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2006-12-20 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 December 20, 2006 6:00 p.m. 5:45 PM Photo Session - Group Council Photo for Foyer 6:00 PM 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Introduction of New Chamber Executive Director Bert Mosier b. Introduction of New Employees - Patrick Garrett and Rebecca Schwenger, Firefighter/Paramedics PETITIONS AND COMMUNICATIONS None APPROVAL OF MINUTES None 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. CONSENT CALENDAR The following items listed are considered routine and will be enacted by a single motion and roll call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item wilt 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. Report of Disbursements for the Month of November 2006 b. Award of Consulting Contract for Gobbi Substation Upgrade c. Electric Rate Study Consultant Selection - Award of Contract to Borismetrics in an Amount Not-to-Exceed $29,900 d. Award of Bid to Simplexgrinnell for Semi-Annual Inspection of the Civic Center Halon Systems in the Amount of $3,700 per Year for Three Years e. Authorize Award of Contract with Perfectio Plus Transcription for Police Transcription at an Amount Not to Exceed $25,000 per Fiscal Year f. Report to Council on Contract Extension with Whitlock and Weinberger Transportation, Inc. 0N-Trans) for Professional Services in the Preparation of a Downtown Parking Improvement Study and Authorize Budget Amendment in an Amount Not to Exceed $6,101.40 for Same g. Status of the Lake Mendocino Hydroelectric Power Plant Equipment Refurbishment Emergency h. Report of the Acquisition of Services from Tim Narvaez in the Amount of $9,642.50 for Slope Repair Work at the Ukiah Solid Waste Disposal Site i. Rejection of Claim for Damages Received from Sylvia H. Corona and Referral of Claim to the Joint Powers Authority, Redwood Empire Municipal Insurance Fund 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. PUBLIC HEARINGS (6:15 PM) None 10. UNFINISHED BUSINESS a. Status Report on the Ukiah Skate Park Development Project and Authorize the Release of the Request for Proposals for Professional Design Services for the Development of the Ukiah Skate Park b. Discussion and Appointment of Planning Commission Members c. City of Ukiah Public Benefits Program Presentation by Efficiency Services Group and Possible Action on Recommendations d. Lake Mendocino Hydroelectric Plant Refurbishment Project Budget and Schedule Update; Authorize the Expenditure of Additional Funds Necessary to Complete the Project e. Discussion and Appointment of City Councilmembers to Various Boards and Commissions f. Discussion on Issues to be Discussed at a Joint City Council/County Board of Supervisors Meeting Regarding the Ukiah Valley Area Plan - McCowen 11. NEW BUSINESS Discussion and Possible Action on Status of Implementing the City's Sewer Lateral Inspection Ordinance Including Point-Of-Sale Requirements Discussion and Possible Action on Electric Resource Options Authorizing City Manager to Increase the City's Participation in the New Lodi Power Project and Authorizing the City Manager to Direct NCPA to Acquire Short Term Power Purchase Contracts to Meet the City's Power Deficit Electric Facilities Assessment Presentation Wastewater Treatment Plant Update and Discussion and Possible Action on the Cost Reduction Alternatives Discussion Discussion and Action Concerning Property Owners Request for City Initiated Annexation of the Brush Street Triangle Award of Contract for 2000 and 2002 STIP Railroad Crossing Rehabilitation Project Specification Award of Contract for Gobbi Street and Orchard Avenue Traffic Signal Improvements - Specification No. 06-16 Request for Sponsorship of Citizen U Educational Water Forum - Rodin Discussion Concerning Measure "X" Implementation - McCowen Discussion of Recruitment Process for City Manager and Possible Authorization to Prepare a Request for Proposal (RFP) for a Professional Recruitment Firm Possible Approval of Settlement Agreement in Ukiah versus Mattern 12. COUNCIL REPORTS 13. CITY MANAGER/CITY CLERK REPORTS 14. CLOSED SESSION a. Conference With Legal Counsel-Existing Litigation (Gov't Code 54956.9(a))- River Watch v. Ukiah, U.S.Dist. Ct., N.D. Cal., C04 4518 CW b. Conference With Legal Counsel-Existing Litigation (Gov't Code 54956.9(a))- Ukiah v. Mattern, Court of Appeal case no. A112897, Mendocino County Superior Court case no. CV94844 15. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. 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 15th day of December, 2006. Gall Petersen, City Clerk NOTICE OF EARLY START TIME For Photo Session For City Council Photos for thc City Hall Foyer (Please dress accordingly) WEDNESDAY, 12/20 5:45 p.m. AGENDA ITEM NO: 3a MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: INTRODUCTION OF NEW CHAMBER EXECUTIVE DIRECTOR BERT MOSIER The Greater Ukiah Chamber of Commeme recently announced the hiring of Bert Mosier for the position of Executive Director. He began working for the Chamber on November 27, 2006. His past experience includes Executive Director of the Hoxie Area Chamber of Commerce and Sheridan County Department. During that time, Mr. Mosier expanded membership of the local Chambers and helped initiate "Shop at Home" campaigns. He also established and managed a micro-loan program to assist new and expanding businesses with financing. The Northwest Kansas Travel Council was another of Mosier's successes. He brought twenty counties together to work on a collaborative effort to market the region. He also served on the Governor's Task Force for Agri-Tourism, a statewide initiative to incorporate agricultural, travel and tourism. Mr. Mosier has met with staff to begin discussing plans for next year's Small Town Christmas and other events, as well as business enhancements through partnership between the Chamber and the City. We are very pleased with his many innovative ideas and look forward to working with him this coming year. RECOMMENDED ACTION: Welcome Bert Mosier ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Candace Horsley, City Manager Approved: Candace Horsley, City Manage~, AGENDA SUMMARY ITEM NO. 3b DATE: December 20, 2006 REPORT SUBJECT: INTRODUCTION OF NEW EMPLOYEES - PATRICK GARRETT AND REBECCA SCHWENGER, FIREFIGHTER/PARAMEDICS. During the next three Council Meetings, the Fire Department will be introducing new career employees. Tonight C Shift will present Patrick Garrett and Rebecca Schwenger, two of our new Firefighter/Paramedics. Patrick Garrett is a Firefighter/Paramedic assigned to "C" Shift. Pat was hired full-time at the end of August after starting out early in the Summer as a limited-term employee. Pat comes to us from Piner Ambulance in Napa County. Pat, his wife and two children enjoy hiking, biking and camping. Rebecca Schwenger is a Firefighter/Paramedic also assigned to "C" Shift. Rebecca was hired in October and comes to us from Rumsey Rancheria Fire Department. Rebecca is married and has seven children. Her interests are working on her farm, fishing, camping and skiing with her family. Please join us in welcoming these two new employees. RECOMMENDED ACTION: Welcome Patrick Garrett and Rebecca Schwenger to the City of Ukiah ALTERNATIVE COUNCIL OPTIONS: N/A Citizens Advised: N/A Requested by: N/A Prepared by: Cynthia Stanford, Administrative Secretary Coordinated with: Tony Clarabut Fire Chief and Candace Horsley, City Manager Attachments: None APPROVED: Candace Horsley, City Mana~/~r :/ ITEM NO.: 7._~a DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: REPORT OF DISBURSEMENTS FOR THE MONTH OF NOVEMBER 2006 Payments made during the month of November 2006, are summarized on the attached Report of Disbursements. Further detail is supplied on the attached Schedule of Bills, representing the four (4) individual payment cycles within the month. Accounts Payable check numbers: 73159-73270, 73337-73583, 73651-73719 Accounts Payable Manual check numbers: 67428 Payroll check numbers: 73271-73336, 73584-73650 Payroll Manual check numbers: none Void check numbers: none This report is submitted in accordance with Ukiah City Code Division 1, Chapter 7, Article 1. RECOMMENDED ACTION: Approve the Report of Disbursements for the month of November 2006. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Candace Horsley, City Manager Klm Sechrest, Accounts Payable Specialist Brent Smith, Finance Director and Candace Horsley, City Manager Report of Disbursements APPROVED: Candace HoCsle~nager KRS:WORD/AGENDANOV06 CITY OF UKIAH REPORT OF DISBURSEMENTS REGISTER OF PAYROLL AND DEMAND PAYMENTS FOR THE MONTH OF NOVEMBER 2006 Demand Payments approved: Check No.: System generated: 73159-73270, 73337 73458, 73459-73583, 73651-73719, 67428 FUNDS: 100 General Fund $210,52262 600 Airpod $53,042.80 105 Measure S General Fund $21478_ 610 Sewer Service Fund 131 Equipment Reserve Fund 611 Sewer Construction Fund $185,249.95 140 Park Development $929.37 612 City/District Sewer $53,297.53 141 Museum Grants $7,555.89 615 City/District Sewer Replace 143 N.E,H.1. Museum Grant 620 Special Sewer Fund (Cap Imp) 150 Civic Center Fund 640 San Dist Revolving Fund 200 Asset Seizure Fund $6,472.42 641 Sanitation District Special 201 Asset Seizure (Drug/Alcohol) 650 Spec San Dist Fund (Camp Imp) 203 H&S Education t 1489 (B)(2)(A1) 652 REDIP Sewer Enterprise Fund 204 Federal Asset Seizure Grants 660 Sanitary Disposal Site Fund $7,185.89 205 Sup Law Enforce. Srv. Fund (SLESF) $1,666.66 661 Landfill Corrective Fund 206 Community Oriented Policing 664 Disposal Closure Reserve 207 Local Law Enforce. BIk Grant 670 U.SW. Bill & Collect $19,489.31 220 Parking Dist. #10per & Maint $693.82 678 Public Safety Dispatch $2,316.86 230 Parking Dist. #1 Revenue Fund $121.00 679 MESA (Mendocino Emergency Srv Auth) $4,400.00 250 Special Revenue Fund $34,43898 695 Golf $52,899,82 260 Downtown Business Improvement 696 Warehouse/Stores $211.44 270 Signa/izaton Fund $15,158.98 697 Billing Enterprise Fund $4,173.98 290 Bridge Fund 698 Fixed Asset Fund $1,001.85 300 2106 Gas Tax Fund 699 Special Projects Reserve $44,134.06 301 2107 Gas Tax Fund $34,613.75 800 Electdc $947,721.76 303 2105 Gas Tax Fund 805 Street Lighting Fund $12,240.29 310 Special Aviation Fund 806 Public Benefits Charges $42,498,04 315 Airport Capital Improvement $74,503.44 820 Water $67,880.95 330 1998 STIP Augmentation Fund $40,389.26 840 Special Water Fund (Cap Imp) $57,699.74 332 Federal Emerg. Shelter Grant 900 Special Deposit T~ust $8,494.28 333 Comm. Development Block Grant $140,000.00 910 WorkeCs Comp. Fund $532.10 334 EDBG 94-333 Revolving Loan 920 Liability Fund 335 Community Dev. Comm. Fund 940 Payroll Posting Fund $373,740.39 340 S9325 Reimbursement Fund 950 General Service (Accts Recv) $1,492.23 341 S.T.P. 960 Community Redev. Agency $1,998.37 342 Trans-Traffic Congest Relief 962 Redevelopment Housing Fund 345 Off-System Roads Fund 965 Redevelopment Cap Imprv. Fund $200.00 410 Conference Center Fund $10,99255 966 Redevelopment Debt Svc. $334,970.11 550 Lake Mendocino Bond $476,17158 975 Russian River Watershed Assoc 575 Garage __ $2~,_629.03_ 976 Mixing Zone Policy JPA $13,357.39 PAYROLL CHECK NUMBERS 73271-73336 DIRECT DEPOSIT NUMBERS 29953-30117 PAYROLL PERIOD 10/22/06-11/4/06 PAYROLL CHECK NOS: 73584-73650 DIRECT DEPOSIT NUMBERS 30118-30281 PAYROLL PERIOD 11/5/06-11/18/06 VOID CHECK NUMBERS: none TOTAL DEMAND PAYMENTS- NP CHECKS $3,347,303~25 TOTAL DEMAND PAYM ENTS~WIRE TRANSFERS* $1,601,562.00 TOTAL PAYROLL VENDOR CHECKS $56,510,91 TOTAL PAYROLL CHECKS $128,855.44 TOTAL DIRECT DEPOSIT $403,635.22 TOTAL PAYROLL TAXES (EFTs) $124,385.22 TOTAL PAYMENTS $5~662~252.04 · VENDOR: KIEWIT PACIFIC COMPANY CERTIFICATION OF CITY CLERK This register of Payroll and Demand Payments was duly approved by the City Council on City Clerk APPROVAL OF Ct'FY MANAGER I have examined this Register and approve same. CERTIFICATION OF DIRECTOR OF FINANCE [ have audited this Register and approve for accuracy and available funds. 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Sc; ' ' ' ~ o ~ooooo~ ~ o Staff developed an RFP and solicited proposals from 12 consultants, and received 4 responses. One response did not comply with the requirements of the RFP and was eliminated from consideration. The RFP requires the consultants to perform the work in two phases: Phase h Initial Evaluation of Gobbi Substation condition and investiqation of alternative:~ for increasing the total substation capacity for Ukiah. A. Consultants will review the Gobbi Substation equipment condition, configuration of the substation connections and make recommendations for improvements to Gobbi Substation. B. As part of the initial consulting effort staff required the consultant to consider three alternatives for increasing Ukiah's substation capacity: 1. Replace the two existing Gobbi Substation transformers with larger units; 2. Addition of a third transformer at Gobbi Substation (and associated reconfiguration of the Gobbi Substation); and, Evaluate the costs and benefits of developing a new (additional) substation at a separate location (further north in Ukiah) to provide increased capacity and a new transmission delivery point. This approach, while more expensive, would enhance Ukiah's system reliability by providing a backup to the Gobbi Substation in the event of another substation outage. Once the Phase I work effort is completed the consultant will submit a report with recommendations and make a presentation to city council. Council will be requested to provide guidance on the options for the substation capacity upgrade. Phase Ih Desiqn of the Gobbi Substation upqrades and SCADA system The consultant would proceed with design of the recommended/approved upgrades for Gobbi Substation. Depending upon which capacity upgrade option is selected; the Gobbi Substation upgrade may include replacement/addition of transformer capacity. However, if council elects Option #3 (the new substation) the upgrades at Gobbi Substation would not include increasing transformer capacity. The design of the new substation (option #3) is not part of this contract and is not funded in the current budget. A separate consulting contract RFP process would be developed if the new substation option is approved by council. The new RFP would include procurement of a new substation site, transmission connection arrangements, and design of the new substation. Consultinq Costs The cost of the Phase I consultant work (initial evaluation and capacity options) is $53,300. The Phase II design and project management costs are estimated to be an additional $253,000; however, the actual Phase II cost will have to be determined once the capacity ITEM NO: 7b MEETING DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: Award of Consulting Contract for Gobbi Substation Upgrade The current budget includes funding for upgrading the Gobbi Substation, including increasing capacity, assessment of existing equipment conditions, and replacement/refurbishment, and the installation of a Supervisory Control and Data Acquisition System (SCADA) to provide monitoring and control capabilities remotely from the Operations and/or Administrative offices. Recent equipment failures and a lengthy outage at Gobbi Substation support the need to proceed with the consulting evaluation and redesign/construction of the Gobbi Substation to ensure Ukiah continued reliable electric service and to provide additional capacity to accommodate increasing electric loads. Interim repairs have been completed; however, the substation is in need of a number of upgrades for long term reliability. Continued on paqe 2 RECOMMENDED ACTION: Approve award of consulting contract to R. W. Beck in the amount of $53,300 for the initial assessment portion of the work. ALTERNATIVE COUNCIL OPTIONS: Select an alternate consultant or reject all bids. FUNDING: Amount Budqeted $300,000 Account Number 800-3642-250.000 Additional Funds Requested NA Citizens Advised: NA Requested by: Jeff Gould, Interim Public Utilities Director Prepared by' Jeff Gould, Interim Public Utilities Director Coordinated with: Candace Horsley, City Manager Attachments: Gobbi Substation Consultant Comparison Attach #1 Approved: City I~anager Candace Horsley, alternatives decision is made (upon completion of the Phase I report). Staff will bring back the Phase II scope of work for council approval after the completion of Phase I. Staff believes it is important to have the design work performed by the same firm that completes the assessment to insure continuity of the information and cost control. Staff is requesting that council approve the Phase I (initial evaluation) contract in the amount of $53,300. Staff reviewed the three proposals considering similar experience, approach to the project, compliance with the RFP, and cost of the Phase I work. Attachment #1 is a comparison/evaluation of the three proposals. Staff recommends the contract be awarded to R. W. Beck. The R. W. Beck proposal complied with the RFP and provided all services including seismic design and oil containment considerations in their design work scope. The consultant has extensive experience with similar projects and their overall services include project management of the construction. While the other bidders had similar capabilities, the R. W. Beck proposal provided the best combination of scope, compliance with the RFP, and Phase I cost. AGENDA ITEM NO: 7c MEETING DATE: December 'Z0.?006 SUMMARY REPORT SUBJECT: ELECTRIC RATE STUDY CONSULTANT SELECTION - AWARD OF CONTRACT TO BORISMETRICS IN AN AMOUNT NOT-TO-EXCEED $29,900 The City of Ukiah Electric Budget for this year included funding of an Electric Cost of Service and Rate Study. Staff developed an Request For Proposals (RFP) for Cost of Service and Rate Study Consulting assistance and mailed the RFP to seven Consulting firms. Proposals were received from: · Borismetrics · EES Consulting · Utility Financial Solutions · Western Consulting Staff evaluated the proposals taking into consideration cost, compliance with the RFP, approach to the study, experience with California municipal rate studies and state laws related to electric utility operations, and experience/expertise of the consulting firm staff. Continued on page 2 RECOMMENDED ACTION: Award Contract for Electric Cost of Service and Rate Study to Borismetrics in the not-to-exceed amount of $29,900. FUNDING: Amount Budqeted $35,000 Account Number 800.3733.250.000 Additional Funds Requested NA Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: NA Jeff Gould, Interim Public Utilities Director Candace Horsley, City Manager 1 - Proposal Comparison Summary Approved: ~'~-(~,. Candace Horsley, City Manager Staff recommends awarding the contract to Borismetrics in the not-to-exceed amount of $29,900. The Borismetrics is the second lowest cost, however the local experience with municipal electric rate studies, knowledge of the California regulatory issues, and their approach to completing the study are evaluated to be superior to the other proposals. Borismetrics will provide, as part of the study, a financial model and training for Ukiah staff to enhance staff's ability to run cost of service updates and evaluate rate alternatives in the future with less outside assistance. This is a significant benefit to Ukiah since there will be ongoing changes in purchased power costs. California competitive market energy purchases will require more frequent review and analysis of Ukiah's power costs. Some consulting assistance may be needed at a future date; however, much of the ongoing rate work could be conducted in-house. AI-I'ACHM ENT.,, I ITEM NO. 7d DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: AWARD OF BID TO SlMPLEXGRINNELL FOR SEMI-ANNUAL INSPECTION OF THE CIVIC CENTER HALON SYSTEMS IN THE AMOUNT OF $3,700 PER YEAR FOR THREE YEARS. The City's contract for mandated inspection of the three Halon systems at the Ukiah Civic Center has expired. The Halon systems function as the fire suppression units for critical portions of the building that contain vital documents and the City's financial and public safety servers. In accordance with EPA rules, the owner of Halon-containing equipment is responsible for proper maintenance in accordance with NFPA (National Fire Protection Association) standards. NFPA 12A, which pertains to Halon 1301 fire extinguishing systems, requires that, at least semiannually, all systems be thoroughly inspected, tested and documented for proper operation by trained and competent personnel. Given the specialized nature of Halon suppression systems, there are very few vendors that provide inspection services. In fact, SimplexGrinnell is currently the only regional vendor that meets the NFPA standards and City of Ukiah insurance requirements. SimplexGrinnell was also the previous provider for this service and currently inspects the unit at the Grace Hudson Museum. SimplexGrinnell submitted a bid in the amount of $3,700 per year for a total contract amount of $11,100 for three years of service. RECOMMENDED ACTION: Award bid to SimplexGrinnell for semi-annual inspection of the Civic Center Halon systems in the amount of $3,700 per year for three years. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine award of bid to SimplexGrinnell is not appropriate and remand to staff with direction. FUNDING: Amount Budqeted $3,700 per year Account Number 100.1915.301.000 Add~ionalFunds Reque~ed 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 Ap p R OV E D~__~.~-~:.~,~_L-'~ Candace Horsley, City ~nager AGENDA ITEM NO: 7e MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: AUTHORIZE AWARD OF CONTRACT WITH PERFECTIO PLUS TRANSCRIPTION FOR POLICE TRANSCRIPTION AT AN AMOUNT NOT TO EXCEED $25,000 PER FISCAL YEAR In December 2005 the City Council authorized a one year sole source contract with Aimee Shields DBA Perfection Plus Transcription (PPT) for exclusive transcription service to the Police Department for the 2006 calendar year. The contract was executed as authorized and the service provided throughout this calendar year with excellent results. The current contract expires 12/31/06 and a new contract is needed to continue this service. The Department is proposing to make the new contract 18 months beginning on 1/1/06 and continuing to 6/30/08 in order to align the contract with our fiscal year budget. PPT has provided a high level of service under the existing contract and possesses the equipment and flexibility to give the department personal service 24 hours a day, 7 days a week. The Department would like to continue our successful contractual relationship with PPT based on proven performance and PPT's unique ability to provide very personal service while maintaining confidentiality. Because of the growing volume of documents being transcribed and the increase in police personnel the Department is proposing a change in monthly compensation from $1,666.66 $20,000 per year for a contracted minimum service of 20 hours per week) to $2,083.33 $25,000 per year for a contracted minimum service of 30 hours per week). Due to PPT's unique qualifications and ability to comply with our strict specifications, it is recommended that the City Council authorize the award of a new 18 month sole source contract with PPT. Funds for these services are budgeted from the Supplemental Law Enforcement Service Grant and have been approved in the Fiscal Year 06/07 budget. RECOMMENDED ACTION: Authorize award of contract with PPT for 18 months at an amount not to exceed $25,000 per year for Police Transcription Services. ALTERNATIVE COUNCIL OPTIONS: Reject proposal and provide staff with direction for alternate action. FUNDING: Amount Bud.qeted $25,OOO Account Number 205.2001.250.000 Additional Funds Requested none Citizens Advised: N/A Requested by: Ukiah Police Department Prepared by: Trent Taylor, Police Captain Coordinated with: Candace Horsley, City Manager and John Williams, Police Chief Attachments: 1 - Contract Approved: Candace Horsley, City Man~er PROFESSIONAL SERVICES CONTRACT ^'I-F^C HM ENT_ / This agreement is made and entered in Ukiah, California, on January 1, 2007, between Aimee Shields DBA "Perfection Plus Transcription" ("Consultant") and the City of Ukiah ("Ukiah"), a general law municipal corporation. This contract supercedes all previous contracts, if any. 1. SERVICES PROVIDED BY CONSULTANT. "Perfection Plus Transcription" will provide no less than 30 hours of transcription services a week to the staff of the Ukiah Police Department. 2. TIME OF PERFORMANCE. The Ukiah Police Department staff will have the availability to submit reports for transcriptions 24 hours a day, 7 days a week, for the length of the contract. Report turn-around will depend on a number of factors: 1) All in-custody reports and priority supplemental reports will be completed and returned to the department electronically within the same day, unless approved by the officer dictating the report or the watch commander; 2) all other reports will be completed and returned to the Department electronically within two days from the time that it was dictated. 3. TERM. The term of this agreement shall begin on January 1, 2007, and end on June 30, 2008, unless extended by mutual written agreement of the parties or terminated as provided in paragraph 9. 4. COMPENSATION. The City of Ukiah shall pay Perfection Plus Transcription as follows for services provided under this agreement: $2,083.33 per month. 5. METHOD OF PAYMENT. The City of Ukiah shall pay Perfection Plus Transcription $2,083.33 on the first Friday of each month. Perfection Plus Transcription will provide report to the Police Department's Operations or Administrative Commander each month so that actual transcription usage can be tracked to ensure that services are satisfactorily being provided and guidelines can be established for future increases or decreases of dictation from the Police Department. 6. CONFIDENTIALITY. Perfection Plus Transcription and operator Aimee Shields, agrees that she will not disclose or make any other use of information about business methods, operations, costs, proposals, budgets, and projections of the City of Ukiah or of any other information of a confidential nature pertaining to the City of Ukiah or its Police Department, without prior written consent of the City Manager, Chief or Police or their representative. 7. INDEMNIFICATIONS AND INSURANCE. INDEMNIFICATION: Perfection Plus Transcription shall indemnify and hold harmless the City of Ukiah and it officers, agents and employees from and against any claim, loss or damage, including the legal and other costs of defending against any claim of damage or lass by third parties, which arises out of Perfections Plus Transcription's performance under this agreement, except for claims, losses or damages resulting from the sole and exclusive negligence or other wrongful conduct of the City of Ukiah or its officers, agents and employees. INSURANCE: Perfection Plus Transcription shall comply with the insurance requirements set forth by the City of Ukiah and maintain Comprehensive General Liability Insurance at all times while providing services under this contract. 8. RETURN OF DOCUMENTS. Upon termination of Perfection Plus Transcriptions services to the City of Ukiah under this agreement, Perfection Plus Transcription agrees to return all written and other materials, which are not matters of public record, furnished to her by the City of Ukiah. Any documents created by Perfections Plus Transcription as part of the services provided under this agreement shall be the property of the city of Ukiah, which shall own the copyright to the same. Any and all such documents shall be furnished to the City of Ukiah upon request. 9. TERMINATION. This agreement may be terminated by the City of Ukiah: 1) for breach of this agreement; 2) because funds are no longer available to pay Perfection Plus Transcription for services provided under this agreement; 3) The City of Ukiah no longer wishes to continue with the transcription program for which Perfection Plus Transcription was retained. The City of Ukiah Shall give written notification to Perfection Plus Transcription of any alleged breach of the agreement and of the action required to cure the breach. If Perfection Plus Transcription fails to cure the breach within the time specified in the notice, the contract shall be terminated immediately. If terminated for lack of funds or abandonment of the transcription program, the contract shall terminate 30 days after the date that the notice of termination is given to Perfection Plus Transcription. Ukiah shall pay Perfection Plus Transcription only for services performed and expenses incurred as of the effective termination date. In such an event, all finished or unfinished documents, data, studies, survey, drawing, maps, models, photographs and reports prepared by Perfection Plus Transcription under this agreement shall, at the option of the City of Ukiah, become its property and Perfection Plus Transcription shall be entitled to receive just and equitable compensation for any work satisfactorily completed hereunder, subject to off-set for any direct or consequential damages the City of Ukiah may incur as a result of Perfection Plus Transcription's breach of contract. Perfection Plus Transcription may terminate this agreement on 30 days' written notice to the City of Ukiah. In that event, Perfection Plus Transcription shall be compensated and documents shall be handled as provided in this paragraph. 10. MODIFICATION OF AGREEMENT. The City of Ukiah, may from time to time request changes in the scope of the services of Perfection Plus Transcription to be performed hereunder. Such Changes, including any increase or decrease in the amount of Perfection Plus Transcription's compensation, which are mutually agreed upon by and between the City of Ukiah and Perfection Plus Transcription, shall be incorporated in written amendments to this agreement. To be effective, all such changes or amendments referred to in this section must be agreed upon in writing by both parties to this agreement. 11. ASSIGNMENT. Perfection Plus Transcription shall not assign any interest in this agreement, and shall not transfer any interest in the same (whether by assignment or novation), without the prior written consent of the City of Ukiah. 12. APPLICATION OF LAWS. The parties hereby agree that all applicable Federal, State and Local Rules, Regulations and Guidelines not written into this agreement shall hereby prevail during the period of this agreement. 13. INDEPENDENT CONTRACTOR. It is the express intention of the parties hereto that Perfections Plus Transcription is an independent contractor and is not an employee, joint venturer, or partner of the City of Ukiah for any purpose whatsoever. The City of Ukiah shall have no right to, and shall not control the manner or prescribe the method of accomplishing those services contracted to and performed by Perfection Plus Transcription under this agreement, and the general public and all governmental agencies regulating such activity shall be so informed. Those provisions of this agreement that reserve ultimate authority in the City of Ukiah have been inserted solely to achieve compliance with Federal and State Laws, Rules, Regulations and interpretations thereof. No such or other provisions of this agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between Perfection Plus Transcription and the City of Ukiah. Perfections Plus Transcription shall pay all estimated and actual Federal and State income and self-employment taxes that are due the state and federal government, and shall furnish and pay worker's compensation insurance, unemployment insurance and any other benefits required by law for herself and her employees, if any. Perfection Plus Transcription agrees to indemnify and hold harmless the City of Ukiah and its officers, agents, and employees from and against any claims or demands by federal, state and local government agencies for any such taxes or benefits due, but not paid by Perfection Plus Transcription, including any legal costs associated with defending against any audit, claim demand or lawsuit. 14. GOVERNING LAW. This agreement shall be governed by and construed in accordance With the laws of the State of California any legal action concerning the agreement must be filed and litigated in the proper court in Mendocino County. 15. SEVERABILITY. If any provision of the agreement is held by a court of competent Jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way. 16. INTEGRATION. This agreement contains the entire agreement among the Parties and supersedes all prior and contemporaneous oral and written agreements, understandings, and representations among the parties. No amendments to this agreement shall be binding unless executed in writing by all of the parties. 17. WAIVER. No waiver of any of the provisions of this agreement shall be Deemed or shall constitute a waiver of any other provision, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the party making the waiver. 18. NOTICES. Whenever notice, payment or other communication is required or Permitted under the agreement, it shall be deemed to have been given when personally delivered or when deposited in the United States Mail with proper first-class mail with proper first-class postage affixed thereto and addressed as follows: CONSULTANT CITY OF UKIAH Perfection Plus Transcription Aimee Shields 1480 Chardonnay Court Ukiah, CA 95482 City of Ukiah c/o Civic Center 300 Seminary Avenue Ukiah, CA 95482 19. PARAGRAPH HEADING. The paragraph headings contained herein are for convenience And reference only, and are not intended to define or limit the scope of this agreement. 20. DUPLICATE ORIGINALS. This agreement may be executed in one or more duplicate Originals bearing the original signature of both parties and when so executed and such duplicate original shall be admissible as proof of the existence and terms of the agreement between the parties. WHERFORE, the parties have entered into this agreement on the date first written above. CONSULTANT: CITY OF UKIAH: By: By: Title: Title: ITEM NO. 7f DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: REPORT TO COUNCIL ON CONTRACT EXTENSION WITH WHITLOCK AND WEINBERGER TRANSPORTATION, INC. (W-TRANS) FOR PROFESSIONAL SERVICES IN THE PREPARATION OF A DOWNTOWN PARKING IMPROVEMENT STUDY AND AUTHORIZE BUDGET AMENDMENT IN AN AMOUNT NOT TO EXCEED $6,101.40 FOR SAME Background: In November of 2003, Council approved a contract with Whitlock and Weinberger Transportation, Inc (W-Trans) for the preparation of a Downtown Parking Improvement Study. The study was to look at existing and projected future parking deficiencies. The contract also called for a list of solutions to address the futura parking deficiencies. The list would consist of parking management, enforcement and/or engineering solutions which could include the following: · Parking Management Solutions - a change in supply of permit parking, elimination of permit parking assigned spaces, etc. · Enforcement Solutions - a change of time restrictions, use of meters, etc. · Engineering Solutions - recommendations for a new parking structure, re-striping to diagonal parking, a parking guidance system, and re-striping of existing lots. Continued on Page 2 RECOMMENDED ACTION: Receive report on contract extension with Whitlock and Weinberger Transportation, Inc. for completion of a Downtown Parking Improvement Study and authorize budget amendment in an amount not to exceed $6,101.40 for same. ALTERNATIVE COUNCIL POLICY OPTION: 1) Revise proposed addendum; 2) Provide Staff with direction. FUNDING: Amt From Account To Account Additional Funds Budqeted Number Number Requested $54,147 965.5616.250.000 220.4601.250.000 N/A Requested by: Prepared by: Coordinated with: Attachments: City Manager Don Ballek, Assistant to City Manager/Economic Development Candace Horsley, City Manager 1 - Original Contract (11/15/03) 2 - Contract Amendment (8/23/04) 3 - Contract Extension Amendment (11/28/06) 4- Correspondence with W-Trans Confirming Scope of Work Ap PROVED: ~,.J~' .--~_.~ '~ C~'-d~ce Hor~ley, City Ma~,t~er Study Area: The study area includes the portion of the City of Ukiah bounded by Dora Street to the west, Scott and Norton Streets and Walnut Avenue to the north, West Gobbi Street to the south, and Mason and Main Streets to the east. The primary focus of the report is parking conditions in the downtown core area, with secondary emphasis on surrounding residential and commercial areas. The downtown core area is roughly bounded by Henry Street, Seminary Avenue, Main Street, and Pine Street, and includes all five downtown city-owned public parking lots. The Report: W-Trans presented to the city a Downtown Parking Improvement Study Base Conditions Report on May 13, 2004. The following elements are included in the report: · Description of existing parking policies and permit program · Data collection methodology and results · Identification of current parking deficiencies and inefficiencies · Public input regarding downtown parking. Phase II of the Downtown Parking Improvement Study was put on hold pending completion of the Citywide Traffic project evaluating the potential for one-way streets in downtown. Staff is now attempting to resurrect this parking study and has re-initiated contact with W-Trans and negotiated a plan to complete the study. The parking study will look at current and future parking demand and will make recommendations based upon their findings. (Attachment 4) Staff is requesting: a) council receive report on attached addendum (Attachment 3) to the 2003 Agreement (Attachment 1) extending the initial agreement while retaining the original agreed upon price of $6,101.40; and b) authorize a budget amendment for this work. CITY OF UKIAH AGREEMENT FOR PROFESSIONAL' SERVICES PREPARATION OF A DOWNTOWN PARKING IMPROVEMENT STUDY FOR THE CITY OF UKIAH.. · 's 5m . This agreement shall be considered a contract, and ~s entered into th 1 day of November, 2003, by and between the CITY OF UKIAH, a general law municipal corporation, hereinafter referred to as "CITY" and Whitlock and Weinberger Transportation, Inc., a professional corporation, hereinafter referred to as the "CONSULTANT." PREMISES The purpose of this agreement is the preparation and completion by CONSULTANT of a Downtown Parking Improvement Study for the City of Ukiah, more particularly described in CONSULTANT's proposal, dated August 18, 2003, referred to as "Exhibit A" or "PROPOSAL," and attached to this agreement. CITY may retain an independent contractor to perform special services for CITY or any department thereof. CONSULTANT is willing and able to perform duties and render serv[ces as required for the preparation and completion of such Downtown. Parking Improvement Study, which is determined by the City Council to be necessary for the welfare of residents of the CITY. CITY believes the provision of these services to the residents is in their best interests, and CONSULTANT agrees to perform such duties and render such services as outlined below: AGREEMENT CITY and CONSULTANT agree as fellows: ARTICLE I SERVICES OF CONSULTANT 1.01 CONSULTANT shall provide those technical, expert, and professional services as described ~ CONSULTANT'S (Exhibit A), and shall fulfill the requirements contained in the scope of work contained in the Request for Proposals (RFP) issued by the City for the project, attached hereto as Exhibit B and incorporated herein by this'reference. CONSULTANT shall provide such services within the time limits described below. 1.02 The absence, omissJor~, or failure to include in this agreement items which are considered to be a part of normal procedure for a study of this type or which involve professional judgement, shall not be used as a basis for submission of inadequate work or incomplete performance. 1.03 CITY relies.upon the professional abili~ and stated experience of CONSULTANT as a material inducement to entering into this agreement. CONSULTANT understands the use to which the CITY will put the Work products and hereby warrants that all findings, recommendations, studies, and-reports shall be made and prepared in accordance with generally accepted professional practices in the area where CONSULTANT maintains offices. 1.04 1.05 1.06 1.07 1.08 1.09 2.01 2.02 When the agreement calls for the preparation of studies and reports, they shall be in a form acceptable to the CITY. CONSULTANT shall bear the expense of all printing and reproduction costs until final reports are accepted by the CITY, at which time CONSULTANT shall turn aver to CITY all documents. The following maximum time Iimits are prescribed for the delivery of reports subsequent to contract execution: a. Submission of Draft Downtown Parking Improvement Study Report, for staff approval and for presentation to City Council at its regularly scheduled meeting: Within g0 days of November 15, 2003 b. Submission of Final Downtown Parking Improvement Study Report, for approval: Within 30 days of submittal of comments by the City on the draft study. Extensions of any of the above time limits may be made by written consent of the City Manager of CITY. Time is of the essence and of the utmost importance in the performance of the agreement. CONSULTANT'shall deliver ten (10) copies of Draft Downtown Parking Improvement Study Report to the CITY. CONSULTANT shall deliver up to t',yenty-five (25) copies of Final Downtown Parking Improvement Study Report to the CITY. CONSULTANT shall be responsible for verbally communicating the findings of the Downtown Parking Improvement Study to staff &nd to the City Council at regularly scheduled meetings. CONSULTANT shall perform any additi~)nal services as may be required due to significant changes in general scope of the project. Such additional services shall be paid for by supplemental agreement and shall conform to the rates of payment specified in Article V below. ARTICLE II SERVICES OF CITY Upon request, CITY shall provide CONSULTANT any information in its possession or reasonably available to it without substantial expense that consultant may need to perform services under this agreement. CITY through the City Manager or her designee will examine the required Working Papers, Study, and other submittals from CONSULTANT and will render, in writing, decisions or comments pertaining to their adequacy and acceptability within ten (10) working days of receipt thereof. 3.01 3.02 ARTICLE Ill TERM OF AGREEMENT The term of this agreement shall be 180 days. This agreement may be extended on its same terms and conditions for a period not to exceed sixty (60) days, upon execution of written change to the agreement between the CITY and CONSULTANT. The execution of this agreement by the CITY shall constitute the CONSULTANT'S authorization to proceed immediately with the performance of the work described by Exhibit A. 3.03 3.04 3.05 All work by CONSULTANT sha~l be completed pursuant to Exhibit A and paragraph 1.05 above. CONSULTANT'S time to peFform shall be extend by the number of days its performance is delayed by circumstances beyond its control. CONSULTANT acknowledges that timely performance of services is an important element of this agreement and will per[cfm services in a timely manner as provided in paragraph 1.05 above and consistent with sound professional practices. If CITY requests significant modifications or changes in the scope of this project, the time of performance shall be adjusted appropriately. The number of days of said extension shall be the final decision of CITY. 4.01 4.02 ARTICLE IV COST OF SERVICES CONSULTANT has been selected by the CiTY to provide services described in Exhibit A, attached hereto and incorporated herein by reference, for which compensation shall not exceed $40,000 to be invoiced on a time and expense basis, except for additional compensation at the CONSULTANT'S standard rates as described in the attached proposal. If CONSULTANT'S billings on A time and expense basis exceeds the maximum compensation ceiling established in 4.01 above, the CiTY shall have no obligation to pay such cost overrun for the services specified in Exhibits A and B. 5.01 5.02 5.03 ARTICLE V PAYMENT FOR SERVICES CITY shall pay CONSULTANT for work required for satisfactory completion of this agreement in amounts to be determined in accordance with the methods described in paragraph 5.02 below. Payment scheduling: Total payment not to exceed $40,000, except for additional compensation at the CONSULTANT'S standard rates as described in the pROPOSAL. Fees for professional services as outlined herein shall be paid as follows: a. The Consultant will be paid upon job completion based on the Consultant's generally applicable houdy rates and reimbursable expenses, the total of which shall not exceed the contract price stated in 5.02 above plus authorized costs described in 5.05 below. The fee will be paid based on an invoice to the City from the Consultant detailing the work performed and the time and costs expended. b. Partial compensation may be allowed for satisfactory progress on a monthly basis, subject to the prior approval of the City Engineer. Payment shall be based on invoices to the City from the Consultant detailing the.work performed and the time and reimbursable costs expended. Invoices may be submitted no more frequently than every 30 days. In no case shall the total of the invoices for progress payments exceed 75% of the amount specified in 4.01 above. c. Payment of any CONSULTANT invoices above and beyond the amount stated in 5.02 b above, shall be made after approval of the Final Downtown Parking Improvement Report by the CITY. Payments to CONSULTANT shall be based on itemized invoice(s) submitted by CONSULTANT and verified by the City Engineer. 5.04 5.05 Progress payments, if authorized, will be made by CITY within thirty (30) working days of approval of invoice by CITY. Final payment will be made by CITY within thirty (30) working days of approval of the Final Downtown Parking Improvement Report by the City Engineer and acceptance by the City Council. If CITY substantially alters the scope of work to include additional'analyses, the total payment, cost of services and the terms of payment may be changed by amending the agreement. 6.01 6.02 ARTICLE VI PROJECT INSPECTION AND ACCOUNTING RECORDS Duly authorized representatives of the CITY shah have a dght of access to the CONSULTANT'S files and records relating to the project included in the agreement and · may review the work at appropriate stages dudng performance of the workwith ~ 24-hour notice. CONSULTANT must maintain accounting records and other evidence pertaining to costs incurred, which records and documents shall be kept available at the CONSULTANT'S California office during the contract period and thereafter for thre~ (3) years from the date of final payment. 7.01 7.02 ARTICLE DISPOSITION OF FINAL REPORTS ' All final original reports and documents together with such backup data as required by this agreement shall be and shall remain the sole property of CITY. Reuse or modification by CITY or others for purposes outside this agreement shall be at user's sole risk. CONSULTANT may retain and use copies of its work produced in the performance of this agreement for reference and as documentation of its experience and capabilities. CONSULTANT'S attention is directed to the required notice under Govemment Code Section 7550, which states in part that "any documents or wdtten !-eports prepared as a requirement of this contract shall contain, in a separate section preceding the main body of the document, the number and dollar amounts of all contracts and subcontracts relating to the preparation of those documents or reports if the total cost for work by non- employees of the public agency exceeds $5,000.00." 8.01 8.02 ARTICLE VIII TERMINATION OF AGREEMENT At any time CiTY may suspend indefinitely or abandon the project, or any part thereof, and may require CONSULTANT to suspend the performance of the service. In the event the CITY abandons or suspends the project, CONSULTANT shall receive compensation for services rendered to date of abandonment and suspension based on invoices for services performed prior to receipt of the notice from the CITY, not to exceed the amounts specified in Section 5.02. It is understood and.agreed that should CITY determine that any part of the work involved in the program is to be suspended indefinitely, abandoned, or canceled; said agreement shall be amended accordingly. Such abandonment or cancellation of a portion of the program shall in no way void or invalidate this agreement as it applies to any remaining portion of the project. 8.03 9.01 10.01 I1.01 12.01 If, in the opinion of the CITY, the CONSULTANT fails to perform or provide prompt, efficient, and thorough service, or if CONSULTANT fails to complete the workwithin the time limits provided, CITY shall have the right to give notice in writing to CONSULTANT of its intention to terminate this agreement. The notice shall be delivered to CONSULTANT at least seven (7) days pdor to the date of termination specified in the notice. Upon such termination, CITY shall have the dght to take CONSULTANT'S studies and reports insofar as they are complete and acceptable to CITY, and pay CONSULTANT for his performance rendered, in accordance with Sections 5.01, 5.02, and 5.03 herein, prior to the delivery of the notice of intent to terminate, less the amount of damages, general or consequential, which CITY may.sustain as a result of CONSULTANT'S failure to satisfactorily perform his obligations under this agreement. ARTICLE IX RESPONSIBILITY FOR cLAIMS AND LIABILITIES HOLD HARMLESS: The CONSULTANT shall indemnify and hold harmless the CITY, its agents, officers, and employees against and from any and ali claims, lawsuits, actions, liability, damages, losses, expenses, and costs (including but not limited to attorney's 'fees}, brought for, or on account of, injuries to or death of any person or persons including employees of the CONSULTANT, or injudes to or destruction of property, adsing out of, or resulting from, the performance of the work described herein, provided that any such claim, lawsuit, action, liability, damage, loss, expense, or cost is caused in whole or in part by any negligent or intentional wrongful act or omission of the CONSULTANT, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, cONSULTANT shall have no duty to indemnify or defend ClT~ under this paragraph if the damage or injury is caused by the active and sole negligence or willfully wrongful act or omission of CiTY or its officers or employees. CITY agrees to timely notify CONSULTANT of any such claim and to cooperate with CONSULTANT to allow CONSULTANT to defend such a claim. ARTICLE X INSURANCE CONSULTANT, at its expense, shall secure and maintai~ at'all times dudng the entire period of performance of this agreement, insurance as set forth in "Exhibit C", attached hereto, and incorporated herein by reference, and shall furnish policy endorsements, certificates of insurance and other documents as required in said Exhibit. ARTICLE Xl GENERAL COMPLIANCE WITH LAWS it is understood and agreed that the CONSULTANT will comply with all federal, state, and local laws and ordinances as may be applicable to the performance of work under this agreement. ARTICLE ENDORSEMENT OF DOCUMENTS It is understood and agreed that, the CONSULTANT will endorse studies, reports, and documents in accordance with applicable portions of the Business and Professions Code of the State of California. 13.01 13.02 ARTICLE XIII NONDISCRIMINATION coNsULTANT certifies that it is in compliance with the Equal Employment Opportunity Requirement of Executive Order 11246, as amended by Executive Order 11375, Title VII of the Civil Rights Act of 1964, the California Fair Employment Practices Act, and any ether Federal or State laws pertaining to equal employment opportunity and that it will not discriminate against any employee or applicant for employment on the basis of race, color, religion, handicap, age sex, national odgin, or ancestry, in matters pertaining to recruitment, hiring, training, upgrading, transfer, compensation, or termination. In the event of the CONSULTANT'S noncompliance with the nondiscrimination provisions of this agreement, the CITY shall impose such contract sanctions as it may determine to be appropriate including, but not limited to: a. Withholding of payments to the CONSULTANT ~nder the agreement until the CONSULTANT complies, and/or b. Cancellation, termination, or suspension of the Agreement in whole or in pad. 14.01 ARTICLE XlV INDEPENDENT CONSULTANT The CONSULTANT, in accordance with its status as an independent contractor, covenants and agrees that it will conduct itself consistent with such status, that it will neither hold itself out as nor claim to be an officer or employee of the CITY, and that it will not make any claim, demand, or application to or for any dght or privilege applicable to an officer or employee of the CITY including, but not limited to, worker's compensation coverage, unemployment benefits, and retirement membership or credit. Consultant shall pay all estimated and actual federal and state income and se!f-employment taxes that are due the state and federal government and shall furnish and pay workeCs compensation insurance, unemployment insurance and any other benefits required by law for itself and its employees, if any. CONSULTANT agrees to indemnif~ and hold CITY and its officers, agents and employees harmless from and against any claims or demands by federal, state or local government agencies for any such taxes or benefits due but not paid by CONSULTANT, including the legal costs associated with defending against any audit, claim, demand or law suit. 15.01 15.02 15.03 ARTICLE XV SUCCESSOR AND ASSIGNMENTS The CITY and the CONSULTANT each binds itself, its partners, successors, and executors, administrators, and assigns to the other party to this agreement, and to the partners, successors, executors; administrators, and assigns to such party in respect to all covenants of this agreement. Except as stated above, neither the CITY nor the CONSULTANT shall assign, sublet, or transfer his interest in this agreement without the written consent of the other, however, the CONSULTANT reserves the right to assign the proceeds due under this agreement to any bank or person. In the case of death of one or more members of the firm of the CONSULTANT, the surviving member or members shall complete the professional services covered by this agreement. 1G.Oi iG.02 17.01 18.01 19.01 ARTICLE XVI EXTENT OF AGREEMENT This agreement shall consist of this agreement, the PROPOSAL submitted by W-Trans, dated August 18, 2003, identified as Exhibit A, as attached hereto and incorporated herein, and the insurance requirements set forth in the attached Exhibit B. This agreement constitutes the whole agreement between the CITY and CONSULTANT and any other representations or agreements are superseded by the terms of this agreement· ARTICLE XVll PARAGRAPH HEADINGS The paragraph headings contained herein are for convenience and reference only and are not intended to define or limit the scope of this contract. ARTICLE XVIII NOTICE Whenever a notice to a party is required by this agreement, it shall be deemed given when deposited with proper address and postage in the U.S. mail or when personally delivered by courier, fax or otherwise as follows: CITY: City of Ukiah Civic Center 300 Seminary Drive Ukiah, CA 95482 FAX: 707-463-6204 A'Ff'N: Larry DeKnobtough, Director of Community Services CONSULTANT/ CONTRACTOR: W-Trans 509 Seventh Street, Suit6 101 · Santa Rosa, CA 95401 FAX: 707-542-9590 ATTN: Steve Weinberger, principal ARTICLE DUPLICATE ORIGINALS This agreement may be. executed in one or more duplicate originals bearing the odginal signature of both parties and when so executed and such duplicate original shall be admissible as proof of the existence and terms of the agreement between the parties. ARTICLE XX _FORUM SELECTION CONSULTANT and cITY stipulate and agree that any litigation relating to the enforcement or interpretation of the agreement, arising out of CONSULTANT's performance or relating in any way to the work shall be brought in Mendocino County and that venue will lie in Mendocino County. CONSULTANT hereby waives any right it might otherwise have to seek a change of venue based on its status as an out-of-county corporation, or on any other basis. EXECUTION OF AGREEMENT iN WITNESS WHEREOF, the par~ies hereto have caused their duly authorized officers to execute this agreement'in duplicate the day and year first above written. CiTY OF UKIAH Candace Horsley, City Manage~ Date \ CONSULTANT/CONTRACTOR Ste~e(~/e~n erg er., ~cipal Date iRS IDN Number APPROVED AS TO FORM: David Rappor[, City Attorney Date Downtown Parking Study Contract LD/Zip.Agr AGENDA ITEM NO: 7q MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: STATUS OF THE LAKE MENDOCINO HYDROELECTRIC POWER PLANT EQUIPMENT REFURBISHMENT EMERGENCY At its May 17th, 2006 meeting, Council voted unanimously to declare the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project an emergency and authorized the City Manager to take action to resolve the emergency until such time that the emergency no longer exists. To that end, the City Manager has contracted with Source California Energy Services, Inc. to perform the work necessary to refurbish the power plant equipment that was damaged and contaminated as a result of flooding that occurred earlier this year. Statute requires that progress reports be made at every City Council meeting until such time that the contract is complete and the emergency no longer exists. A progress report from the Project Manager for Source California Energy Services, Inc. is detailed in Attachment 1. RECOMMENDED ACTION: Staff recommends that the Council continue to declare by a 4/5 vote that the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project is a continuing emergency and to support the refurbishment contract as performed by Source California Energy Services, Inc. until such time that the contract is complete and an emergency no longer exists. ALTERNATIVE COUNCIL OPTIONS: Given that Council declared the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project an emergency at its May 17th Council meeting, and based on that action, the City entered into contract to resolve the emergency, there is no alternative policy option. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council Liz Kirkley, Electrical Distribution Engineer Candace Horsley, City Manager; David Rapport, City Attorney; Jeff Gould, Interim Utility Director 1 - 12/11/06 Source California Hydro Proiect Status Report Approved: ~ Candace Horsley, Cit1 Manager ATTACHMENT 1 Date: December 11,2006 To: City of Ukiah Below is a short summary of work that has been accomplished in the last three weeks. Safety and environmental compliance continues to be accident and incident free. 1 ) The Unit 1 turbine runner has been placed on the generator shaft with the final pressed fit currently in progress. The Unit 2 turbine runner requires additional machining for a proper fit to the generator shaft. 2) Both Unit 1 and 2's Turbine Stop Valves (TSV's) have been installed, hydraulically actuated, and operate better than they have in the last twenty years. 3) Both Unit 1 and 2's Woodward governors/gate limit actuators have been tested and operated correctly. 4) The conduit and wire installation for the two Uninterruptible Supplies (UPS's) continues. 5) The 108" Bypass Cone Valve has been completely tested and is in service at 100% open. 6) The original existing and retained front panel mounted indicators and corresponding transducer calibrations are complete. 7) A recommendation for the scope of work on the transfer trip protection has been submitted with a corresponding budget estimate. 8) SCADA demolition is complete and hardware installation of the Programmable Loop Controllers has started. 9) The front panel modifications for the generator protection relay installations are being installed since they were just picked up from the paint shop. In addition, some of the Schweitzer devices are being installed. 10) The river flow monitoring instrumentation installation sketches are completed and currently we are waiting for backordered pads. 11 ) All of the penstock piping has isolation valves in place so that the plant is ready for the closing of the Tainter Valve and eventual pressurization of the penstocks. Paul B. Dirks Project Manager/Sr. Mechanical Engineer Source California Energy Services, Inc. ITEM NO: 7h MEETING DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: REPORT OF THE ACQUISITION OF SERVICES FROM TIM NARVAEZ IN THE AMOUNT OF $9,642.50 FOR SLOPE REPAIR WORK AT THE UKIAH SOLID WASTE DISPOSAL SITE SUMMARY: In compliance with §1522 of the Ukiah City Code, this report is being submitted to the City Council for the purpose of reporting the acquisition of services costing $5,000 or more but less than $10,000. While staff invited a number of contractors to bid upon the work, only one proposal was received from Tim Narvaez. Mr. Narvaez has the size and type of heavy equipment needed for the slope repair work at the Ukiah Solid Waste Disposal Site. The Purchasing Department issued a purchase order to Tim Narvaez for slope repair. The total cost for slope repair work is $9,642.50. The project is a result of storm damage in December 2005 - January 2006 and will be reimbursed through FEMA. RECOMMENDED ACTION: Receive and file report regarding the acquisition of services from Tim Narvaez in the amount of $9,642.50. ALTERNATIVE COUNCIL OPTIONS: N/A FUNDING: Amount Budgeted $110,000.00 From Acct No. 660.3401.250.000 FEMA 015 Additional Funds Requested None Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Tim Eriksen, City Engineer and Director of Public Works Rick Seanor, Deputy Director of Public Works Candace Horsley, City Manager None Approved: Candace Ho~Manager ITEM NO. MEETING DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: REJECTION OF CLAIM FOR DAMAGES RECEIVED FROM SYLVIA H CORONA AND REFERRAL OF CLAIM TO THE JOINT POWERS AUTHORITY, REDWOOD EMPIRE MUNICIPAL INSURANCE FUND A claim from Sylvia H. Corona was received by the City of Ukiah on December 1, 2006 alleging property damage due to a sewer main blockage that occurred on November 28, 2006 at 303 Crestview Drive. Pursuant to City policy, it is recommended the City Council reject this claim and refer it to the Redwood Empire Municipal Insurance Fund (REMIF). RECOMMENDED ACTION: Reject claim for damages received from Sylvia H Corona and refer to the Joint Powers Authority, Redwood Empire Municipal Insurance Fund. ALTERNATIVE COUNCIL POLICY OPTIONS: Alternative action not advised by the City's Risk Manager. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Yes Claimant Sue Goodrick, Risk ManagedBudget Officer Candace Horsley, City Manager 1. Claim from Sylvia H Corona, pages 1-4. APPROVED:, Candace anager Horsley, EXHIBIT A File With: City Clerk's Office City of Ukiah 300 SeminaQ/Ave Ukiah, CA 95482 CLAIM FOR MONEY OR DAMAGES AGAINST THE CITY OF UKIAH RESERVE FOR FILING STAMP C City of Ukiah ,_ A claim must be presented, as prescribed by the Government Code of the State of California, by the claimant or a person acting on his/her behalf and shall show the following: If additional space is needed to provide your information, please attach sheets, identifying the paragraph(s) being answered. 1. Name and address of the Claimant: Name of Claimant: Address: Address to which the person presenting the claim desires notices to be sent: Name ofAddressee:~ ~ ~V~ Telephone: Address: The date, place and other circumstances of the occurrence or transaction which gave rise to the claim asseded. Date of Occurrence: pod, ,~",~/] 0 ~,9 Time of Occurrence: ~,~4 Circumstances giving rise to this claim: General description of the indebtedness, obligation, injury, damage or loss incurred so far as it may be known at the time of the pres,entation of Iheclajm. ~v e o names of the public employee or employees causing the inju~, damage, or loss, if known. Page I of 3 If amount claimed totals less than $10,000: The amount claimed, if it totals less than ten thousand dollars' ($10.000) as of the date of presentation of the claim, including the estimated amount of any prospective injury. damage, or loss, insofar as'it may be known at the time of Ihe presentation oi' the claim, together with the basis of computation of the amount claimed. Amount Claimed and basis for computation: amount shall be included in the claim How er ' -"~ -~' ~eeds lan thousand dolors ($10 000) n0 dolar A Ii-:'-~ -' ' _ · _er__ ,. ~.~. ,,~u ~te whether ~e claim would be a limited civil ~ ,,.,uu clvl, ~se is one where the recove~ sought, exclusive of attorney fees. interest and ~ud costs does ~ exceed $25.000. An unlimited civil case is one in ~hich the recove~ sought is more ~an $25.000 Limited Civil Case ~ Unlimited Civil Case You are required to provide the info~ation requested above in order to comply with Government Cod e] 10. Claimant(s) So~:ial Secu..r[ty Number(s): (optional) Claimant(s) Date(s) of Birth: Name, address and telephone number of any witnesses to the occurrence or transaction which gave rise to the claim asserted: 4 3,3v i 54- If the claim involves medical treatment for a claimed injury, please provide the name, address and telephone number of any doctors or hospitals providing treatment: If applicable, please atlach any medical bills or reports or similar documents supporting your claim. 11 If the claim relales to an automobile accident: Claimant(s) Auto ins. Co.: Telephone: Address: Insurance Policy No.: Insurance Broker/Agent: Telephone: Address: Claimant's Veh. Lic. No.: Vehicle Make/Year: Claimant's Drivers Lic. No:: Expiration: ff applicable, please atlach any repair bills, estimates or similar documents supporting your claim. Page 2 of 3 READ CAREFULLY For ail accident c~aims, place on the following diagram the name City of Ukiah vehicle; location of Ci~/ of Ukiah vehicle at lime of of streets, including North, East, South, and West; indicate place ,~f accident by "X'* and by showing house numbers or distances to :reel corners. If City of Ukiah vehicle was involved, designate oy letter "A" location of City of Ukiah vehicle when you first saw it, and by "Et" location of yourself or your vehicle when you first saw accident by "A-I" and location of yourself or your vehicle at the time of Ihe accident by "B-1" and the point of impact by "X" NOTE: If diagrams below do not fit the situation, attach hereto a proper diagram signed by claimant CURB SIDEWALK PARKWAY SIDEWALK CURB Warning: Presentation of a false claim is a felony (Penal Code §72). Pursuant to California Civil Prodecures §1038, the City/Agency may seek to recover all costs of defense in the event an action is filed which is later determined not to have been brought in good faith and with reasonable cause. Signatur - -' Date: )~)~, Page 3 of 3 Silva Septic Service Silva Septic Service 986 Mazzoni St. Ukiah, Ca. 95482 707-462-8304 Fax 463-2272 Bill To SYLVIA CORONA 303 CRESTVIEW DR. UKIAH, CA 95482 Invoice Date Invoice # 11/28/2006 32857 P.O, No. Terms Project Due on receipt Quantity Description Rate Amount 1 PUMP SEWAGE FROM UNDER HOUSE 600.00 600.00 1 ROOTER SERVICE ON THE MAIN L1NE 80.00 80.00 2 SPREAD LIME UNDER HOUSE AFTER PUMPING 20.00 40.00"1' CALLED CITY OF UK1AH TO CLEAN THE CITY MAIN LINE Use Tax 7.25% 2.90 Total $722.90 AGENDA SUMMARY ITEM NO. 10a DATE: December 20, 2006 REPORT SUBJECT: STATUS REPORT ON THE UKIAH SKATE PARK DEVELOPMENT PROJECT AND AUTHORIZE THE RELEASE OF THE REQUEST FOR PROPOSALS FOR PROFESSIONAL DESIGN SERVICES FOR THE DEVELOPMENT OF THE UKIAH SKATE PARK In 2005 the City of Ukiah was awarded a $500,000 competitive grant from the State of California Department of Parks and Recreation for the development of the Ukiah Skate Park. The grant was received shortly after the City successfully secured a one acre site at the Ukiah Rail Depot for the development of the project. In addition, the Watkins Family has since donated three parcels adjacent to the Depot site which will be incorporated into the project primarily for access from Leslie Street and parking. The scope of the grant for Ukiah Skate Park Development Project includes the following components: · 20,000 square foot skate park consisting of a self-contained concrete structure with berm style walls, bowls, ramps, rails and other features common to such parks. · Landscaped park encompassing the skate structure. · Additional amenities include seating, picnic facilities, restrooms, and parking Continued on Page 2 RECOMMENDED ACTION: Receive the status report on the Ukiah Skate Park Development Project and authorize the release of the Request for Proposals for Professional Design Services for the development of the park. ALTERNATIVE COUNCIL OPTIONS: Reject the release of the Request for Proposals for Professional Design Services for the development of the Ukiah Skate Park and remand to staff with direction. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Ukiah Skate Park Committee N/A Sage Sangiacomo, Community/General Services Director and Maya Simerson, Community Services Supervisor Candace Horsley, City Manager 1. Draft Request for Proposals for Professional Design Services APPROVED: ~t~->~'~ Can--dace Horsley, Cit~}"~anager As a requirement of the grant, the City must raise at least $214,857 in matching funds. The match can include monetary/material donations and volunteer labor/equipment. To date, the Ukiah Skate Park Committee has raised $174,022 and secured various labodmaterial donations including irrigation materials and trees from Mendocino ReLeaf and plumbing services from John Danley Plumbing. In addition, the City currently has up to $175,000 in per capita park funds dedicated from the County on behalf of Supervisor Wattenburger. The funds from Supervisor Wattenburger were dedicated to the City in an undetermined split for Anton Stadium, Swimming Pool, and Skate Park projects. Because the per capita funds are from the State, they can not be used towards the match, but can be used to cover costs beyond that of the project estimates. While the Ukiah Skate Park Committee will continue to seek the additional funds needed to complete the project, more than enough funds have been raised to begin the design phase of the project. Attached for review is a draft Request for Proposals (RFP) for Professional Design Services for the development of the Ukiah Skate Park. In order to accommodate contractors with both design and design/build experience and potentially offer the City a larger selection of qualified firms, a modified design/bid/build process has been developed. An all inclusive design/build process is not recommended given the lack of a detailed conceptual plan and possible environmental limitations with the project site. The RFP outlines a scope of work separated into the following three phases: · Phase I: Pre-Design Conceptual · Phase I1: Design · Phase II1: Bidding and Construction Management Services After the completion of Phase I and II, the contractor (if qualified) will be eligible to compete in the competitive bid process for the construction phase of the project. If also awarded the construction bid, the contractor would be dismissed from the construction management (Phase III) portion of this RFP and the City would seek independent management services from another firm. This modification will allow the City to consider firms with both design experience as well as firms with design/build experience. Furthermore, design/build firms will not be limited to bidding on either the design phase or construction phase. If approved, Staff will finalize the draft RFP and release it immediately. The goal is to have a firm contracted by March 1, 2007. In addition, Staff is working to identify hydrology issues and potential environmental hazards so that the information can be incorporated from the start of the design process. Depending on the complexity of the issues, an environmental consultant may be needed throughout the project and Staff is actively exploring options to be presented for future consideration. CITY OF UKIAH REQUEST FOR PROPOSALS FOR Professional Design Services for the Development of the Ukiah Skate Park City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Phone (707) 463-6221 FAX (707) 463-6204 Proposals are due by 5:00 p.m. Wednesday, February 1, 2007 Sage Sangiacomo, Community Services Director sages@cityofukiah.com I1. CITY OF UKIAH REQUEST FOR PROPOSAL FOR PROFESSIONAL DESIGN SERVICES FOR THE DEVELOPMENT OF THE UKIAH SKATE PARK INTRODUCTION General Information The City of Ukiah requests proposals for professional services from qualified firms or individuals to develop specific site plans, cost estimates, project phasing options, construction documents and construction management for a skate board park and associated park amenities/elements immediately surrounding the aroa at the Ukiah Rail Depot. To be considered, six copies of the proposal must be received by Mary Horger, Purchasing Supervisor, City of Ukiah, 300 Seminary Avenue, Ukiah, CA 95482, on or before February 1, 2007 (5:00 p.m.). During the evaluation process, the City of Ukiah reserves the right, where it may serve the City of Ukiah's best interest, to request additional information or clarifications from those firms submitting proposals, or to allow corrections of errors or omissions. The City of Ukiah reserves the right to negotiate an agreement based on fair and reasonable compensation for the scope of work and services provided, as well as the right to reject any and all responses deemed unqualified, unsatisfactory or inappropriate. At the discretion of the City of Ukiah, firms submitting proposals may be requested to make oral presentations as part of the evaluation process. The selected contractor will provide pro-design, design, bidding services and construction management services for the entire project as outlined in Section IV. After the completion of Phase I and II, the contractor will be eligible to compete in the competitive bid process for the construction of the project. If also awarded the construction bid, the contractor will be dismissed from the construction management (Phase III) portion of this RFP. All contract plans, specifications and documents delivered under this RFP will be prepared in accordance with all City and State applicable requirements. The preliminary cost, including architect/engineering services and construction costs, landscaping and amenities is $714,857. It is anticipated the selection of a contractor will be completed by February 24, 2007. Following the notification of the selected firm a recommendation will be made to the City Council at the March 1, 2007 meeting to authorize the City Manager to execute a contract. PROJECT The goal of the Ukiah Skate Park Project is to provide a "unique" recreational facility for the skateboarding community and spectators. This project consists of the following components: Issued December 2006 Page 2 RFP: Ukiah Skate Park Skate Park: An approximately 20,000 square foot, (final size to be determined during the design process) in-ground concrete skate park will be constructed south of Perkins Street and west of Leslie Street on an approximately 2 acre site at the Ukiah Rail Depot. The skate park will be a bowl type design and include many of the popular skateboarding elements such as ramps, half pipe, spines and rails. Local skaters will work with the park design team on the final layout plan. In addition, the contractor will be required to work with the City's environmental consultant to develop a design that minimizes the disturbance of possible environmental hazards at the site. As part of the City park system, the skate park will close at dark and lighting will be installed for security purposes. A fence will be installed around the entire perimeter of the skate park. Although the specific design of the fence will be determined as part of the design phase, the purpose of the fence is to secure the facility after hours. C. A pedestrian foot bridge from Depot Park on Perkins Street shall be considered as an alternate access/exit point for skaters and spectators. All lighting, landscaping, spectator areas, restrooms, parking areas, and appropriate signage are considered part of the project. Other appropriate elements/amenities may be considered and added during the design phase. The City of Ukiah was awarded a $500,000 grant from the State of California's Roberti- Zberg-Harris Non-Urbanized Area Need-Basis Program. The City also anticipates on raising an additional $214,857. The total project budget is $714,857. A project site map is included as Attachment #1 for review. The physical location of the site is 319 East Perkins Street. IlL PROPOSED SCOPE OF WORK AND TECHNICAL REQUIREMENTS Responding contractors should develop a detailed scope of work suitable for inclusion in a final contract. At a minimum, the following items should be addressed in the scope of work. The following list should not be considered as either all-inclusive or sequentially ordered. Firms should draw from their experience and expertise to expand on items to be considered or provide alternatives that will build the best value skate park. Contractors may find it appropriate to modify, add, or deleted services identified in the proposed scope. These changes should be identified and explained in Section G of the contractor's proposal. As appropriate, proposed work items should be arranged in a logical sequence. Throughout all phases of the project, the contractor will be required to coordinate with the City's environmental consultant and incorporated into the design and bid specifications mitigation and safety measures regarding potential environmental hazards at the project site. PHASE 1- DESIGN DEVELOPMENT PRELIMINARY DESIGN Complete the following: Issued December 2006 Page 3 RFP: Ukiah Skate Park Conduct a site meeting with City Staff, skaters, and other members of the public interested in the project to establish requirements for the design of the skate park facility and the features that might be adjacent to it, such as walks, a spectator's area, grading, drainage, landscape improvements, etc. Research, collect, and assemble engineering and other data necessary to complete the project. 1. Location, topography, and geo-tech survey data 2. Utility/Roadway location and easements 3. Environmental/historical data After the requirements have been defined and a budget set, conduct a public workshop with local skaters and have them work with modeling clay and other mediums to form and shape their ideas of features they would like to see included in the skate park facility. D. With the clay examples and ideas, along with the contractor's design expertise, build a three dimensional computer scale model of the proposed skate park facility. E. Conduct a second public workshop to present the three-dimensional computer scale model of the skate park. F. Based on the final design, prepare an estimate of probable construction costs and identify any engineering and construction problems. G. Based on the final design, prepare an estimate of the material types and quantities that will be needed to construct the project. Deliverable: Prepare for and participate in one (1) project kick-off meeting and site visit. Prepare for and conduct two (2) public workshops meetings. Prepare one (1) three-dimensional computer scale model of the skate park. Prepare one (1) preliminary opinion of construction costs in spreadsheet format and identify any engineering and construction problems, Prepare one (1) material types and quantities estimate. Prepare for and participate in one (1) project presentation to the Ukiah City Council. Provide at least four (4) trips to the community to complete the items above. PHASE 2 - CONSTRUCTION DOCUMENTS A. Upon approval of the Preliminary Design, proceed with Construction Drawings and Specifications including the following: 1. Construction Layout Plan and Construction Details showing the locations and dimensions of all construction elements and details for their construction including, steel reinforcing in the concrete. 2. A Grading and Drainage Plan showing the elevations throughout the site for drainage of water from the facility and the site. 3. Specifications must give written instruction and procedures for the installation of the various elements shown on the drawings. Issued December 2006 Page 4 RFP: Ukiah Skate Park Contractor will estimate the park construction costs based on the final construction documents. The statement of probable construction costs must breakout major park elements in spreadsheet format with element descriptions and costs. Deliverable: Hardcopy plans submitted at 75%, 95%, and 100%. Written Technical Specification submitted at 75%, 95%, and 100%. Prepare for and conduct project review meetings at 75%, 95%, and 100%. One (1) final opinion of construction costs in spreadsheet format. Prepare for and participate in one (1) project presentation to the Ukiah City Council. Provide up to three (3) trips to the community to complete the items above. PHASE 3 - CONSTRUCTION OBSERVATION TASK 1: BIDDING ASSISTANCE A. Provide a list of Contractors with experience in skate park construction that may be interested in bidding the project. B. Assist the City with the preparation of the bid package. C. Conduct a mandatory pre-bid conference. Following receipt of notice to proceed to bid, Contractor, will assist the Owner during the bidding phase of the project. Prepare addenda and respond to Requests for Clarifications as determined by the Owner to be reasonable or necessary for the bidding process. All bidder questions will be received by the Owner and forwarded in writing to Contractor for response back to the Owner in writing. Under this scope, we will assist the Owner in their review and evaluation of bids. E. Assist the City with the review of bids and provide a recommendation for award of construction services. Deliverable: Provide a list of construction contractors. Prepare for and conduct a mandatory pro-bid conference with interested contractors. Addenda and plan clarification response documents. Provide a recommendation for award of construction services. Provide one (1) trip to the community to complete the items above. TASK 2: CONSTRUCTION ADMINISTRATION Following award of the general construction contract, Contractor, will support the Owner during the construction phase of the project. Review and respond to Requests for Information (RFI), Change Orders (CO), submittals, payment claims, and contractor supplied shop drawings. Under this task, prepare and issue Supplemental Instruction as necessary to clarify technical details and prepare preliminary and final punch lists. Coordinate with consultants, agency, and City Staff as necessary. Issued December 2006 Page 5 RFP: Ukiah Skate Park Deliverable: RFI, CO, submittal reviews, shop drawing responses, supplemental instruction, and general record keeping documents. TASK 3: CONSTRUCTION OBSERVATION A. Once construction begins on the project, services will include a minimum of five field trips to the site for observation of the installation work. 1. Prior to the beginning of construction, participate in a preconstruction onsite conference with the Contractor and Project Staff. 2. The second site visit will be at the completion of the grading work. 3. The third site visit will be after the steel reinforcing work has been completed. 4. The fourth site visit will be when the concrete is being poured. 5. The fifth site visit will be when the project has been completed. Deliverable: Prepare for and attend construction meetings as necessary. Prepare field observation reports, final punch list. Provide recommended maintenance and cleaning manual. IV. PROPOSAL REQUIREMENTS The proposal submitted should follow the outline below and provide the following information: A. Title Page. Must include firm name, address, telephone number, fax number, e-mail address, and website. Letter of Interest. The cover letter should briefly state the firms understanding of the work to be performed and the commitment to perform the work. The cover letter should also make a statement that the firm's offer is a firm, irrevocable offer for 90 days. An affirmative statement should be included that the firm and all assigned key professional staff are properly licensed to practice in California. Signed and dated by an authorized representative of the firm submitting the proposal. C. Table of Contents - The table of contents should clearly identify the material by section and page number. D. Describe the firm's background and experience, including size, history, personnel, and special expertise. E. Provide qualifications of the project team and technical personnel that will be assigned to work on this project including but not limited to the following: Issued December 2006 Page 6 RFP: Ukiah Skate Park VI. 1. Provide an organizational chart, depicting the personnel to be used on the project, their area of expertise, registration, special training, chain of command, office locations(s). Identify how much of each person's times will be spent on the project. 2. Provide a resume or statement of expertise for each person assigned to this project SPECIAL NOTE: AT LEAST TWO MEMBERS OF THE DESIGN TEAM SHALL HAVE A MINIMUM OF THREE (3) YEARS EXPERIENCE IN SKATE PARK FACILITY DESIGN AND CONSTRUCTION. THE CONSULTANTS AND SKATE PARK TEAM MEMBER(S) MUST DOCUMENT A RECORD OF COLLABORATION ON DESIGNING SUCCESSFUL SKATE PARK FACILITIES SIMILAR TO THE FACILITY ENVISIONED BY THE CITY. 3. Provide a description of in-house facilities and resources (i.e. hardware, design software, etc.) Provide a brief but specific outline of the firm's previous skate park projects, including those parks with the greatest longevity as well as parks built in the last three years. Describe the scope of work and how the firm proposes to perform the project including all site visits and deliverables. This description should demonstrate the firm's unique capabilities, innovative approaches, and/or special methodologies to accomplish the project. Provide a projected time frame for the project which demonstrates the firm's competence to do the work with available manpower and resources taking into account present and projected work load. NOTE: THIS DESCRIPTION SHOULD PROVIDE A SYSTEMATIC AND METHODICAL DESCRIPTION OF THE SCOPE OF WORK AND HOW THE WORK WILL BE ACCOMPLISHED, SUITABLE FOR INCLUSION IN THE FINAL CONTRACT DOCUMENT. H. Provide a bid for each phase of work identified in the scope of work. The City reserves the right to retain or opt out of services for any or all of the phases I. List references of all the firm's clients for the past five (5) years for skate park projects that deal with similar work as that proposed. (Put in Appendix) INSURANCE REQUIREMENTS The insurance requirements are set forth in "Exhibit B". INQUIRES Inquiries concerning the request for proposals and the subject of the request for proposals must be made to: Maya Simerson, Community Services Supervisor 300 Seminary Avenue Ukiah, CA 95482 (707) 463-6237 Issued December 2006 Page 7 RFP: Ukiah Skate Park VII. SUBMISSION OF PROPOSALS A. All copies of the proposal and any related documents shall be submitted in a sealed envelope clearly stamped Golf Professional Services Proposal in a location on the face of the envelope so as to be easily identified. Ten (10), (full color if applicable), copies of the proposal must be submitted to the office of the City Clerk at 300 Seminary Ave, Ukiah, CA by 5:00 p.m. on Wednesday, February 1,2007. SUBMIT PROPOSALS TO: City of Ukiah Attn: Mary Horger, Purchasing Supervisor 300 Seminary Avenue Ukiah, California 95482 B. Proposals received after 5:00 p.m. on February 1, 2007 will not be considered, and will be returned unopened. Proposals that are not submitted in accordance with the specifications of this RFP shall be considered non-responsive. C. Oral, Facsimile, or electronic proposals will be considered invalid and will not be accepted. D. Applicants are strongly encouraged to visit the facility prior to submitting a proposal - failure to do so will in no way relieve the applicant from its obligation to comply in every detail with all provisions and requirements of the contract, nor will a plea of ignorance of such conditions and requirements be accepted as basis for any claim whatsoever by the contractor for additional compensation. VIII. CONSIDERATION OF PROPOSALS 1. It is the intent of the City to award a contract to the applicant whose proposal is in the best interest of the City, and based upon but not limited to the applicants demonstrated experience/ability and cost. 2. The City shall rank acceptable proposals received and may conduct oral interviews with the top ranking applicants. Applicants selected for an oral presentation shall be prepared to present evidence of professional ability to perform. Such presentations will provide contractors with an opportunity to answer any questions regarding the proposal. Not all contractors may be asked to make such oral presentations. 3. As part of the evaluation process, the City may contact the applicant's past project references. Issued December 2006 Page 8 RFP: Ukiah Skate Park AGENDA SUMMARY ITEM NO: 10b DATE: December 20, 2006 REPORT SUB3ECT: DISCUSSION AND APPOINTMENT OF PLANNING COMMISSION MEMBERS SUMMARY: The City Council has three newly elected members. According to Ordinance 1085 adopted on August 2, 2006 (Attachment No. 1), each newly elected member may nominate one Planning Commissioner who shall be appointed if approved by a majority vote of the City Council. This Agenda item is intended to provide the opportunity for the newly elected City Council members to nominate a Planning Commissioner and for the Council to vote on each nomination. The current Planning Commission was established under the procedures in effect prior to the adoption of Ordinance 1085. Those procedures allowed each Councilmember to individually appoint a Planning Commissioner. The following is a list of each current Planning Commissioner and the Councilmember who appointed them: Jim Mulheren, Chairman - Appointed by Councilmember Crane Kevin Jennings, Vice Chairman - Appointed by Councilmember McCowen .]udy Pruden - Appointed by Councilmember Rodin Ken Anderson - Appointed by Councilmember Baldwin Mike Whetzel - Appointed by Mayor Ashiku Councilmembers Baldwin, McCowen, and Thomas may each nominate a person to sit on the Planning Commission, and the Council as a whole must vote on each nomination. Planning Commissioners Mulheren and Pruden were appointed by Councilmembers Crane and Rodin. If there is a desire for change in these two appointments, the Councilmembers would need to make this request known at the meeting. RECOMMENDED ACTION: Councilmembers Baldwin, McCowen, and Thomas individually nominate a Planning Commissioner and Council vote on each nomination. ALTERNATIVE COUNCIL POLICY OPTION: N/A Citizen Advised: N/A Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager and David Rapport, City Attorney Attachments: 1. Ordinance 1085 APPROVED'~ A'I-TACHMENT~ / ORDINANCE NO. 1085 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 1151 OF THE UKIAH CITY CODE, PERTAINING TO THE MEMBERSHIP OF AND APPOINTMENT OF MEMBERS TO THE UKIAH PLANNING COMMISSION The City Council of the City of Ukiah hereby ordains as follows: FINDINGS: 1. The City Council finds that a diversity of views should be represented on the City's Planning Commission. 2. This diversity of views is best achieved, if each City Council member has the opportunity to select a planning commissioner. 3. It is the intent of the City Council that each City Council member should have the opportunity to select a planning commissioner, subject to ratification by a majority vote of the City Council. 4. It is the expectation of the City Council that the commissioner nominated by a City Council member will be approved by a majority vote of the City Council, except in unusual circumstance, where a majority of the City Council does not believe that the candidate is suited to perform the functions of a planning commissioner, which include an ability to understand and apply the laws and standards that apply to commission decisions, listen carefully to evidence and argument presented during commission meetings, follow the roles adopted by the Commission, and make reasoned decisions and clearly articulate positions. SECTION ONE. Section 1151 of the Ukiah City Code is hereby amended to read as follows: §1151: MEMBERS; APPOINTMENT: Said commission shall consist of five (5) members who shall be registered voters of the city. Each member of the City Council, including each newly elected or appointed City Council member, may nominate one commissioner who shall be appointed to the commission, if approved by a majority vote of the City Council. Each commissioner's term of office shall coincide with the term of office of the City Council member who nominated him or her. A new City Council member selected to fill a vacancy on the Council and serve out an unexpired term of office may nominate a replacement of the commissioner nominated by that Council I member's predecessor in office, who shall be appointed for the remainder of that Council member's term of office, if approved by a majority vote of the City Council. ff a commissioner vacates his or her office before the expiration of his or her term of office, the City Council member who nominated that commissioner may nominate a replacement to serve the remainder of that commissioner's term of office, who shall be appointed, if the nomination is approved by a majority vote of the City Council. If a City Council member's nomination receives less than a majority vote, he or she may nominate additional candidates, one at a time, until one of them is appointed by a majority vote of the City Council. Commissioners shall be nominated and voted upon at a single City Council meeting, unless a different procedure is approved by a majority vote of the City Council. If a City Council member fails to nominate a commissioner within sixty (60) days after the vacancy occurs, a majority of the City Council shall fill the vacancy following the procedure used to appoint members to other city commissions and boards. SECTION TWO 1. SEVERABILITY. If any provision of this ordinance or the application thereof to any person or cimumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or othe~vise invalid. 2. EI~I"I::CT1VE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. It shall apply to injuries or damage occun'ing after it becomes effective. Introduced by title only on June 21, 2006, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Crane, McCowen and Mayor Ashiku Councilmember Baldwin Councilmember Rodin None Adopted on August 2, 2006 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Crane, McCowen and Mayor Ashiku Councilmembers Baldwin and Rodin None .J Mark A~hiku, Mayor Gail Petersen, City Clerk AGENDA ITEM NO: MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: CITY OF UKIAH PUBLIC BENEFITS EFFICIENCY SERVICES GROUP RECOMMENDATIONS PROGRAM PRESENTATION BY AND POSSIBLE ACTION ON SUMMARY: On July 19, 2006 the City Council approved award of Request for Proposal for the City of Ukiah Public Benefits Program (PBP) Assessment, Revision, Development, Turn-key Administration and Reporting to Efficiency Services Group, LLC (ESG). Staff has been working with ESG staff and attached for the City Council's review and consideration is a culmination of this work. ESG will be presenting their proposal to the City Council. Staff recommends adopting the new programs, associated PBP budget, administrative process and reporting as advised by ESG. RECOMMENDED ACTION: Approve Efficiency Services Group recommendations for the City of Ukiah Public Benefits Program Assessment, Revision, Development, Turn-key Administration and Reporting and associated Public Benefits Funds Program Budget as listed on page 8 of Attachment 1. ALTERNATIVE COUNCIL OPTIONS: Re-direct staff. FUNDING: Amount Bud.qeted $680,226 Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Approved: Account Number Additional Funds Requested 806.3765 (See Attachment 4 ) NA Elizabeth Kirkley, Electrical Distribution Engineer Elizabeth Kirkley, Electrical Distribution Engineer Candace Horsley, City Manager 1. ESG Ukiah Council Report 2. City of Ukiah CARES Program 3. Renewable & Energy Efficiency Measures & Incentives 4. Council Adopted PB Budget (FY2006-07) 5. ESG PB Budget Allocation (from above PB Budget) 6. Renewable & Energy Efficiency Summary Report 7. New Rebate Process Flow & Sample Rebate Application Candace I-'l(~rsley, City~/lanager Attachment I EFFICIENCY Group December 20, 2006 City of Ukiah's Public Benefits Programs Presented to City of Ukiah, City Council On September 7, 2006, the City of Ukiah (Ukiah) entered into an Agreement with Efficiency Services Group (ESG) to develop, implement and operate their Public Benefits (PB) Programs. Since that time, ESG and Ukiah have been working together to design a PB program that will benefit the City's electrical system, provide a broad range of offers to Ukiah's customers, and meet the requirements of Public Benefits guidelines. The program is ready for City Council (Council) review and approval. This report and supporting documents contain a brief overview of the current PB programs, a description of the proposed program, and its goals and objectives. It also contains: · A list of recommended measures and customer incentive levels; compares current and proposed customer rebate levels · Council adopted PB Programs budget (FY 2006-07) * A Monthly Summary Report showing the content and format of monthly reports to Ukiah · Services available to Ukiah customers An overview of how services will be marketed to customers · A general description of how the rebate programs will operate Brief Overview of Current PB ProRrams Ukiah currently funds the following programs/offers through their PB Programs: City Assisted Relief for Energy Support (CARES) - These provide payments to qualifying senior and lower-income customers to assist them in making their electric utility payments. There are three programs offered through CARES: -]- Temporary Emergency Assistance Senior Citizen Monthly Discount Non-Senior Household Monthly Discount See Attachment 2 for CARES Program details, including Income Guidelines. Photovoltaic (PV) & Energy Efficiency Measures & Incentives - Rebates are offered to customers to help them install PV systems and energy efficient equipment to lower their energy use. See Attachment 3 - Renewable and Energy Efficiency Measures & Incentives. · Other Expenses - Ukiah's PB Program has been used to fund other projects and purchases, such as alternative fuel vehicles. New PB Program Objectives Ukiah's proposed PB Program is designed to meet the following objectives: Peak Reduction - Measures have been selected that will contribute to the reduction of peak load on Ukiah's electrical system. Current peak loads place upward pressure on rates and on Ukiah's electrical system. Customer Reach - Measures have been selected that will provide offers to most, if not all of Ukiah's customer segments; ie, commercial, residential, lower-income, seniors. Since all customers contribute to the PB budget, it is important that the selection of measures and services allow an opportunity for all customers to participate. Ukiah will continue to offer assistance to their senior and lower-income customers through the CARES Program. Meet California State PB Objectives - All measures, incentives and services offered under Ukiah's new PB programs will result in reportable program activity that is consistent with California state PB objectives and guidelines. There is a new and higher level of scrutiny by the State and others as to how PB funds are utilized. Items for Discussion A) Renewable and Energy Efficiency Measures & Incentives The following measures will continue to be featured in Ukiah's PB program offers: -2- · Solar Photovoltaic · Commemial Lighting - Primarily T12 to T8 conversions · Residential Lighting - Primarily Compact Fluorescent Lights (CFL's) Residential HVAC - Energy Efficient Heat Pumps and Air Conditioners · Energy Efficient Appliances- Refrigerators, Dishwashers, Clothes Washers, Room Air Conditioners · Residential Weatherization - Attic Insulation, Wall Insulation, Window Shades and Films, Duct Insulation and Sealing · Custom Projects The recommended measures have been approved by the organization hired by the State to review and approve energy efficiency measures for PB programs. These measures have been determined to help reduce peak and energy use on California state electrical grid. The rebate levels shown in Attachment 3 are based on the energy savings that will be realized by the installation of the various measures. Measures targeted as best contributing to peak reduction are solar PV, commercial lighting, residential lighting and HVAC. Low-income Energy Efficiency Rebates - Customers meeting certain income guidelines will qualify for higher rebates for some of the energy efficient measures being offered. See Attachment 3 for more detail. Recommendation: that Council adopt the proposed Renewable and Energy Efficiency Measures & Incentives. B) BudRet The PB budget already approved by Council for FY 2006-07 is $680,227 (see Attachment 4). This budget total was determined by the following: $410,760 $ 49,714 $219,752 Public Benefit contributions (2.85% of electric revenues). Interest earned from balance in PB fund Drawn from the PB fund balance forward to cover the budget deficit. The proposed PB Program for FY 2006-07 has been allocated according to the budget amounts already approved by Council (see Attachment 5) It is possible that a portion of the FY 2006-07 PB dollars will roll into the next fiscal year. This is due to fact that the programs will not be operating for the entire fiscal year. In addition, it is possible that customer participation in the program offers will start out slowly, and gain momentum as customer and -3- contractor/vendor awareness of Ukiah's PB offers increase. Some projects in the commercial sector may take several months to complete. Therefore, allocated funds may roll over for projects that are initiated in FY 2006-07, but not completed until FY 2007-08. Recommendation: that Council adopt the proposed City of Ukiah Public Benefits budget. C) Public Benefit Fund Balance Forward Based on the 2006-07 budget, there is currently a positive balance of $1,393,331 being carried forward into FY 2007-08. There are some important issues to note regarding this balance. Lar,qe Balances Being Carried Forward Not Viewed As Positive - The State expects PB funds to be utilized by utilities to provide approved (as defined by PB legislation) products and services to their customers. If large balances are carried forward, it appears that the utility is not meeting their PB obligations. This is the situation Ukiah currently finds itself in. Ukiah HAS Met Their PB Obligations to Date - Even though Ukiah is carrying a large balance forward in their PB fund, they have met their obligations under PB legislation. Since 1998, Ukiah has contributed approximately $1.8 million to the Geysers EFFLUENT project. This is a qualified and approved PB expenditure. However, these payments were made out of the Electric Enterprise fund; not from the PB fund. If the Geysers EFFLUENT payments had been made from the PB fund, there would be no balance forward, and Ukiah's FY07 PB budget would be $410,760. Ukiah should seek to gain official recognition from the state that they have met their PB obligations. While this step is not officially required by legislation, it will allow those reviewing Ukiah's PB expenditures to understand that Ukiah is meeting their obligations under PB legislation. Scott Tomashefsky of NCPA (Northern California Power Agency) has indicated that this can most likely be accomplished with a letter from Ukiah to the State. Mr. Tomashefsky has also indicated that he would be willing to work with Ukiah to get this accomplished. Recommendation: that Council approve Ukiah and ESG to pursue gaining state recognition of Ukiah's Geysers EFFLUENT payments as approved PB expenditures. -4- Direction from City Council Requested: A decision needs to be made regarding what to do with the large balance being carried forward in the PB budget. This decision can be deferred if Council would like additional time to evaluate. However, the decision will need to be made before future PB budgets can be assembled and approved. The options are: Transfer all or part of the balance to the Electric Enterprise Fund This option reimburses the Electric Enterprise Fund for the expenditures on the Geysers EFFLUENT project. It makes these funds available for other uses in the Electric Enterprise Fund, and reduces or eliminates the balance forward in the PB budget. Leave the balance in the PB budget - This option allows Ukiah to continue to offer their customers approved energy efficiency projects, renewable projects, and other approved PB activities and services over and above Ukiah's base PB budget. If this option is selected, the goal should be to aggressively promote additional approved PB projects, and eventually draw down the surplus funds. The direction Council takes on this issue will greatly affect the level of funding available for future PB offers and services to their electric customers. Recommendation: that Council provide direction to ESG and City staff as to how they should deal with the large balance being carried forward in the PB budget; Option 1 or 2. This decision can be deferred for a time. Future PB Bud!:let Issues No action is needed by Council at this time on the following issues. However, Council should be aware of these issues, as they will most likely need to be addressed for future PB budgets, beginning with FY 2007 - 08: Large Solar Project - A large rebate in the amount of $154,608 has been set aside for solar rebates for the Menton Builder's PV and solar hot water budget. This represents approximately 23% of the FY07 budget. Permits have not yet been requested for this project, and there is question as to when construction on this project will begin. -5- At this time, Ukiah's obligation to reserve these funds is open-ended, tying up a good sized portion of the budget. Recommendation: that Council consider taking action that would set a deadline for the availability of these rebate funds for Menton Builders. If the deadline passes, these funds could be made available to fund approved products and services to other City Of Ukiah customers. Income Qualification Guidelines - Review Ukiah's current income qualifying guidelines. Ukiah's current income qualifying guidelines are relatively generous (currently 160% of Annual Federal Poverty Income Guidelines) compared to many other utilities (see Attachment 2). For example, a family of four with a household income of $64,950 can qualify for Iow-income assistance. (See page 2 of Attachment 2) Adjusting these income guidelines can help assure that available Iow- income assistance funding is made available to those customers who need it most. Low-Income Funding Levels - Review the percentage of the PB budget allocated to Iow-income bill assistance. The large balance being carried forward in the PB fund has allowed Ukiah the flexibility to fund projects and services over and above the PB revenues from customer contributions (2.85% of electric revenues). As these funds are drawn down, or transferred into the Electric Enterprise Fund, histodc funding levels for these services may not be sustainable. Options to sustain historic levels of funding for Iow-income services include: · Pay for a portion of these services out of the Electric Enterprise Fund · Increase the dollars being collected to fund PB services (increase from 2.85% of electdc revenues) -6- New Services to be Provided Under A.qreement w/ESG A) Rel~ortin¢l ESG will provide monthly reports to Ukiah. Activity reports will track program activity on a current month, fiscal year-to-date, and program-to-date basis. Monthly reports also identify specific customers who are eligible for rebates. Ukiah will use these reports to issue rebate checks to customers. A monthly report Program Summary page is attached for your review (see Attachment 6 - Renewable and Energy Efficiency Program Summary Report). B) Services Available to Ukiah Customers Energy Efficiency Programs Hot Line - A toil-free hotline will be available for Ukiah customers, contractors and vendors to get information regarding Ukiah's PB programs, request rebate application rebates, and receive answers to general energy efficiency questions. This hotline will be answered Monday - Friday, 8:00 am - 5:00 pm. ESG staff will be in Ukiah one day per month to provide residential and commercial auditing and inspecting services. These field services should be directed towards customers who are seriously considering installing energy efficiency measures. ESG will also inspect lighting, insulation and HVAC work to assure measures are being installed to program specifications. C) Rebate Application Processin.q ESG will receive, review and approve rebate applications from Ukiah customers. A process flow chart is attached to describe how rebate applications are processed through the system, and how data is captured and reported (see Attachment 7 - Rebate Application Process Flow Chart and sample rebate application). D) Marketing It is important that customers, contractors and vendors are aware of the availability of Ukiah's PB programs. We are anticipating some advertising in the local newspaper, as well as some targeted direct mailing to promote specific offers. In addition, Ukiah will engage local contractors and vendors to promote Ukiah's programs. -7- Recommendation: that Council approve the PB Program services described above (A - D). Summary of Recommendations: Ukiah and ESG seek Council's approval of the following recommendations at the December 20, 2006 council meeting. Recommendation 1: that Council adopt the proposed measures and rebates as described in the attached Measures and Incentives list. Recommendation 2: that Council adopt the proposed PB Program budget (attached) Recommendation 3: that Council approve the PB Program services A - D as described in the 'New Services to be Provided Under Agreement w/ESG" section of this report. Council approval of Recommendations 1 - 3 are required for Ukiah and ESG to implement Ukiah's proposed new PB Programs. Council decision on the following recommendations can be made at the December 20, 2006 Council meeting, or deferred if Council desires additional time for consideration. Recommendation 4: that Council approve Ukiah and ESG to pursue gaining state recognition of Ukiah's Geysers EFFLUENT payments as approved PB expenditures. Recommendation 5: that Council notify Ukiah and ESG as to how they should deal with the large balance being carried forward in the PB fund; Option I or 2. This decision can be deferred for a time. Next Steps Once Ukiah and ESG have received Council approval on Recommendations 1 - 3, we will work to finalize the rebate application forms, customer information sheets, etc, necessary to begin offering services to Ukiah customers. We will also identify key vendors and contractors and make them aware of Ukiah's PB offers, encouraging them to promote these offers to their customers. If Council grants approval during their December 20, 2006 Council meeting, ESG anticipates being ready to launch Ukiah's PB offers on February 1,2007. -8- Attachment The City of Ukiah has with fmancial assistance Customers can call to get programs that help bills to eligible households. office at 468-9577 the phone. Temporary Emergency Assistance ,/A benefit of up to $350 is available each twelve-month period to an eligible household toward the electric charges on their City utility bill. ,/Eligibility is based on 160% of total household net (after tax) income of the current Federal Poverty Guidelines. ,/The City of Ukiah Customer Service Deparmaent provides customers with the proper printouts of their account. ,/Non-electric charges must be paid prior to receiving any benefit. Senior Citizen Monthly Discount ,/A credit of up to $30.00 is applied toward electric charges each month to eligible Senior households. ,/The City of Ukiah utility bill must be in the Senior's name. ~/The Senior must be 62 years of age or older to qualify. ,/Eligibility is based on 160% of total household annual net (after tax) income of the current Federal Poverty Guidelines. ,/The benefit shows as a credit on each monthly bill for a total savings of $360.00 each year. Non-Senior Household Monthly Discount ~ A credit of up to $25.00 is applied toward electric charges each month to eligible households. ,/Fligibility is based on 160% of total household annual net (after tax) income of the current Federal Poverty Guidelines. ~' The benefit shows as a credit on each monthly bill for a total savings of $300.00 each year. UKIAH C.A.R.E.S. PROGRAM (Temporary Emergency Assistance, Senior Discounts, Non-Senior Discounts) INCOME GUIDELINES JULY 1, 2004 THROUGH JUNE 30, 2005 Income considered for eligibility is MONTHLY OR ANNUAL NET INCOME (gross income minus mandatory taxes and rental expense) GROSS INCOME ~ 160% of FPIG NUMBER OF PEOPLE LIVING IN HOUSEHOLD 100 % of Annual Federal Poverty Income Guidelines Ukiah C.A.R.E.S* 160% of Annual Federal Poverty Income Guidelines C.A.R.E.S. C.A.R.E.S. MONTHLY NET ANNUAL NET CASH INCOME TOTAL INCOME OF HOUSEHOLD OF HOUSEHOLD 1 Person $13,965 $1,862 $22,344 **Example of Ne~t Income plus 25% taxes & $700 rent Monthly / Annual $3,028 / $36,330 2 Persons $18,735 $2,498 $29,976 $3,823 / $45,870 3 Persons $23,505 $3,134 $37,608 $4,618 / $55,410 4 Persons $28,275 $3,770 $45,240 $5,413 / $64,950 5 Persons $33,045 $4,406 $52,872 $6,208 / $74,490 6Persons $37,815 $5,042 $60,504 $7,003 / $84,030 7 Persons $42,585 $5,678 $68,136 $7,798 / $93,570 8 Persons $47,355 $6,314 $75,768 $8,593 / $103,110 9 Persons $52,125 $6,950 $83,400 $9,388 / $112,650 10 Persons $56,895 $7,586 $91,032 $10,183 / $122,190 C.A.R.E.S. amounts represent 160% of Federal Poverty Income Guidelines. Examples are meant to represent a POSSIBLE NET INCOME to compare to the 160% FPIG amounts for determining eligibility to the program. Figures may change based on the household's level of withholding, number of exemptions claimed, single or married status and amount of rental expense. Over 10 people add $4,770 annually or $398 monthly for each additional person per household. Eligibility is determined by The Salvation Army * 714 S. State St., Ukiah, CA 95482 * (707) 468-9577 City Of Ukiah Attachment 3 Renewable and Energy Efficiency Measures & Incentives 12/20/2006 Current Low- Proposed Unit Of Current Income Unit Of Measures Rebate Me;mum Rebate Rebate Measure Solar Photovoltaic S~rstems Solar PV Systems - $6000 Res Cap~ $25r000 Comml Cap NO Chanl~e Per AC W $3 Per AC W Commercial Li~lhtlng T-I 2 to T-8:4 foot lamp $25 Per Lamp Per Lamp T-I 2 to T-~: 8 foot lamp $25 Per Lamp Per Lamp Rebait not to exceed Not well defined - Very seldom used by *Residential Lighting 75% of purchase price cuotomem CFL: Screw-In (<=15W) $2.50 Per CFL CFL: Screw~ln (16-24W) $2.50 Per CFL *Central NC 14 SEER (11.99 EER) $75 Per Ton $500 Max $500 Max Per House 15 SEER (12.72 EER) $100 Per Ton $~00 Max $500 Max Per House 16 SEER (11.61 EER) $t25 Per Ton $~00 Max $500 Max Per House 17 SEER (12.28 EER) $175 Per Ton $500 Max $S00 Max Per House 18 SEER (13.37 EER} $200 Per Ton $500 Max $500 Max Per House *Heat Pumps 14 SEER (12.19 EER) / 8.6 HSPF - Electdc Heat Pump S125 Per Ton $500 Max $500 Max Per House 15 SEER (12.70 EER) / 8.6 HSPF - Electric Heat Pump S150 Per Ton $500 Max $500 Max Per House 16 SEER (12.06 EER) / 8.4 HSPF - Electdc Heat Pump $170 Per Ton $500 Max S500 Max Per House 17 SEER (12.52 EER) / 8.6 HSPF - Electdc Heat Pump $200 Per Tort $500 Max S$00 Max Per House 18 SEER (12.8 EER} / 9.2 HSPF - Electdc Heat Pump $225 Per Ton $500 Max $500 Max Per House *Residential Appliances No max. limit per home Appliance rebait max. - $600 per home Clothes Washer: Electric Water Heatin,~ $100 Per Unit $150 $250 Per Unit Dishwasher: SinAle-famil¥ - Electric Water Heatin,~ $50 Per Unit $150 $250 Per Unit Refrif;erators $75 Per Unit $150 $250 Per Unit Room Air Conditioner (10.8 EER) $00 Per Unit $150 $250 Per Unit Freezers Per Unit $158 $250 Per Unit Stoves/Ovens Per Unit $150 $250 Per Unit Clothes Dr~ers Per Unit $t50 $250 Per Unit Evaporative Coolers Per Unit $t50 $250 Per Unit Ceilin~ Fans~ Attic Ventilators Per Unit $150 $250 Per Unit *Residential Weatherizaflon - Homes w/Electric Heat and/or Central A/C No max. limit par home Appitance rebait max. - $600 per home Ceilinc~ R-0 to R-38 Insulation $0.35 Per Sq/Ft $150 $250 Per Wz t~ Ceilin~ - Some existin~ in~,,t~tinq, increase to R38 $0.20 Per Sq/Ft $150 $250 Per Wz ty~e Wall Blow,-in R0 to R13 Insulation $0.30 Per Scl/Ft $150 $250 Per Wz t~pe Duct Insulation/Sealing - Add R-8 to uninsulated ductwork, and seal $1.00 Per Un/Ft $150 $250 Per Wz t~ Shade Screen $0.75 Per Sc~/Ft $150 $250 Per Wz type Window Film: Single Pane Clear Glass with Standard Film $0.75 Per Sq/Ft $150 S250 Per Wz type 3ouble Pane Windows $t50 - Max. $1000 per home Per Window 'Residential Electric Water Heatem ~in,~le-Family- Less than 60 ~allon - minimum .93 EF $100 Per Htr $150 $250 Per Htr ~ingle-Family- 60+ 9allon - minimum .93 EF $100 Per Htr $150 $250 Per Htr ~tulti-Famil}, - Less than 60 ,~allon - minimum .93 EF $75 Per Htr $150 $250 Per Htr Vlulti-Famil¥ - 60+ ~allon - minimum .93 EF $100 Per Htr $150 $250 Per Htr I'Recommended Lower-Income Rebates - Qualifythg customers can receive a higher rebate if certain income qualifications are met. The additional Iow-income rebate is laqual to an additional 50% of the standard rebait. Qualified customers can receive 152 per CFL up to 100% of the purchase price d~ochmenf # ~_.. City of Ukiah Public Benefits Budget Adopted by City Council - FY 2006-07 1212012006 Attachment 5 %of Budget Low-Income Services - CARES 110 Salaries Re~]ular $36,836 5.4% 141 - 156 EmpIo)/ee Benefits $16,117 2.4% 250 - .000 Salvation Arm)/contract $11,700 1.7% 250 - .001 Senior Assistance payments thmu~;h CARES $115,000 16~9% 250 - .002 Emer~lenc~ assistance payments throu~lh CARES $42,000 6.2% 250 - .003 Monthly Discount Pro,mm $40,000 5.9% 320 Billing & Collection Char~es $4,075 0.6% 250 ~ .004 Other Public Benefits Pro~irams $2,000 0.3% Additional EE Rebates Sub-Total $267,728 39.4~¢ 250 Energy Conservation Program Rebata~ 350,000 7.4% Commercial Lighting Residential Lighting EE Appliances EE Water Heaters Residential Shelt Residential HVAC Custom Projects 250 - .006 Photovoltaic Rates/incentives =$4,5,392 6.7% 250 - .006 Menton Builders PV Proiect [;154,608 22.7% 250 - .007 Outsource PB Program mgmnt $50,000 7.4% ~b-Totai ~ 44.1~ Other 291 General Governmental Service Cha~es $9,775 1.4% 292 Pumhasin~] Service Cha~e $224 0.0% 160 Conference & Training $500 0.1% ~ 11 Postage $1,000 0.1% 390 Supplies & Equipment $1,000 0.1% 300 Machinery & Equipment - 2 Alternative Fuel Vehicles $100,000 14.7% $ub-T~al $112,499 16.5~{ IFY 2007 Approved Budget IPublic Contlbuflons Interest Income Total Public Benefit Revenues Deficit - Amount Drawn from Fund Balance Total Budget $680,227 $410,760 $49,714 $460,474 $219,752 $680,226 IPublic Benefit Fund Balance Forward Amount Drawn for FY 2007 Budf)et Public Benefit Fund Ending Balance $1,613,083 -$219,752 $1,393,331 Attachment 6 City Of Ukiah Renewable and Ener~ly Efficiency Proflram Summary Report December~ 2006 Estimated kWh's Acquired: Decemberr 2006 YTD PTD Weatherization 0 0 0 Appliances 0 0 0 Lighting 0 0 0 Heat Pump & NC 0 0 0 Solar PV 0 0 0 Commercial 0 0 0 Total 0 0 0 Estimated kW Reduction: December, 2006 YTD PTD Weatherization 0 0 0 Appliances 0 0 0 Lighting 0 0 0 Heat Pump & NC 0 0 0 Solar PV 0 0 0 Commercial 0 0 0 Total 0 o o Total Rebates Paid: December~ 2006 YTD PTD Neatherization $0 $0 $0 ~ppliances $0 $0 $0 _i~htin~ $0 $0 $0 -leat Pump & NC $0 $0 $0 ~olar PV $0 $0 $0 .Commercial $0 $0 $0 rotal $o $o $o Total Low-Income Rebates Paid: December~ 2006 YTD PTO Neatherization $0 $0 ~opliances $0 $0 $0 .i~htin~ $0 $0 $0 ~eat Pump & NC $0 $0 $0 ;ommercial $0 $0 $0 rotal $0 $0 $0 *Total EE Program Administration Costs: ~Program Admin Fee lO,her Services Expenses Total Decembe~ 2006 $0 PTD $0 $0 $0 $0 $0 $0 $0 $0 $0 $o $o Program Summary IEEsStt',~m~tt~dd kSav,~'~u(ck~ohn'? I'Total Pro~ram Costs I Decemberr 2006 YTD PTD 0 $0 0 I 0 $0 0 $0 $o $o *Does not include CARES expenses, City employee salaries/benefits, or City loadings/overheads Attachment Energy Efficient Appliance Rebate Application Please complete front and back of this form, and read and sign the back. Information is required for rebates. Utility Account Number First Name: Last Name: (Please Print Clearly) Installation Address: Apt: City: State: Zip:, Home Phone: ( ), Mailing Address (if different): Apt: City: State:__ Zip: E-Mail (optional) Date of Installation: ( Rebate requests must be submitted within 6 months after purchase) APPLIANCE INFORMATION IMPORTANT: Musthaveanelectricwaterheatertoqualifyfordishwasherandclotheswasherrebates. Chosen model(s) must meet all other program criteria to qualify for this rebate. Please note that there is currently no rebate available for clothes dryers. Only Energy Star appliances will qualify. BRAND MODEL NUMBER QTY REBATE AMT REFRIGERATOR - Energy Star $75 DISHWASHER - Energy Star $50 Water heater type: E]Gas [-I Electric CLOTHES WASHER - Energy Star $100 Water heater type: r-IGas [] Electric ROOM AC - Energy Star $50 (OVER) © Efficiency Services Group, LLC. All Rights Reserved. Rev. 1.1 Upon signing this agreement, customer acknowledges the following: This rebate offer may be discontinued at any time by City of Ukiah (Ukiah). Ukiah disclaims any warranty, whether expressed or implied, regarding the product listed above for any materials or labor associated with its installation, maintenance, repair, or any energy savings associated with its use. I understand the above and certify that I am a customer of Ukiah and the above mentioned products will be installed at the location indicated above. SIGNATURE: Date: You must submit this rebate application within 6 months after purchasing your appliance. Mail this original form, a legible copy of purchase receipt and a copy of your yellow "Energy Guide" label to: City of Ukiah Attn: Energy Efficiency Rebates PO Box 421 Clackamas, OR 97015 Additional Information and Benefits · Only appliances with the Energy Star Label will qualify · Energy Star appliances may reduce your energy usage up to 30% · Some Energy Star appliances will reduce your water consumption which could yield a lower water heating cost and lower water bills · Go to www.enerqystar.gov to find lists of qualifying appliances Lower-Income customers meeting certain income criteria may qualify for a higher rebate than those listed on this form. Certification of income required to qualify for higher rebates. For additional questions and information call 1-888-883-9879 Please allow 8 - 10 weeks for processing. © Efficiency Services Group, LLC. All Rights Reserved. IFor Office Use Only Customer Verification: InRials: AGENDA ITEM NO: MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: LAKE MENDOCINO HYDROELECTRIC PLANT REFURBISHMENT PROJECT BUDGET AND SCHEDULE UPDATE; AUTHORIZE THE EXPENDITURE OF ADDITIONAL FUNDS NECESSARY TO COMPLETE THE PROJECT Background: On July 20, 2005, Council approved Staff's recommendation to proceed with a Hydro Restart Project with a preliminary estimate of $1,350,000 to perform required Tainter Gate modifications, limited power plant equipment repairs, control upgrades, permit and licensing, start-up costs and a contingency. This budget was prepared prior to the January 2006 flood that damaged the hydro plant and the budget was increased $600,000 in FY 05/06 to cover the projected costs associated with the flood clean-up. Source California Energy Services, Inc. was contracted in the spring of 2006 to perform the necessary power plant engineering upgrades as part of the original project scope and to also refurbish the power plant equipment as part of the original project scope and the added flood damage scope. Additionally, in September of 2006, DW Nicholson Corp. was contracted to perform the Tainter Gate modification as part of the original project scope. Continued on pa.qe 2 RECOMMENDED ACTION: Authorize the continued expenditure of budgeted and unbudgeted funds necessary to complete the Lake Mendocino Hydroelectric Plant equipment refurbishment and engineering upgrades. ALTERNATIVE COUNCIL OPTIONS: Do not authorize the expenditure of budgeted and unbudgeted funds necessary to complete the Lake Mendocino Hydroelectric Plant equipment refurbishment and engineering upgrades and abandon plans to restart the plant or give alternate direction to Staff. FUNDING: Amount Requested $7OO,OOO From Account Number Electric Fund 815 To Account Number 800.5536.250.007 Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council Murray Grande, Hydro Project Manager Candace Horsley, City Manager N/A Approved:~ ~j~ Candace Horsley, C'I~ Manager Chan.qe in Refurbishment Work Scope: The original work scope did not include complete refurbishment of all equipment in the hydroplant as it was assumed that the lifespan of certain equipment would not necessitate disassembly, cleaning, testing and reassembly of the equipment. However, in order to gain access to critical equipment requiring refurbishment due to the flood, it was necessary to disassemble equipment not originally included in the Restart Project. This actually turned out to be a positive necessity as it revealed that repairs were needed where not originally thought, as with the turbine generators. It was necessary to disassemble the turbines, in order to gain access to the generators, which were affected by the flood. Upon disassembly of the turbine, it was discovered that the turbines did indeed require repairs as the result of not being operated for the past eight years and deferred maintenance. In addition, after testing numerous electrical components, it was determined that a significant portion of these electrical components were not repairable due to being obsolete or damaged beyond repair, necessitating that new components be purchased. The discovery of extra work and the need to replace components significantly impacted the overall budget and schedule for the project. On September 20, 2006, Council was informed of the budget and schedule impacts and approved the additional expenditure of $571,199 estimated at that time to be necessary to complete the project. This amount was added to the approved FY 05/06 department budget of $2,070,955 and the approved FY 06/07 department budget of $404,100, bringing the total project budget to $3,046,254. $1.2 million of this amount was for the flood refurbishment project. Additional BudRet and Schedule Impacts: As the project has progressed since the last report to Council, significant problems have been encountered that have worked to once again impact the project budget and schedule. While every effort has been made during the course of the project to accurately define the scope of work and to budget and schedule accordingly, each step of the way toward project completion seems to generate additional work that was not anticipated or planned. In most cases, under normal circumstances, this work would not have been anticipated. The issues that have resulted in additional budget allocations and schedule delays can be summarized as follows: Original Installation Errors and/or Undocumented Field Changes: This particular issue has contributed significantly to cost increases and schedule delays. One significant example of this involves the demolition and installation of the old and new Supervisory, Control and Data Acquisition (SCADA) equipment respectively. It was discovered in late September that the existing plant wiring for these systems did not match the wiring diagrams that were provided as part of the original engineering drawings and records. At some point during construction, field wiring was performed that did not follow the drawings, however new drawings were not made by the contractor. This necessitated the time consuming task of "ringing" out each control circuit prior to removal to validate the connection points, resulting in significant increases in labor costs. A second significant example involves the original installation of both turbine generators and their respective turbine stop valves. It was discovered during disassembly, and then to even a greater extent during maintenance and reassembly that original installation errors of these components resulted in damage to the equipment that required extra work to make repairs that would allow the components to be operated as intended. Original start up reports and operator logs chronicle the problems that plagued the operation of the power plant from the beginning, affecting reliability and safety that can be attributed to these contractor installation errors. Other problems have been encountered that are similar in nature and that have added to costs and schedule delays. Unanticipated Auxiliary Systems Work: As work has progressed on the project, additional auxiliary systems have been identified that require upgrade for safety and environmental concerns that were not considered during the original project scope development. One example of this involves the repair and upgrade of the transfer trip scheme that provides for a plant trip in the event the Gobbi distribution circuit trips. This is a safety issue that must be addressed for the plant to start up. A second example is the upgrade of the Department of Fish & Game hatchery water supply pumps and control scheme necessary to obtain permits from Fish & Game and the National Oceanic and Atmospheric Administration required for plant startup. Maintenance Practices: Based on plant records and the condition of equipment, it is evident that there was deferred maintenance at the power plant over its life, including the past nine years that the plant has not operated. This fact was compounded by the equipment damage that occurred during the flood. The costs associated with this deferred maintenance and flood damage are being incurred during this restart. Original Project Budget Assumptions: The original project budget was based on anticipated costs that would be encountered to start up a power plant that was constructed utilizing industry standard engineering and construction practices. As discussed, problems in these areas have resulted in costs above the original project budget. Bud,clet: The additional funds needed to complete the hydro restart project are estimated at this time to be approximately $700,000 as follows: System Budget Increase Turbine/Generator/Stop Valves $311,191 SCADA Demolition/Installation $219,000 Transfer Trip Scheme $ 50,950 Hatchery Pumps Controls Upgrade $ 85,171 Other less budgeted contingency $ 30,240 TOTAL $ 696,552 Schedule: The original estimated startup date of the hydro project following the stad of the refurbishment contract was the first part of November. In September the schedule was extended to mid-December to allow for completion of the Tainter Gate modification contract that was delayed due to the need to rebid the project. Due to the increased scope of work regarding the SCADA system, the power plant is now scheduled for start-up testing the middle of February, 2007. Other plant mechanical, electrical and auxiliary systems are either complete or will be completed around the first of the year. The Tainter Gate modification will be completed before the end of the year. Project Economics: The forecasted value of the generation produced by the hydro project has not changed from the original proposal presented to the Council in July of 2005. The project has a net present value (offset contribution to the City's fixed cost budget) through the year 2020 of approximately $8,000,000. Depending on the amount of FEMA funds recovered for flood damage, the Hydro Restart Project has a NPV payback of approximately 3.5 to 5 years. This is an increase of approximately 1 year over the payback estimated in the September Agenda Summary Report to Council. Summary: While the hydro restart project has experienced increase in funding needs and some schedule delays, the repairs and improvements that have and will be accomplished to bring this project to a successful conclusion will result in a reliable generation resource for the City for many years to come. This project still remains an economically favorable project for the City of Ukiah and its electric customers. ITEM NO: DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND APPOINTMENT OF CITY COUNCILMEMBERS TO VARIOUS BOARDS AND COMMISSIONS SUMMARY: There are a variety of Board, Committees and Commissions that the City Councilmembers are appointed to. The Mayor is responsible for appointing the Councilmembers to the various committees. On December 6, 2006, the City Manager provided the Council with a list of the 2006 Council Committee Assignments for review and discussion. Mayor Rodin reviewed the Boards and Committees, polling Councilmembers and making tentative assignments as identified in Attachment 1. Staff was directed to bring this matter back to the Council for formal action on December 20, 2006. RECOMMENDED ACTION: Discuss and appoint City Councilmembers to various Boards and Commissions. ALTERNATIVE COUNCIL POLICY OPTION: N/A Citizen Advised: N/A Requested by: City Council Prepared by: Sue Goodrick, Risk Manager/Budget Officer Coordinated with: Candace Horsley, City Manager Attachments: 1 - Proposed Council Commission/Committee Assignments Candace Horsley, City Manag~ AGENDA SUMMARY ITEM NO: DATE: December 20, 2006 REPORT SUBIECT: DISCUSSION ON ISSUES TO BE DISCUSSED AT A JOINT CITY COUNCIL/COUNTY BOARD OF SUPERVISORS MEETING REGARDING THE UKIAH VALLEY AREA PLAN - McCOWEN SUMMARY: The City Council is scheduled to meet with the Board of Supervisors on January 10, 2007 from 8:00 a.m. to 1:00 p.m. at the Ukiah Valley Conference Center to discuss issues related to the Ukiah Valley Area Plan (UVAP). The County's UVAP consultants and the County Planning Team will be in attendance to facilitate a discussion of land use and environmental planning issues for the Ukiah Valley. On December 6th the City Council appointed Mayor Rodin and Councilmember McCowen to an ad hoc committee to develop UVAP talking points for the Council to consider in advance of the joint meeting. The draft talking points will be provided to you when received from the ad hoc committee. RECOMMENDED ACTION: Discuss the recommendations of the ad hoc committee and whether these reflect the current position and priorities of the City Council relative to the UVAP process. ALTERNATI'VE COUNCI'L POLI'CY OPTION: N/A Citizen Advised: N/A Requested by: Councilmember McCowen Prepared by: Councilmember McCowen and Mayor Rodin Coordinated with: Mayor Rodin and Candace Horsley, City Manager APPROVED: candace Horsley, City Manager Ukiah Valley Area Plan Talking Points Following are three broad areas regarding development of the UVAP that the City Council believes merit discussion with the Board of Supervisors. I. CREDIBLE UVAP PROCESS There is a perception by some community members that the UVAP process ~s not fully transparent and responsive to community input. For the UVAP to be viewed as a credible document and to gain public support, the process must be open and responsive to community participation. The council would like to discuss with the Board ways that we can ensure the credibility and legitimacy of the UVAP process. II. ISSUES FOR INCLUSION IN THE UVAP A. Growth Projections: The UVAP should disclose total build out and ana- lyze a worst case scenario whereby build out projected to occur over the life of the planning document might actually take place in as little as three or four years. B. Water: Existing sources are not sufficient to meet current needs in a dry year. The UVAP should realistically discuss the availability of water to pro- vide for new development. C. Sewer: If projected build out under UVAP exceeds the hookups provided by the wastewater treatment plant expansion, the UVAP should explain how and where the additional sewer capacity will obtained. D. Circulation: It is vital that the County and City work together to identify and mitigate traffic impacts. New development should pay to mitigate im- pacts caused by that development. E. Floodplain Development: Last winter's storms provided a vivid lesson that floodplain development should be avoided. Increased floodplain de- velopment will result in lives being placed in jeopardy or increased flood- plain fill that will increase downstream flooding. Any proposal for increased floodplain development should include a meaningful discussion of the cu- mulative impacts of such development. F. Protection for Agricultural Land: Protection of agricultural land is essen- tial to maintaining our rural quality of life and to limiting sprawl and growth inducing impacts. G. Retention of Industrial Zoning: It is important to retain a sufficient amount of industrial zoning to accommodate future needs. H. Timely Implementation of Mitigation Measures: The UVAP must in- clude a strict mitigation monitoring plan to insure that mitigations are im- plemented in a timely manner to minimize the cumulative impacts of de- velopment. I. Fiscal Analysis: A comprehensive fiscal analysis of the costs of mitiga- tions and how and by whom they will be paid is essential to determine if recommended mitigations are feasible. If it is not practical or economically feasible to construct mitigations for sewer, water, circulation or other im- pacts, then the mitigation is invalid and the impact remains unmitigated. III. J. Growth Management: The Ukiah Valley is currently subject to significant pressure for growth and development. A Growth Management Plan is necessary for sustainable and orderly growth and development and to provide for housing and jobs while minimizing environmental impacts. A Growth Management Plan will ensure that local builders have an opportu- nity for available sewer and water hookups. ACTIVITIES CONCURRENT WITH AND INTEGRAL TO THE UVAP PROCESS: The fol- lowing planning related initiatives will further the goals of the UVAP by provid- ing relevant information or assisting in implementation. A. Municipal Service Reviews: MSR's will provide relevant information that will help determine appropriate land use decisions. MSR's should be com- pleted early in the UVAP process. B. Sphere of Influence: Developing a realistic Sphere of influence for the City of Ukiah is a logical part of the UVAP process and the City welcomes citizen participation and a recommendation on the SOl as part of the UVAP process. c. Tax Sharing Agreements: Tax sharing agreements will reduce or elimi- nate economic competition and position the City and County to make land use decisions based on planning principles. AGENDA ITEM NO: 1 la MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION ON STATUS OF IMPLEMENTING THE CITY'S SEWER LATERAL INSPECTION ORDINANCE INCLUDING POINT-OF-SALE REQUIREMENTS In response to a Consent Decree and Order, the City is working to implement a Sewer Lateral Inspection Ordinance which includes point-of-sale requirements. Staff has convened a working group which includes interested members of the real estate (Continued on paqe 2) RECOMMENDED ACTION: Staff is seeking input and direction from Council on the policy issues related to implementing this program. Issue 2 in particular, has financial implications for both the City and property owners. Based on Council direction, staff will bring proposed revisions to the existing policy to Council for action in early 2007. Revisions will likely take the form of an Ordinance that makes modifications to Division 4, Chapter 2 of the Municipal Code. The City Attorney also recommends that the City implement the existing City ordinance prior to January 17, 2006, pending the enactment of modifications to the ordinance, in order to comply with its obligations under the Consent Decree. ALTERNATIVE COUNCIL OPTIONS: The attached Technical Memorandum (Attachment 2) presents Council with a range of alternative actions. Staff is seeking direction on Council preferences. FUNDING: Amount Budqeted N/A Account Number Additional Funds Requested N/A N/A Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: North Bay Association of Realtors City Council Ann Burck, Project Engineer Utilities Department Mary Grace Pawson, P.E., Winzler & Kelly David Rapport, City Attorney/Candace Horsley, City Manager 1. Section 3799 of the Ukiah Municipal Code 2. Technical Memorandum 2, date 12/11/06, Winzler & Kelly Approved: C~ndace Horsley,'~City Manager community, plumbing contractors, two city council members and other interested parties to receive information about the best way to comply with the Consent Decree, including information about the impacts of the program on the real estate community. The working group has met three times since late November and identified 10 major issues that could be addressed by modifications to the City's existing Sewer Lateral Inspection requirements which are found in Section 3799 of the Municipal Code. (A copy of that code section is attached as Attachment 1 .) These issues are: Issue 1: A Point-of-Sale Requirement Is Not as Effective as a Geographically Targeted Program Issue 2: The Existing City Policy Regarding Ownership of Laterals Makes Repairs Too Expensive and Is Unfair Issue 3: The Cost of Required Repairs to Private Laterals May Be too Expensive for Some Owners Issue 4: Other Jurisdictions Do Not Require Point-of-Sale Inspections Issue 5: Point-of-Sale Requirements Place Liability on Realtors that Previously Did Not Exist Issue6: The Permitting Requirements Outlined in Section 3799 Are too Burdensome and Will Delay Real Estate Transactions Issue 7: The Existing Requirement that all Repairs Be Completed Prior to Close of Escrow is Unnecessary and Could Delay Real Estate Transactions Issue 8: Section 3799 Could Require Frequent Re-inspections if Property Turns Over Frequently Issue 9: The Remodel Trigger in Section 3799 Is Tied to Assessed Value which Is an Arbitrary Measure. Issue 10: Inconsistency between the City's Requirements and Requirements of the Ukiah Valley Sanitation District Could Cause Confusion and Frustrate Compliance Attachment 2 is a Technical Memorandum prepared by Winzler & Kelly which provides discussion, analysis and alternative actions to address each issue. The City Attorney is providing separate information for the City Council to consider in the related closed session. Affachment # .. [ Page 1 of 3 ARTICLE 18. SEWER LATERAL TESTING I 3799.1: PURPOSE, POLICY AND ADMINISTRATION: A. The purpose of this article is to reasonably ensure the soundness of the sewer collection system in order to prevent infiltration, exfiltration and to ensure that both new and existing sewer laterals comply with the provisions of this chapter, to better protect the city of Ukiah sewage treatment plant ("plant") and the environment. The director has the authority to alter the testing methods prescribed herein, if such methods are impractical, because of the nature or physical location of the lines to be tested. B. This article shall apply to the city of Ukiah and to persons outside the city who, by contract or agreement with the city, are users of the city's plant. (Ord. 1057, §2, adopted 2004) 3799.2: APPLICABILITY: A. All new connections to the public sewers shall be tested in accordance with the provisions of this section, to include gravity and pumped sewer services. No person shall use or introduce wastewater into the public sewer until the service lateral has passed a test as specified in section 3799.3 of this article. B. No existing service lateral shall be allowed to remain connected to the public sewer which is incapable of passing a test as specified in section 3799.3 of this article. C. All service laterals connected to a sanitary sewer, including laterals serving residential, multi-family residential, commercial or industrial uses, shall be cleaned and tested in accordance with section 3799.3 of this article, upon the occurrence of any of the following: 1. Remodeling of the house, building or property served, where the cost of the improvements exceeds fifty percent (50%) of the assessed value of the property, as determined by Mendocino County assessor, or 2. Installation of additional toilet facilities in the house, building or property served, or 3. Change of use of the house, building or property served from residential to commercial, or from nonrestaurant commemial to restaurant commercial, or 4. Upon repair or replacement of all or part of the sewer lines connecting the building or property to the sewer main, or 5. In connection with a change of ownership of any house, building or property served and prior to the recordation of any deed or other conveyance document, or 6. Upon the determination of the director that the cleaning and testing is required for the protection of the public health, safety and welfare. D. Testing and inspection of the building sewer, lateral sewer and connections shall be conducted using one or more of the following methods: http://www.sterlingcodifiers.com/CA/Ukiah/docbar.htm 12/13/2006 Page 3 of 3 replacement of the building sewer, a reinspection shall be conducted by the city engineer/inspector. Retesting of the sewer lateral shall be at the discretion of the city engineer/inspector. This process shall continue until the lateral passes the required test. 3. Lateral Certification: Once the lateral has successfully passed the testing procedure, the city inspector witnessing the test will sign the appropriate form adopted by the director. (Ord. 1057, §2, adopted 2004) 3799.4: TESTING UPON CHANGE IN OWNERSHIP: A. Change In Ownership And Testing: 1. Whenever any property is subject to a change in ownership, and the property includes any buildings or structures constructed more than one year prior to change of ownership of the property, the sewer lateral(s) to the property shall be tested for infiltration and all necessary repairs or replacements performed to prevent infiltration shall be completed prior to the recordation of the instrument causing the change in ownership. 2. An inspection certification signed by an authorized city inspector must be filed with the Mendocino County recorder before the recorder may accept the conveyance document for recordation. It is the responsibility of the seller or grantor to repair or replace or otherwise remedy infiltration of inspected sewer lines and laterals prior to transfer of property connected to the city sewer system. 3. A "change in ownership" means a transfer of a present interest in real property, including the beneficial use thereof, the value of which is substantially equal to the value of the fee interest, where any consideration is paid to the grantor for the conveyance or transfer. B. Exceptions: This section shall not apply to: 1. Any condominium or cooperative apartment building; 2. Any building where the director, or his or her authorized representative, determines that testing and/or repairs have been performed to city standards within the last five (5) years. (Ord. 1057, §2, adopted 2004) 3799.5: SEVERABILITY: If any part or parts of this article shall be held to be invalid, such invalidity shall not affect the remaining parts of this article. The city council declares that it would have passed the remaining parts of this article, if it had known that such part or parts thereof would be declared invalid. (Ord. 1057, §2, adopted 2004) http://www.sterlingcodifiers.com/CA/Ukiah/docbar.htm 12/13/2006 Aftachment # ~ ~ XYc'Ilq ZLER &KELLY C O N S U L ~' I N G E N G I N E E R S City of Ukiah Sewer Lateral Rehabilitation Program TECHNICAL MEMORANDUM 2 Implementation Issues and Alternatives PREPARED FOR: PREPARED BY: DATE: PROJECT NUMBER: City of Ukiah Mary Grace Pawson/Winzler & Kelly December 11, 2006 02502-06-002-32010 Introduction In 2005, the City of Ukiah (City) and the Ukiah Valley Sanitation District jointly entered into a Consent Decree and Order and agreed to implement programs to reduce infiltration and inflow (I/I) into the sewer collection systems that they maintain. The City's responsibilities include "implement(ing) a sewer lateral inspection, repair and/or replacement program....includ(ing) mandatory sewer lateral inspection at the point of sale and in conjunction with sewer main repair or replacement." Said program is to be in effect by January 17, 2007. Prior to the execution of the Consent Decree and Order, the City has adopted an ordinance making provisions for mandatory inspections upon a number of triggers including significant remodel and at the time the property is sold (point-of-sale). This ordinance is codified in Section 3799 of the Municipal Code (Section 3799). Also, City policy, in effect prior to 2005, clearly articulates that private sewer laterals are the responsibility of the private property owner. The City is currently working to develop a system of policies and procedures that would allow it to implement Section 3799 In a manner that effectively reduces the I/I contribution to the City's sewer system. Such implementation may include modification of Section 3799 as written. As part of this effort, staff has convened a "working group" with the real estate community and other interested parties to discuss program and implementation strategies. This Technical Memorandum outlines the Implementation Issues and Alternatives that have been discussed in the working group. City Council direction is sought. If appropriate, proposed modifications to Section 3799 will be brought forward as an Ordinance in early 2007. Issue 1: A Point-of-Sale Requirement Is Not as Effective as a Geographically Targeted Program Discussion: Requirements that tie sewer lateral inspection and repair to point-of-sale are not informed by field data related to the actual condition of the pipelines. The requirement also does not address any condition problems that exist beyond the sewer lateral in the sewer mains. In addition, with an estimated annual real estate sales rate of approximately IMPLEMENTATION ISSUES AND ALTERNATIVES 100 to 125 units per year within the City limits, it would take 50 to 60 years to reach all properties. As a practical matter, Section 3799 requires lateral inspection, and if necessary repair, based on a number of triggers including remodel, change of use, installation of additional plumbing facilities and point-of-sale. In addition, the City is actively pursuing a pipeline condition assessment program (another requirement of the Consent Decree) and the City's adopted rates should generate $5 million to $6 million every 5 years to fund geographically targeted pipeline repair. Also of note, because the City agreed as part of the Consent Decree to adopt a point-of-sale requirement, the City would need to renegotiate its terms if it wished to remove the requirement. There is no guarantee that such renegotiation would be successful or that such a renegotiation could be completed on time. Finally, the current terms of the Consent Decree do not provide specific implementation details on the point-of-sale requirement, providing the City with flexibility and discretion in developing its local policies and programs. Alternatives to Address the Issue: 1. Make no changes in the City's existing program which currently includes mainline inspections, provides funding for mainline repairs, and requires private lateral inspections and repairs at the property owner's expense under a range of triggers including point-of-sale. 2. Make some changes to Section 3799 to facilitate its implementation (see discussion under Issues 5 through 10 below) and increase consistency with the Ukiah Valley Sanitation District requirements. Continue to pursue mainline inspections and a mainline Capital Improvement Program consistent with available revenue. 3. Pursue Renegotiation of the Consent Decree to substitute a geographically targeted program for the Point-of-Sale Requirements. Issue 2: The Existing City Policy Regarding Ownership of Laterals Makes Repairs Too Expensive and Is Unfair Discussion: The City's existing Sewer Use Ordinance (Division 4, Chapter 2 of the Municipal Code, which includes Section 3799), defines the private property owner's responsibility to include the lateral all the way to the City sewer main. Depending on the configuration of the sewer mains, this means a property owner's responsibility may extend across the owner's property and all the way across the public street in order to reach the main. Obviously, the complications related to repairing a lateral in a public street are more significant than repairing the lateral on private property. The issue of lateral ownership in the public right-of-way is probably the most significant issue facing the City. Accepting this responsibility brings with it both the costs of additional infrastructure to maintain and the benefit of planning and executing work in the right-of way consistent with other City programs such as street repair, water line repair, storm drain SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 2 IMPLEMENTATION ISSUES AND ALTERNATIVES repair etc. The City Council may want to get some estimate of the additional cost to the City this change may involve, particularly since this change goes well beyond the sewer lateral replacement program, but could affect on-going costs to the City, whenever a sewer lateral is constructed or repaired. The City's policy is not inconsistent with other jurisdictions - the City of Richmond defines ownership the same way. Closer to home, the cities of Cloverdale, Windsor,and Petaluma make the property owner responsible for the sewer lateral from the building to the connection with the sewer main while the cities of Santa Rosa and Rohnert Park make the property owner responsible only for the portion of the lateral on private property. (Exhibit A to this Technical Memorandum provides these citations). It can be argued that the only reason for a lateral (whether in the public street or not) is to serve a private property. Some other jurisdictions do choose to limit private responsibility to private property. Most State and Federal funding programs and IRS rules for tax-exempt bond financing, allow laterals in the public right-of-way to be constructed and maintained as a public affair. Arguably, the City is best positioned to plan and execute repair work within its right-of-way and avoid multiple disruptions to its pavement as a result of private repairs that occur on an uncontrolled schedule. Those jurisdictions that make the property owner responsible require an encroachment permit for work within the public right of way, which can be used to avoid these disruptions. Plumbing contractors involved in the working group have estimated that inspection and repair, on private property only, costs approximately $2,000. Estimates for a lateral repair that involves crossing a public street to reach the mainline have been estimated as high as $20,000. An intangible issue that has also been raised relates to the fairness of expecting private owners to undertake work in the public right-of-way, although it is very common to impose such obligations on private property owners (e.g., the City Code makes the adjacent property owner responsible for repairing the sidewalk in the public right of way). Council must carefully consider this issue because up till now, the property owner has responsibility for the entire sewer lateral and the City has responsibility for the mains and the sewage treatment plant. That allocation of responsibility is built into the rate calculation and costs for maintaining laterals is not included in the current rates. If the City were to assume partial responsibility for the sewer laterals, that would shift cost from the individual property owner to the rate base, and the rates would have to be adjusted to cover that added cost. The rates have just been increased and it would be difficult, if not impossible, to raise them again, at least, until the currently approved increases are phased in over the next five years. As previously noted, the current rates include $5 to $6 Million for I&I reduction, and some of this money could be used to assume responsibility for a portion of the sewer lateral, but that would reduce the money available sewer main repairs. Additionally, should the City choose to accept responsibility for maintaining a portion of the sewer lateral, the City would incur liability it currently does not have if a backup in the City-maintained portion of lateral caused damage in a home. Currenlty the City's liability is limited to damage caused from main blockages. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 3 IMPLEMENTATION ~SSUES AND ALTERNATIVES The ratepayers may want to consider spreading the cost of maintaining the portion of the sewer laterals within the public right of way through the rate base to all ratepayers, rather than imposing all of that cost on the individual property owner. The choice is really between paying an additional amount each month through the sewer fee to cover the cost of maintaining that portion of all the sewer laterals or paying all of the cost of maintaining the sewer lateral serving an individual property once every 25 years or so, when an inspection and repair obligation is triggered or when a repair becomes necessary for some other reason. However, this discussion would need to be framed within a comprehensive discussion of rate impacts and rate adjustments. If option 3, below, were adopted, the City would only assume responsibility for the portion of sewer laterals between a property line and the sewer main for those laterals which were inspected and repaired or replaced at the property owner's expense. Under that alternative, the City would be less likely to incur an unbudgeted expense for those lateral segments for many years, which would allow more time for a rate increase to add new expenses to the rate base. For these reasons, it may be possible to adopt alternative 3 now and develop an appropriate rate structure to accommodate the associated future expense and liability five or more years from now. Alternatives to Address the Issue: 1. Make no changes to existing City policy. 2. Develop and implement a City assistance program for property owners in the form of incentive grants or loans. See discussion under Issue 3 below. This Alternative has the advantage of allowing the City to control its costs associated with lateral repair by establishing budgets for the grant/loan program based on anticipated savings at the treatment plant from the reduced cost of treating I/I. 3. Modify City policy to accept responsibility for the portion of the sewer lateral in the public right-of-way once an inspection and repair, funded by the property owner, have occurred. Issue 3: The Cost of Required Repairs to Private Laterals May Be too Expensive for Some Owners Discussion: As noted in the discussion of Issue 2, above, the costs of lateral repair, particularly if work in the street is required can be relatively high. Point-of-sale is often viewed as a reasonable time to incur these types of costs but high-cost, unexpected repairs can create a burden on parties involved. In addition, because Section 3799 involves triggers that are not related to the sale (i.e. repairs could be triggered by a City CIP project), lateral repairs may not always be tied to private financial transactions. Staff research indicates that other jurisdictions, including the City of Petaluma, the Castro Valley Sanitation District, and the City of Burbank provide a lateral assistance program whereby incentives in terms of grants and/or loans are provided to property owners to assist with the cost of repairing or replacing a sewer lateral. Such funding programs can be SEWER LATE FIAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 4 IMPLEMENTATION ISSUES AND ALTERNATIVES qualified as "municipal affairs" because the benefits of I/I reduction are experienced by all ratepayers, hence it is reasonable for the City to assist in achieving these benefits. A City-sponsored incentive program is also advantageous because the City can establish a budget for this program and/or could invest some of its reserves in a loan type program. This avoids the risk of unknown expenses that could occur if the City simply accepted responsibility for a portion of the sewer lateral. An incentive program will take some time to develop and the City may want to consider provisions to make the program "retroactive" so that owners who need to repair a lateral before the City can establish the program, can apply to be reimbursed once the program is available. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Develop and implement a City-sponsored loan program whereby owner costs can be financed over time. 3. Limit owner liability to private property only thereby reducing costs to indivicual property owners, but increasing City responsibility and liability. Issue 4: Other Jurisdictions Do Not Require Point-of-Sale Inspections Discussion; While some portion of the private sewer lateral is almost universally viewed as the responsibility of the private property owner, not all jurisdictions mandate inspection and repair upon certain triggers including point-of-sale. For example the Ukiah Valley Sanitation District and the City of Santa Rosa have negotiated to avoid mandatory point-of sale requirements. Staff research, however, has fotmd point-of-sale requirements in effect in the City of Richmond (East Bay Area), Stege Sanitary District (East Bay Area) and the City of Burlingame (South Bay Area). Additionally, because of the State Water Resources Control Board's relatively new General Permit for Collection Systems, all jurisdictions will be required to develop Sanitary Sewer Management Plans, which will increase focus on both mainline and lateral repairs. Finally, because of the City's requirements within the Consent Decree, it may simply have less flexibility on this issue than some other jurisdictions. Alternatives to Address the Issue: 1. See Issue 1, above. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 5 IMPLEMENTATION ISSUES AND ALTERNATIVES Issue 5: Point-of-Sale Requirements Place Liability on Realtors that Previously Bid Not Exist Discussion: According to current City policy, the sewer lateral is the responsibility of the property owner, not the City, and liability for repairs rests with the property owner. Section 3799 does clarify that realtors, as agents of the owner, will need to communicate this responsibility to both the owner and the potentialbuyer. Section 3799 requires that the owner's responsibility for correcting deficiencies be addressed at the point-of-sale. Again, because realtors are often the owner's agents in a transaction, they likely will have increased disclosure responsibilities during a transaction. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Develop a comprehensive outreach and education program to augment Section 3799. Target the program at property owners in order to inform them of both their responsibility and the City's policies. This will help raise general awareness and could benefit both the real estate community and the City's independent inspection and repair activities. 3. Pursue Renegotiation of the Consent Decree to eliminate the Point-of-Sale Requirements. Issue 6: The Permitting Requirements Outlined in Section 3799 Are too Burdensome and Will Delay Real Estate Transactions Discussion: In part because work in private laterals may require work in the public right- of-way, Section 3799 includes permitting and inspection requirements that involve City inspectors at frequent intervals. The language is similar to the City's requirements for encroachment permits; this is logical because work may require encroachment in public roadways. These requirements result in the need for a property owner, or the owner's agent, to work closely with City staff and may require more time to execute than is considered typical in an escrow (i.e. it could be difficult to pull an inspection permit, schedule an inspection, schedule a repair, pull a repair permit, accomplish the repair and schedule another inspection, within 20 to 30 days). With approximately 100 transactions per year in the City, the average City inspection load would increase by 8 to 10 per month. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Modify Section 3799 to allow for a contractor self-certification program, similar to the backflow prevention certification program, to allow for compliance without regular City inspection. SEWER lATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 6 IMPLEMENTATION ISSUES AND ALTERNATIVES Issue 7: The Existing Requirement that all Repairs Be Completed Prior to Close of Escrow is Unnecessary and Could Delay Real Estate Transactions Discussion: Similar to the discussion under Issue 5, above, requiring a property owner to qualify and select a contractor, hire the contractor, have the contractor schedule work and then complete the work, may be difficult to accomplish within a 20 to 30 day time period. With approximately IIX} transactions per year in the City, the average new demand for lateral replacement work could, temporarily, increase by 8 to 10 per month during the early years when the policy is in effect. During later years, it is possible that fewer repairs would be necessary because of successful earlier efforts. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. Modify Section 3799 to allow owners and their contractors to "bond around" escrow, or allow funds to be held in escrow after it closes with the funds to be disbursed by the escrow agent to pay for the repairs. The bond or funds held in escrow would provide assurances that work would be completed in a reasonable period of time, even if it could not be completed before escrow closed. Issue 8: Section 3799 Could Require Frequent Re-inspections if Property Turns Over Frequently Discussion: Section 3799 provides that a property is exempt from re-inspection requirements for either 1 or 5 years (the Section has internal inconsistencies) and the procedures for certifying a lateral are unclear. This could result in frequent, and probably unnecessary, inspections on a property that is sold multiple times in short time frame. The Ukiah Valley Sanitation District's terms in the Consent Decree provide more specificity on lateral certification and the validity of that certification over time. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Modify Section 3799 to more closely match the specific requirements in the Consent Decree applicable to the Ukiah Valley Sanitation District. 3. Modify Section 3799 to resolve issues related to certification and the validity of certification without mimicking the Consent Decree's provisions for the Ukiah Valley Sanitation District. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 {2) 7 IMPLEMENTATION ISSUES AND ALTERNATIVES Issue 9: The Remodel Trigger in Section 3799 Is Tied to Assessed Value which Is an Arbitrary Measure. Discussion: Since the passage of Proposition 13, the assessed value of a property is not a reliable indicator of real value. Section 3799 ties inspection and repair requirements to any remodeling effort that is estimated to exceed 50% of the assessed value of the property. This means that the trigger is not a fixed value but could vary from a relatively modest remodel to extensive reconstruction (in excess of $250,000) depending on how recently the County Assessor has been allowed to reassess the property. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Modify Section 3799 to tie the remodel trigger to a fixed estimate for the proposed remodel. 3. Modify Section 3799 to tie the remodel trigger to any remodel work that includes a plumbing contractor. 4. Modify Section 3799 to tie the remodel trigger to some combination of estimated cost and need for a plumbing contractor. Issue 10: Inconsistency between the City's Requirements and Requirements of the Ukiah Valley Sanitation District Could Cause Confusion and Frustrate Compliance Discussion: The Ukiah Valley Sanitation District has negotiated different requirements within the Consent Decree. Because properties within the City and the Ukiah Valley Sanitation District are at least proximate and in some cases identical (some annexations to the City have not been "de-annexed" from the Ukiah Valley Sanitation District), inconsistent requirements will be confusing, could result in errors, and probably won't result in reduction of I/I. It is important to note that because the City's obligations under the Consent Decree are not specifically detailed, the City retains a great deal of discretion regarding its local implementation policies and procedures. Alternatives to Address the Issue: 1. Make no changes to the City's existing policy. 2. Modify Section 3799 to mimic the various programmatic elements detailed in the Ukiah Valley Sanitation District's portion of the Consent Decree in order to assure consistency. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 8 IMPLEMENTATION ISSUES AND ALTERNATIVES 3. Pursue renegotiation of the Consent Decree in order to make the City and Ukiah Valley Sanitation District responsibilities and options identical under the Consent Decree. SEWER lATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 {2) 9 IMPLEMENTATION ISSUES AND ALTERNATIVES Exhibit A EXCERPTS FROM SONOMA COUNTY CITY CODES REGARDING SEWER LATERALS Codes Requiring Private Maintenance of the Entire Laterals Cloverdale Ci_ty Code 13.12.110 Laterals. Property owners shall install the lateral lines (house services) from the main sewer line to the property. The city may install such laterals at the expense of the property owner. Payments for such laterals shall be determined by the city council and shall be paid in advance. The property owners shall maintain the laterals from the sewer main to the residence. Any excavation required shall be done only under a proper encroachment permit as provided for by ordinances and resolutions of the city. In the event any lateral line from the sewer main to the residence is blocked or is causing infiltration of surface waters or are malfunctioning in any other manner, the city shall notify the property owner in writing. In the event the property owner does not commence repair within ten days from such written notice and complete such repairs within forty-five days therefrom, the city shall disconnect the line from the city sewer main and shall notify the property owner and the city or county health officers of such disconnection. Such sewer line shall not be reconnected to the city sewer main until it is repaired and constructed in accordance with the standards and specifications required by the city. In the event of such disconnection of the sewer lateral from the sewer main, the property owner, upon completion of the repairs as provided in this section, may be reconnected to the city sewer main upon payment of all reconnection charges and other charges as required by Section 13.12.040 of this chapter. (Ord. 258 N.S. § 14, 1969) Windsor City Code 12-4-140 Supervision of Sewer Connections. All connections with any public sewer in the District, and all repairs thereof, including excavating and laying pipe from sewer to property line, shall be made or caused to be made under the direct supervision of the District, but at the cost and expense of person, firm or corporation desiring the same to be done. Article 2. Sewer Construction 12-4-200 Excavation in Street. Whenever it is necessary to excavate from property line to sewers in public streets in the District, such excavation shall be made by the person, firm or corporation making application and all work shall be installed by an appropriately licensed contractor. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 10 IMPLEMENTATION ISSUES AND ALTERNATIVES 12-4-205 Permit for Excavation and Installation. When any excavation for a sewer connection will be located in the streets of the District, the applicant for such permit shall apply to the County Public Works Department for an encroachment permit, and pay such fees as established from time to time. Petaluma City Code 15.40.060 Applicant to pay cost of construction of sewer laterals. All sewer laterals shall be constructed at the sole cost of the applicant. (Ord. 723 NCS §1: prior code §19.2.3.) Within the City of Petaluma, the building lateral is defined as the portion of the sewer system, beginning at the junction with the house plumbing system, usually located two (2) feet from the foundation wall of the building, and extending to and including the connection to the public sewer main (see figure, below). The building lateral is the private property of the building owner who is, therefore, responsible for all costs relating to the installation, connection, maintenance, repair, reconstruction, alteration, abandonment or removal of the building lateral. Codes Requiring Private Maintenance of a Portion of the Laterals Santa Rosa City Code 15-04.030 Definitions. (54) "Sewer service lateral" means that portion of the sewage system which connects the user's premises to the City sewer. 15-16.010 Sewers required. (A) It is unlawful to discharge any sewage, industrial waste or other polluted waters into any storm drain or natural outlet. (B) It is unlawful to construct, reconstruct, relocate or alter any privy, privy vault, cesspool, septic tank, or other facility intended or used for the disposal of sanitary sewage within the City if a public sewer is available, as described in subsection (C) of this section. (C) The owner of any premises used for human occupancy, employment, recreation, or other human purpose situated within the City and abutting on any street or easement in which there is situated a sanitary sewer within 300 feet of the property line and designed to serve such premises is required to install, at his expense, a connection with the public sewer in accordance with the provisions of this title within 90 days after date of official notice by the City Council to do so and the private sewage disposal system shall be removed or cleaned of sludge and filled with gravel, sand, or clean compacted earth. SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 11 iMPLEMENTATION ISSUES AND ALTERNATIVES (D) User shall maintain, operate, and repair, at his expense and after obtaining all required permits, that portion of sewer service lateral and cleanout which are located upon, within, or under any property not owned by the City. The user shall be responsible for maintaining a clear, unobstructed sewer service lateral from the user's premises to the City sewer. (Ord. 3047 § 1 (part), 1993) Rohnert Park City Code 13.12.030 Building sewer defined. "Building sewer" means a sewer on private property serving a specific building or property and maintained by the owner thereof. (Ord. 267 § 3 (part), 1975) 13.12.370 Sewer lateral defined. "Sewer lateral" means the same as "building sewer." (Ord. 267 § 3 (part), 1975) SEWER LATERAL PROGRAM - ISSUE WHITE PAPER REV 12-15 (2) 12 AGENDA ITEM NO: 11 b MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION ON ELECTRIC RESOURCE OPTIONS AUTHORIZING CITY MANAGER TO INCREASE THE CITY'S PARTICIPATION IN THE NEW LODI POWER PROJECT AND AUTHORIZING THE CITY MANAGER TO DIRECT NCPA TO ACQUIRE SHORT TERM POWER PURCHASE CONTRACTS TO MEET THE CITY'S POWER DEFICIT BACKGROUND: The City of Ukiah (City) has a municipal electric utility and is a member of the Northern California Power Agency (NCPA), a nonprofit California joint powers agency. As a member of NCPA, the City has percentage shares of various electric generation projects and contracts as constructed, acquired, and/or administered through NCPA. The City also has its own hydroelectric plant which is currently being refurbished and scheduled to be operational in the early part of 2007. Continued on page 2 RECOMMENDED ACTION: 1) Authorize the City Manager to increase the City's participation in the New Lodi Power Project to 5MW by signing the Phase II Agreement for Financing the Planning and Development of the New Lodi Project. 2) Authorize the City Manager to direct NCPA to acquire short term power purchase contracts to meet the City's power deficit for up to three years at the following percentages of the City's power deficit: 100% for 2007, 50% for 2008, and 25% for 2009 given the uncertainty of timing for when the NGPP units might start providing energy. ALTERNATIVE COUNCIL OPTIONS: Re-direct staff. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Approved:' N/A Jeff Gould, Interim Utility Director; Liz Kirkley, Electrical Distribution Engineer Liz Kirkley, Electrical Distribution Engineer Candace Horsley, City Manager 1. CVP Corp Letter dated 11/28/06 2. NCPA Resolution 06-48 3. Member Agreement (Second Phase) for Financing the Planning and Development Activities of the New Lodi Project 4. Electric Resource Options Power Point Presentation Candace Horsley, City,Manager As discussed for the last two years, the City finds itself in need of additional future electric power supplies. This need is primarily due to the three (3) following factors: · Anticipated future City electric load growth, including annexation · Continued decline of electric capacity and energy output from the City's largest electric generation asset, the NCPA Geothermal Project · Recent cancellation of the City's 3 MW Calpine Power Contract Also, on December 21, 2005 the City Council authorized a 10MW participation in the NCPA Resource 500 Project; a 500 MW Natural Gas Turbine Sutter Power Project owned by Calpine. The participants voted to terminate all work under the Resource 500 Development Agreement as a result of the Calpine bankruptcy proceedings. (See Attachment 1 - Central Valley Project (CVP) Corporation letter dated November 28, 2006.) In order to meet a part of the City's future resource needs, the City Council approved a 3MW participation in the NCPA Green Power Project (NGPP) on September 6, 2006. The NGPP is limited to, biomass, biodiesel, fuel cells using renewable fuels, digester gas, geothermal, landfill solar (thermal), solar (photovoltaic), wind, or small hydro (30MW or less). The City is also participating in the investigative process of the NCPA 250 MW Natural Gas Turbine New Lodi Power Project. At the November 30, 2006 NCPA Commission Meeting NCPA Resolution 06-48 (see Attachment 2) was approved for the permitting and development of the New Lodi Project, the finalization and approval of the Phase IIA Agreement and approval of the Memorandum of Understanding with the Modesto Irrigation District. Attachment 3 is the Member Agreement (Second Phase) for Financing the Planning and Development Activities of the New Lodi Project. The Following is a list of the City's existing Electric Power Resources: Electric Power Resource · NCPA Geothermal Project 1 · NCPA Geothermal Project 2 · NCPA Hydroelectric Project 1 · FederalWestern Hydro Allocation · 2006 Market Power Purchases · Seattle City Light Exchange Contract Type FY 06/07 $/MWh Geothermal $50.13 Geothermal $68.81 Hydro $66.33 CVP Hydro $26.11 Futures Market $72.40 Hydro ~break even Below is the graph "Energy Balance Ukiah" Jan 2007 - Jan 2012. The vertical scale is comprised of available energy from the City's existing power resources. Starting at the bottom is the City's' largest resoume, the NCPA Geothermal Project (periwinkle); followed by the NCPA Hydro Project (azalea); then the City's Federal Western CVP Hydro Allocation (lime green) along with the City's Seattle City Light Capacity/Energy Exchange Contract (yellow) (load obligation in the fall/winter months and a power supply in the summer months); finally followed by the City's Lake Mendocino Hydroelectric generation (lavender). Because of the fact that two of the City's resources are Hydro, the greatest availability of energy is Spring (Q2) through most of (Summer (Q3)) (dependent on type of rain year) with the least amount of available energy Fall (Q4) through Winter (Q1). Although the City's loads peak in the Summer (Q3), its net power requirements are greatest in the late fall and winter because of hydrological effects and its Seattle City Light contract; a thirty year energy/capacity exchange contract that went into effect in 1993. Hydro resources with storage reservoirs are normally at minimum generation levels in the fall/winter, high levels during spring runoff, and generating with storage during the summer peak periods. Like most systems with hydro resources the power requirements in spring is normally the lowest because of heavy runoff and when loads are Iow. Toward the top of the graph is a red line, which represents the City's Energy Load. The white area underneath the line to the lavender area represents energy needs presently filled by market purchases. Energy Balance Ukiah 16.0 14.0 12.0 10.0 6.0- 6.0 4.0 2.0 0.0 Because of the continued steam field decline associated with the NCPA Geothermal Project, available energy is 91.6 GWh for 2007 declining to 86.5 GWh for 2011. Conversely the City's energy need is 127.7 GWh for 2007 increasing to 135.6 GWh for 2011. The combined effect is that the City has an energy deficit, presently met through wholesale market purchases of 36.2 GWh for 2007 increasing to 49.1 GWh for 2011. Below is a graph "Q1'07 HLH Forward Price by Hub" (HLH=High Load Hours or peak). As a means of mitigating the extreme volatility of the market, the City has followed a strategy of layering power purchases over time. Therefore, 25% of the City's needs were purchased for Q1'07 during spring of 2006 at $83.00/MWh. Though this may seem to be a premium, just one year earlier forward prices were at a range of $100.00/MWh- $120.00/MWh, while day-ahead prices peaked at $140.00 MWh. MidC NP15 ~SP15 PV ~COB1 $104 $100 $96 $80 $76 $72 $160 The following graph shows the volatility of the day-ahead market. (June 1, 2005-June 14, 2006) Mid-C COB ~N Cai S Cai PV] $t40 $120 $100 $8O $6O $4O $20 $0 ($20) EMR Day Ahead Peak Period Electric Prices Immediately below is the graph "Ukiah-Net Energy Balance" which shows the energy deficit for both HLH & LLH (Low Load Hours or off-peak) periods as a function of (-aMW) over a 5-year period beginning January 2007. 0.0 -2.0 -4.0 -6.0 4.0 -10.0 -12.0 Ukiah - Net Energy Balance Month Below is the graph "Ukiah-Net Cost of Market Transactions" which shows the varying projected market rates the City is exposed to in order to meet the City's future energy needs. $5,000 $4,500 $4.000 $3.500 $3.000 $2.500 $2.000 $1.500 $1,000 $500 $- AvgAnn Elect MM Price $/MVVh) 2007 2009 2011 High = 85 90 90 Med = 62 64 65 Low = 45 45 45 Ukiah Net Cost of Market Transactions 2007 2009 2011 Mkt Rates The graph below indicates the 2005 percentage of renewable resources for each NCPA member. 2005 Power Supply from Renewable Fuels (% of tota~ load met with renewable resources. 2005 Data from Power Source Disclosure) 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% m2005-Eligible Renewable g]2005q-arge Hydro D2006-Expected Eligible Rer~wable The City's Power Content Label projected for Q1 2007 below demonstrates the City's energy portfolio is not in need of additional renewable energy. POWER CONTENT LABEL 2007 Quarter 1 Eligible Renewable -- Biomass & waste -- Geothermal -- Small hydroelectric -- Solar -- Wind Coal Large Hydroelectric Natural Gas Nuclear Other 56% 5% <1% <1% 46% 4.0% 10% 70.0% <1% <1% <1% <1% 14% 38% 18% 24% 12% 33% <1% <1% <1% <1% TOTAL 100% 100% OPTIONS: It appears that unless the declining output of the NCPA Geothermal Project subsides and/or the City's electric load growth rate subsides, that there is a need to acquire energy resources to mitigate the City's exposure to volatile market prices. In addition to the 3MW interest the City has in the NGPP, NCPA has recommended a 5MW interest in the New Lodi Power Project as described below: The NCPA 250 MW Natural Gas Turbine New Lodi Power Proiect NCPA has been in the Phase I development process of installing a 250 MW natural gas fired, combined cycle power plant at its existing Gas Turbine Project I Site in Lodi, CA (STIG). The existing site offers numerous economic advantages of sitting such a project elsewhere. The existing infrastructure at the site includes in part, the availability of treated water from the City of Lodi, proximity to PG&E and Western Transmission lines, availability of existing land within the site, the availability of existing staff and support equipment at the site, the availability of an existing PG&E natural gas transmission line, and the availability, if needed to acquire additional land from Lodi. Presently, the Project is undersubscribed at 100 MW. Given that NCPA has been in discussion with the Modesto Irrigation District (MID) concerning the feasibility of MID participation in the project. MID has shown interest and presently NCPA and MID have scheduled a meeting to develop a Memorandum of understanding (MOU) to define the interest of MID participation in the Project. Expected Project Completion is 2010. If the project becomes fully subscribed with MID participation, the Project will enter a Phase II Development process as follows: · Phase I IA costs are $4,000,000. If the City were to continue to participate, its costs would be $70,482 (at 3MW); $123,418 (at 5MW) Phase liB costs are $10,000,000. If the City were to continue to participate, its costs would range from $182,530 (at 3MW) to $194,231 (at 5 MW) to $320,000 (at 5 MW if Redding drops out) If the New Lodi Power Project proceeds to Phase III, financing and construction, all Phase I and Phase II participants would be reimbursed for their costs as part of the Phase III financing regardless of being a Phase III participation. Based on historical gas and electricity prices, the New Lodi heat rate ~7,000 btu/kWh range suggests operating levels above 70% Capacity Factor (CF) vs. market implied heat rates. Annual CF (%) Operation vs Historical Implied Heat Rates (NP15 & PG&E CG) 100% 90% 80% 70% 6O% 5O% 40% - 30% 20% - 10%- 0% net Heat Rate (HHV) - btu/kwh Additionally, NCPA is also investigating the feasibility of developing a wind power project at its Geothermal Project Site in the Geysers. Wind conditions at the Geysers are not yet fully defined. Meteorological towers have been installed and should provide a better understanding of the wind resource in that area in the next six months or so. Because power from each of the options described above will not be available for two or three years, the City will need to acquire power in short term contracts. SUMMARY: Staff wants to impress upon the City Council the importance of having a diversified energy portfolio in order to mitigate the risk of high energy bills. The City is presently utilizing the volatile wholesale futures power market for a large share of it energy needs due to a deficit of electrical energy resources. Because of the continued steam field decline associated with the NCPA Geothermal Project and anticipated load growth, this energy deficit is expected to increase over time. The City is a participant in the investigative process of the following new resources, the NCPA Green Power Project (3MW) and the New Lodi Power Project (3-5MW). New power resource development is limited in California. Given the above, staff recommends: 1) Authorize the City Manager to increase the City's participation in the New Lodi Power Project to 5MW by signing the Phase II Agreement for Financing the Planning and Development of the New Lodi Project. 2) Authorize the City Manager to direct NCPA to acquire short term power purchase contracts to meet the City's power deficit for up to three years at the following percentages of the City's power deficit: 100% for 2007, 50% for 2008, and 25% for 2009 given the uncertainty of timing for when the NGPP units might start providing energy. November 28, 2006 C V P ¢orp Central Valley Project Co pcratio~ IL80 C,rb'/ Way Roseville, CA 95678 Candace Horsley City Manager City of Ukiah 300 Seminary Avenue Ukiah, Ca 95482 RE: Resource 500 Termination/Refund Dear Candace: Over the past year, the Central Valley Project Corporation (CVP Corp) has been pursuing several business opportunities to benefit its members and the public power community of Northern California. One of those opportunities has been the Resource 500 Project in which you are a participant. As you know, the intent of the project was the purchase of the Sutter Energy Center facilities from Calpine Corporation. Resource 500 has been an ambitious undertaking with the potential to provide substantial economic and operational benefits. Unfortunately, Calpine has informed us that their business restructuring plan includes retaining ownership of the Surfer facilities. Although Calpine's decision not to sell could change before it emerges from bankruptcy proceedings, it appears unlikely that their decision will change in the next year. After careful consideration of all aspects of the current situation, and especially the preferences expressed by Resource 500 Participants, the CVP Corp Board voted unanimously on November 17, 2006 to terminate all work under the Resource 500 Development Agreement and to return unexpended funds that had been collected. It is anticipated that all outstanding obligations for the Project can be paid, a final reconciliation of funds prepared, and unexpended funds returned by December 31, 2006. The participants jointly advanced $786,000 for development work and we estimate a total of approximately $500,000 will be refunded. The CVP Corp Board is disappointed that we were not successful in acquiring the Sutter Energy Cent6r facilities. However, we are pleased that we lead a collaborative development effort at minimum costs, and produced a workable Power Sales Agreement and an efficient organizational template for operations that can be used in the future. We appreciate the constructive efforts of all Resource 500 Participants and encourage your continued support of CVP Corp programs and activities. Sincerely~ JHP:dd 1.97 RESOLUTION NO. 06-48 RESOLUTION OF THE NOR~ CALIFORNIA POWER AGENCY APPROVING THE PHASE 1I AGREEMENT OF THE NEW LODI PROJECT DEVELOPMENT WHEREAS, NCPA members have identified the need for additional resources to meet their anticipated demand for energy and capacity over the next ten years and beyond; and, WHEREAS, members have eonsidared options including market pushers, aeqdisition of existing project% par~erships in ~ flev~lop,uenl with oflgr entities, increasing the capacity at existing ~CPA plants, and developing new and m~re efficient resomees; and, WHEREAS, members desire to develop and construct an efficient, economic and environmentally responsible energy and capacity resource as part of their power mix s~rategy; and, WHEREAS, the Participating Members are ready, willing and able to support the development of this project; and, WHEREAS, NC'PA is ready, willing and able to enter into agreements on behalf of the Participating Members to efficiently and effectively develop and permit the project; NOW, THEREFORE BE IT ~LVED, that the Conimission oftbe Northern Cal~u.~da Power Agency hereby ai~toves the proposal ami ~he IRan de~nq~d in the ammhad Staff~ anlhorizing an fmalizatien and approval of the Phase NA Agreeme~ and ~e fm~l~at/on and ~op~ ~val of the Memorandum of FUR.~ORE, the Co. mmi.mion: a) approves the activities and intent of the New Lodi Phase 1I Agmemant ~ ~ ~ M~; b) authorizes ~m of th~ Ph~e H Agree~ on behalf oft~PA by tbe d NCPA General !~a~?r with such non--si chang~ as appa,.,~ed by the NCPA General Conrail; mad c) al.~u,,~es ~ forwarding oftbe final from of the Phase II Agreement to tbe Pm'tie.ting Menlb~ to obtain theft approval of the Phase II Agreement and the MID MOU. PASSED, ADOPTED and APPROVED this 30th day of November 2006, by the following vote on roll call: Alameda BART Bigg, s Oridley H~ldsburg Lodi Lompoe Palo Atto Port of Oakland Redding Roseville Santa Clara Truckee Donner Turloek Uldah Plumas-gierra PATRICK KOLSTAD VO~ Abstained Abser~. 7 Y MEMBER AGREEMENT (SECOND PHASE) FOR FINANCING THE PLANNING AND DEVELOPMENT ACTIVITIES OF THE NEW LODI PROJECT This Agreement, by and between Northern California Power Agency, a joint powers agency of the State of California, hereinafter called "NCPA', the MID (Modesto Irrigation District), an Irrigation District, and NCPA members who execute this Agreement, hereinafter called "Project Members," is made and entered into in Roseville, California on November 30, 2006, for the purposes as set forth herein. WITNESSETH: WHEREAS, NCPA, MID and the Project Members are interested in developing additional power generation to meet the future demands of the Project Members' customers; and WHEREAS, NCPA proposes a new generator facility, located on property owned by the City of Lodi and which is anticipated to be a 255MW, the combined cycle generation facility (hereinafter referred to as the "New Lodi Project". WHEREAS, following study and discussion of the findings made to NCPA Members on August 25, 2005 pursuant to NCPA Resolution 05-16, the Members have requested NCPA staff to prepare this Second Phase Agreement to continue project development activities; and WHEREAS, in accordance with that certain Facilities Agreement executed Page I of 20 by and bet-ween NCPA and its members dated September 22, 1993, a Project's Second Phase consists of work to be performed after NCPA completes preliminary investigations and surveys regarding a project proposal, and before a Third Phase Agreement becomes effective as to the Project's financing, construction, operation, maintenance, and the allocation of rights to a Project's output; and WHEREAS, to advance the due diligence investigation of the proposed New Lodi Project, pursue related environmental studies, perform project planning and design, provide working capital for project development and finance, and to engage necessary expert professionals services including those of NCPA staff, the NCPA Commission and the Project Members hereby declare the New Lodi Project to be a "NCPA Project" as per the terms of the Facilities Agreement, and hereby enter into this Second Phase Agreement; and WHEREAS, MID wishes to participate in the project development by assuming a fifty (50) megawatt share of the project, and to assume its prorated share of the costs incurred under tis Second Phase Agreement. WHEREAS, to proceed expeditiously and efficiently under the Members' direction regarding a Project, NCPA's duties under this Second Phase Agreement will be performed sequentially in parts as Phase 2A and Phase 2B, with Phase 2A consisting of the activities listed in Exhibit A attached to herein at accost not to exceed $3,900,000; and WHEREAS, initiation of the Phase 2B activities consisting of all remaining Second Phase activities contemplated hereunder, including but not limited to the purchase of air pollution emission credits as required, additional engineering and permitting costs, at an estimated additional cost of $10,100,000, will not be undertaken by NCPA except upon MID's and the Project Members' further authorization pursuant to the terms of this Agreement. Page 2 of 20 NOW THEREFORE, the parties hereto agree as follows: Section 1. Obligations - Percentage Participation - Collections and Accounting. A. NCPA, on behalf of itself, the Project Members and MID, shall act as a lead or responsible agency for the purpose of environmental review of the Project, and shall advance due diligence, perform financial planning, prepare design and construction documents, investigate and appraise necessary land and land rights, employ experts, permit the Project, negotiate the terms and conditions of draft power purchase agreements with members and outside entities as necessary, secure vital equipment and emissions credits, develop a Project Development Agreement with MID, and develop a third phase agreement satisfactory to NCPA and the Project Members as set forth in subparagraph B and C below. B. NCPA shall perform services defined herein as Phase 2A which shall include activities identified in Exhibit A attached herein at a cost not to exceed $3,900,000. C. Upon MID's and the Project Members authorization pursuant to Section 3 to proceed to Phase 2B, NCPA shall conduct such additional work as may be necessary to secure the Approval For Certification from the California Energy Commissions Such work to be performed at an estimated cost of ten million one hundred thousand dollars ($10,100,000). D. MID and each Project Member hereby agrees to continue to pay or advance to NCPA, from its electric department revenues only or, in the case of BART, its tariffs, fees or other sources of revenue provided that such sources shall not include any sums derived from sources the use of which is limited by law to expenditures other than operating expenses, its percentage share of the Page 3 of 20 costs authorized by Project Members in accordance with this Agreement in connection with its participation in the Project. MID and each Project Member further agrees that it will fix the rates and charges for services provided by its electric department, or in the case of BART, its general revenues, so that it will at all times have sufficient money in its department revenue funds to meet this obligation. The Project Participation Percentage share of MID and each Project Member is initially established according to the table entitled "New Lodi Project Participation Percentages" attached as Appendix A to this Agreement. E. The Project Participation Percentage share of MID and each Project Member shall be revised proportionately if less than the full 255 megawatt capacity of the plant is subscribed. At present, only 166 megawatts are subscribed and the Project Participation Percentage shares, and subsequently the participant costs, have therefore increased. These revised participant costs are outlined in attachment A. The Project Participation Percentage share of MID and each Project Member shall be revised proportionately if and when any Project Member withdraws in whole or in part. Any Project Member or MID wholly withdrawing shall thereupon cease to be a Project Member for all purposes except for purposes of Section 4. F. NCPA shall demand from MID and each Project Member its share of its financial commitment on a concurrent basis. Any part of such demand by NCPA which remains unpaid for sixty days after its billing date shall bear interest from such sixtieth day at the prime rate of the Bank of America then in effect computed on a daily basis plus two percent until paid. Interest so earned shall not change MID or any Project Member's Participation Percentage, and shall become a part of the working capital account defined below. The funds advanced according to this Section I shall be used to establish a Page 4 of 20 working capital fund for payments and obligations under this agreement.. Nothing in this Section I shall be construed to prohibit MID or a Project Member from satisfying its financial commitments from unencumbered funds otherwise on deposit at NCPA. Section 2. Limited Rights to Participate in Final Implementation and Financing. (a) Discretion Disposition of Power. In consideration of the payments provided for in Section I hereof, MID and each Project Member who has not wholly withdrawn, or who is not then in default, shall have an exclusive option to enter into a Third Phase Agreement (or a Power Purchase Contract) for all or a part of its Participation percentage of all power made available to NCPA from the Projects on a take or pay basis consistent with a NCPA Third Phase Agreement as contemplated by the Facilities Agreement, or in the case of MID, a project development agreement. (b) Increase in Purchases. MID or a Project Member can, at the time of entering into a project development agreement or the Third Phase Agreement, purchase more than its Participation Percentage of a Projects' power if additional power is available by reason of the non-participation in the project development agreement or in the Third Phase Agreement by MID or one or more Project Members. Such excess power shall be reallocated among those who do participate in the same proportion as their shares bear to the total shares of those who do partidpate. If MID or the Project Members so entitled do not wish to contract for all the excess power, such remaining excess shall be disposed of as agreed to by MID and the Project Members. (c) Exercise and Effect of Taking Less Than Full Entitlement. MID and the Project Members shall establish the terms and provisions of an agreement for rights to capacity and energy from the Project prior to the expiration of this Page 5 of 20 Agreement, to be known as the Third Phase Agreement, or, in the case of MID, a project development agreement. The Project Members and MID shall also establish the date by which the Third Phase Agreement or a project development agreement must be executed by MID and the Project Members and delivered to NCPA if they are to participate in the purchase of power from the Projects. Failure to execute the Third Phase Agreement or the project development agreement for any of its total participation share and to deliver it to NCPA by that date or 30 days after MID's or Project Member receipt, whichever is later, will be an irrevocable decision on the part of MID or that Project Member not to purchase any such power or otherwise participate in the Projects. Execution and delivery of the Third Phase Agreement for less than its original total Participation Percentage, and delivery of that Project Member executed agreement to NCPA by the date established or 30 days after Project Member's receipt, whichever is later, will likewise be an irrevocable decision on the part of that Project Member not to purchase any such power in excess of the share set forth in its delivered agreement. Supplemental agreements or other agreements will be entered into for the excess or surplus power. The procedure for processing supplemental agreements shall be consistent with those prescribed immediately above in this subsection (c) for making purchases of power. Failure to return an executed Third Phase Agreement or a project development agreement for any additional power within the prescribed period is an irrevocable decision not to purchase such additional power. MID or the Project Member making any herein defined irrevocable decision not to purchase all of its original share of power shall be foreclosed from receiving, and shall be relieved of further burdens related to, power which it has declined to purchase or further expense relative to the fu~:ure development of the Projects. Page 6 of 20 Section 3. Member Direction and Review. With respect to this section 3 below, MID will be considered a Project Member. NCPA shall comply with all lawful directions of the Project Members with respect to this Agreement, while not stayed or nullified, to the fullest extent authorized by law. Actions of Project Members, including giving directions to NCPA, will be taken only at meetings of authorized representatives of Project Members duly called and held pursuant to the Ralph M. Brown Act. Ordinarily, voting by representatives of Project Members will be on a one member/one vote basis, with a majority vote required for action; however, upon request of a Project Member representative, the voting on an issue will be by percentage participation with a 65% or more favorable vote necessary to carry the action. Any Project Member may veto any authorization or approval of the Commission relating to the Project that was not taken by a 65% or greater Project Participation Vote within 10 days following the mailing of notice of such Commission action, by delivering return notice of veto to NCPA, unless at a meeting of the Commission called for the purpose of considering the veto held within 30 days after the delivery of such written notice of veto, the Commissioners representing the Project Members having a combined Project Participation Percentage of at least 65% at such time shall vote to override the veto. Section 4. Conditional Repayment to Project Members. With respect to this section below, MID will be considered a Project Member. All payments and advances made heretofore, and those hereafter made pursuant to Section I of this Agreement, excluding interest paid on delinquent Page 7 of 20 payments, shall be repaid to each of the entities making such payments and advances pursuant to this Agreement out of the proceeds of the first issuance of the Project bonds which can economically provide therefor, or as and when there are sufficient funds available from partial sale of bonds, if bonds, notes, or other evidences of indebtedness are issued to support the Project. Such reimbursements shall be made within 60 days following the sale of any Project bonds and shall include interest computed monthly at a rate equivalent to the end of the month reference rate of the Bank of America. Any interest due under Section 1 of this Agreement and unpaid shall be deducted from the repayment. If NCPA determines to complete the Project, but is not successful in obtaining all necessary approvals and financing therefor, there shall be no reimbursement except out of unused Project funds including those then in the capital fund, along with all other receipts to which NCPA is entitled in connection with the Project. Any air pollution emission credits (ERCs) purchased as authorized by Section lC but not utilized either because the project is not successful in obtaining all necessary financing or government approvals or as may be in excess of ERCs required, shall be re-sold by NCPA and the proceeds distributed to the Project Members. This Section 4 shall survive the termination of this Agreement and execution of a Third Phase Agreement. Section 5. Term. With respect to this section below, MID will be considered a Project Member. This Agreement shall take effect as of the next calendar day after formal approval by the governing bodies of Project Members holding 95% of the initial percentage participations set out in Appendix A of this Agreement, or upon such later date as may be determined by Project Members after an adjustment in the Page 8 of 20 Participation Percentages to provide for an adequate subscription for the financial commitment required by Section 6 of this Agreement. This Agreement shall be superseded by the project development agreement and the third Phase Agreement except that Section 4 shall remain in effect. Section 6. Financial Commitments. With respect to this section below, MID will be considered a Project Member. To fund the Project Phase 2A activities as per Exhibit A each Project Member agrees to a total financial commitment for its respective percentage participation of a total of three million and nine hundred thousand ($3,900,000) principal amount plus interest thereon, if any, including payments and advances heretofore made, as authorized and approved by the Project Members. Upon completion of Phase 2A activities, or at any time deemed appropriate, by a favorable vote as provided in Section 3 of this Agreement, the Project Members may authorize the financial commitment to support the completion of the Project Phase 2B activities, as referenced in Section lC; subject to the provisions of Section 8. Section 7. Assignment. With respect to this section below, MID will be considered a Project Member. (a) Notwithstanding any other provision of this Agreement, if NCPA requires funds to carry out the terms of this Agreement prior to the receipt of adequate funds from the Project Members, NCPA may, upon approval of the Project Members, assign its right to receive any payments under this Agreement to a bank or other financial institution to secure a by NCPA or in exchange for an Page 9 of 20 amount of money equal to the then present value of those payments as determined by NCPA. Project Members hereby consent to such assignment and upon notification in writing by NCPA, each such Project Member will make each such assigned payment directly to the assignee. The assignee shall not be liable to Project Members for the amounts as assigned, and NCPA shall use the proceeds of such borrowing or assignment for the purposes provided in this Agreement. If an assignment is made under this section, then upon the failure of any Project Member to make any payment assigned, the percentage participation of each non-defaulting Project Member shall be automatically increased for the term of the assignment pro rata with that of the other non-defaulting Project Members, and the defaulting Project Member's Percentage Participation shall (but only for purposes of computing the respective Percentage Participation of the non-defaulting Project Members) be reduced correspondingly; provided that the sum of such increase for any non-defaulting Project Member shall not exceed without written consent of the non-defaulting Project Members an accumulated maximum of 25% non-defaulting Project Member's original Participation Percentage. If the Project Member fails or refuses to pay any amounts due to NCPA, the fact that other Project Members increase their obligations to make such payments shall not relieve the defaulting Project Member of its liability for such payments and any Project Member increasing such obligation shall have a right of recovery from the defaulting Project Member to the extent of such respective increase. In addition, NCPA may terminate the provisions of this Agreement insofar as they entitle the defaulting Project Member to its Percentage Participation of Project output. Page 10 of 20 In addition, NCPA shall have all rights and remedies under law or equity to compel payment of funds owed to NCPA by Project Members (b) For the purposes of such assignment, NCPA may fix and schedule the total amount payable by each Project Member into any number of semi-annual payments, not less than four nor to exceed ten, and the dates on which such payments will be made, and each Project Member agrees to abide by such schedule. NCPA shall provide a reasonable opportunity for any Project Member to prepay its total obligation. (c) After such an assignment is made, no Project Member may avoid the obligation so assigned by withdrawal pursuant to section 8 hereof or otherwise. (d) If NCPA makes an assignment pursuant to this section, it may transfer any or all of its rights and duties to a nonprofit corporation formed to act on behalf of NCPA if the voting power of the members of such corporation is distributed in the same manner as that provided in sections 3 and 9 of this Agreement. Section 8. Withdrawal From Further Participation. With respect to this section below, MID will be considered a Project Member. If at any time following the execution of this Agreement, there is an increase in the financial commitment beyond that contemplated in Section 6, Project Members may partially withdraw, i.e., from participation in the increase, or may withdraw wholly from the New Lodi Project. Any withdrawal shall be subject to honoring any commitments made by them or on their behalf pursuant to authorization of this Agreement. To withdraw, such Project Members shall give NCPA written notice of such withdrawal, in part or in whole, within thirty (30) days of the receipt of the notice by them of the increase. Not withstanding Page 11 of 20 the above, a Project Member may withdraw following Project Members authorization to proceed with Phase IIB activities. In this event the Project Members may vote to consider modifications to this Agreement. Section 9. Voting Rights and Duration. With respect to this section below, MID will be considered a Project Member. A Project Member is participating for purposes of Section 3 percentage voting until it completely withdraws, but a partial withdrawal will result in a reduction in its percentage participation share to the ratio of its payments after such withdrawal to the total amount of payments by all Project Members after such withdrawal. When the project development agreement or the Third Phase Agreement is executed, or revised, revised Participation Percentages for voting shall be established by dividing the amount of power agreed to be purchased by each Project Member by the total amount of power to be purchased by all Project Members Section 10. Quorum Defined. With respect to this section below, MID will be considered a Project Member. The presence of either a majority of the Project Members, or of Project Members then having a combined Participation Percentage of at least 65%, shall constitute a quorum for the purpose of action. Section 11. Indemnification. With respect to this section below, MID will be considered a Project Member. Page 12 of 20 Each Project Member agrees to indemnify, defend and hold harmless NCPA and its members, including their respective governing officials, officers, agents, and employees, from and against any and all claims, suits, losses, costs, damages, expenses and liability of any kind or nature, including, without limitation, reasonable attorneys' fees (Claims) to the extent caused by any breach of contract, negligence, active or passive, gross negligence or willful misconduct of the Project Members, their officers, employees, subcontractors or agents, to the maximum extent permitted by law, but only as to Claims related to this Agreement. Section 12. Default and Remedies With respect to this section below, MID will be considered a Project Member. (a) The failure of any Participating Member to meet its financial commitments as required by this Agreement shall constitute a default. In the event of such a default, NCPA shall deliver a ten (10) day notice to cure the default. If such default is not cured within the time required NCPA shall pursue all rights, under law and equity, to collect all sums due. (b) Any action brought to enforce any provision of this Agreement shall be filed in the County of Sacramento, subject to the binding arbitration provision set forth below. (C) ANY DISPUTE REGARDING THE PERFORMANCE OF THIS AGREEMENT, OR THE LACK THEREOF, SHALL BE RESOLVED THROUGH BINDING ARBITRATION CONDUCTED BY A MUTUALLY AGREEABLE ARBITRATOR, OR IF NO AGREEMENT CAN BE REACHED, THEN THROUGH THE AUSPICES OF THE AMERICAN ARBITRATION ASSOCIATION. THE PARTIES HERETO UNDERSTAND THAT BY Page 13 of 20 AGREEING TO THIS PROVISION THEY ARE SURRENDERING ANY JUDICIAL REMEDIES THAT MAY OTHERWISE BE AVAILABLE. NCPA PROJECT MEMBER (d) Should any actions be necessary to enforce any provision of this Agreement the prevailing party shall be entitled to the recovery of costs and reasonable attorney fees. Sectionl3. Notices With respect to this section below, MID will be considered a Project Member. Any notice, demand or request required or authorized by this Agreement to be given to any party shall be in writing and shall either be personally delivered to Participant Members' designated representative and the Secretary of NCPA or transmitted to the party's official mailing address. Section 14. Counterparts With respect to this section below, MID will be considered a Project Member. This Agreement may be executed in any number of counterparts, and each executed counterpart shall have the same force and effect as the Original Instrument as if all the signatories to all of the counterparts had signed the same instrument. Page 14 of 20 IN WITNESS WHEREOF, each Project Member has executed this Agreement with the approval of its governing body, and NCPA has authorized this Agreement in accordance with the authorization of its Commission. NORTHERN CALIFORNIA POWER AGENCY Approved as to Legal Form By: Date: By: CITY OF ALAMEDA By:_ Date: By:. BAY AREA RAPID TRANSIT By: Date: By:. CITY OF BIGGS By: Date: By:. Page 15 of 20 CITY OF GRIDLEY By: By:. Date: CITY OF HEALDSBURG By: By:. Date: LASSEN MUNICIPAL UTILITY DISTRICT By:_ By: Date: CITY OF LODI By: By: Date: CITY OF LOMPOC By: By:. Date: Page 16 of 20 MODESTO IRRIGATION DISTRICT By: By: Date: CITY OF PALO ALTO By: By:. Date: PLACER COUNTY WATER DISTRICT By: By: Date: PLUMAS-SIERRA RURAL ELECTRIC COOPERATIVE By: By: Date: PORT OF OAKLAND By: By: Date: Page 17 of 20 CITY OF REDDING By: By: Date: CITY OF ROSEVILLE By:. By: Date: CITY OF SANTA CLARA By: By:. Date: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By: By: Date: TURLOCK IRRIGATION DISTRICT By:. By: Date: Page 18 of 20 CITY OF UKIAH By: Date: By:_ Page 19 of 20 APPENDIX A PARTICIPATING MEMBER PERCENTAGE NEW LODI Project MEMBER % Total $ MW's Alameda 0i00% I $ 0.0 $ BART 9:04% 352~410 15,0 $ Biggs 0.60% 23,494 1.0 $ Gridtey 1,20% 46,988 2.0 $ Healsburg 1,81% 70,482 3.0 $ Lassen 3;01% 117,470 5.0 $ Lodi 12.05% 469~880 20.0 $ Lompoc 3;01% 117,470 5~0 $ MID 30.12% 1,174i699 50.0 Palo Alto 0.00% $ 0.0 Placer CWD 0.00% $ 0.0 $ Plumas Sierra 1.20% 46,988 2.0 Port of Oakland 0,00% $ 0.0 $ Redding 6.02% 234,940 10.0 Roseville 0,00% $ 0.0 $ Santa Clara 30.12% 1,174~699 50.0 Truckee-Donner 0.00% $ 0.0 Turlock 0.00% $ 0.0 $ Ukiah 1.81% 70,482 3.0 Unidentified Party 0.00% $ 0.0 $ TOTAL 100.00% 3,900,000 166.0 Page 20 of 20 :::::::::::::::::::::: IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlIIIllIIllll 2 4 5 6 7 ITEM NO: tlc MEETING DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: ELECTRIC FACILITIES ASSESSMENT PRESENTATION The Ukiah Electric system provides electric utility services to all residents and commercial customers within the Ukiah City limits. Ukiah has experienced recent load growth and anticipates additional new customer loads in future years. The City Manager requested the Interim Public Utilities Director perform an assessment of the electric utility infrastructure and develop a Capital Projects Plan for improvements to the Electric system that will support high electric service reliability and provide capacity for future growth needs. The Electric System Assessment (Attachment #1) is intended to provide the City Council, City Manager, and the Public Utilities Director a roadmap for improvements to the electric system and recommendations for maintenance programs. A series of Capital Budget items were generated from this assessment and are summarized in Attachment #2. The Interim Public Utilities Director will present the results of the Electric System Assessment and answer questions from Council. RECOMMENDED ACTION: Receive report on the Electric System Assessment. ALTERNATIVE COUNCIL OPTIONS: NA Requested by: Prepared by: Coordinated with: Attachments: Jeff Gould, Interim Public Utilities Director Candace Horsley, City Manager Attachment #1 Electric System Assessment Report Attachment #2 Electric Capital Improvements Summary Attachment #3 Electric O&M New Budqet Items Approved: ~..~-~'~¥~.~ Candace Horsley, Cit~Manager City of Ukiah Electric Department System Assessment Attachment 1 Introduction The City of Ukiah Electric Utility provides electric utility services to residents and businesses in the City. During the past year the Electric Department has experienced significant staff turnover, and an Interim Public Utilities Director was hired until a permanent Director is recruited. During this interim period, the City Manager requested the Interim Director perform an assessment of the electric utility infrastructure. The System Assessment considers the electric system loads being served, capacity, age and condition of the substation equipment, and condition and limitations of the distribution system infrastructure. This report identifies high priority system improvements and operating practices needed in the next few years to maintain/improve the reliability and safety of the electric system. The Electric System Assessment is intended to provide the City Manager and the Public Utilities Director a roadmap for improvements to the electric system. Capital Budget items will be generated from this assessment. The assessment has been completed with valuable support from several Ukiah staff members; Elizabeth Kirkley, Electrical Engineer, and Colin Murphey, Electric Supervisor. Both Elizabeth and Colin readily shared their knowledge of and insights regarding the electric system. They provided tours of the distribution system and Gobbi Substation, discussed areas of potential concern, and identified priorities for needed improvements. The Interim Public Utilities Director drove along much of the electric distribution system to observe the condition of lines and equipment, reviewed electric maps of the circuit layouts, and reviewed records of recent substation reports and equipment tests to develop an understanding of the Ukiah Electric system. The System Assessment is formatted in several sections: 1. General description 2. Transmission System 3. Gobbi Substation 4. Distribution System 5. Operation and Maintenance considerations 6. Attachment - Capital Projects summary spreadsheet with priorities and estimated costs suggested Recommendations are included in each section of the report. 1. General Description The Ukiah Electric System is connected to the PG&E transmission substation located on Babcock Lane east of Hwy 101. The PG&E substation is fed from dual 115 kV transmission lines. The City owns the radial 115 kV transmission line between the PG&E Substation and the Gobbi Substation. Gobbi Substation is the only substation serving the City of Ukiah. It contains two 115/12 kV - 20/27/33/37 MVA transformers which connect to five 12 kV electric feeders (Gobbi, Cherry, Orchard, Perkins, and Low Gap). The Ukiah peak electric demand for 2006 was 35.98 MW, an increase of 14% from the 2005 peak (31.52 MW). The system Load Factor for 2005 was 43.08%. Ukiah is continuing to add new electric loads during 2006 including the new hotel, ongoing residential and commercial construction, future annexations, and additions to the Waste Water Treatment Plant. No estimate of the planned growth has been developed at this time, however, a load forecast including planned and possible load additions should be a near term priority to assist in decisions regarding system capacity improvements. 2. Transmission System The Gobbi Substation is connected to the PG&E substation located east of Gobbi Substation by a radial 115 kV wood pole transmission line approximately 2600 feet long fed from the PG&E substation east of Hwy 101. There is no backup transmission line serving Ukiah. The transmission line conductor is 715.5 MCM Aluminum. Considering the load growth anticipated over the next 5 years, the transmission line capacity is adequate. Recommendation: To insure ongoing reliability, the transmission line poles should be inspected visually and by infrared camera annually. Poles should be inspected by a pole inspection service company every five years, including bore and sound tests and pole restoration treatment applied as necessary. 3. Gobbi Substation Gobbi Substation contains two 20/27/33/37 MVA 115/12 kV transformers. Both transformers were installed in 1983 and are now 23 years old. Normal design life for a substation transformer is about 35 years although many substation transformers last longer. Oil tests were recently performed on both transformers indicating they are in relatively good condition. Transformer #2 experienced a buss fault during the summer of 2006 which caused damage to the 12 kV transformer bushings. While the repair contractor was inspecting the damage, they discovered the transformer high voltage bushings are of a type that has a history of premature failure (the same type bushings were used on both Gobbi Substation transformers). New bushings were ordered for both transformers and have been installed and tested. The final test report indicates the transformers are in good condition. The Gobbi Substation is configured such that either transformer can feed all five electric main feeders while the second transformer acts as a backup (Ukiah's normal practice). However, with the current substation arrangement, the feeders cannot be equally split between both substation transformers due to the buswork configuration. When the 12 kV bus tie switch is opened, it connects four of the five feeders to Transformer #1, and only one feeder (Gobbi Circuit) to Transformer #2. The loads cannot be split equally between the two transformers which creates an operating limitation. The configuration design should be addressed to improve operating flexibility and system reliability at Gobbi Substation. With Ukiah's system peak demand of 36 MW this past summer, the substation transformers are reaching their practical loading limits. If the buss connections are modified to split the feeders equally between transformers, the transformer shared normal loads would stay within the rated capacity of each transformer; however, in the event of an outage on one substation transformer (as occurred this past summer) the remaining transformer must carry the entire Ukiah load. The 2006 Ukiah system peak demand exceeded the maximum rating of a single Gobbi Substation transformer. Generally a substation transformer in good condition can briefly handle such an overload; however, it is not good engineering practice to operate the transformers above their maximum ratings (relying on the transformer overload capability) long- term. Extended overloading of substation transformers accelerates their aging and could result in premature failure. With the continued load growth anticipated in Ukiah, this overload problem will become an even greater concern. Recommendations: Ukiah should take steps to upgrade their substation capacity as soon as possible. Since the Gobbi Substation is the only substation serving the City of Ukiah, it is recommended the feasibility of the following three alternatives be studied: 1) Remove the existing Gobbi Substation transformers and replace them with larger units to handle future loads. 2) Install a third transformer at Gobbi Substation. This may be the lowest cost alternative which would preserve the existing transformer investment, provide a third transformer for backup, and allow load to be easily shared among the transformers. 3 3) Add a new substation at a second delivery point on the Ukiah electric system (further north in Ukiah) to provide increased capacity, improve system reliability. This option would also establish a backup substation site with an additional transmission line connection to the PG&E system. Continuing to place "all the eggs in one basket" (Gobbi Substation) is not the best utility industry practice. Ukiah could experience an extended total City outage due to the loss of Gobbi Substation, possibly lasting days. It is common practice to serve communities as large as Ukiah with multiple substations in order to assure the highest level of reliability. A northern location would also better serve Ukiah's hydroelectric plant with a direct connection to the transmission grid, providing a reduction in line losses resulting in an increase in actual MW delivered as well as eliminate the problems associated with the use of a distribution line serving customers. While alternatives #1 and #2 provide increased capacity, they do not provide a second delivery point. Ukiah should consider the cost benefit of each alternative. The City has budgeted for consulting assistance to design upgrades at the Gobbi Substation in this year's budget. This is a timely opportunity to consider a broader power supply approach for Ukiah. It is recommended the City hire a consultant to explore the feasibility, economics, and operating benefits of adding a new substation as well as replacing/upgrading the existing Gobbi Substation infrastructure. If adding a second substation is feasible and affordable, it would provide additional operating flexibility and capacity, and offer significant long-term benefits for Ukiah. An RFP for consultant services has been issued requesting proposals to evaluate the condition of the existing substation (review of transformers, circuit breakers, buss work, etc.), and to study the feasibility/costs of the three alternatives to increase capacity discussed above. The consultant will bring the study results to City Council and make recommendations for Gobbi Substation equipment improvements. Gobbi Substation has a spare feeder breaker bay available to allow adding one more main feeder. This feeder breaker addition should be included as part of the reconstruction project to provide more reliability and to allow splitting up loads of the more heavily loaded feeders. The consultant will also present the cost/benefits of the three alternatives to increase Ukiah's substation capacity. Depending upon which capacity solution is deemed most appropriate by the Council, the consultant should then proceed with design of the refurbishment/upgrade project for Gobbi Substation. Since the addition of a new substation (if selected) is a longer term project that will include acquiring a substation site, negotiating transmission connections, and designing the substation, this work is not included in the current consulting project. 4 Substation Maintenance Gobbi Substation is a critical element in the Ukiah electric system. In the event of a major equipment failure at Gobbi Substation, the entire Ukiah electric system could be without power for a period of time. Consequently, the maintenance of Gobbi Substation is a critical issue to minimize the likelihood of an extended outage. The routine maintenance program is being revised to address the maintenance and inspection needs of Gobbi Substation and should be a high priority for electric department staff. Meterinq and SCADA Equipment Installation Gobbi Substation metering information is currently recorded on paper charts which are kept on file at the substation. These paper records are difficult to review and provide limited load information. Records of substation alarms and abnormal circuit operations are only gathered by visiting the substation when an outage or incident has occurred. There is no remote monitoring capability for the substation. Most municipal utilities have installed Supervisory Control and Data Acquisition (SCADA) systems. The SCADA system monitors the condition and status of the substation equipment, provides an early warning for many equipment problems, and immediately sends alarms for substation equipment failures or feeder outages. SCADA also provides historical load data to support effective operational management of feeder and substation loads. SCADA also provides the ability to operate substation equipment from the dispatch office to more quickly restore power since a lineman no longer needs to drive to the substation to open or close a feeder breaker. Recommendation: Install a Iow-cost SCADA system at Gobbi Substation as part of the reconstruction/upgrade efforts and provide remote monitoring and control capabilities at the Operations and/or Administration buildings. As time permits, the SCADA can be connected to the Hydro Plant for monitoring purposes. 4. Distribution System - Main Feeders Ukiah has five electric distribution main feeders serving the City. The five distribution feeders extend to various parts of Ukiah. Each feeder normally feeds a specific area of town. Typical utility practice is to size each feeder large enough to provide a backup connection to one or more adjacent feeders. In the event of a lengthy outage, most affected customers can be transferred to the backup circuit(s), restoring their power fairly quickly. Ukiah's current main feeder system configuration and wire sizing provides limited backup capability in several areas of town. Some portions of each main feeder can be connected to a second circuit; however, as indicated in the chart below, some areas have limited backup capability. In other areas of the City many of the electric lines are radial and do not have any backup circuit in case of an extended outage. The chart below summarizes the current situation for each main feeder in Ukiah. Gobbi Substation Feeders Feeder Area Peak Backup Name Served Load* Circuit(s) (amps) Cherry South of E. Gobbi 400+ Very Limited - Airport Business from Gobbi Park Ckt Gobbi West of State St. 400+ Partial - from Cherry and Perkins Ckts Low Gap North of Standley &267 Orchard and West of State St. Gobbi Ckts Orchard Along Orchard and 285 Limited - from North of Low Gap Low Gap Ckt Rd. Perkins East of State St. 400+ between E. Gobbi and Low Gap Rd. Partial - from Gobbi and Cherry Ckts *Note: Normal Feeder Circuit Capacity is 525 amps. One area of particular concern is the Airport Business Park located south of Talmage Rd. This area is fed from a single circuit (Cherry Circuit) which is mainly underground. In the event of an underground cable failure there is no backup method available to feed the business park. The entire business park will experience an outage until the damaged cable is located and repaired. Depending upon the circumstances, the outage could last as long as ten to 12 hours. This is a considerable outage considering the circuit serves three hotels, several major retailers and the Wastewater Treatment Plant. Distribution System Recommendations: The following projects are recommended to improve the circuit backup capabilities in several parts of the electric system over the next year: 1. Re-conductor the Cherry Circuit along the east side of the airport to provide adequate capacity for the Wastewater Treatment Plant and to support a loop feed into the Airport Business Park area. Extend the 397 MCM Gobbi Circuit south on Dora and east on Washington to interconnect with the Cherry Circuit on the east side of the Airport. Reconductor the 4/0 portions the Gobbi circuit to 397MCM (south of Observatory Rd). Install a 750 MCM underground connection from the Cherry Circuit east of the Airport to provide a looped underground circuit in the Airport Business Park and tie with the new backup extension from the Gobbi Circuit. Note: Items #1, #2, and #3 will provide adequate backup capacity for the Airport Business Park and the increasing loads at the Waste Water Treatment Plant. These projects should be completed by contractors as soon as possible. Install underground circuit extensions into the old Low Gap Substation site and provide backup ties between the Low Gap, Orchard, and Gobbi circuits to improve feeder circuit backup capability. Note: Once this project is completed, the existing unused tall substation steel infrastructure can be removed improving neighborhood aesthetics at the Low Gap site. There would also be an area available for storage of City equipment or other City uses. Develop a program to reconfigure several existing underground electric high voltage vaults with fewer circuits and possibly implement pad mounted switching to eliminate/reduce the existing safety hazard and reliability concern of the existing vault system. The vaults are very congested and contain multiple circuits. If a fault occurs in a vault it could damage cables on several circuits. The close quarters in the vaults are a serious hazard to electric personnel. This should be a high priority to modify the existing vaults and reduce personnel exposure. Other projects are identified in the Capital Improvement Plan to improve system reliability throughout the electric system. These projects are identified with priority levels and will be proposed in the Capital Budget for future years. Due to the small size of the Ukiah electric operations/construction staff, many of the proposed distribution projects should be bid to contractors to allow the City electric staff to focus on maintenance projects and new customer line extension projects. Large electric capital projects are time consuming and difficult to complete when maintenance tasks are demanding staff time. 5. Operations and Maintenance Considerations 1. Pole Replacement Program Ukiah has a large number of wood power poles throughout the electric system. As the poles age, they become deteriorated and lose physical strength or experience rotting deterioration from wet soil conditions. Several years ago about 50% of the Ukiah electric poles were inspected by a contractor and over 160 poles were identified that needed to be repaired or replaced. If left without attention the poles can fall over, placing the general public at risk of injury or causing damage to 7 property or injuring electric crew members attempting to climb the poles. The falling poles usually cause power outages and required extensive crew time to replace. Recommendation: Ukiah should hire a qualified inspection contractor to perform inspections on the remaining un-inspected wood poles. A construction contractor should then be hired to begin a long term pole replacement project over the next five to seven years. A budget item is being proposed to undertake this program. 2. Cable Replacement Program The Ukiah Electric system contains miles of underground high voltage cable. Two types of cable are in service; the older polyethylene cable and the newer EPR rubber type cable. The older polyethylene cable is reaching the end of its life expectancy (typically 25 to 30 years). The EPR rubber type cables do not seem to have a history of significant aging failures and can remain in service longer. As the polyethylene cable continues to age, City customers will be vulnerable to an increasing number of long duration electric power outages while the cables are removed and new cable installed. Recommendation: It is prudent to implement a cable replacement program on a planned basis for the old obsolete cables before they become a serious outage concern. This cable replacement program should be budgeted and contractors hired to replace a portion of the old cable each year (perhaps one or two miles per year). Old cables can be identified and prioritized for replacement by City staff. 3. Meter Testing and Replacement Project The Ukiah Electric metering equipment used to meter residential and commercial meters is becoming very old and out of date. At this time all meters on the City system are mechanical meters which become less accurate and fail over time. The older meters do not accurately measure all the energy consumed by customers and can create a significant revenue loss for the Electric Department. New electronic meters are much more accurate over their lifetime and also collect important data about customer energy usage, customer peak demand, outage and abnormal operations events, and other historical data advantageous to operating the electric system. The City has budgeted for a pilot program to install electronic meters and incorporate a remote reading module to allow meters to be read remotely in locations that are difficult for meter reader access. The City intends to begin implementing the electronic meters this year. Recommendation: Since large commercial customers typically have much higher energy use, the commercial customer meters should be replaced with electronic meters over the next three years. Residential meters should be replaced on a longer term basis (5 to 7 years) so that all meters are less than 10 years old. Once the new electric meters are installed, they should be tested and repaired/replaced on a ten year rolling cycle (10% of meters tested each year). Since electronic meters require programming and computerized capture of the data, the City should consider limiting the meter brands Ukiah uses to no more than two vendors to minimize training and programming complexities, and to use only one or two software programs for all meters. It is recommended that a competitive bidding process to evaluate vendors based upon meter price, meter features and capabilities, software provided, and vendor support. The successful vendor should be used for a long term meter program to minimize parts and software expenses and to allow staff training on a single product line. Over time, a second vendor may be considered if needed. 4. Electric System Engineering Analysis Model The Ukiah Electric Department owns a software program (Power Tools) that models the electric system and provides the analytical tools to conduct system planning studies, sectionalizing studies, and supports budget and operational planning for the utility. Before the staff can begin using Power Tools, the City must develop the database for the software. Due to the lack of sufficient Ukiah electrical engineering staff to complete this time consuming effort, it is recommended that a consultant be hired to perform the following work: a. Develop the circuit model database for the Power Tools software. b. Run a base case model calculating actual voltage and loading conditions on the Ukiah electric feeder system. c. Perform a Sectionalizing Study recommending proper fusing and protective equipment on the circuits to minimize outage exposure for customers. d. Make recommendations for system improvements to provide proper voltage and loading on all circuits and feeder backup connections. e. Install the database and analysis models on the Ukiah engineering computers to support future in-house analysis. f. Assist in importing the database on the GIS system to provide accurate operating maps and the database for the Computerized Maintenance Management System (CMMS). This one time consulting support, will allow City electrical engineering staff to perform most engineering analysis work without consulting support, and to maintain the GIS and CMMS systems effectively. 6. Capital Projects Summary The attached spreadsheet summarizes the Capital Projects identified with a cost estimate and brief summary of the project need. Projects are prioritized for budgetary purposes and reflect the reliability and capacity needs discussed in this report. AGENDA ITEM NO: 1 ld MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: WASTEWATER TREATMENT PLANT UPDATE AND DISCUSSION AND POSSIBLE ACTION ON COST REDUCTION ALTERNATIVES DISCUSSION The Wastewater Treatment Plant (WWTP) construction project is ongoing and making significant progress. Staff will present a multi-part presentation to update Council and seek direction on cost reduction alternatives. The presentation will consist of the following items: 1. Status update on the current construction activity, budget and schedule; 2. Review of the plant operational design 3. Review of letter from independent engineer regarding plant design and cost reductions; 4. Presentation of cost reduction items already implemented; and 5. Options for further cost reductions and potential impacts on plant operation and maintenance and regulatory compliance. Presentations will conclude with Council discussion and decisions regarding cost reductions. Continued on Page 2 RECOMMENDED ACTION: 1. Accept reports on VWVTP Improvement Project. 2. Provide guidance on Tier II and Tier III cost reduction items. ALTERNATIVE COUNCIL OPTIONS: 1. Accept and/or reject Tier II and/or Tier III cost reduction items. 2. Request additional information. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Jeff Gould, Interim Public Utilities Director Ann Burck, Project Engineer Candace Horsley, City Manager 1. WWTP Construction Progress Report 2. Letter from Mr. Frank Dryden, PE - related to design and cost review 3. Spreadsheet summary of cost reduction items already implemented 4. Spreadsheet of Level II and Level III cost reduction alternatives with summary discussion Approved:~:' \/~-~ ~"~, Candace Horsley, Cit~'~anager As background information staff is attaching the following: · WWTP Construction Progress Report · Letter from Mr. Frank Dryden, PE - related to design and cost review · Spreadsheet summary of cost reduction items already implemented · Spreadsheet of Level II and Level III cost reduction alternatives with summary discussion 1. Status update on the current construction activity, budget and schedule Michelle Leonard, P.E. (Harris & Associates), the VVVVTP Improvement Project Construction Manager, prepared a project summary update report, Attachment #1. The project is 23% complete and there are no cost over-runs. Currently, a savings of $887,278 has been realized through change orders generated as the result of an ongoing cost reduction program. The remaining change orders to be processed are expected to result in an additional savings of $600,000, for a total savings of $1.5 million. Milestone 1 was completed on schedule. Milestone 2, scheduled to be completed by July 30, 2007 is currently 1 month behind schedule. Milestone 3, scheduled to be completed by June 26, 2008 is projected to be completed 1 month ahead of schedule. Milestone 4, scheduled to be completed by June 27, 2009 is projected to be completed 1 month ahead of schedule. 2. Review of the plant operational design Influent Pumping. The existing influent pumping station does not have sufficient capacity and, unfortunately, is not easily expanded. In addition, there are several maintenance and safety issues with the pump station. A new influent pumping station will be constructed. To reliably accommodate 2025 flows, the hydraulic capacity of the new influent pump station will be 24.5 million gallons per day (MGD). Preliminary Treatment. Preliminary treatment removes grit, rags, and other large debris from the wastewater flow. This material causes excessive wear on downstream machinery, can plug pipes and channels, and can accumulate in digesters robbing them of expensive capacity. Preliminary treatment is marginal at the City's wastewater treatment plant. Instead of removing rags and other debris, grinders are used to cut this material up, but it has a nasty habit of reconstituting in downstream processes. The existing grit removal tanks have to be taken offline to manually clean out grit accumulation. As a result, they are emptied only once per year, which results in a lot of grit not being captured in these tanks. The grit settles in the primary clarifiers and eventually in the anaerobic digesters where it takes up expensive capacity there. The project includes a new preliminary treatment facility that will include self- cleaning bar screens to remove the material from the flow stream and aerated grit tanks to continuously remove grit before it settles in the primary clarifiers. Primary Treatment. There are two primary clarifiers at the plant. More primary clarifier capacity is needed to treat the 2025 anticipated peak flows. Instead of building new primary clarifiers, the four existing secondary clarifiers will be converted for use as primary clarifiers. The existing secondary clarifier configuration is a poor design for service as secondary clarifiers, but can relatively easily be retrofitted for service as primary clariflers. The most important retrofit is to provide dedicated sludge pumps for each clarifier. This will require the demolition of the existing flow splitting structure (which works very poorly), construction of an equipment gallery, and boring through the clarifier end walls into the sludge hoppers for the sludge suction piping. Four primary clarifiers will serve the City for many years to come. One of the primary clarifiers might be used as a gravity thickener during emergency times when the sludge thickening facility is offline. Secondary Treatment. "Secondary treatment" implies the use of a biological treatment step. The City has two fixed-film, biological reactors, the trickling filter and the biotower (referred to as Trickling Filters I and 2, respectively). The biological solids that convert soluble and colloidal organic material in the primary clarifier effluent to settleable biomass reside on the media in these reactors. Any biological process used in wastewater treatment must produce a biomass that is efficiently and effectively removed from the treated water. This requires a biomass that settles, compacts, and flocculates well. While trickling filters are very energy efficient at converting organic material to biomass, resulting in a very Iow soluble organic concentration, the solids that slough off trickling filters flocculate very poorly. Without flocculation, the individual bacterial cells are very hard to remove by gravity in secondary clarifiers because their settling velocity is so small. In fact, their settling velocity is so small that they can be considered non-settleable and no additional secondary clarifier capacity is going to remove them. As a result, the particulate organic concentration is high in trickling filter effluents even after settling. The trickling filtedsolids contact (TF/SC) process was invented for the primary purpose of enhancing the flocculation potential of the solids from trickling filters. Essentially, a solids contact tank is used downstream of the trickling filters. The effluent from the trickling filters is mixed with the solids returned from the secondary clarifiers and aerated for a short amount of time. This aeration step removes some of the residual 5-day biochemical oxygen demand, but it's main purpose is to get the solids to flocculate. The existing primary clarifiers will be converted to solids contact tanks. Since there is no cheaper concrete than the City already has in the ground, maximizing the use of existing structures makes good fiscal sense. Snails are a problem in trickling filters and their shells can end up, like grit, in the digesters. A snail trap will be constructed downstream of the trickling filters to save expensive digester capacity. Effluent from the solids contact tanks must flow to secondary clarifiers to remove the biomass from the treated water. Two new secondary clarifiers will be built. There are three important reasons to build the new clarifiers. First, as discussed above, the configuration of the existing secondary clarifiers is not optimum for any biological sludge but especially not TF/SC sludge. A density current sets up in all secondary clarifiers as a result of the settling of the biological solids. This density current pushes solids to the effluent end of the secondary clarifiers. In the existing secondary clarifiers, settled solids are transported against this current to sludge hoppers at the influent end of the tanks. This results in prolonged solids detention times in the secondary clarifiers and resuspension of solids as a result of the opposing action of the density current and the sludge collection flights. Second, to take advantage of the flocculation potential of the solids leaving the solids contact tanks, the secondary clarifiers must include a flocculation zone. This zone must be sized to give approximately 20 minutes of detention time at peak wet weather flows to allow the flocculation reaction to go to completion. Third, solids sloughed from trickling filters, even after being aerated in the solids contact tanks, have an anaerobic core. As a result, it is imperative that solids be removed from the clarifiers as soon as possible after they settle. This requires a rapid sludge removal mechanism. Solids Processing. As for many communities, solids disposal is becoming more and more difficult and expensive for the City. Currently, the City thickens primary and waste secondary sludges in the primary clarifiers and then pumped to the first stage anaerobic digester. This digester flows into the second stage anaerobic digester. The contents are either dewatered on a belt filter press (with the solids recycled to cap a landfill), or supernated to the sludge lagoons. The supernatant from the sludge lagoons is returned to the headworks of the plant. In the summer, settled material is dredged from the bottom of the sludge lagoons and air dried on sludge drying beds. This dried material is also recycled for landfill cap material. Co-thickening primary and biological sludges in the primary clariflers invariably leads to deteriorated primary clarifier performance, increasing the load to the trickling filters, and essentially robs volatile solids from the anaerobic digesters where they are converted to methane and heat. Moreover, with the current primary sludge collection and pumping arrangement, the City cannot thicken to what is optimum for anaerobic digesters. For this reason, two, new dissolved air flotation tanks will be constructed in which both primary and waste secondary sludges will be thickened. There are operations, maintenance, and safety issues associated with the existing anaerobic digesters that must be addressed. The digesters, built in 1958, will be rehabilitated with new, fixed covers, insulation, and mixers to reduce energy costs and increase their capacity. Advanced Wastewater Treatment. The AWT pumping station slab is settling from poor compaction during its construction. The settling has placed undue stress on the pipe supports and electrical connections. In addition, operational and maintenance problems exist with the backwash recovery basins and AWT chlorine contact basins. Both the backwash recovery basins and AWT chlorine contact basins are cracking because of settlement issues. The sludge withdrawal system for the backwash recovery basins is a problem because the withdrawal pipe is located on the same end as the infiuent pipe. Each time backwash water enters the basins, it washes the settled solids away from the sludge withdrawal pipe. Also, the basins lack a sump for settled solids to collect. The AWT pumping station slab will be replaced with a new slab that has properly compacted material below it. The backwash recovery and chlorine contact basins will be resealed and a new settled solids collection system be installed in the backwash recovery basins. 3. Review of letter from independent engineer regarding plant design and cost reductions Mr. Frank Dryden, P.E., who participated in the Value Engineering Review in 2004 and a Cost Reduction Review in 2005 of the WWTP Improvement Project, was asked to review the current status of the project. Mr. Dryden has over forty years of experience in the planning, design, and construction, operation and maintenance of municipal and industrial wastewater treatment and conveyance systems, water reuse projects and solid waste management. From 1957 to 1979, he was a Design Engineer, Division Engineer, and Deputy Assistant Chief of the Sanitation Districts of Los Angeles County. Since 1979, he has been a consulting engineer on numerous wastewater projects and served as an expert witness on wastewater issues. The results of his review are summarized in paragraph 3 of his letter (Attachment #2): ... it is my opinion that the design proposed by Brown & Caldwell was well conceived to meet the unique needs of this facility and effectively utilized existing structures to serve the elements of the proposed design. There were no major process changes identified for deletion or delayed construction that would not place the plant at risk of non-compliance with existing permit requirements. Any cost cutting of the major processes of the plant at this time which could result in non-compliance with requirements might ultimately subject the City to penalties that would offset any savings achieved." 4. Presentation of cost reduction items already implemented When this project was bid back in May 2005, the construction market was experiencing above normal construction cost escalation. (Year-over-year increases of 6% to 10% versus the historic rates of 4% to 5%.) The primary financial risk facing owners at that time who had hoped to receive lower bid amounts for their projects, was if they re-bid their projects the re- bid results would probably come in even higher than the initial bids. The City of Ukiah made the decision to award the construction contract at that time and concurrently move forward with a cost reduction program. The cost reduction program began as collaborative effort between the City of Ukiah (which included the past Mayor, Councilmember Crane and City staff), the City's value engineering consultant, Harris & Associates and the Contractor, Kiewit Pacific Company. Any and all ideas, good or bad, viable or not, were entertained in an effort to reduce the cost of the project. As a result, 169 brainstorming ideas were developed. Harris & Associates subsequent role was to facilitate the cost reduction process by driving consensus on actionable items. The ultimate goal was the development and conversion of raw "ideas" into deductive change orders that would reduce the cost of the project, without sacrificing the functioning of the plant improvements. Harris & Associates and the City developed a triage system of evaluating the viability of the raw ideas. The 169 ideas were divided into three tiers. Tier 1 Tier 1 were ideas that in the engineering judgment of City staff, the design Engineer (B&C) and Harris, were items that will result in a cost savings of at least 75% of our estimate AND had no significant increase in operations & maintenance (O&M) costs AND no significant increase in the risk of a discharge permit violation. Some examples were eliminating one of the specified two owner's trailers that were to be provided by the Contractor. The Contractor also proposed a roofing system for the electrical building that had the same life span as the specified system. We are looking at moving the new operations building location so that the existing building would not have to be demolished. This would eliminate demo work and allow for early completion of the operations building. We are also revising the construction materials from concrete block to a metal-sided building, which is a less expensive building system. Tier 1 anticipated savings are currently $1.5 million, see Attachment #3. 5. Options for further cost reductions and potential impacts on plant operation and maintenance and regulatory compliance. Tier 2 Tier 2 were ideas that would NOT have resulted in an increased risk of permit violation, BUT would have increased O&M costs, or where credit proposed was less than 75% of our estimate, and therefore, are not recommended by Staff for acceptance. A good example of how Tier 2 ideas were investigated was the idea to "allow standardized flashing". As this idea was investigated it was determined the originally designed flashing was not custom, as the brainstorming idea suggested. So there was no cost savings available for this initial idea, however the team reviewed the implications of using a lower quality (thinner gauge metal) flashing system, this idea introduced substantial and unacceptable risk of flashing system failure that could cost the city over $20,000 in repairs due to leaks. Another example of a Tier 2 idea that presented recurring O&M costs and problems was the idea to replace the specified stainless steel exhaust piping with carbon steel piping. Although using carbon steel would reduce the cost of the exhaust pipe material, the labor costs of installing the piping would be the same. Additionally, carbon steel does not last as long stainless steel and it would need to be replaced 2 to 3 times during the same life span. In the end, this idea would have cost the City nearly $10k in addition to having to create the need for unnecessary equipment shutdowns. Tier 3 Tier 3 ideas would increase O&M costs and the risk of a permit or code violation and therefore, are not recommended by Staff for acceptance. An example of a Tier 3 idea was the suggestion to replace a stairway at the influent pump station with a ladder. Since plant maintenance personnel need to carry tools and parts into this area, this introduced an OSHA workplace safety fall hazard because employees could not safely ascend nor descend on the ladder with their hands full. Another example was the idea to delete parallel switchgear from the plant. This idea would have put the plant at severe risk during a power outage of spilling untreated sewage, violating the permit and being assessed major fines. See Attachment #.4 for itemized list of Tier II and Tier III. Ongoing Efforts The cost reduction process is ongoing. The City, Kiewit and its subcontractors, Harris, and B&C are continually looking for ways to save the City costs on the project. One example was the suggestion to use native soil as structural backfill in lieu of importing backfill, saving costs on the material itself as well as hauling fees. Another, more recent, example is several cost savings ideas proposed by the electrical Subcontractor involving conduit material. Also, Kiewit has recently proposed having the digester cleaning deleted from its contract as they believe the City could probably get a better cost. These last two examples are so recent; they're still in the review/proposal process. ATTACHME~__ / PBGJECT IPDATE SIMMABY BEPSST CITY OF UKIAII WASTEWATEll TBEATMEIIT PLANT IMPBOVEMENTS PBOJECT Notice to Proceed: Percent Complete (cost) Original Contract Price: Approved Change Orders: Percent Change Orders: Current Contract Price: Pending Change Orders AnUcipal~l Final Contract Amt; 03/06/06 Contractor: 23% $56,538,000.00 $-877,278.00 -1.6% $55,660,722.00 -$600,000 $55,060,722.00 Percent Complete (time) Original Completion Date: Weather Days (90 allotted)'. Weather Days (beyond 90): Granted Extensions (Change Orders): Revised Completion Date Total Progress to date Kiewit Pacific Co. (KPC) 20% 06/27/09 22~ days 0 days 0 days 06/27/09 $13,042,802.00 Milestone 1: Milestone I work was completed within Contract time requirements on September 15, 2006. Milestone 2: Milestone 2 work is in progress with Contract Completion Date of July 30, 2007. Current progress is as follows: · Secondary Cladfiers and associated sludge and scum pumping systems work began June 2006. KPC completed construction of walls for Secondary Clarifier #! and is gearing up to hydrostatically test the tank. KPC continues construction on Secondary Cladfier #2 walls. KPC's next focus will be backfill of the #1 Cladfier in order to construct the Secondary Clarifier Electrical Building, while continuing construction of Secondary Clarifler #2 walls. · Disinfection Chemical Storage Facilities work began May 2006. KPC completed placing the foundation slab and is gearing up to construct the tank support pads. · Power Generation Building work began July 2006. KPC has completed construction of the building floor slab. KPC's next focus will be construction of the building walls. · Installation of the 12kV electrical distribution ductbank began in August 2006 and was completed in October 2006, with the exception of the final section into the Power Generation Building. The existing plant is currently being powered by this new system. · Dissolved Air Flotation Thickeners (DAFT) began June 2006. KPC has completed construction of the walls. KPC's next focus will be installing the DAFT mechanical equipment. DAFT Electrical Building began June 2006. KPC has completed construction of the CMU walls. KPC's next focus will be roof installation. · KPC has not started work on the Trickling Filter Electrical Building substation, which will begin within the next 6 months. Milestone 3: Contract Completion Date for Milestone 3 is June 26, 2008; work has not started. Anticipated start dates are as follows: · Influent Pumping Station within next 2 months, weather permitting. · Influent Screening Facility in 3une 2007 Fllllfld II1:. idlllil ii LlIllrlL hlgdlln Ilalallr Elis i ASSOCIATES Preaeration Gdt Removal Tank within next 2 months, weather permitting · Headworks Electrical Building within next 2 months, weather permitting · Conversion of Existing Secondary Clarifiers to Primary Clarifiers in July 2007 · Trickling Filter Pumping Station August 2008* (KPC in process of revising schedule to have this structure to finish within Milestone 3) · Trickling Filter 2 Modifications June 2007 · Washwater Recovery Pond 1 modifications June 2007 · Digester 1 Modifications Nay 2007 Milestone 4: Contract Completion Date for Milestone ,t is June 27, 2009; work has not started. Anticipated start dates are as follows: · Conversion of Existing Primary Sedimentation Tanks to Solids Contact Tanks March 2008. Operations Building March 2007, based upon revised building relocated to location of existing Maintenance Building. Conversion of Existing PreaeraUon Grit Tanks to Reclaimed Water Storage April 2008 · Washwater Recovery Pond 2 Modifications June 2008 Notes: 1. KPC has requested additional weather days for November 2006, which is currently under HSu~ review. Ftlplr# I~. Igcld# L LI#IrlL hltl/lCtbl IIIllllr P#e2ef2 IIAIIIIIS & ASSOCIATES ATTACHMENT ~,. FRANKI,IN D. DRYDEN, P. E. Consulting Engineer 1535 Arroyo View Drive Pasadena, CA 91103 (626) 795-4797; fddryden~juno.com October 10, 2006 Jeff Gould Interim Public Utilities Director City of Ukiah 411 West Clay Street Ukiah, CA 95482 Dear Mr. Gould, At your request, I have reviewed the current status of the City of Ukiah's Wastewater Treatment Plant Improvement Project. There is concern that the plant may have been over designed without adequate consideration of costs. Furthermore, the bid price for the project was higher than originally estimated and reductions in costs achieved through negotiations with the contractor in a partnering relationship have not reduced the costs to the level desired. As a consequence there will be a negative impact on Ukiah rate payers. The question is whether there can or should be some major change in the process design that would provide more significant cost reductions at this time? As a participant in the Value Engineering review of the project in the fall of 2004 by Willdan and RH & Associates, Inc., I evaluated the condition of the existing facility and the processes and facilities proposed by Brown & Caldwell to assure proper operation and compliance with all existing or projected Regional Water Quality Control Board permit conditions. The VE process focused on ways to reduce project costs without impairing plant performance and produced a number of recommendations designed to do so. ! also participated with Dave Ewing in the fall of 2005 in a supplemental review of the final design to attempt to find additional cost cutting opportunities that were not identified during the original VE evaluation. The list of proposed cost reductions included substitutions of less costly materials for those specified even though it would probably result in shorter life spans or less aesthetic appearance. Many of these suggestions were subsequently adopted by the City and the Contractor. However, major cost reductions were not identified. Based on these reviews, it is my opinion that the design proposed by Brown & Caldwell was well conceived to meet the unique needs of this facility and effectively utilized existing structures to serve the elements of the proposed design. There were no major process changes identified for deletion or delayed construction that would not place the plant at risk of non-compliance with existing permit requirements. Any cost cutting of the major processes of the plant at this time which could result in non-compliance with requirements might ultimately subject the City to penalties that would offset any savings achieved. Some cost reductions in other parts of the project that would not affect plant regulatory compliance or significantly impact plant operations were identified and resulted in cost savings of about 1.5 million dollars. It is unfortunate that the Wastewater Treatment Plant Improvement Project went to bid just as the impact of the Iraq war and reconstruction efforts was driving up prices of steel, concrete and equipment as they became in short supply. However, there is no immediate relief in sight and the recent rise in fuel costs is exacerbating the problem. Any cost reductions in the current project achieved by delaying construction of some element of the process will undoubtedly result in increased costs when constructed in the future. It therefore appears that it is in the interest of the City and its rate payers to complete the current design as rapidly and efficiently as possible. This should result in the least financial burden for the rate payers over the 20-year life of the project. Very truly yours, Franklin D. Dryden, P.E. Consulting Engineer Franklin D. Dryden, P.E., October 10, 2006 Page 2 A~-TAC~-IIV!ENT. "~i 0 -- rr, z nO Z uJ LU LU 0 -- [~ Z ~- 0 Z W O3 0 -- n, z n o - 8 UJ ITEM NO: 11e DATE: December 20, 2006 AGENDA SUMMARY REPORT SUB3ECT: DZSCUSSTON AND ACTZON CONCERNI'NG PROPERTY OWNERS REQUEST FOR CZTY ZNZ'I'I'ATED ANNEXATZON OF THE BRUSH STREET TRI'ANGLE SUMMARY: The owners of the property within the Brush Street Triangle have submitted a letter asking the City Council to consider initiating annexation of their parcels into the City limits (Attachment No. 1). They believe that the Brush Street Triangle does not have major constraints to development and because it adjoins the City and is west of Highway 101, it represents the logical extension of the City's incorporated lands. Typically, the property owners would initiate an annexation and therefore this request is somewhat unusual. The property owners will be in attendance at the December 20th meeting to discuss their request and provide the reasons why they would like the City to initiate the annexation. Planning :~ssues: When the City certified the Orchard Avenue Bridge EIR in January of 2005, it adopted a mitigation measure requiring the preparation of a "Comprehensive Land Use Plan"for the Brush Street Triangle before development could occur. While annexation of the land would not involve development and therefore not be subject to this mitigation measure, it would require prezoning by the City Council. Prezoning is a legal requirement for annexation so that the land is zoned when it is incorporated into the City. One option for prezoning the Brush Street Triangle is to create a "Planned Development" zoning that includes allowed and permitted land uses, development standards, a circulation plan, and design standards for future development. This would provide some level of planning for the predominantly vacant land as a part of the annexation process. (continued on page 2) RECOMMENDED AC/']ON: Discuss and consider a City initiated annexation approach for the Brush Street Triangle. ALTERNATIVE COUNCTL POLZCY OPT[ON: Do not consider a City initiated annexation approach and provide direction to Staff. Citizen Advised: Cox, Mayfield, and Thomas, and interested groups and organizations Requested by: 3ack Cox, John Mayfield, and Dan Thomas Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: 1. Correspondence from Jack Cox, dated December 7, 2006 Candace Horsley, City ~anager Another option would be to allocate the resources needed to develop a "Comprehensive Land Use Plan" for the Brush Triangle in anticipation of annexation. Tf exploration of this option is desired, Staff could prepare a description of the needed resources and costs and return to the Council for further discussion. Such a discussion could include property owner participation and cost sharing in the planning effort. Background: Tn April of 2005, two of the property owners submitted a preliminary annexation request for a portion of the Brush Street Triangle. After reviewing the submitted material, Staff had determined that the potential buildout of the subject lands could cause potential adverse environmental impacts and required the applicants to fund the preparation of an environmental impact report. To date, that project has not moved forward. Environmental Review: It is unknown what level of environmental review would be required to prezone and annex the entire Brush Street Triangle. A considerable amount of information is now available from the Orchard Avenue Bridge EIR, but it is unknown whether or not the buildout assumptions contained in the prezoning planned development document would match those in the ETR. While it is possible that a Negative Declaration could be prepared for the prezoning and annexation, it is also possible that a separate environmental impact report could be required. The question of who would pay for any required studies or an E[R needs to be answered. Similarly, if a Comprehensive Land Use Plan is prepared, environmental review would be required and could involve additional costs. Requirements Before Annexation: The Council is aware that a number of things must occur before an annexation could proceed. These include completing the Municipal Service Review, finalizing the proposed new Sphere of influence, and reaching agreement on both a property tax sharing agreement and housing allocation agreement. The preliminary text of the Municipal Service Review is undergoing internal review and the maps, figures, and tables referenced in the document are being finalized. Staff anticipates presenting the Preliminary Review MSR document to the Council for discussion in early 2007. RECOMMENDATION: Discuss and consider a City initiated annexation approach for the Brush Street Triangle. 2 Jack L. Cox P. O. Box 1389 455 E. Gobbi St. Ukiah, Ca. 95482 07 December 2006 OJ~ice (707) 46~'-7573 Home (707) 485-1475 Fax (707) 462-7978 e-maih jaekeox(~saber.net Ukiah City Council c/o Charlie Stump, Director Planning & Community Development 300 Seminary Ave., Ukiah, Ca. 95482-5400 Re: Annexation - Brush Street Triangle Area Dear Council Members: This letter is to encourage the Ukiah City Council to consider initiating annexation into the city the area commonly referred to as the Brush Street Triangle. I, together with others, own property within the area and, as a matter of fact, submitted a Preliminary Annexation Request to the city in April of 2005. Developable lands within the city limits have been scarce for a number of years. The topography of the land lends itself to easy development, and its visual exposure to Highway 101 makes it desirable for commercial development along its frontage. With the provision of water and the expansion of other needed utilities, such as sewer, etc. the area will lend itself to varied uses, such as needed housing, both single-family and multi-family, as well as commercial. I believe the triangle area is the ideal area for planned growth; it is not impaired with restricted access for emergency vehicles as is the case in the eastern foothills; it is not subject to the steep slopes and soil instabilities (slides) that have been a recurring concern in the western foothills; and it does not infringe upon the areas reserved for agricultural use being the lands lying east of Highway 101 and north of Lover's Lane. Geographically, the subject area would be a natural extension of the city's incorporated ?ish to thank you in advance for taking the time to consider this request. ~espectfully!submitted, \ Jack L. Cox Property Owner JLC/md AGENDA ITEM NO: llf MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT: AWARD OF CONTRACT FOR 2000 and 2002 STIP RAILROAD CROSSING REHABILITATION PROJECT SPECIFICATION NO. 06-03 SUMMARY: The City distributed plans and specifications to eight builder's exchanges and six contractors for the 2000 and 2002 STIP Railroad Crossing Rehabilitation Project Specification No. 06-03. The City publicly advertised this project on December 3 and 10, 2006, in the Ukiah Daily Journal. A copy of the Notice to Bidders was sent to 59 contractors including all License Class A contractors on the City's 2006 Qualified Contractors List. Sealed proposals will be received and opened by the City Clerk on December 19, 2006. This project will be partially reimbursed by STIP funds through Caltrans. Staff is seeking Council approval for award of the contract based on the outcome of the bid opening. The need for City Council approval so soon after the bid opening date is necessitated by the fact that this project must be awarded by December 31, 2006, to meet Caltrans' requirements. A bid tabulation sheet will be provided to the public and the Council at the meeting. If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects, there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head, with approval of the City Manager, to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. RECOMMENDED ACTION: Award contract for 2000 and 2002 STIP Railroad Crossing Rehabilitation Project Specification No. 06-03, to the lowest responsive, responsible bidder based on bids submitted on December 19, 2006. ALTERNATIVE COUNCIL OPTIONS: (1) Reject Bids; (2) Provide Staff with other direction. Citizens Advised: N/A Requested by: Tim Eriksen, City Engineer and Director of Public Works Prepared by: Rick Seanor, Deputy Director of Public Works Coordinated with: Candace Horsley, City Manager Attachments: None Approved: '~nager MEMORANDUM To: From: CC: Date: Re: Members of the City Council Tim Eriksen, Director of Public Works and City Engineer'- Gall Petersen, City Clerk December 20, 2006 ITEM 11f- MEETING OF DECEMBER 20, 2006, AWARD OF CONTRACT FOR 2000 AND 2002 STIP RAILROAD CROSSING REHABILITATION PROJECT - SPECIFICATION NO. 06-03 Attached for your review is the Bid Tabulation sheet for the above referenced project. The bid opening occurred at 2:00 PM Tuesday, December 20, 2006 and there were two bidders. The Iow bidder, Argonaut Constructors of Santa Rosa, submitted a base bid of $860,070.00. The Iow bid substantially exceeded the engineer's estimate of $461,982. The City originally submitted applications to the Mendocino Council of Governments in 2000 for the 2000 STIP Railroad Crossing Rehabilitation Project and in 2001 for the 2002 STIP Railroad Crossing Rehabilitation Project. At that time, the City based its funding requests on construction costs for the County of Mendocino's railroad crossing rehabilitation project on Brush Street. The total construction funding requested through MCOG was $284,000, combined for the 2000 and 2002 STIP projects. Since 2000/2001 when the original funding requests were prepared, construction costs have skyrocketed, particularly for steel, concrete, and asphalt concrete which are the three main construction items in the rehabilitation project. The City of Ukiah is the first agency in the County to obtain bid prices for railroad crossing rehabilitation projects. The City of Fort Bragg, the City of Willits, and Mendocino County Department of Transportation all have railroad crossing rehabilitaton projects to bid in the near future. Since the Iow bid substantially exceeded the engineer's estimate and the available funding, staff recommends that the City Council reject all bids for this project. i iii~i I = 0 ~ c~ ooooooooo~oooo m ~ ~ ~o Z ~ ~888~88~8~888~8 ~ ~ oooaooooooooooo ~ ~ 8 888~888888888888 ITEM NO: lt6 MEETING DATE: December 20, 2006 AGENDA SUMMARY REPORT SUBJECT: AWARD OF CONTRACT FOR GOBBI STREET AND ORCHARD AVENUE TRAFFIC SIGNAL IMPROVEMENTS - SPECIFICATION NO. 06-16 SUMMARY: The City distributed plans and specifications to eight builder's exchanges and five contractors for the Gobbi Street and Orchard Avenue Traffic Signal Improvements, Specification No. 06-16. The City publicly advertised this project on December 3 and 10, 2006, in the Ukiah Daily Journal. A copy of the Notice to Bidders was sent to 56 contractors including all License Class A contractors on the City's 2006 Qualified Contractors List. Sealed proposals will be received and opened by the City Clerk on December 19, 2006. This project will be partially reimbursed by STIP funds through Caltrans. Staff is seeking Council approval for award of the contract based on the outcome of the bid opening. The need for City Council approval so soon after the bid opening date is necessitated by the fact that this project must be awarded by December 31, 2006, to meet Caltrans' requirements. A bid tabulation sheet will be provided to the public and the Council at the meeting. If the bid is awarded, compensation for the performance of the work will be based on unit prices bid for contract item quantities actually installed. Bid totals are based on unit prices bid for contract items at estimated quantities, and therefore, the actual total paid to the contractor may be lower or higher than the bid total indicated. As with construction projects there may be cost overruns by reason of unforeseen work or because actual quantities installed exceed estimated quantities. Policy Resolution No. 13, authorizes the responsible Department Head, with approval of the City Manager, to issue change orders not to exceed 10 percent of the original contract sum or $5,000 whichever is greater provided that no change, when added to the original contract sum, exceeds the amount budgeted for the project. RECOMMENDED ACTION: Award contract for Gobbi Street and Orchard Avenue Traffic Signal Improvements, Specification No. 06-16, to the lowest responsive, responsible bidder based on bids submitted on December 19, 2006. ALTERNATIVE COUNCIL OPTIONS: (1) Reject Bids (2) Provide Staff with other direction Citizens Advised: N/A Requested by: Tim Eriksen, City Engineer and Director of Public Works Prepared by: Rick Seanor, Deputy Director of Public Works Coordinated With: Candace Horsley, City Manager Attachments: None Approved[. Can-'-h~'ace H0rsley, City rv~ager MEMORANDUM To: From: CC: Date: Re: Members of the City Council . Tim Eriksen, Director of Public Works and City Engineer, Gail Petersen, City Clerk December 20, 2006 ITEM 11g - MEETING OF DECEMBER 20, 2006, AWARD OF CONTRACT FOR GOBBI STREET AND ORCHARD AVENUE TRAFFIC SIGNAL IMPROVEMENTS- SPECIFICATION NO. 06-16 Attachment "A" for your review is the Bid Tabulation sheet for the above referenced project. The bid opening occurred at 2:00 PM Tuesday, December 20, 2006 and there were four bidders. The Iow bidder, Pipeline Excavators of Sebastopol, has a bid of $388,283.00. In review of the bids, Pipeline submitted a bid bond for 10% with a not to exceed bid bond amount of $35,000. On December 20, 2006, Pipeline Excavators submitted a revised bid bond for 10% with a not to exceed bid bond amount of $39,000. In their letter dated December 20, 2006, Pipeline identified the clerical irregularity on the original bid bond submitted with the bid and has requested that the City waive the irregularity and award the bid to their firm. The letter and revised bid bond are included as Attachment "B". Argonaut Constructors, the second lowest bid, submitted a letter dated December 20, 2006 which requests that the City reject Pipeline's bid as being non-responsive since the bid bond did not meet the requirements of the City's specifications. A copy of Argonaut's letter is included as Attachment "C". Staffed reviewed the aforementioned correspondence with City Attorney David Rapport. City Attorney Rapport determined that the issue with Pipeline's bid bond can be considered an irregularlity. Based on the attached Bid Tabulation sheet and the information supplied by the Agenda Report Item 11g, staff recommends that the City Council waive the irregularity in Pipeline Excavator's bid bond and award the construction contract for the Gobbi Street and Orchard Avenue Traffic Signal Improvements, Specification No. 06-16, to Pipeline Excavators. Attachment ' i UNDERGROUND STORM DRAINAGE SEWER WATER December 20, 2006 City of Ukiah Department of Public Works 300 Seminary Avenue Ukiah, CA. 95482 Attachment # SITEWORK EXCAVATING GRADING PAVING RECEIVED DEC 2 0 2006 CITY OF UKIAH DEPT. OF PUBLIC WORKS Attention: Rick Seanor Reference: Gobbi Street & Orchard Avenue Traffic Signal Improvements Bid Date 12/19/06 Gentlemen: It appears Pipeline Excavators bid bond for the above referenced project may lack clerical accuracy. The bonding company has issued a new bond correcting the clerical irregularity (pleased find corrected bond enclosed). Per the contract specifications The City Council has the power to waive any irregularities. The bonding companies dollar amount was not accurate however the bond reflects that 10% of the bid amount will be bonded. Therefore, with proof of the corrected clerical irregularity, Pipeline Excavators respectfully requests that the City Council waive the clerical inaccuracy on Pipelines bid bond as a minor irregularity, declare Pipelines bid as the lowest responsive bid and award the above referenced project to Pipeline Excavators. Thank you for your consideration in this matter, please do not hesitate to contact this office. Sincerely, Chief Estimator P.O. Box 1755 · Sebastopol, CA 95473 · (707) 824-8546 · Fax (707) 824-8042 American Contractors Indemnity Company 984t AIRPORT BOULEVARD, 9m FLOOR, LOS ANGELES, CA 90045 (310) 649-0990 RECEIVED DEC 2 0 2006 ® BOND NO BBSU #291628-16 PREMIUM BID DATE: 12/19,/06 CITY OF UKIAH DEPT. OF PUBLIC WORKS BID BOND KNOW ALL MEN BY THESE PRESENTS, That we, Pipeline Excavators, P.O. Box 1755, Sebastopol, CA 95473 (hereinafter called Principal), as Principal, and American Contractors Indemnity Company , a corporation, organized and existing under the laws of the State of California and authorized to transact a general surety business in the State of Califomia (hereinafter called Surety), as Surety, are held and firmly bound unto Ukiah, CA City of Ukiah, 300 Seminary Ave. (hereinafter called Obligee) in the penal sum of Ten percent ( t0 %) of amount bid not to exceed Thirty Nine Thousand and 00/100 ................................................................................. .............................................................................. Dollars ($ 39,000.00 ) 1bt the payment of which the Principal and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, That, whereas the Principal has submitted or is about to submit a proposal lo the Obligee on a contract for Gobbi Street & Orchard Avenue Trafftce Sign_al hnprovements NOW, THEREFORE, if the said contract be awarded to the Principal and the Principal shall, within such time as may be specified, enter into the contract in writing, then this obligation shall be void. If the Principal shall fail to do so, then the undersigned shall pay the obligee the damages which the obligee may suffer by reason of such failure up to and not exceeding the penal sum of the bond. SIGNED, SEALED AND DATED THIS 19th DAY OF December 2006 American Contractors Indemnity Company By: C~he~l ~ Attorney-in-Fact A...,U..OS£ CK.OWLEDGM£. RECEIVED DEC 0 2006 State al Calilornia '~ ss. CITY OF UKIAH County of Sonoma ] DEPT. OF PUBLIC WORKS On 1 2 / 1 9 / 0 6 belore me, personally appeared Cheryl Griggs M. Argabriqht ~Notar¥_ Public ~J personally known to me [] proved to me on the basis of satisfactory evidence · ' Commission # 1586935 ~ Notary Public - Catifornia k,,,~../ 5onoma Counly to be the person(:t~ whose name~') is/,j:~ subscribed lo the within inslrument and acknowledged to me that h~C/she/t'~ executed the same in b~her/ff,~Tr authorized capacityt3:e~, and thai by 'b~/her/tb'¢:r signature(~ on the instrument the person~,, or the entity upon behaff ol which the person("¢~' acted, executed the inslrument. WITNESS my hand and official seal. OPTIONAL Though the information below is not required by law, il may prove valuable to persons relying on Ihe document a~d could prevenl Iraudulenl removal a~d reatlachmenl of this form lo anolhe[ document Description of Attached Document Title or Type of Document: BBSU #291628-16 Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer Signer's Name: ~ Individual TO¢ of Ihumb here E~ Corporate Officer-- Title(s): © Partner -- [] Limited [] General E~¢ Attorney-in-Fact [] Trustee [3 Guardian or Conservator [] Other: Signer lsRepresenting:.AmerJ-can Contractors Indemnity Comi~any American Contractors Indemnity Company IVED 9841 Atrport Blvd., 9 Floor Los Angeles, California 90045 DEC ,g 0 POWER OF ATTORNEY KNOW ALI., MEN BY TIIESE PRESENTS: CITY OF UKIAH DEPT. OF PUBLIC, WORKS That American Contractors Indemnity Company of the State of California, a California corporation, does hereby appoiht, Nancy L. Wallis, Cheryl Griggs, M. Argabright, or Lisa L. Gosha of Santa Rosa, California !, : , its true and lawful Ai~orney(s)-in-Fact, with full authority to execute on its behalf bonds, undertakings, recognizances and other contracts of indemnity and writings obligatory in the nature thereof, issued in the course of its business and to bind the Comp~ an Amount not to exceed :$ ***** 3,000,000.00 ***** . This Power of Attorney shall expire without 18, 2007. This Power of Attorne, is granted and is signed and sealed by facsimile under and by the authority of the following Resolution adopted by the [ 3f AMERICAN CONTRACTORS INDEMNITY COMPANY at a meetin zld on the 6~h day of "RESOL VED that the Chief Executive Officer, President or any Vice President, Executive Vice President, Secretary or Assistant Secretary, shall have the power and au hority . I. To appoln~,A~lor~ey(s), ~:Fac and o author: ze tt emi::to execute on behalf of the Companyc and attach bonds anli:un~Jrtaktngs, contracts of mdernmty'and 8ther wrtllngs obligatory in the nature thereof and, lime, an), signatures of such officers and the such Power c .upon the in th~ valid and binding andfacsimil~s~ql shall be valid and bindin 1N ' has caused~it~ ~al ~o 1~ affixed Chief 15th day of December, 2003. PANY STATE OF CALIF On this 15th day of D,~cember 2003, before me, Deborah Reese a notary public p,ersonally appeared Robert F, Thomas Chief Executive O ffi ciagb° f ~tri~il~an I~ ~Ptract°rs,, ~,,m,~ ~.~ Indemnity Company personally known to,i~g:(q~ ~'toved~ -- to me on~ _:r ~m ~ ~ t~ ;b~isi!]$!~:~ati~act°~ evidence) to be ~"g~d~(]) ~h$¥e~gme(s)is/are st User bed o he w th n n~U~ht ~d gg~d~ edged to m(g~Zsl~t~e~!6"~¢uted the same n ~l~, I ~ ,r I'r~, , . . '', :i: , ,, ,iil,,:, ;',":, ' '~'l~r~'." his/h~]~ att~on~ed capamty(,es), and that by h,s/her/the,r s,gnatu~e(s) on the ihstrnment the perSofi~); or [~e e~hW upon behalf of which the person(s) acted, executed the instrument. WI~ESS my Sit 2007 1, Jeannie J. Klm, Corporate Secretary of American Contractors Indemnity Company, do hereby c~ify that the Power of Attorney and the :: ~ ms~lut on adap ed by,~h~ Board; o£D~ ~ rectors of said Company a~set forth above~ar¢ ~fih-0/xo~ect transcripts I : ~he~ai~ Power of.41t~o~fi'~ t~ r~s01ution have beefi,:revoked ~nd they are IN WITNESS HEREOF, I have hereunto set my hand this 1 9~_h day of December 200 6. 628-'I 6 ' " Jeanr Rev POA03/22~)6 Attachment December 20, 2006 RECEIVED City ofUkiah Department of Public Works 300 Seminary Avenue Ukiah, Califbrnia 95482-5400 Attention: Richard J. Seanof Deputy Director of Public Works DEC 0 2006 CITY OF UKIAH DEPT. OF PUBLIC WORKS Reference: Special Provisions for Gobbi Street & Orchard Avenue Traffic Si~nal Improvements, Specitication No. 00- 16 Gentlemen: Rick Scarier. Argonaut Constructors was the apparent second bidder on Ihe above referenced project when lhe bids were opened December 19, 2006 Pipeline Excavation was the apparent low bidder. In reviewing Pipelines bid proposal it was noticed that their bid bond was limited to $35,000.00 which did not cover the required 10% of their prospective base bid total, Under the General Conditions Section 1-06 Bid Cmaranty. each bid mos! be accompanied by a certified check or bidder's bond in an amount not less than I0 percent of the bid as a guarantee that d~e bidder will enter into a contract, if awarded the work. Pipeline submitted a Non- Responsive bid by not adhering to this specification and their bid should be rejected as such. Please accep! this notice as the official docl.lnlcllt of protest lbr this project We are requesting that this contract be awarded to Argonaut Constructors as the lowest responsive bidder on this prqiect. If you have any questk)ns please do not hesitate to cai us at 707-542-4862 Respectfidly Micheal D. Smith, -Presidefi~ Cc: Bob Griesinger, ClfiefEstimator Cc: Jim Cobb, Esq AGENDA ITEM NO: 1 lh MEETING DATE: December 20, 2006 SUMMARY REPORT SUBJECT; REQUEST FOR SPONSORSHIP OF CITIZEN U EDUCATIONAL WATER FORUM - RODIN Mayor Rodin has asked to agendize a discussion and possible approval of a $500.00 sponsorship from the City of Ukiah to host the Ukiah Valley Smart Growth Coalition water educational forum on January 18, 2006, from 6:00 to 8:00 p.m. at the conference center. Speakers will include Roland Sanford, Mendocino County Water Agency Director, Bill CorneR, Chair of the Farm Bureau Water Committee, Janet Pauley, Chair of the Inland Water and Power Commission; David Keller, President of Friends of the Eel River; and Barbara Spazek, Executive Director of Russian River Flood Control. An e-mail from Mary Ann Landis, a member of the Coalition is included for additional clarification of this request. RECOMMENDED ACTION: Discuss Mayor's Request ALTERNATIVE COUNCIL POLICY OPTIONS: Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Mayor Rodin Candace Horsley, City Manager Electronic mail from the Smart Growth Coalition Approved: ~'~'~, Candace Horsley, Ci! Manager FW: Citizen U Page 1 of 1 Candace Horsley From: mari rodin [rodin@pacific.net] Sent: Monday, December 11,2006 8:53 AM To: Candace Horsley Cc: Mary Anne Landis Subject: FVV: Citizen U Attachments: CITIZEN U overview for co-sponsors.doc ...... Forwarded Message From: Mary Anne Landis <malandis@pacific.net> Date: Sun, 10 Dec 2006 21:12:47 -0800 To: mari rodin <rodin@pacific.net> Subject: Citizen U Hi Marl -- wouM you please forward this overview to Candace Horsley? Thanks, M A Hello Candace, Now that we have confirmed the speakers for our first forum (as well as a moderator), I promised I'd send the attached overview to you to see if the City of Ukiah would like to be a co-sponsor. I'm spearheading this project, with a team of 4 other people at this point. More hands of course would make the work lighter! Attached you'll find a description of what The Ukiah Valley Smart Growth Coalition is proposing for this series of educational forums. We have done outreach to a number of organizations such as GULP, Mendocino College, Main Street, Leadership Meadocino, Farm Bureau, GULP and Public Health. All have been favorable and are in the process of getting board or council approval. 1'11 be moving along with publicity, which will mean 1'11 need to know co-sponsor's commitment by Dec 22nd--sooner of course is better. Looking forward to hearing from you, Mary Anne Landis ...... End of Forwarded Message 12/11/2006 CITIZEN U A Series of Educational Forums Sponsored by the Ukiah Valley Smart Growth Coalition and .... The title of this series is a triple entendre. CITIZEN U can be interpreted as Citizen You or Citizen Ukiah Valley or Citizen University. CITIZEN U is a series of educational forums on subjects of local importance related to the Ukiah Valley Area Plan (UVAP) process. This series is premised on two ideas. First, informed citizens care more about their community because they see the inter-relatedness of issues and how decisions might affect them. Secondly, informed citizens make better decisions. The issues related to land use planning, our natural resources and the economics of the Ukiah Valley are complex and at times overwhelming to the average member of our community. This educational series will offer respectful civic conversations so that we will find our way together. Our intent with CITIZEN U is to encourage local folks to participate in the upcoming year of discussions about the Ukiah Valley Area Plan. In this series we will gather background and perspectives on subjects important to land use. At each forum, we will frame complex topics in understandable terms, discuss outstanding issues and areas needing research as well as propose ways that residents can stay abreast of developing issues. Maps and other visual aids will be provided to help attendees assimilate the complexities of each issue. The issues will include: Water Sphere of influence Revenue tax sharing Municipal service districts Affordable housing Economic planning Pending developments Water (with a catchier title) is slated as our first program on January 18th from 6-8 PM, at a location we are determining. The speakers who have committed to speak and answer audience questions that night are: Roland Sanford, Mendocino County Water Agency Director Bill Coruett, Chair of Farm Bureau Water Committee Janet Pauli, Board of Director of Potter Valley Irrigation District, Mendocino County Chair of Inland Water and Power Commission David Keller, Past Petaluma City Council member and President of Friends of Eel River Barbara Spazek, Executive Director of Russian River Flood Control/Water Conservation Improvement District. Speakers will be given guidelines to support their being on-point. Some of the forums may weave 2 or 3 topics together. This discussion will be moderated by Carol Park. Refreshments will be provided. Ukiah Valley Smart Growth Coalition would like to ask your group to co-sponsor this series to help educate our residents to be better participants in the UVAP process, a process that will shape the future of our beautiful Ukiah Valley. We are asking each co-sponsor to mail flyers to their members and to contribute something else to the effort--such as a venue, food, desktop publishing, speakers, video taping services, a moderator or something that is needed to coordinate these forums. Mary Anne Landis Member, Ukiah Valley Smart Growth Coalition 462-1853, malandis@pacific.net ITEM NO: 11± DATE: December 20, 2006 AGENDA SUMMARY REPORT SUB~JECT: DISCUSSION CONCERNING MEASURE "X" IMPLEMENTATION - M¢COWEN SUMMARY: Measure "X" was placed on the November 6, 2006 ballot asking voter approval to increase the transient occupancy or bed tax from 8% to 10%. Prior to the election, the City Council adopted a Resolution expressing the City Council's intent on how the additional revenue from the measure would be spent (provided the measure was adopted by the voters). The Resolution specified that for the first two years, 75% of the additional revenue would be spent on promotion of the City of Ukiah and its tourism industry, and 50% thereafter. The Resolution further provided that the portion of revenue directed towards promotion would be administered by the Greater Ukiah Chamber of Commerce subject to a performance agreement with the City Council. Although it was not part of the Resolution, it was discussed with the Chamber and before the City Council that a committee composed of members of the Chamber, the Ukiah Main Street Program, the Mendocino County Lodging Association, the Mendocino County Promotional Alliance, the Wine and Wine Grape Commission, local hoteliers and other interested parties would meet to develop a work plan specifying how the promotional funds would be spent. Subject to approval by the City Council, the work plan would be included in the performance agreement with the Chamber, which would then be responsible for expending the funds in accordance with the work plan. Measure "X" was adopted by the voters and it is time to convene the committee to develop the work plan. The City has recently sent a letter to members of the lodging industry advising them that the increased transient occupancy tax (TOT) will be implemented effective January 1,2007. It is expected that it will take some time to collect funds before the approved work plan can be implemented by the Chamber. Based on last years annual TOT revenue of $490,000, it is estimated that 75% of the revenue from the 2% increase will yield approximately $90,000 in the first year. RECOMMENDED ACTION: Discuss implementation of Measure "X" and direct staff to coordinate with the Chamber and other interested parties to convene the Measure "X" work plan committee. Direct staff to develop a performance agreement with the Chamber that incorporates the work plan and return to City Council for final approval. ALTERNATIVE COUNCIL POLICY OPT]ION: N/A Citizen Advised: N/A Requested by: Councilmember McCowen Prepared by: Councilmember McCowen Coordinated with: Candace Horsley, City Manager APPROVED:, '~a-~ace Horsley, City M~ager ITEM NO: MEETING DATE: AGENDA December 20, 2006 SUMMARY REPORT SUBJECT: DISCUSSION OF RECRUITMENT PROCESS FOR CITY MANAGER AND POSSIBLE AUTHORIZATION TO PREPARE A REQUEST FOR PROPOSAL (RFP) FOR A PROFESSIONAL RECRUITMENT FIRM The current City Manager is planning on retiring in July, 2007. The past City Council had determined to hold the discussion of the City Manager recruitment until the new Council was seated. However, information on what services a professional recruitment firm would provide was requested. Staff has contacted a well known executive recruitment firm to provide a detailed explanation of the steps that would be taken, including the interactive communication process with the Council before a seamh begins. Attached is an example of an Executive Recruitment Services scope of work with associated timelines that was recently sent by the firm to another city for a high level staff position. Instead of meeting with the City Manager as indicated in this example, the selected firm would be meeting with the City Councilmembers. The selected firm's staff would work closely with the Council to identify the specific needs and key competencies and characteristics of the 'ideal candidates'. The process described within this example is very close to the methodology most executive recruitment firms would follow. Possible options for the recruitment process include sending out a RFP for a professional recruitment firm, having the City's Personnel Department perform the search, or hiring an individual to work with the Council on a recruitment, The recruitment firm would most likely have the best resources, staff expertise, knowledge of executive recruitment techniques, contacts, and methods to meet the Council's goals. If this is the option selected by the Council, staff would request approval to prepare a RFP for Council's review. Council had also requested the City Manager to provide background information on what she sees as personal attributes a manager for Ukiah might possess. If this is still desired, that information will be forthcoming at a Council meeting in January. Staff is requesting Council's discussion and direction regarding the recruitment process. RECOMMENDED ACTION: Discuss and provide direction. Requested by: City Council Prepared by: Candace Horsley, City Manager Coordinated with: Melody Harris, Personnel Director Attachments: 1 - Executive Recruitment Process Approved:~ ~;~/~,~ ~~ CanOe Horsley, City Man~a,ger KOFF & ASSOCIATES. INC. Affochment # I Human Resource Consulting Since 1984 EXECUTIVE RECRUITMENT PROCESS Submitted by: KOFF & ASSOCIATES, INC. 6400 Hollis Street, Suite 5 Emeryville, CA 94608 510.658.5633 - voice 510.652.5633 - fax E-mail: kkaneko @ koffassociates.com www.koffassociates.com Contact Person: Katie Kaneko, President b4(X) Hollis Street, Suite 5, Emeryville. CA 94608 TEL 5 H)/658 5633 FAX 510/652 5633 www koffass~:iales.com KOFF & ASSOCIATES. INC. ttuman Resource Consulting Since 1984 September 25, 2006 DeaF: Thank you for the opportunity to respond to your request for executive search services. As you know, Koff & Associates is a firm with a specialty in public sector human resources. We have been assisting public agencies with their recruitment and other human resource needs for the past 22 years. Our entire practice has grown as a result of satisfied clients who refer us to their colleagues in other agencies. Being responsive to your needs is our number one priority. We aggressively market your position seeking the best available candidates. Our efforts are to find the passive as well as the active candidates. Depending upon the professional organizations we are able to tap into, we advertise the position through various media to attract the largest possible candidate pool. We then employ a competency and factor-based evaluation tool that clarifies each candidate's strengths and weaknesses to screen out all but the most highly qualified candidates. These approaches to an Executive Search provide our clients with a substantial talent pool that is closely matched to the organization's needs and desires. Having placed countless professionals with numerous public agencies over the past 22 years, we understand the importance of technical competence and cultural match. Because our firm assists in all areas of human resources, our list of recruitment engagements does not match the number completed by our competitors. What we are able to offer is a greater concentrated effort for those recruitments we do initiate. We maximize the effectiveness of the recruitment activity to ensure quality of both the integrity of the recruitment campaign (which reflects on your agency), as well as the quality of the candidate pool that we are able to generate. Please call if we can provide any additional information. We hope to continue our successful business relationship with Ross Valley Sanitary District with this executive recruitment engagement. Sincemly, Katie Kaneko President Enclosure(s) 6400 Holli, Sn'eel. Suile 5. Emcryvillc. CA 94(ff)8 TEL 510/65S 5633 FAX 510/652 5631 KOFF & ASSOCIATES, INC. Human Resource Consulling Since 1984 EXECUTIVE RECRUITMENT SERVICES SCOPE OF WORK Meet with the City Manager and Other Staff to Discuss: Ideal Candidates' Competency and Characteristic Profiles Supplemental Questionnaires Discussion Concerns and Issues Geographical Strategies Advertising Strategies Completion Timetable Working closely with staff, Koff & Associates, Inc. assists in identifying the specific needs of the District and identifies key competencies and characteristics of the "ideal candidates." Once these criteria are established, salary and benefit considerations are discussed to ensure market competitiveness (we are in the process now to conduct a salary survey for the position to establish a competitive salary range that will attract high-quality applicants), credential requirements are considered and geographic recruitment boundaries are identified. At the conclusion of this meeting, there should be a clear consensus of the key qualifications and characteristics of each position and the process and timetables to be utilized for the recruitment activity. Develop And Implement Recruitment And Advertisement Strategy A professionally produced brochure will be created to highlight the strengths and challenges of the District and its services and to address pertinent facts regarding the position. Having worked in the public sector for more than 25 years, we have established excellent relationships with many agencies and their management teams. Utilizing this effective network, we discreetly solicit recommendations and contact individuals meeting our criteria who may not be actively seeking other employment. Time and again, this has proven to be a valuable candidate source that is used concurrently with more traditional recmltment strategies such as advertising in appropriate newspapers, journals, public sector newsletters, and appropriate professional association websites, as well as sending brochures and announcements to other cities, counties and agencies. Review Application Packets After applications and resumes are received, they are carefully evaluated based upon an objective and clearly defined factor ranking analysis that incorporates the concerns and issues previously discussed as ~400 Hollis Slre¢l. Suite 5. Emcryvillc~ CA 946(18 TEL 510/658-56V~ kAX 510/652 5633 Proposal for Executive and Staff Search December 13, 2006 Page 2 of 7 well as the specific requirements of the classification descriptions. Candidates are also ranked against each other and a numerical score that clearly distinguishes the most qualified candidates recommended for further consideration. Conduct Initial Interviews Top candidates will be initially interviewed by telephone to further clarify any issues raised by the submitted documents; reasons for position interest will be identified; the level of commitment to the position and the organization will be determined; and other issues, including salary requirements will be discussed. Recommend Slate of Candidates Koff & Associates, Inc. will submit for District review, clear written recommendations and analysis of the most qualified applicants as finalists. Our recommendations will include all relevant data on the applicants. The District, of course, will be the final decision-makers regarding candidate selection. Participate in Interview Process Working with the District, we will develop a set of key questions that will help analyze the candidate's qualifications and management/work style. Although we rely upon the District to assist in the selection of appropriate Oral Board panel members, we complete all of the necessary communications with the panel so they are prepared. Koff & Associates, Inc. will provide oversight during the interview process and facilitate a focused panel discussion at the conclusion of the interviews to identify the most qualified candidates for final consideration. Our facilitation skills usually prove useful in the assessment of candidates at the end of the interview process. Maintain All Required Legal Documentation We are responsible for ensuring compliance with and establishing and maintaining all legally mandated documentation throughout the process. Complete all Correspondence We believe that each candidate, regardless of their qualifications and success in the selection process, deserves the courtesy and respect of being informed throughout the process. Applicants receive ongoing communications via our office, which not only keeps all the candidates abreast of the process and their continued candidacy, but also enhances the District's reputation and image of being considerate, thoughtful and professional. Conduct Reference and Background Checks Koff & Associates, Inc. will conduct extensive reference and background checks for the final candidates after the interview and testing process and before any offers of employment. This review includes employment and professional references, Interact, media and newspaper searches, confirmation of educational degrees, driving record check, criminal record search and military service check (if applicable). We, as well as our background contract firm meet, or exceed, all of the new and extensive 2004 California reporting requirements. 6411Q Hollis Street. guile 5. Emcrsvillc, CA 94608 1613 TEL 51{}/65S-5633 FAX 510/652-56~3 Proposal for Executive and Staff Search December 13, 2006 Page 3 of 7 Negotiate Terms and Conditions of Employment Koff & A ' ' ' ssoctates, Inc. at the Ctty s request, is available to assist in the negotiation of the final terms and conditions of employment. Maintain Regular and Ongoing Communications Our #1 priority is meeting the needs of the City. Regular, on-going dialogue with the City is integral and critical to successfully managing a recruitment campaign. Gail Koff Managing Director Gail Koff, Principal of Koff & Associates, Inc. for 21 years and now its Managing Director, has over thirty (30) years of human resource management experience, 27 years of which have been serving the needs of public agencies. Gail's prior experience, after receiving her degree from Boston University, includes serving as the Personnel Director for one of California's largest sanitary districts, Central Contra Costa Sanitary District as well as the Personnel Director for the California College of Arts and Crafts. She has spent the last twenty one (21) years in her own firm providing consulting assistance to cities, counties and special districts (housing, transit, water, wastewater, hospital, school, community service, air quality management, tim, etc.). She specializes in strategic development; labor/management issues; classification and job analysis; compensation design and pay for performance strategies; executive search; employee handbooks and policy direction; performance management; and organizational efficiency issues. Gail is familiar with the unique problems of public agencies and has worked extensively with publicly elected Councils, Boards, Commissions, numerous unions, management and employee groups. Gall works closely with the staff throughout the entire process to ensure success. She is actively engaged throughout the recruitment efforts to ensure quality control, timeliness and meeting client expectations. Catherine Kaneko, C.P.A., P.H.R. President Catherine brings over thirteen (13) years of management level human resources experience to Koff & Associates, Inc., both as a human resources director and as a management consultant in the hi-tech industry as well as the public sector. She has extensive experience in compensation including equity plans, survey design and reporting, recruitment in both the public and private sector; staffing; classification and job analysis; compensation and job evaluation techniques, employee relations, retention strategies, infrastructure development; coaching; policy and procedure development; mergers and acquisitions; change management and employee training. With a Bachelor's Degree in Business Administration, Catherine started her career as a Certified Public Accountant (CPA) in an international accounting/consulting firm. She transitioned into Human Resources within the firm to become the Human Resources Director of the San Francisco office. She (~41( Hot i, Stet'el. Suile 5 Fnle~ille. CA 94608~1013 TEL 510/658 5633 FAX 510/652 5633 Proposal for Executive and Staff Search December 13, 2006 Page 4 of 7 then moved into the hi-tech industry where she served in leadership positions for high-growth, startup, and organizations in transition. Her primary focus in recent years has been in classification, compensation and recruitment services in the public sector. Catherine's experience provides a broad knowledge of human resoume management within diverse organizations. Her background provides her a strong ability to understand the big picture, identify problems and solutions and effectively implement them. Her skill set complements our current consultant base with additional levels of service areas. Georg S. Krammer, M.B.A,, S.P.H.R. Chief Executive Officer Georg brings over eight (8) years of management-level human resources experience to K&A with an emphasis in classification design; market salary studies; executive and staff recruitment; performance management; organizational development; and employee relations, both in large corporations, small, minority-owned businesses and public sector agencies. After obtaining a Master's Degree in English and Russian and teaching credentials at the University of Vienna, Austria, Georg came to the United States to further his education and experience and attained his MBA from the University of San Francisco. After starting his human resources career in Wells Fargo Bank's college recruiting department, he moved on to human resources management positions in the banking and high-tech consulting industries. With his experience as a well-rounded senior HR generalist and his education in business and teaching, Georg's contribution to K&A's variety of projects greatly complements our consulting team. Since joining K&A, Georg has worked on multiple classification and compensation projects for over 30 clients in the public sector and has taken an active leadership role in many of our classification and total compensation studies. Milana Targan Firm Associate Milana brings her public sector experience in classification and compensation to Koff & Associates, Inc. With a bachelor's degree from USF and a Master of Science in Industrial/Organizational Psychology from San Francisco State University, Milana has had extensive experience in job analysis, classification development, compensation data gathering and analysis and completing special projects relating to a variety of human resources issues. Her experience also includes conducting specific job analysis for the purpose of developing validated test questions for public sector entrance and promotional examinations. Milana's experience includes working for a human resources consulting firm with a specialty in affirmative action as well as working for the California Public Utility Commission conducting job analysis, classification development, market salary analysis and human resource management program design. Since joining K&A, Milana is actively engaged in classification studies, market salary surveys and manages many of our executive search and recruitment activities. 641~) Hollis SlrtWI. Suilt' S. Emeryville. CA 94008-1613 TEL 51(I/658 5633 [:AX 510/652 5633 Proposal for Executive and Slaff Search December 13, 2006 Page 5 of 7 Jeremy Hannah Firm Associate Jeremy, the newest member of our firm, earned his bachelor's degree in Psychology with a minor in General Management from California State Polytechnic University, Pomona and will be completing his Master of Science in Industrial/Organizational Psychology in May 2006. After working for five (5) years in management in private organizations, Jeremy moved into the public sector to work for the California Public Utilities Commission performing job analysis, designing selection examinations, conducting employee opinion surveys, and developing human resource management processes. He has extensive data gathering and analysis experience making him a welcome addition to the Koff & Associates team. Jeremy has been actively engaged on several classification and salary survey projects since joining our team. Koff & Associates, Inc. has been assisting public-sector agencies for the past 22 years. We have extensive experience working in both union and non-union environments (including serving as the management representative in meet & confer meetings), with Merit Boards, Boards of Directors, County Boards, Civil Service Commissions and City Councils. The firm's growing list of clients is indicative of its reputation throughout California as being a quality organization that can be relied upon for producing comprehensive, sound and cost-effective recommendations and solutions. Koff & Associates, Inc. has a reputation for being "hands on" with the ability and expertise to implement its ideas and recommendations through completion in both union and non-union environments. More specifically to this project, the firm has over 20 years of executive and staff search experience. Some recent examples of recruitment efforts conducted by Koff & Associates, Inc. are: District Manager Engineering Manager Manager, Engineering Services Senior Engineer Technical Services Manager Project Engineer Associate Engineer Finance and Administration Manager Administrative Services Manager Finance Manager General Manager Chief Financial Officer Business Services Manager Division Manager, Human Resources Administration Recruitment & Benefits Manager Vice President, Human Resources Safety Officer District Superintendent Employment Training Manager, NOVA Administrative Assistant As a small firm, we rely exclusively on the recommendations and referrals of current clients to attract new clients. Our work speaks for itself and our primary goal is to provide professional and technical consulting assistance with integrity, honesty and a commitment to excellence. Our goal is to work closely with the City to identify appropriate professional organizations, societies and other resources from which to solicit qualified candidates. We then rely upon direct mail recruitment efforts, website and other advertising networks to attract an extensive targeted audience. Proposal for Executive and Staff Search December 13, 2006 Page 6 of 7 We have particular expertise with administrative positions and would use our many personal contacts, professional organizations, professional newsletters and website locations to maximize the exposure of this recruitment effort. The recruitment engagement will entail well in excess of 100 hours of effort. Documented reimbursable expenses include newspaper, Internet and journal advertisements, recruitment brochure set-up and printing, postage, telephone, security and credit check, and clerical support. These expenses are anticipated to be approximately $5,000 (due to the required extensive advertising campaign for this type of position). All reimbursable expenses are passed through directly to the City with no additional markmp. Any costs associated with reimbursing candidates for attendance at the Oral Board will be borne directly by the City (assuming that the City desires to assist in candidate reimbursement). Should the employment of a candidate placed by Koff & Associates end before one year from their initial start date, Koff & Associates will replace that candidate at no additional cost, except for reimbursable expenses. Shown below is a schedule that is suggested for conducting the recruitment effort. Our experience has been that a recruitment effort takes about three months to complete, allowing enough time for all the steps of the process, including one month of advertising. This should fall exactly within the timeline desired by the District. This timeline allows for four weeks of advertisement, including two issues of Jobs Available. It has been our experience that providing a Final Filing Date of less than one month from the initial advertisement does not allow enough time for exposure of a significant enough candidate pool. Key Target Points: By: Contract awarded: K&A develops recruitment brochures: District approves brochures: Jobs Advertised: K&A Reviews Application Packets: District reviews/approves candidate pool: Oral Panel Convenes: Second Interview by District: Reference/Background Checks: Offer of Employment: Start Date: September 25, 2006 October 2, 2006 October 9, 2006 Final Filing Date: November 13, 2006 (4 weeks) November 17, 2006 November 21, 2006 Week of December 4, 2006 December 11, 2006 December I 1, 2006 December 15, 2006 January 1, 2007 The timeline is driven somewhat by the issue dates of the Jobs Available, which are every other week on Monday (with a deadline to submit ads by noon on the prior Tuesday). Other than that, we are flexible to speed up the process in some areas, depending on District needs. 64(~1 Hollis Slrccl. Suite 5. Emcr3ville. CA 94608 1613 TEL ~ 111/658-4633 FAX 51(I/652 563~ AGENDA ITEM NO: 11k MEETING DATE: Dec. 20, 2006 SUMMARY REPORT SUBJECT: POSSIBLE APPROVAL OF SETTLEMENT AGREEMENT IN UKIAH VERSUS MATTERN SUMMARY: This item involves a proposed settlement in Ukiah v. Mattem, Court of Appeal Case No. A112897, Mendocino County Superior Court Case No. CV94844. The settlement is the subject of a closed session on this agenda. After the closed session, the City Council may discuss and take action on this matter in open session. RECOMMENDED ACTION: Discuss and consult with legal counsel in closed session, followed by appropriate action in open session. ALTERNATIVE COUNCIL POLICY OPTIONS: N/a Citizens Advised: Requested by: Prepared by: Coordinated with: Richard and Donna Mat-tern David J. Rapport, City Attorney David J. Rapport, City Attorney Candace Horsley, City Manager Approved: ' ~ ~,~ndace Horsley, C~y Manager Exhibit A I. Project: Initiation Team members will conduct a kickoff meeting with City staff in order to refine the scope of work, obtain related information and rfiapping and determine a strategy for the data collection. Fotlowing the kickoff meeting, an updated scope of work and budget will be submitted. The Downtown Master Plan, Downtown Parking Improvement Plan and the Ukiah General Plan wltl ali . be reviewed. Parking policies and other related parldng operations and activity will be noted from these previous reports. 5. Field Inventory W-Trans engineering staffwill condudt a field review including field notes and video record. This review will be used to set up a crew of field technicians. The following information witl be acquired in the inventory within the parking districtz the total number of off-street and on-street parking spaces indication of privately owned, public parking spaces within the district location of existing time zones meter locations municipal lots diagonal parking locations street widths parking lot dimensions A parking occupancy survey will be conducted during both a Monday ~nd Tuesday weekday in which courts are in session. Surveys will be conducted from I 0:00 a.m. to 3:30 p.m. on both days. Surveys will be conducted for both on-street and off-street lots in the study area. License plates for selected locations wilI be recorded to determine average occupancy for areas of the downtown. The City's aerial mapping will be used to identify ail on-street parking and off-street Iot~. If the City has a GIS street system already set up, the surveys will be included in a GIS based format which will include aerial mapping, symbols for time control, diagonal parking, meters, permit p~rking indication of land use, etc. 3. Existing Parking Demand Rates The survey will be analyzed to determihe the following parking operational issues: · peak parking occupancy by lot, block and the district as a whole approximate parking duration for areas of downtown average use in permit parking areas use of metered parking vs. free parking areas In order to determine the parking generation rate for downtown (i.e., the rate of vehicles parked during the peak per thousand square feet of building space, existing land use will be obtained from City staff. This database should be available from the City's current traffic model effort. Usingthe land use, parking occupancy totals and starting with standard parking generation rates for mixed use areas, base parking generation rates will be calculated. This data will be important for the future parking projections. 4. ~:xamine Parking Policies Existing policies from the Downtown Master Plan, Downtown Parking Downtown Ukiah Parking Improvement Study incorporating street front building space. DKS will coordinate this tzsk. 12. Costs and Funding DKS will determine plznning level cost estimate for the recommended solutions. Potential funding sources and finencing strztegies wiJl be discussed. 1 3. Public Workshop #2 W-Tr~ns will coordinate z second public workshop to present the final recommendations for existing conditions and potential solutions to address future changes in Downtown. 14. Draft Report Up to ten (10) copies of a dr~ft report including zn electronic copy will be submitted. ~ 5. Council P~esentation The project manzger, Steve Weinberger, will present the findings Bnd solutions to the public ~t z City Council meeting. 1 6. Final I~epor~ Bzsed on comments received at the City Council meeting, the Draft I~.eport will be updated. Up to twenty-five (2.5) copies of the final report including Bn electronic copy will be submitted. I ?. Staff Mee¢Jn~s The process includes three (3) ~ddidonzl meetings beyond the initial kickoff meeting. Steve Weinberger will zttend this meetings to explore strategies to improve the project outcome with City staff. Downtown Ukiah ParkJng Improvement Study August 23, 2004 Ms. Patsy Archibald City of Ukiah 300 Seminary Avenue Ukiah, CA 95482 Contract Amendment to Evaluate Potential MTA Sites Within the Downtown Ukiah Parking Study A]-rACHMENT ~ w-t ra Whitlock & Weinberger Transportation, Inc. 509 Seventh Street Suite Santa Rosa~ CA 9540 I voice 707.542.9500 fax 707.542.9590 web www.w-trans.corn Dear Patsy; Following is a proposed scope of additional services for the Downtown Ukiah Parking Study, focusing on the evaluation of potential transit center sites within the downtown area. This following tasks were developed based on conversations with you as well as information received from Bruce Richard at the Mendocino Transit Authority. I. We will review prior analyses and reviews of potential downtown transit center sites, as well as coordinate with the City and MTA to determine what sites are currently under consideration. Parking demand data available from our ongoing work on the Downtown Ukiah Parking Study will be analyzed to determine where there might be existing on-street parking areas that are underutilized. Such areas would have the least impacts associated with elimination of parking spaces. We will perform a preliminary evaluation of these sites to determine if adequate street width and curb frontage exists for MTA's needs. Any apparent parking or circulation impacts, such as the need to relocate or avoid driveways, will be noted. A rough sketch showing the locations of potential transit centers will be prepared for discussion purposes. Locations will include any identified by MTA, the City, and W-Trans from our preliminary review. We will meet with City and MTA staff, either in person or by conference call, to discuss the resulting list of potential transit center sites. We would hope at this point to narrow the list to three or four potential sites that will need to be further analyzed in terms of determining potential parking impacts within the downtown area. A parking analysis will be prepared for each of the three to four potential sites. Results will indicate the number and type of parking spaces lost, the likely locations where this parking activity will shift, and the potential parking supply impacts associated with that shift. Any potential to regain additional parking supply to offset the lost spaces will be identified. The analysis will also note any potential concerns related to bus circulation into and out of each location. Ms. Patsy Archibald Page 2 August 23, 2004 A draft letter describing the results of our analysis will be prepared. A bulleted list of pros and cons will be prepared for each of the locations, shown graphically over an aerial photo of the downtown core. The letter will be updated as necessary to incorporate comments by City and MTA staff, finalized, and sent to you. If desired, the results of the analysis will be incorporated into the text of the Downtown Ukiah Parking Study. The estimated maximum fee for this additional work is $6, 100. This type of analysis typically takes several weeks to complete, though we would work with you and MTA to meet any deadlines you may have. Enclosed are two copies of our standard contract amendment. Please sign and return one if you wish to initiate work, or provide us with the forms needed by the City to complete the amendment This proposal will remain a firm offer for 90 days. Thank you for giving W-Trans the opportunity to propose on these additional services. ~-~Zachary Matley, AICP JZM/sjw/UKI030.Tr~nsit~P2,wpd Enclosures REG' Nov - (~ O ~:~)y Project Number: UKI030 CONTRACT AMENDt4ENT This Amendment, entered into on ., by and bec~veen Whitlock & Weinberger Transportation, Inc., hereinafter referred to as W-Trans, and the party whose name and address is: Firm Name: Street Address: Plailing Address: City and State: Telephone: FAX: Attention: City of Ukiah 300 Seminary Avenue same Ukiah, CA 95482 (707) 463-6225 (707) 463-6204 Ms. Patsy Archibald hereinafter referred to as Client. Regarding the Project, the Client and W-Trans agree on the following: A.W-Trans agrees to perform the additional services as detailed in the attached letter or scope of services dated August 23, 2004. B. The original contract amount is revised as follows: Original Contract Amount $ 40,000.00 Amendment I Amount: $ 6,100.00 Total Contract Amount: $ 46, 100.00 C. All standard provisions of the original contract between the client and W-Trans dated November 15, 2003 remain in effect. In Witness Whereof, the partners hereto have accepted, made and executed this amendment. By: Title: Date: August 23, 2004 ATTACHMENT ADDENDUM TO AGREEMENT FOR PROFESSIONAL SERVICES This agreement, effective as of I ~ I ~ ,2006 ("Effective Date"), amends the Agreement for Professional Services-Preparation of a Downtown Parking Improvement Study for the City of Ukiah, entered on November 15, 2003 ("Agreement"), as amended on October 28, 2004 ("Amendment"), between the City of Ukiah ("City"), a general law municipal corporation, and Whitlock and Weinberger Transportation, Inc. ("W-Trans"), a California corporation in good standing. 1. An additional scope of services is added to Section 1.01 of the Agreement, as set forth in the letter dated October 28, 2006, a tree and correct copy of which is attached hereto as Exhibit A and incorporated herein. 2. Section 5.02 of the Agreement is amended to include as compensation for the scope of services set forth in Exhibit A, an amount, not to exceed $6101.40, to be billed at the rates set forth in the 2005 Staff Billing Rates and 2005 Expense Charges, attached to Exhibit A. 3. Except as expressly amended in paragraphs 1 and 2 above, the provisions of the Agreement remain in full force and effect between the parties as to the scope of work set forth in Exhibit A. Wherefore, the parties have entered this Addendum on the Effective Date. W- TRANS Its: _ CITY OF UKIAH Candace Horsley, City MABager A'I-rACHMFJ~r'_ z~ October 20, 2006 Mr. Don Ballek Economic Development Coordinator City of Uki~ih 300 Seminary Avenue Ukiah, CA 95482 Ukiah Downtown Parking Study - Re-initiation Dear Don; \~/hitlod~ & Weinberger Following our meeting both here in our offices and at the City of Ukiah and subsequent communication, W-Trans is pleased to present this proposal to finalize work on the Ukiah Downtown Parking Study. As we discussed, W-Trans had been put on hold with the project some time ago due to the Citywide Traffic project which was evaluating the potential for one-way streets in downtown. Also, during the initial process, there were several 'detours' in the project which led to investigations beyond our scope, These conditions have resulted in a limitation of the remaining budget. Based on our discussion, this proposal focuses on completing a report with recommendations which would apply current and future parking deficiencies. Our remaining budget is currently $6,101.40 from our previous contract which has now expired. This proposal presents a scope of work that fits within that budget, using W-Trans 2005 billing rates. Scope of Work Summarize Findings to Date - W-Trans will submit a document containing the base parking conditions and draft recommendations previously submitted. City staff should review this document prior to our site visit. Meeting/Drive-Thru - W-Trans will conduct a drive-thru with parking enforcement officers to review current problems in the downtown related to parking supply, permits and parking demand. At the time of this drive-thru, we would like to review the document and previously submitted recommendations with City staff to determine if any still are applicable. Future Parking Demand - The City will provide W-Trans with an estimate of existing and future land use within the downtown district by subareas. This information will be used in combination with the GIS data to estimate the future parking demand and impacts to existing p~rking facilities. Update Solutions - Using the previously submitted recommendations as a base, a list of updated solutions to address the parking deficiencies will be compiled. The solutions could consist parking management, enforcement and/or engineering solutions. Parking management solutions could include a change in supply of permit parking, elimination of permit parking assigned spaces, etc. Mr. Don Ballek Page 2 October 20, 2006 Enforcement solutions could include change of time restrictions, use of meters, etc. Engineering solutions could include recommendations for parking restriping to diagonal parking, a parking guidance system, restriping of existing lots, and types of parking meters and/or kiosk type machines. It should be noted that these solutions will be presented qualitatively. Any level of detail needed to carry the concept to implementation will require _an amendment to the contract. 5. A draft report will be prepared and emailed. 6. Discussions will be conducted with staff in order to obtain comments on the Draft Report. 7. Based on comments received from City staff, the Final Report will be prepared. Up to ten (10) copies of the final report including an electronic copy will be submitted. 8, W-Trans would present the final report to the City Council. Please note that W-Trans compiled all of the existing parking supply and demand information in the City's GIS system, This information should be useful as the City updates parking supply and permit conditions. As part of this process, we will forward the GIS data to you and your staff. Proposal Limitations This proposal does no__~t include the following: · new field inventory or update to Existing Parking Conditions plans for reconfiguration of parking spaces plans for any new parking facilities detailed specifications for new equipment This proposal is a firm offer for a 90-day period. Please forward a Purchase Order or contract if you wish to initiate these services. Thank you for allowing us to provide this proposal. Since, rely,'~ einberger, P.E, SJWIUKIO30.P3 Enclosure: 2005 Fee Schedule Fee Schedule 2005 Staff Billing Rates Position Billing Rate (per hour) Principal $160.00 Senior Associate $140.00 Associate $125.00 Senior Engineer/Planner $1 lO.00 Transportation Engineer $105.00 Transportation Planner $ 100.00 Assistant Engineer/Planner $75.00-80.00 Drafter $75.00 Technician/Administrative $65.00 Field Technician $15.00-$35.00 w-trans~ 2005 Expense Charges Item Charge Mileage $0.50/mile Services and Expenses 10% surcharge These rates are vapid for any work initiated prior to December 31, 2005. New work initiated after January I, 2006, and any subsequent year may be billed at the revised rates established for that year.