy taxes and franchise fees finance most of these activities. · Business (proprietary fund) type activities - The City charges a fee to customers to cover all or most of the cost of the services provided. The City's utility services are reported La this category. · Component units - The City's governmental activities include the blending of one separate legal entity; The City of Ukiah Redevelopment Agency. Although legally separate, this "component unif' is important because the City is financially accountable for it. Reporting the City's Most Significant Funds: Fund Financial Statements The fund financial statements provide detailed information about the most significant funds--not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, management establishes many other funds that aid in the administration of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City's two kinds of funds, governmental and proprietary, use different accounting approaches as explained below. · Governmental.funds - Most of the City's basic services are reported in governmental funds. Governmental funds focus on how resources flow in and out with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent La the near future to finance the City's programs. Governmental funds include normal governmental activities including police, fire, public works, parks, recreation and administration. Specified governmental funds included in the totals account for major activities like street construction and redevelopment projects managed by the government We describe the relationship (or differences) between governmental activities (reported La the Statement of Net Assets and the Statement of Activities) and governmental funds through reconciling schedules. The bottom of the Balance Sheet on page 17 explain.~ the changes from accrual based net assets to financial-asset based fund balances (with additional detail in Note 2 La the Notes To The Financial Statements). Page 19 explains the differences in the change La fund balance from em'rent year activity between accrual based and financial-asset based reporting. · Business Type (Proprietary.)funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Propr/etary funds are reported La the same way that all activities are reported in the Statement of Net Assets and the Statement of Activities. 3. FINANCIAL ANALYSIS OF GOVERNMENT WIDE STATEMENTS The Sununary of Net Assets (Table 1) and Changes in Net Assets (Table 2) present the City's governmental and business activities in total for the years ending June 30, 2005 and 2004. Table 1 Summary of Net Assets For the Fiscal Years Ended June 30, 2005 and 2004 (Full Accrual, in Thousands) Governmental Business-type Activities Activities Total 2005 2004 2005 2004 2005 2004 AsseU: Curr~tando~as~ $22,567 $21,668 $37,112 $44,482 $59,679 $66,150 Ca~i~assets 8,778 8,805 45,505 37,147 54,283 45,952 Total a~eta 31,345 30,473 82,617 81,629 113,962 112,102 Liabilities: Long-term debt outstanding 5,670 5,971 30,688 31,865 36,358 37,836 Other liabilities 3,648 3,780 3,214 2,812 6,862 6,592 Total liabilities 9,318 9,751 33,902 34,677 43,220 44,428 Net assets: Invested in capital assets net of debt Restricted Unrestricted 2,912 2,647 19,242 13,320 22,154 15,967 5,032 3,954 1,130 1,176 6,181 5,130 14,083 14,122 28,343 32,456 42,407 46,578 Total net assets $22,027 $20,723 $48,71~5 $46,95~2 $70,742 $67,675 The City's combined net assets for the fiscal year ended June 30, 2005 were $70,742. The City accounts for its Utilities, including electric, water and sewer as enterprise funds. The airport, parking district, solid waste disposal site, golf course, conference center and street lighting system are also accounted for as enterprise funds. These enterprise funds are categorized as Business Activities on Table 1. The City's net assets for governmental activities increased 6.28% from $20,723 to $22,027, while business-type activities net assets increased 3.75%, from $46,952 to $48,715. Legally unrestricted governmental net assets included $3,245 in special revenue funds received for specific purposes, $3,719 accumulated in reserves for capital projects, $1,642 in redevelopment capital and $2,555 reserved in redevelopment for outside agencies. Two transfers are included in the City-wide Statement of Activities. $675 is transf~ annually to the General Fund from the Electric Utility, in lieu of taxes that would be charged to an outside provider. Beginning with the FY2005-06 this amount will be allowed to follow electric revenues at 6%. Second, a $103 transfer was made from the General Fund to the Conference Center to correct an operating deficit for the current year. Table 2 Statement of Change in Net Assets For the Fiscal Years Ended June 30, 2005 and 2004 (Full Accrual, in Thousands) Governmental Business-type Activities Activities 2005 2004 2005 2004 2005 2004 $3,788 $20,970 $20,981 1,961 20 21 140 39 129 8,804 719 317 869 34 15,374 15~729 21 ~898 21,165 Revenues: Program revenues: Charges for services $2,755 contn'butions 1,670 eonm~outions 250 Other 68 Taxes 8,883 From other agencies not restrioted to specific programs 1,155 Uae of money and pmpmy 593 Total revenues 2,103 6,434 1,580 2,510 1,543 472 1,985 5,807 1,446 2,398 1,494 493 12,277 2,302 2,433 514 136 815 170 588 328 11,119 1,943 2,433 1,217 130 705 158 606 295 Expenses: General government Public works Development Community Services (Parks & Rec.) Interest on long-term debt Electric Water Sewer Solid Waste Disposal Site (closed) Street Li~ting Parking District Golf Course Confe~-nce Center 14,642 732 572 20~723 $22~027 13~623 2,106 646 2,752 17~971 $20r723 19~563 2,335 (572) 1,763 46~952 $48r715 18,606 2,559 (646) 1,913 45,039 $46r952 Total expenses Increase N.A. before Transfers Transfers Increase In Net Assets Beginning Net Assets Ending Net Assets $23,725 1,690 289 68 8,883 $24,769 1,982 269 8,804 1,155 1,462 37~272 719 351 36~894 2,103 6,434 1,580 2,510 1,543 472 12,277 2,302 2,433 514 136 815 170 588 328 34,:205 3,067 3,067 67~675 $70r742 1,985 5,807 1,446 2,398 1,494 493 11,119 1,943 2,433 1,217 130 705 158 606 295 32,229 4,665 4,665 63,010 $67~675 Governmental Activities Table 3 presents the cost of each of the City's major governmental program.~ for FY04-05 and FY03-04. Table 3 Cost of Governmental Activities For the Fiscal Years Ended June 30, 2005 and 2004 (Full Accrual, in Thousands) Total Cost to Provide Services 2005 2004 Cost Percent Chan~e Change General Government $2,103 $1,985 $118 106% Public Safety 6,434 5,807 627 111% Public Works 1,580 1,446 134 109% Parks & Recreation 1,543 1,494 49 103% Community Development 2,510 2,398 112 105% Debt service interest 472 493 (21) 96% $14,642 $13,623 $1,019 107% On a full accrual basis, including financing and capital costs as reported under GASB 34, the City's total governmental costs rose 7%, with the largest dollar increases in Public Safety. Governmental expenses reflect a wide variety of projects and on-going activities, many of which are supported in part by program fees or other funding sources. A second year of percentage increases in PERS retirement benefits costs had a drastic impact on total 2005 costs. We understand that after the last two years of major increases the program should be more stable going forward. General government services include the City Manager's office as well as the finance, clerical, legal, personnel areas that support public safety and all the other city services. Training, travel and technology purchases were closely managed and restricted. Since cutting expenses by $109 last year, current expenses are up only $9 over two years. Public Safety is the largest component of general government, mostly in direct wages paid to safety personnel and capital fire & emergency equipment. In police salaries and overtime each increased $50, while PERS grew by $200. Fire was similar with, lower PERS increases but higher capital equipment costs. Parks and Recreation activities include a wide range of services to the public. Principal activities include maintaining aH City parks and other landscaped areas, managing a modem museum, providing a year round calendar of youth and adult recreation programs and operating a public swimming pool. The recreation programs are primarily self-funded through user fees and cooperative use agreements with the school systems and others. The PERS retirement costs have greatly impacted the cost of park maintenance and other labor intensive activities. Community development includes a $1,000 payment of accumulated revenues to the Ulciah Unified School District and the utilization of previously approved CDBG community projects, including the Cultural and Recreation Center currently under construction. Business Type Activities The City's net assets for business-type activities in continuing operations generated a $1,907 increase in net assets or 9% of total revenues (before transfer of $675 to the general fund), compared with a $3,607 increase, or 17% In 2004. The Solid Waste Disposal Site has been permanently closed and its current position is presented separately so as to not distort the continuing results presented on Table 4. Table 4 Statement of Operating Income and Expenses - Business Type Funds For the Fiscal Years Ended June 30, 2005 and 2004 (Full Accrual, in Thousands) Operating Operating Increase (decrease) Expenses Revenue From Operations 2005 2004 2005 2004 2005 2004 Electric Water Sewer Street Lights Parking Golf Course Conference Center $12,277 $11,119 $14,568 $14,353 $2,291 16% $3,234 23% 2,302 1,943 1,916 2,035 (386) (20)% 92 4% 2,433 2,433 2,595 2,552 162 6% 119 5% 136 130 182 181 46 25% 51 28% 815 705 814 875 (1) 0% 170 19% 170 158 126 161 (44) (35)% 3 2% 588 606 540 621 (48) (9)% 15 2% 328 295 215 218 (113) (53)% (77) (35)% Total $19,049 $17,38~9 $20,95~6 $20,996 $1,907 9% $3,60~7 17% Closed Pro~ram Solid Waste Disposal Site $514 $1,217 $73 $135 $(441) $(1,082) Electricity purchase costs increased from $7,070 last year to $8,008 in FY04-05, while rates charged by the utility were held constant. The Western Area Power Agency ("WAPA") contract ended in January 2005, forcing the Utility to purchase power under less favorable conditions on the open market. Annual billed water usage was down 6% from the prior year due to a mild summer season, while expenses increased in preparation for a major capital project to increase system peak storage and delivery capacity. Parking fines were down $35 from the prior year, while PERS costs alone increased $8. Management has taken action to increase parking enforcement operations. .. The Conference Center continues to produce disappointing results. Management will continue its effort to improve marketing, restructure operations and reduce operating costs. The Solid Waste Disposal Site was permanently closed in 2001 and federal regulatiom requ/re the site to be monitored for 30 years with funds set aside for post-closure expenses and contingencies. 4. FINANCIAL ANALYSIS OF THE FUND STATEMENTS Governmental Funds Growth in governmental revenue, on a fund basis from year to year, revenue was very modest. Overall from 2004 to 2005, governmental fund revenues grew at 0.54%, $74, (after excluding the one-time $664 revenue from the sale in 2004 of the North Fire Station) providing little new revenue. Table 5 summarizes the major revenue classifications used for taxes and other governmental revenues: Table 5 Revenue Summary: Governmental Funds For the Fiscal Years Ended June 30, 2005 and 2004 (Modified Accrual Basis, Stated in Thousands) General Other Total Fund Governmental Funds Governmental Funds 2005 2004 2005 2004 2005 2004 Revenues: Taxes $5,914 $5,572 $2,969 $3,232 $8,883 $8,804 Licenses and permits 168 156 168 156 Fines, forfeitures & penalties 58 64 30 98 88 162 From other Agencies 1,180 791 1,685 2,029 2,885 2,820 Use of money & property 806 717 595 472 1,401 1,189 Charges for curr~t services 725 716 725 716 Other 33 36 42 910 75 946 Total revenutn $81884 ~ $5,321 $61741 $14~205 $141793 The State of California has reduced property tax distributions for City General and Redevelopmem Funds, instead transferring the funds into the State Educational Revenue Augmentation Fund CERAF") for other uses. $189 and $327 were lost to the City in 2005. The same transfers will be made one more time in 2006, after which they are expected to end. Before the transfers, net taxes (including sales, property, occupancy, business licenses and franchise fees) grew at 6.76%. The transfers reduced the net growth to 0.9%. Fines forfeitures and penalties decreased primarily due to a $70 decrease in asset seizure revenues transferred to the City from the County of Mendocino Sheriff's Office. General Fund Revenue from Other Agencies includes primarily State of California payments for motor Vehicle License Fees (MVLF), which has changed from a monthly reimbursement from the state to a semi-annual shift of property taxes. The State intends this shift to be revenue neutral, but City revenue is up compared to the prior year because a shortfall last year was recovered in the ctmxmt year. Other Agency Revenue includes many government grants which vary dramatically from year to year. FY03-04 totaled $2,029, dropping to $1,685 this year. This $344 swing included STIP Augmentation of $140 in last year, zero this year CDBG funding of $304 last year, $803 this year, for the continuing Recreation Center construction. Community Development housing funds decreased from $698 to $135. Other revenue in the prior year included the one time gain from the sale of the North Fire Station for $664. 5. GENERAL FUND BUDGETARY HIGHLIGHTS Actual General Fund revenues are $256 over budget, a positive variance of 2.97%. All revenue categories were higher than budget except interest earnings and charges for current services which both ended 1% below budget. Total taxes were 2.89% above budget, with property taxes up 11% and sales taxes at budget. Total General Fund services finished the year under budget with a total cost savings of 4.39% or $440. Some savings was the result of continued downward pressure on spending plans. $94 in unspent capital outlays is expected to carry forward to FY05-06. Before accounting for transfer activity there was a net a positive variance of $10 or 0.1% of total expenses. In addition to budgeted transfers, an unbudgeted repayment of MVLF revenue of $243 was transfen~ to the Special Projects Reserve Fund. The final decrease in Fund Balance was $277, or 6.99%. 6. CASH .MANAGEMENT The City contracts with Public Financial Management, Inc. (PFM), a specialist in municipal cash management, to direct its investments and maintains flexibility by utilizing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Cash is invested in certain eligible securities as constrained by law and further limited by the City's investment policy. The goals of the City's investment policy arc safety, liquidity and yield. The City Council has appointed an Investment Oversight Committee, chaired by the elected City Treasurer, to direct and monitor the activities of PFM. 7. CAPITAL ASSETS The capital assets of the City are those assets that are used in performance of City functions including infrastructure assets. Capital Assets include equipment, buildings, land, park facilities, and roads. At June 30, 2005, the City had not completed its inventory of infrastructure assets. GASB 34 allows the City an additional year in which to have an accounting of its infrastructure. We plan to use a private asset valuation firm to inventory the City's infrastructure. At June 30, 2005, net capital assets of the governmental activities totaled $8,778 and the net capital assets of the business-type activities totaled $45,505. Business-type assets grew from $37,147 last year primarily to major multi- year construction projects underway in the water and sewer utilities. Depreciation on capital assets is reco~onized in the Government-Wide financial statements but not in the General Fund statements. The City attempts to minimize debt by reserving current revenue for capital projects. A current expense is recorded and transferred to specific project accounts in either the Equipment Replacement or Special Projects Reserve Funds. A given project may require transfers for several years to accumulate sufficient funding before going forward. In 2005 receipts fi.om the sale of bonds to finance a debt owed by the State of California to cities for its failure to pay Vehicle License Fee ("MVLF") on a timely basis were transferred to the Special Projects Reserve Fund's miscellaneous project account. During 2005 projects funded fi'om the reserves include Corporation Yard and Leslie Street gas plant mitigation projects, annexation and traffic circulation studies, parking lot improvements, sidewalk repairs and ADA ramp work. 8. CURRENT LIABILITIES AND LONG-TERM DEBT At year-end current governmental debt is $3,648 and business-type is $3,214. The City had total governmental liabilities totaling $9,318 and business-type liabilities of $33,902. Included in these totals are $5,670 of Redevelopment Agency long-term debt and $30,688 of business-type debt including the Lake Mendocino Hydro power plant bonds and other utility upgrades. The City has a total debt to net assets ratio of 61%, down fi.om 66% in 2004. As the table demonstrates, the City's current asset to liabilities position is very strong. 10 Assets Available for Debt Service $140,000 - $120,000 $100,000 $80,000 $60,000 $40 000 $20,000 $0 -$20,000 I I -$40,000 -$60,000 Govemmental Proprietary Total Assets la Long-term Debt · Current Liabilities 13 Capital Assets El Currant Assets 9. NEXT YEAR'S BUDGET AND ECONOMIC FACTORS The City Manager's Budget Message introducing the City's 2006 budget resolution provided a concise overview of the economic and budget issues facing the City over the next few years. This extract covers key points: The FY04-05 General Fund deficit was originally projected at $1,200. However small increases in revenue and major reductions in non-public safety expenditures were made to decrease the actual deficit to $685. Positions were frozen and operational budgets were further reduced to extremely low levels. In an attempt to stabilize the City budget, and control local government revenues that could not be touched by the State, the City Council approved a half-cent sales tax measure with a ten year sunset for the June 2005 election. The measure was passed with an overwhelming 69% of the community providing support for the measure. In the 05-06 Fiscal Year, this will add a projected $1,560 to the City's General Fund revenue. The Council had previously expressed their intention to make Public Safety a priority and therefore the first use of the half cent sales tax funds are allocated towards the filling of the previously frozen public safety positions, an additional four police officers and financing a ten year equipment replacement program for the Fire Department. This was the first time in twenty years that the City will be able to increase the Police Patrol staffing levels, even though call volumes have tripled. Approximately $798 out of the $1,560 is being used for these purposes. These allocations along with the zeroing out of the projected $625 FY 05-06 deficit has left an overall net positive $212 balance remaining between all General Fund revenue sources and expenditures. 11 GOVERNMENTAL FUNDS Based on the analysis of our sales tax consultants, the budget contains, fi.om the current one-cent allocation, a projected sales tax/ncrease of $121 over last year's projected actual sales tax amount. The budget reflects use of a portion of this increase to rehire the two non-public safety positions that were previously frozen, a Street Maintenance Worker and Parks Lead-worker. These positions were frozen to reduce the budget deficit but have caused a great strain on the departments to complete projects due to the lack of staffing. A secretarial and the Assistant City Manager positions frozen last fiscal year are not included as funded in this Budget proposal. Parks and General Government Buildings: The Council has approved three applications for the competitive portion of the Park Bond funding program. Each application is for $500 that would be applied towards the Anton Stadium and pool complex rehabilitation projects and the construction of a skateboard park. State representatives have indicated that the chances of the City being awarded at least two of these applications are very high. The City is also working with the County for partial allocation of County Park Bond money to fund a park improvement project within the City limits as over 50% of the users of our park system are county residents. Park Development Fund: This fund includes expenditures for the completion of Observatory and Orchard parks, replacement of playground equipment, and the softball complex rehabilitation program. The fund balance does not cover accumulated expenses for an overage of $118. The Council approved the additional funds from the General fund reserve as several of these projects were started over ten years ago and with this allocation we will be able to complete the new parks and rehabilitate the sol[ball complex. Many new sports programs have added to the complex schedule that provides for use throughout the summer season. ENTERPRISE FUNDS: Electric Utility: The Electric Utility expenditures are projected to increase by $3,600 this year. $1,400 of this increase is for the retrofitting and start-up of the hydro plant. Another $1,000 is in anticipation of the increased cost for purchase power not only with the loss of the Western Area Power Authority contract but to reflect the rise in prices for market purchase power. The City Council approved Staff's recommendation that these additional costs, which exceed the projected revenue, be funded through the Rate Stabilization Fund. One of the major reasons that this fund was put in place over eight years ago was to cover the cost of unanticipated expenditures and increased power costs until a portion of the Northern California Power Authority bonds would reach term and reduce the department's expenditures. In addition, the Utility Director has included purchases and training in the various electric utility budgets to bring the department up to current performance and training standards. Sewer Operations: We are anticipating a rate increase this year from a bond issuance to cover the expenses associated with the Wastewater Treatment Plant capacity upgrade and rehabilitation project. However, since the construction bid selection and bond issuance have not occurred, the associated revenue and expense are not being shown in this budget, except for the cost of design. The Council plans to include revenue to assist in covering the cost of the "I and F' repair over the next several years to reduce the influx of water during the winter into the sewer system. The Council has also expressed support in funding continued capital projects at the Treatment Plant. Airport: The Airport Enterprise Fund continues to be in a healthy position. The department is continuing its efforts towards building up the reserve for capital projects and emergency needs which is appropriate for this size of airport. The anticipated increases in gas and fuel prices are reflected in the expenditure budget however the revenue projections show a corresponding increase to offset those additional costs. The Airport has also been approved for over $700 in FAA infrastructure grant funds to construct improvements at the airport and also for rewriting the airport layout plan. Golf Course: The Golf course continues to struggle due to the past configuration of the fee structure. The trend in the last several years has been such that there has been an operational deficit that could no longer be supported by the reserves as they are quickly dwindling to an unacceptable level. The last fee structure, based on an annual CPI increase model did not cover the costs associated with the Golf Course and therefore the need for a new structure was needed. The Council has approved a new rate plan with the input of the Men's and Women's Golf Club members to restructure the fees. This should provide an adequate funding source for the Golf Course for the next several years that will not only cover the expense of operations but also fund capital improvements and build up the reserve. 12 Ukiah Valley Conference Center: A significant change in the budget for the Conference Center this year is the elimination of the Conference Center Manager. The City Council approved the addition of a part-time Event Coordinator Assistant and a part-time Maintenance position to cover the maintenance responsibilities. Any other duties will be taken on by the current Event Coordinator and other Community Services staff. This has saved approximately $40 in salaries for the 2005-06 Fiscal Year budget for the Conference Center. REDEVELOPMENT AGENCY: Over the last three years, the Redevelopment Agency has cut costs with the elimination of two positions---the Assistant City Manager and the Deputy Redevelopment Director. The Assistant City Manager was the designated Business Liaison for the City and provided individual assistance and support for the business community. Since the position was eliminated due to budget cuts, there has been very little staff time for such direct contact on a regular basis. Council has expressed strong support for enhanced economic development activity both for retention of our current businesses and to assist interested parties in receiving information about the valley and has approved funding a new position that would handle both economic development needs as well as administrative special projects. Haft of the funding for two years would come fi.om a grant the City has received and the other half fi.om the Redevelopment Agency. The Agency is required to reserve 20% of the Redevelopment revenue for the Housing allocation. Two years ago, the Council requested that Housing Fund money be reserved to provide funding for a large capital project rather then portioning out the fund balance to many small projects or programs. The projected fund balance for the RDA's portion of the Housing money at the end of FY 2005/06 is $631. Additionally, the Redevelopment budget is slowly accumulating funds for projects within the Redevelopment area. Council will be reviewing the Master Plan document to determine what projects are appropriate for funding. Possible new projects for discussion include development of the NCRA depot property, a Master Plan for the downtown corridor, rehabilitation of State and Main Streets, and parking lot improvements. SUMMARY There are many positive reasons to look forward to a better environment for the City and its citizens in the coming year. The City did not have to cut its Public Safety departments thanks to the support of our commRnity. The commuRity'S support of the sales tax measure provides a tremendous boost to improving the police and fire departments staffing and equipment levels. FY 06/07 will include a full year of the additional sales tax for a projected $2,000 of revenue. The citizens of California passed a State Constitutional amendment that will limit the amount of revenue that the State can take from local governments after the 2005-06 fiscal year. The economy is predicted to begin a recovery that should improve job opportunities and business health. The Redevelopment Agency is finally accumulating sufficient funds to consider projects once again and to analyze the possibility of another bond issuance. All of these factors will assist in providing a level of service that we can be proud of providing to our commtmity. 10. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Director, Mr. Mike McCann (707) 463-6267, Finance Department, City of Ukiah, 300 Seminary Ave, Uldah, California 95482 or online: at http://www.cityofukiah.com. 13 BASIC FINANCIAL STATEMENTS CITY OF UKIAH BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2005 ASSETS Cash and investments Cash with fiscal agent Receivables: Accounts (net) Interest Property taxes Grants Loans Employee loans Due from other funds Advances due from other funds Prepaid expenses Unexpended loan proceeds General Othtr Governmental Fund. Exhibit Three Total A~seta Total Governmental Funda LIABILITIES AND FUND BALANCES Uabilities: Accounts payable Accrued salaries and benefits Accrued compensated absences Contract retentions payable Deterred revenues Advances due to other funds $3,439,116 $14,057,367 $17,496,483 615,714 615,714 420,018 292,561 712,579 421,352 1,057 422,409 122,758 243,664 366,422 93,285 93,285 2,093,473 2,093,473 1,954 1,954 342,651 342,651 8,959 8,959 46,951 48,951 Total Liabilities $4~757~214 $17~.~_~072 Fund Balances: Reserved for: Encumbrances Petty cash Long-term receivable Low/Moderate housing - outside agencies Park development Capital outlay- outside agencies Debt service Unreserved, reported tn: General fund Special revenue funds Debt service funds Capital projects funds $22~201 ~286 $323,931 $85,592 $409,523 273,720 12,710 286,430 467,473 20,537 488,010 8,652 8,652 2,092,973 2,092,973 73,181 1,468,798 1,541,979 1 ~138~305 3~689~262 4~827,567 618,489 900,997 8,000 6,485,353 860,997 239,748 1,800 342,651 3,034,712 3,244,967 10,680 1,645,347 858,215 1,800 342,651 900,997 8,000 6,465,353 860,997 3,034,712 3,244,967 10,680 1,645,347 Total Fund Balances 3,618,909 13,754,810 17,373,719 $4~757~214 $17~444~072 Total Llabillttea And Fund Balances Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in govemmental activitias are not financial resources and, themE)m, are not reported in the funds Internal service funds are used by management to charge the costs of garage, stores, billing, workers' compensation, public safety dispatch and liability insurance to Individual funds. The assets and liabilities of the internal service funds are included in the govemmentel activities in the statement of net assets. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds Nat Aseete Of Govemment~l A~Jvtt.~a The notes to financial statements are an integral part of this statement. 17 8,529,831 2,019,397 (5,895,789) $22W027f158 Exhibit Four CITY OF UKIAH STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2005 REVENUES General Other Total Govemmsntal Govemmental Funds Funds Taxes Licenses and permits Fines, forfeitures, and penalties From other agencies Use of money and property Charges for current services Other $5,913,866 $2,969,534 $8,883,400 167,521 167.521 57,722 27,912 85,634 1,180,016 1,684,624 2,864.640 806,377 595,046 1,401.423 725,125 725,125 32.896 41,981 74,877 Total Revenues 8,883,523 5,319~097 14,202~620 EXPENDITURES Current: General government Public safety Street and roads Parks and recreation Community development Debt service: Principal Interest Capital outlay 1,297,228 95,986 1,393,214 5,776,896 139,096 5,915,992 981,799 395,149 1.376,948 1,353,206 63,817 1,417,023 9,717 2,403,565 2,413,282 340,625 340.625 1,341 471,253 472.594 130,387 261,060 391,447 Total Expenditures 9,550,574 4,170,551 13,721,125 Excess (Deficiency) of Revenues Over Expenditures (667,051 ) 1 ~ 148,546 481 ~495 OTHER FINANCING SOURCES (USESI Transfers in Transfers out 675,000 935,438 1,610,438 (346,083) (691,999) (1,038,082) Total Other Financing Sources (Uses) 328,917 243,439 572,356 Net Change In Fund Balances (338,134) 1,391,985 1,053,851 Fund Balances, July 1, 3,957,043 12,362,825 16,319,868 Fund Balances, June 30, $3~618~90~9 $13~754~810, $17~373~719 The notes to financial statements are an integral part of this statement. 18 CITY OF UKIAH RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2005 Amounts reported for govemmental activities in the statement of activities (page 18) are different because: Net change in fund balances - total governmental funds Govemmental funds report capital outlay as expenditures. However in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current pedod Capital outlay Depreciation The issuance of long-term debt provided current financial resources to the governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effects of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items Principal Repayments/Adjustments: Ukiah Redevelopment Agency loan payments Long-term advances from other funds Extraordinary item - adjustment to long-term debt Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as an expenditures in govemmental funds Accrued interest on long-term debt Intemal service funds are used by management to charge the costs of garage, stores, billing, workers' compensation, public safety dispatch and liability insurance to individual funds. The net expenditures of certain activities of the intemal service funds are reported with governmental activities $1,053,851 391,447 (393,819) 223,935 116,690 67,866 775 (156,212) Change In Net Assets Of Governmental Activities $1r~Z4r~3 The notes to financial statements are an integral part of ~is statement. 19 'i W I-, Z W J oo '1 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 1) Summary of Sianiflcant Accountina Policies A) Reporting Entity The City of Ukiah was incorporated March 8, 1876 under the applicable laws and regulations of the State of Califomia. The City operates under a Council-City Manager form of govemment and provides a variety of services including police, lira lighting and medical emergency, sewage treatment, water treatment, electric power, street lighting and maintenance, parks and recreation, municipal golf course, conference center, and redevelopment activities. The accompanying linancial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations. The City has no component units that require discrete presentation. Blended Component Units. The Ukiah Redevelopment Agency was established in 1975 under the provisions of Community Redevelopment Law §33000 of California Health and Safety Code. The Agency is governed by a Commission comprised of the members of the Ukiah City Council. The Agency's boundaries are within Ukleh's city limits and activities of the Agency benefit the citizens of Ukiah. The activities of the Agency are reported in the City's special revenue, debt service and capital projects funds. Complete financial statements of the Agency can be obtained directly from the City of Ukiah, Civic Center, 300 Seminary Avenue, Ukiah, CA 95482. The Parking District #1 is a special district, primarily located in Ukiah's downtown area, is administered and accounted for by the City. The Parking Commission is appointed by the Ukiah City Council and acts as an advisory board to the Council in District matters. The District is reported as an enterprise fund. The District does not to prepare separate financial statements. B) Govemment-Wide And Fund Financial Statements The govemment-wide financial statements (i.e. the statement of net assets and the statement of changes in net assets) report information of all the nonliduciary activities of the City and its component units. For the most part, the effect of Interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type acUvities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benelit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate linancial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter ara excluded from the government-wide linancial statements. Major individual govemmental funds and major individual enterprise funds are reported as separate columns in the fund linancial statements. C) Measurement Focus, Basis Of Accounting, And Financial Statement Presentation The government-wide linancial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and liduciary fund financial statements. Revenues are recognized when eamed and expenses are recorded when the liability is incurred, regardless of the timing of related cash liows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Govemmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter pay liabilities of the currant period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the currant fiscal period. 27 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major govemmental fund: The general fund is the City's primary operating fund. It accounts for all financial resources of the general govemment except those required to be accounted for in another fund. The City reports the following major proprietary funds: The electric fund accounts for the activities of the City's electric generation and distribution operations. The water fund accounts for the activities of the City's water treatment and distribution operations. The sewer fund accounts for the activities of the City's sewage collection and treatment operations. The disposal fund accounts for the activities of the City's solid waste landfill operations. Additionally, the City reports the following fund types: Internal service funds account for garage (vehicle maintenance), stores (purchasing), public safety dispatch, utility billing, workers' compensation and liability insurance services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. The private-purpose trust fund is used to account for resources legally held in trust for use by other organizations and departments. All resources of the fund, including any earnings on the invested resources, may be used to support the organization's or department's activities. There is no requirement that any portion of these resources be preserved as capital. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the govemment-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB). Govemments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's proprietary fund functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1 ) charges to customers or applicants for goods, services, or privileges provided 2) operating grants and contributions, and 3) capital grants and contributions. Intemally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Principal operating revenues of the City's electric, water, sewer, golf and street lighting funds and the City's intemal service funds are charges to customers for sales and services. Principal operating revenues of the City's airport, disposal and conference center funds includes charges to customers for sales and services and rental fees. The parking district fund's principal operating revenues include the sale of parking permits to customers and parking fines. The City also recognizes as operating revenue tap fees intended to recover the cost of connecting new customer to the City's utilities. Operating expenses for the enterprise funds and internal service funds include cost of power purchases, fuels and lubricants, operations, maintenance, utilities, insurance premiums and deductibles, general and administration, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperafing revenues and expenses. 28 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as needed. D) Assets, Liabilities, And Net Assets Or Equity 1) Cash And Invesl;ment~ Investments for the City and its component units are reported at fair value. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. 2) Receivables And Peyables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to either 'due to/from other funds" (i.e. the currant portion of Interfund loans) or 'advances to/Trom other funds" (i.e. the non-current portion of Interfund loans). All other outstanding balances between funds are reported as 'due to/from other funds." Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as 'internal balances." An estimated receivable of $768,651 has been reported within the City's enterprise funds for services provided but not yet billed as of June 30, 2005. The receivable, and increase to related revenue accounts, was arrived at by taking the cycle billings the City sent the customers in July and prorating for the number of days applicable to the fiscal year ended June 30, 2005. All bade and property tax receivables are shown net of an allowance for uncollectible accounts. Allowances for uncollectible receivables totaled $775,191, including $361,546 for emergency response billings and booking fees, and were determined based on an analysis of historical trends. ~roperty taxes for the current year were attached as an enforceable lien as of January 1, 2004 and were levied on July 1, 2004. Taxes are due in two equal installments on November 1 and February 1. The City relies on the competency of the County of Mendocino Assessor's office to propedy assess, collect and distribute property taxes. 3) Inventories And Preoaid Items Inventories are valued at the lower of cost (first-in, first-out) or market. An annual charge is made to various City funds to assist in the financing of warehouse operations in addition to being billed as inventory is issued. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both govamment-wide and fund financial statements. 4) Restricted Assets Certain proceeds of the City's electric fund revenue bonds (as well as certain resources set aside for their repayment) and resources set aside for repayment of the golf fund capital leases are classified as restricted assets on the balance sheet because their use is limited by applicable bond or other covenants. Contract Retentions Held In Escrow - Under the terms of an agreement the City entered into for the construction of improvements to its water treatment plant, the City made deposits to an outside escrow account in amounts equivalent to the contract retention payments that would normally be withheld during the construction period. Amounts held in escrow are intended to be released to the City's construction conbactor once the project has been accepted as complete by the City. The $417,030 balance of the escrow account has been reported as a restricted asset of the City at June 30, 2005. 5) Caoital Assets Capital assets, which include property, plant, and equipment, are reported in the applicable govemmental or business-type activities column in the govemmental-wide financial statements. Capital assets are defined 29 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two years. Capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. As of the balance sheet date, information was not available conceming the cost of infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and, therefore, pre-existing infrastructure assets are not included in the accompanying financial statements. As permitted by GASB Statement No. 34 (GASB-34), the City will begin reporting pre-existing infrastructure assets as data is accumulated during the transition period provided by GASB-34. However, as required by GASB-34 the City has begun prospective reporting of infrastructure assets acquired or constructed during the current fiscal period. During the current fiscal period, infrastructure projects that were incomplete are reported as "construction in progress." Interest is capitalized on construction of major assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest eamed on invested proceeds over the same period. No interest was capitalized during the year ended June 30, 2005. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Property, plant and equipment of the City are depreciated using the straight-line method using the following useful lives: Land improvements Buildings and improvements Infrastructure Licensed vehicles Machinery and equipment Y~ars 20 - 40 years 30 - 60 years 30 - 60 years 5 - 10 years 5 - 20 years 6) Comoensated Absenc,,es It is the City's policy to allow an employee to accumulate no more than two years vacation. Full time City employees are entitled to sick leave with full pay due to absence resulting from illness or injury to the extent of the amount eamed. There is no liability for unpaid sick leave since the govemment does not have a policy to pay any amount when employees separate from service with the City. All vacation pay is accrued when incurred in the government-wide and fund financial statements. 7) Lona-Term Obliaat, ion$ In the govemment-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of assets. Bond discounts, as wall as issue costs, are defarmd and amortized over the life of the bonds using the straight-line method, which is not materially different from the effective interest method. Bonds payable, and capital lease obligations, are reported net of the unamortized discount. Debt issue costs are reported as deferred charges and amortized over the term of the related debt. 8) Fund Eauitv In the fund financial statements, govemmental funds report reservations of fund balance for amounts that are not available for appropriation or legally restricted by outside parties for use for a specific purpose. Designated fund balances represent tentative management plans for future use of financial resources and are subject to change. 3O CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 2) Reconciliation Of Govemment-Wlde And Fund Financial Ststefll~n*.~ A) Explanation Of Certain Differences Between The Govemmentsl Fund Balance Sheet And The Government-Wide Statement Of Net Assets The govemmental fund balance sheet includes a reconciliation between fund balance-total governmental funds and net assets-governmental activities as reported in the govemment-wide statement of net assets. One element of that reconciliation explains, 'Long-term liabilities, including bonds payable, are not due and payable in the currant period and therefore are not reported in the funds.' The details of this $6,188,365 difference are as follows: Loans Payable: Uklah Redevelopment Agency REDIP loan payable Ukiah Redevelopment Agency REMIF loan payable Ukiah Redevelopment Agency REMIF loan payable - accrued Interest Net Adjuslment To Reduce Fund Balance-Total Governmental Funds To Arrive At Net Assets-Governmental Activities 3) Stewardship. ComDIiance And Accountability ($230,941) (5,635,000) (29,848) ($5,89517891 A) Budgetsry Inform~rdon Annual budgets are adopted on a basis consistent with generally accepted accounting principals for all govemmental funds except the special revenue National Science Foundation, Asset Seizure (DnJg/Alcohol), H&S Education, Federal Assets Seizure, Storm Drain and Community Development Block Grant Revolving Loan funds, which did not have budgets in the current fiscal period. Annually, each City department submits a request for appropriation to the City Manager so that a budget may be prepared. The budget is prepared by fund, function and activity, and includes information on the past year, currant year estimates and requested appropriations for the next risc. al year. Before June 30, the proposed budget is presented to the City Council for review. The City Council holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available by the City Manager or the revenue estimates must be changed by an affirmative vote of a majority of the City Council. Expenditures may not legally exceed budgeted appropriations at the activity level. During the year, several supplementary appropriations totaling $9,221,883 were necessary. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditures of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds. Encumbrances outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reapportioned and honored dudng the subsequent year. B) Excess Of Expenditures Over Appropriations Expenditures exceeded appropriations in the following special revenue funds: Expenditures Over AppropriaUons: NEH1 Museum Grant Fund Asset Seizure Federal Asset Seizure Fixed Asset Fund Redevelopment Capital Projects Fund $4O3 6,496 2,850 29,861 235,927 These over-expenditures were funded by additional grant revenues in the NEH1 Museum Grant and by available fund balance in the case of the other funds. 31 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 C) Deficit Fund Equity The following special revenue funds had deficit fund balances as of June 30, 2005. These deficits were primarily caused by expenditures in excess of grant awards. Management is monitoring each fund's activities to ensure improved financial position. The deficits do not represent a significant financial burden. Deficit Fund Equities: Park Development Fund $59,961 Museum Grant Fund 618 NEH1 Museum Grant Fund 4,150 STIP Augmentation Fund 2,315 4) Detailed Notes On Ail FiJn;l$ A) Cash And Investments Cash and investments are reported in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments Cash wilh fiscal agent Restricted cash with fiscal agent Statement of Fiduciary Net Assets: Cash and investments Total Cash and Investments Cash and investments consist of the following: $49,269,384 615,714 2,174,439 5,883,522 $57,943~059 Cash on hand $1,350 Deposits with financial institutions 996,976 Investments 56,944,733 Total Cash and Investments $57~943,059 Authorized Investrm)nts - City Investment Policy The table below identifies the types of investments that are authorized by the City's investment policy: Authorized Investment Type City of Ukiah Bonds U.S. Treasuries (notes, bonds, bills and other indebtedness) Obligations of the State of California (warrants, notes and bonds) Local Agency Obligations (bonds, notes and other indebtedness U.S. Agency Obligations Bankers Acceptances Commercial Paper (rated 'A' or better) Negotiable Certificates Repurchase Agreements Reverse Repurchase Agreements (2) Medium-Term Notes Money Market Funds (highest rating) Local Agency Investment Fund Time Deposits Mortgage-Backed and Asset-Backed Securities (rated 'AA' or better) Maximum Maximum Maximum Total of Investment In Maturit~ Portfolio One Issuer 5 years No limit 10% 5 years No limit None 5 years No limit 10% 5 years No limit 10% 5 years No limit None 180 days 40% 10% 180 days 15% (1) 10% 5 years 30% 10% 365 days No limit 10% 92 days 20% 10% 5 years 30% 10% 5 years 20% 10% 5 years $40 million 10% 5 years 25% 10% 5 years 20% 10% 32 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 (1) = 30% if dollar weighted average maturity of commercial paper does not exceed 31 days. (2) = Requires prior City Council approval before investment is purchased. Authorized Investments - Debt Trustee Aareerntn~ Investments held by bond fiscal agents (trustees) am govemed by the provisions of the underlying indenture agreements rather than the general provisions of the City's investment policy or Califomia Govemment Code. The indenture agreements do not specifically identify maximum maturity and maximum investment provisions. The indenture agreements do identify the following permitted investments: U.S. Government Obligations U.S. Agency Obligations Money Market Funds (rated AA,Am-G, AAAm or Aam) Demand or Time Deposits (FDIC insured or fully secured) Bonds or Notes (must have one of two highest ratings) Bankers Acceptances commercial Paper Repurchase Agreements Interest Rate Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for City's operations. The City's target maximum average maturity to control overall exposure to interest rate risk is 2.5 years As of June 30, 2005, the City had the following investments: Investment T~:~e corporate Bonds and Notes U.S Treasury Bonds and Notes U.S. Government Agency Bonds and Notes U.S. Government Mortgage Passlhmughs Mortgage-Backed and Asset-Backed Securities Money Market Funds State Investment Pool Held By Bond Trustee: Money Market Funds Weighted Average Fair Value Matudty (Years) $6,766,860 1.86 10,710,155 1.54 29,737,823 1.61 892,647 2.92 4,077 16.50 127,767 0.00 5,915,250 0.49 2,790,154 0.00 Total Fair Value Portfolio Weighted Average Matudty 56,944,733 1.45 Dislosums Relatina to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2005, the City's investments ware in compliance with the ratings required by the City's investment policy and indenture agreements. 33 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Investment T~3e Corporate Bonds end Notes U.S Treasury Bonds and Notes U.S. Government Agency Bonds and Notes U.S. Government Mortgage Passthroughs Mortgage-Backed and Asset-Backed Securities Money Market Funds State Investment Po~ Held By Bond Trustee: Money Market Funds Minimum Rating $6,766,86O 10,710,155 29,737,823 892,647 4,077 127,767 5,915,250 2,790,154 Exempt From Disclosure $10,710,155 Year End F~tir~ AAA/AAAm AA- A+ $2,254,575 $1,491,915 $3,020,370 29,737,823 892,647 4,077 127,767 2,790,164 Not $5,915,250 Total Fair Value $56r944f733 Concentrations of Crodl~ Rigk $10r710~155 $35 807 043 $1,4911915 $3rO20r370 $519151250 With the exception of securities of the U.S. Govemment and its Agencies, the investment policy of the City limit the amount that can be invested in any one issuer to no more than 10% of the total portfolio. Investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of the total District investments are as follows: Investment Type Issuer Fair Value U.S. Federal Agency Security U.S. Federal Agency Secudty U.S. Federal Agency Security FHLMC $3,649,097 FHLB 8,206,248 FNMA 17,882,478 Custodial CnMit Risk Custodial credit dsk for deposits is the risk that in the event of bank failure, the City's deposits may not be retumed to the City or the City will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The Califomia Govemment Code requires that a financial institution secure deposits made by state and local governmental units by pledging securities in an undivided collateral pool held by the a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal 110% of the total deposits by public agencies. Califomia law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. It is the policy of the City not to waive these requirements. At year-end, the City's deposits with financial institutions totaled $1,766,140, of which $300,000 was covered by federal depository insurance. The $1,466,140 uninsured amount was exposed to custodial credit risk and was collateralized by securities, as described above. As of June 30, 2005, City investments in the following investment types were held by the same institution that was used by the City to buy the securities: Money Market U.S. Treasury Federal Government Agency U.S. Government REMICS/CMO's U.S. Government Mortgage Pass-Throughs Corporate Bonds $127,767 10,710,155 29,737,823 4,077 892,647 6,766,860 34 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Investment in State Investment Poql The Local Agency Investment Pool (LAIF) is a special fund of the California State Treasury through which local governments may pool investments. The City may invest up to $40,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. Funds deposited in LAIF are invested in accordance with Government Code Sections 16430 and 16480. Oversight of LAIF is provided by the Pooled Money Investment Board whose members are the California State Treasurer, California Director of Finance and the California State Controller. For the purpose of these financial statements, the fair value of amounts in LAIF is equivalent to the dollars held. B) Capital Assets Construction And Other Commitments The City has active construction projects as of June 30, 2005. The projects include expansion and upgrade of the water treatment plant and sewage treatment plant. The City has also entered into an agreement to develop new citywide financial software. At year-end the City's commitments with contractors are as follows: Water treatment plant expansion Sewage treatment plant expansion Software development project Expended Remaining To-Date Commitment $5,637,492 $6,280,730 5,327,286 1,774,526 94,403 476,609 Capital assets activity for the year ended June 30, 2005 was as follows: Balance Government Actlvitlee: July 1, 2004 Additions Nondepreciable Capital Assets: Land $1,675,023 Construction in progress 254,779 $110,049 Total Nondepreciable Capital Assets 1,929~802 110,049 Depreciable Capital Assets: Land improvements 814,164 47,511 Buildings 5,947,976 Ucensed vehicles 1.927,967 107,613 Machinery and equipment 1,802,156 169,931 Infrastructure 1,164,213 Total Depreclable Capital Assets 11,656,476 325,055 Less: Accumulated Depreciation: Land improvements (634,751) (39,724) Buildings (1,651,038) (118,961 ) Licensed vehicles (1,427,661) (117,483) Machinery and equipment (1,055,420) (124,108) Infrastructure (12,830) (17,911 ) Total Accumulated Depreciation (4,781,700) (418,187) Depreclable Capital Assets, net 6,874,776 (93,132) Governmental Activities Capital Assets, net $81804,578 $16,917 Deletions $43,658 43,658 $43,658 Balance June 30~ 2005 $1,675,023 321,170 1,996,193 861,675 5,947,976 2,035,580 1,972,087 1,164,213 11,981,531 (674,475) (1,769,999) (1,545,144) (1,179,52a) (30,741) (5,199,887) 6,781,644 $8,777,837 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Bualnes~.Type Activities: Nondepreciable Capital Assets: Land Construction in progress Total Nondepreciable Capital Assets Depreciable Capital Assets: Land improvements Buildings and improvements Ucensed vehicles Machinery and equipment Total Depreciable Capital Assets Less: Accumulated Depreciation: Land Improvements Buildings and Improvements Licensed vehicles Machinery and equipment Total Accumulated Depreciation Depreciable Capital Assets, net Business-Type Activities Capital Assets, net Balance July 1, 2004 Additions Deletions $2,644,348 2,910,541 $8.882,929 5,554,889 8,882,929 $4,863 $4,863 1,008.092 4,863 42,531.012 79,509 1,609,532 96,212 4.718,596 401,313 49,867,232 581,897 34,320 34,320 (867,727) (8.885) (13,810,660) (849.037) (1.139,154) (90.632) (2,457,536) (153.904) (18,275,077) (1,102,458) 31,592,155 (520,561) $37.147,044 $81362,368 (34.320) (34,320) 0 $4,863 Depreciation expense was charged to functions/programs of the City as follows: Governmental Activities: General government Public safety Streets Parks Community development Total Depreciation Expense -Govemmental Activities $131.712 102,227 81,157 33.629 69.462 $418.187 Business-Type Activities: Electric Water Sewer Disposal site Airport Parking Golf course Conference center Total Depreciation Expense - Business-Type Activities $558,610 152.124 280.414 25.410 17.348 1,195 19,008 48,349 $1,102.458 Balance June 30, 2005 $2,644,348 11,788,607 14,432,955 1,012,955 42.610,521 1,705.744 5,085,589 50,414,809 (876,612) (14.659,697) (1.229,Z86) (2,577,120) (19,343,215) 31,071,594 $45,504.549 36 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 C) Interfund Receivables, Payables And Transfers The composition of Interfund balances and transfers within the City's fund financial statements as of June 30, 2005 is as follows: Due To(From) Other Funds Due To Due From General Fund $1,954 Electric Fund 3,014,637 Water Fund $3,014,637 Nonmajor enterprise funds 1,954 Total Due To(From) Other Funds $3,016,591 $3,016,591 Advances Due To(From) Other Funds Due To Due From General Fund $342,651 $73,181 Electric Fund 1,126,147 Nonmajor governmental funds 1,468,798 Intemal service fund 73,181 Total Due To(From) Other Funds $1,541,979 $1,541 ~979 The due to(from) other funds were the result of funds with negative pooled cash balances at June 30, 2005. The Water fund had a negative cash balance due to construction costs incurred before revenue bond issue proceeds were received. The Golf fund (nonmajor enterprise fund) negative cash balance was from normal operations. Long-term advances to the Ukiah Redevelopment Agency (nonmajor governmental fund) from the General and Electric funds are due upon demand, but are unlikely to be repaid within one year. The Liability fund made a long-term advance to the General fund that will be repaid over the next ten (10) years. Interfund Transfers Transfers In Transfers Out General Fund $675,000 $346,083 Electric Fund 675,000 Nonmajor governmental funds 935,438 691,999 Nonmajor enterprise funds 102,644 Total Transfers In(Out) $1,713,082 $1,713,082 The $675,000 transfer represents payments in lieu of taxes by the electric department to the General fund. The General fund made a transfer of $102,644 to the Conference Center (a nonmajor enterprise fund) to subsidize the cost of operations. The General fund transferred of $243,439, Off-Systems Roads (a nonmajor special revenue fund) transferred $29,499, and Fixed Assets (a nonmajor capital projects fund) transferred $662,500 to Special Projects (a nonmajor capital projects fund) for future projects of the City. D) Capital Leases At June 30, 2005, the City was obligated for one (1) agreement that financed the acquisition of a golf course that has been reported as a capital lease. This leasing arrangement is with the Redwood Empire Financing Authority (Authority). The Authority issued certificates of participation, the proceeds of which are used to acquire the actual property. The Authority then leased the property to the City, with the lease payments being used for the debt service requirements of the Authority. The lease, therefore, meats the criteria of a capital lease that is defined generally as one which transfers the benefits and risks of ownership to the lessee. The lease obligation has been recorded at the present value of the future minimum lease payments as of the date of inception. 3? CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 The following is a schedule of the asset acquired through the capital lease: Asset: Land - golf course Total Business-Type Activities $1,001,350 $1,001~350 The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2005 were as follows: Year Ended June 30~ Golf Fund 20O6 $91,330 2007 88,930 2008 91,358 2009 88,612 2010 90,640 Thereafter 800~400 Total Minimum Lease Payments 1,251,270 Less: Amount representing Interest (421,270) Present Value Of Minimum Lease Payments $830,000 E) Long-Term Debt Revenue Bonds. The City has issued bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding, net of unamortized discount of $370,179, at June 30, 2005 were as follows: Purpose Interest Rates Amount Electric Revenue Refunding Series 1992 3.20% - 5.90% $17,369,851 Department of Water Resources Loans. The City has obtained two (2) loans from the California Department of Water Resources 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 water treatment plant maximum loan amount is $3,599,009 and is payable over 30 years. At June 30, 2005, the balance of the loan was $2,299,063. Principal and interest are payable semi-annually on April 1, and October 1, with the interest rate being 3.6024%. Loan payments will be made exclusively from revenues received from assessments and user charges of the treatment plant. The wastewater treatment plant maximum loan amount is $6,592,944, payable over 20 years. At June 30, 2005, the balance of the loan was $3,941,557. Principal and interest are payable annually with the interest rate being 3.0%. California Airport Loan. The City has obtained a loan from the Califomia Department of Transportation to finance the purchase and installation of a fuel storage tank. The original loan amount is $165,000, payable over 10 years. At June 30, 2005, the balance of the loan was $-0-. Principal and interest were payable annually with the interest rate being 5.8957%. Uklah Redevelopment Agency Loan Payable. The Ukiah Redevelopment Agency (RDA) has entered into a loan agreement, dated December 30, 1993, for $6,935,000 with the Redwood Empire Financing Authority (Authority). The Authority issued certificates of participation, the proceeds of which are used to provide funds to loan the RDA. The Authority then uses the RDA loan payments for the debt service requirements of the Authority. The loan balance at June 30, 2005, wes $5,635,000. The terms of loan require semi- 38 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 annual interest payments in December and June at annual rates ranging fi'om 4.00% to 6.50%. Principal payments are due annually in December through the year 2023. Loan payments by the RDA will be made exclusively from revenues received from property tax increments. Uklah Redevelopment Agency REDIP Loan Payable. The Ukiah Redevelopment Agency (RDA) has entered into a loan agreement, dated May 29, 1996, with the Rural Economic Development Infrastructure Panel (REDIP) to fund the construction of infrastructure within the RDA project area. The principal amount of the loan was $758,557 and the balance at June 30, 2005 was $230,941. Principal and interest payments of $43,662 are payable semi-annually on January 1, and July 1, through July 1, 2008. The loan carries an interest rate of 6.5% per annum. Rural Economic Development Infrastructure Program. The City of Ukiah accounts for some of the operations of the Ukiah Valley Sanitation District within the City's agency funds. As part of a sewer line construction project, the Ukiah Valley Sanitation District has received a Rural Economic Development Infrastructure Panel (REDIP) loan in an amount not to exceed $475,595. The City of Ukiah is not obligated in any manner to repay this loan, but has included the outstanding balance of $76,234 as a liability within the City's agency funds. Landfill Closure And Postclosura Costs. As more fully discussed in Note 5(D), long-term liabilities include $7,624,181 in accrued landfill closure and postclosure costs. These liabilities are not included in the following discussion of debt service requirements and changes in long-term liabilities. Chanaes in long-term liabilities Long-term liability activity for the year ended June 30, 2005 was as follows: Government Activities: Loans payable Balance Balance Due Within July 1, 2004 Additions Deletions June 30, 2005 One Year $6,157,742 $291,801 $5,865,941 $196,157 Governmental Activities Long-Term Uabilities $6,157,742 $0 $291,801 $5,865,941 $196,157 Business.Type Activities: Revenue bonds payable Less: Unamortized discount Net revenue bonds payable Balance Balance Due Within July 1~ 2004 Additions Deletions June 30, 2005 One Year $18,595,000 $855,000 $17,740,000 $910,000 (398,622) (28,473) (370,149) 18,196~378 $0 826,527 17,369,851 910,000 State loans: Airport loan 21,684 21,684 0 0 Water Resources - Water Treatment 2,395,805 96,742 2,299,063 100,085 Water Resources - Sewer Treatment 4,240,340 298,783 3,941,557 307,747 Total State loans . 6,657,829 0 417,209 6,240,620 407,832 Capital leases: Golf course 865,000 35,000 830,000 40,000 Less: Unamortized discount (19,864) (1,382) (18,482) Net capital leases 8457136 0 33~618 8117518 407000 Landfill closure and post-closure 7~473,177 151,004 0 7,624,181 0 Business-Type Activities Long-Term Uabilities $331172,520 $151,004 $1,277,354 $32,046,170 $1,3571832 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Debt service requirements to maturity, including the loans payable by the Ukiah Redevelopment Agency, but excluding the Ukiah Valley Sanitation District REDIP loan and landfill closure and post-closure liability, are presented on the following schedules. Govemmental A~vities Year Ended RDA Loans June 30, Principal Interest 2006 $196,157 $374,158 2007 245,877 359,862 2008 265,889 344,433 2009 233,018 327,848 2010 205,000 310,014 2011-2015 1,245,000 1,320,800 2016-2020 1,690,000 854,720 2021-2024 1,785,000 237,600 $51865,941. $4,129,435 Business-Type Activities Year Ended Revenue Bonds June 30, Principal Interest Principal 2006 $910,000 $1,101,475 $407,832 2007 970,000 1,046,875 420,702 2008 1,030,000 988,675 433,981 2009 1,095,000 926,875 447,683 2010 1,165,000 858,438 461,821 2011-2015 7,085,000 3,099,687 2,537,427 201 6-2020 5,485,000 700,625 1,182,646 2021-2024 348,528 State Loans Interest $200 175 187 305 174 025 160.323 146 185 502.602 153 411 15 497 $17,740,000 $8,722,650 $6,240,62,~.,,.~.0..=0 $1,539,523 F) Segment Information As discussed previously, the City has issued revenue bonds to finance improvements in its electric department, and obtained State loans to finance improvements in its water and sewer departments. These departments were all determined to be major funds for financial reporting purposes and required segment information is presented in the proprietary fund financial statements. 5) Other Information A) Risk Management The City is exposed to vadous risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides property, liability, and worker's compensation insurance through the Redwood Empire Municipal Insurance Fund (REMIF), a public entity risk pool currently operating as a common risk management and insurance program for several Northem Califomla municipalities. The City pays quarterly and annual premiums to the REMIF for its general insurance coverage. The joint powers formation agreement of the REMIF provides that the REMIF will be self-sustaining through member premiums for liability insurance and will reinsure through commercial companies for other coverage. REMIF is a risk sharing, self-funded pool with the exception of earthquake/flood insurance which is a direct purchase program. The REMIF cost sharing pool provides coverage between the City's deductible and $500,000 (liability program) and $1,000,000 (workers' compensation program). Losses in excess of the REMIF cost sharing pool limits are covered by REMIF through the Califomia Joint Powers Risk Management Authority and commercial insurance policies. Losses limits are $25,000,000 (liability), $200,000,000 40 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 (property), $20,000,000 (boiler and machinery), $1,500,000 (auto) and $3,000,000 (workers' compensation) - all per occurrence. Losses exceeding these limits are the responsibility the City. The City's deductibles are $10,000 for worker's compensation, property and auto losses; $25,000 for liability losses; $5,000 for boiler and machinery losses; and $25,000 or 5% of building value for earthquake and flood losses - all per occurrence. Separate intemal service funds, maintained by the City, are reserved to provide for the self-insured portions noted above. The total pooled cash amount in these funds at June 30, 2005, wes $1,363,253 which management feels is adequate to finance the City's share of any losses. The City continues to carry commercial insurance for all other risks of loss, including employee health and accident, coverage of the Municipal Airport and bonding of certain employees and elected officials. Settled claims resulting from these risks have not exceeded commemial insurance coverage in any of the past three risc. al years. B) Related Organizations The City is a member of various joint powers authorities that provide goods or services to the City and other authority members. Under the criteria established by GASB-14, the City does not have sufficient authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations as defined by GASB-14. The names and general functions of these joint powers are as follows: Northem Califomia Power Aaencv (NCPA) - Membership consists of eleven municipal electric utilities, one Rural Electric Cooperative, an irrigation district, and a public utility district. The NCPA is generally empowered to purchase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of the Agency on an elective basis. A Commission comprised of one representative for each member governs the NCPA. The City is currently involved in several hydroelectric, geothermal and other energy related projects as a member of this agreement. The NCPA is financed by contributions from member cities, government grants and debt. The City is committed to provide substantial additional financial support for its portion of the actions and projects of the NCPA. During the year ended June 30, 2005, the City paid $7,287,160 to the NCPA for power supplied by the agency. The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. At July 31, 2005, the City's balance held in the reserve was $4,054,755. Due to the nature of the reserve held by NCPA, payments made to the reserve are expensed as purchased power. Mendocino Transit Authority_ - This Agency consists of four Mendocino County cities and the County of Mendocino. The Agency wes created to apply for and receive Transportation Development Act, Urban Mass Transportation Act, and other funds as a public transportation operator and to provide public transportation services within Mendocino County. Its activities are primarily financed from fare box revenue and federal and state govemment grants. A Board of Directors comprised of one member from each city and three members that ara appointed by the Mendocino County Board of Supervisors govems the Authority. Redwood Empire FinancirK~ Authority_ (REFA) - This is an agreement between seven Northern Califomia cities. The Authority is authorized to acquire, through lease purchase, installment sale agreements, or otherwise such property necessary or convenient for the operation of the member cities. A Commission comprised of one member appointed by each member city administers the Authority. As explained previously, the City has entered into various financing arrangements with REFA. Redwood EmDire Municioal Insurance Fund (REMIF) - A group of Norlhem California cities participate in this agreement to provide themselves with various levels of liability, property and worker's compensation insurance. A Commission comprised of one member appointed by each member city administers the Authority. As explained previously, the City provides for its general and workers' compensation insurance 4] CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 needs through REMIF. Annual premiums paid to the Authority were $883,253. In addition the City received refunds from REMIF totaling $93,948. Transmission Aaencv Of Northem Califomia (TANC) - Members include eleven cities, one electric co-op, two irrigation districts, and one public utility district. The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to one percent (1%) of the total. Mendocino Solid Waste Manaaement Authority_ (MSWMA) - This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of: (a) siting, licensing, developing, constructing, maintaining, and operating disposal sites and sanitary landfills and (b) preparing and implementing a solid waste management plan. A Commission comprised of one member from each city and two members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Mendocino Emem_enc¥ Sen, ices Authority (MESA) - This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of coordinating disaster and other emergency preparedness planning and recovery programs. A Commission comprised of one member from member entity governs the Authority. During the year ended June 30, 2005, the City paid MESA $5,482 for its share of the Authorities operating expenses. C) Contingencies Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. There are several pending lawsuits in which the City is involved. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City attomey the resolution of these matters will not have a material adverse effect on the financial condition of the City. D) Landfill Closure And Postclosure Costs State and federal laws and regulations require that the City place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability are being recognized based on the future closure and postciosure care costs that will be incurred near or after the landfill no longer accepts waste. The recognition of these landfill closure and postclosure care costs is based on the amount of landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $7,624,181 (including $756,891 for corrective action liability) as of June 30, 2005, which is based on 100.0% usage (filled) of the landfill. This estimated total current cost of the landfill closure and postclosure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2005, as determined by the last engineering study performed. However, the actual cost of closure and postclosure care may change due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by state and federal laws and regulations to make annual contributions to finance closure and postciosure care. The City is in compliance with these requirements, and at June 30, 2005, held $6,797,994 within its pooled investments designated for these purposes. The City has made a pledge of future service revenues for anticipated remaining expected costs, future inflation costs, and any additional costs that might arise from changes in postdosure requirements (due to changes in technology or more rigorous environmental regulations, for example). 42 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 E) Service Contracts The City has entered into several agreements to provide services to persons living outside the City limits. The general purpose and description of these contract agreements ara as follows: The City has contracted with the Ukiah Valley Sanitation Distdct to provide processing of the District's wastewater. In addition, the City provides billing, collection and other direct maintenance services for the District. District assets held by the City are accounted for in the Agency funds. The City has granted Solid Waste Systems, Inc. a franchise for mandatory residential and optional commercial garbage collection and disposal. The City has also contracted with Solid Wastes Systems, Inc., to provide a cltywide recycling program. The City acts as billing and collecting agent for the residential accounts of Solid Waste Systems, Inc. Amounts held by the City on behalf of the corporation are accounted for in the Agency funds. Dudng 2001, the City exchanged a parcel of land to the County of Mendocino for $1 and five (5) years of animal shelter services commencing in fiscal year 2000/01 through 2005~06. Animal shelter services are to include "acceptance, care, processing and disposition of all Ukiah animals, whether alive or dead.' F) Employee Retirement Systems Plan Description: The City has three (3) defined benefit pension plans; the Miscellaneous Plan of the City of Ukiah (Miscellaneous Plan), the Safety Police Plan of the City Of Ukiah (Police Plan), and the Safety Fire Plan of the City if Ukiah (Fire Plan). Each plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Plans ara pert 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 Califomia. CalPERS requires plans with less than 100 active members must participate in a risk pool. As such, both the Police Plan and Fire Plan are required to participate in a risk pool. State statutes within the Public Employees' Retirement Law establish a menu of benefit provisions as well as other requirements. The City of Ukiah selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from the CalPERS Executive Office - 400 P Street - Sacramento, CA 95814. Funding Polic~ Active plan members in the Plans are required to contribute 7.0% (10% for Police and Fire employees) of their annual covered salary. The City is required to contribute the actuadally determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by CalPERS Board of Administration. The required employer contribution rate for fiscal 2004/05 was 16.342% for miscellaneous employees and initially 12.189% for police and fire employees increasing to 23.267%. 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 2004/05 the City's annual pension cost was $1,278,801 ($908,823 for Miscellaneous, $229,891 for Police and $140,087 for Fire) and the City actually contributed $1,278,801. In addition, the City paid $720,200 representing substantially all of the employees' required contributions under the terms of the City's various employee bargaining unit agreements. The annual required contribution for fiscal year 2004~05 was determined as part of the June 30, 2002, actuarial valuation using the entry age actuarial cost method with the contributions determined as a percent of pay. The actuarial assumptions include the following: 43 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2005 Miscellaneous Police Fire Investment rate of retum 8.25% 8.25% 8.25% Projected salary increases 3.75% - 14.20% 4.27% - 11.59% 4.27% - 11.59% Inflation 3.50% 3.50% 3.50% Payroll growth 3.75% 3.75% 3.75% The actuarial value of the Plan's assets wes determined using a three-year smoothed market 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. Each Plan's unfunded actuarial liability is being amortized as a level percentage of projected payrolls over a dosed period that began on the Plan's date of entry into the CalPERS system. Subsequent Plan amendments are amortized over 20 years. If the Plan's accrued liability exceeds the actuarial value of plan assets, then the amortization period on the total unfunded liability may not be lower than 30 years. As of June 30, 2004, the remaining average amortization period wes 30 years for Miscellaneous, and 14 years for Police and Fire. Three-Year Trend Information Year Ending Annual Pension Cost Percentage Net Pension June 30, Miscellaneous Police Fire Contributed Obligation 2003 $0 $0 $0 100% $0 2004 432,580 0 0 100% 0 2005 908,823 229,891 140,087 100% 0 G) Deferred Compensation The City of Ukiah 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 have been excluded from the accompanying financial statements. H) Subsequent Event On September 1, 2005, the City entered into an agreement with the Association of Bay Area Governments (ABAG) to provide funding for the City's weter treatment plant upgrade. Under the terms of the agreement ABAG will provide the City with $12,700,000 in proceeds from ABAG's 2005 Water and Wastewater Revenue Bond, Series A bond issue. The proceeds will be used to finance the acquisition and construction of the City's water treatment plan capital improvements. The City agrees to repay ABAG in semi-annual installments commencing March 1,2006 through the year 2035. REQUIRED SUPPLEMENTAL INFORMATION Schedule I CITY OF UKIAH GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2005 Budgeted Amounts Original Final General Variance With Final Budget- Positive (Negative) Taxes Licenses and permits Fines, forfeitures, and penalties From other agencies Use of money and property Charges for current services Other Total Revenues EXPENDITURES $5,747,469 126,100 55,575 802,721 790,330 708,360 1,200 8,231,755 $5,747,469 126,100 55,575 1,151,288 815,052 730,360 1,200 8~627t044 $5,913,866 167,521 57,722 1,180,016 806,377 725,125 32,896 8,883t523 $166,397 41,421 2,147 28,728 (8,675) (5,235) 31,696 256r479 Current: General government Public safety Public works Parks and recreation Community development Debt service Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES 1,301,408 5,811,005 1,012,501 1,251,983 13,500 77,000 1,350,484 5,910,511 1,208,858 1,288,538 17,930 7,322 224,467 1,297,228 5,776,896 981,799 1,353,206 9,717 1,341 130,387 9~467,397 10,008,110 9,550,574 (667,051) (1,235,642) (1,381,066) 53,256 133,615 227,059 (64,668) 8,213 5,981 94,080 457,536 714,015 Transfers in Transfers out Total Other Financing Sources (Uses) Net Change In Fund Balances Fund Balances, July 1, Fund Balancee, June 30, 675,000 (102,644) 572,356 (563,286) 3,957,043 $3~293~757 675,000 (102,644) 572,356 (808,710) 3,957,043 $3~14~333 675,000 (346,083) 328,917 (338,134) 3,957,043 $3~,618~,909, 0 (243,439) (243,43g) 470,576 0 $470~,576 45 Schedule II CITY OF UKIAH SCHEDULE OF FUNDING PROGRESS PUBLIC EMPLOYEES' RETIREMENT SYSTEM Mlecellaneou~ Plan Of The Cit~ Of Ukleh Actuarial Aocrued Actuarial Liability Unfunded Actuarial Value of (AAL). AAL Valuation Auet~ Entry Age (UAAL) June 30, 2002 $28,144,285 $30,403,380 $2,259,095 June 30, 2003 28,139,059 34,079,314 5,940,255 June 30, 2004 29,605,831 37,921,189 8,315,358 Funded Ratio 92.6% 82.6% 78.1% Covered Payroll $5,234,005 5,729,559 5,649,233 UAAL a~ a Percentage of Covered Payroll [(B-A)~C] 43.2% 103.7% 147.2% Safet~ Police Plan Riel; Pool (1) Actuarial Accrued Actuarial Liability Unfunded A,~arlel Value of (AAL) - AAL Valuation .4m~ets Entry Age (UAAL) Date June 30, 2003 $1,083,690,137 $1,21 8,082,935 $134,392,798 June 30, 2004 4,424,586,846 5,383,921,942 959,335,096 Funded Ratio 89.0% 82.2% Covered Payroll $164,098,257 575,296,434 UAAL Il a Percentage of Covered Payroll [(a-A)/C] 73.0% 166.8% Safet~ Fire Plan Riak Pool Actuarial Accrued Actuarial Liability Unfunded Actuerlal Value of (AAL) - AAL Valuation Ae~ets Entry Age (UAAL) (A) (a) June 30, 2003 $1,083,690,137 $1,218,082,935 $134,392,798 June 30, 2004 885,549,650 996,203,370 110,653,720 Funded Ratio Covered Payroll (c) 89.0% $1 64,098,257 88.9% 149,407,703 UAAL aa a Percentage of Covered Payroll [(a-A¥C] 73.0% 74.1% (1) = CalPERS requires individual plans with less than 100 active members to participate in a dsk pool. The amounts included in the schedule am for the entire risk pool. Individual employer data is no longer provided. Only two years of information was available SINGLE AUDIT AND OTHER COMPLIANCE W UJ 0 z o W W oo All '1 CITY OF UKIAH NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AND OTHER AWARDS JUNE 30, 2005 NOTE A SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal and other awards is a summary of the activity of the City of Ukiah's federal and other award programs and has been prepared on an accounting basis consistent with the government-wide financial statements of the City of Ukiah. Therefore, all of the grants presented on the accompanying schedule have been accounted for using the accrual basis of accounting as described in Note 1(c) of the City of Ukiah's Notes to Financial Statements. 50 ~~_~ Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON COMPLIANC~= AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF THE FINANCIAL STATEMENT_~ PERFORMED IN ACCORDANCE WiTH GOVERNMENT AUDITING STANDARDS Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L. Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, CA 95490 We have audited the basic financial statements of City of Ukiah, California, as of and for the year ended June 30, 2005, and have issued our report thereon dated October 28, 2005. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance As part of obtaining reasonable assurance about whether the City's financial statements are free from matedal misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which could have a material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered the City of Ukiah's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A matedal weakness is a condition in which the design or operation of one or more of the intemal control components does not reduce to a relatively Iow level the dsk that misstatements in amounts material in relation to the general purpose financial statements being audited may occur and not be detected within a timely pedod by employees in the normal course of performing their assigned functions. We noted no matters involving the intemal control over financial reporting and its operations that we consider to be a matedal weakness. MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 [~A~s ~o~ ~ co. _Certified Public Accountants This report is intended solely for the information and use of the City Council, management, and the Office of the Controller of the State of California and is not intended to be and should not be used by anyone other than these specified parties. October 28, 2005 52 co. _Ce~ified Public Accountants Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L. Duckett, CPA INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL STRUCTURE OVER COMPLIANCF IN ACCORDANCE WITH OMB CIRCULAR A-133 Honorable Mayor and City Council Members of the City of Ukiah Ukiah, CA 95490 Compliance We have audited the compliance of the City of Ukiah, Califomia, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended June 30, 2005. The City of Ukiah's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the City of Ukiah's management. Our responsibility is to express an opinion on the City of Ukiah's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of Amedca; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with types of compliance requirements referred to above that could have a direct and matedal effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City of Ukiah complied, in all matedal respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2005. Internal Control Over Compliance The management of City of Ukiah is responsible for establishing and maintaining effective intemal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Ukiah's internal control over compliance with requirements that could have a direct and matedal effect on a major federal or other program for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 co. Certified Public Accountants Our consideration of the intemal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. ^ material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level the dsk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operations that we consider to be a matedal weakness. This report is intended solely for the information and use of the City Council, management, and the Office of the Controller of the State of California and is not intended to be and should not be used by anyone other than these specified parties. October 28, 2005 54 CITY OF UKIAH SCHEDULE OF FINDINGS AND QUESTIONED COSTS JUNE 30, 2005 A) Summary of Audit Results 1) The auditors' report expresses an unqualified opinion on the basic financial statements. 2) No reportable conditions related to the audit of the basic financial statements of the City of Ukiah. 3) No instances of noncompliance material to the basic financial statements of the City of Ukiah were disclosed during the audit. 4) No reportable conditions were disclosed during the audit of major federal award programs. 5) The auditors' report on compliance for major federal award programs for the City of Ukiah expresses an unqualified opinion. 6) No instances of noncompliance material to major federal award programs of the City of Ukiah were disclosed during the audit. 7) The programs tested as major programs included: a. Department of Housing and Urban Development Community Development Block Grants CFDA: 14.228 8) The threshold for distinguishing Types A and B programs was $300,000. 9) The City of Ukiah was determined to be a Iow-risk auditee. B) Findings - Financial Statement Audit No reportable conditions were noted during the current audit period. There were no findings outstanding from prior year audits. C) Findin,qs and Questioned Costs - Major Federal Award Programs No findings or questioned costs noted. There were no findings or questioned costs outstanding from prior year audits. co. _Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS Davis W. Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L. Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, California 95490 We have applied the procedures enumerated below to the Appropriations Limit calculations of the City of Ukiah for the year ended June 30, 2005. These procedures, which were agreed to by the City of Ukiah and the League of California Cities (as presented in the League publication entitled Article XlIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1) We obtained the City's completed altemate computation Appropriations Limit worksheets, and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2) Using the City's alternate computational worksheet, we added last year's limit to the total current year limit adjustments, as computed, for this year, and compared the results to this year's limit. Finding: No exceptions were noted as a result of our procedures. 3) We compared the prior year appropriations limit presented in the altemate computational worksheets to the prior year appropriations limit adopted by the City Council for the pdor year. Finding: No exceptions were noted as a result of our procedures. MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 a co. !~~_~ Certified Public Accountants We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the Appropriations Limit alternate computational worksheets. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication Article XIIIB Appropriations Limitation Uniform Guidelines. This report is intended solely for the use of the City of Ukiah and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. October 28, 2005 AGENDA SUMMARY Item No: 10 d. Date: February 15, 2006 REPORT SUBJECT: SELECTION OF DISASTER PLANNING SUBCOMMITTEE -- ASHIKU Mayor Ashiku has asked to formulate a two-person Councilmember sub-committee to review the City's Disaster Planning process. Since the floods of December 2005, the Mayor has expressed his interest in making sure that citizens are prepared for possible future disasters and the City is prepared to respond. The City is currently heading up the Community Emergency Response Program (CERT) aimed at increasing citizen disaster preparedness within the City. This program was actually developed in the mid-eighties and training began through the Mendocino Emergency Services Authority (MESA) but individual fire departments are now becoming responsible for coordinating this training. The CERT Program assists people in responding to emergencies and members can provide critical support to First Responders, provide immediate assistance to victims and organize spontaneous volunteers at a disaster site. In addition, the City has had an Emergency Plan in place for many years, which was updated several times in the last ten years and is currently being updated again with some new appendix sections being added. All of this information can be discussed with the sub- committee to bring back a report and possible recommendations to the City Council. RECOMMENDED ACTION: Discussion and possible action ALTERNATIVE COUNCIL POLICY OPTIONS: Citizen Advised: Requested by: Prepared by: N/A Mayor Ashiku Candace Horsley, City Manager APPROVED: Candace-H~ley, City M~t~ager AGENDA SUMMARY Item No: 10 e Date: February 15, 2006 REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING PROCEDURES FOR THE APPOINTMENT OF PLANNING COMMISSIONERS -- ASHIKU Mayor Ashiku has asked to agendize a discussion and possible action regarding the procedures for appointment of Planning Commissioners to the City Planning Commission. In May 2004, the City Council introduced an ordinance whereby each member of the City Council individually selected and appointed one member to the Planning Commission. The terms of office for each Commissioner coincided with the terms of office of the Councilmember who nominated that Commissioner. The prior procedures for approval of appointment of Planning Commissioners required the rotational nomination by the Council of candidates and then the vote of the majority of the City Council for approval of that candidate to the Planning Commission. An alternative discussed at that time was to have each Councilmember select their own candidate, but the Council would vote to endorse the appointment. Attached for Council's information is the May 19, 2004 staff report and ordinance that was introduced and subsequently adopted regarding this issue. Also attached for Council's information are the Minutes of the January 5, 2005 City Council meeting where the individual Council Commissioner appointments were made. RECOMMENDED ACTION: Discussion and possible action ALTERNATIVE COUNCIL POLICY OPTIONS: Citizen Advised: N/A Requested by: Mayor Ashiku Prepared by: Candace Horsley, City Manager Coordinated with: Mayor Ashiku Attachments: 1. 2004 Staff Report, Adopted Ordinance and 2005 minutes APPROVED: ~M Candace Horsley, anager Attachment ITEM NO. 8a DATE: May 19, 2004 AGENDA SUMMARY REPORT SUBJECT: INTRODUCTION OF ORDINANCE AMENDING UKIAH CITY CODE SECTIONS 1151 AND 1152 GOVERNING THE APPOINTMENT AND TERM OF OFFICE FOR MEMBERS OF THE CITY PLANNING COMMISSION This matter was originally considered at the City Council's May 5 meeting. Attached is a revised ordinance amending Ukiah City Code ("UCC") Sections 1151 and 1152, which is intended to incorporate the changes discussed by the City Council dudng the May 5 meeting. The City Council had requested an ordinance amending the method for appointing members to the City's Planning Commission to allow each member of the City Council, including the Mayor, to select one member of the Planning Commission. The terms of office for each Commissioner would coincide with the term of office for the Council member who nominated him or her. The pdor version of the ordinance required approval of the individual nominations by a majority vote of the City Council The attached revised ordinance eliminates the approval requirement for of the selection by individual council members, providing, instead, that each Council member appoints one member to the Planning Commission. [Continued to page 2] RECOMMENDED ACTION: 'Adopt motion to introduce ordinance by title only/and follow with motion to introduce ordinance, after City Clerk reads its title. ALTERNATIVE COUNCIL POLICY OPTIONS: Refuse to introduce ordinance or adopt an ordinance with different provisions. Citizen Advised:N/A Requested by: City Council Prepared by: David J. Rapport, City Attomey Coordinated with: Candace Horsley, City Manager Attachments: 1. Proposed Ordinance APPROVED~~"~,,. Ca,dace Ho~ey, C~Manager [Continued from page 1] Section 3 of the revised ordinance also contains a transition provision. Under that provision, the current members of the Planning Commission will ali remain in office until January 1,2005, at which time their terms of office will end. Each City Council member will appoint his or her commissioner, whose term will begin January 2 and will coincide with the term of the appointing Council member. If a vacancy occurs on the Planning Commission before January 1 (due to a resignation or death, for example), the Council member, including the Mayor, with the most seniority on the Council will appoint a replacement who will serve until January 1. If more than one vacancy occurs prior to January 1, each such vacancy would be filed in the same manner by the other Council members in order of their seniority on the Council. A Council member could reappoint any such commissioner for a full term after January 1. ORDINANCE NO. 1055 AN ORDINANCE OF 'THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTIONS 1151 and 1152 OF THE UKIAH CITY CODE CONCERNING THE APPOINTMENT OF COMMISSIONERS TO THE PLANNING COMMISSION AND THEIR TERMS OF OFFICE. The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE Sections 1151 and 1152 in Article 4, Chapter 4 of Division I of the Ukiah City Code are amended to read as follows: § 1151: MEMBERS; APPOINTMENT: Said Commission shall consist of five (5) members who shall be residents of the City. Each member of the City Council, including each newly elected or appointed City Council member, shall appoint one Commissioner. A new City Council member selected to fill a vacancy on the Council and serve out an unexpired term of office may replace the Commissioner appointed by that Council member's predecessor in office. If a Commissioner vacates his or her office before the expiration of his or her term of office, the appointing City Council member of that Commissioner shall appoint a replacement to serve the remainder of that Commissioner's term of office. If a City Council member fails to appoint a Commissioner within sixty (60) days after the vacancy occurs, a majority of the City Council shall fill the vacancy following the procedure used to appoint members to other City commissions and boards. § 1152: TERMS OF MEMBERS: A Commissioner's term of office shall coincide with the term of the City Council member, including the Mayor, who appointed that Commissioner. SECTION TWO This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah. SECTION THREE This Ordinance shall become effective thirty (30) days after adoption. Planning ORDINANCE NO. 1055 1 of 2 Commissioners who are in office, when this Ordinance becomes effective, shall remain in office until January 1,2005, even if, prior to the effective date of this Ordinance, their term would have expired on or would have extended beyond that date. If a vacancy occurs on the Commission prior to JanUary 1, 2005, it shall be filled by a member of the City Council, including the Mayor. The member of the City Council with the most seniority on the Council shall appoint a Commissioner to fill the first such vacancy. The next most senior City Council member shall appoint a Commissioner to fill the next such vacancy. Any additional such vacancies shall be filled by individual members of the City Council in order of their seniority on the Council. The terms of any such appointees shall end on January 1, 2005. After January 1, 2005, a Council member may reappoint to a full term of office a Commissioner he or she appointed prior to January 1, 2005. Introduced by title only on May 19, 2004, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Rodin, Smith, and Vice Mayor Baldwin. None. Counciimember Andersen and Mayor Larson. None. Adopted on June 2, 2004 by the following roll call vote: AYES: NOES: Mayor Larson ABSENT: None ABSTAIN: None Councilmembers Rodin, Andersen, Smith, and Vice Mayor Baldwin Eri~ L~arson, Mayor ~Gordon Elto~,-City C'[erk ORDINANCE NO. 1055 2of2 Attachment The motion carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. City Clerk Ulvila read the title of the Ordinance, "An Ordinance of the City Council of the City of Ukiah Adding Division 7, Chapter 1, Article 9, Entitled "Unlawful Panhandling" to the Ukiah City Code." M/S McCowen/Baldwin introducing an amended version of the Camping Ordinance by title only; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. City Clerk Ulvila read the title of the Ordinance, ",An Ordinance of the City Council of the City of Ukiah Revising the Ukiah City Code by Repealing Division 2, Chapter 4, Thereof, Entitled "Trailers and Trailer Camps" and adding thereto Division 7, Chapter 1, Article 8, entitled "Camping". M/S McCowen/Rodin introducing Ordinance; carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor ,Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 9. NEW BUSINESS 9a. ADDointments to the Planning Commission Mayor Ashiku appointed Mike Whetzel to the Planning Commission to a term expiring November 2006. Vice-Mayor Baldwin appointed Ken Anderson to the Planning Commission to a term expiring November 2006. Councilmember Rodin appointed Judy Pruden to the Planning Commission to a term expiring November 2008. Councilmember McCowen appointed Kevin Jenninqs to the Planning Commission to a term expiring November 2006. Councilmember Crane appointed Jim Mulheren to the Planning Commission to a term expiring November 2008. Continued 7. PUBLIC HEARING (6:45 P.M.) 7a. Adoption of Resolution Certifying the Environmental Impact Report for the Orr Creek Bridge and Orchard Avenue Extension Project Leonard Charles, City of Ukiah consultant, advised that Council needs to consider whether it has adequate information in the EIR to make an informed decision. There was a substantial public discussion but that discussion focused on the suggestion in the Addendum that the City not require the preparation of a specific plan or comprehensive Regular Ukiah City Council Meeting January 5, 2005 Page 6 of 29 AGENDA SUMMARY ITEM NO. Urgency Item DATE: February 15, 2006 REPORT SUBJECT: APPROVAL OF JOINT DEFENSE AND CONFIDENTIALITY AGREEMENT AND AUTHORIZATION TO CITY A'R'ORNEY TO SIGN AGREEMENT ON BEHALF OF CITY BACKGROUND: The City of Roseville is withdrawing from a Pooling Agreement among various public entities which belong to the Northern California Power Agency ("NCPA"). The withdrawal raises issues which must be negotiated or resolved through mediation or arbitration between Roseville and the other entities, including which of the on-going expenses of the Pooling Agreement must be paid by Roseville or by the remaining entities, including the City of Ukiah. The remaining public entities must confer with each other and exchange information in the course of resolving this dispute. The attorneys representing NCPA and the other entities want to be able to do this without waiving the attorney-client or attorney work product privileges. A joint defense agreement will extend those privileges to cover such discussions and information exchanges. I have reviewed the agreement and recommend its approval. The City Attorney received the attached joint defense agreement on Monday, February 13. NCPA wants to schedule a strategy session before the end of February. The City Council won't meet again until March 1. As a result, the need to take action arose after the agenda was prepared and there is a need to approve the agreement before the City Council is scheduled to meet again. RECOMMENDED ACTION: Approve Joint Defense and Confidentiality Agreement Regarding City of Roseville Withdrawal from Pooling Agreement and authorize City Attorney to sign agreement on behalf of City ALTERNATIVE COUNCIL POLICY OPTIONS: Refuse to approve agreement; request City Attorney to negotiate revisions to agreement with NCPA and other parties to agreement. Citizen Advised: N/A Requested by: NCPA and other entities which are parties to Pooling Agreement Prepared by: David J. Rapport, City Attorney Coordinated with: Candace Horsley, City Manager Attachments: 1. Joint Defense and Confidentiality Agreement Regarding City of Roseville Withdrawal from Pooling Agreement Can(~'~ce ~ors~ey, City Manager JOINT DEFENSE AND CONFIDENTIALITY AGREEMENT REGARDING CITY OF ROSEVILLE WITHDRAWAl[. FROM POOLING AGREEMENT This Joint Defense and Confidentiality Agrec-ment (thc "Agreement") is entered into and effective as of February 2, 2006 by and between the Northern Calitbrnia Power Agency, a joint powers agency ("NCPA") and the fifliowing members of NCPA: the City of Alamada, a municipal corlx>ration ("Alameda"); thc Bay Area Rapid Transit District, a special district ("BART"): thc City of Biggs, a municipal corporation ("Biggs"); thc City of Gridley, a municipal corporation ("Gridlcy'); thc City of Healdsburg, a municipal corlx.~ration ("l-lcaldsburg"); thc City of Lodi, a municipal corporation ("Lodi"); the City of Lompoc, a municipal corporation ("Lomlx~C"); thc City of Palo Alto, a municipal corporation ("Palo Alto"); the Plumas-Sicwra Rural Electric Cooperative, a rural electric cooperative (L'Plumas-Sierra"); thc City ot' Oakland, a municipal corporation acting by and through the Port of Oakland ("Port of Oakland"): the City of Rcdding, a municipal corporation ("Rcdding"); the City of Santa Clara, a municipal corporation ("Santa Clara"); the Truckee-Donner Public Utility District, a public utility district C'Truckee-Donncr"); the Turlock irrigation District, an irrigation district ("Turlock") and the City of klkiah, a municipal corporation ("Ukiah), each of whom is a "Party" to this A~ecrnent and all of whom are collectively referred to a~s "Parties". RECITALS A. Each of the Parties other than NCPA is a signatory to that certain joint powers agreement first executed as of July !9, 1968 and revised as of April 1, 1973, as amended and supplemented forming NCPA and is therefore an NCPA mcanbcr. B. Each of the Parties, °thcr than BART, Plumas-Sicrra, Redding, Santa Clara, Truckee-Donner, and Turlock is a signatory to that certain Pooling Agreement, dated as of September 23, 1993 ("the Pooling Agreement"), and is ret~rrcd to as a "Pool Participant". Those Parties which arc not Pool Participants arc referred to as "non-Participants." C. Pursuant to Article 15.2 of the Pooling Agreement, the City of Roscville ("Roseville"), which is also a member of NCPA and a signatory to the P(~iing Agreement, has provided written notice to NCPA and the Pool Participants that it intends to withdraw ti'om the Pooling Agreement ~q of June 30, 2006 (the "Notice"). The Pooling Agreement provides for withdrawal upon 6 months notice and further provides that: -Withdrawal by any party from the Pooling Agreement shall not terminate the Pooling Agreement as to the remaining signatories. -Withdrawal from the Pooling Agreement shall not relieve the withdrawing party of any "legally binding obligation" arising prior to the effective datc of such withdrawal. -A withdrawing party shall not be obligated to compensate the rc-maining parties fbr loss of any benefits that would have accrued if the withdrawing party had continued its participation; nor are the remaining parties obligated to compensate 705017.1 Joint Defense & Confidentiality Agreement Regarding Withdrawal of City of Roseville fi'om thc Northern California Power Agency Pooling Agreement Privileged and Confidential thc withdrawing party for any benefits that accrue to the remaining parties because of the withdrawal. -Reallocation of the costs and benefits of continuing in thc Pool after a party has withdrawn shall not give rise to any claim against a party by the remaining parties; nor shall any of the remaining parties be obligated to compensate the withdrawing party fbr any benefits that accrue to thc remaining parties because of such a reallocation of costs and benefits." The Pooling Agreement does not define what is meant by the tc-nx~ "legally binding obligations," but does provide, in Article 22, that disputes among the parties to the Pooling Agreement will be resolved by referral to the Pooling Committee, or if the dispute remains unresolved by the Pooling Committee, by referral to thc NCPA Commission, or if the dispute rc~'nains unresolved by the NCPA Commission, by referral to binding arbitration. D. Withdrawal by Roseville will require that the Parties determine certain technical issues with respect to scheduling and dispatch. Withdrawal will also require that. the Parties negotiate with Roseville with respect to those costs that axe "legally binding obligations" and hence must be shared by Roscvillc irrespective of its withdrawal from the Pooling Agreement, and which costs may be avoided by Roseville upon its withdrawal and thus must be ,allocated to the remaining Pool Participants or even to the non-Participants. In general, it is in the best interests of' the Parties that more costs be determined to be "legally binding obligations" such that fewer costs arc allocated among them. The process o£ negotiating thc withdrawal terms and the potential mediation or arbitration regarding any disputes that may arise are rcl'crrcd to in this Agreement as "the Potential Litigation." E. While not Pool Participants, thc non-Participants have a vital intc'rcst parallel to that ot'the Pool Participants in that they either utilize the scheduling and load dispatch facilities of NCPA or are potentially subject to reallocation of costs currently borne by the Pool Participants. F. WHEREAS, the Parti~ and their attorneys will create, have created, and otherwise possess certain documents, materials, and infbnnation relating to the Potential l,itigation; and G. WHEREAS, to ~hcilitate the Parties' response to the Potential Litigation and to provide fi~r a limited common defense (as discussed further in Paragraph 2), the Parties wish to provide each other and their respective attorneys with access to certain documents, materials, and information relating to the Potential Litigation; and H. WHEREAS, the Parties wish to set forth the terms and conditions under which thc Parties and their respective attorneys will have access to such documents, materials, and information, which include confidential intbrmation, attorney-client privilegerl communications, 795917-1 Joint Defense & Confidentiality Agreement Regarding Withdrawal ot' City of Roseville fi'om the Northern California Power Agency Pooling Agreement Privileged and Confidential and attorney work product, in a manner that preserves the confidentiality and protected status, as the case may be, of the documents, materials, and information; and I. WHEREAS, to that end, the parties desire that all information and communications that are privileged or protected as to any of the Parties, or their attorneys or consultants, shall remain privileged or protected notwithstanding thc communications of such information or communications to other Parties, or their attorneys or consultants, in accordance with all applicable privileges, including without limitation, Section 6254 (k) of the Califbmia Government Code ,and Section 912(d) of the Calitbmia Evidence Code, as construed in, and in accor&mce with the joint and common defense concepts articulat~xl in, cases such as Raytheon Co. v. Sttperior Court, 208 Cal.App.3d 683 (19891), STI Outdoor v. &~perior Court (Elle. r Media Co.) 91 Cai. App. 4tt' $34. (2001). Ox)' Resources v Superior Court. 115 CaL4pp. 4th 87 (2003). llunydcc v. United States, 355 F.2d 183 (9th Cir. 1965); Continental Oil Co. v. United States, 330 F.2d 347 (gth Cir. 1964), and other cases decided regarding communication of information to furthcr thc interest of the clicmt and communication of in~>rmation that is neces~ry to thc accomplishment of the purpose tbr which the Parties herein have retained txmnscl in the Litigation. NOW, THEREFORE, in light of the foregoing, the Parties, by and through their attorneys, agree as tbllows: 1. The foregoing Recitals are hereby incorporated by reference. 2. The Parties agree to cooperate with each other in the defense of the Potential Litigation, but no Party shall be obligated to take or not take any particular action or position in the Potential IJtigmion. The decision to take or not take any particular action or position in thc Litigation shall bc left to the sole judgment and discretion of each Party. 3. The Parties affirm that their joint defense effort, by virtue of its purpose, operation and usc, will involve the exchange and generation of in.tbnnation, documents and other material subject to the attorney-client, work product, joint defense and oflmr applicable privileges. 4. From time to time, the Parties may elect to disclose to each other such inlbrmation as each of th~n deems appropriate to further the joint detYnsc purposes of this Agreement. Such information may be disclosed to or transferred among the Parties, or their attorneys or consultants, orally or in writing or by any other appropriate metros of communication. Howew'r, any such communications shall be entirely voluntary; i.e., nothing in this Agreement shall require any Party, its cx~unsel, or its consultants to share any privileged inlbrmation or documentation, or attorney work product, with any other Party, or its attorneys or consultants. 5. The disclosure of information among the Parties pursuant to this Agreement shall not bc deemed to be: (a) a "subject matter" waiver of any attorney-client, work product or 705017- ! Joint Defense & Confidentiality Agreement Regarding Withdrawal of City ot'Roseville from the Northern California Power Agency Pooling Agreement Privileged and Confidential othccwisc applicable privilege with respect to any intbrmation that is not specifically disclosed to the other Parties by the disclosing Party; or (b) any ~vaiver of any attorney-client, work product or other privilege as to any pcr~n who is not a party to this Agreement at the time of such disclosure. 6. To ensure the protection of the mental impressions, conclusions, opinions, legal theories and other work product of counsel and of experts retained to assist (jointly or individually) the Parties or their respective counsel, as well as client confidences and other privileged information, the Parties agree that all intbrmation that may hereafter be received from one :mother in connection with their joint defense effbrt ("Shared Information") shall be subject to the terms of this Agreement. 7. Subject to Paragraphs 8 -and 9 set ~brth below, the Panics agree that all Shared Information shall be handlext in confidence and protected from disclosure to the maximum degroe pemaitted by law, shall be used only in connection with the joint detL~nsc purposes of this Agreement and shall not be disclosed in any way to any person or entity (including, but not limited to, all governmental agencies) other than: (a) the Parties, and the attorneys tbr each of thcnn, including their a.,;sociated attorneys; (b) any consultants who are, or will be, assisting the Parties or their respective counsel in th. is joint defense eflbrt; and (c) such other person or persons as the l'arties mutually consent to in writing prior to the proposed disclosure. Each Party shall take all necessary and appropriate measures to assure that any person who, pursuant to this Paragraph 7, is granted access to any Shared Intbrmation or who participates in work on joint projects or who otherwise assists any counsel in connection with the performance of this Agreement is: (1) familiar with the terms of this Agreement; (2) agrees to co'mply with the terms of this Agreement; and (3) agrees that the confidentiality obligations under this Agreement will continue to remain in effect in the event that such person terminates hi~qher relationship with thc respective Party. 8. If Shared Intbrmation becomes the subject of an administrative or judicial order purporting to require disclosure of such information by a Party to this Agru~ment, that Party must notify thc Party that generated the intbrmafion in order to give the Party an opportunity to protect the confi&natiality of the information prior to its disclosure. By such notification, that Party satisfies its confidentiality obligations hereunder. 9. Notwithstanding anything to the contrary in this Agreement, the provisions of Paragraphs 7 and 8 shall not apply to (a) Shared information that is now, or hereatter becomes, public inlbrmation without violation of this At0'eement, (b) Shared lntbrmation that would not have been subject to the attorney-client or work product privilege in the hands of the Party immc~diately prior to the disclosure of thc inlbrmation pursuant to this Agreement, or (c) a Party's usc of Shared Information that the Party itself generated or had in its possession prior to disclosing such information to the other Party pursuant to this Agreement. 795917-1 Joint l)efense & Confidentiality Agreement Regarding Withdrawal of City of Roseville from the Northern Calilbrnia Power Agency Pooling Agreement Privileged and ConJTdentlal l 0. Each Party agrees that Shared Intbrmation received f¥om any other Party to this Agrecmacnt shall be used only in connection with thc defense and/or settlement of the Potential Litigation and shall not be used Ibr any other purpose. 11. Neither the existence of this A~eement nor the exchange 0t'Shared Intbrmation pursuant to it shall be used by any Party as the basis of any claim that any counsel is disqualified from representing individuals, ca)rporations or other entities in other and different matters. 12. No part of this Agreement shall constitute or be interpreted or construed as an admission by the Pm'ties of any liability under any federal, state or local law, rule or regulation or that any of the Parties is in violation of, or has ever violated, any federal, state or local laws, rules or regulations. 13. This Agreement shall be binding on thc successors and assigns of the Parties. 1.4. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same agreement. 15. The Partic~ agree that a breacl~ of this Agret,.l'nent will cause irreparable harm .as to which no adequate remedy at law would exist. Therefore, the Parties agree that perfbrmanee of this Agreement may be specifically ordered, and a breach of this Agreement may be enjoined, but no other remedy is available to any Party. 16. lf,'my term, provision, covenant or condition of this Agreement is held by a court of competent juri~iction to be invalid, void or unenfbrceablc, the remainder of the Agreement shall remain in full '~brcc and effect. 17. The effective date of this Agreement shall be the date tirst stated above. 18. Any Party may withdraw from participation in this Agreement by providing the other Parties at least thirty-five (35) days written notice of the intention to withdraw. 19. This Agreement may be terminated by written memorandum or other document signed by all Parties. 20. Unanimous consent of the Parties to this Agreement shall be required in ord{,-r to waive thc joint defense privilege reflected by this Agreement, to expand the Parties to this Agreement, or to modify this Agreement. Any modification must be in writing and signed by the Parties to this Agreement. 21. Thc obligations of all Parties under this Agreement (including, without limitation, any withdrawing Party) shall survive the withdrawal o1' any P,"a'ty and the termination of this Agreement and shall remain in tull lbrcc and effect m~til the Potential Litigation is terminated by 795917-1 ~ Joint Defense & Confidentiality Agreement Regarding Withdrawal of City of Roseville l¥om the Northern California Power Agency Pooling Agreement Privilel,,ed and Confidential final judgment or other settlcnnent. Despite the foregoing and except as provided in Paragraph 9, Shared Inlbrmation is not to be disclosed by any Party, except (a).as may be ordered by a c~,un of competent jurisdiction, or (b) as required by law. If such disclosure of Shared Intbnnation is ordered or required, such disclosure shall be only to the extent minimally necessary to comply with such order or law and shall not be made in any event until notice of the proposed disclosure is given, pursuant to Paragraph 7, to the Party which gcmeratcd the Shared Infbrmation so that said Party may take any steps it dc~us necessary to prevent, such disclosure. At the time of thc termination of this Agreement, all copies of Shared lnfk)rmation shall be returned to the Party that generated thc Shared Information. 22. The Parties to this Agreement are not adversari~ and do not anticipate becoming adversaries in connection With the Potential Litigation. However, in the event that any Party asserts any claim against any other Party arising from thc subject matter of thc Potential Litigation, the Party asserting the claim shall be required to withdraw t¥om participation in this Agrecanc'nt but shall not be excused from the obligations set tbrth herein. 23. The Parties agree that this Agreement constitutes the entire agreement between the Parties with respect to thc subject matter of this Ago'cement (joint delL-nsc of the Potential Litigation). 24. The Parties agree that nothing contained herein or in any document executed in connection herewith shall be construed as making the Parties .joint venturers or partners with each other. IN WITNESS WHEREOF, the Parties, by and through their attorneys, have caused this Agreement to be duly executed below. NORTHERN CALIFORNIA POWER AGENCY, a joint powers agency CITY OF ALAMEDA, a municipal corl~ration By: By: Its: General Counsel Its: City Attorney BAY AREA RAPID TRANSIT DISTRICT. a special district CITY OF BIGGS, a municipal cortx)ration By: By: Its: General Counsel Its: City Attorney 795917-1 · ~. : -84 9£: 1:'[ 911-l~'l;-EO q£E~ EOt, ~-0~- : ~oa j Joint Defense & Confidentiality Agreement Regarding Withdrawal of City of Roseville from the Northern California Power Agency Pooling Agreement Privileged and Confidential CITY OF GRIDLEY, a municipal corporation CITY OF HEALDSB[JRG, a municipal corporation By: By: Its: Cily Attorney Its: City Attorney CITY ()F LODI CITY OF LOMPOC By: ... By: Its: City Attorney CITY OF PALO ALTO Its' City Attorney PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE, a rural electric cooperative By: By: Its: City Attorney CITY OF OAKLAN D, a municipal corporation acting by and through the POR'I' OF ()AKLAND Its: General Counsel CITY OF REDDING, a municipal corporation By: Its: General Counsel CITY OF SANTA CLARA By: Its: City Attorney TRUCKEE-DONNER PUBLIC UTILITY DISTRICT, a public utility By: .......... Its: City Attorney TURLOC. K IRRIGATION DISTRICT, an irrigation district By: ........ Its: Gene'ral Counsel CITY OF UKIAH, a municipal corporation By: Its: General C. ounsel By: Its: City Attorney 795917-1