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2006-04-19 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 April 19, 2006 4:30 p.m. 4:30 pm - 5:30 pm: Ukiah Redevelopment Agency and Low & Moderate Income Housinq Advisorv Committee Joint Meetin_~ Regarding Role and ResPonsibility of the Committee, Membership, & 20% Housing Setaside Allocation Process 6:00 PM 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATIONS a. Proclamation: Workers Memorial Day in the City of Ukiah b. Proclamation: TV- Turn Off Week m PETITIONS AND COMMUNICATIONS a. Petition and Communication from IJkiah Community Center Board of Directors 5. APPROVAL OF MINUTES None. So m 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. Co e, 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 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 March 2006 b. Report of Resolution of the Commission of the Northern California Power Agency (NCPA) Approving Expenditure of Funds to Complete the Geothermal Unit 3 Scheduled Five-Year Overhaul; Authorize City Manager to Pay City's Proportionate Share of Overhaul from NCPA General Operating Reserve in an Amount of $30,318 (Revised) Adoption of Resolution Approving Records Destruction (Finance Dept.) Resource 500 - Aggregate with Other Participants in Order to Have a Vote on the Development Committee Award of Bid to Watthour Engineering Company, Inc. for the Purchase of a Model 2350 Electric Meter Test Board in the Amount of $32,247.25 Approval of Letter to FEMA Appeals Officer on Behalf of Bernard Kent Porter Seeking Reimbursement for Funds Expended on Emergency Repairs for Oak Knoll Road - McCowen g. Adoption of Resolution Waiving the 60-Day Notification Requirement for Establishing a County Facility in the City (327 North State Street), Pursuant to Government Code 25351 h. Report to City Council Regarding the Purchase of Native Turf Grass from Emerisa Gardens for Observatory Park Development in the Amount of $5,791.56 i. Award of Contract to Source California Energy Services to Provide Engineering Services for the Lake Mendocino Hydroelectric Power Plant j. Authorize City Manager to Sign the New AT&T Internet Service Contract for the City's Primary Internet Circuit for the City's Primary Internet Circuit 8. 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. J PUBLIC HEARING (6:15 P.M.) a. Consideration and Possible Extension of Urgency Ordinance Imposing Moratorium on New Marijuana Dispensaries 10. UNFINISHED BUSINESS a. Continued Discussion and Consideration of an Ordinance. Regarding Campaign Reform - Baldwin, Rodin b. Receive Status Report Concerning Sign Ordinance Enforcement Activities c. Reject General Electric's Bid to Refurbish the Flood Damaged Hydroelectric Plant Equipment; Adopt Resolution Declaring Open Market Procurement More Economical; and Authorize Staff to Procure Contractor to Complete Work Scope Outlined in Request for Bids by Open Market Procurement 11. NEW BUSINESS a. Presentation of Palace Hotel Appraisal by Dana Burwell, Certified General Real Estate Appraiser b. Discussion and Consideration of Video Cameras in City Parks to Assist with Crime Prevention c. Approval of the City of Ukiah Resource Adequacy Program d. Adoption of Resolution Approving Memorandum of Understanding for Electric Employee Bargaining Unit (IBEW Local 1245) e. Adoption of Resolution Approving Memorandum of Understanding for Fire Employee Bargaining Unit 12. COUNCIL REPORTS 13. CITY MANAGER/CITY CLERK REPORTS 14.CLOSED SESSION a. Employee-Negotiations: Electric and Fire Units Negotiator: Candace Horsley The City of Ukiah complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. b. Public Employee Performance Evaluation (Gov't Code Section 54957) Title: City Manager' c. Government Code §54956.8 - Conference with Real Property Ne.qotiator Property: Low Gap Road Property Owner: City of Ukiah Negotiator: Candace Horsley Under Negotiation: Price and Terms of Payment 15. 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 14 day of April, 2006. Marie Ulvila, City Clerk 1TEM NO: Joint Workshop- 4:30 p.m. DATE: April 19, 2006 UKZAH REDEVELOPMENT AGENCY AGENDA SUMMARY REPORT SUB3ECT: DISCUSSTON WITH LOW AND MODERATE INCOME HOUSTNG ADVISORY COMMITTEE REGARDING ZTS MEMBERSHIP AND THE 20 PERCENT HOUSING SET-A-SIDE FUND ALLOCATION PROGRAM SUHMARY: The City Redevelopment Agency (RDA) is required by State law to set-a-side 20% of the property tax increment from the redevelopment area into a Iow and moderate income housing fund. These funds are allocated to local Iow and moderate income housing projects. With the assistance of the Low and Moderate Income Housing Advisory Committee, the RDA has historically made spring and fall allocations, and over the past fifteen years since its inception, it has allocated nearly three million dollars to local Iow and moderate income housing projects. Recently, the RDA has decided to accumulate the funds for a possible large project in or near the downtown. (continued on page 2) RECOMMENDED AC11:ON: 1) Discuss the 20 percent housing set-a-side fund allocation program and consider establishing a 50% saving - 50% allocation approach that would provide for a growing housing fund and allocations to local affordable housing projects; and 2) Discuss the membership of the Committee and provide direction to Staff. ALTERNA11~E RDA POLZCY OPll:ON: Do not conduct the discussions and provide direction to Staff. Group Advised: Low and Moderate Income Housing Advisory Committee Requested by: Low and Moderate Income Housing Advisory Committee Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: 1. 2. 3. 4. . , LMTHAC Membership List Resolution 90-13 establishing the LMIHAC Resolution 96-5 re-establishing the LMTHAC Resolution 92-2 approving the Iow and moderate income housing set-a-side allocation program Resolution 97-4 approving a revised Iow and moderate income housing set-a- side allocation program History of RDA housing allocations Candace Horsley, City Mana r The Committee has expressed a desire to discuss this modification to the allocation process with the RDA, and define a way to reserve funds for a large downtown project and continue with the allocation program. The RDA also needs to discuss the Committee membership because it has changed since it was re- established by Resolution in 1996. The purpose of this Agenda Item is to facilitate these discussions. THE 20% HOUS]~NG SET-A-S~[DE FUNDS: The 20% set-a-side funds are divided into several accounts, with only 65% being available for discretionary disbursement by the Agency. 35% is assigned to specific funds for the County of Mendocino (25%) and the Mendocino/Lake Community College District (:10%). These designations are the results of agreements between the Agency and the entities entered into in 1989. The current fund balances in the City, County and College accounts are: ACCOUNT FUND BALANCE Ukiah RDA Special Projects Housing Fund Mendocino County Share Mendocino College Share $949t614.77 $69,773.96 $454,253,81 The amount deposited into the Special Projects Housing Fund in 2005-2006 was approximately $260,000. The RDA cannot save its share of the housing fund indefinitely. ]:t can save it up to an amount equal to the total amount deposited in the Housing Fund during the preceding four years. The RDA is required to either spend or encumber the excess surplus funds or transfer the funds to the local housing authority (Community Development Commission) within one year from the date the funds become excess surplus OR spend or encumber the excess surplus funds within two additional years. YEAR 2002-2003 2003-2004 2004-2005 2005-2006 TOTAL The current Fund Balance alter allocations, administrative costs, and the required allocations to Mendocino College and Mendocino County AMOUNT OF TAX ]:NCREMENT DEPOSTI'ED :INTO HOUS~'NG FUND $622,801 $599,283 $603,760 $661,000 $2,486,844 $949,614.77 The total amount the RDA can reserve in its special housing project fund is $2,486,844. COMMI'rrEE CONCERNS: The Low and Moderate Income Housing Advisory Committee have discussed the concept of suspending the allocation process to allow the RDA to accumulate funds for a large affordable housing project in the downtown. The Committee understands that the RDA has indicated that it will still allocate some funds to local organizations, but is unsure of the amount of funds that may be available. ALTERNA'I'WES: One Alternative would be to consider establishing a 50% saving - 50% allocation approach that would save funds for a large downtown project and provide allocations to local affordable housing projects. 2. Another alternative would be to adjust the percentages to provide more or less funds into the Special Housing Projects reserve fund. 3. A third alternative would be to reserve all the funds until the balance reaches the maximum excess surplus limits. COI~II~IZ'rl'EE I~IEI~IBERSH]:P: In 1996, the RDA adopted a Resolution naming specific individuals from various community groups and organizations as Committee members. Since that time, designated Committee members have been unofficially, replaced by other representatives of the groups and organizations. Attachment No. ! lists the current "confirmed" and "unconfirmed" members of the Committee. Staff recommends that the RDA review the Committee membership and direct Staff to return with a revised Resolution establishing organizational Committee membership and deleting a listing of specific individuals. RECOI41~IENDA'I1:ON: Staff has the following recommendations: Discuss the RDA vision for a large downtown affordable housing project, and consider establishing a 50% saving - 50% allocation approach that would provide for a growing housing fund and allocations to local affordable housing projects. The formal application, review and scoring process, as well as the method of application selection by the RDA would remain unchanged. 2. Discuss the membership of the Committee and direct Staffto return with a revised resolution establishing organizational membership rather than a listing of specific individuals. Ukiah Redevelopment Agency Attachment # LOW AND MODERATE INCOME HOUSING ADVISORY COMMITTEE CONFIRMED MEMBERS Gary Mirata, Chairman Banking Member mirat@pacbell.net 462-4550 Tom Kesey Mendocino College tkesey@mendocino.cc.ca.us 468-3105 Robert Clark NCBE Member clarkbbt@pacific.net 485-0806 Mark Rohloff Ford Street Project markro@sbcglobal.net 462-1934 Ext 101 INTERESTED MEMBERSHIP Kathleen Stone MC Department of Social Services stonek~mcdss.org 463-7968 Anne Caviglia CA Dev Disabilities Board anneone@pacific.net 463-4700 UNCONFIRMED MEMBERS Karl Hackett Ukiah Community Center ucced@pacific.net 462-0654 Patti Bruder North Coast Opportunities pbruder@ncoinc.org 462-8945 Duane Hill RCHDC dhill@rchdc.org Lisa Hillegas Legal Services of Northern California Ihillegas@lsnc.net 462-4117 Ext 302 Todd Crabtree Comm Dev Commission todd@cdchousing.org 463-5462 Steve Berekman Director of Fiscal Services Ukiah Unified School District sberekman@uusd.net 463-5201 VACANT POSTI/ON: Low and Moderate Income Renter 1 5 6 ? 8 9 10 11 12 14: 15 16 1'/ 18 19 9.O 21 9.2 23 2~ ~5 ~6 Attachment # 2..--' URA RESOL[n~ON NO. 90-13 RESOLUTION OF THE UKIAH REDEVELO~ AGENCY CREATING A T_~ AND MODERATE ~ ADVISORY C~TTEE WHEREAS, the Ukiah Redevelo~x~ent Agency (the "Agency") has adopted a Redevel~nt Plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project (the "Project") and the Agency will receive property tax increment generated in the Project Area; and WHEREAS,, the Agency proposes to utilize the 20% tax increment allocation as specified by the California ~ity Redevelopment Law for low and moderate income housing to meet project-wide goals and objectives; and WHEREAS, the Agency desires con, unity-wide input into the generation of the low and moderate incc~e housing goals and objectives and evaluation of specific housing projects; FOLIX~S: SECTION 1. There is hereby created a Low and Moderate Inccme Housing Advisory Cc~nittee (the "Cc~nittee"). SS~2TION 2. The Committee shall consist of nine members representing: Ford Street Guest House, Mendocino ~ity College District, North Coast Builders Exchange, North Coast Opportunities, ~ Legal Assistance, Rural ~ities Housing Develo~m~ent Corporation, Ukiah ~ity Center, Ukiah Unified School District, ~ity Development ~ssion, and low and moderate incc~e renter s. Individual representative s sha 11 be reccm~ended by the respective organization and appointed by the Agency. Where there is not a specific organization identified, the Agency shall select and appoint a representative of those interests through the 1 5 6 ? 9 10 11 12 13 Il 15 16 17 19 20 21 22 25 standard City appointment process. The Agency Executive Director or his/her designee shall provide staff assistance and support to the Committee. SECTION 3. The Committee shall review existing housing needs assessments and recommend policies regarding housing allocations and utilization of the housing funds to the Agency. The Committee shall review specific housing proposals 'for compliance with the adopted goals, objectives, and policies of the Agency and compliance with State law relative to utilization of the "20%" housing funds. SECTION 4. The Committee shall exist until June 30, 1995, unless, prior to that date, specific action is taken by the Redevelopment Agency to extend its effectiveness. SECTION 5. Officers of the Committee, meeting procedures, and rules of Committee operation shall be established at the first Committee meeting. Unexcused absences of more than 25% of the meetings in any one year, or for three or more consecutive meetings, shall constitute termination of that member from the Committee. PASSED AND ADOPTED this 7th day of following roll call vote: AYES: NOES: March · 1990· by the Commissioners Wattenburger, Shoemaker, Schneiter, Hickey and Chairman Henderson None ABSENT: None (Passed as amended by Ukiah Redevelopment Agenc_,y motion on A~il 4, 1990.)~/ ) I~¥OR i ARY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Affachment # URARESOLUTION NO. 96-5 RESOLUTION OF THE UKIAH REDEVELOPMENT AGENCY RE-ESTABLISHING THE LOW AND MODERATE INCOME HOUSING ADVISORY COMMITTEE WHEREAS, by Resolution No. 90-13, the Ukiah Redevelopment Agency established the Low and Moderate Income Housing Advisory Committee to review existing housing needs assessments; recommend policies regarding housing allocations and utilization of the housing funds to the Agency; and evaluate specific housing proposals for compliance with adopted Agency goals, objectives, and policies, as well as State law relative to utilization of the "20%" housing funds; and WHEREAS, pursuant to Resolution 90-13, the Committee terminated on June 30, 1995; and WHEREAS, the Committee has provided a valuable service to the Agency relative to its Housing Program; and WHEREAS, the Redevelopment Agency desires to continue to gain community-wide input into the generation of the iow and moderate income housing goals and objectives and evaluation of specific housing projects. NOW, THEREFORE, BE IT RESOLVED that: Section 1. The Low and Moderate Income Housing Advisory Committee is re-established to serve in the same capacity as originally defined. Section 2. The Committee shall serve until terminated by action of the Redevelopment Agency. Section 3. The following individuals are appointed members of the Low and Moderate Income Housing Advisory Committee, to serve until the Committee is terminated or until an individual is 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 replaced based upon the recommendation of the respective organization and specific action by the Redevelopment Agency: Banking/Lending/Financial Institutions - Gary Mirata Community Development Commission - Roy Tindle Ford Street Project - Mark Rohloff Low and Moderate Income Renters - Gertrude Warner Mendocino Community College - Thomas Kesey North Coast Builders Exchange - Robert Clark North Coast Opportunities - Ernie Dickens Redwood Legal Assistance - Anne Molgaard Rural Communities Housing Development Corp. - Bill Howland Ukiah Community Center - Judy Judd Ukiah Unified School District - Diane Foster PA~SED AND ADOPTED this 20th day of December, 1995 by the following vote: AYES- Commissioners Mastin, Malone, Wattenburger, Shoemaker, and Chairman Schneiter. NOES: None. ABSENT: None. ABSTAIN: None. ATTEST. " ten Yoast, ~nt Secretary 4: Res: LowMod. 9 5 URA PJ~SOLIPlION NO. ~:2~.2~.''!: Attachment # RESOLUTION OF THE UKIAH REDEVELOPMENT AGENCY APPROVING LOW AND MODERATE.INCOME HOUSING SETASIDE ALLOCATION PROGRAM 4 5 6 ? 10 14 15 1G 19 WHEREAS, the Ukiah ..Redevelopment Agency adopted its Redevelopment Plan in November, 1989; and WHEREAS, the Plan included the provision of iow and moderate income · ~. ~ -.' · ~ ~.- .~ ~- k - '....'; ,!' '.:. ~ :.-...~% · ~ _ .housing-oppori~nities~ ~nd -. '- . ..... WHEREAS, the Redevelopment Agency is mandated by State statutes to expend 20Z of i~'s' tax increment revenues for low and moderate income .. housing (housing setasi.de); and '". .. WHEREAS, the Low and Moderate Income Housing Advisory Committee, appointed by the Agency, has recommended a program to meet the requirements for redevelopment funding of low and moderate income housing; and WHEREAS, the Redevelopment Agency is committed to utilizing the housing setaside"funds"'in ~ihe most effective and comprehensive manner to " ' '~' " ' ~ · ; ....'i. ' ." ..2..t' ' ..i: L ~-'.'~ ~ · · - .~ .: , ' ...... -address the -.issue of low and moderate income housing within this community. 20 21 22 23 NOW, THEREFORE, BE IT RESOLVED that the Agency aPproves and commits · to implement the Low and Moderate Income Housing Setaside Allocation Program Contained in Exhibit A, attached hereto and incorporated herein. PASSED AND ADOPTED this 18 daY of Decembe~ 1991, by the following vote: AYES: Commissioners McMichael, Wattenburger, Shoemaker, Schneiter NONE: None and Mayor henderson ABSENT: None ABSTAIN: None ...... · · ~lleen B. ltenderson, Chairman UKIA}! REDEVELOPMENT AGENC~ LOW AND MODERATE INCOME HOUSING SETASIDE ALLOCATION PROGRA~I OCTOBER 9, 1991 -INTRODUCTION The Ukiah Redevelopment Agency was created in 1975, but the Redevelopment Plan was not adopted until 1989. In addressing the housing' issue as part of the adoption process, the ·Agency det'ermined that a specific program could not be formalized at that time, but community input to develop a program was necessary. .'rile Agency'd-id~-~ppoint.-.a- ten,member ·body .to recommeud to the Agency a strategy .for expendi_ture of.'tl~e~mandatory 20% h0u. sing setaside funds. The Low .and Moderate Income Housing.Advisory.C°mmittee has met for more than a ......... :---~y~r--~nd is- recommending ~--the'i.-f~iiowing '~o._implement _.the Re~dev.e. lopment Agency's Low and Moderate Income Housing requirements. The membership of the Committee includes Cheryl Baker,- Martin' Bradley', RObert - Clark, Inge Dietrich, Diane Foster, Bill.Howland, Tom'Kesey, ,.'Michael Pucci, Mark Rohloff, and Gertrude Warner. PROGRAM PURPOSE AND INTENT Section '33334.2(a) of the California Community Redevelopment Law specifies that 20% of all tax revenue received by. a-Redevelopment Agency .is to. be used to increase, improve and preserve the community's supply of low and moderate income housing. The program presented here addresses the use of these funds during the Agency's first three to five years of activities. A reevaluation after this initial period will be necessary since the annual tax increment amount for housing Will then be.substantial, long-term bonded indebtedness may be appropriate, the General Plan/GroWth Management project will have documented specific housing needs and strategies, individual available propertien will have been identified, and capabilities of tile redevelopment process will be better understood. 'The program is to ensure flexibility in tile type of housing projects proposed, while providing some objective criteria for allocation evaluation. .Priority is given to actual construction, while related aspects of the overall housing issue are aCcommodated. Commitment by project proponents is stressed, with dol_lar matches and fund leveraging key elements in some of the program categories. ELIGIBLE PROJECTS The following activities are considered eligible for receipt of housing funds. The different categories refer to the 80%/20% split allocation for "development" and "pre-development" program aspects. Development Activities (80%) Pre-Development Activities (20%) Land acquisitions/write downs On-site development costs Off-site development costs Development loans Bt~lJ. dl~ acquisitions Direct tenant/owner subsidies Waiver/deferment of fees Architectural upgrades Neighborhood improvement Pre-development costs Program operation Administrative costs Physical structure m~i~tenance Attachment # UPA RESOLUTION NO. 97-4 RESOLUTION OF THE UKIAH REDEVELOPMENT AGENCY APPROVING THE REVISED LOW AND MODERATE INCOME HOUSING SETASIDE ALLOCATION PROGRAM WHEREAS, the Redevelopment Agency is mandated by State statutes to expend 20% of its tax increment revenues for Iow and moderate income housing; and WHEREAS, on December 18, 1991, by Resolution No. 92-2, the Ukiah Redevelopment Agency approved and committed to implement the initial Low and Moderate Income Housing Setaside Allocation Program; and WHEREAS, the Low and Moderate Income Housing-Advisory Committee, appointed by the Agency, has recommended a revised program to meet the requirements for redevelopment funding of Iow and moderate income housing; and WHEREAS, the Ukiah Redevelopment Agency is committed to utilizing the housing setaside funds in the most effective and comprehensive manner to address the issue of Iow and moderate income housing within this community. NOW, THEREFORE, BE IT RESOLVED, that the Agency approves the revised Low and Moderate Income Housing Setaside Allocation Program attached as Exhibit A and incorporated herein. PASSED AND ADOPTED this 19th day of February, 1997 by the following roll call vote: AYES: Commissioners ChaVez, Ashiku, Kelly, Mastin, and Chairman Malone NOES: .None ABSENT: None ABSTAIN- None ATTEST: 'Karen Yoast, Sec~ mfh:resord / URA974 UKIAH REDEVELOPMENT AGENCY LOW AND MODERATE INCOME HOUSING SETASIDE ALLOCATION PROGRAM Though established in 1975, the Ukiah Redevelopment Agency adopted its Plan. in December 1989 and began receiving tax increment financing in 1990. As required by State statute, 20% of the gross tax increment revenue is to be utilized to provide for Iow and moderate income housing. A plan is necessary to identify the implementation measures to meet this "setaside" requirement. The total "20% Housing Setaside" is actually divided into several accounts, with only 65% being available for discretionary disbursement by the Agency. Table 1 illustrates the distribution of these revenues. 35% of the revenue is assigned to specific funds for the County of Mendocino (25%) and Mendocino/Lake Community College District (10%). These designations are the results of agreements between the Agency and the entities entered into in 1989 to mitigate potential financial impacts of redevelopment. Though the funds must be used for targeted housing within the City, the County and District are the lead agencies relative to their expenditure. The Agency must review and approve the requested uses of these funds to insure the projects meet California statutes. The remaining funds are the primary topic of this Plan as they represent the true monies available to the Agency to use as deemed necessary and appropriate to meet local Iow and moderate income housing goals. The 1989 Redevelopment Plan prescribed the creation of a Low and Moderate Income Housing Advisory Committee to recommend an achieveable program. This Committee was established in 1990 with amendments to its composition approved by the Redevelopment Agency over the past several years. The program recommended by the Committee and approved by the Agency consisted of an annual competition among housing providers and consumers for the allocation. Since 1990 over $268,000 has been dispersed to various organizations producing or maintaining housing for the targeted population of Iow and moderate income persons. The allocations to date, as well as a tabulation of the annual account balances, are presented in Table 2. The original intent of the Redevelopment Agency was to continue the annual program for at least five years and reevaluate it when setaside resources might be significant enough to define a new direction for housing production. In early 1996, the Committee commenced a review of the current practices and available funding to determine the most appropriate program at this time. This Plan for use of the Redevelopment Agency's discretionary funds focuses on minimizing administrative costs, maintaining flexibility in addreSsing the needs of housing providers, and maximizing relatively limited resources. (JIt, lAl I I It-I ~I:VL:I_L~I.'Ivll .I,ll ,'\~,.~I..I,,IGY -', ., -.~,NNUAL RFVENUE ^LLOC, A'rlON = 1OD'.' Disiribulio~ Based on APl')licable I-iedeveloi)~nenl Law Section 3334.2(a) California Con~nuni~y 20% lor low 80% & moderaio [or olhor URDA income housing Projecls i I I I I Redevelopmen~ Law Dislributiol~ .Based on Existing Agreemenls between UFIDA and other agencies. i 0% 25% 65% Monde. Mondocir URDA College Low & Moderale Housing I-iousin( Income Housing Fund Allocalion Ft.q-xJ Distribuliol~ based on AIIoc;lli()ll Proce,';s [)rol)osr:d by Iilo Ui ~UA Low a(ld Mudr;rala Income Housing Committee. For consideralion by II~e URDA. Dislribulion based on AIIocaliol~ Process proposed by Ilio URDA Low and Modorale Incorhe Housing Commitlee. For consideration by the URDA. Allocation J J Emolgency 130% ,, 20% Pre- Dovoioi)monl TABLE 1 The cornerstone of the Plan is a semiannual allocation proce's'§ based upon competitive applications for specific housing projects. This is similar to the past program with the addition of a second funding cycle per year. Allocation of funds is made by the Agency with recommendations from the Low and Moderate Income Housing Advisory Committee. Applications will be accepted by the Agency in the spring and fall of each year. The funding level for this program will be 90% of the Agency's discretionary monies after staffing costs have been accounted for. The remaining 10% will be apportioned for "emergency" distributions. SEMIANNUAL COMPETITION The allocation program is to ensure flexibility in the type of housing projects proposed, while providing some objective criteria for allocation evaluation. Priority is given to actual construction, while related aspects of the overall housing issue are accommodated. Commitment by project proponents is stressed, with dollar matches and fund leveraging key elements in some of the program categories. The project should be completed within one year of receipt of the funds. Eligible aCtivities for the semiannual competition are divided into two categories with an 80/20 percent split of the available funds. The categories and related activities are: Housing Activities (80%) Pre-development Activities (20%). Land acquisitions/write downs On-site development Off-site development Development loans Building acquisitions Direct tenant/owner subsidies Payment of development fees Architectural upgrades Neighborhood improvements Rehabilitation -Physical Structure Maintenance Administrative Costs Final architectural & engineering plans and specifications PhaSe II Environmental Analysis Facility operations Pre-development costs -Preliminary drawings -Engineering studies -Environmental review-Phase I -Appraisals Administrative costs Seed money for specific projects Studies related to targeted housing Total annual allocations within the Pre-development category will not exceed $50,000. The requests will be specifically examined and judged in light of seven evaluation criteria. Each proposal Will receive a numerical value based upon points reflecting the priority within each criterion. The Agency's allocation shall reflect the respective value of the projects with the highest point total representing the top priority for funding. In those cases where a total of five or fewer points separate projects, th~ Agency may determine funding based upon other factors relating to. the proposals including:iarget population, project compatibility with the neighborhood within which it will be located, and experience and expertise of the applicant. Eligible applicants for this program include any organization or individual who will provide housing for low and moderate income persons. The applicant must be capable of carrying out the proposed project. . The evaluation criteria and internal priorities (as defined by points) for each are: Type of Occupancy 1. Rental- 3 points 2. Homeownership- 2 points Type of Project/Program 1. New construction - 5 points 2. Rental subsidy for existing units - 2 points 3. Rehabilitation of existing units - 2 points 4. Facility operation - 1 point Income Level (Percent of median County income as defined by HUD and HCD) 1. Very Iow (less than 50% of County median)- 15 points 2. Lower (50% to 80% of County median) - 10 points 3. Moderate (80% to 120% of County median) - 5 points .Project Retention in the Affordability Pool 1. 20+ years -6 points 2. 11+-20 years - 3 points 3. 11 years- 1 point Fund Leveraging.(Percent of funding from sources other than redevelopment) 1. 68%+- 5 points 2. 34% to 67% -, 3 points 3.. 1% to 33% - 1 point Repayment 1. Market rate loan -4 points 2. Low interest loan - 3 points 3. Deferred payment loan - 2 points 4. Grant- 1 point Length of Occupancy 1. Long-term housing - 9 points 2. Transitional (six months to two years, no first or last month's rent) - 7 points 3. Emergency housing (one night to six months) - 5 points EMERGENCY FUNDIN The ten percent allocation for "emergency" uses shall be implemented in the following manner: * The use of these monies must meet the standards established in the California State Statutes for the mandatory 20% Iow and moderate income housing redevelopment funds. * The beneficiaries of these monies must be Iow or very Iow income. * The need for the financial assistance must be "immediate", i.e. the money is required to eliminate or signifiCantly reduce the risk of homelessness (any situation in which an individual or family would not be able to live within a habitable housing unit) within 60 days of the request. * The project for which the funds are requested must be commenced within 30 days of receipt of funds. * Housing rehabilitation applicants must have site control over the subject housing unit and the work must be in compliance with current building codes and apply to a sound structure. Eligible applicants include owner occupied properties and non profit organizations. These funds may be allocated at any time of the year so long as there is cash available within the account. No funds will be disbursed in the event of a zero emergency fund account balance. Allocations for each individual project may not exceed 40%. of the current account balance. These funds will be considered grants, with no repayment required. Eligible projects include the projects and programs identified under the semiannual competition criteria, as well as housing vouchers, individual dwelling unit rehabilitation, supplies for housing rehabilitation, and utility shutoff prevention. Applicants shall have exhausted all other possible sources for funding for this project prior to applying for Emergency Funds of the Ukiah Redevelopment Agency. The total annual allocation will be authorized by the Redevelopment Agency with adoption of the budget. Authority to determine individual fund distribution shall be delegated by the Agency to a Subcommittee of the Low and MOderate Income Housing Advisory Committee. Applications for allocations will be accepted at any time, so long as there is a positive account balance, by the Redevelopment Agency Staff on forms approved by the Executive Director. AppliCations will be considered by the Subcommittee in a public meeting within two weeks of application receipt. Action by the Subcommittee will be to approve or deny the application and will be final. Disbursement of funds will be within 10 days of the Subcommittee's action, through the standard Accounts Payable procedure. mfh:housing L&MPL RDA ALLOCATIONS December 2004- March 2006 Attachment # RESOLUTION AND RECIPIENT AMOUNT PRO3ECT DATE · Resolution 2006-02 Mendocino County $171,500 RCHDC $149,000 off-sites .luly 20, 2005 Orchard & Clara Social Services $22,500 homeless assistance Resolution 2006-01 Mendocino College $6,857 College Court apartment July 20, 2005 repair Resolution 2006-04 Community $30,000 Pre-Dev: Public Safety December 21, 2005 Development Homeownership Commission Resolution 2006-06 Mendocino County $175,000 CDC - Public Safety .lanuary 18r 2006 Homeownership constr Resolution 2006-05 Mendocino County $20,000 CDC Flood Victim Assist 3anuary 18~ 2006 Mend°cino County balance on March 31, 2006:$69,773.96 Mendocino College balance on March 31, 2006:$454,253.81 Ukiah RDA balance on March 31, 2006:$949,614.77 UT O~IO00~ __~00~ ~O00n DIO0~O OOOi IOOO~IO]~OODO~ o · .............. ~ _-q .o _o ~ .(.0 .--q .o .c0 ~ .(.n _~ .00 _--, _o ~ .o .--, _o-) ~ .~n .o,', .(.n .-, ~_~ ~ ~ ~ ~ ~ ,,, o oo~oooooo~o~ooooooo°°°~°°°~°~°°°~°~°go!o°-'°~°°=°°~ o~0~ooooo0~ooo o°~© ~8 8! o°!°°~°~~°°°°°°°°°°°,~ o ooooo ooooooooo o~ o°g oo~oooooooooooooooo, § i°~°~ =--.ooooo~oo ~×=o~==oZ~°o<o ~ o ...... =.~ ~~o~'~oo :~ ~ ~ ~ ~ ~ o ooo o ~ o .............. ~ : _ ,, - oo 8~ ~ ooo -. ~'~' ~'~ o o __ o ~'~ ~'~'~' m- ~' m m m m ~~ m m · - 0 0 0 0 ~. ~ · ~ ~= ~K© ~ -~ -.~ ,= _. ~ ~ ~ --' ~ ~ ~ ~= ~=~ ~=:~ =-- aaa ~8 a r,, 0 0 z oTM z~zo~ 0 ..q o PROCLAMATION WHEREAS, every year many workers across America are injured or disabled by workplace injuries and occupational disease; and WHEREAS, strong safety and health protections, high employment standards, and the elimination of perilous conditions should be guiding principles for each 'employer and employee; and WHEREAS, the City of Ukiah strives to provide a safe work environment for its employees and has initiated many programs and procedures to reduce workplace injuries and hazardous situations; and WHEREAS, all employers and employees are encouraged to rededicate themselves to improving safety and health in every American workplace; and WHEREAS, acknowledgment of these factors by recognizing those who have suffered from workplace injuries is a dramatic method of educating our community about this issue. NOW, THEREFORE, I, Mark Ashiku, Mayor of the City of Ukiah, on behalf of my fellow City Councilmembers, Phil Baldwin, Mari Rodin, John McCowen, and Douglas Crane proclaim April 28, 2006 as WORKERS MEMORIAL DAY IN THE CITY OF UKIAH in recognition of workers killed, injured, and disabled on the job and inform all residents of the valley about the gathering at 5:30 P.M. at Alex Thomas Plaza on April 28 that is put on by the working men and women in Mendocino County to observe this special day. April 19, 2006 //A~ark Ashiku, M~or PROCLAMATION WHEREAS, the average American child watches 1023 hours of television each year while spending only 900 hours in school (Nielsen Media Research, 2000); and WHEREAS, the average American watches four hours of television each day, which equals two months of non-stop watching over one year or nine years in a 65-year lifetime (TV-Turnoff Network); and WHEREAS, excessive TV-viewing can harm reading and academic performance, lead to obesity and its related illnesses, promote violence, stereotypes, and substance abuse, undermine family and community, and encourage consumerism; and WHEREAS, participants in TV-Turnoff Week engage in a broad range of substitute activities that foster greater social, physical, academic, and creative development; and WHEREAS, many individuals and organizations in Ukiah are joining with people across the country in observing TV-Turnoff Week. NOW, THEREFORE, I, Mark Ashiku, Mayor of the City of Ukiah, on behalf of my fellow City Councilmembers, Phillip Baldwin, Mari Rodin, John McCowen, and Douglas Crane do hereby proclaim the week of April 24 - 30, 2006, as Date: April 19, 2006 TV-TURNOFF WEEK · ,/.~ark Ashiku, Mayor AGENDA ITEM NO: 4.a MEETING DATE: APRIL 19, 2006 SUMMARY REPORT SUBJECT: PETITION AND COMMUNICATION FROM UKIAH COMMUNITY CENTER BOARD OF DIRECTORS The attached memo from Susan Baird, Chair of the UCC Board of Directors, is a request for funding from the City of Ukiah to the UCC Day Shelter for staffing, food and Administrative overhead. This is being placed under Petitions and Communications to receive Council's direction as to whether you would like to have this item agendized at the next meeting. Five months ago, the City Council had discussed placing the Community Based Organization Grant Program back into the City Budget for FY 06-07 and requested that staff bring this back to the Council during the Budget Hearings. However, due to the fiscal situation at UCC, they are requesting that the Council discuss their petition earlier than the Budget Hearing date as explained in their memo. RECOMMENDED ACTION: Provide direction ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Ukiah Community Center Candace Horsley, City Manager Susan Baird, Chair UCC Memo from Susan Baird App roved: ~,_..J~ ~--'-'¥~-'~ Candace Horsley, C~ Manager Attachment #~ . 1 _. April 7, 2006 TO: Candace Horsley, Ukiah City Manager FROM: Susan Baird, Chair, UCC Board of Directors SUBJECT: Background information and request concerning the Homeless Day Shelter at the Ukiah Community Center Fellow UCC Board member Jan Moore and I are looking fomazard to meeting with you on Monday, April 10 at 9 AM. This message contains background information and a summary of our request of the City. Our major focus is funding to continue operation of the Day Shelter, and we' re seeking your recommendations for how to go forward with this request. The UCC also will soon apply for renewal of the motel voucher and loan funds that we administer. If appropriate, a Board member and/or the UCC's Executive Director, Kari Hackett, will be happy to make a presentation to the City Council. BACKGROUND: Day Shelter services: The Ukiah Community Center's reception area, waiting room and parking lot have evolved into a safe haven where homeless people gather during the day, when the Buddy Eller Center is closed. About 60 people, adults and children, use the Day Shelter on an average day. It is beneficial to the people and businesses of Ukiah to have these services available to local homeless residents. The services available at the Day Shelter include: · shelter from the weather · breakfast · mail receiving and telephone use · personal supplies (e.g., diapers, toothpaste) · bathroom · children's play area · payee services · computer · copying · waiting room for the UCC's services, including homeless intervention, life skills training and the Food Bank · referrals to other community services The Shelter is managed by the UCC's Homeless Services Manager and staff and directly staffed by the receptionist, under the oversight of the Executive Director. Funding Needs The Federal Emergency Services Grant (FESG) funding that covered the costs of food and staffing at the Day Shelter and other UCC services ended in March. The grant was for $100,000, representing about $8,400 a month in revenue. At best, FESG funding will not be available for 6 months because an application deadline was missed last summer in the transition between Executive Directors. The UCC staff has reapplied for funding, which we hope will resume October 1. The end of FESG funding together with disappointing results of other recent grant applications leaves the UCC with a significant operating deficit. The Board and staff are taking steps to raise funds and cut expenses, and we are conducting a thorough analysis of the UCC's revenue and expenses to determine what permanent structural changes may be necessary. At present, the UCC is operating on a shoestring, having cut several staff positions and other spending. The staff also has applied for several grants. Meanwhile, the demand for the Community Center's services, including the Day Shelter, is greater than ever; and some expenses such as utilities and food transport are unavoidably increasing. OUR REQUEST OF THE CITY OF UKIAH: We are seeking funding from the City of Ukiah in the amount of $18,150 to cover Day Shelter staffing, food and administrative overhead for the 26 weeks from April through September. · Staff: $14,000. · Food: $2,500 · Administrative overhead (10%): $1,650 In addition, we expect in the near future to request continuation of City funding for loans and motel vouchers. The UCC staff is completing an overview and status report as well as new eligibility criteria and a new protocol for use of these funds. The details will be provided at that time. ITEM NO.: 7.a DATE: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF MARCH 2006 Payments made during the month of March 2006, are summarized on the attached Report of Disbursements. Further detail is supplied on the attached Schedule of Bills, representing the five (5) individual payment cycles within the month. Accounts Payable check numbers: 68039-68116,68118-68236, 68324-68431, 68433-68633 Accounts Payable Manual check numbers: none Payroll check numbers: 67965-68038, 68237-68323, 68634-68708 Payroll Manual check numbers: 67963-67964, 68117 Void check numbers: 68432 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 March 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 Manager KRS:WORD/AGENDAMAR06 CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF MARCH 2006 Demand Payments approved: Check No. 68039-68116,68118-68236, 68324-68431,68433-68538, 68539-68633 FUNDS: 100 General Fund $279,378.99 611 131 Equipment Reserve Fund 612 140 Park Development $604.97 620 141 Museum Grants $3,093.19 640 143 N.E.H.I. Museum Grant 652 150 Civic Center Fund 660 200 Asset Seizure Fund $2,039.96 661 201 Asset Seizure (Drug/Alcohol) 664 203 H&S Education 11489 (B)(2)(A1) 670 204 Federal Asset Seizure Grants 678 205 Sup Law Enforce Srv. Fd (SLESF) $4,791.32 679 207 Local Law Enforce. BIk Grant 695 220 Parking Dist. #10per & Maint $553.79 696 230 Parking Dist. #1 Revenue Fund $55.00 697 250 Special Revenue Fund 698 260 Downtown Business Improvement 699 301 2107 Gas Tax Fund $1,260.05 800 315 Airport Capital Improvement $58,960.11 805 330 Revenue Sharing Fund 806 332 Federal Emerg. Shelter Grant 820 333 Comm. Development Block Grant 840 334 EDBG 94-333 Revolving Loan 900 335 Community Dev. Comm. Fund 910 340 SB325 Reimbursement Fund 920 341 S.T.P. 940 342 Trans-Traffic Congest Relief 950 345 Off-System Roads Fund 960 410 Conference Center Fund $22,717.67 962 550 Lake Mendocino Bond 965 575 Garage $1,896.64 966 600 Airport $37,770.97 975 976 PAYROLL CHECK NUMBERS 67963-68038 DIRECT DEPOSIT NUMBERS 27131-27272 PAYROLL PERIOD 2/12/06-2/25/06 PAYROLL CHECK NUMBERS: 68117, 68237-68323 DIRECT DEPOSIT NUMBERS 27273-27417 PAYROLL PERIOD 2126106-3111/06 PAYROLL CHECK NUMBERS: 68634-68708 DIRECT DEPOSIT NUMBERS · 27418-27563 PAYROLL PERIOD 3/12106-3/25/06 VOID CHECK NUMBERS: 68432 Sewer Construction Fund City/District Sewer Special Sewer Fund (Cap Imp) San Dist Revolving Fund REDIP Sewer Enterprise Fund Sanitary Disposal Site Fund Sanitary Disposal Replace Disposal Closure Reserve U.S.W. Bill & Collect Public Safety Dispatch MESA (Mendocino Emergency Srv Auth) Golf Warehouse/Stores Billing Enterprise Fund Fixed Asset Fund Special Projects Reserve Electric Street Lighting Fund Public Benefits Charges Water Special Water Fund (Cap Imp) Special Deposit Trust Worker's Comp. Fund Liability Fund Payroll Posting Fund General Service (Accts Recv) Community Redev. Agency Redevelopment Housing Fund Redevelopment Cap Imprv. Fund Redevelopment Debt Svc. Russian River Watershed Assoc Mixing Zone Policy JPA TOTAL DEMAND PAYMENTS TOTAL PAYROLL VENDOR CHECKS TOTAL PAYROLL CHECKS TOTAL DIRECT DEPOSIT TOTAL PAYMENTS $135,631.37 $99,431.24 $2,823.2O $24,611.22 $5,104.13 $10,640.30 $738,446.49 $1,774.24 $8,210.29 $9,675.70 $1 O5,428.62 $650,906.23 $9,086.50 __ $18,959.50 $136,698.36 $717,462.17 $18,416.77 $522.71 $460,184.55 $2,541.23 $183.33 _ $562.50 $41,524.34 $13,562.95 $3,625,510.60 $54,570.89 $204,801.26 $552,517.03 $4,437,399.78 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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000000000000000000000000000000000000000 00000000~0000~0~~0~000~0~000000000 o~~~o~ o~o ~ ~ 0000000000000000000000~0~~0000000000 00000000000000000000~~~0~0000000 o oo oo oo oo oo oo oo oo oo oooooooooooooooooooooooooooooo ~oo~oo~oo~oo~oo~oo~oo~o~~ ~ ~ ~ ~ ~ ~ ~ ~oo~oo~oo~oo~oo~oo~oo~o~~ ~ ~ ~ ~ ~ ~ ~ oo oo oo~oo~oo oo oo oo o oo oo oo oo ooooooooooooooo ooooooooooooooo oo oo oo oo 0 0 ~oo~oo~oo~oo~goo~ooo~oo~§oogo O0 O0 O0 O0 O0 000 O0 O0 0 000000000000000000000000000000 000000000000000000000000000000 0000000000000000~0~0~~00000 00000000000000~0~~~0~0 O0 O0 O0 000 000000000000000 000000000~0000~ o~~o~~~o ~ o ~ oo o o ~o~oo~o~o~~ o~oo~oo~oo~oo 0 O0 ~ O0 O0 00000000000000 I~ LD r.j . 0 > O0 O0 000 O0 O0 O0 000000000000000000000 0 C~ ~3 ~ 0 00 00 o~ co oh <2> C~ ~q 0 0 0 0 o o 00 co o o o o oooo 0 0 oo o~ oo oo o oooooooooooooooo ~oo~o~oo~oo~ o~ 0000000000~00~~0000 ~ ~ H 0 Ooo o o~ o 0~ o 0 o o o o o o · o~ ce} c~ , , ~°° oo~ 0 O~ ~H ~0 0 O0 0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o~oo~§o 0 O0 0 0000000 ~o~ o ~oo~o~ ~ ~ 0 O~O~J 0 ~ ~ 0 ~ o ~ o ~ O~ ~:o O~ Z r.,8o HHHHHH H~H~H Z o q~ r~ o H (J · > o ~ o H ~0 rJ · o > t o o 00 co oo o o o o og [13 u3 o o o . o . o o~ · o · o 00 00 · . o o o o ~o ~o · o co · 0 , o~ 0 o o ,-t ~J · > g © ,< AGENDA ITEM NO: 7.b MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: REPORT OF RESOLUTION OF THE COMMISSION OF THE NORTHERN CALIFORNIA POWER AGENCY (NCPA) APPROVING EXPENDITURE OF FUNDS TO COMPLETE THE GEOTHERMAL UNIT 3 SCHEDULED FIVE-YEAR OVERHAUL; AUTHORIZE CITY MANAGER TO PAY CITY'S PROPORTIONATE SHARE OF OVERHAUL FROM NCPA GENERAL OPERATING RESERVE IN AN AMOUNT OF $30,318 (revised). SUMMARY: On April 5, 2006 Council authorized the City Manager to pay the City's proportionate share of the Geothermal Unit 3 Scheduled Five-Year Overhaul from the City's NCPA General Operating Reserve in an amount of $28,158. On April 10, 2006 city staff received a notice from NCPA indicating the original percentages used to determine each geothermal participant's share for the overhaul were incorrect (see Attachment 1). The corrected amount for Ukiah is $30,318 (see Attachment 2). City staff is informing Council of this correction and recommending approval of the revised amount of $30,318 to be funded from the City's account in the NCPA General Operating Reserve. By so doing, the Letter of Direction (see Attachment 3) will be signed by the City Manager and sent to NCPA to facilitate this action. RECOMMENDED ACTION: Approve the revised amount as submitted by NCPA; Authorize City Manager to pay City's proportionate share of overhaul from NCPA General Operating Reserve in an amount of $30,318 by forwarding Letter of Direction to NCPA. ALTERNATIVE COUNCIL POLICY OPTIONS: Direct City Manger to pay City's proportionate share of overhaul from the Electric Enterprise Fund, NCPA Purchased Power account number 800.3702.214.000. Citizens Advised: Prepared by: Coordinated with: Attachments: N/A Liz Kirkley, Electrical Distribution Engineer Murray Grande, Interim Public Utilities Director and Candace Horsley, City Manager 1. NCPA Interoffice Memorandum dated April 4, 2006 2. NCPA Geothermal Unit #3 Repairs, Original and Corrected 3. NCPA Letter of Direction Approved: ~'.7%~ ~,-..,v' Candace Horsley, ~ity Manager ATTACHML~IT_ / ii ii A PUBLIC AGENCY NCPA NORTHERN CALIFORNIA POWER AGENCY Interoffice Memorandum April 4, 2006 TO: Geothermal Project Participants FROM: Dale B. Lain, Treasurer-Controller SUBJECT: Geo Unit #3 Repairs Cash Call The percentages used to determine your entity's share of the Geo Unit #3 Repairs for the recent cash call were in error. Attached is a summary of the: · EFFECT OF CORRECTION BY PARTICIPANT · ORIGINAL shares · CORRECTED shares If we have received your Letter of Direction a corrected one is enclosed. Please check the appropriate box, sign, date and return. If you have not yet returned your Letter of Direction, please complete it using the participant shares indicated in the CORRECTED box per the attached. If you have any questions, please call (916) 781-4210. Your assistance in this matter is greatly appreciated. ATTACHMENT " Northern California Power Agency Geothermal Unit #3 Repairs EFFECT OF CORRECTION BY PARTICIPANT Geothermal Participants Current Cash Call Estimate: Alameda 0.0000% $ - Biggs 0.0348% 188 Gridley 0.0333% 180 Healdsburg 0.2425% 1,310 Lodi 0.1060% 572 Lompoc 0.0000% - Plumas Sierra 0.0697% 376 Roseville 1.3015% 7,028 Santa Clara 0.0000% - Tu rlock -2.1878% (11,814) Ukiah 0.4000% 2,160 0.0000% $ 540,000 ORIGINAL Geothermal Participants Current Cash Call Estimate: Alameda 16.8825% $ 91,166 Biggs 0.1922% 1,038 Gridley 0.3027% 1,635 Healdsbu rg 3.4315% 18,530 Lodi 10.1740% 54,940 Lom poc 3.6810% 19,877 Plumas Sierra 0.6313% 3,409 Roseville 6.5815% 35,540 Santa Clara 44.3905% 239,709 Turlock 8.5183% 45,999 Ukiah 5.2145% 28,158 100.0000% $ 540,000 ATTACHMENT' ~-~ A PUBLIC AGENCY NCPA NORTHERN CALIFORNIA POWER AGENCY 180 Cirby Way · Roseville, CA 95678 (916) 781-4210 (916) 781-4255 FAX March 24, 2006 TO: SUBJECT: UTILITY DIRECTORS GEOTHERMAL UNIT #3 OVERHAUL Attached are explanations of the Geothermal Project's current status in connection with the Unit #4 Generator Loss (Boxes 1,2 & 3) and the planned Unit #3 Overhaul (Boxes 4 & 5). A project participant cash call to fund the #3 Unit Overhaul is the most prudent course of action at this time because: · Unit #4 Generator Loss Claim is not yet settled or paid. · Current forecast of fiscal year end Budget Settlements indicate no excess funding is available. Also attached for your reference is a February 2006 General Operating Reserve status report. On the form below, please identify your entity, indicate your share of the repairs (see Box 5 attached), check the appropriate box, sign and date as indicated below, and return this Letter of Direction form to NCPA as noted: LETTER OF DIRECTION TO: NCPA TREASURER-CONTROLLER (FAX 916-781-4255) SUBJECT: NCPA GEOTHERMAL UNIT #3 OVERHAUL CASH CALL City of Ukiah (Geothermal Participant) On behalf of our entity, I hereby direct you to pay our share of the Geothermal Unit #3 Overhaul $ 30,318 as shown in Box 5 of the Geothermal Project Repairs Status Report from the funding source checked below: From our account in the NCPA General Operating Reserve [~ Our check which is enclosed [--] Authorized by: (Utility Director, Commissioner or Alternate) Date: ITEM NO. 7.c DATE: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION APPROVING RECORDS DESTRUCTION The Finance Department have reviewed Records Destruction Notices encompassing 101 boxes and identified 97 record boxes as ready for destruction. The City's Records Retention Schedule was adopted by City Council in 1999. The City Attorney has reviewed the Records Destruction Notices for each archival box and has approved those boxes designated for destruction. Funds have been allocated in the City Clerk's budget for shredding of documents. RECOMMENDED ACTION: Adoption of Resolution Authorizing Destruction of Certain Records ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A N/A Marie Ulvila, City Clerk ~ ~ City Manager Candace Horsley, City Attorney David Rapport, and Finance Director Mike McCann 1. Resolution with attachment authorizing the destruction of certain records APPROVED:" ' Candace Horsley, City Ma'~ger ASR: Records Destruction 2006 Finance ATTACHUENT._..~._ RESOLUTION NO. 2006- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING THE DESTRUCTION OF CERTAIN RECORDS WHEREAS, the Finance Department has reviewed and approved the list of records that are ready for destruction; and WHEREAS, the attached list of City records represents records which are no longer necessary and may at this time be destroyed. NOW, THEREFORE, BE IT RESOLVED, that the Ukiah City Council hereby approves the destruction of certain records, contained in Exhibit A of this Resolution, and authorizes the City Clerk to destroy the records. PASSED AND ADOPTED this 19th day of April, 2006, bythe following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Mark Ashiku, Mayor Marie Ulvila, CMC City Clerk Resolution 2006- Page 1 of 1 RECoRDs DESTRUCTION NOTICE FOR CITY OF UKIAH Date: February 2, 2006 Department: Finance Records Coordinator: Marie Ulvila, City Clerk AI! Current retention schedules show that the records listed are now ready for destruction. Instructions: 1. Review this listing. 2. Obtain Department Head's Signature. 3. Return this notice, signed, no later than February '15, 2006 to City Clerk. Thank you for your cooperation in keeping our records management system working smoothly and legally. Marie Ulvila, City Clerk LOCATION BOX RECORD TITLE '"'DATES RETENTION COMMENTS DATES 38 521 Payroll ledgers , - 12/78_4/79 1982 65 2075 Utility billing records 1/99-8/99 2002 90 3189 Journals/vouchers 8/99-6/00 2004 101 1937 Reports-departmental 7/97-6/99 2004 138 1669 Bad debt write-offs 7/93-6/94 2005 142 1940 Utility records 7/93-6/99 2004 145 3190 Cash receipts edit list 11/00-7/01 2004 190 1215 Warrants paid 7/89-6/90 1995 191 3191 Cash receipts edit list 7/00-10/00 2003 198 3192 , Cash receipts edit list 1/02-4/02 2004 199 3193 Journals/vouchers 12/00-3/01 2005 205 3194 Journals/vouchers 4/01-6/01 2005 232 638 .P ay ro I I .f~'eer-d~e,e [.~r~ 1963-1975 ~~,,,~,~" 239 3195 Billing/customer r'ee~rds 1/00-6/01 2004 - 240 3196 Journals/vouchers 7/00-11/00 2005 242 ~ 3197 Statistics reports 6/95-10/00 2005 247 2995 Airport dailys 1/02-12/03 2005 251 3198 Statistics reports 7/88-5194 1999 253 3199 Cash receipts edit list 7/02-11/02 2005 313 3005 Transient occupancy tax 1995-1999 2003 323 1648 Payroll register 6/93-4/94 ---t99¢-~,' . 343 1579 Payroll records 12/92-9/94 1995 410 3013 Airport dailys 1/00-12/01 2003- 432 3020 Deposits, receipts, cash post 1/00-12/00 2005 470 1122 Payroll records 6/87-12/88 1991 Signatures Authorizing Destruction Department Head · C, ity Clerk Date: Date: Destroyed By Date: Reports: Destroy-City Clerk 2006 RECORDS DESTRUCTION NOTICE FOR CITY OF UKIAH Date: February 2, 2006 Department: Finance Records Coordinator: Marie Ulvila, City Clerk Current retention schedules show that the records listed are now ready for destruction. Instructions: 1. Review this listing. 2. Obtain Department Head's Signature. 3. Return this notice, signed, no later than February 15, 1006 to City Clerk. Thank you for your cooperation in keeping our records management system working smoothly and legally. Marie Ulvila, City Clerk- LOCATION BOX RECORD TITLE DATES RETENTION COMMENTS DATES 472 1124 Payroll records 1/87-2/88 1990 473 1608 Monthly TOT reports 1/92-12/94 1999 - 476 1,595 , Payroll records 7/93-10/93 2001 477 1580 Payroll records 6/93-10/93 1998 ~.~ 479 1818 Cash receipt stubs 12/95-10/96 1999 - 481 1788 Utility reports 1/96-7/97 1999 486 1584 Payroll records 4/94-12/94 1999 487 1582 Payroll records 3/93-12/94 1997 488 1812 Cash receipt stubs 10/96-11/96 1998 489 1813 Cash receipt stubs 11/96-12/96 1998 491 1814 Cash receipt stubs 12/96-1/97 1999 492 1210 Warrants paid 7/89-6/90 1995 493 1815 Cash receipt stubs 1/97-2/97 1999 494 1789 Utility reports 7/93-6/97 2002 495 1601 Employee distribution reports 12/94-9/95 2000 ~ ~;~". 496 1816 Cash receipt stubs 2/97-3/97 1999 . 501 1817 Cash receipt stubs 7/92-12/96 1997 510 1772 Bank statements 12/94-5/95 2005 519 1382 Payroll record 1/92-12/92 1996 520 3033 Prod/non pred vacation/sick leave 1/03-12/0,3 2005 .... 529 1392 Payroll records 8/92-11/92 2000 536 1762 Cash edit listings 7/95-6/96 1999 537 1729 Cash receipt stubs (golf) 1/96-10/96 2000 538 1754 Warrants paid 7/95-6/96 2001 540 3039 Deposits, receipts, cash post UK 2/00-9/00 2005 Signatures Authorizing Destruction Department Head City Clerk Date: xk'I/' ~Date' Destroyed By Date: Reports: Destroy-City Clerk 2006 RECORDS DESTRUCTION NOTICE FOR CITY OF UKIAH Date: February 2, 2006 Department: Finance Records Coordinator: Marie Ulvila, City Clerk Current retention schedules show that the records listed are now ready for destruction. Instructions: 1. Review this listing. 2. Obtain Department Head's Signature. 3. Return this notice, signed, no later than February 15, 2006 to City Clerk. Thank you for your cooperation in keeping our records management system working smoothly and legally. Marie Ulvila, City Clerk LOCATION BOX RECORD TITLE DATES RETENTION COMMENTS DATES 543 1726 Airport billing 8/93-6/96 1999 544 1725 Parking dist paid citations 3/96-8/96 1999 548 1727 Parking dist paid citations 9/96-2/97 2000 562 1425 Daily cash receipts 11/90-6/91 1994 566 1732 Cash receipt stubs 8/95-9/95 2001 592 3131 Cash receipt register 7/94-10/95 2002 599 1457 Payroll register 12/92-5/93 2000 ~- 603 1461 Payroll register 1/93-6/93 .2000 ' 605 1770 Cash edit listings 7/96-6/97 2000 608 1466 Payroll reports 4/91-12/92 1996 626 3078 Deposits, receipts, cash post UK 5/00-12/00 2005 640 1860 Payroll records 12/95-12/96 2000 641 1861 Payroll records 8/96-7/97 2001 6.45 1865 Payroll records 12/95-3/97 2004 646 1866 Payroll records 12/95-8/96 2000 652 1922 Payroll records 12/95-2/97 2000 O~. 655 1875 Payroll records 5/96-11/96 2003 657 1877 Time sheets 6/97-12/97 2005 ~ ' 658 1878 Time sheets 12/96-6/97 2004 ~:;~.". 671 3092 Billing records 7/01-6/02 2005 672 3093 Billing records 7/01-6/02 2005 673 1893 Warrants paid 7/96-6/97 2003 674 1864 Warrants paid 7/96-6/97 2003 675 3094 Billing records 11/99-10/00 2004 679 3098 Applications (service orders) 7/00-12/00 2005 Signatures Authorizing Destruction Department Head Date: ~--.~~'~ City Clerk Date' ff~ Destroyed By Date: ~////~ ~ , Date: . , Reports: Destroy-City Clerk 2006 RECORDS DESTRUCTION NOTICE FOR CITY OF UKIAH Date: February 2, 2006 Department: Finance Records Coordinator: Marie Ulvila, City Clerk Current retention schedules show that the records listed are now ready for destruction. Instructions: 1. Review this listing. 2. Obtain Department Head's Signature. 3. Return this notice, signed, no later than February 15, 2006 to City Clerk. Thank you for your cooperation in keeping our records management system working smoothly and legally. Marie Ulvila, City Clerk LOCATION BOX RECORD TITLE DATES RETENTION COMMENTS DATES 683 3102 Billing records 1994-2002 2005 701 1971 Payrolla~;~;t~ ~¥_~i~ 12/95-8/97 ~~:.:,~ ~O~ 702 3115 , Payroll records 'J 1/04-6/04. 2005 ,.:~, ~. (~ 703 1973 Payroll register.~ 8/97-12/98 ."~88~.~-r. ~ .~" - N~ "' ' 705 1975 Purchase orders 7/95-6/98 2003 755 2025 Business license 1/96-12/96 2002 768 3150 Billing/customer rec,~i_~ 7/01-7/02 2005 925 ~ B a n k s~c=q~merCcs'-#F~ 7/95-12/95 1998 932 ~ -~an i~-statem,ents #F-132 7/93-12/93 1996 935 2411 Billing records 1/89-12/89 1993 936 2412 Billing records 1/89-12/89 1993 937 2413 Billing records 1/89-12/89 1993 938 2414 Billing records 1/89-12/89 1993 939 2415 Billing records 1/89-12/89 1993 940 2416 Billing records 1/89-12/89 1993 976 2451 Warrants paid 7/92-6/93 2003 979 2455 Warrants paid 7/91-6/92 2001 980 2456 Departmental reports 8/98-6/99 2001 1043 2519 Accounts receivable 12/91-7/93 2004 1073 2549 Checks 7/99-12/99 2005 1074 2550 Checks 12/99-6/00 2005 1075 2551 Checks 7/00-12/00 2005 1199 1824 AR reports 1/95-6/95 2000 1204 1570 Cash receipts 1/95-2/95 1997 1209 1575 Airport billing invoices 1/02-12/02 2004 Signatures Authorizing Destruction Destroyed By Date: Reports: Destroy-City Clerk 2006 AGENDA ITEM NO: 7.d MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: RESOURCE 500 - AGGREGATE WITH OTHER PARTICIPANTS IN ORDER TO HAVE A VOTE ON THE DEVELOPMENT COMMITTEE. SUMMARY: On December 21, 2005 the City Council authorized the City Manager to enter into a Development Agreement for Resource 500 between the Central Valley Project Corporation and the City for the purchase of 10 megawatts (MW) of power. The impetus for this was due to the fact that Ukiah is in need of fixed replacement power as a result of the loss of the Western contract in January 2005. Section 4 of the Development Agreement discusses the establishment of the Development Committee for Resource 500. Section 4.1(b) of the Development Agreement states that each participant with 20 MW or more of entitlement shall appoint one representative to the Development Committee. Participants with less than 20 MW may aggregate their entitlement to reach the 20 MW threshold in order to receive representation on matters requiring voting. All participants will be allowed to aggregate as they choose to achieve representation for Development Committee votes. The following participants have communicated a desire to aggregate in order to have a vote on the Development Committee: City of Ukiah (10 MW),Truckee Donner Public Utility District (5 MW), City of Healdsburg (3 MW), City of Gridley (2 MW), Port of Oakland (2 MW), City of Biggs (1 MW) and City of Pittsburg (1 MW). Staff supports this aggregation in order to have a vote on the Development Committee and is requesting the City Council's approval to aggregate with the above listed participants. If this action is approved by the City Council, staff will bring back an agreement, to be executed by the aggregated participants, for the City Council's review and approval. RECOMMENDED ACTION: Aggregate with the above listed Resource 500 participants in order to have a vote on the Development Committee. ALTERNATIVE COUNCIL POLICY OPTIONS: Choose not to have a vote on the Resource 500 Development Committee. Citizens Advised: Prepared by: Coordinated with: N/A Liz Kirkley, Electrical Distribution Engineer Murray Grande, Interim Public Utilities Director; David Rapport, City Attorney and Candace Horsley, City Manager Approved: Candace Horsley, City M~ager Item No 7.e Date: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: AWARD OF BID TO WATTHOUR ENGINEERING COMPANY, INC. FOR THE PURCHASE OF A MODEL 2350 ELECTRIC METER TEST BOARD IN THE AMOUNT OF $32,247.25 Staff evaluated a number of electric meter test boards used for the City's meter calibration and change out program and found Watthour Engineering's Model 2350 to be the most precise and reliable meter testing system and is used by the majority of NCPA members. Another advantage to using this system, is the availability of "backup" from other NCPA cities should the need arise. A quotation was requested from Watthour Engineering Company, Inc. for the purchase of and training on the Model 2350 Electric Meter Test Board. WatthoUr Engineering Company, Inc. is the sole manufacturer of this unit and sells their products directly from the factory. The meter test board is $32,217.25 including tax and has been budgeted in the 2005/2006 Fiscal Year in Account Number 800.3650.800.000. Training is $3,000.00 and has been budgeted in Account Number 800.3728.160.000. Sufficient funds are available. RECOMMENDED ACTION: Award bid for the purchase of a Model 2350 Electric Meter Test Board, including training, to Watthour Engineering Company, Inc. in the amount of $32,247.25 ALTERNATIVE COUNCIL POLICY OPTIONS: Reject bid and provide direction to staff. Citizen Advised: N/A Requested by: Stan Bartolomei, Electrical Supervisor Prepared by: Judy Jenney, Purchasing & Warehouse Assistant Coordinated with: Candace Horsley, City Manager Attachment: 1. Letter from manufacturer Candace Horsley, City I~anager AGENDA ITEM NO: 7.f MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: APPROVAL OF LETTER TO FEMA APPEALS OFFICER ON BEHALF OF BERNARD KENT PORTER SEEKING REIMBURSEMENT FOR FUNDS EXPENDED ON EMERGENCY REPAIRS FOR OAK KNOLL ROAD - MCCOWEN Councilmember McCowen has requested the City Council submit a letter of support to the FEMA Appeals Officer on behalf of Mr. Bernard Kent Porter who is seeking reimbursement for funds expended on emergency repairs for Oak Knoll Road. Oak Knoll Road is the only ingress and egress for multiple public and private communications facilities. A number of these communications facilities directly impact the City and County's ability to provide public safety (such as Mendocino County Sheriff's Repeater Station, Cell Tower, Airport Rotating Beacon and the Backup FAA Antenna). Mr. Porter has expended $19,996.79 to repair and stabilize a section of Oak Knoll Road that was damaged during the federally declared disaster. Mr. Porter has submitted an application with documentation, but FEMA is only offering reimbursement for $3,572.80, which is far less than the normal 75% rate of reimbursement. Staff is unaware of the reason for FEMA's limited reimbursement to Mr. Porter. Councilmember McCowen respectfully requests Council's support and submittal of the attached letter (Attachment 1) to the FEMA Appeals Officer. RECOMMENDED ACTION: Approval of letter of support on behalf of Mr. Bernard Porter. Direct City Clerk to forward letter of support to FEMA Appeals Officer. ALTERNATIVE COUNCIL POLICY OPTIONS: Revise letter of support or choose not to send letter. Citizens Advised: Prepared by: Coordinated with: Attachments: Yes Sue Goodrick, Risk Manager/Budget Officer Councilmember McCowen and Candace Horsley, City Manager 1. Letter of Support to FEMA Appeals Officer Approved:~ ,C.-: %--"i/,.~!":,, "-~'~Sace H~rsley, (~ty Manager ATTACHMENT~ ! April 19, 2006 FEMA Appeals Officer National Processing Service Center P.O. Box 10055 Hyattsville, MD 20782-7055 RE: FEMA Application #932071936 Dear Appeals Officer, On behalf of the residents of the City of Ukiah and the surrounding area, we would like to thank you for your efficient, timely and helpful response to the citizens of our community in assessing and compensating them for damages suffered during the recent federally declared disaster. We regret to inform you that we are aware of one instance where the system does not seem to be working as designed. We refer you to the above application number which references a claim filed by Bernard Kent Porter who resides at 1341 Oak Knoll Road, Ukiah. Oak Knoll Road is the sole means of ingress and egress for multiple public and private communications facilities. These communications facilities and their operability are vital to the public safety of this community. A slide blocked the road as a result of the severe winter storms. Mr. Porter, worried about a reoccurrence, not only cleared the road, but engaged the services of a geotechnical engineer, who recommended measures to prevent further damage. The slide prone area, left untreated, would almost certainly have resulted in a reoccurrence, especially given the continuing stormy weather. The logical extension of the slide would ultimately have undercut the road above the slide area, which would have proven far more costly than the modest amount of work that was employed to stabilize the slide and prevent further damage. Mr. Porter appears to have taken prudent and reasonable steps to repair the immediate damage and prevent a predicable reoccurrence. In so doing, he 'has safeguarded public and private access to vital safety communications facilities and has prevented greater costs in the future. Mr. Porter has documented the event and repairs with before and after photographs; he has submitted receipts documenting and justifying the expenses incurred; and he has applied without success to his insurance company for reimbursement. When disaster strikes, no matter how well prepared the public agencies may be, they are reliant on citizens like Mr. Porter to pitch in and provide assistance. Mr. Porter is entitled to our thanks and prompt reimbursement for his direct expenses in dealing with an emergency situation in a timely and cost effective manner. Thank you for your prompt attention to this matter. Mayor Mark Ashiku, On behalf of the unanimous Ukiah City Council. CoG, Congressman Mike Thompson Senator Diane Feinstein Senator Barbara Boxer County of Mendocino AGENDA SUMMARY ITEM NO: 7.g DATE: April 19, 2006 REPORT SUB3ECT: ADOPTTON OF RESOLUTTON WATVTNG THE 60-DAY NOTTFTCATTON REQUTREMENT FOR ESTABLI'SHTNG A COUNTY FACI'LTTY TN THE CTTY (327 NORTH STATE STREET)~, PURSUANT TO GOVERNMENT CODE 25351 SUMMARY: The County Department of General Services has requested a waiver from the 60-day notification requirement, as established by Government Code Section 25351, to lease Suites 202, 205, and 208 at 327 North State Street for the County Alternate Defender's office. Government Code Section 25351 provides for such a waiver if the City Council adopts a Resolution to this effect. Without the waiver, the County would simply have to wait the 60 days otherwise required by State law before leasing the office space. As indicated in the attached correspondence from Pete Halstad, County General Services Manager, the County hopes to lease the space and begin occupancy on May 1, 2006. Without the City's waiver of the 60-day notification requirement, the County may lose the opportunity to lease the offices. Staff can find no reason to oppose the County's immediate lease and use of the storage unit, and therefore believes the 60-day noticing waiver is supportable. RECOMMENDED ACTION: Adopt the Resolution waiving the 60-day noticing requirement pursuant to the provisions contained in Government Code Section 25351. ALTERNATIVE COUNCIL POLTCY OPTION: Do not adopt the Resolution, thereby require the County to wait 60 days to lease and use the office space located in at 327 North State Street. Citizen Advised: N/A Requested by: Pete Halstad, County Director of.General Services Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: 1. Waiver Resolution 2. Halstad correspondence, dated March 29, 2006 3. Site Location Map APPROVED:~/q=~.~~ Cand-ace Ho~sley, city Manager RESOLUTION NO. 2006- Attachment # RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH WAIVING THE 60-DAY NOTIFICATION REQUIREMENT FOR ESTABLISHING A COUNTY FACILITY WITHIN THE CITY LIMITS, AS REQUIRED BY GOVERNMENT CODE §25351 WHEREAS, . Government Code §25351 requires that a County notify a City in advance of its intent to locate a County facility in the incorporated area; and . Government Code §25351 further requires that said advance notification occur at least 60 days prior to use and occupancy of the County facility, unless the City Council waives the notification requirement by Resolution; and . The Mendocino County Department of General Services has requested a waiver of the 60-day notification requirement to lease and use office suites 202,205, and 208 North State Street to house the Mendocino County Altemate Defender's Office. . The granting of the waiver will enable the Mendocino County Altemate Defender's office to lease and occupy the office suites by May 1,2006, thereby avoiding loss of the property to another prospective tenant. o The use of the three (3) office suites by the Mendocino County Altemate Defender's office would not be inconsistent with any City code, or the goals and policies of the Ukiah General Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Ukiah grants the County of Mendocino Department of General Social Services a waiver of the 60-day notification requirement to lease and use office suites 202,205, and 208 located at 327 North State Street for use as the Altemate Defender's offices. PASSED AND ADOPTED on this 19th day of Apdl, 2006, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk Peter W. Halstad, Director Purchasing Agent Telephone: (707) 463-4291 FAX: (707) 463-4673 Attachment Buildings & Grounds Fleet Maintenance Printing/Duplicating Purchasing/Stores Telecommunications March 29, 2006 COUNTY OF MENDOClNO GENERAL SERVICES DEPARTMENT 841 Low Gap Road Ukiah, California 95482 City Council City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Re: County Lease of 327 North State Street, Suites 202,205 & 208, Ukiah Agenda Item for Next City Council Meeting Honorable Council Members: The County of Mendocino wishes to lease a portion of the property at 327 North State Street, Ukiah for use by the County Alternate Defender's office. By way of this letter, we hereby request that the City Council adopt a resolution (sample enclosed) waiving the 60-day notification requirement (reference Government Code Section 25351). Your cooperation in granting this request will enable the Alternate Defender's office to begin occupying this location as of May 1, 2006. In the absence of such waiver, the County is at risk of losing the office to another prospective tenant. Thank you for your cooperation in this matter. If you have any questions, please feel free to contact me. Sincerely, Pete Halstad General Services Director PH/ceb Enclosure Attachment # $C01'1' SE - ® 327 North State Street, Ukiah (NW Corner of the intersection of Smith and North State Streets) AGENDA SUMMARY ITEM NO. 7.h DATE: April 12, 2006 REPORT SUBJECT: REPORT TO CITY COUNCIL REGARDING THE PURCHASE OF NATIVE TURF GRASS FROM EMERISA GARDENS FOR OBSERVATORY PARK DEVELOPMENT IN THE AMOUNT OF $5,791.56 SUMMARY: Pursuant to the requirements of Section 1522 of the Municipal Code, Staff is filing with the City Council this report regarding the purchase of 2,500 four inch plugs of Carex Pansa from Emerisa Gardens in the amount of $5,791.56. Carex Pansa is a native grass that will be used to landscape the labyrinth at Observatory Park and is an ideal choice as an alternative to conventional turf grass given its drought tolerance and Iow maintenance requirements. Since the item is a grow to order purchase, staff searched and made a number of inquiries with wholesale vendors throughout California to ensure competitive pricing. Only one regional wholesale vendor, Emerisa Gardens, was found capable of supplying and delivering the requested plant size and quantity. As such, staff purchased the native turf grass from Emersia Gardens. This item is budgeted in the 140.6050.800.000 Park Development account for Observatory Park. RECOMMENDED ACTION: Receive report regarding the purchase of native turf grass from Emerisa Gardens for Observatory Park Development in the amount of $5,791.56. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A N/A Sage Sangiacomo, Community/General Services Director Candace Horsley, City Manager and Mary Horger, Purchasing Supervisor N/A Candace Horsley, City ~anager AGENDA ITEM NO: 7. ~. MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: AWARD OF CONTRACT TO SOURCE CALIFORNIA ENERGY SERVICES TO PROVIDE ENGINEERING SERVICES FOR THE LAKE MENDOCINO HYDROELECTRIC POWER PLANT At its July 20, 2005 meeting, City Council approved Agenda Summary Report 10a authorizing the Lake Mendocino Hydroelectric Plant Restart Commissioning Project to move forward utilizing the $1.4M that was included in the 2005-2006 Fiscal Year Budget (Account 800-5536). There are several components to the restart project including license and permit modifications and approvals, modifications to the Tainter Valve and upgrades to the plant Supervisory Control and Data Acquisition (SCADA) and Turbine Control systems. To date approvals have been obtained from the Army Corp of Engineers (COE) and the Federal Energy Regulatory Commission (FERC) relative to the Tainter Valve modifications. In addition, FERC has tentatively approved the Emergency Action Plan and the National Oceanic and Atmospheric Administration (NOAA) has approved the Operations Plan that has been developed for the plant. The Tainter Valve Modification specification has been prepared and a Request for Proposals will soon be issued for that work to take place. The third component to the plant restart project involves the upgrade to the SCADA and Turbine Control systems. In addition to the planned SCADA and Turbine Control upgrades, it has now become necessary to replace and upgrade the plant protective relays that were damaged during the flood. It was decided to include the relays in this work scope since the damaged electro- mechanical relays utilize outdated technology making repairs expensive and difficult. Replacement with state-of-the-art relays is not only more cost effective, it will improve reliability and better meet current power grid requirements as well. RECOMMENDED ACTION: Award Source California Energy Services the contract to Provide Engineering Services and Overall Project Management for the Lake Mendocino Hydroelectric Power Plant. ALTERNATIVE COUNCIL POLICY OPTIONS: It is necessary to perform certain engineering functions at the hydroelectric plant prior to the plant's anticipated restart later this year. City staff does not possess the technical expertise to perform these engineering functions needed to restart the hydroelectric plant. There is no alternative to contracting out these services. Citizens Advised: Prepared by: Coordinated with: N/A Murray Grande, Interim Public Utilities Director David Rapport, City Attorney Approved Candace Horsley, Cit~Manager To accomplish the necessary upgrades to the plant, the City issued a Request for Proposals to Provide Engineering Services to three engineering companies including; General Electric International Incorporated (GE), Atlanta, Georgia; Power Engineers (PE), Hailey, Idaho; and Source California Energy Services (SC), San Luis Obispo, California. All three companies were qualified to perform the Scope of Work addressed in the RFP. Proposals were due April 10, 2006. Proposals were received from PE and SC. GE elected not to bid. Both proposals met all the technical, schedule and experience requirements of the RFP. SC accepted all terms and conditions contained within the City's Agreement for Professional Consulting Services. PE initially took exception to several conditions however they subsequently agreed to remove all exceptions. SC bid a not-to-exceed price of $356,273 with an option for overall project management (including equipment refurbishment to occur under a separate contract) at a price of $24,500. PE bid a not-to-exceed price of $541,100. Based on the comprehensive evaluation of the submitted proposals, which included consideration of work scope, price, schedule, qualifications, expertise and compliance with the City's contract terms and conditions, staff recommends that the contract to Provide Engineering Services for the Lake Mendocino Hydroelectric Plant be awarded to Source California Energy Services for the not-to-exceed amount of $356,273. In addition, staff recommends that the option for overall project management for the not-to-exceed amount of $24,500 be included in the SC contract to help ensure that the overall restart of the project flows smoothly, on budget and on schedule. ITEM NO. 7,j DATE: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: AUTHORIZE CITY MANAGER TO SIGN THE NEW AT&T INTERNET SERVICE CONTRACT FOR THE CITY'S PRIMARY INTERNET CIRCUIT SUMMARY: The Information Technology Department was given approval to enter a service contract with Pacific Bell to provide Internet connectivity for the City of Ukiah by the City Council on May 3, 2000. Due to the consolidation of SBC and AT&T, AT&T is offering a promotional rate of 85% less than last year's cost for the next 36 months. The contract provides for the same type and speed of circuit at a monthly cost of $560.50 per month plus applicable taxes and surcharges. In addition, AT&T will include a new router and provide managed services for the circuit and router at no additional cost. Staff recommends the City Council authorize the City Manager to sign the contract with AT&T. RECOMMENDED ACTION: Authorize the City Manager to sign the new AT&T Internet service contract covering the next 36 months. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: N/A Requested by: N/A Prepared by: Steven Butler, IT Supervisor Coordinated with: Mike McCann, Director of Finance and Candace Horsley, City Manager Attachments: 1 - AT&T Managed Internet Services Contract APPROVED: Candace Horsley, Ci~~M nager ATI'ACHM~ ! CSM060326153050 at&t AT&T SSA Reference No. Customer Name ("Customer" or "You") City of Ukiah AT&T Sales Contact Information HOLLI E FLYNN-BERRY 6000 STATE FARM DR ROHNERT PARK, CA 94928-2133 Telephone: 707 585-5515 Fax: 707-4277532 Emaih hf1868@camail.sbc.com Branch Manager: Mitch Prather Sales Strata: Small Business Market Sales Region: Western AT&T Managed Internet Services AT&T MIS Commitment Form Customer Location Address and Phone Number 300 Seminary Avenue Ukiah, CA 95482 707-463-6209 NPA-NXX: 707463 AT&T Authorized Agent Information (if applicable) Name: Company Name: Telephone: Fax: Emaii: Agent Code: MIS Service Type: Managed Internet Service with Managed Router Number of MIS Circuits: 1 Installation Charges: On-Site, $4800.00 Price (monthly port pricing): $295.50 Local Access Facility Monthly Charge: $265.00 Firewall Options: (DMZ Firewall Install charge up to $500 if ordered THE DETAILS OF CUSTOMER'S MIS ORDER ARE AS FOLLOWS Term: 36 Months beginning on Service installation Type of Access: Private Line Speed: 1544 Discount Included at: 85 % Local Access Facility Charge- Installation: $0.00 DNS Services*: Additional Primary DNS: $100 monthly per DNS increment Additional Secondary DNS: $100 monthly per DNS increment *Available in increments of up to 15 zones with a maximum of 150 Kilobytes of zone file data, Customer must place any orders for DNS separately. This agreement for AT&T MiS at the location identified above is subject to the Terms and Conditions on the reverse side of this form. To the extent of any conflict between this Commitment Form and the AT&T Service Guide, AT&T Acceptable Use Policy or the AT&T Business Communications Service Agreement, this Commitment Form shall take precedence. AGREED: AGREED: CUSTOMER: AT&T Corp. By: By: (Authorized Signature) (Typed or Printed Name) (Authorized Signature) (Typed or Printed Name) (Date) (Date) Managed Internet Services Commitment Form - CRM AT&T and Customer Proprietary AT&T Internet Services Page I of 2 Updated: 2/15/2006 AT&T Managed Internet Services TERMS AND CONDITIONS Incorporated Rates and Terms of Sale: This AT&T MIS Commitment Form is subject to the rates, terms and conditions for the Term You selected on the first page of this Commitment Form (~Your Term") set forth in the AT&T Service Guide, located at http:llwww.att.com/ab~,lservicecjuide, as amended from time to time, in the AT&T Acceptable Use Policy, located at http://www.ipservices.att.com//p01icy.html, as amended from time to time and in the AT&T Business Communications Service Agreement, located at http:llwww.business.att.comlaqreement], as amended from time to time. Contract Prices, Taxes and Surcharfles: Contract price is stabilized for the Term, but does not include taxes and regulatory charges, which are not stabilized. You also are responsible for ail applicable taxes and regulatory surcharges. Regulatory surcharges, including but not limited to UCC, USF, PICC and payphone charges, are as specified in the AT&T Service Guide. Upon expiration of the Term, AT&T may modify the rates, charges, terms and conditions applicable to the Service covered by such Pricing Schedule on thirty (30) days' prior notice. Payment and Deposits: Payment due thirty (30) days after the invoice date and must refer to invoice number. Restrictive endorsements or other statements on checks will not apply. For overdue payments, AT&T may assess a late fee of the lower of 1.5% per month or the maximum rate allowed by law and all costs (including attorney fees) of collecting delinquent or dishonored payments. AT&T may require you to pay a deposit or increase an existing deposit as a condition of providing Services. You authorize AT&T to investigate your credit history at any time and to share credit information about you with credit reporting agencies. Termination and Termination Charqes: Either party may terminate for material breach upon thirty (30) days prior written notice to the other party. IF ANY PORTION OF A SERVICE IS TERMINATED BY YOU FOR CONVENIENCE OR BY AT&T FOR CAUSE BEFORE THE END OF THE TERM, YOU WILL BE BILLED AN EARLY TERMINATION CHARGE OF 50% OF THE MONTHLY CHARGES FOR EACH MONTH REMAINING. IN THE TERM. Limitation of Liability: AT&T'S ENTIRE LIABILITY FOR DAMAGES, OTHER THAN THOSE EXCLUDED UNDER THIS AGREEMENT, SHALL BE LIMITED TO PROVEN DIRECT DAMAGES NOT TO EXCEED IN THE AGGREGATE DURING ANY TWELVE (12) MONTH PERIOD AN AMOUNT EQUAL TO THE TOTAL NET PAYMENTS PAYABLE BY CUSTOMER FOR THE AFFECTED SERVICE DURING THE ONE (1) MONTH PRECEDING THE MONTH IN WHICH THE DAMAGE OCCURRED. IN NO EVENT SHALL AT&T BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, RELIANCE OR SPECIAL DAMAGES, INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS, ADVANTAGE, SAVINGS OR REVENUES OF ANY KIND OR INCREASED COST OF OPERATIONS, WHETHER OR NOT AT&T HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. AT&T ALSO SHALL NOT BE LIABLE FOR ANY DAMAGES ARISING OUT OF OR RELATING TO: INTEROPERABILITY, INTERACTION, ACCESS OR INTERCONNECTION PROBLEMS WITH APPLICATIONS, EQUIPMENT, SERVICES, CONTENT OR NETWORKS NOT PROVIDED BY AT&T; SERVICE INTERRUPTIONS OR LOST OR ALTERED MESSAGES OR TRANSMISSIONS (EXCEPT TO THE EXTENT CREDIT ALLOWANCES ARE SPECIFIED IN THE AT&T SERVICE GUIDE); OR LNAUTHORIZED ACCESS TO OR THEFT, ALTERATION, LOSS OR DESTRUCTION OF YOUR, USERS' OR THIRD PARTIES' APPLICATIONS, CONTENT, DATA, PROGRAMS, INFORMATION, NETWORK OR SYSTEMS. Disclaimer of Warranties: AT&T MAKES NO EXPRESS OR IMPLIED WARRANTY AND DISCLAIMS ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. AT&T DOES NOT WARRANT THAT THE SERVICES WILL BE UNINTERRUPTED OR ERROR- FREE, OR THAT THE SERVICES WILL MEET YOUR REQUIREMENTS OR THAT THE SERVICES WILL PREVENT UNAUTHORIZED ACCESS. AT&T DOES NOT GUARANTEE NETWORK SECURITY, THE ENCRYPTION EMPLOYED BY ANY SERVICE, THE INTEGRITY OF ANY DATA THAT IS SENT, BACKED UP, STORED OR SUBJECT TO LOAD BALANCING, OR THAT AT&T'S SECURITY PROCEDURES WILL PREVENT THE LOSS OF, ALTERATION OF, OR IMPROPER ACCESS TO, CUSTOMER DATA AND INFORMATION. Disputed Charqes: If You do not dispute a charge in writing within 6 months after the invoice date, You waive the dispute. AT&T must issue a bill within six (6) months after the month in which the charges were incurred (other than for automated or live operated assisted calls) or it waives the charges. Equipment: AT&T shall retain all right, title or interest in AT&T equipment and no ownership rights in AT&T equipment shall transfer to You. You must provide a suitable and secure environment free from environmental hazards and electric power for AT&T equipmentand shall keep the AT&T equipment free from all liens, charges, and encumbrances. AT&T equipment shall not be removed, relocated, modified, interfered with, or attached to non-AT&T equipment without prior written authorization from AT&T. Title to and risk of loss of Purchased Equipment will pass to You as of the delivery date, upon which date AT&T will have no further obligations of any kind with respect to that Purchased Equipment, except as set forth in an applicable Attachment, Pricing Schedule or Service Guide. If You do not accept the Purchased Equipment, the Purchased Equipment should be returned to the manufacturer. AT&T will obtain from the manufacturer and forward to You a Return Material Authorization. AT&T retains a purchase money security interest in all Purchased Equipment until You pay for it in full; You appoint AT&T as Your agent to sign and file a financing statement to perfect AT&T's security interest. ALL PURCHASED EQUIPMENT IS PROVIDED ON AN 'AS IS" BASIS, EXCEPT THAT AT&T WILL PASS THROUGH TO YOU ANY WARRANTIES AVAILABLE FROM ITS PURCHASED EQUIPMENT SUPPLIERS, TO THE EXTENT THAT AT&T IS PERMITTED TO DO SO UNDER ITS CONTRACTS WITH THOSE SUP PLIERS. Resale Prohibited: You may not resell the Services to third parties. Governin,q Law: Unless applicable law requires otherwise, state law issues concerning the construction, interpretation and performance of this Agreement shall be governed by the laws of the State of New York, U.S.A., excluding its choice of law rules. Entire Aqreement: THIS COMMITMENT FORM, THE AT&T SERVICE GUIDE, THE AT&T ACCEPTABLE USE POLICY AND THE AT&T BUSINESS COMMUNICATIONS SERVICE AGREEMENT CONSTITUTE THE ENTIRE AGREEMENT BETWEEN THE PARTIES. THIS AGREEMENT SUPERSEDES ALL PRIOR AGREEMENTS, PROPOSALS, REPRESENTATIONS, STATEMENTS OR UNDERSTANDINGS, WHETHER WRITTEN OR ORAL CONCERNING THE SERVICES, OR THE RIGHTS AND OBLIGATIONS RELATING TO THE SERVICES. THIS AGREEMENT SHALL NOT BE MODIFIED, OR SUPPLEMENTED BY ANY WRITTEN OR ORAL STATEMENTS, PROPOSALS, REPRESENTATIONS, ADVERTISEMENTS, SERVICE DESCRIPTIONS OR YOUR PURCHASE ORDER FORMS NOT EXPRESSLY SET FORTH IN THIS AGREEMENT. Managed Internet Services Commitment Form - CRM AT&T and Customer Proprietary AT&T Internet Services Page 2 of 2 Updated: 2/15/2006 ITEM NO. 9.a DATE: April 19, 2006 AGENDA SUMMARY REPORT SUB3ECT: CONSIDERATION AND POSSIBLE EXTENSION OF URGENCY ORDINANCE IMPOSING MORATORIUM ON NEW MARI3UANA DISPENSARIES SUMMARY: At its May 18, 2005, meeting the City Council adopted Ordinance No. 1069, imposing a 45 day moratorium on medical marijuana dispensaries in the City of Ukiah. The ordinance prohibits the establishment of new dispensaries or the expansion of the one known existing dispensary. The City Council also referred to the Planning Commission the development of permanent regulations for medical marijuana dispensaries. At its June 15, 2005, meeting, pursuant to Government Code Section 65858(a), the City Council extended the moratorium for 10 months and 15 days to May 17, 2006. Under Government Code Section 65858(a), the City Council may extend the moratorium for an additional year, until May 17, 2007. The City Council must approve the extension by a 4/5 vote. The staff recommends the adoption of additional findings in support of the extension. Accordingly, staff has prepared an amended ordinance (see Attachment 1), extending the moratorium for an additional year. Information supporting the findings is attached in Attachments 2 and 3. Continued on Page 2 RECOMMENDED ACTION: Adopt amended ordinance, extending a temporary moratorium on medical marijuana dispensaries, to May 17, 2007. ALTERNATIVE COUNCIL POLICY OPTIONS: Allow the ordinance to expire. Citizen Advised: Notice published as required by Government Code {}65090 Requested by: David -1. Rapport, City Attorney Prepared by: David .1. Rapport, City Attorney Coordinated with: N/A Attachments: Attachment l-Ordinance Extending Moratorium; Attachment 2- SFGate Report, dated August 29, 2005; Attachment 3- Excerpt of City of Davis staff report on secondary effects of marijuana dispensaries; Attachment 4-List of bans/moratoria, etc. Candace Horsley, C~ty Manager April 14, 2006 Page 2 of 2 Like the initial interim ordinance, the amended ordinance has been determined to be categorically exempt from the California Environment Quality Act. Government Code Section 65858(d) requires the City Council to issue a written report describing the measures taken to alleviate the condition which led to the adoption of the interim ordinance imposing the moratorium. To date, those measures involved reviewing ordinances adopted by other jurisdictions and preparing a draft ordinance regulating marijuana dispensaries. However, staff has not presented the draft to the Planning Commission. Staff is recommending an additional extension rather than adopting a permanent ordinance, because litigation is currently pending which could clarify the regulatory options available to the City. For example, outright bans on medical marijuana dispensaries have been adopted in 19 California cities. (See Attachment 4.) The bans adopted in Susanville, Pasadena, Concord and Fresno have been challenged in court. ]: am informed that the challenges to the Concord and Fresno ordinances have been or will be dismissed, but the challenges to the Susanville and Pasadena ordinances are still pending. Other law suits may be filed challenging particular regulations or permanent bans in other cities or counties. l:n addition, the conflict between California's Compassionate Use Act (Proposition 215) which authorizes the limited use of medical marijuana by qualified patients, and the Federal Controlled Substances Act which makes the use and sale of marijuana unlawful regardless of any medical need is unresolved. The recent U.S. Supreme Court decision in Gonza/es vs. Raich, confirmed the right of the federal government to prosecute persons for violation of federal marijuana laws notwithstanding their rights under Proposition 2:[5. However, the Raich decision did not directly address the question of whether the Controlled Substances Act preempts Proposition 2:[5 and, therefore, did not expressly invalidate Proposition 2:[5. Staff is informed that San Diego and San Bernardino Counties are seeking to get a state court to decide whether the federal Controlled Substances Act preempts Proposition 2:[5. California Government Code section 37100 prohibits cities from passing ordinances in conflict with the Constitution and laws of the State or United States. Where those laws conflict, the City needs to know how the preemption issue will be resolved to know what type of ordinance it can enact. Staff recommends allowing more time to pass before considering permanent regulations, to see if the courts clarify some of the legal issues involved, when a city attempts to ban or regulate dispensaries catering to medical marijuana patients. ATTACHMENT'~ / ORDINANCE NO. AN URGENCY INTERIM ZONING ORDINANCE EXTENDING A MORATORIUM ON NEW MEDICAL MARIJUANA DISPENSARIES FROM MAY 17, 2006 THROUGH AND INCLUDING MAY 17, 2007, TO TAKE EFFECT IMMEDIATELY WHEREAS, 1. The voters of the State of California approved Proposition 215, codified as Health and Safety Code section 11362.5 and entitled "The Compassionate Use Act of 1996" (the "Compassionate Use Act"); and 2. The State Legislature enacted SB 420, codified at Health & Safety Code Sections 11362.7 et seq., to establish a voluntary statewide identification card program for medical marijuana patients and related matters; and 3. The existing City zoning regulations do not provide for the location and regulation of medical marijuana dispensaries and such uses, if allowed by applicable state and federal laws, might be permissible in any zone that allows retail uses, drug stores, or medical uses; and 4. A new medical marijuana dispensary could be established in the City, with or without prior inquiry to the City Planning Department and without the opportunity to exercise discretionary approval authority of such use; and 5. The United States Department of Justice's California Medical Marijuana Information Report has advised that large-scale drug traffickers have been posing as primary caregivers to obtain and sell marijuana; and 6. Numerous problems have been associated with medical marijuana dispensaries in other jurisdictions. Some examples include: a. Reports of several armed robberies and a shoot out in San Leandro and Hayward between February and August 2005 involving the Compassionate Collective on Mission Boulevard near San Leandro, the Hayward Patient Resource Center, a Natural Source medical marijuana dispensary on Foothill Boulevard in unincorporated San Leandro, and the Health Center on East 14th Street. A detective with the Alameda County Sheriff's Department was quoted as blaming these incidents on the large amount of cash kept on the premises of these businesses; b. More locally, within the last year, a medical marijuana dispensary on Talmage was the subject of an undercover marijuana buy and resulting arrests; c. Within the last three months, the owner of a business on North State Street, purporting to deal with marijuana, was killed by unknown assailants in his Laytonville home; d. A report to the Davis City Council in August 2004 described numerous problems in cities with marijuana dispensaries, including the cities of Arcata, Roseville, Oakland, Hayward, Fairfax, Berkeley and in Lake County; e. In reaction to these problems, nineteen cities have adopted permanent bans on medical marijuana dispensaries, 56 have adopted interim moratoria and 23 have adopted permanent regulations. 7. Based on the potential impacts on the City of unregulated marijuana dispensaries, beginning on May 18, 2005, the City Council adopted a moratorium on the establishment of new marijuana dispensaries in the City and directed City staff to prepare, and the Planning Commission to consider and make a recommendation on, a proposal to regulate and/or prohibiting medical marijuana dispensaries; and 8. In adopting the moratorium, the City Council declared that it did not intend to allow persons to engage in conduct that endangers others or causes a public nuisance, permits or allows persons to use marijuana for non-medical purposes or allows any activity related to the cultivation, distribution or consumption of marijuana that is otherwise illegal; and 9. The City Council did intend to prevent the establishment of medical marijuana dispensaries in the City, to prevent such uses from being established and conducted without appropriate regulation in portions of the City currently unaffected by such uses, and to avoid potential conflicts with the requirements of the General Plan, uses which are inconsistent with surrounding uses, or uses which could be detrimental to the public health, safety and welfare; and to prevent such uses from conflicting with, and defeating the purpose of, the proposal to study and adopt new regulations regarding medical marijuana dispensaries; and 10. Unresolved legal issues under California law and involving the potential conflict between the Compassionate Use Act, SB 420 and the federal Controlled Substances Act warrant an extension of the moratorium to allow more time for the resolution of these issues; and 10. The urgency ordinance was adopted and is being extended pursuant to the requirements of Government Code section 65858; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF UKIAH DOES ORDAIN AS FOLLOWS: Section 1. Finding~ Declaration of Urgency. The City Council of the City of Ukiah hereby finds and declares that there is a need to enact an urgency interim ordinance establishing a moratorium on all new medical marijuana dispensaries, subject to the findings and conditions set forth in this Ordinance. One medical marijuana dispensary was in operation prior to May 17, 2005, and opened in the City without any discretionary review. Based on the secondary effects of medical marijuana dispensaries in other jurisdictions and concerns raised by recent events in Mendocino County, as described in recitals 5-6,above, if additional medical marijuana dispensaries are allowed to proceed without appropriate review of location and operational criteria and standards, the dispensaries could have potential adverse secondary effects on currently unaffected neighborhoods and the City that present a clear and immediate danger to the public health, safety and welfare. The City finds that if establishment or development of medical marijuana dispensaries were allowed to proceed while the City is studying zoning proposals and regulations for this use, it would defeat the purpose of studying and considering zoning proposals to regulate and/or prohibit this use. Failure to enact this moratorium during the stated period may result in significant irreversible change to neighborhood and community character. Based on the foregoing, the City Council does hereby declare that this urgency ordinance is necessary to protect the public health, safety, and welfare while considering revisions to the zoning regulations related to medical marijuana dispensaries. Section 2. Moratorium. (a) The City Council hereby declares a moratorium on any and all new medical marijuana dispensaries established on or after May 17, 2005, the effective date of Ordinance 1069, and any and all modifications to existing uses to add or expand a medical marijuana dispensary. (b) During this moratorium and any extension of the moratorium, the establishment or expansion of an existing medical marijuana dispensary shall constitute a violation of this Ordinance and shall be deemed a violation of the City Zoning Ordinance. (c) A tenant or owner of real property in the City shall be deemed in violation of this ordinance, if he or she knowingly allows property of which he or she is the tenant or owner to be used in violation of this ordinance. (d) During this moratorium and any extension of the moratorium, no building permit or zoning permit shall be issued for a medical marijuana dispensary. (e) This moratorium is extended to and including May 17, 2007. Section 3. Definitions. As used herein the term "Medical Marijuana Dispensary" or "Dispensary" means any facility or location where marijuana is made available to and/or distributed by or to two or more persons in the following categories: a primary caregiver, a qualified patient, or a person with an identification card, in strict accordance with California Health and Safety Code Section 11362.5 et seq. A "medical marijuana dispensary" shall not include the following uses, as long as the location of such uses are otherwise regulated by this Code or applicable law: a clinic licensed pursuant to Chapter 1 of Division 2 of the Health and Safety Code, a health care facility licensed pursuant to Chapter 2 of Division 2 of the Health and Safety Code, a residential care facility for persons with chronic life-threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the Health and Safety Code, a residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the Health and Safety Code, a residential hospice, or a home health agency licensed pursuant to Chapter 8 of Division 2 of the Health and Safety Code, as long as any such use complies strictly with applicable law including, but not limited to, Health and Safety Code Section 11362.5 et seq. and the City of Ukiah City Code, including but not limited to the City's Zoning Code. Section 4. Conflicting Laws. During the continuation of the effectiveness of this ordinance, the provisions of this ordinance shall govern. If there is any conflict between the provisions of this ordinance and any provision of the Ukiah City Code, or any City ordinance, resolution or policy, the provisions of this ordinance shall control. Section 5. Severabilit¥. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be invalid and/or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section 6. Effective Date. This extension of Ordinance 1069 shall become effective and shall remain in force and effect from and including April 19, 2006, through and including May 17, 2007, unless extended prior to the expiration date. PASSED AND ADOPTED THIS 19th DAY OF APRIL 2006, BY THE FOLLOWING VOTE: AYES: NOES: ABSENT: ATTEST: Mark Ashiku, Mayor Marie Ulvila, City Clerk Robberies make medical pot-selling a bust Page 1 of 3 ATTACHME~,,, ,,,~ , ~F{Ja~!~.com www_,sfgaLe.com g_e_t_um .t0 r_e_guJ_ar view_ R_obheri_e_s_ m_a k~___m _e_d__i_c_ .a_!_p_o t. -..s_e_!!_in_g_a_hu_. s t - .P h_i. Il!P_ _M_a__t[e_r, _A _n dre._w ._R. 9 S S Monday, August 29, 2005 Unlike their mellow brethren in San Francisco, the half-dozen or so medical marijuana clubs that have sprouted up in the urban no-man's-land between San Leandro and Hayward have turned into something out of the Wild West. There's been a rash of armed robberies, a shootout that left one robber dead, and the possible attempted hit of a worker for cooperating with police. "I don't think this is what the voters had in mind when they passed the medical pot law, but that's what we're dealing with," said Alameda County Sheriff's Lt. Dale Amaral, whose Eden Township beat includes the 2 square miles of unincorporated land where most of the clubs are. The motivation behind the robberies -- big cash and big marijuana. Here's a summary of the incidents that have occurred in recent months. The first big hit went dgwn on Super Bowl Sunday, Feb. 6, at the Compassionate Collective of Alameda County, a medical marijuana club on Mission Boulevard near San Leandro. According to sheriff's reports, a team of armed hoods busted in, tied up everyone and robbed the place of about $50,000 in cash and an undisclosed amount of "product," i.e., marijuana. The bandits didn't move fast enough, however, and were caught making their escape by Hayward police. Last month, one of the same club's employees, while pulling into the parking lot, spied a masked man hiding in the bushes. No sooner did the worker hit the gas than the masked figure sprang out and fired four slugs into the car. The worker plowed through cyclone fence to make his getaway unharmed. Sheriff's detectives suspect the shooting was in retaliation for the club cooperating with the cops on the Super Bowl robbery. About a month later, on Aug. 8, three armed robbers burst into the nearby Hayward Patient Resource Center. ATTACHMENT 2 Robberies make medical pot-selling a bust Page 2 of 3 Again everyone was ordered to hit the floor, and again the robbers cleaned out all the cash and drugs they could grab. It was the second armed robbery of the club within three months. Only this time, an employee hit a silent alarm, so Hayward police were waiting for the robbers as they came out the door. The outcome was much bloodier Aug. 19 at a third club, A Natural Source, on Foothill Boulevard in unincorporated San Leandro. This time five men, several of them armed with pistols and semiautomatic rifles, dropped down from the roof behind workers and stormed in as they were opening the club. After forcing the owner to open the safe, the bandits made off with an undisclosed amount of cash and pot. The owner, however, grabbed a .357 Magnum and went after the robbers, ordering them to freeze. The robbers answered with a volley of gunfire. The owner fired back, mortally wounding one of the assailants. No one else was hurt, but investigators shuddered when they found three slugs embedded in the wall of a neighboring apartment complex. Another club, the Health Center on East 14th Street, has reported two attempted after-hours burglaries in recent months, including one in which the bandit cut all the wires going into the club, then tried cutting through the wall of the club with power saw. No one keeps tabs on the daily take at the various clubs, but cops have been told by the operators that they take in upward of $25,000 a day -- most, if not all of it, cash. "Do the math," said Sheriff's Detective Steve Lenthe. "All day long there's a steady stream of customers going in, and each spends about $100. You could sit there with a clicker and count the cash." "It's one of the reasons we have an armored service come and why we're starting to take credit cards," said Jack Norton, who runs the Health Center. Angel Pasillas, whose HP Security guards watch over Norton's clinic and two other clubs in the area, likened the marijuana establishments to banks. "But a bank has guards and all these cameras," Pasillas said. "Some of these clubs only have some big friend of the owner at the door." The cops, however, said that there's another issue at play here -- one that may be going on far from the clubs themselves. "I can't say there's any direct connection to the clubs, but the number of arrests for possession of marijuana at schools in the neighborhood went up from 21 to 34 last year," Amaral said. The fear is that small-time dealers are getting medical cards, then using the clubs as their personal wholesale outlet. ATTACHMENT 2 Robberies make medical pot-selling a bust Page 3 of 3 These and other concerns prompted county supervisors to pass an ordinance limiting customers to 8 ounces of pot a month per club, and setting a 20-pound limit on the amount of marijuana that a club on unincorporated land may have on the premises. The county is going to allow only three clubs to operate on unincorporated land. With the deadline for applications set for Tuesday, only one of the clubs now operating near San Leandro has applied. Perhaps the others are wondering if staying in business is worth the risk. Political juice: The very vocal bride and groom who helped persuade San Francisco Mayor Gavin Newsom to put that big ski jump competition on Fillmore Street on ice -- fearing the noise and crowds would ruin their long-planned wedding Saturday at the Flood Mansion -- are hardly novices when it comes to traversing City Hall's slippery political roads. The groom, Ben Tulchin, is Supervisor Fiona Ma's political pollster, and his firm, Greenberg Quinlan Rosner Research, is prominent nationally in Democratic polling circles. Tulchin himself had interviewed to be Newsom's pollster. As for the bride, Laurie Beijen, she happens to be past president of the San Francisco chapter of the National Women's Political Caucus. Happy honeymoon. Chronicle columnists ?hillip Matier and Andrew Ross appear Sundays, Mondays and 14/ednesdays. They can also be heard on KGO Radio on Mondays, l/Vednesdays and Thursdays. Phil Matier can be seen regularly on KRON 4 News, and also on Sunday night at 9:30 on his own show, "4 the Record "Got a tip? Call them at ('415) 777-8815, or drop them an e-mail at matierandross _~. _fc.hronic!e. co_m. Page B - 1 URL: http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/O8/29/BAGB2EER9S 1.DTL ©2_0..0_5 .San___F_ran ci_s.cp _.C_ hr0n_Jc le ATTACHMENT 2 ATTACHMENT x,~? Staff Report to City Council August 27, 2004 Page 3 Option #3- Regulation The City of Davis could move to regulate dispensaries. For example, the City could, by establishing clear zoning requirements and a new ordinance, regulate location, hours of operation, on site activities (e.g., no alcohol sales), age of people allowed on site, and the registering of employees and background checks on those employees. Additionally, regulating the enterprise gives.the City a process by which a facility's permit can be discontinued or modified if it becomes a public nuisance. It also gives the operator a process to appeal the denial or cancellation, of a permit. Other Jurisdictions' Experiences Police departments who have had dispensaries in their jurisdiction for some time were polled. The following are the comments received from those agencies: City of Arcata · There are two dispensaries in town that share a building. · The two dispensaries, have an ongoing disagreement with each other that has resulted in numerous calls for police services to settle disputes. · The facilities do not have the correct electrical support and continuously blow out the electricity in the area. They have not complied with upgrading their electrical systems or responded to fire department concerns regarding proper exits and signage. · There have been numerous instances where people have purchased marijuana at the dispensary and then resold it at a nearby park. · A doctor has come to the dispensaries and, for a fee, will provide a medicinal marijuana recommendation for just about any complaint the patient makes. .City of Roseville: · They currently have one dispensary in town. This dispensary was established prior to their current regulations and was grandfathered in. · Street level dealers are trying to sell to those going to the dispensary at a lower price. · People are smoking marijuana in public around the facility. · People are coming to the community from out of town and out of state to obtain marijuana (Nevada State and San Joaquin County, etc). · Marijuana DUI by people who have obtained marijuana from dispensary. · There has been at least one burglary attempt into the dispensary building. City of Oakland · They had more than 15 in Oakland, now limited to four by ordinance but control is not very strong. The fines are too small to control a lucrative business. · Large criminal element drawn to the dispensary location. ATTACHMENT 3 Staff Report to City Council August 27, 2004 Page 4 Marijuana dealers who have a doctor's recommendation are purchasing from the dispensary and then conducting illegal street sales to those who do not have the recommendation. Street criminals in search of the drugs are robbing medical marijuana use patients of their marijuana as they leave the dispensary. · Thefts and robberies around the location are occurring to-support the illegal and legal (by State law) drug commerce. · The Police Chief mentioned that a shoe repair business next door to a dispensary has been severely impacted because of the concentration of criminals associated with the dispensary. The shoe repair business owner is considering shutting down his'business. · Most of the crime goes unreported because the users do not want to bring negative publicity to the dispensary. · The dispensaries have an underground culture associated with them. · At least one of the dispensaries had a doctor on the premises giving recommendations on site for a fee. · One location was a combination coffee shop and dispensary and marijuana was sold in baked goods and for smoking. · Dispensary management has told police that they cannot keep the criminal element out. City of Hayward: · Hayward has three dispensaries, two legal under local ordinance and one illegal. · They have had robberies outside the.dispensaries. · They have noticed more and more people hanging around the park next to one of the dispensaries and learned that they 'were users in between purchases. · They have problems with user recommendation cards - not uniform, anyone can get them. · One illegal dispensary sold coffee, marijuana and hashish- DA would prosecute the hashish sales and possession violations after arrests were made. · They have received complaints that other illegal drugs are being sold inside the dispensaries. · The dispensaries are purchasing marijuana from growers that they will not disclose. · The Police Chief believes the dispensaries do not report problems or illicit drag dealers around their establishments because they do not want the police around. · Hayward Police arrested a parolee attempting to sell three pounds of marijuana to one of the dispensaries. · Hayward has recently passed an ordinance that will make marijuana dispensaries illegal under zoning law in 2006. ATTACHMENT 3 Staff Report to City Council August 27, 2004 Page 5 Lake County: · Lake County has one marijuana dispensary in Upper Lake. · The biggest problem is the doctor close by the dispensary who is known across the state for being liberal in his recommendations to Use marijuana for a fee of $175. · Many "patients" come from hours away md.even out of state, Oregon specifically, to get a marijuana recommendation from the doctor. · Upper Lake has been impacted by the type of people coming from the marijuana doctor and dispensary. Citizens report, to the Sheriff that the people coming to Upper Lake for marijuana look like drag users ("dopers"). · One quilt shop owner has told the Sheriff that she does not feel safe anymore because of the type of people drawn to the marijuana doctor and the dispensary, which are located close together in a very .small town. · They also have a notorious marijuana grower who beat prosecution for cultivation by make a medical claim. Law enforcement has taken a hands-off approach even though he is blatantly violating the law. · The marijuana grower has recently claimed to be a church to avoid paying taxes. CiW of Fairfax: · Fairfax has one marijuana dispensary. · Fairfax has had some problems with patients selling to non-patients. · They have had problems with purchasers from dispensary congregating at a baseball field to smoke their marijuana. · Fairfax police arrested one person who purchased marijuana at the dispensary and then took it to a nearby park where he tried to give it to a minor for sex. · Very small town and low crime rate. Berkeley · Has four facilities operating in the City currently (last 3-4 years). · There have been several take over robberies of the dispensaries. · There have been arrests where legitimate purchasers have resold marijuana on the street to well individuals. · Obvious young people entering and purchasing marijuana from the dispensary. · Recommended that if we did not currently have the dispensaries, we should not allow them. · Police department has been given explicit instructions by their City Council not to take any kind of enforcement action against the dispensaries or people going in or out of the facility. · Facilities will accept any Health Department cards, even those obviously forged or faked. Below is a list of other California cities that do not have dispensaries and what they have or have not done on the issue. ATTACHMENT 3 Staff Ret~ort to City Council August 27, 2004 Page 6 MEDICAL MARIJUANA City Approach Action Follow-up/Details . Have a marijuana Town researched and found Chico dispensary that is trying no legal precedent for such I~ to establish itself operation and plans to shUt ' down establishment Have not been Chowchilla approached Clovis Have not been Will probably adopt an approached ordinance .banning facilities similar to Rocklin's As a result of the phone Have not had any formal Dixon application, but did have calls, Town adopted an telephone inquiries emergency ordinance similar to Roseviile Two groups (who were Town had no formal Chief plans to push a total ban El Cerrito kicked out by Oakland) guidelines in book, so they With: Council; does realize he requested info about pasSed a 45-day has to be open for required process of opening clinics emergency ordinance study to take place A Grow & Distribution' After approach, PD City decided to use Gridley Center approached city department contacted cities Placerville's ordinance as a about possible ordinances model Jackson Was approached about Has an ordinance regulating clinics clubs Surveying cities to discuss Los Gatos Telephone inquiries issue With Council ActUally had an emergency Plan to prevent Paio Alto Received 2 calls ordinance adopted a few establishments through zoning years ago ordinances Paso Robles Have not been Plan to implement an approached ordinance to prevent establishment of clinics Oroville Have not been NO immediate plans to do approached anything on the issue. Will wait until inquiries are made. Received 4 inquiries and Application was denied due Piacerville one formal application for to zoning and security Town's ordinance has been in a clinic Issues. place since June 22, 2004 ATTACHMENT 3 Staff Report to City Council August 27, 2004 Page 7 Redding Have not had any City is considering taking inquiries some preventative actions Was approached about Enacted urgency ordinance Rocklin clinics July of 2004 banning clubs Sacramento Several inquiries, but no City Attorney is reviewing the effort to actually open one law to advise the City Have not been 'Considering 'taking sOme San Luis Obispo approached action, but no idea what that will be West Sacramento Had one aPplication in Denied application based last month on federal law violation, no ordinance enacted In response, city enacted an Was approached by emergency ordinance Woodland parties during the same' setting zoning and CUP ' time as other cities regulations for any possible club In summary, the experiences of other cities that already have dispensaries are bad. Dispensaries have experienced robberies themSelves; legitimate patients have been robbed of their marijuana as they leave the facility; people purchasing marijuana at the dispensaries have been caught reselling the marijuana nearby; street level dealers have begun selling marijuana and other drugs nearby in an effort to undersell the dispensary; some dispensaries have doctors present in their facility who will recommend marijuana as a course of treatment for just about any patient complaint; and many dispensaries'do not take serious steps to ensure they are selling only to legitimate patients or their caregivers. When asked, many of the police departments that already have facilities in their cities said that if Davis did not already have a dispensary, we should take steps to prohibit one from opening in the city. Yolo District Attorney's Opinion The District Attorney for Yolo County feels dispensaries violate federal law. He is unwilling to enter into any discussion about regulating dispensaries. As they are illegal, discussions about regulation give the impression that the DA's office endorses violating federal law. Yolo County Health Department SB420 requires the State of Califomia'Department of Health to work with the counties to develop a statewide voluntary identification system for patients and their, caregivers. According to the Yolo County Health Department, the State has not made contact with the counties to resolve this issue. Yolo County is waiting for the State. They have no plans on creating their own identification system as some counties have already done. ATTACHMENT 3 ATTACHMEN'r'~ q Medical Cannabis Dispensary Moratoria, Bans & Ordinances Cities with Moratoria (56) Albany Antioch Arroyo Grande Bueilton Carpinteria Ceres Dublin E1 Cerrito Emeryville Fairfield Fremont Galt Grover Beach Hercules Indian Wells Lake Forest Livingston Lompoc Long Beach Manteca Mill Valley Milpitas Mission Viejo Moorpark Newman Newport Beach Oakley Ontario Oxnard Palm Desert Palm Springs Pieo Rivera Pinole Pleasanton Pleasant Hill Pomona Rancho Cordova Redlands Richmond Rohnert Park San Leandro San Luis Obispo San Pablo Santa Clarita Santa Maria Sausalito Sebastopol Simi Valley Solvang Temecula Truckee Turlock Ukiah Union City Willits Windsor Counties with Moratoria (6) El Dorado Los Angeles Merced Riverside Sacramento Sonoma Cities with Bans (19) Clovis Concord Costa Mesa Davis Fresno Hesperia Lincoln City Los Banos Modesto Murrieta Pasadena Pismo Beach Rocklin Roseville San Rafael South San Francisco Susanville Yuba City Counties with Bans (2) Amador Sutter Cities with Established Ordinances (23) Angels Camp Berkeley Citrus Heights Dixon Elk Grove Fort Bragg Hayward Jackson Martinez Oakland Placerville Plymouth Ripon San Francisco San Jose Santa Cruz Santa Rosa Selma Sutter Creek Tulare Visalia West Hollywood Whittier Counties with Established Ordinances (3) Alameda Co. Santa Barbara Co. Calaveras Co. Americans for Safe Access 4/6/2006 ATTACHMENT AGENDA SUMMARY ITEM NO. 10.a DATE: April 19, 2006 REPORT SUBJECT: CONTINUED DISCUSSION AND CONSIDERATION OF AN ORDINANCE REGARDING CAMPAIGN REFORM- BALDWIN, RODIN Vice Mayor Baldwin and Councilmember Rodin have requested to agendize the City Council's continued discussion from February 15, 2006 on an ordinance regarding campaign reform. Additional documentation (Attachments 1-7) has been provided by the Councilmembers for review and discussion. Attachment 8 is the materials provided to the Council for the February 15th City Council discussion. RECOMMENDED ACTION: campaign reform. Discussion and possible consideration of an ordinance regarding ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Vice Mayor Baldwin and Councilmember Rodin Sue Goodrick, Risk Manager/Budget Officer Candace Horsley, City Manager 1. Memo to Council from Councilmembers Baldwin and Rodin 2. City Comparisons of Campaign Finance Laws 3. Addendum to Local Campaign Finance Reform- Case Studies 4. California Clean Money Campaign Article - March 24, 2004 5. The Governance Sector- Campaign Finance Reform Article 6. Model Campaign Finance Disclosure Law Article 7. Computerization of Campaign Finance Disclosure Information Article 8. February 15, 2006 Agenda Summary Report and backup documentation. Candace Horsley, City Manager TO: UKIAH CITY COUNCIL MEMBERS FROM: PHIL BALDWIN & MARl RODIN RE: CITY CAMPAIGN REFORM ORDINANCE DATE: April 14, 2006 We are pleased to present a comprehensive comparison of 11 cities' campaign finance ordinances as well as substantial background information on campaign finance reform in general. We hope this proves useful in considering an ordinance for Ukiah. As you will see, we have changed several elements of the proposal. The key elements in the revised proposal are the following: · A $100 limit on campaign contributions from individuals, businesses, and independent committees; · Public disclosure of contributors who donate $50 or more to a campaign; The creation of a voluntary "Fair Campaign" program wherein participants agree to a campaign spending cap of $5,000. A participant in the "Fair Campaign" program may identify himself/herself as a "Fair Campaign Candidate" in all campaign literature and advertisements, official ballot statement, receive space on the City website for photo and 500-word statement, receive mention in a City news release of "Fair Campaign" candidates. Additionally, the City would pay fifty percent of the ballot statement cost for those candidates agreeing to the voluntary spending limit. · No anonymous contributions; and · City Clerk scanning of FPPC filings until City has the financing to implement electronic filing. If you are interested in information, you might review the National Civic League's website at www.ncl.orq or the Center for Governmental Studies at http://www.c.qs.or.q/proiects/politicalreform/index.html#campai.qn. For information specifically regarding how to write campaign reform ordinances, please see http://www.brennancenter.org/pro.qrams/pro.q ht manual.html. We also have on hand the ordinances of all eleven of the cities reviewed in the chart. We have those available upon request. At our last subcommittee meeting, we discussed a process for our discussion on Wednesday evening that would balance the need for public input and council discussion with our desire to move forward promptly and efficiently. With these competing needs in mind, we propose the following: first, we briefly present the chart that compares different cities' ordinances and the elements of our proposal for Ukiah; second, we ask for public comment; and third, we as a Council discuss each element of the following proposal in order. After briefly discussing each element, we then assess if there is agreement by at least three members for that element or some variation of it. Then we move on to the next element. Hopefully, by the time we reach the end of the proposal, we will have clear direction to give our city attorney for the crafting of a draft ordinance. Ukiah City Council- April 14, 2006 Page 1 PURPOSE ANDINTENT: 1. To avoid the exercise of undue or improper influence, or its appearance, over elected officials by contributors to or independent supporters of political campaigns; 2. To promote integrity, honesty, and fairness in municipal election campaigns; 3. To encourage wide citizen participation in municipal elections; 4. To inform the public of the sources of campaign contributions and expenditures; 5. To supplement the requirements of state law with regard to the reporting of campaign contributions and expenditures; and 6. To limit the ever-increasing cost of municipal election campaigns. In view of these purposes, the city council finds that a voluntary campaign spending limit will help minimize the overall cost of municipal election campaigns, that a $50 disclosure requirement will encourage integrity, honesty, and fairness, and that a contribution limit of $100 per individual contributor per candidate will advance the city council's goals of preserving citizen confidence and participation in the municipal election process, minimize increases in the overall cost of municipal elections, while preserving the First Amendment rights of citizens to express support for particular candidates and points of view. CAMPAIGN CONTRIBUTION LIMITS: . , o A limit of $100 per adult or business to each candidate or recall campaign during the election cycle (described below). An election cycle is the period during which contributions may be collected. 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 recall (hereafter "Independent Committees") during the election cycle. Limitation of in-kind contributions or gifts to be used in campaigns to $300 for professional services and $300 for material items of any kind, based on estimated fair market value, for candidates and Independent Committees. Contributions by a person and his or her spouse shall be treated as separate contributions and shall not be aggregated. Contributions by unemancipated children are reputably presumed to constitute contributions by their parents and attributed either one- half to each parent or entirely to a single custodial parent. For the purposes of this ordinance, election cycles begin March 1 preceding a November election and October 1 preceding a June election. They end at 5 pm on the Tuesday prior to an election. This last day of the election cycle (the Tuesday prior to an rd election) is also the date on which all candidates must file a 3 campaign statement. 6. No contributions may be accepted after the 3rd campaign statement is filed. Ukiah City Council · April 14, 2006 Page 2 No carryover of campaign funds from one election cycle to another. Leftover funds may be donated to a non-profit organization, the City general fund, or be reimbursed to campaign contributors on a pro rata basis. 8. Loans---other than commercial bank loans--are considered to be regular contributions. VOLUNTARY SPENDING LIMITS: All candidates who have either a minimum of $500 in their campaign treasury or who have collected 200 signatures from registered Ukiah voters supporting their candidacy are eligible to participate in the City of Ukiah's voluntary "Fair Campaign" program. Participants in the program must accept a voluntary campaign spending limit of $5,000 by signing an agreement. All participants in the Fair Campaign program will receive: a. 50% of the cost of the ballot statement. b. Free inclusion of candidate photograph and up to 500-word statement displayed on the City's web site. c. Mention in a City news release within one week of election filing date of their participation in the voluntary "Fair Campaign" program. d. The option of using the designation "Fair Campaign Candidate" in their campaign literature and in their ballot statement. CAMPAIGN CONTRIBUTION AND SPENDING DISCLOSURE: 1. No anonymous contributions allowed. 2. Disclosure of name, address, occupation or type of business required for donations between $50 and $1004. City clerk will scan all FPPC campaign filing forms so they are available for the public to review. The City will make electronic filing of all campaign statements possible as soon as it is financially feasible. 4. These disclosure rules are to apply for all ballot measures as well. DISCLOSURE ON MASS MAILINGS, PRINT AND RADIO ADVERTISEMENTS, AND TELEMARKETING/POLLS Candidates and Independent Committees taking part in the Fair Campaign program must disclose on any mass mailings, telemarketing/phone banking of more than 50 people, radio advertising, television advertising, or opinion polling that they are a "Fair Campaign Candidate". Candidates and Independent Committees who decline to be part of the Fair Campaign program must disclose in mass mailings, electronic advertisements, and in telephone polling that they declined to participate in the voluntary spending limitation program. They must also disclose their five largest contributors with their occupations and whether 40% or more of contributions are from outside of Mendocino County. On written material this disclosure must be in at least 12-point font. I The California FPPC already requires filing and public disclosure of all campaign spending and of cumulative contributions to either candidates or Independent Committees of $100 or more from individuals, businesses, or Independent Committees. This disclosure applies to ballot initiatives, referenda, and recall campaigns as well. Disclosure must include name, address, and occupation or type of business or organization. The FPPC also requires that candidates keep an official, auditable record of the amounts, names, addresses, for all donations between $25 and $99. Ukiah City Council · April 14, 2006 Page 3 ENFORCEMENT AND PENALTIES Penalty for late submittal of FPPC filing is $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 $500 per calendar day, or any portion of a calendar day, after the deadline, or an amount equal to the total funds received (donation or loan) in the last filing period, whichever is the greater amount. . 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 $500 per violation, whichever is greater. , In addition to any other civil or criminal penalty under this ordinance, a winning candidate found legally to be in violation of this ordinance may be required to relinquish the seat won. OTHER 1. Severability clause. (If one portion of the ordinance is found to be invalid, the whole ordinance will not be found to be invalid.) Ukiah City Council · April 14, 2006 Page 4 mil o N A'i-rACHMENT Addendum to L.oca I Campaign F nance Reform Additional Case Studies NATIONAL CMC I ~FAGUE A Report by the National Civic League Supported by The Ford Foundation © 2001 National Civic League P, esearched and written by Carl Castillo Matthew Krumme Michael McGrath Melissa Nord Photographs for cover and interior by Melissa Nord Design of cover and interior by Troy Scott Parker, Cimarron Design The views expressed in this publication do not necessarily reflect those of The Ford Foundation. Printed in the U~ited States of America National Civic League National Headquarters 1445 Market Street, Suite 300 Denver, Colorado 80202-1717 Voice (303) 571-4343 Fax (303) 571-4404 ncl~ncl.org www. ncl.org/ncl Washington, D.C. Ottlce 1319 F Street N.W., Suite 204 Washington, D.C. 20004 Voice (202) 783-2961 Fax (202) 347-2161 dcpcps(.~aol.com Voluntary Spending Limits SEEKING TO AVOID the legal challenges associated with mandatory spending limitations, many localities have turned to voluntary means to address the concerns of rising campaign expenditures. These systems can be enacted into law or, instead, exist as no more than an informal agreement between citizens and candidates. When codified as law, the government establishes incentives for the candi- dates to adhere to the expenditure limits. In places such as Concord, California, Richland, Washington, and Crested Butte, Colorado, for example, the governments publish some sort of public notice of the names of candidates that have chosen to comply or not comply with a voluntary spending limit. These systems rely exclusively on public pressure as the incentive for candidate compliance. Some governments, such as Contra Costa County, Oakland, and San Buenaventura, California, offer greater incentives for candidates by offering lower contributions limits to candidates who comply with the voluntary spending limits. Instead of waiting for laws to be passed, some local citizens activist have chosen to take matters into their own hands. Working coopera- tively with the candidates and media, these citizens engage in rigorous promotion of their reform program to make a difference. Chapel Hill, North Carolina pioneered this approach in 1995 as described in the original report published in 1998. In 1999, the voluntary program in Chapel Hill led to the passage of an ordinance by the city council that Addemtum ~o Local Campa~u Finance R~form requires candidates for local office to make full disclosures of all cam- paign contributions and to linfit contributions to two hundred dollars from any one person or entity. Using this model, the city of Boulder, Colorado, chose the same route. Though their stories differ, the citizen- led efforts in both of these communities proved to be an effective means of initiating change through citizen education about the effects of money in politics. The voluntary program in Boulder, like Chapel Hill, has since led to the passage of a permanent campaign finance ordinance. Boulder, Colorado Despite Boulder, Colorado's history of approaching the electoral process in a grassroots manner, in 1995, its citizens noted a significant change in their local elections. Candidates for city council began to receive noticeably higher contributions and overall spending increased for council races. In previous elections the number of contributions over one hundred dollars from one particular individual or entity remained relatively low. But it jumped by 200 percent in 1995. The sudden appearance of more money-driven political tactics in local campaigns also became apparent. Paid political consultants, push polls, mass mailings, and paid "volunteers" altered the grass roots character of local elections. The final event reinforcing this shift was a winning candidate ,vho, in a special council election, spent four times the average amount raised by previously winning candidates. The influx of money prompted two Boulder activists to organize a series of meetings to seek input from a wide spectrum of local groups to discuss methods of controlling the problem. From these meeting emerged the Coalition for Restraint in Campaign Spending (CRCS). It consisted of representatives from The League of Women Voters, Colorado Common Cause, CoPI1KG, Sierra Club, the University of Colorado Law School, and other citizen stake- holders. CtkCS established a goal of working to introduce contribu- tion and spending limits into Boulder elections. By mid June of 1.997, CikCS had designed a voluntary reform package for Boulder modeled on the voluntary program established in Chapel Hill, North Carolina. Voluntar), Spending Limits The voluntary program asked candidates for city council to sign a pledge that they would limit campaign spending to $11,000, refuse contributions in excess orS100, and contribute no more than $2,500 to their own campaigns. 1997 was th.e first election year in which the package of reforms was applied. CRCS approached the twenty candi- dates for six city council seats with the voluntary pledge. Ten candidates accepted. CP,,CS issued press releases during each reporting period of the voluntary program. Whether candidates had signed the voluntary pledge to disclose campaign spending became a hot issue in the local media. Of the six candidates elected to office, three had signed the pledge. Of those three, two were challengers, including the highest vote win- net. And, as can be seen in the table below, the percentage of contribu- tions above $100 decreased in the 1997 election. With these outcomes, CI~CS concluded that the voluntary program was both reasonable and effective in reducing campaign contributions and spending. Summary of Contributions to City Council Candidates Exceeding $100, Boulder, Colorado Elections 1989-1999 Summary By Year All Candidates Winning Candidates Only Year Percent Over $100 Percent Over $100 1989 2.4% 2.6% 1991 2.1% 1.5% 1993 3.9% 2.2% 1995 12.9% 10.4% 1997 8.7% 5.3% 1999 2% 0%, After the 1997 elections the core melnbers of CRCS began to have concerns about the longevity ora voluntary program. "I think it takes a lot of oversight and a lot of watch dogging on behalf of citi- zens to make a volunteer pledge program functional," reported Mark Ruzzin, CRCS co-founder. "And while we were happy to do it we did have concerns about how that might continue on an ongoing basis." Members also expressed concern over the voluntary programs lacking incentive for candidates agreeing to participate. These concerns 19 Addendum to Local Campaign Finance R~mn prompted members to rename themselves Campaign Ikeform Boulder and to create ballot initiative 2D in February 1998. The measure called for the implementation of a system that included contribution limits and voluntary spending limits tied to a matching-public funds system. During the 1999 election, Campaign Ikeform Boulder ran ballot initiative 2D, as well as the voluntary program. Campaign P,.eform Boulder approached the eight candidates running for city council seats with the same voluntary pledge offered in 1997. Six candidates pledged to abide by the voluntary spending limits and take contributions of no more than $100. One candidate who refused to sign the pledge nevertheless abided by the limits established. Only one candidate exceeded the limit. This candidate continued to spend the most in the race, accepted contributions above $100, and lost the elec- tion. All of the candidates elected in the 1999 election were pledge signers. Moreover, ballot initiative 2D passed with 62.5 percent of the vote. Members of Campaign tkeform Boulder attribute the success of the ballot initiative to a number of factors. The amount of local media attention given to the voluntary system used in the 1997 and 1999 elections was credited as an effective method to raise community awareness of the need for campaign finance reform. Endorsements by the League of Women Voters also gave the citizen initiative credibility. And with help from Colorado Common Cause, the Coalition had the manpower needed to collect signatures to qualify the initiative for the ballot. 2O Campaign Contribution Limits Contribution Limits in Colorado In November of 1996, Colorado voters passed a sweeping campaign finance reform law, the Fair Campaign Practices Act. Amendment 15, as it was popularly known, enjoyed the support of a coalition of reform groups, including Colorado Common Cause and the League of Women Voters. It passed with 66 percent of the vote:The law limited contributions for statewide candidates--governor, attorney general, etc.wto $1000 and contributions to state senators and representa~ tives (and other district races) to $200. Contributions to political action groups and political parties were limited to $250 and $2,500 respectively. The law also included voluntary spending limits. Almost immediately, political opponents of Amendment 15 filed a lawsuit to overturn it, based on the issue of free speech. In August of 1999, Judge Daniel Sparr issued a ruling, upholding the general framework of the law but striking down the $200 and $1000 contri- bution limits to candidates and the $250 to PACs as being unconsti- tutionally Iow. Subsequently, however, the U.S. Supreme Court upheld a similarly restrictive contribution limit in Missouri, which suggests that the limits might have been reinstated on appeal of the Sparr ruling. In the meantime, the Colorado General Assembly during the 2000 legislative session passed a law removing the voluntary spend- ing limits and raising the contribution limits to $5,000 for governor, $1,500 for state senate and $1,000 for the Colorado House of Repre- sentatives. Because of this action by the General Assembly, a Common Cause appeal of the Sparr ruling was considered moot. In October of 2000, the League of Women Voters Education Fund, Colorado Common Cause and the Colorado Public Interest Research Foundation issued a report analyzing the effect of Amendment 15 by comparing contributions and spending in the 1994 and 1998 cam- paign cycles. The findings were as follows: · A much larger number of individuals gave money to political candi- dates in 1998 than in 1994, about 68,500 compared to 43,298 in 1994. · Individual contributors made up over 90 percent of the total con- tributors in the 1998 election versus 77 percent in 1994. continued on next page Addendum to Local Campai_qn Finance Reform continued from previous page · The average contribution in 1998 was $119, down from $277, a 57 percent decline. · Total spending for all races in Colorado dropped from $15 million to $9.4 million. · PACs made more contributions to candidates in 1998 than in 1994, but the average contributions were smaller. · Contributions from political parties dropped slightly in 1998, but a larger number of candidates received contributions from political parties than in 1994. The data indicates a pattern of success in three major goals of the amendment involving more individuals in the process of support- lng campaigns, reducing the average size of campaign contributions, and reducing the overall amount spent on political campaigns. "Amendment 15 changed the way politics worked in Colorado," the report concluded."Candidates spent more time talking to individual citizens and less time talking to special interests in order to raise money and fund their campaigns. The effect of this different style of fundraising was to involve far more people in the political process." One of the biggest impacts may have been on the gubernatorial election. In 1994, the two main candidates spent a total of $9 million on the race. In 1998, the two main candidates spent a total of $3 mil- lion. One reason for this is that the candidates agreed to accept the voluntary spending limits mandated by Amdt. l$, including a provi- sion that the candidates could only contribute 20 percent of their total spending from personal finances. The analysis concluded that the law was not perfect, noting the rise of"sham educational groups" as a way of circumventing the limits. The report suggests that these contributions could be brought"into the light"with improved disclo- sure requirements. On the web' w,w.~,~Acle,.~n_.~.o?9 ....................... office: _(3__1_0_)__481-0814 Ventura County Star, March ,24th, 2004 A Clean. Money Convert · Former foe backs public financing of campaigns By Timm Herdt Search our News Archive-~ To read Narc Spitzer's biography, you wouldn't peg him as an advocate for public financing of political campaigns. in fact, when an initiative qualified for the ballot in 1998 to establish public financing in Arizona, Spitzer was a vocal opponent. He was Republican leader of the Arizona Senate at the time. He is also a member of the Heritage Foundation, the conservative public policy think tank, and an attorney who previously worked for a button- down accounting firm. in short, he's no liberal who believes in big government. But Spitzer is a convert. Since the Arizona Clean Honey initiative passed in 1998, he campaigned for and was elected to the Arizona Corporations Commission -- roughly the equivalent of a public utilities commission. Marc Spitzer (R- Arizona), Chairman of the Arizona Corporation Commission "The world didn't end with public financing in Arizona," he said Tuesday. "]:n fact, it got much, much better." Spitzer came to Sacramento to testify in support of a bill to establish public financing of legislative and statewide elections in California. He said that when he decided to run for the commission in 2000, "]: raised my $5 individual contributions from a variety of groups, about equally divided between Republicans and Democrats. "Then ]: went out and spent the rest of the campaign talking to voters -- what a concept! People are campaigning before groups that had previously been untouched. ]:t is a wonderful thing. ]:t is a tonic." California NeWs 4/8 All Politics is Familial LA Times 4/5 Only Rich Need Apply 52 Plercury News 3/23 Wealth gives Westly leg up on Angelides/_A Daily News 3/2:[ Spending May Prove Costly to Governor LA Times 3/20 Dump the Donors LA Times 3/19 Actors Support Election Reform PlaHn ZJ Our Letters & Op-Eds National News City and County NeWs :Individual Statements ,Other Electoral Reform first Republican to run for statewide office under public financing -- was strategic. As a Republican, he said, he was concerned that unions would pay for hit pieces against his candidacy. Under the public-financing law, if an outside group spends money against a candidate then that candidate receives a dollar- for-dollar increase in public funds. His motive was to neutralize the unions' role in his coming campaign. "To do an independent expenditure against a Clean Money candidate is suicidal," he said. During the course of the campaign, a strange thing happened. Freed from having to spend endless hours raising campaign contributions, Spitzer took off across the state. "T ended up at a lot of union halls," he said. "Remember, ]: had started this to-neutralize the unions. ]:tonically, before the end of the race ]: 'had been endorsed by nearly every one of the unions. Had ! run the old country club race, raising money at wine and cheese parties in Phoenix, it would have turned out entirely differently." The California proposal, AB2949, by Assemblywoman Loni Hancock, D-Berkeley, would establish voluntary public financing of campaigns for the Legislature and state offices. To qualify for public financing, candidates would first have to collect a threshold number of $5 contributions from individuals in their districts -- 500 for a candidate for Assembly, :L,000 for a candidate for Senate, 7,500 for a candidate for statewide office other than governor, and 15,000 for a candidate for governor. Once that grass-roots base of small donors is established, the candidates would be eligible to receive public financing to conduct their campaigns. Hancock hasn't identified the source of the money for California, an estimated $74 million a year. In Arizona, the money comes from a combination of sources: voluntary check-offs on income tax returns, fees on registered lobbyists and a l0 percent surcharge on civil and criminal fines. Public financing of campaigns is a difficult political issue. Voters are naturally suspicious of a system that uses taxpayer money to pay for political campaigns. Politicians are wary of a system that would disrupt the special-interest fund-raising machine that put them into office. Spitzer says he understands the reluctance to embrace the idea, but that the benefits are too valuable to pass up. 0 0 .-- By signing this petition you authorize the California Clean Money Campaign to notify your legislators and the Governor that you support Clean Honey. The emafl will contain your information as shown. The petition may also include your address. We'll never share this information with anybody else. Provided by: California Clean Honey Campaign 11844 W. Pico Blvd., Suite 200 Los Angeles, CA 90064 Phone: (310) 837-8748 Toll free: (800) 566-3780 Fax: (310) 837-1363 ]:nfo@CAclean.org www. CAclean.org Clean Honey/ Clean Elections will... · Allow more qualified candidates to run · Reduce corruptive effects of money in politics · Restore fairness to our democracy A~TACHMENT _ e Sector Devolving Au~odty and Democratizing Decisionmaking Ask Dr. Dave 'v~'!','¢ ?iew Rules? Get our e-Bulletins Rules index and Other P, esources St~pport Our Work! Contact Us i.o.:za i Campaign F~nance Reform: Case %t~d e~,, Innovative and [qodel Legislation S~,,mmaries - National C'v~c League Nat~onai Voting Rights tnst:itute Proiect Vote Smart State PIRGs' E)e~r~ocracy Campaign 'iht: Reform Institute for Campaign and Election issues !ssues and Legal Prcu::ecient in State Campaign Finance P, el:orm -Reclaim Campaign Finance Reform In the United States, candidates for public office have always needed money to run for public office. To get it they have often depended on wealthy contributors expecting favors in return. In 1971, the federal government passed the Federal Election Campaign Act (FECA), in an attempt to combat this phenomenon. The FECA (which was amended several times until 1979) put a cap on the amount a single donor could contribute to a campaign for federal government, and required public disclosure of these contributions. But the landmark 1976 Supreme Court ruling, Buckley v. Valeo undid a portion of these reforms. The most controversial aspect of the ruling was that spending limits (as opposed to contribution limits) for candidates for public office were a violation of free speech. (However' campaign contribution limits were acceptable as long as they were not so Iow as to prevent a candidate from geting his message across.) Despite these reforms, and, in part due to the Buckely v. Valeo decision, wealthy donors have been able to indirectly contribute vast sums of money to the candidate of their choice. For instance, unlimited contributions can be made to the parties for "party-building activities", but often end up bolstering individual campaigns. The 1996 and 1998 elections for Congress and the presidency broke all previous campaign fundraising records, but Congress has failed repeatedly to act on even modest reform proposals to obstruct the flow of "soft-money". Search the site What's New - by date Local Rules Campaign Finance Reform Regional Governance Initiative and Referendum Proportional Representation Town Meetings Unified Development Budgets Civil Rights Protection Municipal Employee Residency Requirements Devolution and Preemption Privatization Procedures Anti-Piracy Ordinances Corporate Accountability Purchasing Preferences State Rules Meanwhile, the states have been plagued by the same problems afflicting campaigns for federal office. As the costs of campaigning for statewide office and state legislative seats skyrocketed over the last few decades, legislators have begun to place greater emphasis on fundraising. PACs and large donors have played an increasing role as sources of campaign Unified Development Budgets revenue, and incumbents have been outspending challengers by Civil Rights Protection larger and larger sums. The states began to respond to these developments in the 1990s by enacting a variety of different reforms. The most popular reform has been the adoption or revision of contribution limits. For instance, IVlissouri, Oregon, Montana, and the District of Columbia have limited campaign contributions from an individual to no more than $100. All of these laws were overturned by federal courts. [n 1996 Oregon passed a law allowing candidates for state office to raise no more than 10 percent of their campaign funds from contributors who live outside the electoral district. But this, too, was ruled unconstitutional. Alaska's cap on out-of-state contributions was also struck down on First Amendment grounds. The most far-reaching campaign finance reform law was enacted by Maine in 1996, and by three other states (Vermont, Massachusetts and Arizona) that have followed Maine's Campaign Finance Reform Initiative and Referendum Proportional Representation Campaign Finance Reform Corporate Accountability In-State Processing Requirements Devolution and Preemption Anti-Piracy Ordinances Corporate Accountability Purchasing Preferences Federal Rules Pre,mcr on the current ,, ~le~, governing campaign finance at the federal and state levels Governmental Ethics Program ('ar'~pa~gn Finance lr~io~mation Center - a ~,}source provided by Reporters and Editors Opensecrets.org - tracking money in p, oiiUcs by the Center ~or Responsive Politics P!L~q 7ir~g !n the Public: A t4octel for Campaign F' r',unCe Disclosure - by El~zabeth Hedlund and Lisa Yosenberg, ]_996 Election S I 0 ri' s C-.:ampa~gn Finance Law t ' ,)dFCt~S example. The main sources for the overrulings of many state campaign finance reform laws is, again, the landmark 1976 Supreme Court ruling, Buckley v. Valeo. Although the court ruled that campaign contribution limits were acceptable, it indicated that they must not be so Iow as to prevent a candidate from geting his message across. The Buckley Valeo decision has proven an obstacle to enacting effective campaign finance reform, and many activists are pushing to get it reconsidered, but the Supreme Court has repeatedly turned down cases that would allow it to reconsider its 1976 decision. A Supreme Court decison in ]aunuary 2000, Nixon v. Shrink Missouri Government PAC, was the court's first ruling on campaign contributions and free speech since Buckley v. Valeo. In it the court essentially reaffirmed Buckley vs. Valeo, by allowing state limits to campaign contributions, but not spending, so long as the contribution limit was not "so radical...as to...drive the sound of a candidate's voice below the level of notice, and render contributions pointless." However, the decision did counter a trend whereby federal courts have recently been striking down contribution limits even above the $1,000 (per individual) permitted in Buckley v. Valeo. RULES: · Clean Election Laws Thus far, four states have passed "clean election" laws, laws that provide public money for state election campaigns if a candidate agrees to strict spending limits. I~lore... Colorado Campaign Contribution Limits In 2002, Colorado voters approved Amendment 27 by a 2-to-1 margin to enact comprehensive campaign finance reform for state-level political campaigns. The amendment puts campaign finance reforms into the State's constitution so any changes in the future must be put to the citizenry for a vote. l, lore... Limits on Out-of-State Contributions Out-of-state or out-of-district campaign contributions corrupt the political process because an elected official may become more beholden to these contributors than to the community she represents. Alaska and Oregon have adopted limits on out-of-state or out-of-district contributors. Both have been overruled by federal courts as violations of the First Amendment. f4ore... · Local Campaign Finance Reform Over 80 local governments have passed some form of campaign finance legislation. The National Civic League has compiled a list. Over half of those reforms have been enacted since 1990 and it is likely that there are more reforms out there yet to be discovered. 14ore... · Nixon v. Shrink Missouri Government PAC Nixon v. Shrink Missouri Government PAC is the first Supreme Court ruling on contribution limits since since 1976, when in the landmark decision Buckley vs. Valeo, said free-speech rights trump any attempt to limit a candidate's spending, in a 6-3 ruling in January 2000, the US Supreme Court upheld Missouri's caps (of $275, $525 and $1,075, for respective offices sought). Some experts believe this decision could clear the way for limits lower than the $1,000 federal threshold. More... Buckle¥ vs. Yaleo The US Supreme Court's 1976 decision in Buckley v. Valeo constitutes a central obstacle to effective campaign finace reform. The ruling does this in two ways: First, equating money with speech, the decision prohibited governments from imposing spending limits on candidates. Second, by acknowledging that, at the same time, large contributions can be potentially corrupting and allowing them to be capped, the decsion created perfect condition for a black market in "soft money". More... ~ e-Mail this page to a Friend! The New Rules Project - http://www.newrules.org/ HOMF SEARCH PLUGGING IN THE PUBLIC 1. Model Campaign Finance Disclosure Law ATTACHMENT ~__.~_~~' In the wake of the Watergate scandal 20 years ago, a flood of campaign finance reform measures were introduced in Congress and in state legislatures across the nation. This burst of reform activity resulted in the passage of laws at all levels of government that curb some of the most corrupting sources of money on the political process. Today, 33 states, the District of Columbia, and the federal government cap the amount of money that an individual can contribute to any one campaign. Federal law and laws in at least 30 states and the District of Columbia restrict donations from political action committees (PACs), corporations, and labor unions. Nearly all jurisdictions -- 47 states, the District of Columbia, and the federal government -- prohibit or limit anonymous contributions. On the disclosure side, every state, the District of Columbia, and the federal government require some kind of reporting of the money that flows into and out of the campaign system. Public disclosure has long been hailed as the cornerstone of campaign finance laws. In fact, Congress · enacted the current federal reporting laws one year before the Watergate break-in even occurred. Today, public disclosure is the one element of campaign finance regulation that people all across the political spectrum seem to agree on -- at least in principle. According to a report by the Council of State Governments, disclosure has been at the heart of campaign finance reform in the states for the past 20 years. 1[.!.] In 1995 alone, 22 states enacted laws intended to enhance disclosure requirements.[~] //~An' effective campaign disclosure system serves three purposes: First, timely reports detailing · ,~2~.c~idates' financial activities provide voters with the information thev need to make infor ' /~ .... med choices ~c~at the polls. ~econd, disclosure can deter actual as well as apparent corruption by exposing large /contributions and expenditures. Finally, full disclosure aids in monitoring the activities of candidates / and political groups for compliance with the law. J3] Whether, and how well, these three objectives of public information, deterrence, and enforcement are met depends first and foremost on the quality of the reporting laws. The statute provides the framework on which the campaign finance disclosure system [k,~rests. ' THE ELEMENTS OF A CAMPAIGN DISCLOSURE LAW The adequacy of a campaign disclosure statute may be measured by four key elements: · Who is required to report, · What information must be reported, · The timing and frequencY of reports, and · Public access to campaign disclosure information. Currently, campaign finance laws in every jurisdiction include public disclosure provisions. Beyond this basic principle, however, federal and state reporting laws vary widely in the level of detail they require and the quality of the information they provide to the public. These variations often make 'the difference between a campaign disclosure system that works and one that does not. Based on the four elements listed above, this chapter gives an overview of the current status of campaign disclosure laws in the country. The overview is followed by recommendations for strengthening disclosure statutes, with a focus on areas of the law that were found to be particularly weak. Model statutory language is. provided in Appendices I and I1. * WHO IS REQUIRED TO REPORT Laws at the federal level and in every state and the District of Columbia require candidates and political action committees to report their campaign finance activities. All but Arkansas require disclosure by political party committees. In addition, many states require corporations and labor unions to report their political contributions and expenditures. More recently, public concern about the influence of large donations on elected officials has focused increasing attention on the campaign finance activities of lobbyists. By 1994, at least 19 states prohibited legislative agents from making contributions while the legislature is in session, with two states -- Kentucky and South Carolina -- banning lobbyist dOnations year-round. J4] Other states have chosen to address this concern through disclosure: Arkansas, California, Connecticut, Idaho, Iowa, New Mexico, Oklahoma, Pennsylvania, Tennessee, Utah, Washington, and the District of Columbia now require lobbyists to directly report their campaign contributions. While such donations are normally reported by the recipient candidate, many jurisdictions do not require candidates to identify the donor's occupation. Where this is the case, separate campaign reporting by lobbyists makes it possible to identify, for example, the recipients and total amount of donations from lobbyists representing specific business and industry interests. Similar concerns exist about campaign contributions by individuals and firms that bid on government contracts. If anything, the interest of these donors in government decisions is less visible than that of lobbyists, who normally must register and report their lobbying activities. Furthermore, most candidate disclosure reports do not indicate whether a donor is seeking or has received a government contract. One rare exception to this is Connecticut. When reporting contributions of over $1,000, candidates must indicate whether the donor has received a state contract valued at over $5,000. Another is Hawaii, where donors who receive $50,000 or more in state or county contracts must register and report with the Campaign Spending Commission. * WHAT INFORMATION MUST BE REPORTED Most important among the information found on campaign disclosure reports is the itemized, or detailed, reporting of all contributions over a certain threshold. The details required by state and federal laws include the name and address of the contributor, the amount given, and the date 'of the contribution. The only exception is Wyoming, which requires only. the donor's name, city, and state. Such itemization is crucial to identifying the sources of a candidate's financial support and to the enforcement of contribution limits. In addition, federal law, the law of the District of Columbia, and laws in 27 states now require the contributor's occupation and employer to be reported. These states are: Alaska, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Kansas, Kentucky, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Montana, New Hampshire, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South DakOta, Virginia, Washington, West Virginia, and Wisconsin. Federal law requires disclosure of donor occupation and employer for contributions totaling more than $200 in the aggregate. The threshold varies in the states. Occupation and employer information enables more precise identification of donors and, importantly, the economic interests they represent. Donor occupation/employer information enables journalists and researchers to trace patterns of contributions from a particular business Or industry sector. Identification of contributors' employers also aids in detecting "bundling" activity by corporations or other firms. Just as with contributions, campaign expenditure reporting in most jurisdictions requires itemized detail for payments over a certain threshold. This includes the date and amount of the expenditure, the name and address of the person or entity to whom the payment was made, and the purpose Of the expenditure. In addition, disClosure rules in some states -- including Alaska, California, and Oregon -- require detailed reporting of second-party payments. These are payments made by intermediary contractors or consultants authorized to make expenditures on behalf of the campaign committee; e.g., a media consultant retained by the campaign who buys air time for the candidate's commercials. In this case, the campaign committee would report its payments to the consultant as well as the consultant's payments to advertising agencies and television stations. In another exam~31e, the F~.~r~l I=l~,'.~i,-~n ~,-,,~,~.~....-'.... requires campaign committees that report payments to credit card companies to itemize the vendors, goods, and services included in the credit card payment. When it comes to reporting the purpose of each expenditure, most jurisdictions require filers to provide a brief description. This often results in free-form explanations that vary widely in clarity and detail. In an effort to obtain more precise accounting of campaign spending, Federal Election Commission rules prohibit as unacceptable such vague expenditure descriptions as advance, election day expenses, expense reimbursement, outside services, and get. out. the. vote. 5 Another example of the way in which the purpose of expenditures is clarified is provided by California, where campaign committees 'that pay travel reimbursements to a candidate, his representative, or a member of his immediate family, must also report the date, destination, and total expenditure for each trip. A number of jurisdictions -- including Alabama, California, Maryland, New York, Ohio, Washington, and New York City -- permit political committees to use a standard list of expenditure categories, either in addition to or in lieu of free-form descriptions. The use of agency-defined expenditure codes can reduce vague and inconsistent descriptions of expenditures and enable comparisons of how candidates spend their campaign funds. Where campaign reports are filed or stored electronically, expenditure codes are Particularly useful for putting the information into a database format. On the other hand, some campaign finance agencies find that the use of expenditure codes alone may reduce the amount of detail prOvided by some filers. This was the case in Ohio, where expenditure codes became necessary when the Secretary of State's office began computerizing the reports of all state candidates. However, enforcement officials such as Chief Campaign Finance Examiner Stephanie Peters saw the lOnger, free-form descriptions of expenditures as "one more tool to use in auditing for compliance with the law." Starting in 1996, new disclosure forms issued by the Secretary's office retain the "purpose" line for brief descriptions of each payment, while also requiring filers to check one of eight expenditure codes. Federal laws require detailed and regular reporting of independent expenditures by the persons who make them. Filers must indicate whether the expenditure is in support of or opposition to a candidate, along with the candidate's name and office sought. Furthermore, persons making independent expenditures must state their occupation and employer and must identify any others who contributed to making the independent expenditure. Independent expenditures of over $1,000 made in the last days before the election must be reported within 24 hours of being made. Laws in Arizona and Florida try to reduce the unfair advantage of independent expenditures made in the days just prior to the election -- Particularly surprise "attack" ads. Persons who purchase such last- minute ads must not only disclose the expenditure immediately with the agency but must also notify the affected candidates -- in Florida's case, within 24 hours of obligating the funds. * TIMING AND FREQUENCY OF REPORTS With the single exception of Wyoming -- which requires campaign reports to be filed within 10 days after an election -. all state and federal laws require campaign finance.activity to be disclosed prior to the primary and general elections. Under federal law, reports must be filed on a quarterly basis during election years. In addition, the Federal Election Commission gives certain committees the option of filing monthly reports. Federal law requires monthly reports in the case of presidential candidates who accept public funding. Candidates in Arkansas and washington must disclose their campaign finance activities on a monthly basis. In Florida, publicly funded candidates report their activity weekly during the month prior to the election.[~] A handful of states -- Connecticut, Florida, Iowa, Rhode Island, South Carolina, and Virginia - - require quarterly reporting.[Z] In many states, however, the first pre-election report is not due until as few as 12 days before the election. In an effort to capture the large contributions that often come in during the final days of the campaign, federal law requires candidates to report any late contributions of $1,000 or more within 48 hours of receiving them. Pre-election disclosure of last-minute contributions is likewise mandated by several state laws. The strongest of these appears to be that of Alaska, where contributions exceeding $250 made within one week before the election must be reported within 24 hours.[[] * P~UBLIC ACCESS TO CAMPAIGN FINANCE INFORMATION The ease and quality of public access to campaign finance information varies throughout the country. Some states require legislative candidates to file their reports only at local offices, which in turn must send copies to a central state agency. In New Mexico, for example, county clerks who receive campaign reports of state legislative candidates are required to transmit copies to the Secretary of State within 24 hours. Following the last election, however, Damacio Lopez, Research Director of the non-profit organization Re-Visioning New Mexico, found that the reports of several candidates had not been forwarded to the Secretary of State as many as 15 days after the reporting deadline had passed. In an effort to obtain complete legislative campaign data, Mr. Lopez had to drive to county seats all across the state. Campaign finance information reported under public disclosure laws should be available to anyone upon request. In jurisdictions where members of the public are allowed to handle original candidate reports, individuals are asked to identify themselves for security reasons. While security concerns are legitimate, in one state, Illinois, identification requirements are so onerous they might work to chill public access to campaign finance information. There, the public has access only to microfiche copies of campaign finance reports. Nevertheless, state law requires anyone requesting a copy to fill out a form, in triplicate, stating his name, address, occupation, employer, and the reason he wants to see the document. One · copy of the form is then forwarded to the candidate or committee whose report is requested. A survey of state disclosure offices also found a wide range of photocopying rates, from two cents per page in Vermont to $5 per page (for the first 10 pages) in Wyoming. Mr. Lopez, from New Mexico, found that many county offices charged copying costs that were twice those of the Secretary of State. An increasing number of jurisdictions are seeking ways to receive, store, and provide the public with disclosure data in an electronic format. Although relatively few have done so to date, the trend toward computerized campaign finance information is definitely taking hold. The Texas Ethics Commission, created by popular initiative in 1991, is required by law to maintain a database of campaign finance reports and to provide public access to the electronic data. The New York City Campaign Finance Board is similarly required to maintain a disclosure database. In 1993, San Francisco became the first jurisdiction to mandate electronic filing of disclosure reports by candidates. In 1995, the Hawaii and Missouri legislatures followed suit. New laws in Washington and Ohio give disclosure agencies the authority to mandate electronic filing, if the agencies choose. The Washington Public Disclosure Commission will require 1996 gubernatorial candidates to submit their reports on computer diskette. The Ohio Secretary of State's office has not yet exercised its new authority. Florida and Kentucky require electronic filing under new rules adopted by disclosure agencies in those states. Meanwhile, electronic filing measures were recently rejected in Connecticut, Maryland, and New York state. The California legislatUre also rejected a bill mandating electronic filing, but it established a task force of public officials, members of the press, and campaign, finance researchers to develop recommendations regarding electronic filing. The task force recently issued its final report, recommending a mandatory electronic reporting system. RECOMMENDATIONS The laws governing campaign finance reporting largely determine how successfully the principle of full public disclosure is met. In the post-Watergate era, the laws in some jurisdictions have undergone periodic review and reform, while in others they have remained basically static. The recommendations that follow are intended to highlight particular areas of disclosure law that need to be strengthened in the states. The most important advance is the use of electronic technology to speed the delivery of data to voters and the press. The computerization of campaign finance information is addressed in the recommendations below. The use of electronic technology to improve campaign disclosure is discussed in greater detail in Chapters Two and Three of this report. Since campaign finance agencies are authorized to prescribe forms and procedures for complying with the disclosure laws, the implementation of a campaign finance database, mandatory electronic reporting, and public access to computerized campaign finance data may be accomplished in many jurisdictions by agency rule rather than legislation. However, obtaining a legislative mandate can solidify the state's ...nmmlfm=nf fO ~t fl~llv cnmr)uterized disclosure system, including the appropriation of funds necessary ~uggested statutory language is provided in Appendix I, starting on page 45. In 1991, the Council on Governmental Ethics Laws (COGEL) developed "A Model Law for Campaign Finance, Ethics, and Lobbying Regulation." Because COGEL's recommendations for campaign finance disclosure are so extensive, they are included in this report as a comprehensive guide for drafting law. The Center for Responsive Politics thanks COGEL for permitting us to reprint the campaign disclosure portion of their Model Law in this report, r9] For those recommendations that are not covered in the COGEL model -- specifically, recommendations on computerization, electronic filing, and public access -- we provide statutory language in Appendix I!, beginning on page 51. 1. LOBBYISTS SHOULD BE REQUIRED TO DISCLOSE THEIR CAMPAIGN CONTRIBUTIONS. The potentially corrupting effect of large contributions by those seeking to influence the actions of public officials calls for. the fullest disclosure. The campaign disclosure reports of lobbyists can be cross-checked with the reports of their lobbying expenditures and activities to provide a more complete picture of the relationship between money and legislative or executive decision-making. 2. DISCLOSURE REPORTS SHOULD IDENTIFY THE OCCUPATION AND EMPLOYER OF LARGE CONTRIBUTORS. Identification of the contributor's occupation, and most especially his or her employer, is critical to determining the economic interests that are funding a particular campaign or political party. To ensure that the requirement is met, responsibility for compliance with the law should be shared. Donors should be required to provide this information along with their contributions; and the recipient candidate, PAC, or political party should be required to disclose it in their reports. 3. WHEN REPORTING EXPENDITURES TO CONSULTANTS, INTERMEDIARY CONTRACTORS, OR CREDIT CARD COMPANIES, FILERS SHOULD BE REQUIRED TO ITEMIZE PAYMENTS MADE BY THOSE ENTITIES ON THE CAMPAIGN'S BEHALF. Reporting of so-called second-party payments is necessary for a more complete and accurate picture of campaign spending by candidates, parties, and PACs. This is especially important where public funds are involved, to ensure their use is in compliance with the law. 4. CAMPAIGN REPORTING RULES SHOULD REQUIRE THAT EXPENDITURE CODES BE USED IN ADDITION TO A CLEAR, FREE-FORM EXPLANATION OF THE PURPOSE. Here again, accurate reporting can aid in monitoring for compliance with laws that prohibit the misuse of campaign funds. It can also have a deterrent effect on would-be violators. Expenditure reporting is an area where administrative rules can and should be used to promote compliance with the spirit of the disclosure law. Agencies should use their rulemaking authority to define expenditure codes, limiting the number to no more than 25. Rules should also prescribe the way in which the short explanation of the expenditure is reported. For example, as noted earlier, Federal Election Commission rules provide a list of terms prohibited as too vague and inadequate to meet the law's requirements. An example of the expenditure codes used by the Washington Public Disclosure Commission is provided as Appendix I!1. 5. INDIVIDUALS AND GROUPS SHOULD BE REQUIRED TO REPORT THEIR INDEPENDENT EXPENDITURES. INDEPENDENT EXPENDITURES MADE AFTER THE FINAL REPORTING DATE BEFORE AN ELECTION SHOULD BE REPORTED TO THE DISCLOSURE AGENCY AND TO THE AFFECTED CANDIDATE(S) WITHIN 24 HOURS. The ability to spend unlimited amounts of money[10_1 in support of or opposition to a candidate makes independent expenditures a tempting way to circumvent contribution limits. This problem alone calls for complete disclosure of such activity, in the case of last-minute expenditures in the form of "attack" ads, the candidate wh° is the object of the ads should be given notice and a fair chance to respond prior to election day. · 6. IN AN ELECTION YEAR, DISCLOSURE REPORTS SHOULD BE FILED QUARTERLY, ALONG WITH A 10- DAY PRE-ELECTION REPORT. MONTHLY REPORTS SHOULD BE MANDATED FOR CANDIDATES WHO SEMI-ANNUAL REPORTS ARE SUFFICIENT. Quarterly reporting would make information available to the public early and often enough to assist voters with their decision at the polls. Where public funds are involved, even closer scrutiny by both the public and the campaign enforcement agency is warranted. In races with a high volume of campaign finance transactions, optional monthly reporting can ease the burden on both the candidates and the disclosure agency. 7. LARGE CONTRIBUTIONS RECEIVED AFTER THE LAST PRE-ELECTION REPORT BUT BEFORE ELECTION DAY SHOULD BE REPORTED WITHIN 24 HOURS BY THE CANDIDATE. In a the final days of a hotly contested race, candidates often receive a flurry of large contributions, as each side makes an all-out effort to get his or her message to the voters. The public ought to know who is paying for that last-minute blitz. Twenty-four hour reporting of late contributions also deters delaying donations in order to avoid disclosure of the information until after the election. 8. DISCLOSURE REPORTS SHOULD BE FILED SIMULTANEOUSLY WITH A CENTRAL AGENCY AND A LOCAL GOVERNMENT OFFICE IN THE DISTRICT OF THE OFFICE.BEING SOUGHT. Information which is reported under the campaign disclosure laws should be made available in a way that affords the widest possible public access. Reporters and others reviewing all legislative races, for example, should be able to obtain the data in one central location; while individual voters wishing to see the local candidates' reports should be able to do so without having to travel, in some cases hundreds of miles, to the state capital. 9. SO AS NOT TO CHILL PUBLIC ACCESS, INDIVIDUALS SHOULD BE PERMITTED TO VIEW CAMPAIGN FINANCE INFORMATION ANONYMOUSLY. Under no circumstances should the law require that candidates be notified of each person who asks to view their reports. To do otherwise is contrary to the spirit of the public disclosure laws. 10. COSTS FOR PHOTOCOPYING DISCLOSURE REPORTS SHOULD BE KEPT LOW. Copying costs should not discourage research or hamper access to campaign finance data. Agencies should charge no more than local commercial vendors for photocopies. 11. CAMPAIGN FINANCE DATA SHOULD BE STORED ELECTRONICALLY, IN A DATABASE FORMAT. Questions of public access -- including timeliness, usefulness of the data, even cost -- are favorably resolved when disclosure agencies make use of electronic technology to store, process, and transmit campaign finance information. Data which is stored in electronic form may be viewed by several users simultaneously and without risk to candidates' original report forms. When maintained in database format, the material may be sorted and searched in a variety of ways by journalists and researchers, enabling a much fuller view of the flow of political money. 12. CANDIDATES, PACS, AND POLITICAL PARTY COMMITTEES WHICH RAISE OR SPEND ABOVE A SPECIFIC THRESHOLD AMOUNT SHOULD' BE REQUIRED TO FILE THEIR REPORTS ELECTRONICALLY WITH THE AGENCY. IN ADDITION, ANY COMMITTEE THAT USES A COMPUTER TO PREPARE ITS DISCLOSURE REPORTS SHOULD BE REQUIRED TO FILE ELECTRONICALLY. The enormous advantages of storing campaign finance data in computerized form compel a change from paper filings to electronic transmission of disclosure reports by candidates and committees to the disclosure agency. It makes little sense for an agency to accept paper reports, often prepared by computer, and hand-enter the information back into electronic form. The threshold for electronic filing should be set so that the majority of financial activity is provided to the agency in an electronic format. 13. THE INFORMATION ON CAMPAIGN DISCLOSURE REPORTS SHOULD BE MADE AVAILABLE TO THE PUBLIC IN ELECTRONIC, AS WELL AS PAPER, FORMAT. terminals to transmission by modem. Voters should be able to obtain information about their candidates on terminals at local libraries or other public buildings, or in their homes. 1[_!.]The Council of State Governments, "State Trends & Forecasts," Vol. 2, No. I (April 1993). [2]Dr. Ronald D. Michaelson, "Campaign Finance Update: Litigation and Legislation," report to the annual conference of the Council on Governmental Ethics Laws, Washington, D.C., Sept. 18, 1995. [3]Buckley v. Valeo, 424 U. S. 1, 66-67 (1976). [4]"Common Cause State Issues Brief: Campaign Finance Reform," April 1994, p. 24. 511 C.F.R. SS 104.3(b)(4). [~]Federal Election Commission, "Campaign Finance Law '94" (Washington, D.C.). [.[]Ibid. [8]Ibid. [9IA complete copy of the COGEL model law may be obtained by contacting the Council of State Governments, P.O. Box 11910, Lexington, KY 40578-1910, or by calling 1-800-800-1910. The price is $20 per copy. [10]See Buckley, 424 U.S. at 51. HOblE S E_~, C H PLUGGING IN THE PUBLIC 2. Computerization of Campaign Finance Disclosure Information ATTACHMENT "~' Strong disclosure laws will always be fundamental to opening campaigns to public view and to aiding enforcement of the campaign finance laws. However, even the best laws can fall short of meeting these goals when information detailing a candidate's fundraising activities is obscured in a maze of data, in reports that are hundreds of pages long. Converting this information from paper reports to a computer database is the key to deciphering the data quickly and easily. When campaign disclosure reports remain only in paper form, following the money that flows in and out of campaigns is a Herculean task for the press, the public, and campaign researchers. Likewise, audits of candidates' reports for compliance with the law is difficult, time-consuming, and, in some jurisdictions, impossible to complete for months or even years after the election. A number of disclosure agencies are combating these problems by computerizing campaign finance information in publicly available databases. Computerization, as distinguished from electronic filing, does not mean that filers must supply campaign finance information in an electronic format. Rather, it refers to the format in which campaign finance information is stored and retrieved after it is received by the disclosure agency. This chapter describes the ways in which the failure to computerize campaign finance data can frustrate the purposes of disclosure laws. It then gives an overview of computerization and electronic access to campaign information across the country, Recommendations for developing a campaign finance disclosure database and providing electronic public access are provided, as well as a discussion of costs. Finally, the chapter describes computerized campaign disclosure systems at five disclosure agencies .... COMMON PROBLEMS OF "PAPER-ONLY'! DISCLOSURE SYSTEMS During a day-long visit to the State Administrative Board of Election Laws of Maryland, the Center uncovered a sample of the problems typically found at agencies across the country that do not computerize information from campaign disclosure reports. The first problem encountered was the lack of security. Due to a shortage of storage space, the Board does not maintain duplicates of disclosure reports for public use. Instead, any visitor to the Board requesting a candidate's campaign finance information is given the candidate's original report. Thus, pages of irreplaceable reporting forms could be easily lost or altered. Although this did not appear to be the case with the reports we studied, there is no way that the agency could ensure the integrity of the documents. Because only paper reports are available, an in-depth study of the Maryland gubernatorial or legislative races, for example, requires a researcher to photocopy thousands of pages of reports and then key the data into a computer at her office or home -- an expensive and time-consuming process. Even a limited review of reports can be slow, because members of the public must at times wait their turn to view a candidate's file; in addition, report pages are sometimes out of order due to repeated handling by the public. The impact of a paper-only system on enforcement became evident when, in 1995, several newspapers reported that Maryland election officials had failed to detect violations of the contribution limit by a dozen individuals and businesses. With some 14,000 reports filed in a four-year cycle, tracing all the contributions from a single donor by hand becomes an impossible task. Deborah Povich,.Executive · -- ~ il ...... i _~. --I .i.i .... !--I-- ;. IIIAI:,I,I.,,,--, · c,omputerizing the data," she said, "it is like looking for a needle in a haystack." 1L!_] The result, according to one reporter, is that, "if donors choose to fudge a bit.., they can be pretty sure nothing will happen to them."[21 Legislation enabling candidates to file their campaign reports in electronic form would remedy many of Maryland's problems, but the state legislature has rejected such measures three years in a row. The state's failure to provide computerized campaign finance data has hampered both public access to campaign finance information and vigorous enforcement of the law. The result is that Maryland's campaign disclosure agency -- like those in so many other states -- has become little more than a warehouse for thousands of pieces of paper. OVERVIEW OF COMPUTERIZATION AND ELECTRONIC ACCESS As Chart A on page 23 shows, fewer than half of the disclosure agencies in the country store itemized contribution or expenditure information in a database format. Of those that do computerize campaign finance data in some way, ten state agencies and four local agencies computerize both itemized contribution and expenditure information. Six state agencies and the Federal Election Commission have databases of contribution information only. Montana, Rhode Island, South Carolina, and Wisconsin store some campaign finance information on computers, but not in databases that can provide answers to specific campaign finance questions. Of the sixteen state agencies that computerize campaign finance information in a database format, eleven do so for both statewide and legislative candidates, while five limit the candidates they include in their databases. New Mexico and Texas computerize only the itemiZed disclosure data of candidates who voluntarily file electronically. North Carolina and Ohio computerize information for statewide candidates only. (Ohio will begin adding legislative candidates to their databases during the next election cycle.) Florida's database is currently limited to information on gubernatorial candidates. However, Florida's database will soon include information on all candidates, reflecting the regulatory mandate that all candidates file electronically starting in April of 1996. The New York City Campaign Finance Board, the San Francisco Registrar of Voters, and the Seattle Ethics and Elections Commission have databases that contain itemized disclosure information, for all candidates that are required to file with those agencies. The FEC's database contains information for all federal candidates. The agencies that itemize contribution information universally 'include the name of the contributor, the amount, and the date of the contribution in their databases. A number of state and local agencies and the FEC also include the contributor's occupation and/or employer. A few agencies' databases, including those in New York City, San Francisco, Seattle, and the FEC, contain the contributors' addresses as well. Agencies that do not enter addresses into their databases usually cite a lack of resources as the reason. The time in which agencies' campaign finance disclosure databases are completed ranges from days to months after disclosure reports are filed. New York City is able to upload itemized disclosure information from electronically filed reports at a rate of 1,000 transactions every ten minutes. It keys data from paper reports into its database within two weeks of filing. The Colorado Secretary of State's office takes approximately 48 hours to computerize campaign finance data. The Washington Public Disclosure Commission can usually have candidates' contributions and 'expenditures keyed in within 72 hours of filing, and the Michigan Secretary of State has campaign finance information on its databases within two weeks. Databases in other agencies may not be complete until months after the filing deadline, often after the election has taken place. Agencies that have computerized information often find that the most efficient way to provide the information to the public is through various electronic formats. The Federal Election Commission makes computerized, pre-formatted electronic reports available on its in-house terminals, its dial-up system, and on the Internet. The menu-driven reports are programmed to search the database, allowing users to easily retrieve information about individual contributors, PACs, party committees, and candidate committees. In addition, users can search the system for contributors by name, employer, residence, or date of contribution. In Washington, total contributions and expenditures for state House or Senate candidates, lists of contributors and their recipients, and lists of recipients and their contributors are available through the Public Disclosure Commission there. In addition to preparing easy-to-use, pre-formatted computer reports, many agencies provide access to ,~,~, ,~o,.I,-,o,,,.,- ~l~f~l.~ if.~lf_ Th~. Illinois State Board of Elections; the Elections Divisions of the Arizona, Idaho, and Michigan Secretaries of State; and the North CarOlina State Board of Elections are among the computerized agencies that either give away or sell complete databases on diskettes for in- depth, targeted research. The most ambitious efforts to provide campaign finance information to the public electronically involve making the information available on the Internet. The Washington Public Disclosure Commission was the first to provide internet access to its disclosure databases. J31 The FEC,[41 the Seattle Ethics and Elections Commission,J51 and the San Francisco Registrar of Voters soon followed suit. San Francisco worked in conjunction with the California Voter Foundation to put a voter guide on a World Wide Web site in October 1995.[61 The guide included a database of campaign contributions and expenditures for · mayoral candidates. Current data from all candidates' electronically filed disclosure reports was available on-line prior to the mayoral election, giving voters additional information to use when casting their ballots. Klm Alexander of the California Voter Foundation notes that "on-line voter information gives the voters control over their own education process." As computer use continues to skyrocket, more and more people will turn to the Internet as a source of information. Some agencies not yet tapped into the Internet make disclosure information available through dial-up systems. The Federal Election Commission was one of the first agencies to make its disclosure data available on a dial-up system, for a fee of $20 per hour. Users in Colorado and Texas can also call to get hooked up to these agencies' systems, although the price varies Considerably. Dial-up information is free in Texas, but it can cost up to $1,000 annually in Colorado. Although electronic access to computerized campaign finance information should satisfy the research needs of a majority of users, a number of agencies use their computerized information to regularly publish reports that examine significant fundraising patterns and trends. For example, the New York City Campaign Finance Board uses its database to analyze contributions and expenditures, generating six reports covering all races throughout the election cycle. The Federal Election Commission regularly issues press releases which analyze campaign finance activity. Additionally, after each two-year election cycle, the FEC publishes a report covering all financial activity for the cycle. RECOMMENDATIONS To improve public access to campaign finance information and to aid in enforcement of the law, the Center makes the following recommendations: 1. DISCLOSURE AGENCIES SHOULD DEVELOP DATABASES FOR .STORING CAMPAIGN FINANCE INFORMATION. In order to alleviate the problems found in Maryland and other disclosure offices, campaign finance data should be entered into a database. While many disclosure agencies use computers to record and track filings of required reports, these functions alone are not sufficient for an agency to be considered computerized for publi, c access or enforcement purposes. It is also inadequate for an agency to enter only summary information, such as total contributions or expenditures, into a database. At a minimum, computerization requires that itemized information for every contribution over a certain threshold be entered into a database. To facilitate complete analysis of contribution sources, the database should include the contributor's name and address, the date and amount of the contribution, and the occupation and employer of the contributor, if reported. Agencies may also wish to enter expenditures, loans, and transfers into a campaign finance database. Recommendations for developing a database are included in the section "Creating a Campaign Finance Disclosure Database," below. . AGENCIES SHOULD MAKE CAMPAIGN FINANCE INFORMATION ACCESSIBLE TO THE PUBLIC IN ELECTRONIC FORMATS AND SHOULD USE THEIR DATABASES TO CREATE AND PUBLISH ANALYSES OF CAMPAIGN FINANCE ACTIVITIES. To satisfy the wide range of user needs, agencies should make campaign finance disclosure information available in a wide variety of formats. The Center makes the following recommendations: ....... . ......... .._._ x.. ..... ,..I'.A~I.,,..o..,... ..,,~,.~..,~ upon filing. An agency that takes a few days or weeks to hand-enter data from paper reports into a campaign finance disclosure database must nevertheless make copies of the reports themselves available to the public shortly after filing. Likewise, electronically filed reports should be accessible via computer shortly after receipt by the agency. Agencies should provide public access to computerized campaign finance information in the form of electronic reports, and in a database format. Pre-formatted electronic reports should be provided to enable users to get answers to the most common campaign finance questions at the touch of a few keystrokes. Agencies should also supply complete campaign finance databases to allow sophisticated users such as reporters and researchers to download and sort the information for more specialized research. Agencies should make computerized campaign finance data available on-line. To make access to campaign finance disclosure information widely available, reports and databases should be available to users on-line by way of the Internet or a reasonably priced dial-up system. Jurisdictions should also consider putting computer terminals in numerous public buildings such as libraries and courthouses, so that individuals who don't have the necessary computer equipment to receive information on-line can still have access at locations throughout the state. Agencies should provide their own analysis of campaign finance data. Public disclosure agencies should provide their own analysis of campaign finance data, because, as Robert Biersack of the FEC's Data Systems Development Division points out, "an organization that has institutional objectivity [should] perform that process." At a minimum, the agency should release summary information after each election cycle, informing the public of total receipts and expenditures for each candidate, as well as the largest individual and PAC contributors. If the agency has the resources, it should also provide interim reports that come out prior to the election. CREATING A CAMPAIGN FINANCE DISCLOSURE DATABASE The importance of creating an accurate, timely campaign finance disclosure database cannot be overstated. Because disclosure data can be computerized incrementally, developing the database, need not be an overwhelming task. The recommendations below draw on the experience of agencies that have improved enforcement and public access by computerizing disclosure data. The following five steps should be taken in order to create a campaign finance disclosure database. 1. Select the categories of filers to include in the database, starting with committees that hold the widest public interest. 2. Enter, at a minimum, itemized contribution information. 3. Set a threshold amount for contributions to be included in the database. 4. Ensure the accuracy of. the data entered into the database. 5. Enter the data immediately after receiving the disclosure reports. Each step is discussed in detail below. 1. SELECT THE CATEGORIES OF FILERS TO INCLUDE IN THE DATABASE, STARTING WITH COMMITTEES THAT HOLD THE WIDEST PUBLIC INTEREST. Ideally, a campaign finance disclosure database will include extensive financial data from every committee, including candidate committees, PACs and party committees, active in every race from school board to governor. Disclosure agencies that have to act within the constraints of their resources must usually limit the information that goes into their databases. Because the public's interest is generally focused on major races, campaign finance disclosure databases can be limited to certain committees, yet still be responsive to the public's needs. A complete look at developing a campaign finance disclosure database is available in the Follow the Money Handbook by Larry Makinson, available = .... s _~.. .... ;...~,~ ,r,,, ~,~,~,~,. f~,. 1:3--en~rteit~.~ Onlifi~.e I::v~_~rnf~ frnm fha hnnk that nrnvide technical hints on setting up a basic campaign disclosure database can be found in Appendix IV. A database may contain data for statewide and legislative candidates, or statewide candidates only. A jurisdiction may also decide to include data for the highest spending PACs, or for committees active in highly controversial ballot questions. 2. ENTER, AT A MINIMUM, ITEMIZED CONTRIBUTION INFORMATION. A campaign finance disclosure database starts with itemized contributions to candidate committees. A truly complete database will also include expenditures, loans, and other financial transactions. Itemized contribution data includes the contributor's name, complete address, the contribution date, and the amount of the contribution. If the disclosure laws require contributors' occupations and employers, a disclosure database should include both, since that information is perhaps the most important to determining the economic interests of a candidate's financial backers. If the agency limits the information it keys into its database, it would be better, for public access purposes, to exclude the contributor's mailing address rather than the occupation and employer information. 3. SET A THRESHOLD AMOUNT FOR CONTRIBUTIONS TO BE INCLUDED IN THE DATABASE. Disclosure agencies that enter the data by hand will have to set a dollar threshold for contributions to be entered. In most cases, this should be the same threshold as that required for itemization by campaign committees. If itemization thresholds for campaign committees are very Iow, agencies may conserve resources by setting the data-entry threshold for aggregate contributions somewhere between $100 and $200. The sum of contributions that do not meet the threshold should also be entered. 4. ENSURE THE ACCURACY OF THE DATA ENTERED INTO THE DATABASE. Accuracy in transferring information from paper reports to computer databases is critical. The best way to ensure accuracy is to institute electronic filing, which allows information that is keyed in by the filing committee to be directly transferred to the agency database. If electronic filing is not yet in place, agencies can employ a method known as key verification, which involves keying all contribution information into the database twice. The two sets of data are compared by computer, and those entries that do not match-up are then verified by checking the entry on the paper report. Key verification is used by both the FEC and the New York City Campaign Finance Disclosure Board. Daniel Sedlis, First Deputy Director of the Board calls key verification "the core to setting up a good system." In random samplings of its campaign finance information, Mr. Sedlis said that they have "never found a material error in data." 5. ENTER THE DATA IMMEDIATELY AFTER RECEIVING THE DISCLOSURE REPORTS. Agencies that receive paper disclosure reports have to make data entry a priority in order to speed access to campaign finance disclosure information. For some agencies, this may mean hiring additional temporary staff at filing time, or turning to outside contractors to key in the data. Electronic filing largely negates concerns about the speed of data entry, since electronically filed data can be uploaded to databases within hours of receipt. THE COST OF COMPUTERIZATION Adequate funding is, of course, necessary for a computerized campaign finance disclosure system. The purpose of disclosure laws is thwarted when legislatures fail to provide funds for the use of electronic technology to process and disseminate campaign finance information. Disclosure agencies cannot become more efficient if they are burdened with a paper-only reporting system. Whatever the initial investment, the cost of failing to computerize, in terms of inadequate enforcement and minimized public access, far outweighs the financial outlays required to establish a campaign finance database. The three factors that have the greatest impact on cost are software, hardware, and upkeep. *' SOFTWARE DEVELOPMENT A relatively easy and cost effective method for developing a campaign finance disclosure database is to purchase commercial database software. Off-the-shelf software is capable of performing the basic functions needed to aid enforcement and public access. The North Carolina State Board of Elections uses Professional File software, an off-the-shelf database program, to computerize contribution and expenditure information from statewide candidates. Public access is enhanced because the Board of Elections makes the database available free of charge to any one who supplies his or her own disk. As an alternative to using off-the-shelf software, campaign finance disclosure agencies that have a systems analyst or other computer expert on staff can develop a database in-house. Designing a database should take a programmer from a few weeks to no more than a few months, depending on the complexity of the functions performed by the software. With the exception of the staff member's time, in- house software development is free to the agency. In-house development is particularly attractive where campaign finance disclosure is a function of the Secretary of State's office, since there will usually be staff with technical expertise to develop the database. Because the staff will be familiar with how to make changes to the system, a database created in-house is amenable to future growth. In-house computer programmers must be certain to work closely with enforcement division staff, in order to ensure that the program is helpful to audit campaign committees. Programmers should also contact members of the press and other frequent users to make sure that the system is responsive to the needs and interests of the public. The Division of Elections for the state of Colorado took advantage of the staff and equipment at the Office of the Secretary of State to develop a disclosure database. Before they made the database part of the state's on-line Direct Access System, programmers contacted local newspapers to get their opinions on what the database should include. The Illinois State Board of Elections also used in-house programmers to develop its comprehensive database software. If the agency does not have sufficient expertise to create its own software, outside consultants can help to develop a dynamic database that can take the agency well into the future. Besides designing the database, consultants can make suggestions regarding equipment, provide training to agency staff, and ensure that the system is able to incorporate changes in the reporting laws or the introduction of electronically filed campaign reports. The New York City Campaign Finance Board used outside consultants to assist in the creation of its campaign finance databases. *EQUIPMENT NEEDS Computerizing campaign finance disclosure data need not be a complex task. At its simplest level, a campaign finance database can be created using one computer and one person for data entry. While such a scaled down version is better than no computerization at all, it might not be capable of satisfying all public access requirements, nor would it be amenable to future growth. Additional equipment may be necessary to provide on-line access to campaign finance information or to accept electronically filed reports. A campaign finance disclosure agency may have to upgrade its computers if its existing equipment does not have enough hard drive space to store campaign finance databases or enough memory to run programs that sort data in ways that meet the needs of the agency and outside users. Equipment purchased today need not be the most powerful models available, but it should not be obsolete by the next election cycle. A campaign disclosure division that operates within the office of a Secretary of State should be able to save on equipment costs by taking advantage of existing computer systems that are in place for other functions of the office. Elections divisions in Colorado, Michigan, and Florida -- all housed within the Secretaries of State's offices -- made use of existing equipment when computerizing campaign finance data. Agencies can also lower costs by providing new computer terminals only for those staff members requiring regular access to the database to key in data or to respond to requests for information. Those not needing frequent and immediate access to the data should consider foregoing computer upgrades if there are budgetary concerns. Agencies should also provide at least one terminal in the disclosure office for public use. * DATA ENTRY NEEDS Besides the cost of establishing a campaign finance disclosure database, an agency will incur regular · expenses keeping the database up to date. Colorado and Washington are among disclosure agencies that control costs by keying the data in-house. Another Iow cost option, used in Illinois, is to hire temporary staff to assist with data entry just after filing deadlines. The FEC uses a commercial data entry service to key campaign finance information into a database. Commercial data entry may be the most expensive option, in terms of real dollars. The payoff is that agency staff will not be tied up with time-consuming data entry work. COMPUTERIZATION AND PUBLIC ACCESS AT FIVE AGENCIES An agency that computerizes disclosure information should make that information available to the public in electronic format. Below are detailed descriptions of computerized systems in five jurisdictions: the FEC, Washington, Illinois, Michigan, and Colorado. For a description of public access at agencies that accept electronic filing of campaign reports, see Chapter Three. THE FEDERAL ELECTION COMMISSION The Federal Election Commission maintains a publicly accessible database of all individual contributions of $200 or more to candidates, PACs, or party committees. PAC contributions, independent expenditures, and summary information are also computerized and are accessible on-line and on terminals at the FEC's Public Records Office. Public access to the FEC's databases is also available at a number of state disclosure agencies nationwide and by way of the FEC's Direct Access Program, an on- line subscription service that provides access to campaign finance information for a fee of $20 per hour. Recently, the FEC made some of its databases available free on the Internet. The FEC's home page contains charts and summary data for every federal candidate, as well as FEC publications and press releases. An FTP site includes 1996 contributor databases. Within 48 hours from the time a report is filed, some campaign finance information, including the date the report was received and total receipts and disbursements, is entered into the database. Disclosure reports are also available on microfilm or optical-imaging system during that time. Itemized individual contributions are usually available on the computerized database six weeks after the filing deadline. The delay is due in part to the volume of transactions the FEC enters. In October of 1994, for example, 280,000 transactions were entered in the database. The process is also slowed because the FEC's Data Systems Division encodes each report with identification numbers for committees and candidates, as well as for each transaction. Detailed computerized data, which is available as far back as the 1977-78 election cycle, is entered into the FEC's databases by an independent contractor for less than $100,000 annually, according to Robert Biersack of the FEC's Data Systems Development Division. Computerized data is sorted to answer a number of common queries, and is available on the FEC's in- house, state access, and on-line systems. Included are indices that list, alphabetically or by state, the names of individuals who gave $200 or more to a candidate. Users can also search the system for contributors by name, employer, residence (city, state, or zip code), or date of contribution. Reports listing contributions made to candidates by PACs or party committees are available as well. Besides providing formatted reports, the on-line systems allow subscribers to download unformatted data that can be loaded directly into their database or spreadsheet programs. If researchers do not want the entire database, they also have the option of selecting any of a number of subsets of the database to download, paying only for the information they need. Newspapers and organizations specializing in campaign finance research can also purchase magnetic tapes for in-depth, targeted research. THE WASHINGTON STATE PUBLIC DISCLOSURE COMMISSION The Washington Public Disclosure Commission, long a leader in public access, has made computerized campaign disclosure information available since 1987, when it developed a database in-house. Recently, the Washington PDC became the first disclosure agency to make its campaign finance information available to users free of charge over the Internet. Reports available on the Commission's World Wide Web site include: total contributions and expenditures for state House or Senate candidates, listed in descending order; lists of contributors and their recipients; and lists of recipients and their contributors. Users can also download the Commission's databases to perform targeted research. Recognizing the importance of the timeliness of the information, the PDC usually can have the data u .... 4; .... ;~kifl T"J kn,,,.e nf r,',~',,',h~inn fha ~.nnrlit4nfa'.ct diRr:.ln.ct[[ra renort, althouclh it can take uo to a week immediately prior to an election. Two members of PDC's staff enter contribution and summary information for approximately 300 candidates. Information on over 8,500 committees is keyed in as well, to varying degrees of detail. Currently, the PDC keys into its disclosure database the name, occupation, employer, city, and state of contributors whose aggregate contributions total $100 or more. THE ILLINOIS STATE BOARD OF ELECTIONS In August of 1995, Illinois debuted a publicly available database of itemized contributions to all candidates for statewide and legislative offices. Illinois developed in-house software that permits users to sort the data in any of a large number of ways. For example, a user can find out such specific information as the names of all contributors who gave $500 or more to any Republican state senate candidate. Users who want to explore the database can use terminals at the Board's office, where the staff will suggest ways to use their software to get the information the user wants. Alternatively, users can buy the complete database on diskette for 3/4cents for each transaction and download the information to their own programs. The entire file costs about $400. Currently, modem access to the database is not available. The Board's Executive Director, Dr. Ronald Michaelson, says that on-line access, in conjunction with electronic filing, will be the Board's next step toward further improving public access. Computerized public access was implemented in stages over a period of three years, at a total cost of between $60,000 and $70,000. The first stage involved inputting basic candidate committee information into the system and tracking committees' filings. During the second phase, the Board developed programs to maintain summary information -- such as total contributions, expenditures and cash on hand -- in an electronic format. The third stage culminated with the in-house development of a disclosure database and the hand-entry of itemized contributions. The Board decided not to include expenditure information in its database because of problems it had characterizing committees' expenditures. When electronic filing is implemented, the Board will consider using expenditure purpose codes in order to facilitate inclusion of expenditure information in a database. J7] The Board's computer staff developed the entire program in-house. Outside contractors enter the information into the database, which is usually complete within four weeks of filing. Dr. Michaelson expects the use of the data to rise as the election season gets underway and as word spreads that the information is available. THE MICHIGAN DEPARTMENT OF STATE -- BUREAU OF ELECTIONS In 1994, the Bureau of Elections of the Michigan Department of State started computerizing campaign finance information by keying in summary information, contributions reported by candidates, and expenditures reported by PACs. The data is available in a database format, with the added benefit of an integrated imaging system that allows users to obtain and pull up an image of the report that contains that data. Users can access information at a terminal at the office or on a diskette, for which the agency charges $10. The agency also has a dial-up system that is currently being revised to make it more user friendly. The Bureau of Elections provides manuals and trainings to teach people how to use the system. According to Dawson Bell, a reporter with the Detroit Free Press, Bureau staff members are willing to work one-on-one with users who want to learn the system. Computerized records include itemized receipts and in-kind contributions for candidate committees and itemized expenditures made by PACs. The database also includes qualifying contributions for publicly funded gubernatorial candidates. Timothy Hanson, the Director of the Bureau, says there is "no question" that the Bureau has benefited from the automation and computerization at use throughout the Department of State's office. Data entry of campaign finance disclosure information, which is complete within two weeks of filing, is performed by staff who normally key in state motor vehicle information. To further improve public access, Michigan is moving forward with plans to implement electronic filing of campaign finance information. The Bureau of Elections expects to have a voluntary electronic filing system in place by the 1996 elections. ;l'he Elections Division of the Colorado Secretary of State's office added its campaign disclosure database to the state's Direct Access System, originally developed to provide users with corporate and Uniform Commercial Code information. It took the in-house information systems department approximately four months to develop the campaign finance data system. The Secretary of State's data operators enter contribution and expenditure data into the system within approximately 48 hours of the filing deadline. Scanned copies of committees' campaign finance reports are available for 50 cents per page from eleven in-house terminals. Because it computerizes campaign finance information, the Elections Division is able to compile a summary of contributions and expenditures made on behalf of candidates and ballot questions as well as an alphabetized list of contributors and their recipients. The summary sells for $10 and is available approximately six months after each election. The alphabetical list of contributors is available beginning the fourth working day after reports are filed and sells for $15. Access to the campaign finance databases is limited to subscribers to the Direct Access System, who pay $1,000 annually. Those users able to afford the subscription rates can select from a menu to receive summary information on candidates and committees, information on individual contributions, and average contributions received and expenditures made by candidates. Subscribers are unable to perform more targeted research because the campaign finance database cannot be downloaded from the Direct Access System to a user's computer. The Elections Division will use the database to respond to telephone requests for specific information not available on the Direct Access System. If there are enough repeated requests for a particular type of calculation, Brian Balay, a systems analyst at the office, says they may format reports to respond to those queries. Of the database, he says, "the foundation is there to do what [users] want it to do." CAN INFORMATION BE SCANNED INTO THE DATABASE? "Scanning" is a technique by which paper disclosure forms are electronically read into a computer. Scanning is effective for storage and retrieval of the image of a campaign finance report. However, it has some limitations when used to load information on a database. In 1991, the San Francisco Registrar of Voters attempted to scan campaign finance disclosure reports. It found that the scanners were extremely sensitive, and if the reports were not typed with precision, the information could not be read as data, and so could not be sorted. The Registrar stopped using scanning in 1993 and has since instituted an electronic filing program. Scanning technology -- particularly the software -- has improved since San Francisco first tried it. Despite the advances, scanning still places a burden on limited agency resources because of the time it takes to "clean up" the scanned information before it can be put into a database. II]Common Cause/Maryland, press release, "State Contributions Limits Violated; Law Goes Unenforced," August 8, 1995. [~]Tom Stuckey (Associated Press), "Computers needed to enforce limits on campaign donations," The Washington Times, August 13, 1995, Al0. [3~The Washington Public Disclosure Com~nission's World Wide Web address is http://www.wa.gov/pdc. [~]The Federal Election Commission's World Wide Web address is http://www.fec.gov. [5]The Seattle Ethics and Elections Commission's World Wide Web address is http://www, pan.ci.seattle.wa.us/seattle/ethics/ethics.htm. [~]The San Francisco Registrar's World Wide Web address is http-J/www, election.digital.com/. [[]See Chapter One for a discussion of expenditure reporting. AGENDA SUMMARY A'r'I'ACHMEN~ 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 Mayor 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 Counciimember Rodin Candace Horsley, City Manager 1 - Memo from Rodin and Baldwin dated February 15, 2005 2 - Practical Campaign Reform for States - The Reform Institute APPROVED~ Candace Horsley, City Mana~r ._._.'ll/~,~,~H 3^TTA 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 government~, 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 turn, promote local democracy by reducing the influence of money and enhancing public trust, participation, and discussion of public policy. More than 75 local governments nationwide ~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 majority 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: Practica/Campaign Reforms for States. The Reform Institute. (Year unknown) Page1 CAMPAIGN CONTRIBUTION UMITS: 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 material 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 t° 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.) 5. 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.) 6. Limits will be indexed to'the Northern California 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 1 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 primarily 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. iDisclosure shall include name, address, and occupation or tyE_e of business or - - - ~~t [sct]: ! ~ cl~,g !. o rgani-z~n' (~u-s{' I~k~-F-P-P~-f-0 ~'~s-).-(~e- r~e-e~ -a-s-c~ ~c[U~ ~f'd~:lo~r~.-I.~ [=15 ~(~ ....... ['wb° & what mu~t ~Cl~ ~oiv. ~,. schedule enough-other than requiring the pre-election report?) (Rationale: To see what interests, if any, are supporting the candidates.) 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 prior to the election shall be reported to the city clerk by noon on the Friday 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.) 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.) Ail 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 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. Page3 Independent Committees that agree to a voluntary camPaign spending limit of $5,000 shall be permitted to use thephrase "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 persons, 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 ~laundering" campaign contributions. Upon discovery by any candidate, committee, or campaign treasurer of the receipt of any such "laundered" 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. 2. 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.) Page 4 .... : ..... ;~: ..... .. -' ii::f'. ';:::~:!:-(";P~esident/. .... ~egal Counsel" '/L['~ . ..' . , .. · . - . -.....:::[[ '.'.--..:. .... /-[[ ::: .:.;: ~. . ... ,::/:~:~:;;: :'-CECIL',~ 1. MARTINEZ Ex~utiv~ Director' ' == ~,,..': . ...... . _ .- ... · . '~ -.- .... '. . ...... . . .,:.. ....... . . ..-. :~ ~.p=,.7 ..i. :',*~ ENHANCING VALUES: . ..- ... MPAIGN REFORMS FOR STATES ~'~ /'~ ~ .: ., . UECT DIRECTORS '; (:~:~?:. ~.'.,.p~f~soi::~6f :"Government:: :;:. ,::~ :..,'..1 [. :..:.. - '%' ' '":?~" :~= "':1 ....... ' :': ':' " " -~'-. : .... DAN I E L O'RT I Z .',t · .., > .; .-,~. .~..::~::~:.:~:.~: :~..... ,, Professor of Law University of Virginia -.'-' ,:-..: .~.:.,-.-::~[: .. ...... :- ~...,. ~ -,. ~(/?':?: ::'~:~"'::'":: ... 'of Law " , ..... ~ ~ .:.~: ~::: ~:- ..: .:¥,:, ~::~ :.. -A'.) :':::~.,: : ~.~ -' .'." "' ' '.: 'L.. ~'." .,~.... :. ~..:.,' .,....":,7.,.:: ' "~!:::!',.:i[~he ..'~'~f~' Institute. .~. 211 North' Union.street,-Suite 250 A!exandria, VA 223:1.4 · ?'-,::-,-:.~,... : ,-!:.:~::~Tel (703.)535-6897 ...... ,FaX....:;(7~3) 29:9-911o -' ,rminstitute.org .. .., ' d .... .~: ,,./' . .:; .- .. · -, ...... -, * .,.. :. -:'::. '%,.,,?....,- . · I ODUC N THE PRINCI'PLES and Goals o/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 gathe~ 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 f-ul- 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, wtzich 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 c:mdidates, 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 -A-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 con~-nunicate 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 tim'ce 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 cormptive 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 am no limits placed on political contributions, and when contributions are not disclosed to the public in a timely mariner. 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 roi' 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 for 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 activiN 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, rules that promote transparency and public review can be an effective veNcle for identifying and addressing financial abuse. Disclosure is therefore a necessary, but not sufficient, means of safeguarding fl-~e 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 inforrnation about a particular candidate or political committee, or the comribution 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. 4. Campaign finance laws should empower citizens and reduce the influence of special interests. A truly representative goverrunent 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. Refbrms that serve this purpose include: ENHANCING VALUES. PRACTICAL CAMPAIGN REFORM FOR STATES A-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 st:md 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 for administering and implementing regulations, set forth clear enforcement procedures, and contain strict penalties tbr violating the rules. Adequate budgetary support and staffing is also essential, since the agency or office responsible for the law can ca~W out its functions only it' 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. ' .-.,':'!.':!,-:.to"take:an active role in the nation's dem-. i .. i!'~::..''' :'6c-ratic!iinstitutions: The Reform InstitUte's .... i' '.,:.:.~ ~' '- 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- · - . . ...... .~. tjci. pation 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 th'ose goals by pro- .. . '. m°ti'ng open and fair elections, by reduc- ing the influence of special interests in ou~ politics, and by'neutralizing the politi- · cai influences percolating into the reform debate. ' The Institute is a unique, independent voice in the constellation of watchdog .0rga'nization~;. We are entirely non-- partisan and' strive' for' objectivity in our approach. We believe the reform iagenda · ' ......::. ~'an 'only flourish when partisan politics . ...,. 7::a're:~largelyl removed..from the debate. . .. .............. The .Institute brings together a. broad . .'.'-':";':.i base of reformer's from all. ideOlOgical ii.'ii,~. ?:'.i.' "'~" "- '. ' '.:' · · ::...... :. · ; '.:, .,,.: .::~ i.;~ ..,'~ ;. :?..:::: ... ..,~ . . . .. ': .... · .-', __ _ :.. ~ - . .,.-., .!¢~:~,, ",. -:.. .... ,:.... ':..... -..';:;'-.,:~ .. -..~,~...~.-.:. -..~,.;:'::.". ~... ~ ..;:',~..:?.: .7_:-....~..;i...· ... ;', ' . " . ;', J ...,;'.;;~i~--,":" - :'. '... -i"' ' ':" '''!''i? - .. · · '.'. .... . · . . '":": '" ':0::. '":'::' i: ::;i .'! ::.:i-:: :: -":: ":.'0"U R U N i 'E; i'N D:EP E'ND E:NT "VOIC · E .... :,' " -:' "~ . . .'"' · · '~ · ;..'..? ;"., "", ' . '. . i""" ' ~": '. ~. '."" ~ . · , .,: .¢ .,-:. ..... ~.%...'~'., .'.'.,'... , ;. ........::. ~' ~,.' ..~. . ' . . ...:.: ': .... :;.:.:! '. -:?~' -.:: .-;...' -:i'"" ' ~".' ',::"':: ;" :...:?" T:he:~i~h.of a fiee S0cie~ aan be"meas, spe'ctrums,:.i:nclu:di'ng busineSs leaders; ::.:::.¥.~. ·..: ... . ::'_ ...... ;-' ured:.:,. .. by.the::~il'lingness of... . _ ..ord nary people:, elected .o~Cials:.and, most impOrtantly,. :!'aVerage:?mericans who' are tired o.f pop itics as usual and have been.inspired by senator McCain's principles of reform. . The institute's di'stinctive network is reflected'in the members of our Adv sory Board'?a bipartisan group of notable academics, .legal experts, elec- tion administrators and publi~ 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 . . ~senator Joh.n.McCain's work in campaign finance and eleotion, reform, and to work 'tOward: a moCe responsive, open democ-' Cacy for all Americans. AGENDA SUMMARY ITEM NO: 10.b DATE: April 19, 2006 REPORT SUB.1ECT: RECEI'VE STATUS REPORT CONCERNI'NG SI'GN ORDTNANCE ENFORCEMENT ACTI'VI'TI'ES SUMMARY: The purpose of this Agenda :Item is to provide the City Council with a Status Report concerning Staff's efforts to enforce the City's sign ordinance. Current Siqn Violation Cases As a starting point, the Code Compliance Coordinator has been focusing on unauthorized banner signs on State, Perkins, and Gobbi Streets. To date, 33 violations have been identified and Staff has made face-to-face contact with the property and/or business owners to discuss the violations (see Attachment No. 1). A"Resource Guide" detailing the City's sign regulations has been provided to help the business owners explore their signing options. As of April 11th, 24 of the 33 unauthorized banners had either been removed or received Staff approval, pursuant to the Ukiah City Code, for a 30-day special event or grand opening. The Code Compliance Coordinator is monitoring the cases, expanding his investigation area, and continuing to distribute sign regulation information. Staff will continue to provide the Council with monthly progress reports. RECOMMENDED ACTTON: Receive report. ALTERNAT]:VE COUNC]:L POL]:CY OPTTON: N/A Citizen Advised: N/A Requested by: City Council Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager and Chris White, Code Compliance Coordinator Attachments: 1. List of sign violation cases APPROVED: Candace Horsley, City r 0 0 0 Attachment # ,~' ~D ~0 ~D ~ (.0 (iD 0 0 0 0 0 0 0 0 0 0 0 0 CD ~ ¢'0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ ~ ~ 0 ~ ~ ~ ~ o~ ~ e~ .-.~ ~ o ~ o ~ = ~ ~ ~ ~ ~ < 0 0 0 0 0 0 0 0 0 > > gl> > > > > > CO CO 0 0 0 0 8 m > > > AGENDA ITEM NO: 10.c MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: REJECT GENERAL ELECTRIC'S BID TO REFURBISH THE FLOOD DAMAGED HYDROELECTRIC PLANT EQUIPMENT; ADOPT RESOLUTION DECLARING OPEN MARKET PROCUREMENT MORE ECONOMICAL; AND AUTHORIZE STAFF TO PROCURE CONTRACTOR TO COMPLETE WORK SCOPE OUTLINED IN REQUEST FOR BIDS BY OPEN MARKET PROCUREMENT The City solicited bids for the Lake Mendocino Hydroelectric Power Plant Refurbishment project with a Scope of Work to clean, test and repair or replace power plant equipment affected by the New Year's flood. The engineering estimate for this project is $250,000 to $350,000. Bids were solicited through direct invitations, public notice in the newspaper and advertisements in five trade journals. A mandatory bid walk was held March 21, 2006 with a total of four contracting firms participating. Bids were due April 10, 2006 and of the four contractors that attended the bid walk, only one, General Electric, submitted a bid. The General Electric (GE) bid to complete the entire scope of work outlined in the Request for Bids (RFB) is $545,580. GE took exception to the City's Short Form Construction Contract, in its entirety, and suggested that it be replaced with GE's standard terms and conditions or some other form of contract to be negotiated upon acceptance of their proposal. Continued to Page 2 RECOMMENDED ACTION: Reject General Electric's Proposal Number 1- 130A81_IRS407307 to the City's Hydroelectric Plant Equipment Refurbishment RFB and adopt resolution declaring open market procurement more economical and authorizing staff to procure a contractor to complete the work scope outlined in the RFB by open market procurement. ALTERNATIVE COUNCIL POLICY OPTIONS: Accept General Electric's proposal and exceptions taken to the RFB and endeavor to negotiate terms and conditions with GE that will be acceptable to the City, which may or may not be feasible; or authorize open market negotiations but require staff to obtain Council approval of the negotiated contract. Citizens Advised' N/A Prepared by: Murray Grande, Interim Public Utilities Director Coordinated with: David Rapport, City Attorney and Candace Horsley, City Manager Attachments: Attachment 1- Resolution Approved C~ndac(~ HorSley, (~~y Manager Given that the bid submitted by GE is significantly higher than the engineering estimate (55%) and that GE took exception to the City's Construction Contract in its entirety, staff recommends that Council declare GE's bid to be non-responsive and to reject the bid. Under Public Contracts Code § 20167, after rejecting the bids, the City Council "... may pass a resolution by a four-fifths vote of its members declaring that the project can be performed more economically by day labor, or the materials or supplies furnished at a lower price in the open market. Upon adoption of the resolution, it may have the project done in the manner stated without further complying with this chapter." In addition, under Public Contracts Code Section 22050(a)(1) in an emergency where repairs are required to be made, a 4/5 vote of the City Council may delegate authority to the City Manager to make the repairs without further action by the City Council. Formally rejecting GE's bid releases the City from its public bidding obligations and presents the opportunity for the City to procure the work through open market negotiations with prospective contractors to complete the work scope outlined in the RFP. Staff also requests Council authorization to conduct such negotiations with prospective contractors with the intent of entering into a contract to complete the work without further Council approval. Bringing a contract back for further approval will cause another two week delay. Staff is concerned that further delays in repairing moisture and related damage to the turbines and other electrical components could result in additional damage and added expense. Staff is confident that it can procure the work for significantly less than the PG&E bid. ATTACHMENT,_,~. / RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH DECLARING THAT REPAIR OF FLOOD DAMAGED ELECTRICAL COMPONENTS AT THE LAKE MENDOCINO HYDROELECTRIC PLANT CAN BE PERFORMED MORE ECONOMICALLY BY OPEN MARKET PROCUREMENT AND AUTHORIZING CITY MANAGER TO NEGOTIATE AND ENTER CONTRACT FOR HYDROELECTRIC PLANT REPAIRS WHEREAS, 1. The City issued a request for bids ("RFB") to repair electrical components of its Lake Mendocino Hydroelectric Plant which were damaged in a recent flood of the powerhouse; and 2. The City complied with the Public Contracts Code requirements related to the bidding of a public project; and 3. The City received only one bid in response to the RFB and it was 55% higher than the engineer's estimate and took exception to the form of contract included in the Request for Bids; and 4. Through the RFB process staff has identified potential contractors with whom it can negotiate for this Work, as described in the RFB; and 5. Time is of the essence in getting these repairs completed, because moisture may continue to cause damage to electrical components, until it is addressed; and 6. The City Council is advised that these repairs can be procured at a lower cost and on better terms than those contained in the one bid submitted; NOW, THEREFORE, the City Council of the City of Ukiah hereby resolves as follows: 1. The City Council declares that the work described in the RFB can be more economically procured through open market negotiations; and 2. The City Council hereby authorizes the City Manager to procure the work described in the RFB through open market negotiations of a contract and to enter a contract on behalf of the City to perform said work without further approval from the City Council. PASSED AND ADOPTED on April 19, 2006, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Mark Ashiku, Mayor Marie Ulvila, City Clerk AGENDA ITEM NO: 11a MEETING DATE: APRIL 19, 2006 SUMMARY REPORT SUBJECT: PRESENTATION OF PALACE HOTEL APPRAISAL BY BURWELL, CERTIFIED GENERAL REAL ESTATE APPRAISER DANA Dana Burwell a Certified General Real Estate Appraiser was commissioned to perform an appraisal of the Palace Hotel. He was selected for the project due to his extensive background and knowledge of appraising historical buildings. The document is completed and presented to the City Council for review. A copy of this appraisal has been sent to the Palace Hotel owner, Eladia Laines. Dana Burwell will be in attendance to provide a brief description of how he performed this appraisal. RECOMMENDED ACTION: Receive report. ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Eladia Laines Requested by: Prepared by: Coordinated with: Attachments: Candace Horsley, City Manager Dana Burwell Palace Hotel Appraisal Approved: L....~ ....~' )/'k',-. i~ l Candace Horsley, City M~nager AGENDA SUMMARY ITEM NO. 11 .b DATE: April 19, 2006 REPORT SUBJECT: DISCUSSION AND CONSIDERATION OF VIDEO CAMERAS IN CITY PARKS TO ASSIST WITH CRIME PREVENTION Staff originally proposed to the City Council the reinstallation of a video surveillance system at Alex R. Thomas Plaza during a discussion about.possible improvements at that facility. Councilmember Crane has asked to agendize a discussion on the use of video surveillance to assist with crime prevention in all City Parks. The following staff report provides background information and identifies new technological options that Council may wish to consider. Background In 1997, the Redevelopment Agency approved the installation of a closed circuit video monitoring system for the Alex R. Thomas Plaza. The system consisted of three cameras and a VHS recording unit that was housed in the storage room at the Plaza. Tapes were changed daily by Park Division Staff and were saved for seven days before being recorded over. Tapes were only reviewed and retained if there was evidence of vandalism noted during routine maintenance checks or if there was a report of other criminal activity. While the cameras were initially effective as a visual deterrent, the technology was not sufficient to provide actual evidence for the investigation of criminal activity. The video resolution of the cameras was poor and the cameras were completely ineffective during the night. In addition, playback of the tapes required a special VCR thus making it difficult for staff and law enforcement to review. Continued on Page 2 RECOMMENDED ACTION: 1. Provide direction to staff regarding the use of video surveillance at City Parks to assist with crime prevention. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Councilmember Crane Sage Sangiacomo, Community/General Services Director Candace Horsley, City Manager, Chris Dewey, Administrative Captain, and Trent Taylor, Police Ops. Comm. Captain N/A Ap p ROVE D: t._(~--"~ ~----~~_ _(~_~_. Candace Horsley, City ~nager Over time the deficiencies in the system became evident and vandalism and other criminal activity increased in the Plaza. Eventually, the cameras themselves were vandalized and the system was taken offline. In 2004, the cameras were removed at Council's request. Current Technology and Potential Application for City Parks Recently the Ukiah Police Department (UPD) has purchased a new video surveillance system for use in patrol cars, police lobby, booking room, etc. UPD Staff have indicated that the system is expandable and could be used for a number of other applications including park surveillance. System features include wireless cameras, digital recording, automatic achieving, infrared technology (for night time surveillance), searchable database, motion sensors, and controlled access. Furthermore, units can be installed in fixed locations or moved when the need arises. The City has the ability to use the backbone of the new system and expand to other facilities for only a fraction of the cost of a stand alone system. The components needed to expand to other facilities include the wireless link, digital video recording channel, and the camera. The estimated price for these components is approximately $2,000 per camera. While not all parks have a rate of vandalism/crime that would warrant a system at this time, Council may wish to discuss those parks and facilities that already have a higher level of vandalism/crime or have infrastructure/activities that are at risk. Since the system is expandable, Council may also wish to start with a limited number of cameras at some parks and add on as needed. Those parks and facilities that staff recommends considering include Alex R. Thomas Plaza, Carpenter-Hudson Park, Todd Grove Park/Anton Stadium, Vinewood Park, Oak Manor Park, Ukiah Civic Center and the Ukiah Sports Complex. The intent of video cameras within the parks should not be to function as a dragnet over law-abiding persons or replace Community Policing activities. The purpose of video surveillance in parks would be to assist law enforcement with investigating individuals suspected of criminal activity and provide exterior facility security. Both Community Services Department and Police Department Staff believe that surveillance cameras in conjunction with a Community Policing Program can be an extremely effective tool to limiting vandalism and other criminal activities in the parks. Criminal activity in the parks has had a significant financial impact on the City in terms of both labor and materials. In addition, criminal activity restricts the general publics use and enjoyment of the facilities. For example, amenities such as picnic table, benches and drinking fountains have been destroyed so many times in some locations that staff has opted not replace the items. In other instances, the criminal activity is so intense that people avoid using the facilities. Given the covert nature of the criminal activity within the parks, it is extremely difficult for the Police Department to catch people in the act. Either the officer has to witness the crime or there has to be a citizen willing to report the act and than provide an eye witness identification of the individual. Strategically placed cameras in problem areas within our park system would provide another tool to help successful apprehend and prosecute criminals. For example, a call may come into dispatch regarding drug dealing at the Plaza. The dispatcher or on duty personnel could pull up a live feed of the location and perhaps capture the act on video and/or identify the suspects. An officer responding to the scene could be briefed on critical elements including the number and identity of the suspects. Staff requests Council provide direction on the use of video surveillance to assist with crime prevention in City Parks. AGENDA ITEM NO: 11 .c MEETING DATE: April 19, 2006 SUMMARY REPORT SUBJECT: APPROVAL OF THE CITY OF UKIAH RESOURCE ADEQUACY PROGRAM BACKGROUND: Resource adequacy planning is an outgrowth of the rolling black-outs and energy shortages experienced in California and other states in 2001. Resource adequacy planning requires an electric utility to acquire sufficient power reserves for its customers, to meet specified percentage reserve requirements through contracts and other resources in order to assure reliable electric resources for its customers. The California Independent System Operator (CAISO) employs highly trained staffs who have established new Resource Adequacy criteria, approved by the Federal Energy Regulatory Commission (FERC), which electric utilities must adopt. NCPA COMMISSION APPROVED RESOURCE ADEQUACY PROGRAM: NCPA, in cooperation with NCPA members, has developed a Resource Adequacy Program which has been approved by the NCPA Commission. The document developed is meant to provide the City Council with a Resource Adequacy Program that can be adopted as is, or modified to include specific elements requested by the City Council. The developed Resource Adequacy Program contains the following elements: · Demand Forecast and Protocols · Planning Reserve Margin, set at 15% of the monthly peak demand · Resource Counting Conventions · Compliance and Enforcement The Resource Adequacy program requires the City Council to establish certain rules and requirements that would be applicable to its publicly owned electric utility. The NCPA Commission approved Resource Adequacy Program has been attached (see Attachment 1). Continued on page 2 RECOMMENDED ACTION: It is recommended that council approve the redline version of the Northern California Power Agency Resource Adequacy Program with modifications as noted herein. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide city staff with other direction. Citizens Advised: Prepared by: Coordinated with: Attachments: N/A Liz Kirkley, Electrical Distribution Engineer Murray Grande, Interim Public Utilities Director, David Rapport, City Attorney, and Candace Horsley, City Manager 1. NCPA Commission Approved Resource Adequacy Program 2. NCPA Commission Approved Resource Adequacy Program (redline version) Approved: (-~%¢~~.~.~... Candace Horsley, Ci Manager MODIFICATIONS TO THE NCPA RESOURCE ADEQUACY PROGRAM: A few of the NCPA members have added additional detail to the NCPA Commission Approved Resource Adequacy Program. After further discussion, NCPA staff is recommending that modifications to the existing provisions of the NCPA Commission Approved Resource Adequacy Program be made to include some of the elements that the other NCPA members have elected to add to the NCPA Commission Approved Resource Adequacy Plan. A redlined version of the approved Resource Adequacy Plan including the additional elements is attached (see Attachment 2). City staff recommends approval of the redline version of the Resource Adequacy Program proposed by various NCPA members and recommended by NCPA staff. Jim Pope, NCPA General Manager, will be able to answer your questions regarding the Resource Adequacy Program and its requirements. ATTACHMENI_ ,-~,/ .., RESOURCE ADEQUACY PROGRAM FOR THE CITY OF The City Council or Governing Board for the City of ,Califomia herby adopts the following Resource Adequacy Program for the City's [Title of Utilities Department]. Capitalized terms not otherwise defined herein shall be defined as set forth in the Master Definitions Supplement of the California Independent System Operator Corporation ("CAISO"). This Resource Adequacy Program shall remain in effect, subject to modification by the City Council or Governing Board, until the implementation of the CAISO's Market Redesign and Technology Upgrade ("MRTU") Tariff. 1 RESOURCE ADEQUACY 1.1 Submission of Annual Resource Adequacy Plan Northern California Power Agency ("NCPA") will submit an annual Resource Adequacy Resource Plan to the CAISO, as the Scheduling Coordinator, on behalf of the NCPAB members on a schedule and in the format set forth by the NCPAB member Local Regulatory Authority ("LRA"). For the purpose of this Section 1, NCPAB members include those MSS Operator entities identified in Schedule 18 of the Metered Subsystem Aggregator Agreement. The annual Resource Adequacy Plan should include the NCPAB members Demand Forecasts for each of the five summer months (May - September), established in Section 1.5, and identify the Resource Adequacy Qualified Capacity, established under Section 1.9, that the NCPAB members will rely upon to satisfy 90% of each of the five summer months Demand Forecasts plus the monthly Planning Reserve Margin, established under Section 1.6, for the relevant reporting year. 1.2 Submission of Monthly Resource Adequacy Plan NCPA will submit a monthly Resource Adequacy Plan to the CAISO, as the Scheduling Coordinator, on behalf of the NCPAB members by the last business day of the second month prior to the compliance month and in the form set forth by the NCPAB member LRA. The monthly Resource Adequacy Plan should include the NCPAB members monthly Demand Forecast, established in Section 1.5, and identify the Resource Adequacy Qualified Capacity, established under Section 1.9, that the NCPAB members will rely upon to satisfy the monthly Demand Forecast plus the monthly Planning Reserve Margin, established under Section 1.6, for the relevant reporting month. 1.3 Submission of Supply Plan Scheduling Coordinators representing Resource Adequacy Resources supplying Resource Adequacy Qualified Capacity are required, pursuant to the CAISO Tariff, to provide the CAISO with annual and monthly Supply Plans. NCPA will submit an annual Supply Plan to the CAISO on behalf of the NCPAB members and Silicon Valley Power ("SVP") on a schedule and in the format set forth by the NCPA member LRA. NCPA will submit a monthly Supply Plan to the CAISO on behalf of the NCPAB members and SVP by the last business day of the second month prior to the compliance month and in the form set 3/27/2006 Page 1 of 7 NcP^ forth by the NCPAB member LRA and SVP LRA. Both the annual and monthly Supply Plans shall include a listing of the NCPAB member's and SVP's commitments to provide Resource Adequacy Qualified Capacity to any Load Serving Entity for the applicable reporting period. 1.4 Resource Adequacy Plan Compliance and Enforcement Once the CAISO has received the monthly Resource Adequacy Plan submitted by NCPA on behalf of its NCPAB members, the CAISO will verify that the NCPAB members have procured sufficient Net Qualified Capacity to comply with the Planning Reserve Margin, established in Section 1.6. To the extent the annual or monthly Resource Adequacy Plan does not include sufficient Net Qualified Capacity to satisfy the Planning Reserve Margin, established in Section 1.6, or in the case of a mismatch between information included in the annual or monthly Resource Adequacy Plan and a Supply Plan submitted by the Scheduling Coordinator of a resource identified in the annual or monthly Resource Adequacy Plan, the CAISO will notify NCPA and attempt to resolve the issue. To the extent that NCPA is unable to resolve the identified issue, the CAISO will notify the NCPAB member LRA of the potential deficiency. Once the NCPAB member LRA is informed of the deficiency and confirms that the NCPAB member's annual or monthly Resource Adequacy Plan is deficient, the NCPAB member LRA may determine if and how the deficiency will be resolved. If the CAISO identifies a mismatch between information included in the annual or monthly Resource Adequacy Plan and a Supply Plan submitted by the Scheduling Coordinator of a resource identified in the annual or monthly Resource Adequacy Plan, and the identified mismatch is not resolved prior to the 10th day before the effective month, the CAISO will accept the value contained in the Supply Plan to set the Net Qualified Capacity value for the applicable reporting month. To the extent that a NCPAB member LRA requires its NCPAB member to resolve an identified deficiency in the annual or monthly Resource Adequacy Plan, and the NCPAB member has not resolved the identified deficiency, the NCPAB member must explain why the identified deficiency has not been resolved to its LRA, and possibly incur penalties or other sanctions adopted by the LRA. NCPA is required to report to the CAISO within thirty (30) days of any action taken by the appropriate LRA in response to the deficiency notification if the LRA does not provide public access to records or information regarding action taken for violations of its Resource Adequacy policies or rules. 1.5 Demand Forecasts The monthly Demand Forecast included in the annual and monthly Resource Adequacy Plan shall be based on the monthly peak Demand responsibility of the NCPAB members that is consistent with the forecasts provided to the CAISO under Section 6.1 of the Metered Subsystem Aggregator Agreement. For the purposes of Section 1, Demand shall be equal to Load plus firm Exports plus any NCPAB member on-demand obligation to 3/27/2006 Page 2 of 7 NCPA third parties, measured in megawatts. For the purposes of this Section 1.5, the peak Demand responsibility shall be equal to the aggregated NCPAB member coincident peak Demand Forecast for the relevant month irrespective of the CAISO system coincident peak. 1.6 Planning Reserve Margin The annual and monthly Resource Adequacy Plan will include a Planning Reserve Margin equal to no less that 15% of the monthly peak Demand responsibility set forth in Section 1.5. 1.7 ISO Authority to Dispatch NCPA Resources The CAISO's authority to Dispatch any portion of the capacity of any Generating Unit of NCPA, other than in accordance with a bid submitted to the CAISO by NCPA's Scheduling Coordinator, is set forth in and subject to Section 7.1 of the Metered Subsystem Aggregation Agreement. 1.8 Resource Adequacy Qualified Capacity Resource Adequacy Qualified Capacity shall be the quantity of capacity from a resource stated in megawatts which is listed in the annual and or either the monthly Resource Adequacy Plan. Qualified Capacity is the capacity from a resource prior to the application of the Net Capacity determination that shall be made pursuant to the provisions of the CAISO Tariff. The criteria for determining the types of resources that may be eligible to provide Qualified Capacity and for calculating Qualified Capacity from eligible resource types is provided in Section 1.9. 1.9 Qualified Capacity Criteria 1.9.1 Net Dependable Capacity Net Dependable Capacity ("NDC") defined by North American Electric Reliability Council ("NERC") Generating Availability Data System ("GADS") information will be used to determine the Qualified Capacity of some of the resource types identified in Section 1.9. For the purpose of Section 1.9, NDC is equal to Gross Dependable Capacity ("GDC") less the unit capacity utilized for the unit station service or auxiliaries. GDC is equal to Gross Maximum Capacity ("GMC") modified for seasonal limitations over a specified period of time. GMC is the maximum capacity a unit can sustain over a specified period of time when not restricted by seasonal or other deratings. 1.9.2 NCPA System As defined in the Metered Subsystem Aggregator Agreement, the NCPA System means. all transmission and distribution facilities owned or controlled by the NCPA MSS 3/27/2006 Page 3 of 7 NCPA members, and all Generating Units within the ISO Control Area owned or controlled by NCPA members. 1.9.3 Jointly-Owned Facilities A jointly-owned facility must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity for the entire facility will be determined based on the type of resource as described elsewhere in Section 1.9. The NCPAB member's entitlement to the Qualified Capacity of the facility may encompass the entire Qualified Capacity of the facility, or may be limited to a portion of the Qualified Capacity of the facility. The total amount of Qualified Capacity that may be identified in the annual and or either the monthly Resource Adequacy Plan is limited to the total jointly-owned facility Qualified Capacity determined in Section 1.9. 1.9.4 Thermal Thermal generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of thermal facility will be based on Net Dependable Capacity as defined in Section 1.9.1. 1.9.5 Hydro Hydro generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of a pond or pumped storage hydro facility will be based on Net Dependable Capacity as defined in Section 1.9.1, minus variable head de-rate based on current reservoir levels with dry year (1-in-5 dry year) forecasted inflows. The Qualified Capacity of a mn-of-river hydro facility will be based on Net Dependable Capacity as defined in Section 1.9.1, minus actual or forecasted conveyance flow, stream flow, or canal head de-rate. 1.9.6 Unit-Specific Contracts Unit-specific contracts will fully qualify as Resource Adequacy Qualified Capacity. The generating facility identified in the contract must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. 3/27/2006 Page 4 of 7 NCPA 1.9.7 Firm Physical Contracts Firm energy contracts which contain provisions to ensure reliable physical delivery and that do not contemplate frequent financial settlement for non-delivery, or that contain provisions that identify non-delivery as a default condition subject to contract termination, will fully qualify as Resource Adequacy Qualified Capacity. 1.9.8 Industry Standard Contracts with Liquidated Damages Provisions Firm energy contacts with liquidated damages provisions as generally reflected in Service Schedule C of the Western Systems Power Pool Agreement or the Firm LD product of the Edison Electric Institute pro forma agreement, or any other similar firm energy contract that provides the seller an option not to deliver based on economic reasons will count as Qualified Capacity until a commercially available industry standardized capacity based product is readily available, and which is provided under an agreement similar to the Western Systems Power Pool Agreement or the Edison Electric Institute pro forma agreement. 1.9.9 Wind and Solar The Qualified Capacity of firm wind and solar generating facilities, with backup sources of generation, will be based on Net Dependable Capacity as defined in Section 1.9.1. Wind and solar generating facilities without backup sources of generation must be participants in the CAISO's Participating Intermittent Resource Program ("PIRP"). The Qualified Capacity of wind and solar facilities without backup sources of generation will be based on their monthly historic noon to 6:00 p.m. capacity factor, using a three-year rolling average. New wind and solar generating facilities without backup sources of generation which do not have three years of historic performance data will be assigned a default Qualified Capacity for each year of missing historical performance as follows: (1) the Qualified Capacity of another solar or wind generator with historic data located in the same weather regime with similar technology adjusted for the nameplate capacity ratio of a new generator and the similarly situated proxy generator. The default Qualified Capacity values will be replaced on a year by year basis with actual performance data as the data becomes available to form a three year rolling average. 1.9.10 Geothermal Geothermal generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating 3/27/2006 Page 5 of 7 NCPA Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of a geothermal facility will be based on Net Dependable Capacity as defined in Section 1.9.1, adjusted for steam field degradation. 1.9.11 Treatment of Qualified Capacity of QFs The NCPAB members do not currently have any Qualifying Facilities ("QFs") with effective contracts under the Public Utility Regulatory Policies Act as of the drafting of this document. Therefore, the NCPAB members LRA have not identified Qualified Capacity Criteria in Section 1.9 for Qualifying Facilities. If in the future the NCPAB members decide to acquire and identify Qualified Capacity in either the annual or monthly Resource Adequacy Plan sourced from Qualifying Facilities, the NCPAB members LRA reserves the right to establish Qualified Capacity Criteria in Section 1.9. 1.9.12 Dispatchable Demand Resource and Participating Loads Dispatchable Demand resources and Non-Dispatchable Demand resources must either be identified in Schedule 1 OB of the Metered Subsystem Aggregation Agreement or located within the NCPA System to be considered Qualified Capacity. Participating Loads must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement or located within the NCPA System to be considered Qualified Capacity. Dispatchable Demand resources, Non-Dispatchable Demand resources, and Participating Loads must be available at least 48 hours during the five summer months (May - September) to be counted in either the annual or monthly Resource Adequacy Plan as Qualified Capacity. If a Dispatchable Demand resource or Participating Load is available for the minimum requirement, the megawatt quantity reduction stipulated in the contract or program will be treated as supply and be eligible to be listed as Qualified Capacity. If a Non- Dispatchable Demand resource is available for the minimum requirement, the megawatt quantity reduction stipulated in the contract or program, adjusted to reflect the contract or programs average historical performance, will be treated as supply and be eligible to be listed as Qualified Capacity. 1.9.13 Facilities Under Construction The Qualified Capacity for facilities under construction will be determined based on the type of resource as described elsewhere in Section 1.9. The facility will be eligible to be identified as Qualified Capacity in the annual or monthly Resource Adequacy Plan of the NCPAB members pursuant to the anticipated operational date of the facility. 1.9.14 Dynamically Scheduled System Resources The Qualified Capacity of a Dynamically Scheduled System Resource to which the NCPAB member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to the deliverability screen pursuant to the provisions of the CAISO Tariff and to, and or, the applicable provisions of the Metered Subsystem Aggregator Agreement. Eligibility as Qualified Capacity is contingent upon the NCPAB members 3/27/2006 Page 6 of 7 NCPA securing transmission through any intervening Control Areas for the resource entitlement that cannot be curtailed for economic reasons or bumped by higher priority transmission. The Qualified Capacity provided by a Dynamically Scheduled System Resource will be ' limited by the NCPAB member's allocated import capacity at the import Scheduling Points, which is determined pursuant to the provisions of the CAISO Tariff. 1.9.15 Non-Dynamically Scheduled System Resources The Qualified Capacity of a Non-Dynamically Scheduled System Resources to which the NCPAB member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to the deliverability screen pursuant to the provisions of the CAISO Tariff and to, and or, the provisions of the Metered Subsystem Aggregator Agreement. The Qualified Capacity provided by a Non-Dynamically Scheduled System Resource will be limited by the NCPAB member's allocated import capacity at the import Scheduling Points, which is determined pursuant to the provisions of the CAISO Tariff. 3/27/2006 Page 7 of 7 NcP^ ATTACHMENT~- ~,. _ III RESOURCE ADEQUACY PROGRAM FOR THE CITY OF The City Council or Governing Board for the City of , California herby adopts the following Resource Adequacy Program for the City's [Title of Utilities Department]. Capitalized terms not otherwise defined herein shall be defined as set forth in the Master Definitions Supplement of the California Independent System Operator Corporation ("CAISO"). This Resource Adequacy Program shall remain in effect, subject to modification by the City Council or Governing Board, until the implementation of the CAISO's Market Redesign and Technology Upgrade ("MRTU") Tariff. 1 RESOURCE ADEQUACY 1.1 Submission of Annual Resource Adequacy Plan Northern California Power Agency ("NCPA") will submit an annual Resource Adequacy Resource Plan to the CAISO, as the Scheduling Coordinator, on behalf of the NCPAB members on a schedule and in the format set forth by the NCPAB member Local Regulatory Authority ("LRA"). For the purpose of this Section 1, NCPAB members include those MSS Operator entities identified in Schedule 18 of the Metered Subsystem Aggregator Agreement. The annual Resource Adequacy Plan should include the NCPAB members Demand Forecasts for each of the five summer months (May - September), established in Section 1.5, and identify the Resource Adequacy Qualified Capacity, established under Section 1.9, that the NCPAB members will rely upon to satisfy 90% of each of the five summer months Demand Forecasts plus the monthly Planning Reserve Margin, established under Section 1.6, for the relevant reporting year. 1.2 Submission of Monthly Resource Adequacy Plan NCPA will submit a monthly Resource Adequacy Plan to the CAISO, as the Scheduling Coordinator, on behalf of the NCPAB members by the last business day of the second month prior to the compliance month and in the form set forth by the NCPAB member LRA. The monthly Resource Adequacy Plan should include the NCPAB members monthly Demand Forecast, established in Section 1.5, and identify the Resource Adequacy Qualified Capacity, established under Section 1.9, that the NCPAB members will rely upon to satisfy the monthly Demand Forecast plus the monthly Planning Reserve Margin, established under Section 1.6, for the relevant reporting month. 1.3 Submission of Supply Plan Scheduling Coordinators representing Resource Adequacy Resources supplying Resource Adequacy Qualified Capacity are required, pursuant to the CAISO Tariff, to provide the CAISO with annual and monthly Supply Plans. NCPA will submit an annual Supply Plan to the CAISO on behalf of the NCPAB members and Silicon Valley Power ("SVP") on a schedule and in the format set forth by the NCPA member LRA. NCPA will submit a monthly Supply Plan to the CAISO on behalf of the NCPAB members and SVP by the last business day of the second month prior to the compliance month and in the form set 4/12/2006 Page 1 of 7 NCPA forth by the NCPAB member LRA and SVP LRA. Both the annual and monthly Supply Plans shall include a listing of the NCPAB member's and SVP's commitments to provide Resource Adequacy Qualified Capacity to any Load Serving Entity for the applicable reporting period. 1.4 Resource Adequacy Plan Compliance and Enforcement Once the CAISO has received the monthly Resource Adequacy Plan submitted by NCPA on behalf of its NCPAB members, the CAISO will verify that the NCPAB members have procured sufficient Net Qualified Capacity to comply with the Planning Reserve Margin, established in Section 1.6. To the extent the annual or monthly Resource Adequacy Plan does not include sufficient Net Qualified Capacity to satisfy the Planning Reserve Margin, established in Section 1.6, or in the case of a mismatch between information included in the annual or monthly Resource Adequacy Plan and a Supply Plan submitted by the Scheduling Coordinator of a resource identified in the annual or monthly Resource Adequacy Plan, the CAISO will notify NCPA and attempt to resolve the issue. To the extent that NCPA is unable to resolve the identified issue, the CAISO will notify the NCPAB member LRA of the potential deficiency. · Once the NCPAB member LRA is informed of the deficiency and confirms that the NCPAB member's annual or monthly Resource Adequacy Plan is deficient, the NCPAB member LRA may determine if and how the deficiency will be' resolved. If the CAISO identifies a mismatch between information included in the annual or monthly Resource Adequacy Plan and a Supply Plan submitted by the Scheduling Coordinator of a resource identified in the annual or monthly Resource Adequacy Plan, and the identified mismatch is not resolved prior to the 10th day before the effective month, the CAISO will accept the value contained in the Supply Plan to set the Net Qualified Capacity value for the applicable reporting month. To the extent that a NCPAB member LRA requires its NCPAB member to resolve an identified deficiency in the annual or monthly Resource Adequacy Plan, and the NCPAB member has not resolved the identified deficiency, the NCPAB member must explain why the identified deficiency has not been resolved to its LRA, and possibly incur penalties or other sanctions adopted by the LRA. NCPA is required to report to the CAISO within thirty (30) days of any action taken by the appropriate LRA in response to the deficiency notification if the LRA does not provide public access to records or information regarding action taken for violations of its Resource Adequacy policies or rules. 1.5 Demand Forecasts The monthly Demand Forecast included in the annual and monthly Resource Adequacy Plan shall be based on the monthly peak Demand responsibility of the NCPAB members that is consistent with the forecasts provided to the CAISO under Section 6.1 of the Metered Subsystem Aggregator Agreement. For the purposes of Section 1, Demand shall be equal to Load plus firm Exports plus any NCPAB member on-demand obligation to 4/12/2006 Page 2 of 7 ~4cP^ third parties, measured in megawatts. For the purposes of this Section 1.5, the peak Demand responsibility shall be equal to the aggregated NCPAB member coincident peak Demand Forecast for the relevant month irrespective of the CAISO system coincident peak. 1.6 Planning Reserve Margin The annual and monthly Resource Adequacy Plan will include a Planning Reserve Margin equal to no less that 15% of the monthly peak Demand responsibility set forth in Section 1.5. 1.7 ISO Authority to Dispatch NCPA Resources The CAISO's authority to Dispatch any portion of the capacity of any Generating Unit of NCPA, other than in accordance with a bid submitted to the CAISO by NCPA's Scheduling Coordinator, is set forth in and subject to Section 7.1 of the Metered Subsystem Aggregation Agreement. 1.8 Resource Adequacy Qualified Capacity Resource Adequacy Qualified Capacity shall be the quantity of capacity from a resource stated in megawatts which is listed in the annual and or either the monthly Resource Adequacy Plan. Qualified Capacity is the capacity from a resource prior to the application of the Net Capacity determination that shall be made pursuant to the provisions of the CAISO Tariff. The criteria for determining the types of resources that may be eligible to provide Qualified Capacity and for calculating Qualified Capacity from eligible resource types is provided in Section 1.9. 1.9 Qualified Capacity Criteria 1.9.1 Net Dependable Capacity Net Dependable Capacity ("NDC") defined by North American Electric Reliability Council ("NERC") Generating Availability Data System ("GADS") information will be used to determine the Qualified Capacity of some of the resource types identified in Section 1.9. For the purpose of Section 1.9, NDC is equal to Gross Dependable Capacity ("GDC") less the unit capacity utilized for the unit station service or auxiliaries. GDC is equal to Gross Maximum Capacity ("GMC") modified for seasonal limitations over a specified period of time. GMC is the maximum capacity a unit can sustain over a specified period of time when not restricted by seasonal or other deratings. 1.9.2 NCPA System As defined in the Metered Subsystem Aggregator Agreement, the NCPA System means all transmission and distribution facilities owned or controlled by the NCPA MSS 4/12/2006 Page 3 of 7 NCPA members, and all Generating Units within the ISO Control Area owned or controlled by NCPA members. 1.9.3 Jointly-Owned Facilities A jointly-owned facility must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity for the entire facility will be determined based on the type of resource as described elsewhere in Section 1.9. The NCPAB member's entitlement to the Qualified Capacity of the facility may encompass the entire Qualified Capacity of the facility, or may be limited to a portion of the Qualified Capacity of the facility. The total amount of Qualified Capacity that may be identified in the annual and or either the monthly Resource Adequacy Plan is limited to the total jointly-owned facility Qualified Capacity determined in Section 1.9. 1.9.4 Thermal Thermal generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. Thermal ucncrating fi~cilitics that arc not required to sign a PaT~ticipating Generator Agreement pursuant to Section 2.2.1 ot'the (;AIS() Participating Generator Am'cement are also eligible to bc identified as Oualificd Capacity. The Qualified Capacity of thermal facility will be based on Net Dependable Capacity as defined in Section 1.9.1. 1.9.5 Hydro Hydro generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of a pond or pumped storage hydro facility will be based on Net Dependable Capacity as defined in Section 1.9.1, minus variable head de-rate based on current reservoir levels with dry year (1-in-5 dry year) forecasted inflows. The Qualified Capacity of a run-of-river hydro facility will be based on Net Dependable Capacity as defined in Section 1.9.1, minus actual or forecasted conveyance flow, stream flow, or canal head de-rate. 1.9.6 Unit-Specific Contracts Unit-specific contracts will fully qualify as Resource Adequacy Qualified Capacity. The generating facility identified in the contract must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity_ Thc generating [hcilitics identified in ih¢ contract that arc not required to si~n a Participating 4/12/2006 Page 4 of 7 NCPA (icncrator A~rccmcnt pursuant to Section 2.2.1 ot'th¢ CAIS() ParticipatinB Generator A~rccmcnt arc also eligible to bc idcntiticd as (.)ualificd Capacity. 1.9.7 Firm Physical Contracts Firm energy contracts which contain provisions to ensure reliable physical delivery and that do not contemplate frequent financial settlement for non-delivery, or that contain provisions that identify non-delivery as a default condition subject to contract termination, will fully qualify as Resource Adequacy Qualified Capacity. 1.9.8 Industry Standard Contracts with Liquidated Damages Provisions Firm energy contacts with liquidated damages provisions as generally reflected in Service Schedule C of the Western Systems Power Pool Agreement or the Firm LD product of the Edison Electric Institute pro forma agreement, or any other similar firm energy contract that provides the seller an option not to deliver based on economic reasons will count as Qualified Capacity until a commercially available industry standardized capacity based product is readily available, and which is provided under an agreement similar to the Western Systems Power Pool Agreement or the Edison Electric Institute pro forma agreement. 1.9.9 Wind and Solar The Qualified Capacity of firm wind and solar generating facilities, with backup sources of generation, will be based on Net Dependable Capacity as defined in Section 1.9.1. Wind and solar generating facilities without backup sources of generation must be participants in the CAISO's Participating Intermittent Resource Program ("PIRP"). The Qualified Capacity of wind and solar facilities without backup sources of generation will be based on their monthly historic noon to 6:00 p.m. capacity factor, using a three-year rolling average. New wind and solar generating facilities without backup sources of generation which do not have three years of historic performance data will be assigned a default Qualified Capacity for each year of missing historical performance as follows: the Qualified Capacity of another solar or wind generator with historic data located in the same weather regime with similar technology adjusted for the nameplate capacity ratio of a new generator and the similarly situated proxy generator. The default Qualified Capacity values will be replaced on a year by year basis with actual performance data as the data becomes available to form a three year rolling average. 4/12/2006 Page 5 of 7 NCPA 1.9.10 Geothermal Geothermal generating facilities must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement, located within the NCPA System, a Participating Generator, or a Qualified Facility to be considered Qualified Capacity. The Qualified Capacity of a geothermal facility will be based on Net Dependable Capacity as defined in Section 1.9.1, adjusted for steam field degradation. 1.9.11 Treatment of Qualified Capacity of QFs The NCPAB members do not currently have any Qualifying Facilities ("QFs") with effective contracts under the Public Utility Regulatory Policies Act as of the drafting of this document. Therefore, the NCPAB members LRA have not identified Qualified Capacity Criteria in Section 1.9 for Qualifying Facilities. If in the future the NCPAB members decide to acquire and identify Qualified Capacity in either the annual or monthly Resource AdequacY Plan sourced from Qualifying Facilities, the NCPAB members LRA reserves the right to establish Qualified Capacity Criteria in Section 1.9. 1.9.12 Dispatchable Demand Resource and Participating Loads Dispatchable Demand resources and Non-Dispatchable Demand resources must either be identified in Schedule 1 OB of the Metered Subsystem Aggregation Agreement or located within the NCPA System to be considered Qualified Capacity. Participating Loads must either be identified in Schedule 14 of the Metered Subsystem Aggregation Agreement or located within the NCPA System to be considered Qualified Capacity. Dispatchable Demand resources, Non-Dispatchable Demand resources, and Participating Loads must be available at least 48 hours during the five summer months (May- September) to be counted in either the annual or monthly Resource Adequacy Plan as Qualified Capacity. If a Dispatchable Demand resource or Participating Load is available for the minimum requirement, the megawatt quantity reduction stipulated in the contract or program will be treated as supply and be eligible to be listed as Qualified Capacity. If a Non- Dispatchable Demand resource is available for the minimum requirement, the megawatt quantity reduction stipulated in the contract or program, adjusted to reflect the contract or programs average historical performance, will be treated as supply and be eligible to be listed as Qualified Capacity. 1.9.13 Facilities Under Construction The Qualified Capacity for facilities under construction will be determined based on the type of resource as described elsewhere in Section 1.9. The facility will be eligible to be identified as Qualified Capacity in the annual or monthly Resource Adequacy Plan of the NCPAB members pursuant to the anticipated operational date of the facility. 4/12/2006 Page 6 of 7 NCPA 1.9.14 Dynamically Scheduled System Resources The Qualified Capacity of a Dynamically Scheduled System Resource to which the NCPAB member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to the deliverability screen pursuant to the provisions of the CAISO Tariff and to, and or, the applicable provisions of the Metered Subsystem Aggregator Agreement. Eligibility as Qualified Capacity is contingent upon the NCPAB members securing transmission through any intervening Control Areas for the resource entitlement that cannot be curtailed for economic reasons or bumped by higher priority transmission. The Qualified Capacity provided by a Dynamically Scheduled System Resource will be limited by the NCPAB member's allocated import capacity at the import Scheduling Points, which is determined pursuant to the provisions of the CAISO Tariff. 1.9.15 Non-Dynamically Scheduled System Resources The Qualified Capacity of a Non-Dynamically Scheduled System Resources to which the NCPAB member has an entitlement shall be the amount of the NCPAB member's entitlement, subject to the deliverability screen pursuant to the provisions of the CAISO Tariff and to, and or, the provisions of the Metered Subsystem Aggregator Agreement. The Qualified Capacity provided by a Non-Dynamically Scheduled System Resource will be limited by the NCPAB member's allocated import capacity at the import Scheduling Points, which is determined pursuant to the provisions of the CAISO Tariff. 1.9.16 NCI'A System Transmission ()wnershii) Righls Thc capacity entitlement, measured in mctzawatts, ot'thc NCPA system transmission oxvncrship rights in the CAIS() Control Area a! thc Control Area Schcdulintz Points will bc cligiblc to bc identified as Qualificd Capacity in thc annual and monthly Rcsourcc Adequacy Plans. Thc capacity entitlement ot'thc NCPA system transmission ownershiP l'i~hts in thc CAI,SO Control Area at thc Control Arca Schcdulinu Points arc listcd in Schedule 13 ot'thc Metered Subsystem Aggregation A~l'CC[llenl, and include but arc l'~ot Ii mi ted to thc COT!> Term in us ()~s dcscri bed in thc I SO-S M U D Interconnected Control Area Operating Agreement)and the Pitmms-gicrra Rural Electric Cooperative transmission ownership rights up to thc Marble Substation Schcdulin~ Point (as described in thc lSO's llltCrconnccted Control Area Operating Agreement with Sicm~ I)acilic Power Co. fi)r thc Marble Substation intcrtic). 4/12/2006 Page 7 of 7 NCPA ITEM NO. ll.d DATE: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION APPROVING MEMORANDUM OF UNDERSTANDING FOR ELECTRIC EMPLOYEE BARGAINING UNIT (IBEW LOCAL 1245) The City's Labor Negotiators and the City Manager have met with representatives of the Electric/IBEW Unit to discuss negotiation items for the term of January 1, 2006 - December 31, 2008. The negotiations resulted in a mediated agreement, which was subsequently ratified by the Unit on April 12, 2006. The City Council previously discussed the mediated agreement at its April 5, 2006 meeting in closed session. The proposed Memorandum of Understanding (MOU) has been submitted for Council's review under separate cover for closed session, if necessary. The Electric Unit has a comprehensive MOU document, therefore to make the review process easier, only those items that were negotiated or changed as a result of the mediation agreement have been provided for Council's review. A copy of the complete Electric Unit MOU is available in the Personnel Department. If the City Council is prepared to adopt the attached resolution, a closed session will not be necessary. Staff recommends adoption of the resolution approving the Memorandum of Understanding for the Electric/IBEW Unit for the term of January 1,2006 - December 31,2008. RECOMMENDED ACTION: Adoption of resolution approving Memorandum of Understanding for the Electric/IBEW Bargaining Unit for the term of January 1,2006 - December 31,2008. ALTERNATIVE COUNCIL POLICY OPTIONS: . Do not adopt resolution. Refer to Staff for amendments. Citizen Advised: Requested by: N/A Prepared by: Coordinated with: Attachments: N/A Melody Harris, Personnel Director Candace Horsley, City Manager 1. Resolution APPROVED:',,~/-~ Candace Horsley, City M~nager RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF UKIAH AND THE ELECTRIC UNIT WHEREAS, the Employee/Employer Relations Officer has met and conferred in good faith with representatives of the ELECTRIC Unit; and WHEREAS, a Memorandum of Understanding for the term of January 1, 2006 - December 31, 2008 has been arrived at; and WHEREAS, said Memorandum of Understanding has been presented to the City Council for its consideration. NOW, THEREFORE, BE IT RESOLVED that this Memorandum of Understanding is hereby adopted and the Employee/Employer Relations Officer is authorized to enter into this Agreement. PASSED AND ADOPTED this 19th day of April 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk 3:mou\resmou Resolution No. 2006 - Page 1 of 1 ITEM NO. ]. t. e DATE: April 19, 2006 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION APPROVING MEMORANDUM OF UNDERSTANDING FOR FIRE EMPLOYEE BARGAINING UNIT The City's Labor Negotiators and the City Manager have met with representatives of the Fire Unit to discuss negotiation items for the term of October 1,2005 - September 30, 2008. The negotiations resulted in an agreement, which was subsequently ratified by the Fire Unit on April 13, 2006. The proposed Memorandum of Understanding (MOU) has been submitted for Council's review under separate cover for closed session, if necessary. If the City Council is prepared to adopt the attached resolution, a closed session will not be necessary. Staff recommends adoption of the resolution approving the Memorandum of Understanding for the Fire Unit for the term of October 1,2005 - September 30, 2008. RECOMMENDED ACTION: Adoption of resolution approving Memorandum of Understanding for the Fire Bargaining Unit for the term of October 1,2005 - September 30, 2008. ALTERNATIVE COUNCIL POLICY OPTIONS: . Do not adopt resolution. Refer to Staff for amendments. Citizen Advised: Requested by: N/A Prepared by: Coordinated with: Attachments: N/A Melody Harris, Personnel Director Candace Horsley, City Manager 1. Resolution Candace Horsley, City Mana~ RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADOPTING MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF UKIAH AND THE FIRE UNIT WHEREAS, the Employee/Employer Relations Officer has met and conferred in good faith with representatives of the FIRE UNIT; and WHEREAS, a Memorandum of Understanding for the term of October 1, 2005 - September 30, 2008 has been arrived at; and WHEREAS, said Memorandum of Understanding has been presented to the City Council for its consideration. NOW, THEREFORE, BE IT RESOLVED that this Memorandum of Understanding is hereby adopted and the Employee/Employer Relations Officer is authorized to enter into this Agreement. PASSED AND ADOPTED this 19th day of April 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Mark Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk 3:mou\resmoul Resolution No. 2006- Page 1 of 1