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HomeMy WebLinkAbout2005-04-06 Packet CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 April 6, 2005 6:30 p.m. 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. PROCLAMATION a. Sexual Assault Awareness Month - Project Sanctuary Christine Hance 4. APPROVAL OF MINUTES a. Special Meeting Minutes for March 2, 2005 b. Special Meeting Minutes for March 14, 2005 c. Regular Meeting Minutes of March 16, 2005 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 citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Adoption Of Resolution Approving City Of Ukiah Qualified Contractors List For 2005 b. Reject All Bids For Replacement/New Computer Equipment and Printers c. Adoption of Ordinance Amending the City of Ukiah's Police-Only PERS Contract To 3% @ 50 d. Adoption of Ordinance Rezoning APN 003-29, 50, 66, 85, And 86 To R-3 (High Density Residential) e. Status Report Concerning Consultant Services Contract For the Preparation Of An Environmental Impact Report For the Ukiah and Millview County Water District Water Rights Permits/Licenses Amendment Project f. Report to the City Council Regarding the Rental of Space From Doug Adams dba: Skate City, for the Use of the Building For the 2004/05 Youth Basketball Program in the Amount of $5,800. g. Approval of Lease Agreement for Hangar "F" at the Ukiah Regional Airport 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS The City Council welcomes input from the audience. If there is a matter of business on the agenda that you are interested in, you may address the Council when this matter is considered. If you wish to speak on a matter that is not on this agenda, you may do so at this time. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more than ten (10) minutes per subject. The Brown Act regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda 8. PUBLIC HEARING (6:45 P.M.) a. Adoption of Resolution Establishing the Water Rate Schedule For The Fiscal Years 2004-2005 (Commencing May 1,2005) Through 2008-2009 b. Approval of Menton/Ruff Site Development Permit No. 04-30 And Rocha/Ruff Site Development Permit 04-33 c. Adoption of Resolution Authorizing Application For a Two Year Allocation of Community Development Block Grant Funds In The Amount of $1,000,000 and Authorizing the City Manager to Execute All Related Documents UNFINISHED BUSINESS a. Discussion and Possible Introduction of An Ordinance of the City Council of the City of Ukiah Amending Various Sections of the Ukiah City Code Contained in Division 4, Chapter 1, Entitled: "Water" b. Discussion and Possible Action Regarding Proposed Mid-Year 2004-05 Budget Amendment 10. NEW BUSINESS a. Request Authorization For the City Manager to Negotiate and Execute a Professional Services Contract With The Redwood Empire Officials Association For Adult Sport League Officials and Scorekeepers b. Adoption of Resolution of the City Council of the City of Ukiah Opposing Suspension of Proposition 42 Funding c. Award of Bid to KG Walters for Construction of the Water Treatment Plant Improvement Project in the Amount of $7,172,000 d. Receipt of Audited Financial Statements For Fiscal Year 2002-2003 e. Approve Extension of Contract With Davis Hammon & Co. CPA For Financial Audit Services For The Fiscal Year Ended June 30, 2005 In An Amount Not To Exceed $33,425.00 And Authorize The City Manager To Sign The Extension 11 .COUNCIL REPORTS 12. CITY MANAGER/CITY CLERK REPORTS 13. CLOSED SESSION 14.ADJOURNMENT The City of Ukiah complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. PR 0 CLAMA TI O N W'HEREA~, :;(~xtz:,l a,;sc!'~lt i.~; a,t intol{¢rablc v!olent (rime ~gt~', publ~ health implicagons for eve~,peri:,m i~ the ~ty ¢~r Ukiah as a ld(:i~im/s~a iJiuor, a ]hmily member, significant other, neighbor or { o worker; rind No one per'SOn, orq~t't~atior~ agcnc~ or commu'~ty cat~ e,Iiminate sepal ~sault on to prevent sepal assauI[ suppo~ viOlin/survivors and their sign~cant or.rs, and increase sttppo~ for ageacges pro~ding scr~ces ~o ~cgms; and ~oject Sanc~a~ 1ms ied t~ way in ~dressing se~ ~sault by pmddi~ 24-~ur ~tline ser~ces to ~c~ms and their significant or.rs, responding to e~rgency coils, offering ~ppo~ and comfo~ to rinse i~acted b~ s~al assault, and empo~dng t~se su~ng s~al assault to c~ t~ir owa course for healing; and E~ing se~a~ assauIt in the ~ty of ~iah must include aciive pubiic and pdvate effo~ to Speak Out Aqai~t Se~al Violence inciuding conversation about w~t sepal dolence ~, ~w to prevent it, how to heip sumvors conne~ ~th cmdai counseling a~ ot~r suppo~ serdces, and how eve~ segment o four sode~ can ~rk tog~her to be~er address sepal violence; and ~ojecl San~a~ ~s set an. ~po~ant exa~le of how forging coilabom~ve miaffons~ps be~een se~ce agendes and o~an~affo~ serves,to i~rove t~ ~ali~ of se~ce for t~se ~st pro fou~ly and dire~ly impaled by sepal doien~, t~s se~ng an impo~ant exa~ie for ~ t~ rest of t~ community might work togetherto speak out and find sotu~ns to sepal dolence; and ~je~ San~a~ re~esB public suppo~ a~ ~s~tance ~ it ~nffnues its effo~ to b~g real ~pe forpeeing our communi~ pom t~ tr~edy of sepal ~len~ and create a ~mre where all women, men, and c~ldren can li~ free fmm ~lence and ~ploitaffon. ~W~ T~, ~ Mark Ashi~, Mayor of the ~ of ~a~ on be~of my fellow ~ Coundl~mbers Phil Bald~n, Jo~ McCowe~ Mad Rodi~ and Doug Cm~, do hereby pmclaim April 2005 as SEXU~ ASSA~ T A W~S MOtH commend this observance to all citizens, and encourage everyone's participaiion in "Denim Day, April 27 and Walk A Mile In Her Shoes , April 23. Date: April 6, 2005 Mark Ashiku, Mayor 3/t MINUTES OF THE UKIAH CITY COUNCIL SPECIAL MEETING WEDNESDAY, MARCH 2, 2005 The Ukiah City Council met at a Special Meeting on March 2, 2005, the notice for which being legally noticed, at 6:00 p.m. Roll was taken and the following Councilmembers were present: Crane, McCowen, Baldwin, and Mayor Ashiku. Councilmember absent: Rodin. Staff present: Community Services Director DeKnoblough, City Manager Horsley, City Attorney Manager Richey, Community Services Supervisor Sangiacomo, Public '/City Engineer Steele, Planning Director Stump, Public Utilities ~ianek, and City Clerk Ulvila. BALLOT MEASURE Adoption of Revised Resolution No County Board of Suoervisors to the Special Municipal Election of of Ukial and To Consolidate Said Election Same Day Dick Seizer stated that he is Employers Council and they sunset clause is no more than ten behalf not tc Re~ Mendocino Conduct a Election H On That of the Mendocino County the ballot measure if the City Attorney Rappol clause is contained that agenda item, · the of 1 ;)n the agenda. The sunset When Council gets to Ordinance before adopting it. M/S Baldwin/Mci Mendocino Special the roll c~ fiku. NOES: 2. MEASUF 2c. Ado Code I~ State Boa 2005-35 Requesting the uest the County Clerk to Conduct a the City on Tuesday, June 7, 2005, and To Other Election Held On That Same Day, carried by Councilmembers Crane, McCowen, Baldwin, and None. ABSENT: Rodin. of Division I of the Ukiah City and Use Tax to be Administered By the Councilmember C~ e recommended Council consider changing the sunset clause to 10 years. He was of the opinion that the Employers Council would be willing to not oppose a 10 year sunset clause but would be highly opposed to a longer duration. Councilmember McCowen agreed that a 10-year sunset clause, without opposition from the Employers Council, would be beneficial in passage of the ballot measures. However, he preferred that the Employers Council pledge that they would not oppose the measures if the sunset clause was changed to 1 O-years. Special Ukiah City Council Meeting March 2, 2005 Page 1 of 3 Mr. Seizer stated that he is speaking for four of the nine directors on the Employers Council and they have agreed to not oppose the sales tax measure with a 10-year sunset clause. He explained that he could not speak for the Employers Council as an entity because its members are located throughout the County of Mendo¢ino. He stated that the Employers Council would take a "no position" stance on the ballot measure. The four members of their Board that live in Ukiah voted in that manner. Councilmember McCowen inquired as to the meaning of "no position". Mr, Seizer stated that "no position" meant if the media Employers Council that he could only say that they measure. comment from the ~ken no position on the M/S Crane/McCowen adopting Ordinance No. 1 of the Ukiah City Code Imposing a the State Board of Equalization, and chan( imposed by this Ordinance shall be re (10) after the Operative Date", carried Councilmembers Crane, McCowen ABSTAIN: None. ABSENT: Rodir Adopting 8C of Division nd Use Tax to dministered By ~tion 1749: REPEA tax force and roll call AYES: Ashiku. NOES: None. Councilmember Baldwin read a showing their trust in the C Council to the citizens of Ukiah in the last two elections. City Attorney Rap[ the mechanism fo March 15, review the measure. due the are due at the County and ~ittal of ballot arguments. The deadline of lded Council select a subcommittee to of the ballot measure and advisory and against the ballot measure are It and suppor City Council to delegate Councilmembers Rodin to review the language of the arguments in and to meet prior to the next Council meeting. John be an advisory measure on the ballot. City Attorney Ral )onded affirmatively. BALLOT MEASURE Adoption of Resolution Callin,cI Special Election For June 7~ 2005 on One Ballot Measure and One Advisory Ballot Measure~ Transmitting Measures to City Attorney for Impartial Analysis and Establishin.cI Deadline for Arguments For or Against the Measures M/S McCowen/Crane adopting Resolution 2005-36, Calling Special Election For June 7, 2005 on One Ballot Measure and One Advisory Ballot Measure, Transmitting Measures to City Attorney for Impartial Analysis and Establishing Deadline for Special Ukiah City Council Meeting March 2, 2005 Page 2 of 3 Arguments For or Against the Measures, carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: Rodin. 3, ADJOURNMENT There being no further business, the City Council meeting was adjourned at 6:35 p.m. Marie Ulvila, City Clerk Special Ukiah City Council Meeting March 2, 2005 Page 3 of 3 MINUTES OF THE UKIAH CITY COUNCIL SPECIAL MEETING WEDNESDAY, MARCH 14, 2005 The Ukiah City Council met at a Special Meeting on March 14, 2005, the notice for which being legally noticed, at 5:03 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Crane, McCowen, Rodin, Baldwin (arrived at 5:06 p.m.), and Mayor Ashiku. Staff present: Risk Manager Archi Director DeKnoblough, City Manager Horsley, Finance Dir Rapport, Community Services Supervisor Sangiacomo, Public Works Director/City Engineer Steele, Plannin~ Director Ziemianek, and City Clerk Ulvila. Community Services City Attorney Director Smith-Ferri, Public Utilities 2. SPECIAL PRESENTATION City Manager Horsley announced that selected as Employee of the Year. She ethic in her function as Payroll Officer and wo MS. ElizaBeth d has been ~rland's attr and work ElizaBeth McFarland, that she enjoys working empl( the City Council and stated 3, DISCUSSION AND APPR( MEASURES ON JUl Two options for a Ballot Argument" the Rodin to the IN FAVOR OF MUNICIPAL ELECTION ~d one for an "Advisory Measure consisting of Councilmembers Council for review. A numl the ~1 cial status chan( safety sh( the measure. would be used th Council and City Staff. There was stablishment of a "sunset clause" and the as it relates to the City's future financial status, the City maintaining the current level of service for were made by Councilmembers with regard to s. It was the consensus of the Council that public ,riority for the expenditure of funds derived from the tax blic regarding the City's budget status and how the funds measure was deemed paramount. Council discussed le proposed Advisory Measure; its purpose and whether or not it was needed. It was the opinion of the City Attorney that the Advisory Measure should explain the measure to the public and why Council is putting Measure S on the ballot. Fire Chief Latipow explained that there are two unions for Fire Department personnel and the unions are lending their support based on the City Council's last meeting in which Council approved the advisory language that would be on the ballot stating that public safety would be the first priority for expenditure of funds received from the tax measure. If the language is changed dramatically, the firefighters may want to take the new wording back to their group for a vote. Special Ukiah City Council Meeting March 14, 2005 Page 1 of 2 During discussion it was noted that, although public safety services rank high, other situations may arise that need financial assistance, such as street repairs, and concern was expressed that the entire amount of the proceeds from the tax not be designated for public safety but to allow for other important expenses that may arise in the City. It was the consensus of the Council to change the wording of the last paragraph, as suggested by Councilmember Baldwin, to "Vote YES on Measure T to tell this and future City Councils that public safety is your first priority fo new sales tax revenue generated by Measure S". The remainder of presented for Advisory Measure T should remain as presented. Discussion followed with regard to potential sign directed Staff to contact these individuals, safety unions, and obtain signatures by tomor the Council that these individuals could supports Measure S?" ument and Council Ukiah and public consensus of under "Who John Latimore, Chairman of Board of the explained that he could not ballot measures until the was taken of their Board of Directo ballot measure. Chamber of Commerce, full endorsement of the However, an informal poll majority in support of this After a brief Council to chan( "Antiquated", to the document and should si( consensus of the Argument in Favor of Measure S from with regard to who should sign ;ouncil that the Mayor and Vice-Mayor It Ball~ arg of the Council to accept the general language for ~ on the ballot for the June 7, 2005 Special Municipal authorizing Councilmember McCowen and City , final changes to the endorsers and signers of the ballot There being no fu Jsiness, the City Council meeting was adjourned at 6:30 p.m. Marie Ulvila, City Clerk Special Ukiah City Council Meeting March 14, 2005 Page 2 of 2 MINUTES OF THE UKIAH CITY COUNCIL REGULAR MEETING WEDNESDAY, MARCH 16, 2005 The Ukiah City Council met at a Regular Meeting on March 16, 2005, the notice for which being legally noticed, at 6:35 p.m. Roll was take Councilmembers were present: Crane, McCowen, Rodin, Staff present: Community Services Director DeKnoblough, Jamison from the Water Treatment Plant, City Manag, Harris, MIS Coordinator Klingbeil, Associate Planner City Attorney Rapport, Airpor~ Manager Richey, Sangiacomo, Planning Director Stump, Recording Secretary Elawadly. and the following and Mayor Ashiku. Captain Dewey, Alan Personnel Officer Director McCann, Supervisor Direct( mianek, and 2. PLEDGE OF ALLEGIANCE Councilmember Baldwin led the Pledg 3. APPROVAL OF MINUTES 3a. Re.qular MeetinR M/S Crane/Baldwin approving the meeting as presented, car the Crane, McCowen, Rodin ABSENT: None. U~ 9, 2005 City Council Councilmembers None. ABSTAIN: None. 3. APPR~ 3b. ular Meetir Minutes cor Paragrapi' Meetim Baldwin spellin~ 2005 - Traffic Circulation Study the following change to the minutes: assimulate to assimilate. Councilmembe Paragraph 1, first "one lane in both dire the following change to the minutes: wording from "one lane travel in both directions" to M/S Rodin/Crane approving the minutes of the January 19, 2005 City Council meeting as amended, carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 4. RIGHT TO APPEAL DECISION Mayor Ashiku read the appeal process. 5. CONSENT CALENDAR Councilmember Baldwin recommended further discussion of Consent Calendar item Regular Ukiah City Council Meeting March 16, 2005 Page 1 of 12 M/S Baldwin/Rodin approving items "a" through "e" and "g" through "p" of the Consent Calendar as follows: Item 5 'fi" will be heard as the last item on the agenda. a. Approved Disbursements for Month of February 2005; b. Received Notification of the Bid Award to Pioneer America, Inc. to Supply Chlorine to the City Water Treatment Plant; c. Approved Budget Amendment of $7,656.90 to the Expansion Project, Account #840-3850-250-000, for Services by Miller Engineering Group; Approved Acquisition of E-Mail Spam Filtering Requested Apl Awarded Bid for Purchase of Patrol Car Harper Ford Country; Awarded Bid to Healdsburg of Topsoil in the Amount of $13 Ukiah Softball Complex; Received Notification of Purch House & Store the Artifacts In the Amount of Received Notification of in the Amount of $8 Awarded Bid Pun of Awarded Pul of Ferri, in the Awarded in irials For ~nt of ,uncil Re¢ of Pon' ;loundMark and 691.46 to Yards at the Maslin to Properly Baskets and Other 3 "A to Z" Construction Chevrolet in the Amount hloride Solution to Kemiron Companies, Inc. to Basic Chemical the Award of Bid to Pace Supply 409.78 For Materials to Upgrade the Water Main Req~ adget AmE the Ukiah Awarded Bi in the Amount Softball Complex. g Software And Installation Services and nent in Amount of $12,557.03; of Emergency Repair of Runway Lights at )rt in the Amount of $5,038.77 From Republic Electric; c. for the Purchase and Installation of Sod 115 for the Construction of a Third Field at the Ukiah Motion carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 6. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Warren Sawyers commended Council and the Ukiah Police enactment/enforcement of the City panhandling Ordinance. Department for the Mayor Ashiku polled the Council/audience to determine the most effective order in which the agenda items should be discussed/considered. Regular Ukiah City Council Meeting March 16, 2005 Page 2 of 12 7. PUBLIC HEARING 7a. Adoption of Resolution Amending the General Plan Amendment Land Use Classification and the Introduction of an Ordinance Changing the Zoning e considered. Districts For Four Contiguous Parcels Planning Director Stump stated the Planning Commission recommend that the City Council adopt the Mitigated Negative the General Plan Amendment/Zoning Change No. 04-32, Amendment/Zoning Change No. 04-32 to change the designation for the project site to High Density Associate Planner Lohse stated the General PI; required in order for a 32-unit apartment comp land use designation for the two lots making will be changed from a mix of C to HDR (High Density Residential) and the zonin~ (Community Commercial) and R-2 Residential). The General Plan will be changed from MDR (Medium to R-3 (High Density Residential). Amendment and Re-zone represented by the chan, unanimously to prepared for )prove General Plan Plan Land Use Map the zoning to R-3. change are Plan of [ect site Density I) will be changed from C-1 ential) to R-3 (High Density the Rocha property with zoning changed General Plan the growth potential Mr. Lohse approval by Amendment and significant and refer( the Miti( being considered for final Initial Study for the General Plan The Study identified potential aesthetics such as night lighting, bility of historical resources being discovered on site, related to the aspects of the two proposed Site Plan Amendment. The potential impacts ated to insignificant levels by measures in ion. Councilm~ issue of increasing the density relative to the multiple-family pre in Airport Compatibility Zones B1 and B2, as defined in the Airport Master P such projects are not normally acceptable in either of these compatibility zones. He expressed concern regarding the issue of safety and potential noise impacts to the tenants living below the aircraft approach/landing pattern, and whether staff thoroughly reviewed these issues prior to recommending approval of the projects. Mr. Lohse addressed the "lnfill" policy in the Airport Master Plan, and stated staff is cognizant of the Airport related issues. Because the project is less than two acres, the less intense B2 compatibility zoning would be applicable in this case, which makes the B2 Inflll development policy applicable to the project. He explained the issue of the proposed General Plan Amendment was reviewed for consistency with the Ukiah Municipal Airport Master Plan. The project site is located approximately 0.6 mile north of the Airport runway, which places it in the Airport Compatibility Zones B1 and B2, as Regular Ukiah City Council Meeting March 16, 2005 Page 3 of 12 defined in the Compatibility Criteria tables for both the Ukiah Municipal Airport Master Plan and the Mendocino County Airport Comprehensive Land Use Plan. Multiple-family residential projects are not normally acceptable in either of these compatibility zones. However, since the site areas concerning each of the two projects are less than two acres where the less intense B2 compatibility zoning is applied makes the proposed General Plan Amendment and Zoning change subject to the Infi and City airport plans. The proposed change to high densib this policy since the residential densities allowed on the site units per project, the developments would maintain 30 space, and the multiple-family projects will not exceed policy adopted in the Airport Master Plan encour single-family residential development, as considered to be more susceptible to aircraft nc PUBLIC HEARING OPENED: 6:55 p.m. housing of the County conform to :exceed 28 dwelling ~f its lands for open height. The Infill projects over )merits are Sidney Hunt stated she resides on Avenue, She expressed concern about ss of currently exist with drivers and comn another when vehicles are parked on development would add existin~ concerned for the residir have sufficient '. supportive of the project. eet and the problems that being able to pass one She commented the ~le Avenue. She is ~plexes who would not PUBLIC HEARINI Councilme~ of traffic ning Commission addressed the issue on Apple Avenue. Mr, to effecl rather thar Public W( eer a little narrower adequate for parki~ Because Apple Aven to slow traffic down. PI an chan ssion focused on the issue of drivers being able parking allowed on both sides of the street the parking requirements such as "red curbing." City and noted that, at 30 feet in width, it is streets in the area. However, the width is considered sides of the street, as well as for dual-lane traffic to pass. somewhat narrow, it creates its own traffic calming measure Mayor Ashiku inquired whether sidewalks exist on Apple Avenue. Mr. Lohse indicated that both sides of Apple Avenue have sidewalks. One of the benefits as a condition imposed from the site development permit portion of the project would be the construction of the cul-de-sac terminus that will be a dedicated public right-of-way. The lots are currently accessed by means of private driveways at the existing dead-end terminus for Apple Avenue. Councilmember McCowen requested clarification regarding the number of units that could be built without the proposed General Plan Amendment and Zoning change. Regular Ukiah City Council Meeting March 16, 2005 Page 4 of 12 Mr. Lohse stated at full development, up to 31 units could be built with the existing R-2 and C-1 zoning designations without General Plan Amendment/Zoning changes. The properties could potentially be developed with an even greater density than proposed, and the proposed 32 units are actually considered a medium to high-density rate. Councilmember McCowen inquired regarding the existing ito the projects. Mr. Lohse stated the lots are accessed via private dead-end terminus for Apple Avenue. The project co~ require the implementation of a cul-de-sac that will way. ,cated at the existing two projects public right-of- A general discussion followed regarding the Menton property that could encourage through of the Councilmember McCowen in( been identified and successfull~ lether the' or reso e issues in the area have Mr. Lohse stated hydrology properties where the storm iss~ reduce the on-site and included as mitk litions. Rocha and Menton proposed to run-off problems were Councilmember sufficient recreational Commissior the projects being able to provide inquired whether the Planning Mr. the area: the build area on ,perty. rovide for common recreational space in the yard also provides and maintains a large garden Councilmem[ using runway the Airport Quiet FI uired regarding departures and landings to the north of pilots use this runway in compliance with Neighbor policies and regulations Airport Manager Richey stated the common runway is "1/5", and signage, publications, and communication system information are available to assist pilots in complying with appropriate Airport departure and landing protocol and policies. He stated the vast majority of pilots comply with the established Airport policies/guidelines concerning proper departure and landing protocol. A brief discussion followed regarding the two-stow height of buildings where Planning staff determined this height to be more compatible with the Airport Compatibility Zoning Criteria, as well as to assist with maintaining potential privacy impacts to the neighborhood. Regular Ukiah City Council Meeting March 16, 2005 Page 5 of 12 M/S Rodin/McCowen approving Negative Declaration prepared for the project, carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. M/S Rodin/McCowen adopting Resolution 2005-39 approving amendment of the General Plan Land Use Map from the C and MDR land use nations to the HDR land use designation, carried by the following roll call vote: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. ,~. ABSTAIN: None. ABSENT: None. Councilmember Baldwin commented on the multiple-family projects over single-family housing developments are considered to be m, as airplanes will definitely fly directly over thi disregard this concept in the future. He the City that applies to the Infill development c( landing approach zone. He comme during h children under the age of seven g in expressed concern regarding the iss[ having the necessary recreational the City could better apply !ll/Smarl is cy encourages )ment Iow-density ~ceptible to impacts, iect site. recomm, the City underutiland in les directly in the Airport isit, he observed that many on Cherry Street, and residing in the area and commented that Councilmember Mc( Infill development. consider. the ¢ of th ,posed project sites are appropriate for )ment is a very important factor to M/S Rodir vote: .~ only, carried by the following roll call McCowen, Rodin, Baldwin, and Mayor Ashiku. ISENT: None. Recordir cretary El; City Counc ~ City of U California". title of the Ordinance: "An Ordinance of the Amending the Official Zoning Map for the City of Ukiah, M/S ~g Ordinance, carried by the following roll call vote: AYES: rane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 9. NEW BUSINESS 9a. Consideration of Lease of Golf Cart Storage Facility With the Ukiah Men's Golf Club Community Services Director DeKnoblough addressed staff's proposal regarding approval of a lease of the Golf Cart Storage Facility at the Ukiah Municipal Golf Course with the Ukiah Men's Golf Club (UMGC). Under the lease terms/conditions, the UMGC will be required to renovate/improve the older shed. Staff determined that renovating/improving the cart shed currently operated by the City would cost in excess of $10,000. Under UMGC management, much of the associated improvement costs would be offset with revenue generated from rental of the shed, as well as with Regular Ukiah City Council Meeting March 16, 2005 Page 6 of 12 volunteer labor and donated materials. Additionally, the City would benefit from this agreement, as the net revenues received from the operation of the storage facility are required by the lease to be utilized for either the improvement or promotion of the Golf Course. Councilmember McCowen stated he favors the project but ca next 14 years the City would not receive the net revenue presently receives on an annual basis. He further stated th8 year term requires more information and ulated that over the facility that it or change for a 20- ,'iated issues. Paul Shimmin, President of the Ukiah Men's Gol the working relationship the UMGC has with the that effectively promote, maintain, and im approval of the lease as being working relationship between the City and the of as: 3oil Course. F effort continue addressed with projects ommended the Mayor Ashiku thanked the organization has sig and assistance this Councilmember McCowen is a great one. He commer )royal is premature without a recommended deferri ,n of hearing for this MGC has with the City magnitude proposed Course operation and agreement until after the Budget M/S McCowen/Baldw Facility at Budget AYES: cilmemb, None the lease of the Golf Cart Storage ~lf Men's Golf Club until after the the motion was carried by the following roll call vote: ~owen, Rodin, Baldwin, and Mayor Ashiku. NOES: )ne. 9. ~INESS 9b. Discus and Action Mid-Year 2004-05 It was the consel Year Budget Amendr Council to defer discussion/action concerning the Mid- the next regular City Council meeting. It was noted that Councilmembers Crane and McCowen will assist staff with reviewing the budget amendments and the necessity of additional expenditures. 9. NEW BUSINESS 9c. Adoption of Resolution of Intention and Introduction of Ordinance For the Police PERS Group to Amend the PERS Retirement Contract Personnel Officer Harris referred to the CALPERS Amendment to Contract between the Board of Administration CALPERS and the City Council, City of Ukiah that allows for Section 21362.2 (3% @ 50 Full formula) retirement benefit for local police members only to be effective by May 8, 2005. This action is necessary to fulfill the City's contractual obligation. Regular Ukiah City Council Meeting March 16, 2005 Page 7 of 12 M/S Crane/McCowen approving Resolution 2005-40 of Intention to approve an amendment to contract between the Board of Administration California Public Employees' Retirement System and the City Council of the City of Ukiah, carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None, M/S Rodin/McCowen introducing Ordinance by title only, call vote: AYES: Councilmembers Crane, McCowen, Ashiku. NOES: None. ABSTAIN: None. ABSENT: by the following roll Baldwin, and Mayor Recording Secretary Elawadly read the title of: City Council of the City of Ukiah authorizing an City Council of the City of Ukiah and the Employees' Retirement System". ment to :e: inance of the ,etween the )n of the ia Public M/S McCowen/Baldwin introducing AYES: Councilmembers Crane, None. ABSTAIN: None. ABSENT: nance, the following roll call vote: and Mayor Ashiku. NOES: UNFINISHED BUSIt of Environmenta City Attorney addresses the issue req Leon~ of Preparation of an Ukiah and Millview County Water ~iect ht's discussion and possible action ' Water District (Millview) and their les and Associates prepare an EIR to evaluate water ~ and ad~ permits an the EIR that v es to the :points of d sas were is impacts in connection with the petitions by the two hts and licenses. The amendments would involve 3, water use purposes, and changes to 3oints of extraction that have occurred since the Millview has agreed to pay half the cost of preparing ;iA compliance relative to future annexations. The water permits ~ To ensure because of the following reasons: with inspections conducted by the Water Resources Control Board/Division of Water Rights to verify that the areas currently served by the two water agencies are within the allowed place of use under their permits. To ensure the emergency intertie water system between the City and Millview, and the City and Willow County Water District 0Nillow), include one another within the allowed place of use under their permits. To include the City's well number 5 as an allowed point of diversion under the existing permit, and to add points of diversion to Millview's permit. The Millview and City permits have expired and both agencies have applied for a 10-year extension of the permit to allow for more time to put additional water available under the permits to beneficial use. Regular Ukiah City Council Meeting March 16, 2005 Page 8 of 12 City Attorney Rapport referred to a letter from Bob Wagner dated March 2005, concerning the State Water Resources Control Board, water rights permitting authority, relative to CEQA and the City's decision to prepare an EIR versus a Negative Declaration in which he states the Board's views a time extension on a permit as making more water available to the permit holder, even though the maximum amount of water available under the permit does not change. The letter fu cost of preparing a Negative Declaration that evaluates the permit time extension would not be significantly less than for all of the permit amendments, and, that an EIR is this document be challenged. er explains that the impacts of the of preparing an EIR in court should Planning Director Stump stated the City sent RF and Leonard Charles and Associates came in w lowest bid. resulting firms Councilmember Rodin inquired whether considered ministerial and/or will the pern scrutinized. be ,ns be comprehensively City Attorney Rapport stated th, amendments depends upon the pul: potentially result in hearin¢ ~re the of potential opposition issu place of use. concermng the permit ,lications which could Board because and the changes in the A general versus an EIR, as spe~ of a Negative Declaration ner's letter. Councih contaiT he staff uestioned future preparing ch8 auth~ why there i ~e following inquiries/comments regarding information EIR would be all-inclusive enough to as well as future annexations relative to the a document. He inquired why staff characterize the permit as "incidental," and commented that adding la water districts to the City water rights permit and ;I is more than an incidental change. He further inquired to complete the permit amendment process. Commented the subject of water/water rights and permit amendments require a thorough assessment/analysis. He recommended allowing more time via a public workshop in which to further address/identify all the "critical" issues concerning the topic of water. Mr. Stump stated the intent is to allow for an efficient process in terms of preparing and certifying an EIR, and, in staff's opinion, Leonard Charles could complete the process faster and at less cost. Councilmember Baldwin continued with the following statements: Questioned why Leonard Charles and Associates ranks number one from among the other consultants relative to experience and knowledge of EIR Regular Ukiah City Council Meeting March 16, 2005 Page 9 of 12 preparation that would effectively address growth and environmental impacts other than the fact his firm had the lowest bid. Questioned the bid proposal submitted by Leonard Charles that addresses the proposed water permit/licensing amendment. In response to Councilmember Baldwin, Mr. Charles clarified that included in the permit as "new" points of diversion because current permit, but that construction of new points of diversio wells 5 and 6 are not listed in the in the EIR. Councilmember Baldwin recommended this information/data has been evaluated and/or a water address the issues raised above, as well as other ~ iSSUE until more ;n conducted to City Manager Horsley stated a water workshc Councilmember Rodin inquired regarding the ti~ permits/licenses amendment whethe~ the emergency intertie agreements. April. compliance with the water ~nsion is possible relative to City Attorney Rapport stated the concerned with the conten eme~ City using its water an( ~r it water can be is not so much as they are with the permit and where that Lee Howard Control District take addressed · need for .~' A discussion the Water water permit fo modifications to addressed under (: permit/license changes. works istricts could demand that the Flood issue par~ of their program. He the City's Sphere of Influence and the therefore, supports the concept of preparing an EIR impacts with the potential for annexation. the type of information/data necessary for There was also discussion regarding the probability of being in a position to extend the City's existing as in past years, due to Russian River watershed )le cfs, new environmental impact issues that must be and/or other corresponding criteria relevant to water Councilmember McCowen pointed out that an EIR would be necessary because of the increase from the 8 cfs diverted by the City under its permit prior to December 31,2004, versus the maximum 20 cfs available under the permit. The City would be obligated to consider the cumulative impacts of using the full 20 cfs in the EIR. Continued discussion followed regarding the potential for annexation and accompanying growth impacts relative to the necessity of changing the points of diversion and place of use. Councilmember Rodin favors moving forward with an EIR, and stated it is imperative Regular Ukiah City Council Meeting March 16, 2005 Page 10 of 12 for Council to continue water policy discussions. Councilmember McCowen commented that allowing for changes to water permits with the certification of an EIR lays the groundwork for major growth and development in the Ukiah Valley. He stated it is important for the public to be informed regarding changes to the City's policy and possible changes to its water rights. City Attorney Rapport stated the limitations come throu¢ agreement and the local decisions that are made by the City so that EIR is prepared for subsequent potential impacts to the environment for ch~ owed place of use under the state permit, it becomes issu~there may be no intent by the City to serve areas iurisdiction. Major Ashiku permitted public member John John Mayfield spoke to the issue. ~ld to cot M/S McCowen/Baldwin to defer Leonard Charles and Associates Permit Amendment Project to the reconfirm with Leonard Ch~ 3d weeks or so, and to to particulate with the on water policy ~ssues, Counciimembers Mayor Ashiku. so ti Bald~ contract for $51,530 with IR for the Water Rights so that staff can be considered in six that they will be willing Council can proceed with a workshop following roll call vote: AYES: NOES: Council member Rodin and 5f. um of Main Materials to Groeni,qer & Company For Included, For the Brush Street Water Main Public s Director of 16-inch main Street, as it Aisc, it is im as there will be necessary to compl~ the need to implement 3,000 lineal feet for Brush Street from Highway 101 through State costly for the continued repairs to the system. Jncil to approve going out to bid now for project materials price increase for plastic and other related materials ~e job. He addressed the specific process concerning the replacement of the water main. A general discussion followed regarding the cost saving by purchasing the materials now as opposed to later and/or the potential cost incurred by allowing the contractor to purchase the materials. M/S Baldwin/Rodin approving item 'T' from the Consent Calendar, "Award Purchase of Water Main Materials to Groeniger & Company for the Sum of $122,852.89, Tax Included, For the Brush Street Water Main Replacement Project", carried by the following roll call vote: AYES: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. Regular Ukiah City Council Meeting March 16, 2005 Page 11 of 12 mm 10. COUNCIL REPORTS Councilmember Rodin reported she attended Tony Shaw's Workforce Investment Board (WIB) presentation. She also attended a State budget conference in Sacramento conducted by the California Budget Project, a non-partisan budget policy analysis organization. Councilmember Baldwin reported he attended an Co ission meeting, and stated legal action is likely to revise the FERC decision about a 15 percent reduction in He reported a new courtyard is planned for the back regarding staff's policy in terms of time spent to additional information on a particular topic made and Power the effort to h Potter Valley. seum. He inquired uest for City Manager Horsley stated staff will com time factor for researching the corresponding will consult Council in this regard. ih the ;st and/or if the oth( staff Mayor Ashiku reported he and Supervisor Committee on March 21, ber will meet with the Council City Attorney Rapport pr the County Clerk's been filed in oppositi file a rebuttal ar the o 25, 2005. an the argi 'gument filed with an argument has le stated the City/Council is entitled to which must be completed by March 11. City Ma attended a meeting with MTA concerning the existing relevant to MTA potentially utilizing this 12. BESSlON No Closed i 13. ADJOURNI~ There being no furthe s~ness, the City Council meeting was adjourned at 9:35 p.m. Cathy Elawadly, Recording Secretary Regular Ukiah City Council Meeting March 16, 2005 Page 12 of 12 ITEM NO. 6a DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION APPROVING CITY OF UKIAH QUALIFIED CONTRACTORS LIST FOR 2005 AS required by the Informal Bidding Procedure of the City of Ukiah, Ukiah City Code §1541-1542, the City Clerk's office prepared and mailed a written notice to construction trade organizations and contractors in California on February 23, 2005, inviting all licensed contractors to submit information regarding their firm to the City for inclusion on the City's list of qualified contractors for the 2005 calendar year. A contractor may be included throughout the year by either submitting a written notice to the City Clerk or by bidding on a City project. All contracting firms are verified through the California State Licensing Board for license validity. All contractors who submitted their company information and construction classification designation by the deadline of March 28, 2005, together with those who bid on projects in 2004, have been included on the current updated list, attached to the Resolution as "Exhibit A". The resolution ensures that staff has a comprehensive list of qualified contractors when soliciting bids for the City of Ukiah. RECOMMENDED ACTION: Adopt Resolution Approving Qualified Contractors List for 2005 Calendar Year. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Contractors notified. N/A Marie UIvila, City Clerk Candace Horsley, City Manager 1. Resolution Approving Qualified Contractors List for 2005 Calendar Year, with Exhibit A 2. Notice to construction trade organizations and contractors APPROVED: Can~ Horsier/, City Mana ASR:Qualified Contractors List2005 ¥~'TACHMENT / RESOLUTION NO. 2005- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING QUALIFIED CONTRACTORS LIST FOR 2005 CALENDAR YEAR WHEREAS, under Ukiah City Code (UCC) sections 1541-1542, the City Clerk must request licensed contractors who are qualified to per[orm public work under contract with the City of Ukiah to submit their names, addresses, phone numbers, type of work in which they are interested, and the contractor's classification and license number; and WHEREAS, the City Council is required to adopt a list of qualified contractors, identified according to categories of work; and WHEREAS, the City Clerk has published the notice as required in UCC Section 1541 and compiled a list of qualified contractors based on information submitted in response to said notice and including all contractors who have submitted valid bids to the City during the preceding calendar year; and WHEREAS, the City Council finds and determines that the list as compiled complies with the requirements of the City Code and Public Contracts Code Section 22032(b) and shall constitute the City of Ukiah Contractors List for use in providing notice under the informal bidding procedure authorized in UCC Section 1543. NOW, THEREFORE, BE IT RESOLVED, that the list attached to this resolution as Exhibit "A" and incorporated herein by reference is adopted as the Contractors List for the City of Ukiah for the calendar year 2005. PASSED AND ADOPTED this 6th day of April, 2005, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Marie Ulvila, City Clerk Mark Ashiku, Mayor 2005- Page 1 of 1 EXHIBIT A A to Z Construction PO Box 375 Calpella CA 95418 A. E. Nelson Construction 842 Martin Avenue, Suite A Rohnert Park CA 94928 ABC Service 205 22nd Street Sacramento CA 95816 Able Fence Company, Inc. PO Box 219 Petaluma CA 94953-0219 Able Maintenance, Inc. 3224 Regional Parkwa)/ Santa Rosa CA 95403 AC & R Service 539 S. Main Street Ukiah CA 95482 Alten Construction Inc. 720 12th Street Richmond CA 94801 App)/-A-Line, Inc. 19852 North Hirsch Court Anderson CA 96007 Ar~lonaut Constructors PO Box 639 Santa Rosa CA 95402 Arnold Construction Compan)/ 2119 Wood Road Fulton CA 95439 Arrow Fencing PO Box 385 Calpella CA 95418 B. Cantarutti Electric Company 1575 Indian Valle)/Road Novato CA 94947 BCM Construction Compan)/, Inc. 2990 Highwa)/32, Suite 100 Chico CA 95973 Beacom Construction Compan)/ PO Box 457 Fortuna CA 95540 Blaisdell construction, Inc. PO Box 493459 Redding CA 96049 Blocka Construction, Inc. 4.455 Enterprise Street Freemont CA 94538 BRCO Constructors, Inc. 5900 King Road Loomis CA 95650 Busch Construction & Electric 2020 Industry Raod Ukiah CA 95482 :CAL Inc. 2040 Peabod)/Road, Suite 400 Vacaville CA 94587 California Pavement Maintenance Company, h 3390 Elder Creek Road Sacramento CA 95829 Chrisp Company 4.3650 Osgood Road Freemont CA 94539-5631 Clark Construction PO Box 167 Calpella CA 95418 Creative Landscaping 1155 Boonville Road Ukiah CA 95482 Cushman Constracting Corporation PO Box 147 Goleta CA 93116-0147 Daniel Steel & Machine Works 160 Brush Street Ukiah CA 95482 Dave)/Tree Surgery Compan)/ 2617 S. Vasco Road Livermore CA 94550 Deep Valle)/Securib/ 360 N. State Street Ukiah CA 95482 Duane C. Kitchens & Sons Construction Corn 1506 Hallmark Court Santa Rosa CA 95403 DYK Incorporated 351 Cypress Lane El Cajon CA 92020 Environmental Resolutions, Inc. 301 North McDowell Petaluma CA 94954 Epidendio Construction, Inc. PO Box 452 Lower Lake CA 95457 Family Tree Service, Inc. PO Box 1325 Laytonville CA 95454 Ferranti Construction, Inc. PO Box 259 Redwood Valle' CA 95470 Ford Construction Compan)/, Inc. .~39 East Lockford Street Lodi CA 95240 Ghilotti Construction Compan)/, Inc. 245 Ghilotti Avenue Santa Rosa CA 95407 Graham Contractors, Inc. PO Box 26770 San Jose CA 95159 Granite Construction Compan)/ 1324 S. State Street Ukiah CA 95482 Hamman's, Inc. 3550 Occidental Road Sebastopol CA 95472 Hermsme)/er Paving Compan)/, Inc. 5454 Old Redwood Highwa)/ Santa Rosa CA 95470 ;J.A. Gonsalves & Son Construction, Inc. PO Box 6553 Napa CA 94581 ' Jacobson Fence Company, Inc. PO Box 6025 Santa Rosa CA 95406 ohnson's Qualit)/Tree Care & Logging, Corn 2700 Boonville Road Ukiah CA 95482 K.G. Waiters Construction PO Box 4359 Santa Rosa CA 95402 Kernen Construction PO Box 1340 Blue Lake CA 95521 LNS Welding & Fabrication PO Box 636 Willits CA 95490 Marvin's Garden Tree Service 16680 N Hw)/101, Apt. 35 Willits CA 95490 Mendocino Construction Services, Inc. PO Box 1517 Willits CA 95490 Mendocino Metals 201 Clara Avenue Ukiah CA 95482 Menton Builders, Inc. 760 Apple Avenue Uk ah CA 95482 Mike Brown Electric 561A Mercantile Drive Cotati CA 94931-3040 Miller Paneling Specialties, Inc. PO Box 270 Woodland CA 95776 North Bay Construction, Inc 431 Payran Street Petaluma CA 95952 Northcoast Tree Care ;)6000 String Creek Road Willits CA 95490 Northern Industrial Electric 2435 Radio Lane Redding CA 96001 Pacific Coast Drilling Company, Inc. ~01 Lindberg Lane Petaluma CA 94952 Pacific Liners 70 Union Way Vacaville CA 95687 Pacific Mechanical Corporation 2501 Annalisa Drive Concord CA 94520 Pipeline Excavators PO Box 1755 Sebastopol CA 95473 Price Striping Service, Inc. 1680 Elk Valley Road Crescent City CA 95531 R.E. Corportion PO Box 1743 Santa Rosa Ca 95402 Rile¥'s Striping Inc. PO Box 760 Union City CA 94587 Robert J. Frank Construction, Inc. 2806 Tarmac road Redding CA 96003 Safety Striping Service, Inc. PO Box 1020 Goshen CA 93227 Sangiaeomo Landscape 3150 Guideville Road Ukiah CA 95482 Schram Construction Inc. 3162 Regional Parkway Santa Rosa CA 95403 Soil Enterprises, Inc. PO Box 733 Brentwood CA 94513 Stiles Construction Company 6209 Lockwood Drive Windsor CA 95492 Strong Hold Masonry & Concrete, Inc. 555 Rancho Caballo Santa Rosa CA 95401 Traffic Ltd. PO Box 1721 Lodi CA 95241 Tru Green Land Care LLC 930 Shiloh Road, Bldg 44, Suite I Windsor CA 95492 Ukiah Acoustics 676 S. Orchard Avenue Ukiah CA 95482 Ukiah Construction 676 S. Orchard Avenue Ukiah CA 95482 Ukiah Electric 676 S. Orchard Avenue Ukiah CA 95482 Universal Environmental, Inc. 4101 Industrial Way Benicia CA 95410 Valentine Corporation PO Box 9337 San Rafael CA 94912 Valley Paving PO Box 559 Redwood Valle CA 95470 Valley Slurry Seal Company PO Box 981330 West Sacrame CA 95798 Waters Construction, Inc. PO Box 126 Willits CA 95490 West Coast Arborists, Inc. 2200 E. Via Burton St. Anaheim CA 92806 Wildcat Underground & Engineering 100 Petaluma Blvd. North, Suite: Petaluma CA 94952 Williams Scotsman, Inc. 4911 Allison Parkway Vacaville CA 95688 Wipf Construction PO Box 234 Ukiah CA 95482 Wright Contracting PO Box 1270 Santa Rosa CA 95402 ATTAOH~NT.~ NOTICE All Licensed Contractors who wish to be included on the City of Ukiah's list of qualified bidders for the year 2005 should submit an Application for Qualified Contractor's List, and provide required information, as per Public Contractors Code Section 22032. The Application for Qualified Contractor's List, along with City of Ukiah Insurance Requirements for Contractors, is hereby attached. Completed forms should be submitted to: City of Ukiah Attn: Marie Ulvila, City Clerk 300 Seminary Avenue Ukiah, CA 95482-5400 Or Fax to: (707) 463-6204 -DUE BY MARCH 28, 2005- Notice Dated: 2/23/05 Notices:Qualified Contractors NOTICE for 2005 - contractors 300 SEMINARY AVENUE UKIAH, CA 95482-5400 Phone# 707/463-6200 Fax# 707/463-6204 Web Address: www. cit~ofukiah.com ITEM NO. 6t~ DATE: April 6, 2004 AGENDA SUMMARY REPORT SUBJECT: REJECT ALL BIDS FOR REPLACEMENT/NEW COMPUTER EQUIPMENT AND PRINTERS. SUMMARY: Recently the Purchasing Department issued a Request for Quotations for seven replacement computer systems, one notebook computer, and two printers. The Request for Quotations was requested by MIS Coordinator Paulette Klingbeil on behalf of several different departments. Three vendors responded with bids which were opened by the Deputy City Clerk and Purchasing Supervisor on March 18, 2005. It has been determined that the original specifications for the replacement computer systems, notebook computer, and printers have changed since the Request for Quotations was issued and are no longer appropriate. Thus rejection of all bids is required. RECOMMENDED ACTION: Reject all bids for replacement/new computer equipment and printers. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staff with alternative action. Citizen Advised: N/A Requested by: N/A Prepared by: Paulette Klingbeil, MIS Coordinator Coordinated with: Candace Horsley, City Manager Attachments: APPROVED: ~- (~,~~ Candace Horsley, City Man~,.,,, ITEM NO 6c DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF ORDINANCE AMENDING THE CITY OF UKIAH'S POLICE-ONLY PERS CONTRACT TO 3% ~) 50 At its March 16, 2005 meeting, the City Council adopted a Resolution of Intention to Authorize amendment to the contract between the Board of Administration of the Public Employees' Retirement System (PERS) and the City Council of the City of Ukiah to provide Section 21362.2 - 3% @ 50 benefits for its Police-Only members, with all costs covered by the Police Unit employees. The Ordinance authorizing the amendment was introduced at the March 16, 2005 Council meeting. Upon adoption of the Ordinance by Council, the proposed contract amendment will become effective on May 8, 2005. Staff recommends adoption of the Ordinance authorizing amendment of the Police-Only PERS Contract to provide 3% @ 50 benefits, effective May 8, 2005. RECOMMENDED ACTION: Adopt Ordinance Authorizing an Amendment to the Contract Between the City Council of the City of Ukiah and the Board of Administration of the California Public Employees' Retirement System. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Do not adopt Ordinance and provide direction to Staff. 2. Refer to Staff for further information. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City of Ukiah Police Unit Members Melody Harris, Personnel Officer Candace Horsley, City Manager 1. Ordinance Authorizing Amendment to PERS Contract 2. Amendment to Contract APPROVED:';' -,("~';~~ ~ _ Ca-n-dace Ho~'sle~7, City i~an~er 3:MOU~SR3~5Oadoptord ~ ORDINANCE NO.__ ATTACHMENT J_.. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF UKIAH AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM The City Council of the City of Ukiah does ordain as follows: Section 1. An amendment to the contract between the City Council of the City of Ukiah and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked "Exhibit", and by such reference made a part hereof as though herein set out in full. Section 2. The Mayor of the City Council is hereby authorized, empowered, and directed to execute said amendment for and on behalf of said Agency. Section 3. This Ordinance shall become effective thirty (30) days after the date of its adoption, and prior to the expiration of ten (10) days from the passage thereof shall be published as required by law in the Ukiah Daily Journal, a newspaper of general circulation, published and circulated in the City of Ukiah and thenceforth and thereafter the same shall be in full force and effect.. Introduced by title only on March 16, 2005, by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku None None None Adopted on April 6, 2005, by the following roll call vote: AYES: NOES: ABSENT: ABST~N: Mark Ashiku, Mayor Attest: Marie Ulvila, City Clerk CalPERS California Public Employees' Retirement System ~,TrACHMENT EXHIBIT AMENDMENT TO CONTRACT Between the Board of Administration California Public Employees' Retirement System and the City Council City of Ukiah The Board of Administration, California Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of the above public agency, hereinafter referred to as Public Agency, having entered into a contract effective August 1, 1962, and witnessed June 4, 1962, and as amended effective January 1, 1973, January 2, 1983, June 30, 1992, May 7, 1999, November 8, 1999, October 5, 2002 and October 1.2, 2003 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: Paragraphs 1 through 14 are hereby stricken from said contract as executed effective October 12, 2003, and hereby replaced by the following paragraphs numbered 1 through 15 inclusive: All words and terms used herein which are defined in the Public Employees' Retirement Law shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 55 for local miscellaneous members and age 50 for local safety members. Public Agency shall participate in the Public Employees' Retirement System from and after August 1, 1962 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); Employees other than local safety members (herein referred to as local miscellaneous members). In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: NO ADDITIONAL EXCLUSIONS The percentage of final compensation to be provided for each year of credited prior and current service-for local miscellaneous members in employment before and not on or after October 12, 2003 shall be determined in accordance with Section 21354 of said Retirement Law, subject to the reduction provided therein for service prior to December 31, 1982, termination of Social Security, for members whose service has been included in Federal Social Security (2% at age 55 Full and Modified). The percentage of final compensation to be provided for each year of credited prior and current service for local miscellaneous members in employment on or after October 12, 2003 shall be determined in accordance with Section 21354.5 of said Retirement Law, subject to the reduction provided therein for service prior to December 31, 1982, termination of Social Security, for members whose service has been included in Federal. Social Security (2.7% at age 55 Full and Modified). The percentage of final compensation to be provided for each year of credited prior and current service as a local fire member shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). The percentage of final compensation to be provided for each year of credited prior and current service as a local police member shall be determined in accordance with Section 21362.2 of said Retirement Law (3% at age 50 Full). Public Agency elected and elects to be subject to the following optional provisions: a. Section 20042 (One-Year Final Compensation). b. Section 20965 (Credit for Unused Sick Leave). Section 21573 (Third Level of 1959 Survivor Benefits) for local miscellaneous members and local fire members only. d. Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance). e. Section 20516 (Employees Sharing Cost of Additional Benefits): Section 20042 (One-Year Final Compensation); Section 20965 (Credit for Unused Sick Leave); and Sections 21624, 21626 and 21628 (Post-Retirement Survivor Allowance). From and after January 2, 1983 the safety employees of Public Agency shall be assessed an additional 1% of their compensation for a total contribution rate of 10% pursuant to Government Code Section 20516. f. Section 21024 (Military Service Credit as Public Service). Section 20503 (To Remove the Exclusion of Employees Who are Paid on an Hourly, Per Diem, or Weekly Basis While Being Employed on a Temporary, Emergency or Seasonal Basis, Prospectively from November 8, 1999). Section 21574 (Fourth Level of 1959 Survivor Benefits) for local police members only. 10. Removal of the exclusion of "Employees Who are Paid on an Hourly, Per Diem or Weekly Basis While Being Employed on a Temporary, Emergency or Seasonal Basis", pursuant to Section 20503, is declarative of agency's previous interpretation and does not mandate any new classes of employees into membership. 11. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on January 2, 1983. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 12. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 13. Public Agency shall also contribute to said Retirement System as follows: Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21573 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local miscellaneous members and local fire members, Contributions required per covered member on account of the 1959 Survivor Benefits provided under Section 21574 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local police members. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 14. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 15. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. B. This amendment shall be effective on the __ day of , BOARD OF ADMINISTRATIO,N~ ,;: CITY COUNCIL PUBLIC EMPLOYEES' REtiReMENT SYSTEM CITY OF UKIAH LORI MCGARTLAND;.~ACT NG CHIEF PRESIDING OFFICER:'~ ACTUARIAL & EMPLOYER SERVICES DIVISION PUBLIC EMPLOYEES' RETIREMENT SYSTEM Witness Da~ Attest: Clerk AMENDMENT ER# 0485 PERS-CON-702A (Rev. 8\02) TI-EM NO: ed DATE: April 6, 2005 AGENDA SUPlMARY REPORT SUB.1ECT: ADOPTION OF ORDINANCE REZONING APN 003-050-29, 50, 66, 85 AND 86 TO R-3 (HIGH DENSITY RESIDENTIAL) SUt41~IARY: On March :t6, 2005, the City Council conducted a public hearing and voted unanimously to introduce an Ordinance rezoning APN 003-050-66 from the C-1 (Community Commercial) Zoning District to the R-3 (High Density Residential) Zoning Classification, and APN 003-050-29, 85, and 86 from the R-2 (Hedium Density Residential) Zoning District to the R-3 (High Density Residential) Zoning Classification. The purpose of the Rezoning is to facilitate the development of a 32-unit apartment complex at the north end of Apple Avenue. The Ordinance has been prepared in final form and is ready for adoption. RECOI~II~IENDED Ac'rzON: Adopt the Ordinance rezoning the subject parcels. ALTERNAI'ZVE COUNCIL POLICY OPT[ON: Do not adopt the Ordinance and provide direction to Staff. Citizens Advised: Publicly noticed according to the Ukiah rVlunicipal Code Requested by: Antonio Rocha and Estok and Miskal Menton, property owners, and Richard Ruff. Agent for the applicants. Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager Attachments: 1. Ordinance AP..OVED: Horsley, agerCandace ~I'EM NO: 6e DATE: April 6, 2005 AGENDA SUMMARY REPORT SUB3ECT: STATUS REPORT CONCERNI'NG CONSULTANT SERVI'CES CONTRACT FOR THE PREPARATI'ON OF AN ENVi'RONMENTAL I'MPACT REPORT FORTHE UKI'AH AND MI~LLV1'EW COUNTY WATER DTSTRI'CT WATER R1~GHTS PERMI'TS/LI'CENSES AMENDMENT PRO3ECT SUMMARY: On March 16, 2005, the City Council considered, but chose to delay a decision on a consultant services contract for the preparation of an environmental impact report for the water rights/permits amendment project. The Council directed Staff to contact potential consultant Leonard Charles & Associates to find out how long its proposal would remain valid, and to contact the Millview County Water District to find out if it would be amenable to a short delay in awarding the contract. The purpose of the Council's direction was to determine if a decision on the contract could be made after the upcoming Water Forum. Staff contacted Leonard Charles & Associates who indicated that its bid would remain valid until at least May :1., 2005 (Attachment No. 1). 'tqm Bradley of the Millview County Water District was contacted, and he indicated that a short delay would not present a significant problem to the district. RECOMMENDED ACI'~ON: Receive status report ALTERNAI'~VE COUNCIL POLICY OPTION: N/A Citizens Advised: N/A Requested by: Charley Stump, Director of Planning and Community Development and Bernie Ziemianek, Director of Public Utilities Prepared by: Charley Stump, Director of Planning and Community Development and David Rapport, City Attorney Coordinated with: Candace Horsley, City Manager and Bernie Ziemianek, Director of Public Utilities Attachments: 1. Correspondence received from Leonard Charles & Associates APPROVED: Candace Horsley, City MaWr _ LEONARD CHARLES & ASSOCIATES Environmental Analysis & Planning 7 ROBLE COURT ~'(;IChllr~ SAN ANSELMO, CALIFORNIA 94960 PHONE (415) 454-4575 FAX (415) 454-2585 March 18, 2005 Mr. Charley Stump Uldah Community Development Director 300 Seminary Avenue UkJah, CA 95482 Dear Chadey, It is our understanding that the City wishes to further consider the scope of the E]R to be prepared on its proposed amendment to its water dght permit and, thus, delay awarding the EIR contracL This is to inform the City that our bid proposal will remain valid to at least May 1, 2005. Please note that one of the main reasons the price quote for this EIR is relatively inexpensive is that we expected to be preparing this EIR at the same time we were preparing the EIR for the County's Draft Uldah Valley Area Plan. We have just completed the Administrative Draft of that EIR. Substantial additional delay (beyond May) in initiating the City's water dghts may require us to reexamine our pdce quote since we would no longer be preparing the two EIRs simultaneously, thereby negating the efficiency and cost savings predicted when developing our odginal price quote. We look forward to preparing this EIR for the City, and please call if you have any questions. Sincerely, Leonard Chades ITEM NO. 6s DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF LEASE AGREEMENT FOR HANGAR "F" AT THE UKIAH REGIONAL AIRPORT Hangar "F" at the Ukiah Regional Airport is vacant at this time and available for rent. This hangar is located on the northwest side of the airport just south of the FED EX hangar. It has been a goal of the Airport Commission to reserve this area for commercial aviation activities because of the State Street exposure and other commercial operators in this area. This usage is consistent with the Airport Land Use Guidelines which was adopted by City Council in April, 2004. At the Airport Commission's recommendation, staff has been in negotiations with Lucero Trucking and a copy of the proposed lease is attached. The term of the lease is for three years in the amount of $775 per month with a CPI escalation clause. This lease value reflects a $125 per month increase over the previous lease for this hanger due to the shorter term of the agreement and is consistent with the airports' hanger lease rates. Lucero Trucking is the exclusive freight operator for DHL/Airbome Express in this area. DHL/Airborne Express has been conducting freight operations from the airport for several years and has an off site sorting facility. This lease will allow DHL/Airborne Express to conduct their full operations at one site adjacent to the aircraft. Staff concurs with the recommendation of the Airport Commission and is seeking approval of the proposed lease. RECOMMENDED ACTION: Approve proposed lease with Lucero Trucking. ALTERNATIVE COUNCIL POLICY OPTION: Change terms and approve the lease, or reject lease agreement and remand back to staff and the Airport Commission. CITIZEN ADVISED: REQUESTED BY: PREPARED BY: COORDINATED WITH: ATTACHMENTS: N/A Airport Commission Paul Richey, Airport Manager Candace Horsley, City Manager Larry DeKnoblough, Community Services Director 1) Proposed Lease 2) Airport Commission minutes excerpt APPROVED: CandT~ce Horsley, C~ty Manger I Attachment ~ ,, / LEASE AGREEMENT This Lease, made this 1st day of April, _2_0.0_5, by a_nd be._tween..tbe City of Ukiah, a general law municipal corporation in Mendocino County, State of California, acting by and through its City Council, hereinafter referred to as "Lessor" and Lucero Trucking, D.B.A. DHL, Airborne Express, Inc., a California corporation, hereinafter referred to as "Lessee." RECITALS: 1. Lessor has the authority contained in Government Code 37380, 37389 and 37395 to lease municipal and airport property. 2. Under Government Code section 37389 the Lessor has the authority to lease airport property for a term not to exceed fifty (50) years for the construction and maintenance of hangars and related purposes. 3. Lessee intends to lease airport property and a hangar from Lessor for the purpose of operating an air express freight service. AGREEMENT 1. LEASE. The parties hereto agree that on the terms and conditions hereinafter expressed, Lessor does hereby let to Lessee and Lessee does hereby hire from Lessor the real property and improved hangar located at the Ukiah Municipal Airport, more particularly identified and described in the attached Exhibit A and referred to herein as "the leased premises." 2. TERM. The term of this lease shall commence on the date indicated above, and shall continue in effect for a period of three (3) years, expiring at midnight on Apri!, 3._0, 200~ Lessee shall have the option to extend this lease on terms and conditions to be negotiated and agreed upon by the parties. To exercise this option, Lessee shall give Lessor written notice not less than ninety (90) days prior to the expiration of the initial term that it wants to extend the lease. The lease term shall be extended, if the parties have reached agreement on the terms and conditions of that extension before the end of the initial lease term .] 3. RENT. 3.1 Amount. As rent for the term hereby demised, Lessee agrees to pay to Lessor the sum of $775 per month for the use of said property for the first year of this agreement. Commencing on April, l_,_2_00~and_ each subsequent year thereafter, the rent shall increase at the rate equal to the increase in the Consumer F;rice Index over the previous twelve months, not to exceed 3%. CPi means the Consumer Price Index for San Francisco, Oakland-San Jose, CA, alt items (base year 1982-1984 =100) published by the United States department of Labor, Bureau of Labor Statistics. In the event the CPI is discontinued or otherwise not available, "CPI' shall mean such comparable statistics on the purchasing power of the consumer dollar as is reasonably agreed upon between Lessor and Lessee. 3.2 When due; late fees and interest. Rent shall be due on the fifth (5th) day of each month and shall be considered delinquent if not received by the Lessor's Finance Department located at 300 Seminary Avenue in Ukiah by 5:00 p.m. on the tenth (10th) day of the month. Lessee shall pay a late fee of $50, if the payment is delinquent. In addition, Lessor may charge Lessee interest orl the unpaid portion of the delinquent payment until paid in full as provided in Ukiah City Code section 2051. 3.3 Payment of taxes and assessments. Lessee shall also pay any real property, possessory interest or personal property taxes, and assessments imposed on the leased premises, property located on or affixed to the lease premises or as a result of the lease, use or ownership of the leased premises. 4. USEANDIMPROVEMENTS. 4.1 Condition of the leased premises. Lessee hereby agrees to maintain all improvements to the property in its condition at the time of the commencement of this lease and accept the use of the leased premises in "AS IS" condition, understanding that Lessor makes no representations as to the condition of the premises or its suitability for the uses contemplated by Lessee. Lessee assumes the obligation at its own expense to remove and properly dispose of any toxic or hazardous substances that may exist on the premises, if such substances are found to exist on the premises and must be removed in order for Lessee to make use of the leased premises. Lessee represents that it has made a thorough inspection of the premises and has undertaken to repair or adequately warn of any conditions on the premises that might constitute a hazard or danger to persons using or present on the leased premises. 4.2 Use of Hangar. Lessee shall use the leased premises exclusively for the operation of airfreight services and related purposes and primarily as an independent contractor, handling business operations for DHL/Airborne Express Inc., (Airborne). Failure to utilize the Leased Premises for such purposes for a period of ninety (90) days shall constitute a matedal breach of this lease, entitling Lessor to terminate and declare a forfeiture of this lease. Lessee shall keep the hangar neat and orderly, and reasonably clear of all cans, rags, boxes, excess aircraft parts, and other items. Lessee shall not interfere with the use of the airport by others and shall not maintain or allow a nuisance on the Premises. 4.3 Improvements and modifications. Lessee shall not initiate any improvements or alterations to the leased premises without the pdor written approval of Lessor through its City Manager or his or her designee. All improvements completed and/or installed by Lessee shall become the property of Lessor upon completion and/or instillation: 4.4 Maintenance and repair. Lessee agrees at Lessee's sole expense to keep the premises and all improvements in good repair and order and to bear the full cost for all maintenance and repair of the leased premises and all improvements including all perimeter landscaping and irrigation. 4.5 Storage or use of toxic or hazardous substances. Lessee shall not dispose or permit the disposal of hazardous or toxic substances on the leased premises. If any hazardous or toxic substances are disposed of or released on the leased premises during the term of this lease, LeSsee shall assume the entire obligation to clean up any such substances and shall fully indemnify, defend and hold harmless the Lessor and its officers, agents and employees from any claim, damage, loss, liability, cost or expense of any nature whatsoever arising out of the releaseor disposition on the leased premises of any toxic or hazardous substance. 4.6 Permits. Lessee shall acquire any necessary or required permits from the appropriate regulating body for the use of the leased premises. 4.7 Compliance with laws. Lessee shall insure that no alcoholic beverages are possessed or consumed on the leased premises at any time. Lessee shall not use or permit the leased premises to be used except in full compliance with all rules, regulations, laws or ordinances of the City of Ukiah and the State of California, and the Federal Government. 4.8 Utilities. Lessee shall furnish at its sole expense all utilities necessary for its use of the leased premises, including, but not limited to, water, sewer service, electricity, natural gas, and garbage collection. 5. ASSIGNMENT. Lessee will not assign this Lease or any interest therein and will not let or sublet the said premises or any part thereof without the prior wdtten consent of the Lessor, which consent shall not be unreasonably withheld or delayed. Lessor may terminate this lease and recover possession of the lease premises, including all permanent improvements thereon, if any assignment occurs in violation of the terms of this paragraph. "Assignment" includes beth voluntary assignments and assignments that occur involuntarily or by operation of law. 6. INDEMNIFICATIONS AND INSURANCE. 6.1 Indemnification. Lessor shall not be liable for and is free from the cost of any damages for personal injury or property damage resulting from the use made by Lessee of the leased premises, any defective condition or faulty construction of the leased premises existing at the time of letting or adsing thereafter and Lessee covenants and agrees to indemnify and save harmless said Lessor and its officers, agents and employees from and against any and all claims, liability, loss, cost, or other obligation, including reasonable attorneys' fees, on account of or adsing out of Lessee's use of the leased premises. 6.2 Liability insurance. Lessee covenants and agrees during the life of this Lease at Lessee's sole expense to comply with the requirements of Exhibit B, Insurance Requirements for Lessees (No Auto Risks) attached hereto and incorporated herein by reference. 7. TERMINATION. 7.1 Breach. Failure to pay rent, when due, or to comply with any other provision of this lease shall constitute a material breach of the lease and fumish grounds for termination of this lease. Any action taken or suffered by Lessee as a debtor under any insolvency or bankruptcy laws, including the filing of a voluntary or involuntary petition in the United States bankruptcy court, any assignment for the benefit of creditors or the appointment of a receiver shall constitute a breach of this lease. In such event, Lessor shall have the dght to terminate this lease and retake possession of the lease premises and any improvements, which upon termination of the lease become of the property of Lessor. 7.2 Termination. Lessor or Lessee, each at their so'le option, shall have the dght to terminate this Lease on ninety (90) days' pdor notice of termination. 7.3 Right of First Refusal If Lessee has not breached the lease at the time the lease terminates and Lessor determines to relet the premises to non-cjovemmental persons or entities for hangar purposes, Lessee shall have a right of first refusal to relet the Premises on the same terms and conditions the Lessor offers to such other persons or entities, if Lessee notifies Lessor in writing that it wishes to exercise such right within f'~een (15) days of the date it is notified by Lessor that Lessor intends to relet the Premises. 8. HOLDING OVER. Holding over by the Lessee after the termination of this lease shall not constitute a renewal or extension thereof or give the Lessee any rights hereunder or in or to the leased premises. 9. INSPECTION. The Lessor and its authorized representatives shall have the right, at any reasonable time during the term of this lease, upon prior notice or appointment, to enter upon the leased premises, or any part thereof, to inspect the same and all buildings and other improvements erected and placed thereon. 10. ATTORNEY'S FEES. In any legal action to enforce any of the terms of this Lease the prevailing party shall pay the other party its reasonable costs and attorneys' fees. 11. TIME OF ESSENCE. Time is of the essence of this agreement. 12. WAIVER. City's waiver of any default in Lessee's performance of any condition of this Lease, including the obligation to pay rent, shall not constitute a waiver of remedies available for a subsequent breach of the same or a different condition of this Lease. Acceptance of subsequent rental payments from Lessee or its assignees shall not constitute a waiver of the failure of Lessee to pay rent or obtain pdor approval to an assignment of this Lease. 13. NOTICES. Any written notice required hereby shall be deemed given and received when personally sensed or placed in the United States mail, with proper first class postage prepaid, and addressed as follows: TO LESSEE: TO CITY: Lucero Trucking 14. PARAGRAPH HEADINGS, 'City Manager Ukiah Civic Center 300 Seminary Avenue Ukiah, CA 95482 Paragraph headings are included for the convenience of the parties and are not intended to define or limit the scope of this Lease. 15. PREVIOUS AGREEMENTS. Any and ali existing statements or agreements, whe~er oral or wdtten, or renewals thereof, between the parties hereto, covedng the same subject matter, are hereby canceled and superseded by the terms of this Lease, and such pdor agreements, statements or understandings shall have no further force or effect. 16. DUPLICATE ORIGINALS. This Lease may be executed in one or more duplicate originals beadng the original signature of both parties and when so executed any such duplicate odginal shall be admissible as proof of the existence and terms of this Lease. Entered on the date first wdtten above. City of Ukiah: Attest: City Manager City Clerk Approved As To Form: City Attorney Its: Exhibit A Lease Area © 425' Affachment # ,~ Assess building replacement in terms of use that wouid effectively complement and coincide with the existing and future infrastr:uctures. Consider the amount of lost revenue if the structure were demolished and not replaced. Consider the type of use if the building were replaced. Consider the amount of revenue that could be generated if the"bui'lding were rented in "as is condition" with minor/necessary repairs to bring it into Code compliance compared to the increased rent fee that could be charged if the building were completely refurbished. Assess all potential liability associated with the tenant given the authority to refurbish the building themselves or hire a contractor of his/her choice. Furthermore, determine whether a tenant could have such authority as specified in the lease agreement. Consider the alternative options should the renovation or ~eplacement of the building never be conhpleted. Ensure that the new tenant would be willing to pay the cost for the upgrade, amortized over time in conjunction with the rental fee as provided for in the lease agreement. Review the lease agreement terms and conditions for the building to ensure all issues associated with the building are appropriately in place and addressed. Focus on a comprehensive development plan to accompany the recently approved zoning designation guidelines established for the Airport to ensure the highest and best maximization of space, as well as provide for maximum efficiency of use. Mr. Richey stated it has been his experience that other buildings that were demolished at the Airport were never replaced. Mr. Richey noted the FAA Airport Improvement Grant wild assist with upgrading and improvements to some of the infrastructure, paving, and other related problems at the Airport. It was the consensus of the Commission to recommend staff pursue a lease agreement to refurbish the Old Duster Hangar. 6B. Discussion of Han.qar "F" - Old RETECH Han.qar Mr. Richey advised that the owner of this hangar is deceased and the parties o the estate intend to vacate it by June 1, 2004. A commercial freight operator has expressed an interest to staff in renting this hangar. The type of operation is well suited for the hangar dueto the location. Staff is recommending conceptual approval of the proposal at this time. The Commission will have the opportunity to provide input and approve the. lease should the negotiations be successful. It was the consensus of the Commissioners to recommend staff pursue a lease agreement for this hangar. Minutes of the Airport Commission Page 4 June 1,2004 AGENDA ITEM NO: oO~'~ MEETING DATE: April 6, 2005 SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION ESTABLISHING THE WATER RATE SCHEDULE FOR THE FISCAL YEARS 2004-2005 (COMMENCING MAY 1, 2005) THROUGH 2008-2009. A workshop was held on January 19, 2005 with the City Council to present a plan to update the City's water utility Water Rate Schedule to generate the revenue necessary to support bond financing for the water treatment plant upgrades required by the California Department of Health Services as a condition of renewing the water utility's operating permit. The plan established pricing based on connection size and actual water usage. Annual rate increases included in the new Water Rate Schedule provide funding for operation and maintenance of the water system as well as repayments of the construction bonds. On February 18, 2005 notices were mailed to affected parties, announcing a public hearing on these proposed rate changes, in accordance with Proposition 218. Representative from Bartle Wells Associates ("BWA") a public finance advisory firm specializing in water system issues will present a brief overview of the development of the Water Rate Schedule and the underlying financing issues and then will be available to answer questions from the Council and public. RECOMMENDED ACTION: Conduct a public hearing and then adopt Resolution establishing the Water Rate Schedule for the fiscal years 2004-2005 (commencing May 1,2005) through 2008-2009. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide Alternative direction to staff Citizens Advised: Published in Ukiah Daily Journal March 22 & 27, 2005, direct mail to property owners and rate payers on February 18, 2005 Prepared by: Mike McCann, Finance Director Coordinated with: Candace Horsley, City Manager 1. Proposed Resolution establishing Water Rate Schedule Attachments: 2. BWA PowerPoint presentation Candace Horsley, Cit~nager RESOLUTION NO. 2005- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING THE WATER RATE SCHEDULES FOR THE FISCAL YEARS 2004-05 THROUGH 2008-09 WHEREAS: 1. The City of Ukiah operates and maintains a water processing and distribution system ("Water System"); and 2. The report City of Ukiah Water Utility Rate Study and Financing Plan ("Study"), dated March 2005, presents a comprehensive analysis of the water utility's rate structure and proposed water rate increases; and 3. The City Council considered the proposed increases at a regular meeting on January 19, 2005, and authorized staffto provide notice and schedule a public hearing on the proposed rate increase in accordance with the procedures contained in Article XIIID, Section 6 of the California Constitution and Ukiah City Code Sections 3950-3957; and 4. Written notice of the amount of the fee or charge proposed to be imposed, the basis upon which the amount of the proposed fee or charge was calculated, the reason for the fee or charge, and the date, time, and location of a public hearing on the proposed fee or charge was mailed to the record owner of each parcel in the City of Ukiah and all customers of the City's water system not less than 45 days in advance of the hearing on the proposed changes; and 5. The Study was adopted as the City Manager's Report as provided in Ukiah City Code Section 3952; and 6. Notice that the Study was available for review was published in the Ukiah Daily Journal not less than 10 days prior to the hearing on the proposed rate increase; and 7. The published notice contained all of the information required by Ukiah City Code Section 3954; and 8. On April 6, 2005, the City Council conducted a public hearing concerning the proposed rates, and heard and considered public comment on the proposed rates; and 9. The City Council did not receive at or prior to the hearing on April 6, 2005, written protests from a majority of the owners of the parcels receiving water services in the City of Ukiah; and 10. The City Council has determined that the proposed rates comply with the requirements in Article XIII.D of the California Constitution; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Ukiah hereby adopts the Water Rate Schedule, as set forth in Table 1, attached hereto and made part of this resolution. BE IT FURTHER RESOLVED that the rate schedule adopted by this Resolution shall be effective immediately and included on billings issued on or after May 1, 2005. All prior rate schedules in conflict herewith are repealed upon the effective date of the new schedule. All other contract conditions for service remain unaltered and in full effect and the City Clerk shall cause the publication of this resolution in the Ukiah Daily Journal within 10 days following Council action pursuant to the provisions of Section 3957 of the Ukiah City Code. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ukiah on the 6th day of April, 2005, by the following roll call vote: AYES: NOES: ABSENT ABSTAIN ATTEST: Mark Ashiku, Mayor Marie Ulvila City Clerk Table 1: City of Ukiah Water Utility - Monthly Service Charge Meter Size/ May 1 st Class Description 2005 Monthly Service Charge Effective Date: November November November 1st 2005 1st 2006 1st 2007 November 1st 2008 3/4" Meter $14.08 1" Meter 18.38 1 1/2" Meter 27.76 2" Meter 39.33 3" Meter 66.52 4" Meter 104.92 6" & Up 200.16 $14.36 $14.64 $14.94 $15.24 21.58 22.97 24.41 25.90 37.85 41.85 45.99 50.28 58.10 65.38 72.93 80.75 105.72 120.70 136.25 152.36 173.40 199.43 226.44 254.45 341.13 394.53 449.92 507.37 Fire Service 2" & Under Fire Service 3" Meter Fire Service 4" Meter Fire Service 6" & Up Consumption Rate (S/unit; 1 unit is 748 gallons) 7.87 11.62 13.08 14.59 16.15 13.30 21.14 24.14 27.25 30.47 20.98 34.68 39.89 45.29 50.89 40.03 68.23 78.91 89.98 101.47 $0.73 $0.91 $1.07 $1.20 $1.29 The purpose of the water rates is to raise revenue for the cost of providing water and water service. Cost of service includes the cost of operation and maintenance of the City of Ukiah water utility used for the collection, processing and distribution of water and payment of principle and interest on debt used to finance capital projects. The purpose of this resolution is to establish a method of sharing the cost of service among the users of the water system for all areas served by the City of Ukiah Water Utility Monthly service charges are a readiness-to-serve fee and apply to all accounts regardless of consumption. Each unit of consumption a will be billed at the consumption rate. Monthly service charges are proportional to meter size with rates increasing across meter size in proportion to the capacity demand guidelines published by the American Water Works Association. (Note: Fire Service, the monthly service charge for fire service meters, will be twenty percent of the monthly service charge for the corresponding meter size.) Consumption charges are applied to all water consumed as recorded by the water meter. Water is sold in units of hundred cubic feet (hcf) which is 748 gallons. BARTLE WELLS ASSOCIATES INDEPENDENT PUBLIC FINANCE ADVISORS CrTY OF UKIAH WATER UTILITY RATE STRUCTURE & CONNECTION FEE UPDATE March 2005 BARTLE WELLS ASSOCIATES March 31, 2005 Bcrkchq,, CA 9470::; 510 053 3300 fax: 510 053 3760 www. barthm, clls.com Candace Horsley, City Manager City of Ukiah/Ukiah Utilities 300 Seminary Avenue Ukiah, CA 95482-5400 Re: City of Ukiah Water Utility Rate Structure and Connection Fee Update Dear Ms. Horsley: Bartle Wells Associates is pleased to present this water utility rate structure and connection fee update for the City of Ukiah. The enclosed report reviews the City's goals and needs for the water utility, and develops operations, maintenance and capital costs for the system. A recommended rate structure is then presented. The proposed rate structure and connection fee updates are designed to fund the operations and capital costs of the water utility while fairly recovering cost of service from all of the utility's customer groups. Finally, Bartle Wells has prepared a preliminary financing plan outlining the financing mechanism, a revenue bond that will be used to pay for the required capital improvements. We have enjoyed working with the City of Ukiah Water Utility on this assignment. We appreciate the assistance and full cooperation provided by you, Mike McCann, Bernie Ziemianek, Ann Burck, and all the staff at the City. We are available to answer any questions about our report. BARTLE WELLS ASSOCIATES Doug Dove, CIPFA, PE Principal Tatiana Olea, MPA Financial Analyst Enclosures CITY OF UKIAH WATER UTILITY RATE STRUCTURE AND CONNECTION FEE UPDATE March 2005 BARTLE WELLS ASSOCIATES Independent Public Finance Advisors 1889 Alcatraz Avenue Berkeley CA 94703 Tel. 510/653-3399 Table of Contents INTRODUCTION .............................................................................................................. 1 CITY RESOURCES ........................................................................................................... 3 Water Service Connections ................................................................................................. 4 Historical Water Production ............................................................................................... 5 REQUIRED CAPITAL IMPROVEMENT PROJECTS .................................................... 7 EXISTING WATER RATES AND CHARGES ................................................................ 9 Existing Rate Resolution and Structure .............................................................................. 9 Current Monthly Service Charges .................................................................................... 10 Units Currently Included in the Monthly Service Charge ................................................ 12 Current Consumption Charge ........................................................................................... 12 Current Additional Dwelling Charge ................................................................ ................ 13 Rate Comparisons ............................................................................................................. 13 CURRENT F1NANCES OF THE WATER UTILITY ....................................................15 Water Utility Fund Balances ............................................................................................. 15 Overview of Current Revenue and Expenses ................................................................... 15 Revenue from Water Sales and Service ............................................................................ 17 Revenue from Connection Fees ........................................................................................ 17 RECOMMENDED RATE STRUCTURE UPDATE ....................................................... 19 General .............................................................................................................................. 19 Recommended Rate Structure Updates ............................................................................ 19 Proposed Consumption and Monthly Service Charge Rates ............................................ 20 Recommended Connection Fee Update ............................................................................ 22 PRELIMINARY FiNANCING PLAN ............................................................................. 24 Borrowing Methods .......................................................................................................... 24 Recommended Capital Financing Method ........................................................................ 25 INTRODUCTION The City of Ukiah is a general law City incorporated in 1876. The City has been providing reliable, safe drinking water to Ukiah residents since 1880. The City adopted the exiting rate structure in 1996 when it last implemented a rate increase. In May of 2001 the California Department of Health Services (D[IS) conducted an inspection/andit of the City of Ukiah's water system. The DHS audit concluded that the City's water treatment and distribution storage facilities must be expanded to reliably meet current and anticipated demand and to ensure that fire protection is available at all times. DHS has made these improvements a condition of renewal for the operating permit of the water utility. The City responded to the findings of the DHS inspection/audit by retaining SPH Associates Consulting Engineers to complete a Predesign Report for the treatment plant and storage facilities improvements identified in the DHS audit. The SPH report, dated February 2004, presents the findings and recommendations of the DHS audit and outlines the capital projects needed to bring the water utility into compliance with State of California public health standards and provide a safe and reliable water supply for Ukiah's residents. The required improvements include constructing various water storage and distribution facilities as well as retrofitting the water treatment plant, particularly its reservoir. The improvements are intended to supply storage for fire, drought and other non standard situations in which the existing facilities and capacity may prove inadequate for the City's needs. Estimated construction cost in 2004 dollars for the proposed system improvements is $15 million. The cost of financing the required capital improvements, operating permit renewal expenses and the increases in operating costs since 1996 would inevitably require rate increases. The City wanted to ensure that the necessary rate changes would fairly and equitably recover the cost of providing water service t¥om its various customer groups. Final Draft 1 Bartle Wells Associates Bartle Wells Associates, independent public finance advisor, was hired in July 2004 to review the existing rate structure and to evaluate financing alternatives available to the City for the water system capital improvements. This report presents the recommended updates to the water utility rate structure and connection fee. The City also retained BWA to develop a financing plan for the water utility. The final section of this report presents the preliminary financing plan. The alternative financing methods available to the City include Water Ftmd contributions (pay-as-you-go), and revenue bonds secured by water sales and service revenue. Final Draft 2 Battle Wells Associates CITY RESOURCES The City of Ukiah is a general law City incorporated in 1876. The City has been providing reliable, safe drinking water to Ukiah residents since 1880. The water utility's service area is not coterminous with the City's boundaries. The City also serves a few customers outside its limits. The water utility is responsible for maintenance, operation, and repair of the City's water production and distribution system. It is also responsible for meter installation and meter reading; the City's finance department manages billing for the utility. The water utility is a self-supporting City enterprise. The water ordinance governs the operations of the utility. Rates are established by the City Council through a rate resolution; and are publi?hed inthe schedule which is part of the resolution. The City last updated its water rates in 1996 when the City Council approved a rate increase. Rates have not changed since 1996. Sale of ~vater and monthly service charges historically generated the revenue needed to support operations and some routine capital replacement needs. Current capital requirements include expansion of the storage capacity system and retrofits at the treatment plant reservoir. These capital projects were identified during a 2001 audit of the water system conducted by the California Department of Health Services (DHS). The state has established that completing the capital projects outlined in the DHS audit are a condition of renewing the operating permit for the water utility. Current capital improvement projects have been divided into two phases and the City has awarded the construction contract for the first phase which includes the expansion of the storage capacity by building additional xvater tanks and installing the connecting pipelines. The City anticipates this portion of the project will be completed in early 2005 with the additional storage capacity operational by summer 2005. Final Dral~ 3 Battle Wells Associates Water Service Connections The water department has over 5,500 service connections. The water utility has experienced low growth in new connections. Table 1 lists and compares service connections by size at June 2002, 2003, and 2004. Table 1 City of Ukiah Water Utility - Water Service Connections City of UkiahWater Utility Water Service Connections June 2002 2003 2004 3/4" 4,806 4,833 4,969 I" 275 275 268 11/2" 124 128 138 2" 111 118 116 3" 40 39 30 4" 86 90 94 6"&Up ILO 25 71l 5,511 5,558 5,685 The majority of water connections are 3/4" meters serving single family homes. Large meters account for only 13% of the customer make-up with many of the 2" and over meter used lbr fire service. The current rate structure does not differentiate between commercial and residential customers and the City does not have industrial users. Using the average lbr the 3 years presented in Table 1, Chart 1 shows customer make-up by meter size; note that 87 percent of connections are 3/4" meters. Current Rate Structure: Customer Make-Up by Meter Size Final Draft 4 Battle Wells Associates The finance department maintains records on the amount of water delivered to customers; water delivered to customers is referred to as usage and it is the number of units of 748 gallons delivered to each customer's meter. Meter readers collect usage data and the finance department uses it to generate ~vater bills. Ifa meter reader is not able to collect the data, the billing system uses the customer's usage for the same month during the previous year to generate a bill. A comparison of water production and usage date for fiscal years 2001/02 and 2002/03 showed a difference between water produced and metered use, which is expected as system losses occur in the distribution process and through unmetered uses such as maintenance of fire hydrants. The revenue projections used in the preliminary financing plan are based on the average water usage for fiscal years 2001/02, 2002/03 and 2003/04. If water sales are higher than the estimates used, more revenue will be available to build the projects sooner or with less bonding, if water sales are lower than expected rates would need further adjustments. The data used to calculate average usage for fiscal years 2001/02, 2002/03 and 2003/04 came fi:om a query of finance department records of metered use (usage). Table 3 shows average annual water usage by meter size for this time period. Table 3 - City of Ukiah Water Utility - Annual Average Usage by Meter Size City of Ukiah Water Utility Annual Average Water Usage (in hcf) FY 2001/02 - 2003/04 Meter Annual Size Avera~le 314" 904,000 t" 134,000 1.5" 125,000 2" 206,000 3" 96,000 4" 190,000 6" & Up 51,000 1 hcf equals 748 gallons ~,706,000 Final Draft 6 Battle Wells Associates Table 4 - City of Ukiah Water utility - Anticipated Capital Spending 2004/05 - 2008/09 City of Ukiah Water 1Jtility Anticipated Capital Spending 2004/05 through 2008/09 Capital Improvements 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 Total Phase 1 - Capacity Expansion Design Engineering Construction Management Tank Construction (1) Connecting Pipelines Pbase 2 - Treatment Plant Retrofit Water Treatment Plant Constructio To~al Cost Capital Improvements Contribufion frnm Water Fund (1) Other Capital/Replacements $610,000 $0 $0 $0 $0 $610,000 523,000 0 0 0 0 523,000 2,250,000 2,250,000 0 0 0 0 4,500,000 900,000 0 0 0 0 900,000 0 _0 0 7,000~000 0 _0 _0 7,000,000 $2,250,000 $4,283,000 $7,000,000 $0 $0 SI} $13,530,000 2,250,000 250,000 0 $2,500,000 Anticipated Amount of Capital Cost Bonded $11,030,000 Water Permit $225,000 $0 $0 $0 $0 $225,000 Replacements~Upgrades 84,000 75,000 78,000 81,000 84,000 402,000 Vehicle Replacement 62,000 0 0 0 0 62,000 Water Main Repalcements 126,100 0 0 0 0 126,100 Misc Improvements 0 100,800 75~000 78~000 81,000 84~000 418,800 Other Capital/Replacements $0 $598,000 $150,000 $156,000 $162,000 $168,000 $1,230,000 Total Projected CapitaI Spending $2,250,000 $4,880,000 $7,150,000 $156,000 $162,000 (1) Amount and timing subject to change depending on financing method used $168,000 $14,760,000 Cost estimates are based on summer 2004 construction costs and include engineering and contingencies. Final Draft 8 Bartle Wells Associates Units Currently Included in the Monthly Service Charge The 1996 rate resolution included a number of units in the monthly service charge of some customer categories. Under this system, customers only pay fbr consumption in excess of the units included in the monthly service charge, in tire 1996 rate structure the number of units included in the monthly service charge increases with meter size also not in proportion to the potential demand larger meters place on water facilities. The increase in free units across meter size does not have the same ratio to a 3/4" meter as the increase in monthly service charge shown in table 6. Table 7 shows how free units in the monthly service charge increase across meter sizes. Table 7 - City of Ukiah Water Utility Comparison of Free Units and Ratios to 3/4" Meter in Current Rate Structure City of Ukiah Water Utility Current Rate Structure; Units in Monthly Service Charge Water Meter Size Number of Units Included Ratio to 3/4" Meter 3/4" 3 1.00 I" 5 1.67 1 1/2" 6 2.00 2" 7 2.33 3" l0 3.33 4" 13 4.33 6" & Up 17 5.67 Current Consumption Charge The water utility measures consumption in units of hundred cubic feet (hcf); each hcf is a unit of 748 gallons. Meter readers record the monthly consumption Rate $/hcf consumption of each customer and report the data to the finance department, which is in charge of billing for the water utility. If meter readers are not available or cannot access a property, the customer's consumption for the same period during the preceding year is used to generate the bill. 1.80 1.40 1.00 0.80 0.60 0.40 0.20 0.00 U kiah Average Final Draft 12 Battle Wells Associates It is important to consider that what the rate comparison tries to approximate is the cost a typical Ukiah consumer would incur in paying for the same monthly service and consumption amount using the surveyed agency's rate structure, in order to make a comparison we look at the typical monthly bill for a single family residence with a 3¼- meter and a consumption average of 16 units per month. This is does not always yield an accurate comparison since the consumption of the agency surveyed tnay not be the same as that o£Ukiah. The agencies surveyed were chosen by the City and these agencies were also used to compare rates in 1996 when Ukiah last implemented a rate increase. Table 9 presents the rates and of each of the agencies included in the survey. Table 9 - City of Ukiah Water Utility Rates of Agencies Surveyed City of Ukiah Water Utility Sur~ey of Rates in lJkiah'~ Surrouuding Communities Minimum Monthly Charge Meter Size Ukiah** Cotati Bodega** Willits Rogina Willow** Redwood** Millview 13.80 10.97 11.00 32.70 13.46 15.46 22.40 5.25 14.40 18.31 13.00 54.50 23.62 15.46 22.40 5.91 15.00 36.62 15.00 109.00 53.97 15.46 22.40 7.10 15.50 88.55 16.50 174.40 94.48 15.46 22.40 9.15 16.70 19.00 348.80 215.86 15.46 22.40 17.50 17.80 186.38 N/A 490.50 377.86 15.46 22.40 26.80 19.00 N/A 1~090.00 863.51 15.46 22.40 36.86 6" & U0 Consumption Rate (S/hca) Each hcfUnit =748 gallons 0.58 1.52 2.50 2.30 0.926 1.13 2.10 1.48 TypicalSingleFamilyMonthlyBill~ $ 21.34 $ 35.33 $ 31.00 $ 69.50 $ 28.28 $ 26.80 $ 33.59 $ 28.89 Dollar Change since 1996 Rate Not in 1996 Not in 1996 Sur*ey $ Survey Survey $ 17.30 $ 7.05 $ 8,67 $ 7.29 $ 0.25 Percent Change slate 1996 Rate Not iu 1996 Not in 1996 Survey 0% Survey Survey 33% 33% 48% 28% 1% *Single Family with 3/4" Connection and 16 hcf consumption **This table shows the minimum monthly charges and consumption rates per hcf unit fur each agency surveyed We also show the typical single family monthly bill assuming a 3/4" connection and consumption of 16 hcf per month Some agencies include a fixed number of units (expressed here in hca) in the monthly rate. Customers pay the monthly charge even ii their consumpfion is below the fixed number of units assigned to their connection size TO calculate the typical monthly bill we have accounled for units included in the monthly fee where applicable Agencies that include units in the monthly rate are ma~ked with asterisks Final Draft 14 Bartle l;Vells Associates Table 11 - City of Ukiah Water Utility - Revenue & Expenses June 2002, 2003 & 2004, City of Ukiah Water Utility Historical Revenue & Expenses Revenue (in thousands) Year Ending June 30, 2002 2003 2004 Water Sales $1,877 $1,839 $1,845 Connection Fees 37 17 48 lnterest Earnings 217 187 106 Other Reveuue (13) 74 24 Total Revenue $2,119 $2,117 $2,024 Expenses (in thousands) Year Ending June 30, 2002 2003 2004 Salaries & Benefits $432 $570 $637 Operations & Maintenance 762 645 656 Capital Replacements 3 95 71 Utilities 416 442 412 Capital Improvement Expenses 20 640 112 Debt Payment 181 181 181 Total Expenses $1,815 $2,573 $2,069 The City has not increased water rates since 1996. Water sales and service revenue has remained virtually unchanged and connection fee revenue has also remained largely unchanged. The fund balance contributed interest earnings but we do not expected growth in this revenue category since the water utility is using its reserve for the required capital improvements. The water utility has managed to operate within the revenue generated through existing rates but its operating expenses have not remained immune to inflationary pressures. The consumer price index tbr the San Francisco Bay area shows that between 1997 and 2003 the average annual increase in CPI was 3.44%. The water utility was sheltered from the drastic electric power cost increases of the early 2000s because the electric power used by the water utility is produced by Ukiah's electric utility, which also has not increased rates since the 1990s. Final Draft 16 Battle Wells Associates The current connection fee ordinance states that connection fees are based on the connection size. Cmmection fees increase in price with meter size in proportion to AWWA standards. Table 13 lists the current connection fee for each meter size. Table 13 City of Ukiah Water Utility -Connection Fees City of Ukiah Water Utility Current Connection Fees Meter Current Demand Size Fee Capacity 3/4" $660 1.00 1" 1,100 1.67 I 1/2" 2,200 3.33 2" 3,520 5.33 3" 7,040 10.67 4" 11,000 16.67 Over 4" Connection Fee Determined by City Council Note that Table 6 shows that current connection fees increase proportionally with AWWA demand capacity discussed earlier in the report. Fh~al Draft 18 Battle Wells Associates clearly delineate the nexus for additional cost and because this is not a significant revenue source warranting additional customer categories. Proposed Consumption and Monthly Service Charge Rates In order to generate the revenue required to finance current capital needs the water utility will need to implement a series of rate increases. The City wants to recover the cost of service from among its customer in a fair and equitable manner. The proposed rates address this objective by increasing the monthly service charge across meter sizes in , proportion to AWWA guidelines. Our recommendation is to adopt rates that incorporate AWWA demand capacity guidelines and generate the revenue required to meet the revenue pledge of the proposed 2005/06 water bond. Table 14 shows proposed potable and fire service monthly service charges and unit consumption rates for FY 2004/05 2008/09. Table 14 - City of Ukiah Water Utility Proposed Water Rates 2004/05 - 2008/09 City of Ukiah Water Utility Proposed Water Rates Fiscal Years 2004/05 through 2008/09 Proposed Monthly Service Charge Effective: Meter Size/ In City May November November November November Class Description Rates 2005 2005 2006 2007 2008 3/4" Meter $13.80 $14.08 $14.36 $14.64 $14.94 $15.24 1" Meter 14.40 18.38 21.58 22.97 24.41 25.90 I 1/2" Meter 15.00 27.76 37.85 41.85 45.99 50.28 2" Meter 15.50 39.33 58.10 65.38 72.93 80.75 3" Meter 16.70 66.52 105.72 120.70 136.25 152.36 4" Meter 17.80 104.92 173.40 199.43 226.44 254.45 6" & Up 19.00 200.16 341.13 394.53 449.92 507.37 Fire Service 2" & Under 15.50 7.87 11.62 13.08 14,59 16.15 Fire Service 3" Meter 16.70 13.30 21.14 24.14 27.25 30.47 Fire Service 4" Meter 17.30 20.98 34.68 39.89 45.29 50.89 Fire Service 6" & Up 20.70 40,03 68.23 78.91 89.98 101.47 Proposed Consumption Rate (S/unit; 1 unit is 748 gallons) $0.58 $0.73 $0.91 $1.07 $1.20 $1.29 Final Draft 20 Bartle Wells Associates Recommended Connection Fee Update Connection fees are one-time charges to new customers that are used to recover the capital costs for facilities needed to serve them. The fees must be reasonable and non- arbitrary, and based on facility capital costs, and system capacity. A variety of methods may be used to determine the appropriate connection fee. The vast majority of water agencies in California and elsewhere require that future users pay the costs of facilities provided to serve them. The alternative to collecting fees from new development is raising charges to current users (usually in the monthly service charge). This is not equitable. Connection fees are a fair method of collecting the buy-in cost of the water system from new users. This section recommends updates to the connection fee given the value of existing facilities based the current asset listing and the capital improvements underway. The value of capital improvements and fixed assets, which takes into account original cost and accumulated depreciation, are calculated and the outstanding principle on existing debt is subtracted giving us a the total capital investment on the utility. The current total capital investment value of water facilities amounts to approximately $18.7 million. This amount gives us a starting point for what it would cost to replace the major elements of the water department's water facilities. Or replace aging assets. System capacity is incorporated into the calculation and the fee is established according to meter size. The basic intent of the recommendation is to charge each new water user the estimated reasonable costs of providing water service pursuant to Cali]~brnia Government Code §66000 et Seq. Connection fees should be adjusted regularly to prevent them from falling behind the costs of constructing new facilities. Several methods can be used to adjust the connection fees, including: · ENR Construction Cost index: ENR (Engineering News-Record) magazine publishes construction cost indices monthly for 20 major U.S. cities and an average of 20 cities Final Draft 22 Battle Wells Associates Recommended Capital Financing Method We recommend a balanced use of current water fund reserves and one bond issuance secured by revenue from the water utility. This plan uses an initial pay-as-you-go element (a draw from existing water fund reserves) to begin construction of three storage tanks and one bond issue, a revenue bond currently planned for late 2004/05 or early 2005/06, to complete the storage capacity expansion and fund the treatment plant retrofits. One advantage of this option is that the City will have the facilities to store water operational by Summer 2005. The bond plan allows the costs to be spread over a longer period of time, twenty five years is the projected term of the bond. Future users would also contribute toward the cost of the storage facilities. To implement this (or any other) option, the City must move quickly to update its water rate structure and levy a series water rate increases. An established revenue stream should be in place before any bonds are sold. The recommended updates to the water rate structure, presented in this report, and the proposed rate increases will ensure the City has the revenue required to meet its bond obligation. The City is in the process of considering the proposed rate increases, including the required Proposition 218 notice requirements. The preliminary financing plan will be completed in April once the City has considered and decided on the proposed rate increases. Final Draft 25 Bartle Wells/issociates ITEM NO.: ~ DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: APPROVAL OF MENTONIRUFF SITE DEVELOPMENT PERMIT NO. 04-30 AND ROCHAJRUFF SITE DEVELOPMENT PERMIT 04-33. SUMMARY: Mr. Estok Menton and Antonio Rocha and their architect Mr. Richard Ruff have applied for separate Site Development Permits to construct a total of 32 apartment units on four contiguous parcels located at the end of Apple Avenue. The Council recently amended the General Plan and rezoned the parcels to accommodate this "Master Planned" medium to high density residential project. This Agenda item is seeking City Council conditional approval of the Site Development Permits. Both projects have been combined into this Agenda Summary Report to facilitate an understanding of the "Master Planned" approach by Mr. Menton and Mr. Rocha. BACKGROUND: In the latter part of 2004, Mr. Menton and Mr. Rocha, the owners of the four contiguous parcels located at the northern terminus of Apple Avenue, submitted multiple discretionary permit applications to the Ukiah Planning Department. These applications were submitted to change the property line configurations, General Plan land use designations and zoning for all four lots, and to construct the 32 apartment units. (continued on PaRe 2) RECOMMENDED ACTION: 1. Conduct a public hearing regarding both Site Development Permit projects; 2. Adopt the Negative Declaration prepared for the projects; and 3. Approve Major Site Development Permits No. 04-30 and 4-33, based on the Findings and Conditions of Approval recommended by the Ukiah Planning Commission. ALTERNATIVE COUNCIL POLICY OPTION: 1. Do not approve Major Site Development Permits, and provide direction to staff. Citizen Advised: Legally noticed according to the requirements of the Ukiah Municipal Code. Requested by: Estok and Miskal Menton, and Antonio Rocha, property owners, and Richard Ruff, architect and applicant Prepared by: Dave Lohse, Associate Planner Coordinated with: Candace Horsley, City Manager and Charley Stump, Planning Director Attachments: 1. Site Plan, Elevation Drawings, and Landscape Plan 2. Mitigated Negative Declaration 3. Planning Commission Staff Report for Site Development Permit #04-30 (Menton) 4. Planning Commission Staff Report for Site Development Permit #04-33 (Rocha) 5. Planning Commission Minutes, dated February 23, 2005 APPROVED: Candace Horsley, Cit~,Manager The City Engineer approved the Boundary Line Adjustment, and the Planning is recommending conditional approval of the Site Development Permits. PROJECT DESCRIPTIONS: The following text provides a project description for both the Menton/Ruff and Rocha/Ruff projects. Menton: This proposed 16-unit apartment complex development will entail the conversion and expansion of the existing contractor's office/shop building on the south side of the site into a two- story apartment building. This building will contain a total of seven apartments, including three two-story units with a loft on the top floor. The other four apartment units would be on the east side of the structure, with two on the ground floor and two on the top floor. It will also include the construction of two new two-story apartment buildings on the northern portion of the site, with four apartments in one building and five apartments in the other. The areas between the buildings will be paved for the western portion of the public cul-de-sac terminus for Apple Avenue, on-site access driveways, parking stalls, and a screened trash/recycling receptacle area. There will also be covered parking stalls on the east side of the building in the northwest corner of the site and in front of the building in the northeast corner. Rocha: This project also involves the construction of 16 apartment units on two separate parcels. The apartment complex development will entail the construction of three new two-story apartment buildings containing eight apartments on the proposed lot lying on the northern portion of the site. This development will include two containing two multi-story apartment units and a third building containing four utility apartments and the manager's office and laundry. The proposed lot comprising the southern portion of the site will contain buildings that essentially mirror the buildings on the northern portion of the site, with eight apartments but no manager's office or laundry. The areas between the buildings will be paved for the eastern portion of the public cul-de-sac terminus for Apple Avenue, on-site access driveways, parking stalls, and a screened trash/recycling receptacle area. There will also be covered parking stalls in front of several of the buildings. The areas along the project perimeters will contain small individual yard areas, large landscape planters and an extensive garden area. The landscaping will include a greater proportion of new landscaping than the Menton property to the east, with Dwar[ Magnolia, Red Maple, and Crape Myrtle trees used throughout the perimeter areas. A wide variety of shrubs and groundcovers will also be used in the perimeter areas and in smaller planters in the center areas of the site. PROJECT ISSUES AND PLANNING COMMISSION ACTION: On February 23rd of this year, The Ukiah Planning Commission conducted a public hearing for the Site Development Permit projects. During the hearing, several members of the public voiced concerns about the narrow width of Apple Avenue and the potential for congestion as the result of the additional traffic the proposed apartments would generate. The owner of an abutting parcel also cited the potential loss of privacy that would be caused by the construction of two-story buildings adjacent to the common property line. The Planning Commission discussed the projects at length, with emphasis on the proposed high density land use designations and zoning, the potential traffic impacts to Apple Avenue and Cherry Street, the effects of aircraft flying over the site, the potential loss of privacy and visual impacts caused by two-story construction, and drainage. The Commissioners agreed that additional landscaping would be required to lessen the privacy and visual impacts caused by the development of two-story structures on the subject lots. The Commission then voted unanimously to recommend that the City Council adopt the Mitigated Negative Declaration and conditionally approve the Site Development Permits. 2 The Planning Commission recommended that the City Council impose 30 Conditions of Approval on each project. It modified Condition No. 15 to include text that requires "Vertical landscaping including medium to large canopy trees shall be planted in the landscape planter adjacent to the cul-de-sac to provide screening of the two-story wall facing the this public right- of-way." CITY COUNCIL ACTION: On March 16, 2005, the Ukiah City Council approved a Resolution to change the General Plan land use designations on the Menton and Rocha parcels to High Density Residential. The Council also unanimously introduced an Ordinance to change the Zoning Map to R-3 (High Density Residential). The Ordinance is on the April 6, 2005 consent calendar for adoption prior to the public hearings for the Site Development Permits. ON-SITE RECREATION: During the City Council discussion of the General Plan Amendment and Rezoning, the issue of on-site recreation facilities was raised. The project includes individual yard spaces for the lower units and a large communal garden area for the complex. Additionally, there is a passive open space/recreation area in the center of the complex, and landscaped areas adjacent to the cul-de-sac. These two landscaped areas could be converted to active on-site recreation locations by requiring "tot-lot" or other play infrastructure. ENVIRONMENTAL REVIEW: On March 16, 2005, the City Council approved a Mitigated Negative Declaration for the General Plan Amendment and Rezoning project. That document was also prepared for the Menton/Ruff and Rocha/Ruff Site Development Permits. Staff recommends that the Council take action to approve the Mitigated Negative Declaration for the Site Development Permits prior to taking action on the projects. CONCLUSIONS: Planning staff concludes that the approval of the proposed Site Development Permits will allow the development of the type of infill housing envisioned in the 2004 General Plan Housing Element. The project will change the current setting of the area, and introduce additional people, vehicles, and typical residential noises to the surrounding mixed use neighborhood. However, the Planning Commission and Staff have concluded that because of the project design and recommended conditions of approval, the changes to the setting will not be significantly adverse. The project has also been found to be consistent with the other policies Ukiah General Plan, the applicable standards of the Ukiah Municipal Code, and the compatibility criteria of the Ukiah Airport Master Plan. RECOMMENDATION: Staff recommends that the City Council support the Planning Commission's action on the project and: 1) Adopt the proposed Mitigated Negative Declaration; and 2) Approve the Site Development Permit applications based on the findings and conditions of approval recommended by the Planning Commission. 3 CITY OF UKIAH MITIGATED NEGATIVE DECLARATION DATE: APPLICANTS: PROJECTNOS.: LOCATION: January 31, 2005 Ruff & Associates, Inc. for Estok Menton and Antonio Rocha General Plan AmendmentJZone Change 04-32; Major Site Development Permit No. 04-30; and Major Site Development Permit No. 04-33 760 & 767 Apple Avenue, City of Ukiah, County of Mendocino (Assessor Parcel Numbers 003-050-29, 66, 85 & 86) PROJECT DESCRIPTION: The proposed project consists of three separate applications that would allow the development of two multiple-family residential apartment complexes on the four contiguous lots described in the Environmental Setting portion of this document. The individual applications are described below: General Plan Amendment/Zone Change No. 04-32: Menton/Rocha will allow the General Plan land use designation for the 0.75-acre Menton property on the western portion of the project site to be changed from a mix of C (Commercial) and MDR (Medium Density Residential) to HDR (High Density Residential). It would also rezone these lands from C-1 (Community Commercial) and R-2 (Medium Density Residential) to R-3 (High Density Residential). The approval of this application will also allow the General Plan land use designation for the 0.69-acre Rocha property making up the eastern portion of the project site to be changed from MDR (Medium Density Residential) to HDR (High Density Residential) and rezone it from R-2 (Medium Density Residential) to R-3 (High Density Residential). Major Site Development Permit No. 04-30: Menton will allow the development of 16 apartment units in three two-stow buildings located on the lands comprising the Menton property. This project will entail the conversion of the existing contractor's office/shop building on the southern half of the site and the construction of three new structures containing apartments, a laundry room, and on-site manager's facilities. The development will also include paved access driveways, parking areas, and open garden and landscaping areas. Major Site Development Permit No. 04-33: Rocha will allow the development of 16 apartment units in six two-story apartment buildings located on the lands comprising the Rocha property. This project will entail the demolition of the two existing single-family residential structures on the site and the construction of the proposed apartment buildings. Proposed development will also include paved driveways and parking areas, as well as open yard areas abutting the proposed structures. The two apartment complexes will be developed separately, but ingress and egress to the on-site access driveways and apartment buildings will be over a shared cul-de-sac and access driveway that will be constructed at the northern terminus of Apple Avenue prior to the' issuance of any occupancy permits for new construction on any of the parcels. Mitigated Negative Declaration/Initial Study for 1 GPA/ZC ,~o. 04-32; SDP 04-30; & SDP 04-33 DESCRIPTION OF ENVIRONMENTAL SETTING: The project site analyzed in this study actually consists of four parcels located at the northern terminus of Apple Avenue. These Jots, which have a total area of approximately 1.44 acres, are bounded on the north by the Danco/Summercreek apartment complex and by a mix of iow-density and medium-density residential development on the west and south. The right-of-way for the railroad tracks operated by the North Coast Railroad Authority (NCRA) runs along the eastern flank of the site. The two lots comprising the western portion of the site are owned by Estok and Miskal Menton, who have developed a two-story contractor's office/shop building on the site's southern half. The existing development also includes a large garden area and an unpaved access driveway to Apple Avenue, with a small residential cottage located on the narrow lot that makes up the eastern half of the property. The lots on the eastern portion of the site are owned by Antonio Rocha. These lands are currently developed with two single-family residences that have unpaved driveway access to Apple Avenue. The remaining areas consist of large yard areas and several mature trees. The existing property lines for the four parcels making up the project site are not conducive to the development pattern proposed in the site development plans proposed by the various owners. Therefore, the applicants previously submitted Boundary Line Adjustment No. 04-31 to establish the parcel lines proposed in each of the Site Development Permit projects discussed above. This BLA application was approved by the Ukiah City Engineer in September of last year, but it will not be recorded to finalize the reconfiguration of the lots unless the proposed General Plan Amendment/Zone Change and development projects are approved. ENVIRONMENTAL ANALYSIS: City of Ukiah staff conducted a careful and comprehensive review of the project that included the preparation of an Environmental Checklist in which potentially significant adverse impacts to biological resources, geology and soils, and hydrology and water resources were identified. Based on this analysis, staff concluded the project w require the adoption of mitigation measures and a m tgation monitoring program to lessen these impacts to levels that are not significant. Staff further concluded that a Mitigated Negative Declaration for the project is appropriate and specific Findings in support of this determination are listed below. FINDINGS SUPPORTING A MITIGATED NEGATIVE DECLARATION: 1. Based upon the analysis, findings and conclusions contained in the Initial Study, the project does not have the potential to degrade the quality of the local or regional environment; 2. Based upon the analysis, findings and conclusions contained in the Initial Study, the project will not result in short-term impacts that will create a disadvantage to long-term environmental goals; 3. The potentially significant impacts resulting from this project would be mitigated to levels that are not considered to be significant if the recommended mitigation measures are adopted; 4. Based upon the analysis, findings and conclusions contained in the Initial Study, the project will not result in impacts that are individually limited, but cumulatively considerable; and 5. Based upon the analysis, findings, and conclusions contained in the Initial Study, the project will not result in environmental impacts that will cause substantial adverse effects on human beings, either directly or indirectly. Mitigated Negative Declaration/Initial Study for 2 GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 establish the parcel lines proposed in each of the Site Development Permit projects discussed above. This BLA application was approved by the Ukiah City Engineer in September of last year, but the applicants do not intend to record the amended parcel lines unless the proposed General Plan Amendment/Zone Change and development projects are approved. SUMMARY OF FINDINGS After careful review and the preparation of an Environmental Checklist (Attachment 2), it has been determined that the proposed project could have a significant adverse impact on the environment. However, a detailed and comprehensive mitigation program has been developed that will successfully mitigate the impacts to levels of insignificance. There is substantial evidence in the administrative record that supports this determination, including the facts contained in the technical studies prepared by qualified professionals. Accordinqly, it has been determined that the proposed project, as mitiqated, will not violate any of the siRnificance criteria, and therefore a Mitiqated Negative Declaration is appropriate for the project. Mitigated Negative Declaration for GPA./ZC No 04-32; SDP 04-30: & SDP 04-33 ~-- 3 INITIAL STUDY OF POTENTIAL ENVIRONMENTAL IMPACTS CITY OF UKIAH I. BACKGROUNDINFORMATION 1. Name of Project: General Plan Amendment/Zone Chanqe No. 04~32; Maior Site Development Permit No. 04-30; and Maior Site Development Permit No. 04-33 2. Name of Project Proponent: Ruff & Associates, Inc. for Estok and Miskal Menton and Antonio Rocha 3. Address of Project Proponent: 120-A West Standley Street, Ukiah, CA 95482 4. Project Location: 760 and 767 Apple Avenue, Ukiah, CA 5. Assessors Parcel Number(s): 003-050-29, 66, 85 & 86 6. Date of Initial Study Preparation: January 31,2005 7. Name of Lead Agency: City of Ukiah 8. Address and Phone Number of Lead Agency: 300 Seminary Avenue, Ukiah, CA 95482 / (707} 463-6200 9. Environmental Setting / Project Description: Description on paqe 2 of this Initial Study) (See the detailed Project 10. Plans, Exhibits, and other Submitted Application Materials: All the plans, exhibits, technical reports, and other submitted application materials are available for review at the City of Ukiah Planninq Department - 300 Seminary Ave., Ukiah. 11.Initial Study Prepared by: Ukiah PlanninR Department Staff Mitigated Negative Declaration/Initial Study for ~..4~ GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 PROJECT DESCRIPTION: The proposed project consists of three separate applications that would allow the development of two multiple-family residential apartment complexes on the four contiguous lots described in the Environmental Setting portion of this document. The individual applications are described below: General Plan Amendment/Zone Change No, 04-32: Menton/Rocha will allow the General Plan land use designation for the 0.75-acre Menton property on the western portion of this site to be changed from a mix of C (Commercial) and MDR (Medium Density Residential) to HDR (High Density Residential). It would also rezone these lands from C-1 (Community Commercial) and R-2 (Medium Densi~ Residential) to R-3 (High Density Residential). The approval of this application will also allow the General Plan land use designation for the 0.69- acre Rocha property making up the eastern portion of the project site to be changed from MDR (Medium Density Residential) to HDR (High Density Residential) and rezone it from R-2 (Medium Density Residential) to R-3 (High Density Residential). Major Site Development Permit No. 04-30: Menton will allow the development of 16 apartment units in three two-story buildings located on the lands comprising the Menton property. This project will entail the conversion of the existing contractor's office/shop building on the southern half of the site and the construction of new structures containing apartments, a laundry room, and on-site manager's facilities. The development will also include paved access driveways, parking areas, and open garden and landscaped areas. Major Site Development Permit No. 04-33: Rocha will allow the development of 16 apartment units in six two-story apartment buildings located on the lands comprising the Rocha property. This project will entail the demolition of the two existing single-family residential structures on the site and the construction of the proposed apartment buildings. This development will also include paved driveways and parking areas, as well as open yard areas abutting the proposed structures. The two apartment complexes will be developed separately, but ingress and egress to the on-site access driveways and apartment buildings will be over a joint-use cul-de-sac and access driveway that will be constructed at the northern terminus of Apple Avenue prior to the issuance of any occupancy permits for new construction on any of the parcels. DESCRIPTION OF ENVIRONMENTAL SETTING: The project site analyzed in this study actually consists of four parcels located at the northern terminus of Apple Avenue. These lots, which have a total area of approximately 1.44 acres, are bounded on the north by the Danco/Summercreek apartment complex and by a mix of [ow-density and medium-density residential development on the west and south. The right-of-way for the North Coast Railroad Authodty's railroad tracks runs along the eastern flank of the site. The two lots comprising the western portion of the site are owned by Estok and Miskal Menton, who have developed a two-story contractor's office/shop building on the southern half. The existing development also includes a large garden area and a paved access drivewayto Apple Avenue. There is also a small residential cottage located on the narrow lot that makes up the eastern half of the Menton property. The Iots on the eastern portion of the site are owned by Antonio Rocha. These lands are currently developed with two single-family residences that have unpaved driveway access to Apple Avenue. The remaining areas consist of large yard areas and several mature trees. The existing property lines for the four parcels making up the project site are not conducive to the development pattern proposed in the site development plans proposed by the various owners. Therefore, Boundary Line Adjustment No. 04-31 was previously submitted by the applicants to Mitigated Negative/Initial Study Declaration for 2 GPA/ZC No. 04-32; SDP 04-30: & SDP 04-33 establish the parcel lines proposed in each of the Site Development Permit projects discussed above. This BLA application was approved by the Ukiah City Engineer in September of last year, but the applicants do not intend to record the amended parcel lines unless the proposed General Plan Amendment/Zone Change and development projects are approved. SUMMARY OF FINDINGS After careful review and the preparation of an Environmental Checklist (Attachment 3), it has been determined that the proposed project could have a significant adverse impact on the environment. However, a detailed and comprehensive mitigation program has been developed that will successfully mitigate the impacts to levels of insignificance. There is substantial evidence in the administrative record that supports this determination, including the facts contained in the technical studies prepared by qualified professionals. Accordinqly, it has been determined that the proposed proiect, as mitiqated, will not violate any of the siqnificance criteria, and therefore a Mitiqated Ne.qative Declaration is appropriate for the project. Mitigated Negative Declaration for · ~,,-(~ GPAJZC No. 04-32; SDP 04-30; & SDP 04-33 DISCUSSION AND ANALYSIS OF POTENTIAL ENVIRONMENTAL IMPACTS I, AESTHETICS A. Settinq: The subject properties are located in a portion of the city where no distinct aesthetic characteristics prevail and there are no scenic views or vistas. The residential buildings on the Rocha-owned portion of the site are older, single-family residential style buildings that are highly consistent with the majority of the buildings to the south and with the appearance of the contractor's office/shop structure on the abutting Menton property. The more commercial design on the multi- stow Menton structure was approved through several discretionary permits to allow the original building development and a minor expansion. The grounds for the subject properties have retained the look of the nearby residential neighborhood by including large yard areas with well-established trees and a large garden plot on the Menton site. B. Significance Criteria: Aesthetic impacts would be significant if the project resulted in obstruction of any scenic view or vista open to the public, damage to significant scenic resources within a designated State scenic highway, creation of an aesthetically offensive site open to the public, substantial degradation to the existing visual character or quality of the site and its surroundings, or generation of new sources of light or glare that adversely affect day or nighttime views in the area, including any direct illumination or reflection upon adjacent property, or could be directly seen by motorists or persons residing, working or otherwise situated within sight of the project. C. Impacts: The construction of the proposed apartment complexes will not cause obstructions to any scenic view or vista or damage to a significant scenic resource since there are none present on the site. The proposed infill construction will substantially alter the appearance of the subject properties by increasing the number of buildings and using two-story construction. However, staff notes that the building designs for the proposed apartment buildings are generally more attractive than and highly compatible with those used in the Danco/Summercreek apartment complex to the north. Additionally, the proposed buildings will utilize a number of design features and building materials that are consistent with those used on the single-family residences to the south. Therefore, it is anticipated that the changes to the appearance of the subject properties will not create an aesthetically offensive site or cause substantial degradation to the visual characteristics of the neighborhood. In fact, it is staff's opinion that the proposed building designs will provide an effective and attractive aesthetic balance between the various building types surrounding the site. The landscaping proposed for the apartment complexes is generally consistent with that required for multiple-family developments in the R-3 Zoning District, particularly through the use of perimeter landscaping, rear yard areas, and the retention of a large garden area on the portion of the site owned by the Mentons. Therefore, site landscaping is not considered to be an adverse aesthetic impact and no mitigation measures will be required. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 Outdoor lighting associated with the project could be a nuisance to neighboring properties if allowed to shine offsite towards neighboring properties or the night sky. There is no indication that adverse lighting sources will be present as part of the development, but subsequent development of obnoxious lighting sources could cause significant adverse lighting impacts. Therefore, Planning staff has included the measure below to ensure that future lighting impacts are not significant in nature. D. Miti.qation Measures to Off-Set LiRhtinR Impacts: Prior to the issuance of a Building Permit, a Final Landscaping/Lighting Plan shall be submitted for review and approval by the Director of Planning and Community Development or his/her designee. The Final Landscaping Plan shall also include details regarding exterior lighting for structures, garden areas, and walkways, which shall be hooded and down-cast, and shall not shine towards neighboring properties or skyward. E. Impact Si.qnificance After Mitiqation: Limiting site lighting away from neighboring properties and the night sky will reduce the potentially significant adverse visual quality impacts to levels of insignificance. II. AGRICULTURAL RESOURCES A. Settinq: The City of Ukiah is a small, but urbanized area, and the subject properties are located in an area where a mix of commercial and Iow to medium density residential land uses prevail. In fact, the nearest agricultural resources are located over one-half mile away, east of Highway 101. B. SiRnificance Criteria: A significant impact to agricultural resources would occur if implementation of the project caused a conversion of prime agricultural lands to non-agricultural uses or conflicted with lands zoned for agricultural uses or subject to the Williamson Act. C. Impacts: No impacts to agricultural resources will be caused by the project since it will not require the conversion of existing agricultural lands and is not adjacent to agricultural operations. D. Miti.qation Measures: None required. E. Impact SiRnificance After Miti.qation: NIA III. AIR QUALITY A. Settinq -Air Basin Characteristics: The concentration of a given pollutant in the atmosphere is determined by the amount of pollutant released and the atmosphere's ability to transport and dilute the pollutant. The major determinants of transport and dilution are wind, atmospheric stability, terrain, and sunshine. In Ukiah, the combined effects of moderate winds, clear skies, frequent atmospheric inversions that restrict vertical dilution, and terrain that restricts horizontal dilution, result in a relatively high potential for air pollution. The City of Ukiah is situated in the flat and narrow Ukiah Valley and the presence of the mountains on both the west and east sides of the valley tends to restrict the horizontal east-west movement of pollutants. The dominant wind direction in the Ukiah Valley is from the northwest to the southeast. Mitigated Negative Declaration for GPA~ZC No. 04-32; SDP 04-30; & SDP 04-33 Wind speeds in the central portion of the community are moderate, with wind speeds of 4 mph or less occurring over 60 percent of the time. While the potential for air pollution is high in the Ukiah Valley, measurements provided by the Mendocino County Air Quality Management District show that actual pollutant levels are relatively Iow due to the lack of upwind sources and the relatively Iow level of development in the local air basin. B. Si.qnificance Criteria: ,Air Quality Impacts would be significant if the project results in any conflicts with or obstructions to implementation of any applicable Air Quality Plan; violation of any air quality standard or substantial contributions to an existing or project air quality violation, including a cumulatively considerable net increase of any criteria for which the region is in nonattainment as defined by Federal or State regulations; exposure to sensitive receptors to substantial pollutant concentrations; or creation of objectionable odors affecting a substantial number of peopte. C. Air Quality Standards: The Federal Clean Air Act Amendments of 1970 established National Ambient Air Quality Standards for six "criteria pollutants." These include photochemical ozone, carbon monoxide, sulfur dioxide, nitrogen dioxide, particulate matter, and lead. California then adopted its own Clean Air Act in 1977, creating separate and stricter air quality standards. Each standard is measured as the duration of time for which a specific contaminant level cannot exceed. The standards are designed to protect the public from health hazards, visibility reduction, soiling, nuisance, impacts to crops, and other forms of air quality damage. D. Violation of a State Standard: If a county (or a portion of a county located within an air basin) exceeds the State standard for any of the criteria pollutants, the State Air Resources Board (ARB) can designate it as non-attainment for that substance. To evaluate the exceedance, the ARB uses standard criteria found in the State Health and Safety Code. It reviews air-sampling data to determine the nature and extent of the exceedance, and it makes a finding as to whether or not the exceedance was a highly irregular or infrequent event. If it is determined that the exceedance was an exceptional event caused by an act of nature or unusual human activity, it is deemed an exceedance and not a violation. Similarly, if the exceedance is an extreme concentration event (unusual meteorology) or an unusual concentration event (an anomalous exceedance which does not qualify as an exceptional event or extreme concentration event), it is not regarded as a violation, and the designation for the area does not change. The ARB will designate an area as attainment for a pollutant if the data shows that the State standard for that pollutant was not violated during the previous three (3) years. Again, exceedances affected by highly irregular or infrequent events are not considered violations and, therefore, are not considered in the area designation process. As a result, an area may have measured concentrations that exceed a State standard and still be designated as attainment. A District that becomes designated as nonattainment for ozone, carbon monoxide, nitrogen dioxide, or sulfur dioxide is required to develop a plan for attaining the State standard for that particular pollutant. The plan must be submitted to the State Air Resources Board (ARB) for review and approval. The ARB has indicated that an attainment plan, particularly one for multiple pollutants can be very expensive (M. Nystrom, ARB, personal communication, 1997). Another possible consequence of a nonattainment designation is the ability to levy fees under certain conditions. Nonattainment Districts are authorized to levy a fee of up to $4.00 on motor vehicles registered in the District for the purposes of California Clean Air Act implementation. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-~3 E. Existinq Air Quality in Llkiah: The Mendocino County Air Quality Management District (MCAQMD) operates a monitoring site in Ukiah measuring concentrations of PM-10. Prior to August of 1988 the District also monitored several gaseous pollutants in Ukiah. In August of 1992, the District again established a multi-pollutant monitoring site in Ukiah for gaseous pollutants, which measures ozone, carbon monoxide, nitrogen dioxide and sulfur dioxide. Air quality in Ukiah meets all Federal and State air quality standards with the exception of the State 24-hour PM-10 standard. This standard was exceeded on 3 days in 1990, 2 days in 1991,0 days in 1992, 2 days in 1993, and 1 day in 1994. No exceedances have occurred since 1994. Sources of PM-10 include field burning, dust from unpaved roads and grading operations, combustion, and automobiles. 54 of the 58 counties in California are designated non-attainment for PM-10, which means that most of the California air basins exceed the permitted 24-hour concentration. The ARB does not require an Attainment Plan for jurisdictions that violate the PM~10 standard. Ozone is one of the most serious pollutants affecting the State, and 30 of the 58 counties are designated non-attainment. While Mendocino County is attainment for ozone, the Ukiah (East Gobbi Street) sampling station has shown a steady increase in the annual hours of ozone levels exceeding the 40, 50, and 60 pads per billion thresholds since 1993. Additionally, the 80 ppb (State standard = 90 ppb) threshold has been exceeded twice over the past4 years. However, based upon 1993-1995 data, the ARB has assigned Ukiah an "Expected Peak Day Concentration" (EPDC) level of 74 ppb, which means that any values above 70 ppb would be excluded from the designation process as extreme concentrations (Marcella Nystrom, ARB, personal communication, 4/24/97). Regardless of the attainment designation and the EPDC status, ozone remains as the pollutant of primary concern to the Mendocino County Air Quality Management District. The major sources of ozone precursors are combustion sources such as, factories, automobiles, and evaporation of solvents and fuels. Other State criteria pollutants measured in Mendocino County have routinely had maximum concentrations well below the applicable Federal or State standards. The only other pollutant of significant concern is Carbon Monoxide (CO). The local threshold for point source production of CO is 550 pounds per day. Carbon Monoxide (CO) is an odorless, colorless gas whose primary source is automobiles. Concentrations of CO measured in Mendocino County have never exceeded State or Federal standards, and current maximum concentrations measured in Ukiah are well below the applicable standards. F. Project Characteristics in Relation to Air Quality: The proposed development of 32 apartments on the subject properties is expected to generate typical shod-term air quality impacts (PM-10/dust) as a result of site preparation and grading activities during the construction phases. In addition, some vehicle emissions will be produced from heavy equipment, and ultimately from vehicles associated with the future residential use of the proposed parcel. G. Short-term Construction Related Air Quality Impacts: Construction activities create a wide range of emissions, ranging from exhaust from heavy equipment to the air-bound organic gases from solvents, insulating materials, caulking materials, and "wet" pavement. However, while these emissions may contribute to the accumulation of substances that undergo the photochemical reaction that creates urban ozone, they are not regarded as significant shod-term impacts. Mitigated Negative Declaration for GPA./ZC No. 04-32; SDP 04-30; & SDP 04-33 Dust generated by equipment and vehicles used in construction of the building pads, driveways, and the cul-de-sac entrance would cause the most substantial short-term construction-related air quality impacts. Fugitive dust is emitted both during site preparation, grading, and construction activity and as a result of wind erosion over exposed earth surfaces. Construction dust impacts are extremely variable, being dependent upon wind speed, soil type, soil moisture, the type of construction activity and acreage affected by the construction activity. The highest potential for construction dust impacts typically occur during the late spring and summer, and early fall months when soils are dry. These small particulates are respirable particulates that can increase the risk of chronic respiratory disease, and can alter lung function in children and the elderly when distributed in large enough concentrations. It can also rise into the lower troposphere and contribute to ozone production. Based on the project plans submitted for the development projects, it is estimated that less than one and a half acres of earth will be exposed during the most intense site preparation activities for building pads, driveways, and landscaping. This is not considered a substantially large area, but the site preparation activities required for this project could cause potentially significant levels of dust (PM-10) if exposed soils are left unattended. Therefore, staff recommends that the dust control measures listed below be required to mitigate potential impacts. H. MitiRation Measures for Dust (PM10) Control: All activities involving site preparation, excavation, filling, grading, road construction, and building construction shall institute a practice of routinely watering exposed soil to control dust, particularly during windy days. 3. All inactive soil piles on the project site shall be completely covered at all times to control fugitive dust. All activities involving site preparation, excavation, filling, grading, and actual construction shall include a program of washing off trucks leaving the construction site to control the transport of mud and dust onto public streets. 5. Low emission mobile construction equipment, such as tractors, scrapers, and bulldozers shall be used for earth moving operations. 6. All earth moving and grading activities shall be suspended if wind speeds (as instantaneous gusts) exceed 25 miles per hour. I, Impact Si.clnificance After Mitiqation: Based upon the comprehensive nature of the recommended mitigation measures, staff is able to conclude that the project, as mitigated, will not cause or substantially contribute to an existing or projected violation of State PM-lO standards. IV. BIOLOGICAL RESOURCES - PLANT AND ANIMAL LIFE A. Settin,q: The subject properties are located in an older, urbanized area of the city and have been developed with a variety of different land uses. Due to these use patterns, the only substantial natural resources consist of one older mature tree located on the eastern boundary of the Rocha properly and several Pine and Fir trees planted on the Menton property during the development of the existing contractor's office/shop complex. Mitigated Negative Declaration for ~.~,/! GPA/ZC No, 04-32; SDP 04-30; & SDP 04-33 B. Si.qniflcance Criteria: Project impacts upon biological resources would be significant if any of the following resulted: Substantial direct or indirect effect on any species identified as a candidate, sensitive, or special status species in local/regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service or any species protected under provisions of the Migratory Bird treaty Act (e.g.burrowing owls); · Substantial effect upon sensitive natural communities identified in local/regional plans, policies, or regulations or by the agencies listed above; · Substantial effect (e.g., fill, removal, hydrologic interruption) upon Federally protected wetlands under Section 404 of the Clean Water Act; Substantially interfere with movement of native resident or migratory wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites; or · Conflict with any local policies/ordinances that protect biological resources (e.g., tree preservation policy or ordinance); C. Impacts: 1. Plant Life: Several existing trees will be removed to accommodate the development proposed in these projects, but none of these trees are included on any listing for endangered, threatened or sensitive plant species and there is no local ordinance designed to require their protection or preservation. Additionally, the landscape plan for the apartment complexes shows that the large, mature tree located on the eastern portion of the Rocha property and the 8 Redwood trees on the western boundary of the Menton property will be retained and incorporated into the landscape plan for the site. Therefore, no mitigation measures for tree preservation or protection are proposed, although staff will recommend that a final landscaping plan is required as a condition of approval for the project and that it includes the retention of the trees as shown on the conceptual landscape plan. 2. Mammals: The construction of the proposed apartment complex in this urbanized area will not hinder the movement of animals, nor significantly intrude on their habitat since little habitat exists. Therefore, it is staff's conclusion that the proposed project would not have a significant impact on the local deer population or other mammals utilizing the subject property. 3. Birds: The removal of trees for the development of new apartment buildings will cause minor impacts to bird habitat in the area. However, these trees support no known populations of any rare or threatened bird species and no substantial impacts to bird life are expected. D. Miti.qation Measure: None required. E. Impact SiRnificance After Mitiqation: N/A. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 B. SiRnificance Criteria: Significant land use impacts would occur if the projects substantially conflict with established uses, disrupt or divide an established community, or result in a substantial alteration to present or planned land uses. Proposed project consistency with the Ukiah General Plan and zoning and any other applicable environmental plans and policies is also evaluated in making a determination about potential land use impacts. C. Impacts: Should the subject properties eventually be developed as shown, there will be 32 apartment units on the 1.44-acre site. The resulting densities will be 21 units per acre for the Menton development and 23 units per acre for the Rocha property, or approximately 22 units per acre. Specific potential impacts are discussed below. General Plan Compatibility: The Ukiah General Plan designates the subject area for a mix of commercial and medium density land uses, and multiple-family residential complexes and mixed uses are included as acceptable uses for both these designations. In this case, the proposed residential density of 22 units per acre is too large to meet the medium density standards, but is substantially less than the 28 units per acre permitted for the existing commercial land use designation on portions of the Menton properties and with the proposed high density land use designation. Therefore, it is the opinion of staff that the proposed apartment developments will be highly consistent with applicable General Plan requirements should the Ukiah City Council approve the proposed land use amendments. Zoning District Compatibility: The proposed apartment developments will also be consistent with the development standards for the R-3 Zoning District should the proposed rezone be approved by the Ukiah City Council. These standards include requirements for lot size, building height, yard areas and setbacks, landscaping, and access and parking. Compatibility with Airport Plans: As noted earlier in this study, the subject properties are located approximately 0.6 mile noah of the runway for the Ukiah Municipal Airport and are subject to the compatibility criteria for both the B1 and B2 Compatibility Zones (Extended Approach-Departure Zone), as outlined in the Current Compatibility Criteria (Table 7A) of the Mendocino County ALUC and Ukiah MunicipalAirport Master Plan). Multiple-family residential projects are"not normallyacceptable" in these compatibility zones, but in this case, the site area is less than two acres and the less intense B2 compatibility zoning is applied. This application, in turn, makes developments on the properties subject to the Infill policy (Policy 2.1.6) of the County and City airport plans. In this case, the proposed apartment complexes will be consistent with this policy since the densities proposed do not exceed 28 dwelling units or 60 persons per acre, the development maintains 30 percent open space, and routinely occupied potions of structures will not exceed two stories in height. Neighborhood Compatibility: As noted earlier in this analysis, the existing development on the subject properties is a mix of commercial and Iow-density land uses. The proposed apartment complexes will alter the existing land uses substantially, but it will also provide a more compatible land use pattern over the entire site. It will also provide a more efficient transition between the higher-density and lower-density land uses found on abutting properties to the north and south, respectively. Therefore, no adverse conflicts with the established uses on the site and no disruptions or divisions to the surrounding land uses are anticipated. The proposed infill development will also cause incremental increases to existing traffic levels and the ambient noise of the neighborhood, but there is nothing in the design of the project that is expected to cause these adverse impacts to be significant. D, Miti,qation Measure: None required. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 E. Impact Si,clnificance After Miti.qation: N/A I. NATURAL/MINERAL RESOURCES: A. Settin.q: The subject properties contain soils that have been altered substantially by fills of non- native soils and inorganic materials, and are not recognized for any substantial valuable natural resources. Construction materials derived from natural resources off-site will be used to develop the proposed project. B. Significance Criteria: Impacts to natural resources would be substantial if the proposed development projects resulted in the loss of significant or locally important materials such as minerals, gravel, sand or wood. C. Impacts: The proposed development projects will use sand, gravel, rock, wood, concrete, and other naturally occurring building materials that are readily available in the Ukiah Valley, so there will be no extraction of such materials from the project site. Furthermore, it is not anticipated the proposed apartment complex developments would demand excessive amounts of these materials or cause a direct increase in mining activities, nor would it disrupt any substantial natural habitat or migration corridors. Accordingly, it is concluded that the proposed project would not have a significant adverse impact on natural resources. D. Miti.qation Measures: None required. E. Impact SiRnificance After Mitiqation: N/A, Xl. NOISE: A. Settin.q: The subject properties are located in a densely developed area of the urban landscape that has the typical background noise sources expected in an urban environment, including automobile and truck traffic, collections of human voices, street working crews and heavy equipment, etc. The site is also subject to aircraft noise from aircraft flying over the site, as discussed in Section VII (Hazards and Hazardous Materials) and Section IX (Land Use) of this study. B. Si,qnificance Criteria: A project will typically have a significant noise impact if it exposes people to or generates noise levels in excess of standards established in the local General Plan or Noise Ordinance; causes a substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project; or causes a substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels without the project. C. Impacts: The Ukiah General Plan identifies the significant noise sources in the City as transportation noise coming from major roadways, railroad operations, industrial plants, and airports. The focus of the Noise Element in the General Plan is to protect the noise-sensitive land uses from transportation, industrial, railroad, and airport noise through the establishment of noise contours around these noise sources in the community, where typical noise can exceed the defined threshold of 60 dB (decibels). Mitigated Negative Declaration for 2~. ][~ GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 The location of the proposed apartment complexes in the northern approach/departure area for the Ukiah Municipal Airport will expose persons to noise from aircraft flying over the site. The maximum noise levels projected for this area in the Airport Master Plan would be 55-60 CNEL on an average day and 60-65 CNEL on a busy day, but this noise level is not considered to be hazardous to humans and is too short-lived to violate the equivalent decibel standards listed in the City's Noise Ordinance. Furthermore, the typical aircraft-related noise impac'~s in this area are expected to decline to less than 55 CNEL by the year 2015 as the result of improvements to airport facilities and the aircraft using them. Therefore, while the aircraft noise will be a nuisance for future occupants, it will not cause any significant adverse effects or hazards and will require no mitigation. The subject properties are also located within 300 feet of the railroad tracks for the Northwest Pacific Railroad (NCRA), but no immediate noise impacts from trains are expected since no trains currently use the these tracks due to funding and maintenance constraints. Nuisance-level noise impacts from rail traffic could be caused if NCRA secures sufficient funding to start trains running again, but no substantial noise effects from train operations are anticipated since such noise occurrences are typically infrequent, short-lived, and too Iow in volume to cause noise-induced hazards to humans. In addition, only one of the proposed structures would be directly affected by rail traffic noise, while the majority of the structures will be at least par[ially buffered by existing structures located on the parcel between the site and the tracks. The City Noise Ordinance limits the maximum level of noise that can emanate from residential units to 40 decibels during the hours of 10:00 p.m. to 7:00 a.m.; 50 decibels from 7:00 a.m. to 7:00 p.m.; and 45 decibels from 7:00 p.m. to 10:00 p.m. There is no evidence that the construction of the proposed apartments will cause these noise levels to be exceeded regularly or significantly, and no specific mitigation measures will be required. Short-term noise impacts from machinery and general construction activities will occur during the actual construction of the proposed apartment complexes, but these impacts are not expected to reach hazardous levels since the Noise Ordinance prohibits work before 7:00 a.m., as described above. Therefore, no mitigation measures related to such noise generators will be required. D. Miti.qation Measure: N/A E. Impact SiRnificance After MitiRation: N/A VII. POPULATION AND HOUSING: A. Setting: The 2000 census indicates that the population of Ukiah is 15,597 persons, with a slow and stable growth rate. The population has not changed much in the past several years, and it has only been very recently that it appears to be noticeably increasing. The 1995 General Plan projected a population of 17,291 for the year 2000, which is 1694 more than the current population. B. Si.qnificance Criteria: Population and housing impacts would be significant if the project induced substantial direct or indirect (e.g., road extensions) population growth in an area and displaced substantial numbers of existing houses and/or substantial numbers of people, thus requiring replacement housing elsewhere. C. Impacts: The proposed development projects would provide substantial increases in Ukiah Valley housing, and therefore would not have an adverse impact on housing. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 D. Mitigation Measures: None required. E. Impact Significance After Miti.qation: N/A XIII. PUBLIC SERVICES: A. Setting: The City of Ukiah is a small, but urbanized, area with a full complement of public services that include police and fire services, public schools, public works and utilities, and emergency services. B. Si,qnificance Criteria: Impacts to public services would be significant if the apartment complex developments resulted in adverse physical impacts upon capacity that would require the construction of new public facilities or substantial alteration to existing governmental facilities to maintain acceptable service levels or performance levels. C. Impacts: Staff discussed the proposed project with the City Police, Parks, Utilities, and Fire Departments, as well as with the Ukiah Unified School District. City Police Department: Discussions with the City Police Department reveal that the proposed projects will not result in the need for additional police officers, and will not have a substantial affect on their ability to serve the future residents of the expanded apartment complexes. City Community Services Department: Discussions with the City Community Services Department reveal that the proposed projects will not result in the need for additional staff or park facilities, and will not have a substantial affect on their ability to maintain the current City- owned park facilities. City Utilities Department: Discussions with the City Utilities Department reveal that the proposed projects will not result in the need for new or expanded electrical generation sources, nor will it cause the need for additional staff to maintain the current City-owned electric service facilities. The amount of electricity needed by the new apartment complexes is not substantial, and is available from current generation capacity. The City's sewage treatment plant is reaching capacity, but Utilities Department staff has indicated that it anticipates hookups will be available for all of the additional apartments at the time of construction. City Fire Department: The City Fire Marshal indicated that in-house sprinklers will be required and additional hydrants will probably be required to provide optimum fire protection of the apartment complexes. However, these standard measures will be implemented at the building stage of the project and will have no adverse impacts on the Fire Department's ability to provide adequate fire protection to the buildings, and therefore, no mitigation is required. Ukiah Unified School District: Previous discussions with the Ukiah Unified School District reveal that it has the basic capacity to house and educate the minimal number of potential students generated by the proposed apartment complex developments. The applicants will be required to pay the adopted school district developer mitigation fee that is intended to offset the cumulative impact contribution to the district from all development projects. Mitigated Negative Declaration for ~,.. ~ GPA/ZC No. 04~32; SDP 04-30; & SDP 04-33 D. Mitigation Measures: None required. E. Impact Significance After MitiRation: N/A XlV. TRANSPORTATION/TRAFFIC/CIRCULATION: A. Setting: Ukiah is a rural city that is not experiencing significant population growth. However, as the government and commercial center for Mendocino County, the City has been growing in terms of commercial development. This has increased traffic and its corresponding delays at intersections, particularly during the a.m. and p.m. peak hours. While traffic impacts are somewhat subjective in nature, recent traffic studies show that the delays at some key intersections have substantially increased in the past several years. B Si,qnificance Criteria: According to the Ukiah General Plan Circulation Element, the minimum acceptable level of service (LOS) is LOS "D." Other criteria include whether the project would have substantial effects upon air traffic patterns; whether the project would increase traffic hazards due to design features; whether the project has inadequate emergency access; whether the project has inadequate parking capacity; and whether the project would create conflicts with adopted policies, programs and plans for alternative transportation. C. Impacts: City Public Works staff utilized standard traffic generation calculations for regular apartment uses and determined the 32 units proposed for the different projects would cause 140- 150 additional daily trips per day from the site. This represents nearly a 100 percent increase in the estimated daily traffic levels for Apple Avenue, but is not considered to be a significant adverse impact since this street was constructed with sufficient size to handle even larger traffic loads. In addition, the potential adverse traffic effects along Apple Avenue will be further limited by the development of a shared cul-de-sac entrance on the Menton and Rocha properties, which will be dedicated to the City as a public terminus for this City-maintained street. Traffic from the site will also cause increases in the State Street traffic, which has an average daily traffic volume (ADT) of approximately 20,000 vehicles. This increase, however, is less than a one percent (1%) percent increase, and is not considered a significant impact since staff from the City Department of Public Works reveal that in their best professional judgement, State Street is currently operating at a Level of Service C, or better, during a.m. and p.m. peak hours. Furthermore, Public Works staff indicated that the projected traffic increase of 140-150 trips per day would not erode the Level of Service to a level D or worse. Moreover, the estimated a.m. and p.m. peak hour vehicle trips would not erode the level of service for the State Street/Gobbi Street intersection or any other intersection to a level deemed unacceptable by the City General Plan. Accordingly, it is concluded the proposed project would not have significant adverse impacts on traffic and circulation patterns. D. Miti.qation Measures: None required. E. Impact SiRnificance After Mitigation: N/A Mitigated Negative Declaration for GPNZC No. 04-32; SDP 04-30; & SDP 04-33 XV. UTILITIES AND SERVICE SYSTEMS A. Settin,q: Energy resources are readily available to the citizens of Ukiah. These include electricity, natural gas, propane, and alternative sources such as solar, wind, and hydroelectric. B. Si,qnificance Cr ter a A project will typically have a significant impact if it causes the use of fuel or energy in a wasteful manner, or encourages activities that use of large amounts of fuel or energy. C. Impacts: Fuels and energy will be consumed during the construction of the proposed apartment buildings1 but the precise amounts cannot be determined because the length of time certain heavy equipment is used is unknown. However, based on the sizes of the proposed apartment complexes, there is no evidence that the fuels and energy consumed during construction activities or the future use of the newly constructed apartments will be significant. Moreover, it would be unreasonable to speculate that the construction crews and future residents will waste energy or fuels, and accordingly, staff is able to conclude that the proposed projects will not have significant adverse impacts on energy resources. D. Miti.qation Measures: None required. E. Impact Si.qnificance After Miti.qation: N/A XVl. MITIGATION MONITORING AND REPORTING: AB 3180 requires all public agencies to adopt a monitoring and reporting program whenever they adopt an EIR or "Mitigated Negative Declaration." The Mitigation Monitoring and Reporting Program for this Mitigated Negative Declaration require the applicants to incorporate or comply with the important Mitigation Measures listed in Table 1, below. Table 1: MITIGATION MEASURE MONITORING PROGRAM MITIGATION MONITORING FUNDING MEASURES RESPONSIBILITY HOW AND WHEN VERIFICATION RESPONSIBILITY Aesthetics Applicants Air Quality Historical and Cultural Resources Applicants with Staff oversight and Approval Applicants and Grading/site preparation contractors Inclusion of a lighting plan prior to the submittal of a Building Permit During all phases of construction Applicants with Staff oversight During all site preparation and construction phases Planning Dept. staff Planning and Public Works departments staff Planning Department staff Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 Applicants Applicants in the event of a discovery MITIGATION MEASURES Hydrology and Water Quality MONITORING RESPONSIBILITY Applicants and Grading/site preparation contractors HOW AND WHEN Prior to the approval of permits for site preparation and construction phases of project VERIFICATION Public Works Department staff FUNDING RESPONSIBILITY Applicants XVII. MANDATORY FINDINGS OF SIGNIFICANCE: A. Potential to Degrade: Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self sustaining levels, threaten to eliminate a plant or animal community, reduce the number or restrict the range of a rare or endangered plant or animal species, or eliminate important examples of the major periods of California history or prehistory? YES NO X B. Short Term: Does the project have the potential to achieve short-term, to the disadvantage of long-term, environmental goals? (A short-term impact on the environment is one that occurs in a relatively brief, definitive period. Long-term impacts will endure well into the future). YES NO X C. Cumulative: Does the project have impacts that are individually limited, but cumulatively considerable? (A project may impact on two or more separate resources where the impact on each resource is relatively small, but where the effect on the total of those impacts on the environment is significant). YES NO X D. Substantially Adverse: Does the project have environmental effects that will cause substantial adverse eff(~cts on human beings, either directly or indirectly? YES NO X Mitigated Negative Declaration for GPA/ZC No, 04-32; SDP 04-30; & SDP 04-33 XVIII. DETERMINATION: On the basis of this Initial Study: I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. X I find that although the proposed project could have a significant adverse impact on the environment, there will not be a significant effect in this case because the mitigation measures described within the Initial Study will be incorporated into the design of the project or required by the City of Ukiah. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant adverse impact on the environment, and an ENVIRONMENTAL IMPACT REPORT shall be required. Charles Stump Signature Print Name Plannin.q Director/Environmental Coordinator January 31,2005 Title Date Mitigated Negative Declaration for GPNZC No. 04-32; SOP 04-30; & SDP 04-33 RESOURCES USED TO PREPARE THIS INITIAL STUDY 8. 9. 10. City of Ukiah General Plan, 1995 The Linkaqe Between Land Use, Transportation and Air Quality, State Air Resources Board, 1993. The Land Use - Air Quality Linkaqe: How Land Use and Transportation Affect Air Quality, State Air Resources Board, 1997. Transportation-Related Land Use Strateqies to Minimize Mobile Source Emissions: An Indirect Source Research Proiect, State Air Resources Board, 1995. A Source of Air Quality Conditions Includinq Emissions inventory, Ozone Formation, PM10 Generation, and Mitiqation Measures for Mendocino County, CA. Sonoma Technologies, Inc., November, 1998. Soil Survey of Mendocino County, Eastern Part, and Trinity County, Southwestern Part, California U.S. Department of Agriculture - Soil Conservation Service, January, 1991. U.S.G.S. Topographical Map, Ukiah Quadrangle, 1958 (photo inspected 1975). Hydroloqy Study - Apple Avenue Projects, Water Resources Consulting Services, August, 2004 Ukiah Municipal Airport Master Plan Report, Shutt Moen Associates, July, 1996. Correspondence received from the City Fire Department regarding fire protection service Correspondence/discussions with the following City staff and Agency representatives: a. Chuck Yates, Fire Marshal b. Thomas McArthur, Sewer/Water Eng. Tech. c. Cindy Sauers, Electrical Distribution Engineer d. Diana Steele, Public Works Director/City Engineer e. Tim Eriksen, Civil Engineer f. Rick Sands, Engineering Associate g. John Williams, Police Chief h. Paul Richey, Airport Manager Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 Attachment City of Ukiah STAFF REPORT TO THE PLANNING COMMISSION RUFF / MENTON Major Site Development Permit No. 04-30 ITEM NO. 9-C Meeting Date: February 2005 PROJECT SUMMARY: The approval of Major Site Development Permit No. 04-30 will allow the development of 16 apartment units in throe two-story buildings located on the lands comprising the Menton property. This project will entail the conversion of the existing contractor's office/shop building on the southern half of the site and the construction of new apartment buildings. The actual development of the proposed complex will requiro the recordation of Boundary Line Adjustment No. 04-31, which was approved by the Ukiah City Engineer in 2004. This BLA shifted the existing boundary lines on the project site, which aro shown on Attachment 3. The approved boundary lines are denoted on most of the site plan exhibits submitted for Site Development Permit No. 04-30. The approval of the project is also ultimately dependent on the approval of General Plan Amendment/Zone Change No. 04-32, which must be approved by the Ukiah City Council with a recommendation by the Ukiah Planning Commission. This project is scheduled as Item 9-B on the Commission's March 9, 2005 hearing date. The discretionary actions associated with this project are quasi-judicial in nature; therefore each decision-maker must physically and personally visit the site prior to participating in the vote to approve, disapprove, or modify the project. PROJECT LOCATION: The project site consists of two contiguous lots located at 760 Apple Avenue (Assessor Parcel Numbers 003-050-29 and 66), at the northern terminus of Apple Avenue. These lots aro accessed via a private driveway located at the existing dead-end terminus for Apple Avenue. ENVIRONMENTAL DETERMINATION: The Environmental Coordinator determined that the proposed project is not exempt from the provisions of the California Environmental Quality Act (CEQA) and an Initial Study was prepared for this project, the site development project (SDP #04-33: Rocha) on the contiguous parcel to the east, and the General Plan Amendment/Zone Change project referonced in the project summary. This study concludes that the projects, in total, will create potentially significant adverse environmental impacts related to biological resources, geology and soils, and hydrology and water quality. However, measures that will mitigate these impacts to levels that are not significant and a mitigation monitoring program are also included in this study, and staff was able to conclude that a Mitigated Negative Declaration is appropriate. A copy of this study is included as Attachment 4. GENERAL PLAN DESIGNATION: MDR (Medium Density Residential) for APN 003-050-29; C (Commercial) for APN 003-050-66 ZONING DISTRICT: R-2 for APN 003-050-29; C (Commercial) for APN 003-050-66) Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton PROJECT DESCRIPTION Existinq Conditions The Menton property is composed of two contiguous lots. The smaller lot is a 2,575 square foot parcel on the eastern side contains open space, a small storage shed and a 300 square foot residential cottage that would be removed to accommodate the proposed apartment complex development. The 0.7-acre lot on the western side of the project site is developed with a 4,000 square foot building that houses the offices and contractor's shop and storage area for Menton Construction, which is owned and operated by the applicants for this project. This multi-level structure is located on the southern portion of the lot, with a paved driveway to the north. The remaining areas of the lot are heavily landscaped, with planters on the north, west, and east sides of the building, and a large garden located along the northern property line. There are also approximately 20 Redwood trees of various ages located in the planter areas along the site's western and northern perimeters, and five Eucalyptus trees along the southern perimeter. Proposed Development The proposed apartment complex development will entail the conversion and expansion of the existing contractor's office/shop building on the south side of the site into a two-stow apartment building. This building will contain a total of seven apartments, including three two-stow units with a loft on the top floor. The other four apartment units would be on the east side of the structure, with two on the ground floor and two on the top floor. It will also include the construction of two new two-stoW apartment buildings on the northern portion of the site, with four apartments in one building and five apartments in the other. The areas between the buildings will be paved for the western portion of the public cul-de-sac terminus for Apple Avenue, site access driveways, parking stalls, and a screened trash/recycling receptacle area. There will also be covered parking stalls on the east side of the building in the northwest corner of the site and in front of the building in the northeast corner. One of the primary aspects of the Menton project includes the expansion of the existing contractor's office and shop building, a Iow intensity commercial structure. Fortunately, this structure was initially designed and constructed with a residentially oriented design, including the batt and board siding, sloped composition roof, and a second-stow balcony. The proposed expansion of this structure will continue the use of these features, with insets and punch-outs in the building face to break up the exterior mass. These same design features will be utilized on the two other apartment buildings, with even more pronounced use of wall insets to break up wall mass. The areas along the project perimeters will contain small individual yard areas, large landscape planters and an extensive garden area. The landscaping will include a mix of existing Redwood and eucalyptus trees and new tree plantings, including Dwarf Magnolia, Red Maple, and Crape Myrtle trees. A wide variety of shrubs and greundcovers will also be used in the perimeter areas and in smaller planters in the center areas of the site. STAFF ANALYSIS General Plan Consistency: The proposed development project is consistent with the goals and policies for the proposed HDR (High Density Residential) land use designation since it meets or exceeds the siting criteria prescribed in the General Plan Land Use Element. Staff notes that the project also complies with Housing Element goals and policies for maximizing housing opportunities on available properties. Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton Zoning Consistency: The proposed development project is consistent with the use and development standards of the proposed R-3 Zoning District since it complies with requirements for permitted uses, building height limits, yard area and setback requirements, and on-site parking. The proposed site layout also provides more than adequate area for landscaping and the conceptual landscape plan provides an effective mix of retaining existing trees, new plantings, and open spaces for personal recreation. In fact, the large garden area proposed on this project will be a particularly unique feature for an apartment complex of this size. It is also staff's opinion that the site layout and building designs are highly compatible with the surrounding land uses. The Menton property is bounded by the Summercreek Village apartment complex to the north, with a Iow-density residential neighborhood to the south, and the proposed development projects on the Menton and Rocha properties are expected to provide an efficient transition between these land uses. Furthermore, the bulk of activity for both of the proposed development sites will be relatively self-contained in the center of the complexes, where the parking and access roadways will be. The perimeter areas of the lots will be used primarily for larger landscaping and small individual yards that are compatible with the abutting land uses. Consistency with Ukiah Municipal Airport Master Plan: The project site is located approximately 0.6 mile north of the Ukiah Municipal Airport's runway, which places it in Airport Compatibility Zones B1 and B2 (Extended Approach-Departure Zone), as defined in the Compatibility Criteria tables for both the Ukiah Municipal Airport Master Plan and the Mendocino County Comprehensive Land Use Plan. According to these criteria, multiple-family residential projects are "not normally acceptable" in either of these compatibility zones. However, the project site area is less than two acres and the less intense B2 compatibility zoning is therefore applied, which, in turn, makes the proposed apartment complex subject to the Infill policy (Policy 2.1.6) listed in both airport plans. In this case, the proposed development is considered to be consistent with the B2 infill criteria since the residential densities will not exceed 28 dwelling units or 60 persons per acre, the development maintains 30 percent of its lands in open space, and routinely occupied potions of structures will not exceed two stories in height. In fact, the Infill policy encourages higher density uses like this project since Iow density development projects typically show a lower tolerance for aircraft-generated noise. While noise from aircraff is not considered a significant adverse environmental impact or a hazard to persons that will be using the site, Planning staff is concerned with the nuisance effects it will cause. Therefore, staff recommends that future residents are notified of the noise factor prior to the signing of any leases or rental agreements by the provision of explanatory text in all such agreements. Specifically, staff recommends that any approval of the project include Condition No. 21, which would require that rental agreements include an advisement to potential renters that a) the apartment complex is located in close proximity to the Ukiah Municipal Airport and is subject to occasional ovedlights of aircraff taking off or landing at the airport, and b) the number of noise-producing flights may increase in future years. The language in this advisement shall be approved by the Director of Planning prior to the issuance of a Permit of Occupancy for any of the proposed apartment buildings. Neighborhood Compatibility: The existing development on the subject properties is a mix of Iow- density and commercial land uses, including a contractor's office and shop building. Therefore, the approval of this development project will cause a net increase in proposed apartment complexes. This development will alter the existing land uses substantially, but it is not a substantial alteration in the land uses already allowed on the site since both lots are currently underdeveloped. Staff further notes the proposed apartment complex will also provide a more balanced land use pattern over the entire site, with more even distribution of buildings and common-use areas such as the parking, access driveways, and landscaping. The proposed development will also provide a more efficient transition between the medium to high residential on the lands to the north and the medium- density land uses to the south. Therefore, no substantial adverse conflicts with the established uses on the site and no substantial disruptions or divisions to the surrounding land uses are anticipated. Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton Public Works Department staff identified incremental increases to existing traffic levels on Apple Avenue as a result of this infill development, but they do not anticipate that the projected increases will be substantial in volume and cause direct or significant impacts to local traffic circulation. Staff also confirmed that Apple Avenue is approximately 30 feet wide from curb to curb, which is considered to be an adequate width for a two-lane road where vehicle parking is allowed on both sides of the street. Ambient noise from the proposed development will add to localized noise levels in the neighborhood, but there is nothing in the design of the project that will cause regular or hazardous noise impacts. In fact, it is expected that most of the noise from the proposed apartment complexes will be absorbed into the ambient noise that already exists in this neighborhood. Planning Department staff note that the proposed buildings and grounds for the apartment complex have been designed with a high degree of compatibility with the surrounding properties. This compatibility is based on the use of similar roof peaks, gables, and other residential-style design features and the use of buildings that are not out of scale with surrounding structures. In addition, the building will be constructed with wooden siding, composition roofing, and other materials that are commonly used on the medium to high density developments north of the site and on the single family residences south of the site. In fact, it is staff's opinion that the Menton and Rocha site development projects would provide an efficient and attractive transition between these different styles of residential development. Environmental Analysis: The proposed project is not exempt from the provisions of the California Environmental Quality Act, and an Initial Study was prepared to analyze potential adverse environmental impacts caused by this project and the General Plan Amendment/Zone Change and the Rocha site development permit that were submitted with it. In this study, staff reviewed potential environmental effects caused by the proposed land use changes, such as growth inducement and impacts to housing, and determined that the General Plan Amendment and Zone Change portion of the project is not expected to cause any direct significant adverse effects. However, the study identified that the development portion of the projects could create potentially significant adverse impacts to biological resources, geology and soils, and hydrology and water resources. Therefore, mitigation measures and a mitigation monitoring report were prepared to reduce these impacts to levels that are not considered significant and a Mitigated Negative Declaration was prepared for all of the projects. These measures are included as recommended Conditions 22-29. The most substantial environmental issue related to the development projects is the potential for excessive storm drainage during 10-year events, which was reviewed through a hydrology report prepared for the Menton and Rocha projects and the O'Bergin development project to the west. This report noted that storm drainage could increase by 20 percent during such events, and recommends the development of an on-site drainage detention system to ensure that drainage volumes match pre- development levels. This issue is discussed more thoroughly in the Initial Study and the mitigation measures addressing drainage issues are included as recommended Condition Nos. 28-29. CONCLUSIONS: When Planning Department staff first reviewed the application for the general plan amendment/zone change and site development permits that make up the overall proposal to develop the lands at the end of Apple Street, it appeared their approval would allow the overall density for the 1.46-acre site to double. However, careful analysis of the site's actual development potential revealed that potential increase could not exceed 25 percent, and that the proposed increase in the number of units would exceed its allowed density by only one unit. Staff further concluded that both the Menton and Rocha residential development projects will be highly consistent with General Plan guidelines and zoning standards for the medium to high density proposed. In addition, the proposed site layouts and building designs used in these projects will provide a more Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton 3-' 4 compatible project that provides an attractive and effective transition between the Summercreek Village apartment complex on its north side and the lower intensity residential neighborhood to the south. These projects will also provide the area and infrastructure for a much-needed cul-de-sac terminus for the Apple Avenue right-of-way that serves this residential neighborhood. Finally, staff concludes that the proposed development projects are consistent with the intent and the specific compatibility criteria for the B2 Infill zoning that applies to this 1.46-acre site. This conclusion is based on the fact that neither of the proposed apartment complexes will cause the area's population to exceed 60 persons per acre, both projects will retain more than 30 percent of its lands as open space, and neither will not use structures that exceed two stories in height. FINDINGS: The Planning Department's recommendation for approval of Major Site Development Permit No. 04-30 is based, in part, on the following findings: The proposed residential buildings and surrounding grounds are consistent with the Ukiah General Plan since they comply with the goals and policies for the siting of new development in the Land Use Element's HDR (High Density Residential) land use classification and with Housing Element goals for the maximum use of higher density residential lots; The proposed multiple-family residential use is a permitted land use in the proposed R-3 (High Density Residential) Zoning District and the proposed building and grounds would be developed in a manner that is consistent with the development standards for this district; There is sufficient variety, creativity, and articulation in the architecture of the proposed multiple- family residential structures and the design of the surrounding grounds to avoid monotony or a box-like external appearance; 4 The proposed multiple-family residential development is consistent with the criteria for the B1 and B-2 Compatibility Zones of the Ukiah Municipal Airport Master Plan/Mendocino County Airport Land Use Plan since it is located within an infill zone that allows and encourages two-story multiple-family residential development and complies with open space and density requirements for this zone, and will not expose persons to substantial hazards or nuisances caused by aircraft flying over the subject property; The location, size, and intensity of the apartment complex project would not create hazardous or inconvenient impacts to existing vehicular traffic patterns since the development of the site with the multiple-family residential complex will not cause a substantial increase in traffic volumes or patterns and will provide a publicly maintained cul-de-sac terminus for Apple Avenue, which provides the only ingress and egress to the subject properties and the abutting residential neighborhood; The accessibility of off-street parking areas and the relation of parking areas with respect to traffic on adjacent streets will not create a hazardous or inconvenient condition to adjacent surrounding uses since the proposed residential complex will have improved ingress and egress and adequate on-site parking, and will not cause substantial increases in traffic volumes or require substantial modifications to traffic patterns or the existing street system; The location, size, and intensity of the project will not create hazardous or inconvenient impacts to pedestrian traffic since the development of the site with the multiple-family residential building and surrounding grounds will not adversely affect adjacent sidewalks and the required cul-de-sac will be bounded by similarly-sized sidewalks; Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton Sufficient landscaped areas and open spaces have been reserved for purposes of separating or screening the proposed structures from each other and from adjoining residential properties since the landscape plan for the site will utilize extensive perimeter plantings that will retain existing vegetation and add new vegetation on the site; The proposed multiple-family residential buildings will not cut out light or air on the property since the proposed building would be constructed along the perimeter areas of the property and would be set back at least 20 feet from the nearest properties to the north; 10. The improvement of this property with the multiple-family apartment complex will not have a substantial detrimental impact on the character or value of an adjacent residential zoning district since the proposed development represents a substantial improvement to existing conditions on the property and will provide a more efficient and transitional buffer between the higher density developments to the north and the lower density residential neighborhood to the south; and 11. The proposed multiple-family residential development will not cause excessive damage to or destruction of natural features on the site since none are present on the site. CONDITIONS OF APPROVAL: The following Conditions of Approval shall be made a permanent part of Major Site Development Permit No. 04-30, shall remain in force regardless of property ownership, and shall be implemented in order for this entitlement to remain valid: All use, construction, or occupancy shall conform to the application approved by the Planning Commission, and to any supporting documents submitted therewith, including maps, sketches, renderings, building elevations, landscape plans, and alike. Any construction shall comply with the "Standard Specifications" for such type of construction now existing or which may hereafter be promulgated by the Engineering Department of the City of Ukiah; except where higher standards are imposed by law, rule, or regulation or by action of the Planning Commission. In addition to any particular condition, which might be imposed, any construction shall comply with all building, fire, electric, plumbing, occupancy, and structural laws, regulations and ordinances in effect at the time the Building Permit is approved and issued. 4. Applicant shall be required to obtain any permit or approval, which is required by law, regulation, or ordinance, be it required by Local, State, or Federal agency. Building Permits shall be issued within two years after the effective date of the Site Development Permit, or it shall be subject to the City's permit revocation process and procedures. In the event the Building Permit cannot be issued within the stipulated period from the project approval date, a one year extension may be granted by the Director of Planning if no new circumstances affect the project which otherwise would render the original approval inappropriate or illegal. It is the applicant's responsibility in such cases to propose the one-year extension to the Planning Department prior to the two-year expiration date. The approved Site Development Permit may be revoked through the City's revocation process if the approved project related to the Site Development Permit is not being conducted in compliance with the stipulations and conditions of approval; or if the project is not established within two years of the effective date of approval; or if the established land use for which the permit was granted has ceased or has been suspended for twenty four (24) consecutive months. Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton Except as otherwise specifically noted, the Site Development Permit shall be granted only for the specific purposes stated in the action approving the Site Development Permit and shall not be construed as eliminating or modifying any building, use, or zone requirements except as to such specific purposes. Improvement Plans for curb, gutters, sidewalks, driveways and street paving along the proposed Apple Avenue terminus shall be prepared by a licensed civil engineer in accordance with City Standard Drawings and submitted for review to the Ukiah City Engineer prior to the issuance of any ministerial permits for site preparation activities required for its construction. All improvements shall be constructed in conformance with the approved improvement plans under an Encroachment Permit issued by the Public Works Department. The Encroachment Permit shall be submitted to the City Engineer for review and approval prior to the City Engineer prior to the issuance of a Building Permit for the project with a fee equal to three percent (3%) of the cost of the improvements. 10. All improvements shall be done by a properly licensed Contractor with a current City of Ukiah Business License who shall submit copies of proper insurance coverage (Public Liability: $1,000,000; Property Damage: $1,000,000) and current Workman's Compensation Certificate. 11. The City Engineer shall permit no site preparation or grading activities on the project site without the review and approval of a Grading and Drainage Plan. This Plan shall include the following: a) The extent of modifications to existing drainage patterns; b) The extent of storm drainage improvements and erosion control measures for building pads, driveways, parking lot areas, and other movements of soil; c) The extent of other development the City Engineer determines could adversely affect existing drainage patterns on the site or on abutting properties or could cause wind or water erosion. 12. Stockpiled soil shall be protected from erosion; drainage from all disturbed and stockpiled soils shall be directed on-site to a disposal location approved by the City Engineer. 13. All on-site paving shall be a minimum of 2" (inches) of asphalt concrete with a 6" (inch) aggregate base, or, alternatively, any option approved by the City Engineer 14. Sewer, water, and electric service shall conform to the specifications of the City Public Utilities and Public Works Departments. 15. A Landscaping and Lighting Plan shall be submitted by the project applicant and approved by the Director of Planning prior to the issuance of a Certificate of Occupancy for the building. This plan shall include, but not be limited to the following: a) A planting legend that includes the names, location, coverage area, and canopy cover of proposed vegetation; b) A planting schedule for all vegetation installed on the site; c) A maintenance schedule for existing or proposed vegetation, including a watering schedule and irrigation system design; and d) A lighting plan for any proposed exterior lighting installed or otherwise used on the site, including the design of the light standards used. Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton 16. All landscaping shall be maintained in a neat, weed-free manner, and may not be removed or substantially altered unless the Director of Planning reviews and approves the removal or replacement of vegetation determined to be diseased, unstable, hazardous, or poorly located on the site. Any vegetation removed from the site shall be replaced with similar vegetation approved by the Planning Director. 17. Any roof-mounted air conditioning, heating, and/or ventilation equipment shall be aesthetically screened from view consistent with the architecture of the building upon which it is located. 18. Outdoor refuse/recycle containers shall be aesthetically screened from view; garbage shall not be visible outside the enclosures. 19. A recycling program that provides the opportunity for all residents of the apartment complex to recycle shall be implemented by the apartment managers prior to the occupancy of any of the apartments and shall remain in effect so long as the apartments are occupied. This program shall be reviewed and approved by the Planning Director prior to its implementation to ensure it provides an efficient method for recycling and is consistent with the requirements of the Municipal Code. 20. Hours of construction shall be limited to the hours between 7:00 a.m. to 7:00 p.m., Monday through Saturday unless additional hours of construction for special construction activities or projects are reviewed and approved by the Planning Director. 21. Rental and lease agreements for all of the apar[ments on the subject properties shall include an advisement to potential renters that a) the apartment complex is located in close proximity to the Ukiah Municipal Airport and is subject to occasional overflights of aircraft taking off or landing at the airport, and b) the number of noise-producing flights may increase in future years. The language in this advisement shall be approved by the Director of Planning prior to the issuance of a Permit of Occupancy for any of the proposed apartment buildings. 22. Prior to the issuance of a Building Permit, a Final Landscaping/Lighting Plan shall be submitted for review and approval by the Director of Planning and Community Development or his/her designee. The Final Landscaping Plan shall also include details regarding exterior lighting for structures, garden areas, and walkways, which shall be hooded and down-cast, and shall not shine towards neighboring properties or skyward. 23. All activities involving site preparation, excavation, filling, grading, road construction, and building construction shall institute a practice of routinely watering exposed soil to control dust, particularly during windy days. 24. All inactive soil piles on the project site shall be completely covered at all times to control fugitive dust. 25. All activities involving site preparation, excavation, filling, grading, and actual construction shall include a program of washing off trucks leaving the construction site to control the transport of mud and dust onto public streets. 26. Low emission mobile construction equipment, such as tractors, scrapers, and bulldozers shall be used for earth moving operations. 27. All earth moving and grading activities shall be suspended if wind speeds (as instantaneous gusts) exceed 25 miles per hour. Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton 28. Plans and designs for a storm drainage detention system capable of handling the increased runoff volumes described in the hydrology study prepared for this project shall be submitted to the City Engineer and shall be approved by the City Engineer prior to the approval of ministerial permits for grading or other site preparation activities in the undeveloped portions of the subject property or for the construction of any new apartment units on the site. No such system will be required for repaving in developed portions of the site or the remodeling of existing apartment units. 29. A Grading and Drainage Plan that includes an Erosion and Sediment Transport Control Plan shall be submitted to the City Engineer/Public Works Director for review and shall be approved prior to the commencement of any grading, site preparation activities, or construction of buildings and paving. A licensed civil engineer shall prepare all drainage calculations and other work done on this Plan. 30. All conditions that do not contain a specific date or time period for completion shall be completed prior to the issuance of a Certificate of Occupancy. PLANNING DEPARTMENT RECOMMENDATION: Based on the Findings above, the Planning Department recommends that the Planning Commission recommend to the City Council that it: 1. Adopt the Negative Declaration prepared for Major Site Development Permit 04-32; and 2. Approve the Major Site Development. ATTACHMENTS: 1. Location Map 2. Site Exhibit Packet (w/Title Sheet; Architectural Site Plans; Elevations; & Landscape Plan) 3. Assessor's Pamel Page for Site Area (showing existing lot sizes and boundary lines) 4. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 Planning Commission Staff Report for Major Site Development Permit No. 04-30: Menton Attachment ~ ~'- City of Ukiah STAFF REPORT TO THE PLANNING COMMISSION RUFF / ROCHA Major Site Development Permit No. 04-33 ITEM NO. 9-D Meetin~ Date: February 23~ 2005 PROJECT SUMMARY: The approval of Major Site Development Permit No. 04-33 will allow the development of 16 apartment units in three two-story buildings located on the lands comprising the Rocha property. The actual development of the proposed complex will require the recordation of Boundary Line Adjustment No. 04-31, which was approved by the Ukiah City Engineer in 2004. This BLA shifted the existing boundary lines on the project site, which are shown on Attachment 3. The approved boundary lines are denoted on most of the site plan exhibits submitted for this Site Development Permit. The approval of the project is also ultimately dependent on the approval of General Plan Amendment/Zone Change No. 04-32, which must be approved by the Ukiah City Council with a recommendation by the Ukiah Planning Commission. This project is scheduled as Item 9-B on the Commission's March 9, 2005 hearing date. The discretionary actions associated with this project are quasi-judicial in nature; therefore each decision-maker must physically and personally visit the site prior to participating in the vote to approve, disapprove, or modify the project. PROJECT LOCATION: The project site consists of two contiguous lots located at 767 Apple Avenue (Assessor Parcel Numbers 003-050-85 and 86), at the northern terminus of Apple Avenue. These lots are accessed via a private driveway located at the existing dead-end terminus for Apple Avenue. ENVIRONMENTAL DETERMINATION: The Environmental Coordinator determined that the proposed project is not exempt from the provisions of the California Environmental Quality Act (CEQA) and an Initial Study was prepared for this project, the site development project (SDP #04-30: Menton) on the contiguous parcel to the east, and the General Plan Amendment/Zone Change project referenced in the project summary. This study concludes that the projects, in total, will create potentially significant adverse environmental impacts related to biological resources, geology and soils, and hydrology and water quality. However, measures that will mitigate these impacts to levels that are not significant and a mitigation monitoring program are also included in this study, and staff was able to conclude that a Mitigated Negative Declaration is appropriate. A copy of this study is included as Attachment 4. GENERAL PLAN DESIGNATION: MDR (Medium Density Residential) ZONING DISTRICT: R-2 (Medium Density Residential) Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha PROJECT DESCRIPTION Existin.q Conditions The Rocha property is composed of two contiguous lots. Both lots are developed with a single family residence and abutting yard areas, including an extensive yard on the northern perimeter of the site. These yard areas contain existing trees that will be removed to accommodate the proposed development. Proposed Development The proposed apartment complex development will entail the construction of three new two-story apadment buildings containing a total of eight apartments on the proposed lot lying on the northern portion of the site. This development will include two containing two multi-stow apadment units and a third building containing four utility apartments and the manager's office and laundry. The proposed lot comprising the southern portion of the site will contain buildings that essentially mirror the buildings on the northern portion of the site, with eight apartments but no manager's office or laundry. The areas between the buildings will be paved for the eastern portion of the public cul-de-sac terminus for Apple Avenue, on-site access driveways, parking stalls, and a screened trash/recycling receptacle area. There will also be covered parking stalls in front of several of the buildings. The areas along the project perimeters will contain small individual yard areas, large landscape planters and an extensive garden area. The landscaping will include a greater proportion of new landscaping than the Menton property to the east, with Dwarf Magnolia, Red Maple, and Crape Myrtle trees used throughout the perimeter areas. A wide variety of shrubs and groundcovers will also be used in the perimeter areas and in smaller planters in the center areas of the site. STAFF ANALYSIS General Plan Consistency: The proposed development project is consistent with the goals and policies for the proposed HDR (High Density Residential) land use designation since it meets or exceeds the siting criteria prescribed in the General Plan Land Use Element. Staff notes that the project also complies with Housing Element goals and policies for maximizing housing opportunities on available properties. Zoning Consistency: The proposed development project is consistent with the use and development standards of the proposed R-3 Zoning District since it complies with requirements for permitted uses, building height limits, yard area and setback requirements, and on-site parking. The proposed site layout also provides more than adequate area for landscaping and the conceptual landscape plan provides an effective mix of retaining existing trees, new plantings, and open spaces for personal recreation. It is also staff's opinion that the site layout and building designs are highly compatible with the surrounding land uses. The Rocha property is bounded by the Summercreek Village apartment complex to the north, with a Iow-density residential neighborhood to the south, and the proposed development projects on the Menton and Rocha properties are expected to provide an efficient transition between these land uses. Furthermore, the bulk of activity for both of the proposed development sites will be relatively self-contained in the center of the complexes, where the parking and access roadways will be. The perimeter areas of the lots will be used primarily for larger landscaping and small individual yards that are compatible with the abutting land uses. Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha Consistency with Ukiah Municipal Airport Master Plan: The project site is located approximately 0.6 mile north of the Ukiah Municipal Airport's runway, which places it in Airport Compatibility Zones B1 and B2 (Extended Approach-Departure Zone), as defined in the Compatibility Criteria tables for both the Ukiah Municipal Airport Master Plan and the Mendocino County Comprehensive Land Use Plan. According to these criteria, multiple-family residentiaJ projects are "not normally acceptable" in either of these compatibility zones. However, the project site area is less than two acres and the less intense B2 compatibility zoning is therefore applied, which, in turn, makes the proposed apartment complex subject to the Infill policy (Policy 2.1.6) listed in both airport plans. In this case, the proposed development is considered to be consistent with the B2 infi[I criteria since the residential densities will not exceed 28 dwelling units or 60 persons per acre, the development maintains 30 percent of its lands in open space, and routinely occupied potions of structures will not exceed two stories in height. In fact, the Infill policy encourages higher density uses like this project since Iow density development projects typically show a lower tolerance for aircraft-generated noise. While noise from aircraft is not considered a significant adverse environmental impact or a hazard to persons that will be using the site, Planning staff is concerned with the nuisance effects it will cause. Therefore, staff recommends that future residents are notified of the noise factor prior to the signing of any leases or rental agreements by the provision of explanatory text in all such agreements. Specifically, staff recommends that any approval of the project include Condition No. 21, which would require that rental agreements include an advisement to potential renters that a) the apartment complex is located in close proximity to the Ukiah Municipal Airport and is subject to occasional overflights of aircraft taking off or landing at the airport, and b) the number of noise-producing flights may increase in future years. The language in this advisement shall be approved by the Director of Planning prior to the issuance of a Permit of Occupancy for any of the proposed apartment buildings. Neighborhood Compatibility: The existing development on the subject properties is Iow density, with few improvements present on this expansive lot. Therefore, the approval of this development project will alter the existing land uses substantially, but it is not a substantial alteration in the land uses already allowed on the site since both lots are currently underdeveloped. Staff further notes the proposed apartment complex will also provide a more balanced land use pattern over the entire site, with more even distribution of buildings and common-use areas such as the parking, access driveways, and landscaping. The proposed development will also provide a more efficient transition between the medium to high residential on the lands to the north and the medium- density land uses to the south. Therefore, no substantial adverse conflicts with the established uses on the site and no substantial disruptions or divisions to the surrounding land uses are anticipated. Public Works Department staff identified incremental increases to existing traffic levels on Apple Avenue as a result of this infill development, but they do not anticipate that the projected increases will be substantial in volume and cause direct or significant impacts to local traffic circulation. Staff also confirmed that Apple Avenue is approximately 30 feet wide from curb to curb, which is considered to be an adequate width for a two-lane road where vehicle parking is allowed on both sides of the street. Ambient noise from the proposed development will add to localized noise levels in the neighborhood, but there is nothing in the design of the project that will cause regular or hazardous noise impacts. In fact, it is expected that most of the noise from the proposed apartment complexes will be absorbed into the ambient noise that already exists in this neighborhood. Planning Department staff note that the proposed buildings and grounds for the apartment complex have been designed with a high degree of compatibility with the surrounding properties. This compatibility is based on the use of similar roof peaks, gables, and other residential-style design features and the use of buildings that are not out of scale with surrounding structures. In addition, the building will be constructed with wooden siding, composition roofing, and other materials that are Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha commonly used on the medium to high density developments north of the site and on the single family residences south of the site. In fact, it is staff's opinion that the Menton and Rocha site development projects would provide an efficient and attractive transition between these different styles of residential development. Environmental Analysis: The proposed project is not exempt from the provisions of the California Environmental Quality Act, and an Initial Study was prepared to analyze potential adverse environmental impacts caused by this project and the General Plan Amendment/Zone Change and the Rocha site development permit that were submitted with it. In this study, staff reviewed potential environmental effects caused by the proposed land use changes, such as growth inducement and impacts to housing, and determined that the General Plan Amendment and Zone Change portion of the project is not expected to cause any direct significant adverse effects. However, the study identified that the development portion of the projects could create potentially significant adverse impacts to biological resources, geology and soils, and hydrology and water resources. Therefore, mitigation measures and a mitigation monitoring report were prepared to reduce these impacts to levels that are not considered significant and a Mitigated Negative Declaration was prepared for all of the projects. The most substantial environmental issue related to the development projects is the potential for excessive storm drainage during 10-year events, which was reviewed through a hydrology report prepared for the Menton and Rocha projects and the O'Bergin development project to the west. This report noted that storm drainage could increase by 20 percent during such events, and recommends the development of an on-site drainage detention system to ensure that drainage volumes match pre- development levels. This issue is discussed more thoroughly in the Initial Study and the mitigation measures addressing drainage issues are included as recommended Condition Nos. 28-29. CONCLUSIONS: When Planning Department staff first reviewed the application for the general plan amendment/zone change and site development permits that make up the overall proposal to develop the lands at the end of Apple Street, it appeared their approval would allow the overall density for the entire 1.46-acre Menton/Rocha site to double. However, careful analysis of the site's actual development potential revealed that potential increase could not exceed 25 percent, and that the proposed increase in the number of units would exceed its allowed density by only one unit. Staff further concluded that both the Menton and Rocha residential development projects will be highly consistent with General Plan guidelines and zoning standards for the medium to high density land use proposed. In addition, the proposed site layouts and building designs used in these projects will provide a more compatible project that provides an attractive and effective transition between the Summercreek Village apartment complex on its north side and the lower intensity residential neighborhood to the south. These projects will also provide the area and infrastructure for a much-needed cul-de-sac terminus for the Apple Avenue right-of-way that serves this residential neighborhood. Finally, staff concludes that the proposed development projects are consistent with the intent and the specific compatibility criteria for the B2 Infill zoning that applies to the properties that make up the 1.46- acre Menton/Rocha site. This conclusion is based on the fact that neither of the proposed apartment complexes will cause the area's population to exceed 60 persons per acre, both projects will retain more than 30 percent of its lands as open space, and neither will not use structures that exceed two stories in height. FINDINGS: The Planning Department's recommendation for approval of Major Site Development Permit No. 04-30 is based, in part, on the following findings: The proposed residential buildings and surrounding grounds are consistent with the Ukiah General Plan since they comply with the goals and policies for the siting of new development in the Land Use Element's HDR (High Density Residential) land use classification and with Housing Element goals for the maximum use of higher density residential lots; Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha The proposed multiple-family residential use is a permitted land use in the proposed R-3 (High Density Residential) Zoning District and the proposed building and grounds would be developed in a manner that is consistent with the development standards for this district; There is sufficient variety, creativity, and articulation in the architecture of the proposed multiple- family residential structures and the design of the surrounding grounds to avoid monotony or a box-like external appearance; The proposed multiple-family residential development is consistent with the criteria for the B1 and B-2 Compatibility Zones of the Ukiah Municipal Airport Master Plan/Mendocino County Airport Land Use Plan since it is located within an infill zone that allows and encourages two-story multiple-family residential development and complies with open space and density requirements for this zone, and will not expose persons to substantial hazards or nuisances caused by aircraft flying over the subject property; The location, size, and intensity of the apartment complex project would not create hazardous or inconvenient impacts to existing vehicular traffic patterns since the development of the site with the multiple-family residential complex will not cause a substantial increase in traffic volumes or patterns and will provide a publicly maintained cul-de-sac terminus for Apple Avenue, which provides the only ingress and egress to the subject properties and the abutting residential neighborhood; The accessibility of off-street parking areas and the relation of parking areas with respect to traffic on adjacent streets will not create a hazardous or inconvenient condition to adjacent surrounding uses since the proposed residential complex will have improved ingress and egress and adequate on-site parking, and will not cause substantial increases in traffic volumes or require substantial modifications to traffic patterns or the existing street system; The location, size, and intensity of the project will not create hazardous or inconvenient impacts to pedestrian traffic since the development of the site with the multiple-family residential building and surrounding grounds will not adversely affect adjacent sidewalks and the required cul-de-sac will be bounded by similarly-sized sidewalks; Sufficient landscaped areas and open spaces have been reserved for purposes of separating or screening the proposed structures from each other and from adjoining residential properties since the landscape plan for the site will utilize extensive perimeter plantings that substantially expand the amount of vegetation on the site; The proposed multiple-family residential buildings will not cut out light or air on the property since the proposed building would be constructed along the perimeter areas of the property and would be set back at least 20 feet from the nearest properties to the north; 10. The improvement of this property with the multiple-family apartment complex will not have a substantial detrimental impact on the character or value of an adjacent residential zoning district since the proposed development represents a substantial improvement to existing conditions on the property and will provide a more efficient and transitional buffer between the higher density developments to the north and the lower density residential neighborhood to the south; and 11. The proposed multiple4family residential development will not cause excessive damage to or destruction of natural features on the site since none are present on the site. Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha CONDITIONS OF APPROVAL: The following Conditions of Approval shall be made a permanent part of Major Site Development Permit No. 04-33, shall remain in force regardless of property ownership, and shall be implemented in order for this entitlement to remain valid: All use, construction, or occupancy shall conform to the application approved by the Planning Commission, and to any supporting documents submitted therewith, including maps, sketches, renderings, building elevations, landscape plans, and alike. Any construction shall comply with the "Standard Specifications" for such type of construction now existing or which may hereafter be promulgated by the Engineering Department of the City of Ukiah; except where higher standards are imposed by law, rule, or regulation or by action of the Planning Commission. In addition to any particular condition, which might be imposed, any construction shall comply with all building, fire, electric, plumbing, occupancy, and structural laws, regulations and ordinances in effect at the time the Building Permit is approved and issued. 4. Applicant shall be required to obtain any permit or approval, which is required by law, regulation, or ordinance, be it required by Local, State, or Federal agency. Building Permits shall be issued within two years after the effective date of the Site Development Permit, or it shall be subject to the City's permit revocation process and procedures. In the event the Building Permit cannot be issued within the stipulated period from the project approval date, a one year extension may be granted by the Director of Planning if no new circumstances affect the project which otherwise would render the original approval inappropriate or illegal. It is the applicant's responsibility in such cases to propose the one-year extension to the Planning Department prior to the two-year expiration date. The approved Site Development Permit may be revoked through the City's revocation process if the approved project related to the Site Development Permit is not being conducted in compliance with the stipulations and conditions of approval; or if the project is not established within two years of the effective date of approval; or if the established land use for which the permit was granted has ceased or has been suspended for twenty four (24) consecutive months. Except as otherwise specifically noted, the Site Development Permit shall be granted only for the specific purposes stated in the action approving the Site Development Permit and shall not be construed as eliminating or modifying any building, use, or zone requirements except as to such specific purposes. Improvement Plans for curb, gutters, sidewalks, driveways and street paving along the proposed Apple Avenue terminus shall be prepared by a licensed civil engineer in accordance with City Standard Drawings and submitted for review to the Ukiah City Engineer prior to the issuance of any ministerial permits for site preparation activities required for its construction. All improvements shall be constructed in conformance with the approved improvement plans under an Encroachment Permit issued by the Public Works Department. The Encroachment Permit shall be submitted to the City Engineer for review and approval prior to the City Engineer prior to the issuance of a Building Permit for the project with a fee equal to three percent (3%) of the cost of the improvements. 10. All improvements shall be done by a properly licensed Contractor with a current City of Ukiah Business License who shall submit copies of proper insurance coverage (Public Liability: $1,000,000; Property Damage: $1,000,000) and current Workman's Compensation Certificate. Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha 11. The City Engineer shall permit no site preparation or grading activities on the project site without the review and approval of a Grading and Drainage Plan. This Plan shall include the following: a) The extent of modifications to existing drainage patterns; b) The extent of storm drainage improvements and erosion control measures for building pads, driveways, parking lot areas, and other movements of soil; c) The extent of other development the City Engineer determines could adversely affect existing drainage patterns on the site or on abutting properties or could cause wind or water erosion. 12. Stockpiled soil shall be protected from erosion; drainage from all disturbed and stockpiled soils shall be directed on-site to a disposal location approved by the City Engineer. 13. All on-site paving shall be a minimum of 2" (inches) of asphalt concrete with a 6" (inch) aggregate base, or, alternatively, any option approved by the City Engineer 14. Sewer, water, and electric service shall conform to the specifications of the City Public Utilities and Public Works Departments. 15. A Landscaping and Lighting Plan shall be submitted by the project applicant and approved by the Director of Planning prior to the issuance of a Certificate of Occupancy for the building. This plan shall include, but not be limited to the following: a) A planting legend that includes the names, location, coverage area, and canopy cover of proposed vegetation; b) A planting schedule for all vegetation installed on the site; c) A maintenance schedule for existing or proposed vegetation, including a watering schedule and irrigation system design; and d) A lighting plan for any proposed exterior lighting installed or otherwise used on the site, including the design of the light standards used. 16. All landscaping shall be maintained in a neat, weed-free manner, and may not be removed or substantially altered unless the Director of Planning reviews and approves the removal or replacement of vegetation determined to be diseased, unstable, hazardous, or poorly located on the site. Any vegetation removed from the site shall be replaced with similar vegetation approved by the Planning Director. 17. Any roof-mounted air conditioning, heating, and/or ventilation equipment shall be aesthetically screened from view consistent with the architecture of the building upon which it is located. 18. Outdoor refuse/recycle containers shall be aesthetically screened from view; garbage shall not be visible outside the enclosures. 19. A recycling program that provides the opportunity for all residents of the apartment complex to recycle shall be implemented by the apartment managers prior to the occupancy of any of the apartments and shall remain in effect so long as the apartments are occupied. This program shall be reviewed and approved by the Planning Director prior to its implementation to ensure it provides an efficient method for recycling and is consistent with the requirements of the Municipal Code. 20. Hours of construction shall be limited to the hours between 7:00 a.m. to 7:00 p.m., Monday Planning Commission Staff Report for Major Site Development Permit No. 04~33: Ruff/Rocha through Saturday unless additional hours of construction for special construction activities or projects are reviewed and approved by the Planning Director. 21. Rental and lease agreements for all of the apartments on the subject properties shall include an advisement to potential renters that a) the apartment complex is located in close proximity to the Ukiah Municipal Airport and is subject to occasional overflights of aircraft taking off or landing at the airport, and b) the number of noise-producing flights may increase in future years. The language in this advisement shall be approved by the Director of Planning prior to the issuance of a Permit of Occupancy for any of the proposed apartment buildings. 22. Prior to the issuance of a Building Permit, a Final Landscaping/Lighting Plan shall be submitted for review and approval by the Director of Planning and Community Development or his/her designee. The Final Landscaping Plan shall also include details regarding exterior lighting for structures, garden areas, and walkways, which shall be hooded and down-cast, and shall not shine towards neighboring properties or skyward. 23. All activities involving site preparation, excavation, filling, grading, road construction, and building construction shall institute a practice of routinely watering exposed soil to control dust, particularly during windy days. 24. All inactive soil piles on the project site shall be completely covered at ail times to control fugitive dust. 25. All activities involving site preparation, excavation, filling, grading, and actual construction shall include a program of washing off trucks leaving the construction site to control the transport of mud and dust onto public streets. 26. Low emission mobile construction equipment, such as tractors, scrapers, and bulldozers shall be used for earth moving operations. 27. All earth moving and grading activities shall be suspended if wind speeds (as instantaneous gusts) exceed 25 miles per hour. 28. Plans and designs for a storm drainage detention system capable of handling the increased runoff volumes described in the hydrology study prepared for this project shall be submitted to the City Engineer and shall be approved by the City Engineer prior to the approval of ministerial permits for grading or other site preparation activities in the undeveloped portions of the subject property or for the construction of any new apartment units on the site. No such system will be required for repaving in developed portions of the site or the remodeling of existing apartment units. 29. A Grading and Drainage Plan that includes an Erosion and Sediment Transport Control Plan shall be submitted to the City Engineer/Public Works Director for review and shall be approved prior to the commencement of any grading, site preparation activities, or construction of buildings and paving. A licensed civil engineer shall prepare all drainage calculations and other work done on this Plan. 30. All conditions that do not contain a specific date or time period for completion shall be completed prior to the issuance of a Certificate of Occupancy. PLANNING DEPARTMENT RECOMMENDATION: Based on the Findings above, the Planning Department recommends that the Planning Commission recommend to the City Council that it: Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha 1. Adopt the Negative Declaration prepared for Major Site Development Permit 04-33; and 2. Approve the Major Site Development. ATTACHMENTS: 1. Location Map 2. Site Exhibit Packet (w/Title Sheet; Architectural Site Plans; Elevations; & Landscape Plan) 3. Assessor's Parcel Page for Site Area (showing existing lot sizes and boundary lines) 4. Mitigated Negative Declaration for GPA/ZC No. 04-32; SDP 04-30; & SDP 04-33 Planning Commission Staff Report for Major Site Development Permit No. 04-33: Ruff/Rocha Affachment # ~ Commissioner Pruden stated the applicant should be allowed to display up to three umbrellas and tastefully color coordinated and properly maintained. She expressed concern that the use of umbrellas would be for advertising purposes rather than to shade the merchandise. Commissioner Jennings stated he was not sure the applicant intended the umbrellas would be used as an advertising devise. Commissioner Whetzel stated the applicant is likely using the umbrellas as eye-catching devices. PUBLIC HEARING RE-OPENED: 7:10 p.m. Mr. Ramirez addressed the issue/condition of the planters, and stated the primary issue is not necessarily the planters, but the manner in which he is conducting business. PUBLIC HEARING CLOSED: 7:12 p.m. Commissioner Pruden suggested placing a two-year cap for review of the Use Permit, impose the standard landscaping conditions, and that the umbrellas be properly maintained and replaced when necessary. Mr. Lohse recommended the landscaping condition language state that the existing landscaping be properly maintained. Mr. Lohse further recommended that language be crafted in such a manner relevant to the Use Permit time device that the Use Permit would not expire after a two-year period and that the it be reviewed by the Planning Commission. Additionally, language should be included that states should the outdoor sales cease for a certain number of months that the Use Permit shall expire. The standard language currently reflects a six-month period. If the applicant sells his business and the next owner does not wish to continue the outdoor sales, the Use Permit would lapse. ON A MOTION by Commissioner Pruden, seconded by Commissioner Jennings, it was carried by an all AYE voice vote of the Commissioners present to approve Minor Use Permit No. 04-52 with Findings 1-8 and Conditions of Approval 1-14 with Condition of Approval No. 12 requiring the umbrellas be well-maintained and replaced when appropriate, Condition of Approval No. 13 requiring that the current landscaping features be maintained, and Condition of Approval No. 14 requiring the Use Permit to be reviewed within a two-year period and if the existing business ceases operation that the Use Permit will expire, as outlined in the staff report, and as discussed above. 9B. General Plan Amendment/Zone Change No. 04-32: Ruff/Menton/Rocha will allow the General Plan land use designation for the 0.75-acre Menton property on the western portion of the project site to be changed from a mix of C (Commercial) and MDR (Medium Density Residential) to HDR (High Density Residential) and change the zoning designation for these lands from C-1 (Community Commercial) and R-2 (Medium Density Residential to R-3 (High Density Residential). The approval of this application will also allow the General Plan land use designation for the 0.69-acre Rocha property to be changed from MDR (Medium Density Residential) to HDR (High Density Residential) and rezone it from R-2 (Medium Density Residential) to MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 5 R-3 (High Density Residential). The project site consists of four contiguous lots located at 760 & 767 Apple Avenue (Assessor Parcel Numbers 003-050-29,66,85 & 86, at the northern terminus of Apple Avenue. Associate Planner Lohse recommended the Commission consider agenda items 9B-D together. His staff report addressed the three projects in one presentation. He recommended that one public hearing be held and that a separate motion be made for each of the three projects. He advised that the Commission, as a recognized land use review body, is required to make a recommendation to the Ukiah City Council for final approval. Mr. Lohse addressed the project as follows: > The actual development of the proposed two 16-unit apartment complexes in varying configurations for applicant Rocha and applicant Menton will require the recordation of Boundary Line Adjustment 04-31 (BLA), which was approved by the Ukiah City Engineer in 2004. The reconfigured lots resulting from the recordation of the BLA are exhibited for the Ukiah General Plan Amendment, the Re-zone, and the two Site Development Permits. The projects include four-contiguous parcels (two parcels owned by Mr. P,ocha on the east side and two parcels owned by Mr. Menton on the west side) at the end of Apple Avenue. These lots are accessed via private driveways located at the existing dead-end terminus for Apple Avenue. The project conditions for these two projects require the implementation of a cul-de-sac that will be dedicated as a public right-of-way. Staff prepared an Initial Study for the General Plan Amendment and the two Site Development Permits, as required by CEQA. The Study identified potential significant environmental impacts associated with aesthetics such as night lighting, short-term dust impacts, the possibility of historical resources being discovered on site, and hydrology issues more closely related to the aspects of the two proposed Site Development Permits than the General Plan Amendment. The potential impacts referenced above will be succassfully mitigated to insignificant levels by measures in the Mitigated Negative Declaration prepared for the projects. Also, hydrology studies were prepared for the P,ocha and Menton properties where the storm drainage issues were identified and measures proposed to reduce the on-site water retention and other related potential run-off problems were included as mitigation measures/conditions. ~ Identification of the existing structures and overalt existing layout of the lots are specifically addressed in the staff report in terms of potential demolition and/or retention of existing buildings/structures for future uses, including an analysis of the individual project descriptions for the Menton and P,ocha properties, as well as the reconfiguration of the lots resulting from the BLA. > The proposed General Plan Amendment and Zone change are required in order for the new developments to work and will allow the General Plan land use designation for the two lots making up the Menton property of the project site to be changed from a mix of C (Commercial) and MDR (Medium Density Residential) to HDR (High Density P,esidential). It will also change the zoning designation for these lands from C-1 (Community Commercial) and P,-2 (Medium Density Residential) to P,-3 (High Density Residential). The General Plan land use designation amendment for the P, ocha property will be changed from MDR (Medium Density P,esidential) to HDP,, with zoning changed to P,-3 (High Density Residential). The proposed General Plan Amendment and Re-zone were fully evaluated in terms of the anticipated increase in the growth potential represented by the changes made on MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 6 ~" the land use maps. Staff was initially concerned with the maximum number of units allowed per acre on the lots since High Density Residential allows up to 28 units per acre. As the projects developed, the applicants proposed the development of 32 units, which calculates to be approximately 22 units per acre, and places the density level in the medium to high range. Staff also noted 31 units could be developed on the site now since some of it is in the commercial designation, which allow R-3 densities. Essentially, the proposed Site Development Permits calculate to be one unit more than would be allowed under the existing land use designation and zoning configurations with discretionary approval. Staff anticipates that the number of units proposed for the property would remain at 32, as proposed. The aforementioned proposed changes would allow the development and other uses in the area to balance cohesively. The issue of the proposed General Plan Amendment was reviewed for consistency with the Ukiah Municipal Airport Master Plan. The project site is located approximately 0.6 mile north of the Airport runway, which places it in the Airport Compatibility Zones B1 and B2, as defined in the Compatibility Criteria tables for both the Ukiah Municipal Airport Master Plan and the Mendocino County Comprehensive Land Use Plan. Multiple-family residential projects are not normally acceptable in either of these compatibility zones. However, the site areas concerning each of the two projects is less than two acres where the less intense B2 compatibility zoning is applied, which makes the proposed General Plan Amendment and Zoning change subject to the Infill policy of the County and City airport plans. The proposed change to high density land uses would conform with this policy since the residential densities allowed on the site will not exceed 28 dwelling units per project, the developments would maintain 30 percent of its lands for open space, and the multiple-family projects will not exceed two stories in height. Also, the Infill policy encourages multiple-family projects over single-family residential development, as Iow density housing developments are considered to be more susceptible to aircraft noise impacts and airplanes definitely fly directly over this project site. The staff report also addresses the issues of parking and on-site circulation, landscaping/landscaping retention, and neighborhood compatibility for the two projects. Based on its analysis, staff recommended that the Planning Commission recommend approval of all of the projects. Commissioner Pruden questioned the Mitigated Negative Declaration as follows: Page 2, regarding paragraph 4, that states, "The existing property lines for the four parcels are not conducive to the development pattern proposed in the site development plans proposed by the various owners. Therefore, the applicants previously submitted BLA No. 04-31 to establish the parcel lines proposed in each of the Site Development Permits. This BLA application was approved by the Ukiah City Engineer in September of last year, but it will not be recorded to finalize the configuration of the lots unless the proposed General Plan Amendment/Zone change and development project are approved," and inquired whether the site development plans/designs were completed based on the approved BLA. Mr. Lohse stated the boundary lines were primarily based on how the sites were going to be designed, using the Menton project as an example of retention and re-use of the existing structures on site. He also noted that the existing property lines include a substandard, MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 7 nonconforming lot on the Menton property and was not conducive to the development of the cul-de-sac terminus planned for the end of Apple Avenue. Page 12, C. Impacts, reference to the sentence that reads, "Planning staff does intend to add a Condition of Approval that apartment leases include information regarding aircraft operations, but this action will not be required as a mitigation measure since it addresses a nuisance impact and not an environmental effect," and inquired how this information would be filed/recorded. Mr. Lohse referred to the condition of approval for the two Site Development Permit projects that reads, "Rental and lease agreements for all of the apartments on the subject properties shall include an advisement to potential renters that a) the apartment complex is located in close proximity to the Ukiah Municipal Airport and is subject to occasional overflights of aircraft taking off or landing at the airport, and b) the number of noise-producing flights may increase in future years. The language in this advisement shall be approved by the Director of Planning prior to the issuance of a Permit of Occupancy for any of the proposed apartment buildings." This is the same language implemented for other apartment complex projects in the B2 Infill policy criteda zone. He added that since this language was contained in the Danco project leases, that there have been no complaints of aircraft noise. The crafters of the Airport Master Plan understood that tenants are less susceptible to noise impacts when they are aware of the potential impact, whereas people living in single-family dwellings are less amenable to the noise since many of their activities are outdoors. Page 19, TransportationFFraffic/Circulation, and advised that different statistics are being applied relevant to the projected traffic increase of the stated "140-150" trips per day. According to the City's Trip General Manual, the average residential family unit generates 10 trips per day. She questioned whether this statistic is accurate and/or applicable to the project. Mr. Lohse replied, "no." The International Traffic Engineer's calculations for multiple family units indicate six traffic trips a day per unit as the accepted standard. This information demonstrates that persons living in apartment complexes make fewer traffic tdps than the average single-family residential use. Also, the Citywide Traffic Study findings quantified that the number of traffic tdps for multi-family units is six trips per day. He also cited that this standard had been applied accurately to the Dancc/Summercreek Village project and other similar projects. PUBLIC HEARING OPENED: 7:44 p.m. Alan Nicholson, Architect, Richard Ruff and Associates, added that his firm has worked closely with the City Fire Department to create a safe ingress and egress to the apartment complexes for emergency vehicles to ensure ample fire protection. Ruff and Associates have also worked with the City Public Works Department to upgrade the water system in the vicinity of the project area. Chair Mulheren expressed concern regarding the issue of traffic congestion on Cherry Street and South State Street at 8:00 a.m., and whether thought was given to how the new developments could contribute to this congestion. MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 8 ~.._ Mr. Nicholson stated the Traffic Study estimated that the increase in traffic in the area of projects would be less than one percent. He had no statistical information regarding traffic congestion at 8:00 a.m. at the intersection of Cherry Street and South State Street. Mr. Lohse stated residents of Apple Avenue have expressed concern about traffic congestion on this street. Apple Avenue is a two-way street. City Public Works/Engineer staff examined the street, and noted that, at 30 feet in width, it is a little narrower than other City streets in the area. However, the width is considered adequate for parking on both sides of the street, as well as for dual-lane traffic to pass one another. Because Apple Avenue is somewhat narrow, it creates its own traffic calming measure to slow traffic down. Staff examined the right and left turn issues onto Cherry Street from South State Street because of the concern for traffic congestion during peak hours and determined that while the proposed project could increase traffic some, the increase would not significantly impact existing traffic conditions. The Citywide Traffic Study is examining all of the City streets relevant to the various uses and zoning designations, and staff anticipates that the findings and recommendations will provide the necessary data to adequately address the traffic circulation and intersection problems throughout the City. Chair Mulheren stated that Cherry Street is sufficiently wide enough to implement a left- hand turn lane, should the traffic circulation circumstances make it necessary. He added that there is pedestrian access through the rear of the Menton property that could encourage residents in the area to walk rather than drive. Mr. Lohse concurred that there is an existing gate. Commissioner Jennings inquired whether consideration has been given to implementing landscaping features or change in materials at the cul-de-sac and/or entrance of the property to help break-up the mass of the building walls. Mr. Nicholson referred to the landscaping plan, and stated the two property owners desire to display the projects as being separate. The property owners are amenable to using color schemes/landscaping features to help break-up any mass and to make the projects architecturally pleasing to avoid providing for an "institutionalized housing" appearance. He specifically addressed the proposed landscaping plans for the projects. A general discussion followed regarding the number of bedrooms for the projects to address the issue of potential visual and traffic impacts to the neighbors. Commissioner Pruden inquired whether it was possible that there could be four separate property owners since there are essentially four parcels. Mr. Lohse stated it was possible, but, in his opinion, he did not see the parcels being actively marketed in this manner. If the above were the scenario, there would be shared access and parking agreements to ensure smooth traffic flows on the site. A general discussion followed regarding appropriate tree species for the projects. Commissioner Whetzel addressed the issue of traffic circulation, and stated Cherry Street is narrow. He inquired whether there has been dialogue with the people living in the area concerning the development of the proposed projects. MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 9 Mr. Nicholaon recommended the Commission ask the applicants regarding neighborhood feedback in this regard. Sidney Hunt stated she resides on Apple Avenue, and expressed concern about the narrowness of this street and the problems that currently exist with ddvers effectively being able to pass one another when there are vehicles parked on either side of the street. She further expressed concern that the developments would add to the existing traffic problems on Apple Avenue. She stated the neighborhood consists of primarily retired persons with relatively few children. She was concerned that the development would encourage families with children and the impact this could have on the neighborhood in terms of safety for the children to play, increased traffic/parking problems, and other potential problems. She is not supportive of the project. Commissioner Pruden asked Ms. Hunt how many units would be acceptable for the projects. Ms. Hunt commented she not sure how many buildings currently exist on the lots because she does not desire to intrude on her neighbors' pdvacy. She was not supPortive of developing the proposed 32 units, and recommended the construction of single-family dwellings rather than multiple family units. Rita Greason stated she resides on Apple Avenue, and commented on the negative experiences she has encountered relevant to the rental units in the neighborhood and the associated invasion of privacy to her family. She recommended having an on-site manager. She expressed concern regarding the existing traffic problems on Apple Avenue regarding the narrowness of the street. She is not supportive of the project. PUBLIC HEARING CLOSED: 8:15 p.m. PUBLIC HEARING RE-OPENED: 8:16 p.m. Estok Menton, applicant, addressed his project, and stated his intent is to be a good neighbor and desires to continue being a good neighbor. He acknowledged the traffic problems on Apple Avenue since the primary use of his property has been commercial. The number of trips traveled per day should not significantly be increased with the new development/use, as the typical commercial vehicles in connection with the existing commercial establishment will no longer use Apple Avenue when the commercial use is phased out. Commissioner Pruden stated a commercial use differs from multiple-family use, and stated traffic in the area will be affected by the projects since commercial employees function differently than residential tenants. Commissioner Pruden questioned Mr. Menton as to the problem with medium density levels of development, and inquired as to the reason for the General Plan Amendment. Mr. Menton stated he was not sure he was qualified to sufficiently answer this question, and stated part of what is being proposed includes recreational space. The intent was not to cram as many units on the properties as allowed. He desired to give up a portion of MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 10 ,.~.~ ~ developable property to provide for the recreational space for the residents and to regularly ensure the property is appropriately maintained. Commissioner Pruden inquired whether a plan is in place to maintain the buildings as they age in order to reframe from a deteriorated appearance and potential down grade to the neighborhood in the event the property is sold. Mr. Menton stated he could not answer for future owners, and understands the importance of maintaining architectural pleasing buildings. PUBLIC HEARING CLOSED: 8:22 p.m. Commissioner Jennings inquired whether the number of on-site parking spaces has been determined. Mr. Lohse referred to staff's analysis, and there is more parking provided than required by the Code. The UMC requires one parking stall for a single bedroom and two parking stalls for units exceeding two bedrooms or more. He commented the projects add many amenities to Apple Avenue that do not presently exist primarily with the development of the cul-de-sac terminus. He addressed the Apple Avenue width issue, and stated although it may be difficult for two vehicles to pass one another with vehicles parking on both sides of the street, it is passable. He emphasized that speeding traffic would not be an issue because the existing conditions would not allow this to occur. One of staff's pdmary focuses was to ensure that the project provided for effective emergency vehicle access. Commissioner Jennings inquired whether the projects could be conditioned to provide for on-site management of the complexes. Mr. Lohse was not sure whether Mr. Rocha intends to have an on-site manager although the development plans include space for a manager's office and living quarters. Requiring an apartment complex to have an on-site manager living in the facility is not a standard condition for such projects. He stated the Planning Commission could make a recommendation in this regard, but a specific finding must be made in support of the need for an on-site manager and did not support the Commission making this recommendation. Commissioner Pruden referred to page 19 of the Mitigated Negative Declaration, and requested clarification regarding the number of trips per day for multi-residential units. Mr. Lohse stated the recognized standard is six vehicle tdps per unit. He stated many of the proposed units would be one bedroom, which would actually lessen the numbe~' of vehicle trips project for the project. He stated staff's statistical data was carefully documented. Commissioner Pruden reiterated, in her opinion, the statistical data relative to the projected traffic increase should be a higher number of day tdps rather than 140-150 trips as provided for in the Mitigated Negative Declaration because the information does not appear to accurately reflect the existing number of trips from the present uses on the sites, as well as the anticipated number of persons living in the units that can drive a vehicle. MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 11 ~.._,~ Mr. Lohse stated the 140-150 vehicle trips cited takes into consideration additional trip, as well as the existing traffic from Mr. Menton's contracting business and Mr. Rocha units had to be factored into the statistical information. Commissioner Pruden addressed the Airport Master Plan, Chapter 7, Land Use and Environmental Issue, Page 6, that reads, ~The primary means of limiting the risk of injuries to persons or damage to property on the ground due to near airport aircraft accidents is to limit the density of the land use development in these areas." The projects exist in the B1 and B2 Compatibility Zone, and inquired whether the Commission is willing to approve the projects by increasing the density and potential risk of airport incidents. The proposed General Plan Amendment and Zone change would have an effect on the Airport to function as an entity, because changing the density can essentially cause airports to cease existence. It is not the number of units that is the issue, but the total number of persons living in those units below the approach zone for aircraft desiring to land. Medium density development levels provide for more protection for the Airport, as well as lessens the hazard in the event of an aircraft accident. Chair Mulheren commented Mr. Menton could develop his property to a greater extent than what he is proposing. Mr. Lohse agreed that the properties could be developed with an even greater density than proposed, and the proposed developments of 32 units is actually considered a medium to high density rate. Staff is cognizant of the Airport protection measures and part of the reason why the project has taken so long to process is the intense and prolonged discussion with the County staff concerning whether the project would have to go to the County Airport Land Use Commission as a result of the project being located in the B1 and B2 Compatibility Zone. Because the project is less than two acres, the less intense B2 compatibility zoning would be applicable in this case, which makes the B2 Infill development applicable to the project. A general discussion followed regarding the allowing the density allowance to change and the future effects this change could have on the Airport. Commissioner Whetzel commented on the density and traffic issues concerning the projects, and inquired whether an alternative access is a possibility. Mr. Lohse explained that the Apple Avenue/Cherry Street corridor is only one way in and out, and pursuing an alternative access route may not be practical due surrounding development patterns. He would, however, review the potential for an alternative access. Commissioner Whetzel addressed the potential noise impacts, and stated the City has adopted the Quiet Flying and Good Neighbor Policy programs, which are instrumental in assisting pilots for applying proper protocol when flying in the approach and department zones. He is not concemed with the height of the projects because it is likely the trees to be implemented would later be taller than the structures. He acknowledged the fact that safety is an issue with people living under the approach path to the Airport and that future growth at the Airport is anticipated. Chair Mulheren commented the property could be further developed commercially, which would not be practical because there would be increased traffic, as there would be more MINUTES OF THE PLANNING COMMISSION February 23, 2005 Page 12 people on the property dudng the day. He noted that most apartment units would likely be vacant during the day when more flights are coming in to land at the Airport. A brief discussion followed regarding the potential of developing the parcels commercially. Commissioner Pruden stated the issue is not the quality of the project, and reiterated that staff has done an extraordinary job in its analysis. She stated whether 22 or 32 units are developed, the neighborhood will be impacted. The addition of 10 more units from 22 to 32 would not craate that much more of an impact on the neighborhood, since the applicants could essentially put in 22 units without a General Plan Amendment/Zone change. The project would allow for some improvements to Apple Avenue with the development of the cul-de-sac terminus. Aisc, some of the existing unsightly rasidential dwellings will be demolished, which will aesthetically enhance the neighborhood. Commissioner Whetzel agreed with Commissioner Jennings that an effective landscaping plan would assist with providing privacy and supplement the beauty of the neighborhood. ON A MOTION by Commissioner Pruden, seconded by Commissioner Jenning§, it was carded by an all AYE voice vote of the Commissioners present to recommend that the City Council adopt the Mitigated Negative Declaration prepared for General Plan Amendment/Zoning Change #04-32, Site Development Permit ~D4-30, and Site Development Permit ~O4-33. ON A MOTION by Commissioner Pruden, seconded by Commissioner Jennings, it was carried by an all AYE voice vote of the Commissioners present to recommend that the City Council approve General Plan Amendment/Zoning Change No. 04-32 to change the General Plan Land Use Map designation for the project site to HDR and the zoning to R-3. ON A MOTION by Commissioner Pruden, seconded by Commissioner Jennings, it was carded by an all AYE voice vote of the Commissioners present to recommend that the City Council approve Site Development Permit #04-32 (Menton) based on Findings 1-11 of the Staff Report, and subject to the 30 Conditions of Approval in the Staff Report, including the modification of Condition No. 15 to include Subsection (e) to read, "Vertical landscaping including medium to large canopy trees shall be planted in the landscape planter adjacent to the cul-de-sac to provide screening of the two-story wall facing this public right-of-way". ON A MOTION by Commissioner Pruden, seconded by Commissioner Jennings, it was carded by an all AYE voice vote of the Commissioners present to recommend that the City Council approve Site Development Permit #04-33 (Rocha) based on Findings 1-11 of the Staff Report, and subject to the 30 Conditions of Approval in the Staff Report, including the modification of Condition No. 15 to include Subsection (e) to read, ~Vertical landscaping including medium to large canopy trees shall be planted in the landscape planter adjacent to the cul-de-sac to provide screening of the two-story wall facing this public right-of-way'. 10. IOA. ONGOING EDUCATION What Plannin,q Commissioners Need to Know About Private Property Rights, a draft unpublished article by C. Gregory Dale, a Principal with the planning and zoning firm of McBride Dale Clarion in Cincinnati, Ohio. February 2005. The above-referenced publication is for the Commissioners' review. MINUTES OF THE PLANNING COMMISSION February 23_, 2005 Page 13 ~"'-~' ITEM NO. gc DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION AUTHORIZING APPLICATION FOR A TWO YEAR ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $1,000,000 AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL RELATED DOCUMENTS On March 2nd, Council approved applying for a two year allocation of CDBG funds in the amount of $1,000,000 on behalf of Plowshares Community Dining Facility. In order to proceed, a resolution is required authorizing the application and designating the City Manager as signator on all related documents. Attached is draft resolution provided by the State Department of Housing and Community Development. Staff is requesting adoption of the resolution as submitted. RECOMMENDED ACTION: Adopt Resolution authorizing application for a two year allocation of CDBG funds in the amount of $1,000,000 on behalf of Plowshares. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine adoption of resolution requires further consideration and remand to staff with direction. 2. Determine adoption of Resolution is inappropriate at this time and do not move to approve. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Yes Plowshares and HCD Larry W. DeKnoblough, Community Services Director Candace Horsley, City Manager 1. Draft Resolution APPROVED: ["-~~""'~ LD/C Candace Horsley, City Mana~ CDBGPIowsharesRes05.Asr AGENDA ITEM NO: ~ MEETING DATE: April 6, 2005 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE INTRODUCTION OF AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING VARIOUS SECTIONS OF THE UKIAH CITY CODE CONTAINED IN DIVISION 4, CHAPTER 1, ENTITLED: "WATER" In working with consultants on water rate and construction bond financing studies and the resulting Resolution including the Water Rate Schedule, decisions were made to recommend certain clarifications in the language of the City Code contained in Division 4, Chapter 1, Entitled: "Water". References to "schedule(s)" were changed to "resolution" in paragraphs 3501,3516 and 3528 in order to avoid any confusion concerning Water Rate Schedules contained within Resolutions of the City Council. A more involved change in paragraph 3504 replaced language about tenant-landlord arrangements with simpler provisions requiring a separate water meter for each residence served by the City's water system, except for multiple dwellings with specific authorization of the Director of Public Works. Staff is requesting Council's discussion and consideration of the attached ordinance. RECOMMENDED ACTION: Pass a motion to introduce the proposed ordinance by title only and separate motion to introduce the ordinance, after the City Clerk has read the ordinance title. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide Alternative direction to staff Citizens Advised: Prepared by: Coordinated with: Attachments: Mike McCann, Finance Director Candace Horsley, City Manager; David J Rapport, City Attorney 1. Description of Changes to City Code Sections 2. Proposed Ordinance Amending City Code contained in Division 4, Chapter 1, Entitled: "Water". Approved: r'~:~ ~~-.,,. Candace Horsley, C¥.~Manager Attachment # ' DESCRIPTION OF CHANGES TO CITY CODE SECTIONS [original language in brackets] revised language in italics and boldface 3501: APPLICATION NOT BINDING FOR LONGER THAN RATE PERIOD: The application is merely a written request for service and does not bind the applicant to take service for a period of time longer than that upon which the rates and minimum charge of the applicable rate [schedule] resolution are based; neither does it bind the City to service, except under reasonable conditions. (Ord. 478, § I-A, adopted 1954) §3504: USE OF WATER SERVICE: Not more than one dwelling shall be served from a single meter except in the case of multiple dwellings, such as apartment buildings or complexes, hotels, and motels, when specifically authorized by the Director of Public Works based on a determination that service from a single meter will not cause an undue burden or administrative difficulties for the City. [: A. An apartment house where the landlord furnishes the water to all apartments and is billed from one meter, and does not charge a water service to the tenant. B. A duplex house where the owner fumishes the water without charge to the tenant. C. A motel or hotel where the water is furnished at no charge to the tenant.] (Ord. 478, §l-D, adopted 1954) 3516: APPLICABLE RATE ADOPTION BY RESOLUTION: The City Council may, by resolution, adopt and from time to time modify, amend or repeal any of the rates or service charges to be levied, assessed, charged and collected for water service. Applicable rate resolutions [and charge schedules] shall be maintained in sufficient quantity for distribution to water customers upon request. (Ord. 584, § 1, adopted 1966) 3528: SERVICE CHARGES: Service charges shall be as set forth from time to time in the applicable [schedule of rate and service charges] rate resolution adopted pursuant to §3516. (Ord. 584, §2, adopted 1966) Attachment ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING VARIOUS SECTIONS OF THE UKIAH CITY CODE CONTAINED IN DIVISION 4, CHAPTER 1, ENTITLED: "WATER" The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE The following sections in Division 4, Chapter 1 of the Ukiah City Code are hereby amended to read as follows: §3500 APPLICATION FOR SERVICE: Each applicant for water service shall be required to sign on a form provided by the City, an application which will set forth: A. Date and place of application. B. Location of premises to be served. C. Date applicant will be ready for service. D. Whether the premises have been heretofore supplied with water by the City. E. Purpose for which service is to be used. F. Address to which bills are to be mailed or delivered. G. Such other information as the City may reasonably require. §3501: APPLICATION NOT BINDING FOR LONGER THAN RATE PERIOD: The application is merely a written request for service and does not bind the applicant to take service for a period of time longer than that upon which the rates and minimum charge of the applicable rate resolution are based; neither does it bind the City to service, except under reasonable conditions. §3504: JOINT USE OF WATER SERVICE: Not more than one dwelling shall be served from a single meter, except in the case of multiple dwellings, such as apartment buildings or complexes, hotels, and motels, when specifically authorized by the Director of Public Works based on a determination that service from a single meter will not cause an undue burden or administrative difficulties for the City. ORDINANCE NO. 1 AGENDA ITEM NO: Qb MEETING DATE: April 06, 2005 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING PROPOSED MID- YEAR 2004-05 BUDGET AMENDMENT. This Mid Year Budget Amendment is the opportunity to address any issues with financial implications which have occurred since the budget was adopted or are anticipated to arise throughout the remainder of the fiscal year. Modifications to the budget at this time allow for a greater degree of accuracy when actual revenues and expenditures are compared to budgeted figures at the end of the year. The amendments included in this report increase City revenues by $453,859 while increasing expenditures $334,743, resulting in a net revenue increase of $119,116. Many Funds and departments have requested increases in Fuel, Utility and Supply accounts this year, and other units will also experience smaller cost issues in this area. Oil price increases have affected petrochemical costs impacting many City operations. (continued on page 2) RECOMMENDED ACTION: Approve Mid Year Amendment to the 2004-05 Budget as specified in this report and the attached 2004-05 Mid-Year Budget Amendment- Summary of Expenditures. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine modifications to budget amendment are necessary, identify changes, and approve revised amendment. 2. Determine budqet amendment is not necessary and take no action. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Candace Horsley, City Manager Mike McCann, Director of Finance Department Directors 1. Summary of Transactions 2. Summary of Expenditures Approved: Candace Horsley, City Mar~ger Specific proposals are discussed below. The specific accounts and dollar amounts are presented in the City of Ukiah 2004-2005 Mid Year Budget Amendment Summary of Expenditures (attachment I to this report). The report is organized to discuss Revenues and then Expenditures, each section subdivided by Fund type and then department. REVENUES General Fund Sales Taxes 100.0300.320.000 Sales Tax ($888,432) 100.0300.320.002 Property Tax in-lieu of Sales Tax $888,432 The "triple-flip" sales and property tax revenues included in Proposition lA has been implemented. The in-lieu funding is now a part of our semi-annual property tax distribution issued by Mendocino County at the State's direction. Vehicle License Fees 100.0600.476.008 VLF Gap Bonds Proceeds $243,439 The sale of the City's receivable from the State, per Proposition lA was successfully priced on March 2, 2005 and will close on March 17. These bonds replace 90% of funds withheld by the State from VLF revenues in FY2003-04. 100.0600.476.000 VLF Fees (received from State) ($644,468) 100.0600.476.009 Property Tax in-lieu of VLF Fees $660,540 The "triple-flip" sales and VLF revenues included in Proposition lA has been implemented. The in-lieu funding is now a part of our semi-annual property tax distribution issued by Mendocino County at the State's direction. The State's final calculation of FY04-05 payments is increased by $16,072 from the initial estimates used in the budget. Police 100.0600.495.001 Booking Fee Reimbursement Allocation $65,000 This allocation was uncertain when the budget was adopted budget and was not include revenue from the State. The City did receive the funds in November. ,Streets 100.0800.618.000 (newacct) Street Department Services Revenue $13,000 SBC contract pays the Street Department to replacing sidewalk sections where poles are removed on a fixed $312 per-location basis. (Electric Dept. is also involved in this project to remove abandoned poles never removed by SBC at $500 per pole.) 100.3110.690.002 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 2 of 9 Day Camp 100.0700.525.114 Day Camp Revenue $16,400 Increase enrollment generated additional revenue and required additional staffing. See expenditure account 100.6114.111.000 Men's Softball 100.0700.525.115 Men's Softball League Revenue $1,000 Increased participation in the program generated extra revenue and required additional supplies. See expenditure account 100.6115.690.000. Airport 600.0800.650.001 Airport Gas and Oil Sales $ 5,000 Rising fuel costs for fuel resold to small plane pilots by the airport. See expense account 600.5001.451.000. Liability Insurance Reserve 920.0600.492.000 REMIF Refunds $93,948 On February 4, 2005 the Redwood Empire Municipal Insurance Fund (REMIF) issued a Liability Program refund to the City. Since neither the certainty nor the amount is knowable at the time of budget adoption this payment is not budgeted until received. EXPENDITURES General Fund City Mana.qer 100.1201.250.000 Contractual Services $4,463 Amendment to the contract with our consultants, Communications Support Group to finalize negotiations on the cable TV franchise agreement. City Clerk 100.1101.800.000 Machinery & Equipment $3,500 To replace failing equipment (cassette tape duplicator and recording device) for City Council meetings. Personnel 100-1601-690-002 Advertising $5,000 For a higher number of recruitments than originally anticipated, due to resignations and retirements. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 3 of 9 100-1601-250-000 Contractual Services In October the Management Unit engaged a labor negotiator. General Government Buildings Fuels and Lubricants 100.1915.450.000 Rising fuel costs. $2,500 $1,000 100.1915.690.000 Special Supplies $5,000 Requesting increase to approved janitorial and maintenance needs anticipated for the Civic Center and Annex. Much of the increase is chargeable to utility funds for their space needs. Police 100.2001.250.010 Pager Service & Maintenance $1,500 Replacement of pagers by cell phones did not happen as fast as envisioned when budget was originally submitted. 100.2001.250.012 Psychological Services $1,000 Additional services required for new employee testing 100.2001.250.013 Physical Exams $2,000 Additional services required for new employee testing 100.2001.450.000 Fuels and Lubricants $2,000 Rising fuel costs. Fire 100.2101.450.000 Fuels and Lubricants $3,500 Rising fuel costs. 100.2101.690.010 Supplies - Breathing Apparatus $450 Inadvertently left out of original FY04-05 budget. 100.2101.800.006 Radio Equip. Replacement & Mod. $2,655 To replace payment made in current year for prior year invoices. Prior year funds were returned to general fund reserve. 100.2190.690.003 Physical Exams $5,000 To replace payment made in current year for prior year exams. Prior year funds were returned to general fund reserve. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 4 of 9 Dispatch 678.2040.210.000 Rising fuel costs. Utilities $500 678.2040.250.003 Contract Services-Recorder Equip. Service $3,750 Normal service contract inadvertently left out of FY04-05 budget. Streets 100.3110.303.004 Garage Parts $2,000 Overages in this line item are due to extensive emergency repairs done to the street sweepers. 100.3110.690.002 Sand and Aggregates $13,000 Street Department wants to increase the budget for materials to replace sidewalk sections where poles are removed under an agreement with SBC. Revenue at $312 per pole is budgeted in account 100.0800.618.000 (new acct). 100.3301.250.000 Contractual Services $8,437 Added work for consultants and contractors for work related to underground contamination. City has received word that Super Fund money has been authorized for this project, up to $200,000, thus far. The timing of that reimbursement is unknown at this time. Future authorizations of additional funding are possible. 100.3301.303.003 Garage Labor $639 100.3301.303.004 Garage Parts $416 These accounts reflect work done on the forklift and the high pressure washer which had some significant parts replaced. 341.9655.111.000 Project temporary labor $1,900 This funding source (STP dl) will be used to allow various eligible projects to proceed utilizing engineering interns. 575.5801.450.000 Fuels and Lubricants $2,470 These are "stocked" fuels and lubricants. The cost is ultimately included in the cost of doing business at the garage and charged by to other City departments annually. This increase is reflective of increases all departments have seen in the area of petroleum products, and also includes a repair done to the lube hose "reels." Day Camp 100.6114.111.000 Salaries, Non-regular $16,400 Increased enrollment required additional staffing which was offset by revenue in account 100.0700.525.114. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 5 of 9 Men's Softball 100.6115.690.000 Supplies $1,000 Increased participation in the program required additional supplies and was offset by revenue in account 100.0700.525.115. Parks Division 100.6001.115.000 Salaries, Overtime and Holidays $5,000 Reduction in staffing and worker's injuries requires overtime to complete prior commitment to projects, park development and emergency callouts. 100.6001.210.000 Utilities $7,000 Increased water needed with the addition of new park installation including Depot Park, Orchard Park, and Civic Center Rose Garden. In addition, increase usage of Anton Stadium and Men's Softball Complex required increase electricity usage. 100.6001.450.000 Rising fuel costs Fuels and Lubricants $1,500 Museum 100.6150.301.000 Building Maintenance $1,500 Emergency replacement of an HVAC unit in the museum at a cost of $2,939. Failure of the system was unexpected. Information Technology 131.1965.800.000 Machinery & Equipment $2,700 Comprehensive telephone system administrator's training for MIS Coordinator so that we will be able to perform routine telephone system administration functions and reduce the need outside contract services to support the new telephone system. 100.1301.302.000 / 697.1305.302.000 Equipment Maint. $3,915 Unanticipated Increase in annual cost of 3-year hardware and software maintenance agreement on AS/400 computer system. 100.1301.800.000 / 697.1305.800.000 Machinery & Equipment $5,250 Requested to increase disk storage capacity of existing AS/400 computer system. The disk data storage system is designed to operate at no more than 65-75% of its stated storage capacity and is currently close to 95% full. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 6 of 9 697.1305.302.000 Equipment Maintenance $2,946 Meter reading software programming and hardware support for temporary manual work- around necessitated by the loss of interface connectivity between the meter reading devices, the software that runs them, and the Utility Billing software following upgrade to operation system software. Enterprise Funds Parking District 220.4601.250.000 Consultant fees for parking study. Conference Center 410.6190.210.000 Utilities Unanticipated utility usage. Airport Contractual Services $2,552 $4,000 600.5001.111.000 Non Regular Salaries $1,200 Part time positions were due a .50 per hour raise. This will impact the account approximately $1,200.00 for the remainder of the fiscal year. 600.5001.210.000 Utilities $ 9,650 The increased utility costs are likely due to the airport taking over the utility cost of 3 facilities that were previously leased. The utility services must remain on to provide for landscaping and public restrooms. All three facilities should be leased once again before the end of the fiscal year. 600.5001.450.000 Fuels and lubricants $1,200 The likely reason for an increase on this account is the rising price of auto gas. 600.5001.451.000 Aviation Fuels and Lubricants $ 5,000 Rising fuel costs for fuel resold to small plane pilots by the airport. See revenue account 600.0800.650.001. Utility Funds A number of adjustments to the utility funds budget have been requested this year by the Utility Director. The existing budget, assembled before his arrival by the interim director did not account for a number of operational needs and the proper funding levels. These adjustments reflect the changes in operating, maintenance and training procedures implemented by the new Director. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 7 of 9 Electric-Lake Mendocino, Waterways & Conservation 800.5536.630.000 Water Rights Fees Army Corps of Engineers review of the hydro plant report $5,000 800.5536.690.000 Supplies $3,500 Additionalpestand rodentcontrolservices ~rthe hydro unit ~rblack widow spiders Electric-Lake Mendocino, Distribution Plant / Station 800.3642.690.000 Supplies $13,500 Additional costs for typical supplies related to the department. Funds required to upgrade the Electrical Engineering asset management software program and to purchase additional licenses to enhance system reliability and manage the daily operation of the department. 800.3642.250.000 Contractual Services $25,000 Costs to decommission the North Street Substation. These funds will be used to insure proper handling and disposal of oil filled transformers and area remediation. Funds will also be used for Gobbi Street substation testing. Electric-Lake Mendocino, Distribution Plant / Meters 800.3650.690.000 Supplies $18,000 To support meter department equipment calibration and enhancements. Wastewater Administration & General Expense 612.3505.262.000 Memberships & Meetings To cover expenses related to memberships and meetings. various organization meetings i.e. USA and AWWA. $2,000 Increase in attendance at 612.3505.690.000 Supplies $3,000 To cover the cost of supplies for the Water Technician. These monies will cover the cost for a transit and other smaller office supplies. Budgeted numbers supporting this area were out of alignment to cover required minimal costs. Wastewater Systems Maintenance 612.3510.690.000 Supplies $21,500 Flow meters needed for detecting and locating specific I & I problems in the City and UVSD areas. Item came up after original budget was prepared. This cost will be split 50/50% between the City and UVSD. 612.3510.450.000 Rising fuel costs. Fuels and Lubricants $3,000 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 8 of 9 Wastewater Treatment Plant Operations 612.3580.214.000 Natural Gas & Propane, NCPA $8,000 With the digester out of service for cleaning and the current status of the burners in the Plant Boilers, Natural Gas has been and will continue to be the sole source of fuel until repairs are completed. 612.3580.302.000 Equipment Maintenance & Repairs $18,000 Emergency repairs to Plant Boilers. During routine maintenance it was found that the burners have become damaged over the course of ten years from high sulfide content when burning digester methane gas. 612.3580.450.000 Rising fuel costs. Fuels and Lubricants $3,000 $21,750 612.3580.690.000 Supplies Emergency digester cleaning services performed in February 2005. Water - Administration & General Expenses 820.3901.160.000 Conference and Training $2,000 Increase in certification training in the water/sewer areas has prompted the need for support with various training for Back-flow certification and other normal upgrades. 820.3901.250.000 Contractual Services $35,000 For legal support of the on-going activities involved with the water department. 820.3901.260.000 Dues and Subscriptions $3,000 To support increase in AWWA dues and Mendocino County HAZMAT Program. 820.3901.690.000 Supplies $3,000 Additional funds for water design program upgrade. Water- Meter Readin.q Expenses 820.3960.690.000 Supplies $3,000 To support internal departmental expenses relating to DMV driver tests, physicals and computer software upgrades for water design programs. Summary That concludes the proposed budget amendments identified for fiscal years 2004-2005. Staff recommends approval of the amendments as presented. 2004-05 Mid-Year Budget Amendment April 6, 2005 Page 9 of 9 City of Ukiah Fy 2004-2005 Mid-year Budget Amendment Summary of Tranactions Expenditure Revenue Net Effect 100 General Fund 100,830 354,911 254,081 131 Information Technology 14,811 (14,811) 220 Parking District 2,552 (2,552) 410 Conference Center 4,000 (4,000) 600 Airport 17,050 5,000 (12,050) 612 Wastewater Utility 80,250 (80,250) 678 Dispatch 4,250 (4,250) 800 Electric Utility 65,000 (65,000) 820 Water Utility 46,000 (46,000) 920 Liability Insurance Reserve 93,948 93,948 Totals 334,743 453,859 119,116 Midyear 2004-05 Budget Summary V2 Page 1 of 1 Net Summary Attachment 0 121 0 0 mmm Em n, 0 o o 0 0 0000000000000~00000~000000 00000000000000000000000000 ITEM NO. DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: REQUEST AUTHORIZATION FOR THE CITY MANAGER TO NEGOTIATE AND EXECUTE A PROFESSIONAL SERVICES CONTRACT WITH THE REDWOOD EMPIRE OFFICIALS ASSOCIATION FOR ADULT SPORT LEAGUE OFFICIALS AND SCOREKEEPERS. SUMMARY: The City of Ukiah's Community Services Department organizes and manages a variety of adult league sporting activities including men's slow pitch softball, men's fast pitch softball, co-ed softball and co-ed volleyball. Currently, the City hires and trains more than 25 seasonal employees each year as officials and scorekeepers to officiate league games. As the City's programs grow, it has become increasingly harder to provide adequate staffing with sufficient knowledge to officiate adult sport league activities. In order to meet program demand and maintain quality, Staff is recommending the use of the Redwood Empire Officials Association to perform officiating and scorekeeping for the City's adult softball and volleyball programs. The services are being sole sourced since there are no other professional officiating associations in the region. The Redwood Empire Officials Association currently provides similar services for school sporting activities throughout Mendocino County. Their officials and scorekeepers are independent contractors and receive extensive classroom and field training. In addition, they are required to demonstrate knowledge in rule interpretation and enforcement, proper working mechanics (positioning), and an attitude that shows the ability to communicate with players and coaches. (Continued on Page 2) RECOMMENDED ACTION: 1. Approve authorization for the City Manager to negotiate and execute a professional services contract with the Redwood Empire Officials Association for adult sport league officials and scorekeepers. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Determine that the acquisition of these services is inappropriate at this time. 2. Reject the request and remand to staff with direction. Citizen Advised: Ukiah Men's Softball Advisory Board Requested by: City Council Prepared by: Sage Sangiacomo, Community Services Supervisor Coordinated with: Candace Horsley, City Manager and Larry W. DeKnoblough, Community Services Director Attachments: 1. Proposed Agreement with Redwood Empire Officials Association APPROVED:' ~;~.~- ~~ Candace Horsley, City"~nager The proposed contract provides for an initial 2 year term with up to five (5) additional one-year term extensions upon mutual agreement of both parties. Under the contract, the Association will be responsible for recruiting, training and scheduling officials and scorekeepers for the City of Ukiah's softball and volleyball programs. In addition, the Association will be responsible for conducting regular performance evaluations to ensure a continued level professionalism. The rates specified in the contract include administration fees and reflect current market levels for these services. Funds to cover the contract for this current fiscal year will be transferred from the non-regular salary/benefit accounts of each league to corresponding contractual services accounts. No additional funds will need to be allocated since the contract rates are equivalent to the funds budgeted for employee salaries, benefits, and supplies. There will continue to be no net fiscal impact to the General Fund as all costs for these services will be covered by revenue received from league fees paid by sponsors and players. Outsourcing these services will have a positive time saving impact for Community Services, Personnel and Payroll staff. Staff urges approval of the request so that the services can be put in place for our summer programs which start in May. 2 ~l~achme~ # Exhibit A SCOPE OF WORK ADULT SPORT OFFICIALS AND SCOREKEEPERS Responsibilities of the Redwood Empire Officials Association, Ltd. 1. Provide quality, experienced and certified officials and scorekeepers to officiate the City of Ukiah's Adult Volleyball and Softball Leagues. 2. Recruit and train a sufficient number of officials and scorekeepers to meet the demand for services outlined in the agreement. 3. Must maintain membership in the Amateur Softball Association. 4. For softball, two umpires and one scorekeeper per game. If staffing limitation are as such, one umpire and one scorekeeper per game is acceptable. 5. For volleyball, provide one official per game. 6. Submit a list of scheduled officials and scorekeepers with contact information two weeks prior to play. 7. Notify the City of any changes to the submitted staffing schedule. 8. Evaluate officials and scorekeepers. 9. The Association must maintain records of performance evaluations and training content and attendance. Upon request, the Association must make training records available to the City of Ukiah. In addition, the Association must provide verification, upon request, that performance evaluations have been completed. 10. Report any significant achievements or problems which could have a potential effect on schedule or costs. 11. Ensure the following standards and duties for each position: Softball Umpire Duties: a Organizing and supervising softball games b Reviewing Amateur Softball Association and league rules and interpreting/applying all rules c For any accident requiring immediate medical attention, summon more advance medical personnel by dialing 911 or 463-6262. d Complete and submit City of Ukiah Incident/Accident forms for any minor or major incident or accident. e Notify City of Ukiah Community Services Department of any safety issues, incidents, or accidents. f Pick up bases and other related equipment after the last schedule game of the day and return to designated storage facility/location. g Performing other related duties as directed by the City of Ukiah Community Services Department. Ability to: a Communicate in a clear and concise manner b Run into the proper position to make a call c Remain posed in pressure situations d Use good judgment in game situations e Make consistent calls f Think and act clearly, quickly and accurately in emergencies Scope of Work Page 1 of 4 g Lift & carry heavy objects; run forward, backward and laterally. Knowledge of: a. Amateur Softball Association and City of Ukiah Softball League rules. b. Proper officiating mechanics and hand signals. c. Practices and techniques to achieve favorable public relations and appearance of a positive image. Requirements: a. Must be at least 21 years of age. b. Must be a member of the Amateur Softball Association. c. All Sports Officials have specific physical requirements necessary to perform the essential functions of the job including: standing, occasional lifting and carrying various objects, overhead and forward reaching, stooping, balancing, grasping, fine manipulation, eye/hand coordination and cervical range of motion. Must provide and wear appropriate apparel and safety equipment as required by the Amateur Softball Association. Softball Scorekeeper Duties: a. Maintain records, scoreboards, and scorebooks for each game b. Assist umpires with organizing and supervising games c. Collect and deposit individual player fee and forfeit fees. d. Submit score sheets at the conclusion of each day. e. Ensure that all players are registered with the league. f. Reviewing Amateur Softball Association and league rules and interpreting/applying all rules g. For any accident requiring immediate medical attention, summon more advance medical personnel by dialing 911 or 463-6262. h. Complete and submit City of Ukiah IncidentJAccident forms for any minor or major incident or accident. i. Notify City of Ukiah Community Services Department of any safety issues, incidents, or accidents. j. Pick up related equipment after the last schedule game of the day and return to designated storage facility/location. k. Performing other related duties as directed by the City of Ukiah Community Services Department. Ability to: a. Communicate in a clear and concise manner b. Create and maintain written records c. Remain posed in pressure situations d. Use good judgment in game situations e. Think and act clearly, quickly and accurately in emergencies f. Lift & carry heavy objects such as table and chairs Knowledge of: a. Amateur Softball Association and City of Ukiah Softball League rules. b. Proper officiating methods and hand signals. c. Practices and techniques to achieve favorable public relations and appearance of a positive image. Requirements: a. Must be at least 18 years of age. Scope of Work Page 2 of 4 b. All Sports Officials have specific physical requirements necessary to perform the essential functions of the job including: standing, occasional lifting and carrying various objects, overhead and forward reaching, stooping, balancing, grasping, fine manipulation, eye/hand coordination and cervical range of motion. Volleyball Official Duties: a. Organizing and supervising volleyball games b. Reviewing league rules and interpreting/applying all rules c. Complete and submit City of Ukiah Volleyball score sheets d. For any accident requiring immediate medical attention, summon more advance medical personnel by dialing 911 or 463-6262. e. Complete and submit City of Ukiah Incident/Accident forms for any minor or major incident or accident. f. Notify City of Ukiah Community Services Department of any safety issues, incidents, or accidents. g. Set up equipment including poles and net, as necessary. h. Pick up equipment after the last schedule game of the day and return to designated storage facility/location. i. Performing other related duties as directed by the City of Ukiah Community Services Department. Ability to: a. Communicate in a clear and concise manner b. Remain posed in pressure situations c. Use good judgment in game situations d. Make consistent calls e. Think and act clearly, quickly and accurately in emergencies f. Lift & carry heavy objects Knowledge of: a. City of Ukiah Volleyball League rules. b. Proper officiating mechanics and hand signals. c. Practices and techniques to achieve favorable public relations and appearance of a positive image. Requirements: a. Must be at least 21 years of age. b. All Sports Officials have specific physical requirements necessary to perform the essential functions of the job including: standing, occasional lifting and carrying various objects, overhead and forward reaching, stooping, balancing, grasping, fine manipulation, eye/hand coordination and cervical range of motion. c. Must provide and wear appropriate volleyball official apparel. Softball Scorekeeper Duties: I. Maintain records, scoreboards, and scorebooks for each game m. Assist umpires with organizing and supervising games n. Collect and deposit individual player fee and forfeit fees. o. Submit score sheets at the conclusion of each day. p. Ensure that all players are registered with the league. Scope of Work Page 3 of 4 q. Reviewing Amateur Softball Association and league rules and interpreting/applying all rules r. For any accident requiring immediate medical attention, summon more advance medical personnel by dialing 911 or 463-6262. s. Complete and submit City of Ukiah Incident/Accident forms for any minor or major incident or accident. t. Notify City of Ukiah Community Services Department of any safety issues, incidents, or accidents. u. Pick up related equipment after the last schedule game of the day and return to designated storage facility/location. v. Performing other related duties as directed by the City of Ukiah Community Services Department. Ability to: g. Communicate in a clear and concise manner h. Create and maintain written records i. Remain posed in pressure situations j. Use good judgment in game situations k. Think and act clearly, quickly and accurately in emergencies I. Lift & carry heavy objects such as table and chairs Knowledge of: a. Amateur Softball Association and City of Ukiah Softball League rules. d. Proper officiating methods and hand signals. e. Practices and techniques to achieve favorable public relations and appearance of a positive image. Requirements: a. Must be at least 18 years of age. b. All Sports Officials have specific physical requirements necessary to perform the essential functions of the job including: standing, occasional lifting and carrying various objects, overhead and forward reaching, stooping, balancing, grasping, fine manipulation, eye/hand coordination and cervical range of motion. Scope of Work Page 4 of 4 AGREEMENT FOR PROFESSIONAL SPORTS OFFICIATING AND SCOREKEEPING SERVICES THIS AGREEMENT entered in Ukiah, California on ,2005 ("Effective Date"), between the City of Ukiah, a general law city ("CITY") and the Redwood Empire Officials Association Ltd., a , ("CONTRACTOR"), collectively, "the parties." RECITALS 1. CITY Community Services Department desires to contract with a qualified firm to provide trained officials and scorekeepers at softball and volleyball games conducted by the CITY Community Services Department with the scope of services described on the attached Exhibit 2. CONTRACTOR represents to CITY that it is an association of trained officials and scorekeepers qualified to officiate and keep score at adult softball and volleyball games. AGREEMENTS In consideration of the above recitals and the following terms and conditions, the parties agree as follows: TERM The Term of this agreement is for a period of two (2) years commencing on the Effective Date. CITY and CONTRACTOR may, upon mutual agreement of the parties, extend this Agreement for up to five (5) additional one-year terms. SCOPE OF SERVICE The CONTRACTOR shall be required to provide the services described in Exhibit "A." ENTIRE AGREEMENT: Exhibit "A" - "Scope of Work Sport Officials and Scorekeepers" is incorporated into this Agreement. In the event of a conflict between the terms of this Agreement and Exhibit A, the terms of this Agreement shall control. This Agreement, including Exhibit A, constitutes the entire agreement between the parties. STANDARD OF PERFORMANCE Contractor agrees to provide a high standard of performance in the execution of all obligations and duties as herein provided. The City reserves the right through the office of the City Manager to instruct the CONTRACTOR as to the standard of performance when deemed necessary. COMPENSATION As compensation for all services of CONTRACTOR in performance of this Agreement, CITY shall pay CONTRACTOR as follows: 1. Slow Pitch Softball Umpire Fast Pitch Softball Umpire Slow Pitch Softball Scorekeeper Fast Pitch Softball Scorekeeper Volleyball Official $25.00 per game $35.00 per game $13.00 per game $15.00 per game $18.00 per game 2. Fee Adjustments: a. If games are canceled by the City of Ukiah with less than three hours notification to the CONTRACTOR for reasons other than inclement weather or an Act of God, then payment will be made in full for all games scheduled that day. If notification is at least three hours prior to the scheduled start time of the first game, no payment will be made for canceled games. b. If a game is canceled by the game officials due to inclement weather, unsafe conditions, or Act of God, full payment will be made for that game. Subsequent games will be rescheduled by the CITY and will not be paid for until services are rendered for those games. c. If a game protest is upheld due to official's error, no game fee will be paid for the protested game. d. If an official is more than 15 minutes late for an assigned game, the CITY will pay at a rate of 75% of the game fee. e. When there is only one umpire available for softball, the CITY will pay at a rate of 150% of the game fee. f. All officials and scorekeepers must be named on the game score sheet for each game. Payments to the CONTRACTOR will be based on the score sheets. g. CITY agrees to work with the CONTRACTOR in partnership to recruit more officials and scorekeepers for the softball and volleyball programs. The CITY will assist with press releases to local media announcing recruitment for such officials and scorekeepers when directed by the CONTRACTOR. The CITY will also provide meeting room space at no cost for the CONTRACTOR to train officials and scorekeepers for use in accordance with this agreement. h. For purposes of this paragraph 2, notice shall be given by telephone or fax to the numbers stated in paragraph 8, or an alternate number designated by a party in a written notice to the other party. The notice shall be deemed given on the date and time when the call is placed. RELATIONSHIP OF PARTIES CONTRACTOR and its members, officers, agents and employees, in performing under this Agreement, are independent contractors and have control over the work and the manner in which it is performed. They are free to contract for similar services to be performed for other employers during the term of this Agreement. CONTRACTOR, its members, officers, agents and employees are not employees or agents of the CITY and not entitled to sick leave, vacation, health and welfare benefits, retirement benefits, worker's compensation, or any other leave or benefit for employees of the City. PAYMENT TO THE CONTRACTOR The CONTRACTOR shall submit an invoice to the City of Ukiah, Community Services Depadment, 411 West Clay, Ukiah, CA, 95482. Invoices should be submitted every two weeks during a league season for which services are schedule in accordance with this agreement. Invoices submitted by Monday, 10am will be paid at the next scheduled check run. In the event that a submittal Monday fails on a City holiday, invoices shall be submitted by Tuesday, 9am. If a check run is not scheduled for a submittal week, the CONTRACTOR shall be notified and payment will be made at the first available check run. Notwithstanding the above provisions of this paragraph 7, no payment will be issued to the CONTRACTOR before all invoices have been reviewed and approved for payment by the City of Ukiah Community Services Department. NOTICES 2 Except as otherwise specifically provided in this Agreement, any notice, submittal or communication required or permitted to be served on a pady hereto, it shall be deemed to have been given when personally delivered, or when deposited in the United Sates mail with proper first class postage affixed thereto and addressed as follows: CITY: Sage Sangiacomo Community Services Supervisor 411 West Clay Street Ukiah, CA 95482 (707) 463-6237 Fax (707) 463-6740 CONTRACTOR: Wayne Ouellette Redwood Empire Officials Association Ltd. P.O. Box 867 Ukiah, CA 95482 (707) 462-8450 Fax (707) 462-8450 10. 11. 12. MODIFICATION This agreement shall not be modified, except in writing, by contract amendment, executed by all parties. Oral change orders are not permitted. No change in this contract shall be made unless the City of Ukiah gives its prior written approval. The CONTRACTOR shall be liable for all costs resulting from, and/or for satisfactorily correcting, any specification change not properly ordered by written modification to the contract and signed by the City of Ukiah. ADDITIONAL SERVICES During the contractual period covered by this Agreement, CITY may request CONTRACTOR to provide services in addition to the services provided hereunder. CONTRACTOR may, at its option, agree to provide such additional services upon terms and conditions mutually agreed upon in writing by CITY and CONTRACTOR. CONTRACTING OFFICER REPRESENTATIVE The Contracting Officer's Representative (COR) provides routine communication and guidance to the contractor. The COR is also delegated authority to increase or decrease services in the scope of work of this agreement though the use of administrative change orders if such change does not increase the encumbrance or total contract funding of this agreement. The COR is not authorized to increase encumbrance or total contract funding, nor is the COR authorized to increase the scope of work. The COR for this agreement is: Gina Greco Recreation Supervisor 411 West Clay Ukiah, CA 95482 (707) 463-6237 ADMINISTRATIVE CHANGE ORDER: A change order to the contract is a change which does not change the scope of work or intent of the contract as awarded by the original signature authority. Administrative change orders will be limited to minor changes in contract work assignments. Change orders which result in additional cost shall require the approval of the City Purchasing Agent or appropriate award authority as defined under City policy. Change orders which do not result in additional contract cost can be authorized by the Contracting Officer Representative (COR). 3 13. 14. 15. TERMINATION OF CONTRACT FOR DEFAULT If at any time, in the opinion of the City Manager, upon recommendation of the Community Services Department; 1) CONTRACTOR fails to conform to the requirements of this contract; 2) CONTRACTOR seeks relief under any law for the benefit of insolvents or is adjudicated bankrupt; 3) any legal proceedings are commenced against CONTRACTOR which may interfere with the performance of the contract; or 4) CONTRACTOR has failed to supply an adequate working force, or material of proper quality, or has failed in any other respect to prosecute the work with the diligence and force specified and intended in and by the terms of the contract, notice thereof in writing may be served upon him, and should he neglect to refuse to provide means for a satisfactory compliance with the contract as directed by the City of Ukiah Community Services Department within fifteen (15) days from the time specified in such notice the City Manager in any such case shall have the right and power, at its option and without prejudice to any other right it may have, to terminate the contract. Any cost arising termination of this Agreement by City in accordance with this paragraph will be charged against the CONTRACTOR and his sureties, who will be liable thereof. In the event of such termination, all monies due the CONTRACTOR or retained under terms of the contract shall be forfeited to the City, but such forfeiture will not release the CONTRACTOR or his sureties from liability for failure to fulfill the contract. TERMINATION FOR CONVENIENCE A. This Agreement may be terminated by either party by giving fifteen (15) days notice to the other in writing of its intent to terminate the Agreement. B. Upon such termination, CONTRACTOR shall submit to CITY an itemized statement of services performed to the date of termination. ASSIGNMENT AND SUBCONTRACTING The CONTRACTOR shall not assign or subcontract the work, or any part thereof, without the prior written consent of the CITY, nor shall he assign, by power of attorney or otherwise, any of the money payable under this contract unless written consent of the CITY has been obtained. No right under this contract, nor claim for money due or to become due hereunder shall be asserted against the CITY, or persons acting for the CITY, by reason of any so-called assignment of this contract or any part thereof, unless such assignment has been authorized by the written consent of the CITY. In case the CONTRACTOR is permitted to assign monies due or to become due under this contract, the instrument of assignment shall contain a clause subordinating the claim of the assignee to all prior liens for services rendered or materials supplied for the performance of work. Should any subcontractor fail to perform in a satisfactory manner the work undertaken by him, his subcontract shall be immediately terminated by the CONTRACTOR upon notice from the CITY. The CONTRACTOR shall be fully responsible and accountable to the CITY for the acts and omissions of his subcontractors, and of persons directly or indirectly employed by them, as he is for the acts and omissions of persons directly employed by him. Nothing contained in this contract shall create any contractual relation between any subcontract and the CITY. The CONTRACTOR shall not, without the consent of the City, either: 1) Substitute any person as subcontractor in place of the subcontractor designated in the original proposal; 2) Permit any subcontract to be voluntarily assigned or transferred or allow the work to be performed by anyone other than the original subcontractor listed in the proposal; or 4 16. 17. 3) Sublet or subcontract any portion of the work in excess of one-half of one percent (.5%) of the total proposal as to which the contractor's original proposal did not designate a subcontractor. INDEMNIFY AND HOLD HARMLESS AGREEMENT CONTRACTOR agrees to accept responsibility for loss or damage to any person or entity, and to defend, indemnify, hold harmless and release the CITY, its officers, and employees, from actions, claims, damages, disabilities or the cost of litigation that are asserted by any person or entity to the extent arising out of the negligent acts or omissions or willful misconduct in the performance by the CONTRACTOR hereunder, whether or not there is concurrent negligence on the part of the CITY, but excluding liability due to the active negligence or willful misconduct of the CITY. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages to compensation payable to or for CONTRACTOR or its agents, under workers' compensation acts, disability benefits acts or other employees' benefits acts. CONTRACTOR shall be liable to CITY for any loss of or damage to City property arising from contractor's negligence or willful misconduct. As to events which occur during CONTRACTOR's performance of this Agreement, City shall hold CONTRACTOR harmless from and defend CONTRACTOR against all claims, liability, damage, or loss arising out of any injury or death of any person or damage to or destruction of property attributable to the negligent or willfully wrongful act or omission of City or its officers and employees, where the injury, death or damage is caused by the sole and active negligence or willful misconduct of City or City's employees. INSURANCE Without limiting CONTRACTOR's obligations arising under Paragraph 16, above, CONTRACTOR shall not begin work under this Contract until it procures and maintains for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with its performance under this Agreement. A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office ("ISO) Commercial General Liability Coverage Form No. CG0001 1185. 2. ISO Form No. CA 0001 (Ed. 1/78) covering Automobile Liability, Code 1 "any auto" or Code 8, 9 if no owned autos and endorsement CA 0025. In the alternative, any independent contractor working for CONTRACTOR who provides services under this Agreement may satisfy this requirement by providing evidence satisfactory to City that the independent contractor has automobile liability insurance as required by law. 3. Worker's Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. Worker's compensation insurance is not required if CONTRACTOR provides evidence satisfactory to City that it has no employees. 5 B. Minimum Limits of Insurance CONTRACTOR shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If Commemial General Liability Insurance or other form with a general aggregate limit is used, the general aggregate limit shall apply separately to the work performed under this Agreement, or the aggregate limit shall be twice the prescribed per occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Worker's Compensation and Employers Liability: Worker's compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. C. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to the City, its officers, officials, employees and volunteers; or the CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. D. Other Insurance Provisions The policies are to contain, or be endorsed to contain, the following previsions: 1. General Liability and Automobile Liability Coverages. a. The City, it officers, officials, employees and volunteers are to be covered as additional insureds as respects; liability arising out of activities performed by or on behalf of the CONTRACTOR, products and completed operations of the CONTRACTOR, premises owned, occupied or used by the CONTRACTOR, or automobiles owned, hired or borrowed by the CONTRACTOR. The coverage shall contain no special limitations on the scope-of-protection afforded to the City, its officers, officials, employees or volunteers. b. The CONTRACTOR's insurance coverage shall be primary insurance as respects to the City, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees or volunteers shall be excess of the CONTRACTOR's insurance and shall not contribute with it. c. Any failure to comply with reporting previsions of the policies shall not affect coverage provided to the City, its officers, officials, employees or volunteers. d. The CONTRACTOR's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Worker's Compensation and Employers Liability Coverage The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees and volunteers for losses arising from CONTRACTOR's performance of the work, pursuant to this Agreement. 3. All Coverages Each Insurance policy required by this clause (except auto insurance of independent contractors providing services under this Agreement) shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. E. Acceptability of Insurers Insurance is to be placed with insurers with a Best's rating of no less than A:VII and who are admitted insurers in the State of California. F. Verification of Coverage CONTRACTOR shall furnish the City with certificates of Insurance and with original Endorsements effecting coverage required by this Agreement. The Certificates and Endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The Certificates and Endorsements are to be on forms provided or approved by the City. Where by statute, the City's Workers' Compensation - related forms cannot be used, equivalent forms approved by the Insurance Commissioner are to be substituted. All Certificates and Endorsements are to be received and approved by the City before CONTRACTOR begins the work of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. If CONTRACTOR fails to provide the coverages required herein, the City shall have the right, but not the obligation, to purchase any or all of them. In that event, the cost of insurance becomes part of the compensation due the contractor after notice to CONTRACTOR that City has paid the premium. G. Subcontractors If CONTRACTOR uses subcontractors or subcontractors, it shall cover them under its polices or require them to separately comply with the insurance requirements set forth in this Paragraph 17. 18. 19. 20. SUCCESSORS AND ASSIGNS CITY and CONTRACTOR each binds itself, its partners, successors, legal representatives and assigns to the other party to this Agreement and to the partners, successors, legal representatives and assigns of such other party in respect of all promises and agreements contained herein. LEGAL REQUIREMENTS AND PERMITS The CONTRACTOR agrees to fully comply with all local, City, State and Federal laws regulations and ordinances governing performance of contractual services required hereunder, and it will be the responsibility of the CONTRACTOR to obtain any and all necessary licenses, permits and/or clearances. WAIVER OF BREACH. One or more waivers of a breach of any covenant, term or condition of this Agreement 7 by either party shall not be construed by the other pady as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval of either party to or of any act by the other party of a nature requiring consent or approval shall not be deemed to waive or render unnecessary consent to or approval of any subsequent similar act. 21. TIME IS OF THE ESSENCE Time is of the essence in the performance of each provision of this Agreement. 22. LEGALITY If any provisions of this agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 23. DUPLICATE ORIGINALS This Agreement may be executed in one or more duplicate originals bearing the original signature of both parties and when so executed any such duplicate original shall be admissible as proof of the existence and terms of the Agreement between the parties. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the Effective Date. City of Ukiah Redwood Empire Officials Association Ltd. City Manager Attest: City Clerk Approved As To Form: City Attorney 8 ITEM NO: /~b DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH OPPOSING SUSPENSION OF PROPOSITION 42 FUNDING Mendocino Council of Government (MCOG) Executive Director has recently provided to the MCOG Board, information from the California Transportation Commission's 2004 Annual Report to the California Legislature. Attachment 1 is a summary of legislative decisions which was excerpted from the annual report over the last few years that have negatively impacted transportation throughout the state. In January, the Governor's announced his plan for dealing with California's continuing multi- billion dollar budget deficit. His plan involves suspension of Prop 42 funding which deals another $1.3 billion blow to state transportation funds for fiscal year 2005-2006. Locally, the City of Ukiah lost approximately $59,000 in funding in FY 2003/04, is losing another $63,000 this year, and stands to lose another $68,000 in rehabilitation funding in FY 2005/06 if Proposition 42 is again suspended. Furthermore, Proposition 42 suspensions to date have rendered $1.8 million unavailable to the Mendocino Council of Governments for programming State Transpodation Improvement Program projects in Mendocino County, with an additional $1.2 million becoming unavailable if Proposition 42 is suspended in FY 2005/06. The attached Resolution (Attachment 2) is offered for the Council's consideration. It is intended to send a message to state legislators that the transportation community desperately needs funding and that the practice of balancing the state budget with money the electorate said should go to transportation should be terminated. MCOG, Mendocino County, and the other three incorporated cities have already passed similar resolutions. These resolutions will be forwarded to several local state legislators as well as to the chairs of the transportation committees of both houses, as part of a statewide effort which has been mounted since the California Transportation Foundation's Transportation Forum held March 2nd. Transportation officials hold out hope for a successful campaign, after hearing that State revenues are expected to exceed earlier projections by $2-3 billion for FY 2004-2005. Staff is recommending that Resolution Opposing Suspension of Proposition 42 Funding be adopted as written. RECOMMENDED ACTION: Adopt Resolution of the City Council of the City of Ukiah Opposing Suspension of Proposition 42 Funding. ALTERNATIVE ACTION: Choose not to approve the resolution and provide direction to Staff. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Phil Dow, Executive Director of MCOG Diana Steele, Director of Public Works/City Engineer Candace Horsley, City Manager 1. Excerpts of CTC 2004 Annual Report to California Legislature 2. Proposed Resolution for Adoption Approved: Candace Horsley, City Manag~ Attachment ~ ~ The following was excerpted from the California Transportation Commission's 2004 Annual Report to the California Legislature. The entire 132-page report can be viewed at the link below. http://www.~atc.ca.q~~/rep~rts/2~~4Rep~r~s/2~~4%2~Annua~%2~Rep~rt%2~Fina~%2~with%2~Links.pdf ISSUES FOR 2005 Trends and Outlook for State Transportation Financing California's transportation program is in crisis and on the verge of collapse. Where the state once had a transportation program funded almost exclusively from user fees protected by the California Constitution (gasoline taxes and weight fees), we now have a program dependent primarily on motor fuel sales taxes, without constitutional protection. For each of the last 4 years, transportation funds have been taken to close the General Fund deficit. For the last 2 years, the California Transportation Commission has been forced to stop making new allocations to projects from all three of the major components of the state transportation program, the State Transportation Improvement Program (STIP), the State Highway Operation and Protection Program (SHOPP), and the Traffic Congestion Relief Program (TCRP). Cities and counties have not been receiving the state subventions committed to them in statute for local road rehabilitation and repair and state transit assistance. In all, these programs account for about $2.6 billion in state and local transportation projects that should be ready to go to construction this year but will not for lack of funding. Reduced spending on pre-construction work means the delay of billions more in future years. This represents a loss to California's economy in terms of reduced productivity, increased congestion, increased user costs, and increased system operating and maintenance costs. Applying standard economic multipliers, the work not going to construction this year alone will result in the loss of well over 50,000 jobs Some projects in the STIP and the TCRP have been kept on schedule by means of borrowing, either through the advancement of funds by local agencies in return for the promise of later repayment or through the Commission's issuance of bonds against future federal transportation fund apportionments. The capacity for such borrowing, however, is reaching its limit as current transportation funding is cut off and future funding is placed in greater doubt. Meanwhile, the backlog of pavement and other rehabilitation needs on the State highway system is growing, and the cost to meet those needs is increasing as more and more work is deferred. The Transportation Program in Crisis The STIP and the SHOPP constitute the major part of the State's transportation program. Together, they constitute the planned commitments of state and federal transportation dollars. They are approved by the Commission and developed in cooperation with the Department of Transportation (Caltrans) and the state's regional transportation planning agencies. The STIP consists of improvements to the State highway system, the intercity rail system, and other road and transit facilities of regional significance. The SHOPP is the program for rehabilitation and safety work on the State highway system that does not involve increases in roadway capacity. Since June 2003, the Commission has been forced to cease all funding allocations for new STIP projects and to severely restrict SHOPP allocations. Needed improvements are being delayed, and the rehabilitation backlog is growing, only increasing ultimate costs. By June 2004, $800 million in STIP and SHOPP projects were either ready to go and placed on the shelf or could have been ready except for the lack of funding. By June 2005, that figure is expected to climb from $800 million to $1.3 billion. These figures do not take into account other projects that could have been ready in 2004-05, but were reprogrammed in the 2004 STIP. The 2004 STIP, the five-year plan to guide program allocations from 2004-05 through 2008-09, delayed $5.4 billion in projects by 2 years or more. Over $1.1 billion in scheduled STIP projects were able to proceed this year only by borrowing against future STIP funds. About $490 million of that borrowing is the advancement of funding by local agencies, with a STIP commitment of repayment at a later date. Another $658 million is borrowing through State bonding against future federal transportation funding apportionments. The Traffic Congestion Relief Program (TCRP), the other major element of the state transportation program, consists of $4.9 billion designated for 141 specific projects in the Traffic Congestion Relief Act of 2000. By law, the program was funded through the Traffic Congestion Relief Fund (TCRF), which received $1.6 billion from the General Fund and gasoline sales tax in 2000-01 and was scheduled to receive a series of annual transfers from gasoline sales tax revenues over five years. The Commission allocates funds to the specific projects as they are ready. Since the program's inception, TCRF funds have been borrowed back for the General Fund and subsequent sales tax transfers have been postponed or suspended. Through 2002, the TCRP was kept intact only by using funds borrowed from the STIP. Throughout 2003 and 2004, the Commission could make no new project allocations at all. By the end of 2004, the Commission had received $314 million in TCRP allocation requests (including $132 million for construction projects) that are now being held back for lack of funding. Caltrans and local agencies report that $1.7 billion in TCRP projects (including $900 million for construction) will be ready to go by June 2005. The Traffic Congestion Relief Act of 2000 also created a program of local subventions to cities and counties for local road rehabilitation and repair. The TCR subvention program was supported in 2000-01 by a $400 million transfer from the General Fund and was to be supported in later years by a portion of the sales tax on gasoline. For 2001-02 and2002-03, however, the Legislature postponed the sales tax transfers and instead funded the program with $350 million in transfers from the State Highway Account that would otherwise have supported the STIP. For 2003-04 and2004-05, trailer bills to the Budget Act suspended the TCR subvention altogether, eliminating $392 million for local road rehabilitation and repair. Revenues Lost The near elimination of the state transportation construction program over the past two years is unprecedented, the result of a basic structural problem in California's system of transportation financing. Until a few years ago, the state's transportation programs relied almost exclusively on user fees in the form of gasoline taxes and commercial vehicle weight fees. Article XIX of the California Constitution built a firewall around these revenues, protecting them from diversion for other purposes, in general, this provided a reliable basis for developing multiyear programs, and it could reasonably be assumed that funding would be available as projects were delivered. To be sure, the program went through cycles as funding fell behind delivery or delivery behind funding. The buying power of the revenues declined over time as cars became more fuel efficient, project costs increased with inflation, and gasoline taxes were seldom increased to 2 keep pace. Sometimes earthquakes and other natural disasters diverted dollars for unplanned work. Changes in federal law or policy might also bring about unexpected changes. To some extent, these factors are still at work. Recent cost increases reported for the toll bridge seismic retrofit program, particularly for the San Francisco-Oakland Bay Bridge, could lead to the loss of future funding from the STIP, depending on the funding plan approved by the Legislature. Over the last two years, expectations for future federal transportation funding have declined and risen and still remain in doubt. The last six-year federal transportation authorization act expired in September 2003, and the latest temporary extension continues prior funding levels through May 2005. On the other hand, recent federal legislation eliminating the special tax treatment of ethanol-blended gasoline promises the end of another source of revenue loss by 2006. As important as the changes and uncertainties in federal revenue may be, their effects on the state transportation program pale by comparison to the impacts of state budget actions in recent years. The problems began soon after the enactment of the Traffic Congestion Relief Act of 2000 (AB 2928). That act not only made promises and commitments that have not been kept, it made the entire state transportation program subject to the vagaries of the annual budget process. The constitutional firewall that had protected transportation funding for decades vanished over the next 3 years. Transportation projects usually take several years to bring to fruition. Planning and environmental studies, design work, permits and mitigation strategies, and right-of-way acquisition all must precede construction. An effective transportation program cannot survive when resources are suddenly advanced and withdrawn on an annual basis. Further compounding the instability inherent in the TCRP was that many of the 141 designated projects were not vetted through the transportation planning and programming process. Some projects were not deliverable within the original 6-year schedule designated for the program. Many projects were not fully funded, leading either to a skewing of priorities or the wasting of resources. Though some were of high priority, others were not part of any plan suppoded at either the state or regional level. Traffic Congestion Relief Act of 2000 The Traffic Congestion Relief (TCR) Act of 2000 committed $4.9 billion to the 141 designated projects of the Traffic Congestion Relief Program (TCRP), with funding originally to be provided through 2005-06, later extended to 2007-08. All $4.9 billion is funded through the Traffic Congestion Relief Fund (TCRF) created for that purpose. The TCR Act provided that the TCRF would be funded with: · $1.5 billion from the General Fund in 2000-01 (including $400 million appropriated outside the TCRP for the TCR local road maintenance and repair subvention program). · $500 million from the State sales tax on gasoline in 2000-01. · $3.314 billion to be transferred from the Transportation Investment Fund (TIF), at the rate of $678 million per year for 5 years, originally from 2001-02 through2005-06 and now from 2003- 04 through 2007~08. 3 The TCR Act created the TIF to receive the revenues from the sales tax on gasoline and provided that each quarter, a fixed amount would be transferred to the TCRF, with the balance to be divided by formula, with 40% to cities and counties for local road maintenance and repairs, 40% to the STIP, and 20% to the Public Transportation Account (PTA). Of the 20% for the PTA, half would augment the State Transit Assistance (STA) program, which is distributed by formula to the state's transit operators, and half would augment STIP revenues. The TIF and the transfers to the TCRF were originally to sunset in June 2006. The First Year: 2001-02 Budget and AB 438 The erosion of this major new source of transportation funding began almost immediately. AB 438, the transportation trailer bill to the 2001-02 Budget Act, borrowed or delayed over $4.6 billion in transportation funds, including $1.16 billion in STIP funding either borrowed directly or used to backfill for TCR Act commitments. The General Fund was in trouble, and the stated intent was to borrow the transportation funds without delaying transportation projects. At the time, the three transportation funds (SHA, PTA, and TCRF) held cash balances that were more than enough to meet the short-term cash needs of active STIP and TCRP projects. The TCRP had been jump started in 2000-01 with $1.6 billion, even though most TCRP expenditures were not expected for several years. For the STIP, program funding had been running ahead of program delivery since 1998. That was primarily because of circumstances peculiar to the 1998 and 2000 STIPs that made new funding capacity available earlier than it could be expended. For these reasons, the initial General Fund borrowing could be accommodated without delaying current STIP or TCRP projects. The borrowing, however, did mean that projects added in the 2002 STIP would be delayed by several years. AB 438 accomplished its borrowing through the following specific actions :. It suspended implementation of the TIF for two years so that the state sales tax on gasoline would be dedicated to transportation from 2003-04 through 2007-08 rather than from 2001-02 through 2005-06. This retained about $2.35 billion for the General Fund in 2001-02 and 2002- 03. · It continued funding for the TCR local road subvention program for 2001-02 and 2002-03, funding it with$350 million from the SHA. The SHA was to be repaid by receiving the 80% rather than 40% of the TIF balance in 2006-07 and 2007-08. This meant that the TCR subvention program would not be funded in the latter two years. · It authorized money in the TCRF to be loaned to the General Fund through the annual budget act, with loans to be repaid by June 2006. The 2001-02 Budget transferred $238 million. The 2002-03 Budget transferred another $1.145 billion, for a total of $1.383 billion. · To backfill for the TCRP, it authorized loans of $275 million from the PTA and $180 million from the SHA to the TCRF, with SHA loans to be repaid by June 2007 and PTA loans by June 2008. The 2001-02 Budget implemented loans of $180 million from the PTA and $180 million from the SHA. The 2002-03 Budget added the other $95 million from the PTA 4 The Second Year: 2002-03 Budget and SB 1834 The Commission took into account all of the transportation fund borrowing authorized by the AB 438 TCR refinancing package when it adopted the 2002 STIP fund estimate. However, SB 1834, the transportation trailer bill for the 2002-03 Budget Act, authorized the borrowing of another $647 million to the fill the General Fund deficit, again with the stated intent of doing so without delaying projects. Because SB 1834 and the Budget had not taken the 2002 STIP (adopted in April 2002) into account, this new borrowing meant new project delays, despite the statement of intent. Among SB 1834's specific provisions: · It increased the authority to make budget loans from the SHA to the TCRF from $180 million to $654 million. The $474 million increase was subject to repayment from the General Fund, with interest, by June 2007. The $474 million was included in the 2002-03 Budget. · It authorized the Director of Finance, outside the budget, to order a direct loan of $173 million from the SHA to the General Fund, under the terms of Adicle XIX of the California Constitution. A loan in this amount was made in 2002-03 and repaid in 2003-04. Proposition 42 Proposition 42, a legislative constitutional amendment approved by 69 percent of the voters in March 2002, removed the June 2008 sunset date for the TIF and permanently dedicated the revenues from the sales tax on gasoline to the purposes already identified in statute. The prior statute, including the TCRP, was continued threugh2007-08. Then, beginning with 2008-09, no further funding would be transferred to the TCRF for the TCRP designated projects, and all TIF revenues would be divided by formula, with 40% for local road subventions to cities and counties, 40% for the STIP, and 20% for transfer to the PTA. With half of the PTA augmenting the STIP, one-half of all TIF revenues would accrue to the STIP. One provision of Proposition 42 that went into effect for 2003-04 was a constitutional bar to suspending transfers to the TIF or using TIF revenues for other purposes. It required a finding by the Governor and the enactment of a bill passed by a two-thirds vote of both houses of the Legislature to suspend or reduce transfers to the TIF for a fiscal year. With a two-thirds vote of both houses, the Legislature could also change the percentages allotted to each purpose (local subventions, STIP, and PTA), but no statute could redirect TIF funds to any other purpose, including the TCRP. The Third Year: 2003-04 Budget, SB 1750, and SB 1751 The protections of Preposition 42 were quickly set aside in 2003-04, the first year they came into effect. SB 1750 partially suspended the 2003-04 General Fund transfer to the TIF transfer, limiting it to $289 million for transfer to the TCRF. The balance, estimated at $856 million, was retained for the General Fund. Of the $289 million transferred, SB 1751 appropriated $189 million for the TCRP and directed that $100 million be transferred to the State Highway Account for expenditure on the STIP as a partial repayment of loans made to the TCRF by the SHA under SB 1834 (2002). SB 1751 also created the Transportation Deferred Investment Fund (TDIF) and specified that an amount equal to the suspended portion of the 2003-04 TIF transfer, with interest, be transferred 5 to the TDIF by June 2009, with revenue to the TDIF to be available for the same purposes for which the suspended TIF transfer would have been available. The purpose of this was to treat the suspension as a loan, with the repayment not protected by Proposition 42. The clear message was that Proposition 42 and the TIF, as great as their promise was, could not be relied upon for long-term support of the state transportation program. The Fourth Year: 2004-05 Budget, SB 1099, and SB 1098 That message was confirmed this year when the Legislature enacted SB 1099 to suspend the Proposition 42 TIF transfer for 2004-05, this time in full, retaining $1.138 billion for the General Fund. A companion bill, SB 1096, treated the suspension as a loan, specifying that an amount equal to the suspended 2004-05 TIF transfer, with interest, be transferred from the General Fund to the TDIF by June 2008, with the TDIF revenue to be available for the same purposes for which the 2004-05 suspended TIF transfer would have been available. The 2004-05 Budget did provide $183 million to repay the TCRF for loans to the General Fund. Of this amount, $43 million was transferred from the General Fund and $140 million was taken from sales tax revenues that would otherwise have gone to the Public Transportation Account (as part of the "spillover" formula). That reduced STIP revenues by $70 million and the State Transit Assistance (STA) program for local transit operators by $70 million. Of the $183 million loan repayment to the TCRF, the Budget directed that $163 million be retained for TCRP projects and that $20 million be transferred to the State Highway Account for partial repayment of SHA loans to the TCRF Using Tribal Casino Bonds to Repay Loans: AB 687 Another measure affecting transportation funding was enacted this year through AB 687, which ratified tribal casino revenue compacts and provided authority to bond against future state revenues from those and any additional tribal state compacts, with up to $1.5 billion in proceeds to be dedicated to the repayment of transportation program loans to the General Fund. AB 687 was ostensibly to be a solution for transportation funding in 2004-05, in effect a replacement for the suspended Proposition 42 transfer. In reality, however, AB 687 has added another level of complexity and further uncertainty to the transportation funding picture. None of the proceeds is yet available. It is not clear when or over what period of time the bonds may be sold, and it is not yet clear what effect potential procedural constraints will have on making the funds available. No sale of bonds could proceed before the November 2004 election, since the passage of either of two casino revenue initiatives, Proposition 68 and Proposition 70, would have nullified the underlying compacts negotiated by the Governor and ratified by AB 678. The defeat of the initiatives, however, did not resolve the salability of the bonds. A lawsuit filed in September 2004 challenges the ratification of the compacts through urgency legislation, which precluded opponents from petitioning for a referendum against them. Until that legal obstacle is resolved, the bonds cannot be sold. If those questions are resolved, other issues will remain. Though the language of AB 687 seems to imply that$1.2 billion would be made available immediately, the State Treasurer has indicated that bond proceeds would likely be closer to $850 million. In any case, the amount and timing of bond proceeds will depend on several unknowns: 6 · The resolution of the legal challenge to the ratification of the compacts. · The timing and magnitude of the underlying casino revenue revenues upon which the tribal- state compact revenues are based · The cost of credit enhancements, such as bond insurance. The State Treasurer indicates that this cost is likely to be high because of the unwillingness of the sovereign tribes to make their financial operations a public record. The authorized bond sale might not occur at one time, but could consist of a series of sales. AB 687 even includes a provision for the compact revenues to be applied directly to transportation if bond sales are determined not to be feasible. The $1.5 billion in authorizations for transportation loan repayments are laid out in priority order by AB 687: · The first $1.214 billion would go to the TCRF to repay its loan to the General Fund. This amount would be available for use in the following priority order: 1) $457 million to repay the State Highway Account for its loan to the TCRF. These funds would accrue to the STIP. 2) $290 million for allocation to TCRP projects. 3) $384 million to be split with equal priority, with: · $192 million to the PTA to repay part of its loan to the TCRF. These funds would accrue to the STIP. · $192 million to the TCR local streets and reads program, to pay the amount due from the TDIF for that program in 2008-09 as a result of the TIF suspension for 2003-04. 4) $83 million to the PTA to repay the remainder of its loan to the TCRF. These funds would accrue to the STIP. 5) From any portion of the $1.214 billion that might remain (e.g., because the higher priority loan repayments are made earlier from other funding), funding of the amount due to the STA program in 2008-09 as a result of the TIF suspension for 2003-04 (about $47 million). · The remainder of the $1.5 billion (no more than $286 million, unless higher priority loan repayments are made from other funding), would go to the TDIF for payment toward the amount due in 2007-08 as a result of the TIF suspension in 2004-05. The total TDIF due in 2007-08 is about $1.138 billion (plus interest). · Any remainder to the TDIF for payment toward the remainder due in 2008-09 as a result of the TIF suspension for 2003-04. This total is about $909 million (plus interest), including the amounts identified in items three and five above. 7 AB 687 further mandates that bonds be exempt, as much as possible, from federal taxation of interest. That should effectively preclude the use of bond proceeds to cover past expenditures, for example by liquidating TCRP letters of no prejudice or STIP cash reimbursements due under AB 3090 arrangements. It will further require that projects to be funded from the proceeds of a bond sale be identified in advance. That may introduce further administrative complexity, especially with regard to the TCR local streets and roads program and the STA program for local transit. Summary of Scheduled Transfers and Loan Repayments The following table summarizes the annual Proposition 42 TIF transfers and loan repayments as they are now scheduled. The table includes the original General Fund transfer from 2000-01. The loan repayments now scheduled to be paid from the proceeds of tribal casino revenue bonds pursuant to AB 687 are shown in a separate line. Scheduled Tlr Transfers and Loan Repayments ($ millions) TCRP STIP Loc Rds STA Total Prior Years $1,051 -$ 839 $ 0 $ 0 $ 212 2003-04 189 100 0 0 289 2004-05 163 20 0 0 183 AB 687 290 732 192 0 1,214 2005-06 678 238 190 48 1,153 2006-07 678 438 0 49 1,164 2007-08 1,280 770 184 106 2,340 2008-09 581 880 512 176 2,149 Total $4,910 $2,338 $1,078 $ 378 $8,704 The Commission's Response Over the past two years, the Commission has responded to the diversion and loss of transportation funds by suspending new allocations, by monitoring cash flow closely, by encouraging local agencies to advance local funding for projects where they could, by bonding against future federal transportation apportionments to fund a few large projects, and by reprogramming projects in the 2004 STIP, delaying over $5.4 billion in projects by two years or more. · In December 2002, the Commission suspended allocations to all STIP, TCRP, and SHOPP projects except SHOPP projects for emergency repair, seismic retrofitting, and traffic safety. · From April to June 2003, the Commission temporarily resumed STIP and SHOPP allocations, following an allocation plan for rationing programmed funding adopted in April. During those months, the Commission approved allocations to $1 billion of the $1.4 billion in projects that were ready to go. 8 · For 2003-04, the Commission once again suspended all STIP and SHOPP allocations except SHOPP projects for emergency repair, seismic retrofitting, and traffic safety. Allocations for other SHOPP were resumed on a limited basis in January 2004. For all of 2003-04, however, the Commission approved no new STIP project allocations and $800 million in SHOPP, as compared with $1.3 billion programmed. · For 2004-05, the Commission continued the suspension of all STIP and SHOPP allocations, except for emergency and safety projects, through January 2005. On the basis of December 2004 cash projections; the Commission now anticipates no more than $720 million in STIP and SHOPP allocations through June 2005, against over $2.0 billion programmed, including over $1.9 billion for the SHOPP. In January 2005, the Commission will consider the extent to which 2004-05 allocations may be extended beyond SHOPP emergency and safety projects. · The Commission has approved $455 million in STIP AB 3090 arrangements, under which a local agency advances a project with its own funds and in return receives programming either for cash reimbursement or for a replacement project in a later year., The Commission approved the issuance of Grant Anticipation (GARVEE) bonds, secured by future federal transportation apportionments, to cover $658 million in costs for 8 major STIP projects. The bond issuance was approved in January 2004. · During 2003, the Commission approved $269 million in TCRP letters of no prejudice (LONPs). Under an LONP, a local agency implements a TCRP project with its own funds, retaining the option to claim the state TCRP funds dedicated for the project when and if they later become available. Given the uncertainties of TCRP funding, the Commission stopped approving new LONPs in 2004, and has since built a backlog of $590 million in pending but unapproved LONPs. · In August 2004, the Commission adopted the 2004 STIP, which added two new years (out to 2008-09) and no new project funding capacity. The new STIP reprogrammed$5.4 billion in projects carried forward from the 2002 STIP, delaying them by an average of two years. In accordance with statute, the fund estimate on which the STIP is based assumed that TIF transfers would proceed as scheduled, without suspension, and that all prior loans would be repaid as scheduled. · The Commission, together with the Department, continues to monitor the demand and availability of cash flow for STIP, the SHOPP, and the TCRP Future Outlook The outlook for transportation funding in California depends on the resolution of unknowns in four areas: the approval of a revised funding plan for the toll bridge seismic retrofit program by the Legislature; the approval of a federal reauthorization act by Congress and the President; the resolution of the legality of the tribal casino revenue bonds and the determination of cash availability from their proceeds; and, most important of all, the actions of the Legislature with regard to the approval or suspension of Proposition 42 transfers and the repayment of outstanding loans. In August 2004, Caltrans reported that projected costs for the toll bridge seismic retrofit program (including contingencies) was now $8.3 billion - about $3.2 billion more than the funding provided for by AB 1171 (2001). The letting of additional contracts to complete the east span of 9 the San Francisco-Oakland Bay Bridge is now on hold pending the adoption of a new funding plan by the Legislature. The existing funding plan draws primarily on bridge tolls, state general obligation bonds (Proposition 192), and state transportation revenue drawn from the State Highway Account and the Public Transportation Account. Any further draws on those two accounts would reduce STIP funding already severely at risk. The last six-year federal transportation authorization act expired September 30, 2003, and its terms have been extended six times, most recently until May 31, 2005. Most observers now expect the approval of a new authorization act sometime in 2005. By May 2004, both the Senate and House of Representatives had passed six-year reauthorization bills, which would extend federal authorizations to 2008-09. The Senate-passed version would provide $318 billion in contract authority and the House version $283 billion, while the White House has opposed any figure over $256 billion. The White House position roughly equates to the levels assumed for the 2004 STIP fund estimate. House and Senate conferees have yet to complete work on a conference bill to send to the President, though present indications are that there is support for a compromise in the neighborhood of $299 billion. If enacted and signed by the President, that could provide a 15-20% increase in federal funding over the amount assumed in the fund estimate, or roughly $2.3 billion overall for California, including $1.4 billion in additional STIP capacity over the six-year period. The doubt is whether the President will agree to sign a bill approved by Congress or whether the Congress would override a presidential veto. In 2004, the Legislature dedicated up to $1.5 billion in bond proceeds from tribal casino revenue compacts to repay loans due from the General Fund to various transportation funds. With both the legality of the compact ratifications and the economic viability of the bonds in doubt, it is uncertain when, whether, and how much of these funds will be realized to repay the existing loans. Most troubling is the uncertainty even as to when these questions will be resolved. More than anything, the future of transportation in California will depend on decisions made by the Governor and the Legislature in the 2005-06 budget process. The state transportation program has become largely and increasingly dependent on sales tax revenues. Under the California Constitution, as amended by Proposition 42, gasoline sales tax revenues are transferred to the Transportation Investment Fund to support both the TCRP and the STIP, as well as local road subventions and the state transit assistance program. Over the last 4 years, however, the scheduled transfers have been postponed or suspended to backfill for General Fund deficits. Of the $5.4 billion reprogrammed in the 2004 STIP, for example, about $4.0 billion (75%) was scheduled to come from sales tax revenues - $3.3 billion from Proposition 42 transfers (including repayments of prior loans) and $0.7 billion from other sales tax revenues to the PTA, including the sales tax on diesel fuel. By law, each STIP fund estimate is adopted on the basis of revenues in existing law. The 2004 STIP fund estimate assumed that Proposition 42 TIF transfers would be made each year and that outstanding loans would be repaid on schedule. In August 2005, the Commission will be adopting the fund estimate for the 2006 STIP (for the 5-year period ending 2010-11). If the annual TIF transfer is postponed or suspended for the fifth year in a row, it would seem prudent for the Commission to assume, on the basis of the record, that no TIF transfers will be available for the STIP. That assumption would mean the loss of over $3.6 billion to the2006 STIP. With most, and perhaps all, available State Highway Account funds needed to support safety and rehabilitation work through the SHOPP, this would mean the virtual collapse of the state transportation improvement program. 10 Attachment CITY OF UKIAH J RESOLUTION 05- RESOLUTION OPPOSING SUSPENSION OF PROPOSITION 42 FUNDS BY THE CALIFORNIA LEGISLATURE THE CITY COUNCIL OF THE CITY OF UKIAH HEREBY FINDS, DECLARES, AND RESOLVES THAT: WHEREAS, Proposition 42 was overwhelmingly approved (70%) by the voters in 2002, whereby said Proposition effected a constitutional permanent shift of the sales tax on motor vehicle fuels from the State General Fund to the Transportation Investment Fund for transportation purposes; and WHEREAS, these funds in the Transportation Investment Fund are to be divided as follows: (1) 40% to the State Transportation Improvement Program (STIP), (2) 20% to cities for street maintenance and rehabilitation, (3) 20% to counties for road maintenance and rehabilitation, and (4) 20% to the Public Transit Account (PTA) for a variety of transit programs; and WHEREAS, Proposition 42 helps make our roads safer and reduces congestion without higher taxes by requiring that gasoline taxes we already pay be used to maintain and improve mass transit, highways, and local streets and roads; and WHEREAS, Proposition 42 provides a stable and ongoing source of transportation funding that makes it possible to address existing and future transportation needs; and WHEREAS, Proposition 42 guarantees funds to every city and county to help fix potholes, repair dangerous road conditions, and improve the safety of children walking or biking to school; and WHEREAS, cities and counties put these dollars to work immediately, thereby saving taxpayers four to five times the cost of deferring maintenance; and WHEREAS, cities and counties have an impeccable record of spending these types of dollars, expending 98% of monies directly on an annual basis over the last 10 years; and WHEREAS, Proposition 42 helps speed up highway safety and traffic congestion relief projects, and expand and improve mass transit systems; and WHEREAS, by accelerating transportation projects, thousands of new construction and related jobs are created, our economy is stimulated, and every dollar invested in our highways results in almost six times that in overall economic benefit; and WHEREAS, Proposition 42 is based on the principle that taxes paid at the pump should be used for transportation purposes; and WHEREAS, the State Legislature has suspended the allocation of Proposition 42 funds to their intended purposes which has violated the public trust, ignored the will of the people on this issue, and violates the contract between voters and their elected State representatives; and WHEREAS, the City of Ukiah lost approximately $59,000 in funding in FY 2003/04, is losing another $63,000 this year, and stands to lose another $68,000 in rehabilitation funding in FY 2005/06 if Proposition 42 is again suspended; and WHEREAS, Proposition 42 suspensions to date have rendered $1.8 million unavailable to the Mendocino Council of Governments for programming State Transportation Improvement Program projects in Mendocino County, with an additional $1.2 million becoming unavailable if Proposition 42 is suspended in FY 2005/06; and WHEREAS, without Proposition 42 monies being available for California transportation, the current 12-cent gas tax that goes to the state and the 6-cent gas tax dedicated to cities and counties is insufficient to even maintain the existing street, road, and freeway system; and WHEREAS, Proposition 42 monies are critical to city street and county road systems, that together represent 82% of all publicly maintained miles in California, providing a critical component in a seamless transportation system for the public, commerce, transit operations, and farm-to-market trips throughout California; and WHEREAS, today over $5.5 billion in transportation funds have been diverted to offset the State's General Fund deficits over the past 3 years, with this figure growing by another $1.3 billion should Proposition 42 funds be borrowed again in FY 2005/06; and WHEREAS, the Governor's proposal to repay Proposition 42 funds, with no interest, over a 15-year period starting in F.Y. 2007/08 will ensure that restored funding will be only a fraction as effective as it would if available now. NOW, THEREFORE, BE IT RESOLVED THAT: The City Council of the City of Ukiah hereby supports the intended purpose of Proposition 42, which puts transportation dollars to work, saves taxpayers money, and improves the efficiency of the state's transportation system. Furthermore, the City Council declares its opposition to diversion, suspension, or borrowing of Proposition 42 funds from transportation to the State General Fund. This Resolution was adopted at a meeting of the Ukiah City Council held on April 6, 2005, by the following votes: AYES: NOES: MARK ASHIKU, Mayor ATTEST: Marie Ulvila, City Clerk 1 ITEM NO./0C, DATE: April 6, 2005 AGENDA SUMMARY REPORT SUBJECT: AWARD OF BID TO KG WALTERS FOR CONSTRUCTION OF THE WATER TREATMENT PLANT IMPROVEMENT PROJECT IN THE AMOUNT OF $7,172,000. SUMMARY: On March 16, 2005, the City Council authorized the City Manager to negotiate a construction contract for Water Treatment Plant Improvement Project (Phase 2 of the Water System Improvement Project) with KG Walters Construction Company of Santa Rosa, California. KG Walters was selected because: a. They were one of the six general contractors (GC) that attended the mandatory Pre-Bid Meeting in January. There was concern about negotiating a contract with a GC not at the mandatory Pre-Bid Meeting. b. SPH Associates is very experienced working with KG Walters. They have worked together on 4 different projects and have been very impressed with KG Walters' performance and professionalism. c. KG Walters specializes in construction of municipal water and wastewater treatment plant projects. d. KG Walters is located nearby in Santa Rosa, which will reduce mobilization costs. (continued on Pa.qe 2) RECOMMENDED ACTION: Award bid to KG Walters for construction of the Water Treatment Plant Improvement Project. ALTERNATIVE COUNCIL POLICY OPTIONS: 1. Reject Staff's recommendation and provide direction to Staff on alternatives. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Bernie Ziemianek, Director of Public Utilities Ann Burck, Project Engineer/Manager Candace Horsley, City Manager 1. McGraw-Hill Construction ENR magazine article (3/22/2004) 2. Washington Post newspaper article (6/14/2004) 3. California Builder Magazine article (Sept./Oct. 2004) 4. Letter from SPH Associates (3/29/2005) 5. Letter from OEMC (3/28/2005) APPROVED:' .-~ "..-'~ .,-.. Can~"ce Hor~l-ey, CitY rv~anager SPH Associates' (SPH), original engineering cost estimate of October 2003 was $5,944,000 for the plant project and yard piping. The most recent engineering cost estimate from SPH is now $6,741,300, a 13.4 percent increase due primarily to inflation. Within the last two years, there has been a significant increase in prices for structural steel, reinforced steel, concrete, plastic pipe, valves, and lumber created by demand in the domestic housing market and construction in Asia. In addition, rising gasoline prices are increasing materials delivery costs for manufacturers and contractor cost for operating heavy equipment. A recent City purchase of piping and valves for the Brush Street water line replacement reflected a 15 to 20% cost increase. Note: From 2003 to 2004, according to the Washington Post newspaper, there was a 22 percent increase in steel prices and a 20 percent increase in lumber prices. And according to the California Builder Magazine, concrete prices increased 25 percent in the first half of 2004. Articles from the McGraw-Hill Construction Engineering News-Record magazine (ENR) (Attachment #1), the Washington Post newspaper (Attachment #2), and the California Builder Magazine (Attachment #3) included at the end of this report provide more information on the price increases in construction materials. In conjunction with the City's Public Utilities Engineering Staff, Owen Engineering & Management Consultants (OEMC), the project Construction Manager, and SPH completed bid negotiations with KG Walters for construction of the high-pressure pump station and improvements to Ukiah's Water Treatment Plant. After a thorough review of KG Walters' Bid Schedule, SPH and OEMC submitted letters (Attachment #4 and Attachment #5, respectively) to the City stating, "The price for the work negotiated with KG Walters is fair and reasonable" and recommending "the City enter into a contract to construct the water treatment plant improvements with KG Walters Construction." According to SPH, their "updated construction cost estimate of $6,741,300, revised to reflect recent inflation in construction costs, very closely matches the actual bid amount of $7,172,000 received from KG Walters". On the basis of recommendations from SPH and OEMC and the review of KG Walters Bid Schedule, Staff recommends awarding the contract for construction of the Water Treatment Plant Improvement Project to KG Walters. McGraw-Hill Construction I ENR - Inflation's Sneak Attack Page 1 of 2 ~Send to Printer McGraw_Hill c. ,ENR business & labor O Close Window Attachment FIRST QUARTERLY COST REPORT SUMMARY Inflation's Sneak Attack (3/22/2004 Issue) By Dm Grogan Nobody saw it coming. After more than a decade of relative price stability, contractors have been blind- sided by the largest price hikes for materials since the early 1970s. Steel products caused the most damage but prices for lumber, plywood, gypsum wallboard, copper, stainless steel, pipe and fuel are all joining in to pummel contractors. In the steel industry, prices have hit crisis proportions, affecting everything from bridge girders to hinges. In the first quarter, construction faced price hikes for steel products ranging from 20 to 60%. Firms with fixed-price contracts were devastated. Many are being pushed toward bankruptcy, with fabricators particularly vulnerable, observers say. Going forward, virtually everyone is abandoning the flxed-prica approach if they can. Owners who have grown accustomed to shifting risk onto contractors are seeing some of that risk coming back home. "We are quoting just 30 days out and telling clients that prices will be adjusted every month. And we are putting it in bold print in the contract," says Jim Mangarella, an estimator with JM Ahle Co. Inc., a mid-sized rebar fabricator in South River, N.J. With pricing uncertainty making hard-dollar contracts risky, industry associations are petitioning government agencies for relief through escalation clauses on new contracts. Sticker Shock VIEW MORE ARTICLES FROM FIRST QUARTERLY COST REPORT "1 think project cancelations are Steel: Industry stunned by hu~e price hikes right around the corner," says William Brack, CEO of Barker Equipment; Caugkt up jn overheating steel Steel Co., Milford, Mass. He Labor: Costs hinge on settling union dispute believes that higher steel prices are working their way up the Indexes: Steel prices jolt ~)ui!ding costs chain of ccmmand and soon will Me~hodqlogy; What drivesinflation create sticker shock for both public and private ownem. Industry sources say that state transportation departments, already working with limited budgets, will have to start prioritizing projects. ViEW RELATED DATA ENR's 20-City Average Fir~[Qua_rter Prices Constru~ign Materials Price Movement~ ir] ~2~)3-04 Structural Panel pric~s Some fear higher steel prices may stunt the rebound in the commercial building market, which is just now emerging from recession, "The office market is most vulnerable, with steel accounting for 5 to 10% of average cost," says Robert Murray, vice president of economic affairs for McGraw-Hill Construction Dodge. But if the economy sees some pickup in employment, office construction could still register a slight upturn in 2004, he says. 'q'he runup in steel prices will dampen the emerging recovery for commercial building, but not derail it," Murray predicts. There is concern the explosion in steel prices will push general inflation. "This type of uncertainty starts to drive overall pricing because you don't know what you are getting into and you have to hedge your bets," says Karl Almstead, vice president at Turner Corp., New York City. Almstead believes inflation will pick up this year due to pressure from materials prices. But labor costs remain steady and there is still competitive pressure to keep the selling http://enr~c~nstmcti~n~c~m/print~asp?REF=http://enr~c~nstructi~n~c~m/features/bizLa~~~ 3/29/05 McGraw-Hill Construction I ENR - Inflation's Sneak Attack Page 2 of 2 price of construction Iow, he adds. "It would be alarmist to say construction inflation is going to take off." Nevertheless, materials price pressure is widespread. ENR's 20-city average price is tracking annual increases of 41% for plywood, 15% for lumber, 17% for ductile iron pipe and 16% for copper water tubing. Energy advertisement prices also remain high. How these levels translate into overall inflation is a major question for the industry. "While commodity prices have exploded, core inflation in the overall economy remains Iow," says John Mothersole, an economist with Global Insights, Washington, D.C. Anti-inflation forces remain strong, he says. In particular, market fundamentals point to lower energy prices and Global Insights predicts that oil prices will fall from today's $36 per bbl to under $30. The company's forecast also calls for stainless steel, copper, scrap and steel prices to begin declining soon. "We are optimistic that moderate core-inflation for the overall economy, which the Federal Reserve Board looks at in setting interest rates, can be maintained," Mothersole says. Steel's Tangled Cost Web The surge in steel prices was triggered when mills tied prices directly to volatile scrap prices that had increased 88% during the previous two years. Huge demand from China is cited as the main culprit in driving scrap prices up. "China increased its steel capacity by 38 million tons in 2003, or about one-third of total U.S. capacity in one year," says Joe Stratman, general manger of Nucer-Yamato Steel Co., Blytheville, Ark. "That's huge." While China is driving the bus, there are many other passengers, says Joe Rutkowski, Nucor's executive vice president. Besides scrap, virtually ali other input costs have risen sharply, with the prices of some alloys tripling, he says. Domestic demand also is up as world supply declines with major suppliers such as Russia and Ukraine restricting exports. "Normally, we would go somewhere else to relieve [cost] pressure but there is nowhere to go," Rutkowski says. China also disrupted the market by diverting coke exports for its domestic consumption at the same time a major mine fire disrupted U.S. domestic coke supply. The severe shortage in coke forced integrated mills to increase the amount of scrap they use in their melts from 10 to 25%, says John Anton, steel analyst for Globai Insights. But Anton predicts that scrap and steel prices will turn back down after peaking in the second quarter. Scrap prices already are starting to ease as rising freight costs choke off scrap exports to China. And domestic coke production should be back on line this summer as growth in China slows, Anton says. By this time next year, these forces will drive down the average price of structurals and rebar 14% to $365 per ton, Anton predicts. Prices then will hold near this level, well above the $307 average of 2002. "Long-term steel prices will be trending upward with each cyclical trough higher than the last," he says. http://enr.construction.com/features/bizLabor/archiveslO40322.asp http://enr.c~nstructi~n~c~m/print.asp?REF=http://enr~c~nstmcti~n.c~m/features/bizLa~~. 3/29/05 I PVC, Copppr kead fip~ Price ~ain$ t ENR's Materials Price Index (1981-2004) Materials Prices Soar Asevere shortage in scrap nmtal pushed struc- turat steel a~d reinforcing bar prices to record fT.. / cement Prices I 9¢ ,95 !96,97 ,~8~g9 !QO ?Or !02~!~ 04 levels in 2004 (ENR 3/22./04 p. 22). StnJctural steel prices jumped 31% above October 2003's level while rebar prices climbsd 43%. Prices for other materials also made large year-to-year gains ,fl6 'o? ,98 99,00 !0i ~02 '03 '04 !94,95 '96 ~97 ~98 rD9 !00!01 '02,03 '04 in 2004, illcludl~ 31% for copper wa~ fobalg ebld off 8ftBr juflq~ng 35% k12003. Lumba~ p~ices are up 25% In the last tyro yearn. ~ Reinfo~lng Bar pri~ I 2004 · ~ FACTS n 61 ENR'S Common Labor Index (1982-2004) 191~3,.100 JAN, FEB, MARCH APRIL MAY JUNE JULY AUG. SEPT. OCT, NOV. DEC. ENR's Skilled Labor Index (1 --fD~J- 4132 4136 4145 4145 4145 4160 41~0 4164) _-_~6- 5016 5020 5029 502~ 5039 5U60 5~75 5123 ~-1~- ~ 5177 1997 5177 5177 5'1T9 Sl~ 5203 ':--i-~ 5294 53'14 5317 5317 5317 5345 53~ 5387 '~T~ ~4~--~- -'-2~X~- 63G6 6393 6411 6421 6426 Labo~er!~w,Ue $28.85 '95 96 97 '98 96 !01 '04 Bricklayers wa~e caq}efiter!s wage $36.68 '64 '95 '96 ~97 '98 '99 '00 '01 '02 !03 '04 62 · CONSI1~ON FACTS · 2004 Open-Shop Wage Rate for Journeymen a~'fF, es CAar~J~EGE GEMGET Meson~ ELECTRICtANS RATE FRIRGE RATE FRINGE RATE FRINGE RATE FRINGE WESTE~ 22.80 5.0 10-76 20.0 18~82 22.6 24.61 20`8 : 2~-.$~'ERAGE 20.13 18.8 17.70 19.6 16.93 19.8 20.13 20.6 Nonunion Wages An average wage for nonunion worhem, often referred to as open-shop workers, can only be estimated by a bread industr/s~r~ey since each nonunion contractor determines their own wage revel. In contrast, unlen wages are negotiat- ed contractual sethemente that determine the wage for ali unien members in a given area (see p. 62). 'l~e nonunion wages to the left were compiled by Persmmei Adminlst]raUon Services inc., S~line, Mich., wh~ surveyed 1~ nonunion contmctom that employed 85,~26 workem. The PAS se, trey sor~oy indicates treat nonunion conslr~Uon work- ers averaged a 3.7% pay increase in 2003. Demand Sparks Increase in Construction Equipment Prices in 2004 bong demand for constr~ten equipment sparked reiaUvely large price hikes in 2004. Total equipment astes in the U.S. increased 16% in 2004, , by the Asecoiatten of Equipment Menufactumm, Wis. The AEM members surveyed say they believe that higher costs, most notably steel pr~s and avagabgity, will slow se}es growth in 2005 to aix~t 8%. The upturn In demond b~o~e yeas of modmate price increases, according to the Bureau ~f Laedf StaUsUca. In A~gust 2004, the BLS producer pdce index for con~n equipment punted a ~ear-tm year increase of 3.5%. Tnls was mae than tdpte the annual average increase for the sane month during the ix~4~us tour years, Outlook Welcome to the ENR site Page 1 of 2 McGraw Hill ~ CONSTRUCTION L_ I business & labor FUELS Gasoline, Diesel Prices Keep Climbing Higher Economic recovery and high crude oil prices give seasonal swing a strong extra push (4/12/2004) Higher energy prices are jumping on the inflation bandwagon along with huge gains for steel, copper, p~ywood and other material prices. Gasoline prices set a new record high of $1.78 per gallon in Apdl, according to the U.S. Dept. of Energy's national average price. This is up 9.2% above Apd12003's former record high and well above the $1.40 national price averaged in 2002. California has the nation's highest gasoline prices at $2.13 per gallon, matching last year's peak. However, the Midwest is seeing the largest increases with gasoline prices in the region climbing 15% above a year ago, to $1.78 per gallon, says DOE. Diesel fuel prices also are on the rise with the national average price up 6.1% over a year ago, to $1.65 per gallon, says DOE. This is still below 2003% record high of $1.75 but well above the $1.30 that contractors were paying just two years ago, California has the highest fuel prices in the nation, and the largest diesel increases, with prices for that fuel jumping 19% above 2003's level, to $2.01 per gallon, says DOE. High diesel prices are squeezing contractors in fuel-intensive markets such as heavy civil work, and are forcing others to recalibrate their bids. "It's a nationwide phenomenon," declares Bill Wagy, equipment manager for Granite adverhsemem Construction Co., Watsonville, Calif. "Everyone's paying a higher price," adds David Markey, equipment manager for American Infrastructure Inc., Worcester, Pa. "We're ali sharing the misery." Contractors who picked up new work before prices starting going through the roof a few months ago are especially hard-hit. "If you've already got work on the books, trying to go [for a contract adjustment] after the fact is a little dangerous," Markey says. Fuel prices generally move upward in spring when inventories are drawn down as producers switch from winter to summer grades. But this year, prices got an extra push from a stronger than expected U.S. economic recovery, says Jorge Montepeque, the London-based global director of marketing for McGraw-Hill Platt's. In addition, "strong demand from Asia, especially China, is keeping the global pdce for crude oil high," he says. Crude oil prices March 17 reached a 13-year high of $38.18 per bbl and remain the pdme mover, says Rayola Dougher, senior policy analyst at the American Petroleum Institute, Washington, D.C. Projected demand for diesel in California is "actually growing at a much faster rate than gasoline consumption," says Claudia Chandler, spokeswoman for the California Energy Commission. The key long-term issue is improving infrastructure and refinery production in the state, she says. California is an "island" because products must either be refined there or brought in by tanker, "Increased demand means we're going to have to bring in more supplies from out of state, and that will require improvements [and] expansion on our part," Chandler says, But adding that capacity is a tall order, according to industry observers. Building a new, 100,000-barrel-per-day refinery would cost between $1 billion and $2 billion. Refiners also face a "duplicative, multi-layered" permitting process and stiff local resistance, says Joe Sparaoo, president of the Western States Petroleum Association, http://enr.~cnext~c~m/free-scripts/enr-d~cument-view~p~?pag~=~nr-d~cum~nt&it~m-~d=~27 l- 10... 3/30/2005 Welcome to the ENR site Page 2 of 2 which represents about 30 companies in six states. Two bills intended to streamline permitting for petroleum infrastructure have been introduced in the California legislature but face a battle from community groups. There are some signs that the spike in fuel prices may be short-lived. "What does look good for diesel is that the inventory is adequate" compared to gasoline, says API's Dougher. "That ought to take some pressure off diesel prices compared to gasoline." Given the right combination of factors-an easing of crude prices, steady-state refinery operation, a smooth changeover from winter to summer blends-fuel consumers should see a reversal in the price trend, Sparano points out. Crude oil prices are expected to start easing this quarter. Prices for the benchmark West Texas intermediate crude are set to fall from $35 bbl now to $30 by June and should stabilize, according to Mary Novak, energy analyst for Global Insights thc., a Lexington, Mass,-based forecasting firm. She predicts that gasoline prices will follow but that they will remain slightly above last year's level. Copyright © 2005 The McGraw-Hill Companies - All Rights Reserved. http://enr.ecnext.com/free-scripts/enr document view.pl?page=enr_document&item_id=0271-10... 3/30/2005 washingtonpost.com: Materials Driving Up Cost of Construction washJngtonpost.com Materials Driving Up Cost of Construction By Dana Hedgpeth Washington Post Staff Writer Monday, June 14, 2004; Page E01 Page 1 of 3 Attachment # XEROX John P. O'Keefe, a senior vice president of the Clark Construction Group Inc. of Bethesda, the largest construction company in the Washington region, said he first saw price spikes in construction materials last fall, and they haven't let up much since. "The first item that went up was raw steel, then structural steel and the reinforced steel we use for concrete," said O'Keefe, whose company is building some of the largest projects in the District, including the new, sprawling headquarters for the Transportation Department in Southeast. "Since then, the cost of steel has nearly doubled." Forrester Construction Co. of Rockville said it lost about half a million dollars on a project at Andrews Air Force Base because the price for some materials went up after it signed the agreement. "We're left holding the bag," said Scott Forrester, a principal of the company. Meanwhile, in the six months since Rand Construction Corp. bid on turning a massive warehouse in Prince George's County into offices, construction material prices have skyrocketed. Wire mesh, used to reinforce walls and for security, was $30 for a 4-foot-by-8-foot sheet. Now it is $46. Metal studs, used to frame a wall, were a little over a dollar a foot and now cost $2.50. Drywall was $12 a sheet and now is $15. The cost for redoing the interior of the Prince George's building was supposed to be $12 million, but it has gone up by $400,000, said Matt Merz, a senior project manager at the Arlington-based Rand. The main reason: American builders are competing for steel, cement and lumber not only among themselves but also with builders in China, where the economy is growing about 10 percent a year. This massive demand comes as housing markets in areas like D.C. are booming, said Kenneth D. Simonson, chief economist al:the Associated General Contractors of America. If interest rates continue rising, construction activity is expected to cool. That could cause prices to drop, and maybe even result in a surplus of some construction items, according to experts. But for now, construction companies are struggling with rising prices. Take cement. A ton of cement is, on average, almost $84, up 1 percent. The rising price is due to both a surge in construction and a drop in cement imports. The U.S. produced 85 million tons of cement last year with kiln plants running 24 hours a day, seven days a week, at maximum capacity. Builders in the United States used 107.5 million tons, with imports making up the difference. http://www.washingtonpost.com/ac2/wp-dyn/A38990-2004Jun 13 ?language=printer 3/29/05 washingtonpost.com: Materials Driving Up Cost of Construction Page 2 of 3 In recent times, however, China, with its surge in construction, has been tying up ships that would have been used to deliver cement from Asia, Europe and Latin America to the United States. "China is also importing grain, cotton, scrap metal and other goods, and you need dry- bulk ships, which is the same ship you need to carry cement," said Edward J. Sullivan, chief economist at the Portland Cement Association, a Chicago-based trade group of cement producers. Sullivan said if shippers have the choice, they prefer to carry the other products over cement. "You can load and unload those kinds of goods quickly, but it's more difficult to do that with cement. It can take several days because it's heavy." Other construction materials have gone up, too. The cost of 100 pounds of steel is $31.27, up 21 percent from a year ago, according to Engineering News-Record, which tracks pricing in 20 major cities. A thousand feet of lumber sells for more than $530, up 20 percent from last year, according to Engineering News-Record. Plywood prices also are up. Last summer a sheet cost $6; now it is $16, said Michael Carliner, an economist with the National Association of Home Builders, a D.C.-based trade group. Rising gasoline prices have hit contractors who use fuel-guzzling heavy equipment. Alberto Gomez, owner of Prince Construction Co. in the District, said he had to spend an additional $2,000 to run his fleet of six trucks and other equipment to repave parking lots at Howard University. Rand Construction's contract enables it to split the increased costs of materials for the Prince George's County warehouse with its subcontractors and the building's owners, said Linda D. Rabbitt, president of Rand, an $85 million a year general contractor she founded in 1989. Other contractors said the increased prices are causing them to adjust bids on projects. In some cases, property owners are shelving projects. Boston Properties Inc. plans to add seven stories to a four-story building it owns in Southwest, but the higher steel costs are going to make it harder to make money on the deal. "We've seen steel prices go up, and that's meant you pay more for the sheet metal that goes in duct work, the rebar that goes in reinforcing concrete and the conduit for electrical wiring," said E. Mitchell Norville, a senior vice president and regional manager. "Hopefully we're going to make it up somewhere," Norville said. "If interest rates stay low, we'll be okay. But if we get rising prices [on materials], and rising interest rates and rents start to fall off, then we're in trouble." "It's sticker shock," said Gerard Heiber, a vice president at Sigal Construction Corp. of the District. "We've seen it in the private sector and in the public sector." Dana Hedgpeth writes about commercial real estate and economic development. She can be reached at hedgpethd~washpost, com. © 2004 The Washington Post Company Advertising Links http://www.washingtonpost.com/ac2/wp-dyn/A38990-2004Jun13?language=printer 3/29/05 California Builder Magazine September/October 2004 Page 1 of 4 Atfachment # Materials Crunch Builders Cope With Low Supply, High Cost of Essentials By Marcie Geffner California homebuilders who want to know why prices for concrete and steel products have gone through the proverbial roof need to look far from home - indeed, all the way to China - for an answer. The China factor is "significant, although complicated," says Michael Carliner, an economist with NAHB in Washington, D.C. China's economy, which is about the size of California's, is on a tear, and the resultant building boom has impacted global trade in building materials. China uses more cement than the United States does and has used up what had been a glut in global cement capacity. The country also consumes something like one-third of all the steel produced in the world, according to Carliner. "The Chinese built a lot of new steel plants. Like new steel plants in the U.S., they are designed to run on scrap steel. Unlike the U.S., China doesn't have a lot of old cars. So they had a big impact on the market for scrap steel, as well as scrap aluminum and scrap copper," he says. The shipping situation has complicated the matter, according to Ryan Puckett, a spokesperson for the Portland Cement Association, a Skokie, Ill.-based group that represents cement producers. Freight being shipped to China has increased dramatically in a short period of time, according to an association report. "Roughly 23 percent of U.S. (cement) consumption was met by imports last year. When we can't get imports, we can't meet demand, so we need the shipping availability to ease to get imports. It's a global economic issue, so a lot of it has to do with ships that have been sent to Southeast Asia, particularly China," Puckett says. The cement shortage has been felt in about half the states in the country, with Florida being the hardest hit so far, according to the NAHB economist. California hasn't been immune. Cement isn't the only trouble spot for builders. A composite index of lumber prices jumped to $419 at one point this summer, from $405 the prior week and $298 in the same week a year earlier, according to Random Lengths, which tracks and reports wood product prices. A U.S. tariffon Canadian lumber means lumber products cost more in the United States than they otherwise would. However, the tariff isn't the chief cause of higher prices this year because it has been in effect for a while, Carliner says. Meanwhile, the homebuilding boom in the United States and milder-than-usual winter weather in some parts of the country have created more demand for building materials at a time when supplies have been constrained by global market conditions. That increase in demand has triggered higher prices because additional supply hasn't been available. Outlook is mixed The steel and lumber situations aren't likely to worsen, but the cement situation isn't http://www.califomiabuildermagazine.com/pageprint 1 .asp?pid=91 3/29/05 California Builder Magazine Page 2 of 4 particularly encouraging, sources suggest. Wood products prices have eased and are probably past their peak, Carliner says, although they're still higher than historical levels. The direction of steel prices is more difficult to assess. "We do have some favorable indications in the more crude materials, especially the scrap metal prices, that suggest prices are at least not going to continue upward," Carliner says. So far allocations have contained cement prices, he says. Puckett says the cement shortage won't ease unless shipping availability increases and the white-hot residential construction sector in the United States cools off. A hint of that could be found in June's housing permits and starts, which declined compared with the prior month's figures, according to the U.S. Census Bureau; however, one month is not a trend. Carliner suspects gypsum wallboard and fiberglass insulation could be "poised to become a bigger problem," if nonresidential construction picks up. Higher prices hit builders The higher prices and limited supplies are affecting individual California homebuilders in different ways, but the overall impact is being felt across the board. "Every builder in Southern California is experiencing dramatic cost increases," says Richard Douglass, division president for Centex Homes in Orange County. Higher prices translate directly into higher construction costs because materials costs are multiplied many times over for each house and even more so for larger houses. A typical new-built 2,272-square-foot house contains 19 tons of cement and 13,837 board feet of framing lumber, according to a recent NAHB Housing Facts, Figures and Trends backgrounder. Douglass says prices for lumber, steel, and concrete products and other materials have escalated fairly dramatically. Lumber prices have been an issue for many months, and steel probably has had the most dramatic price increases. The availability of trusses has been a concern as well, he adds. The Centex division's total cost of materials and labor per house has risen 10 percent or more compared with the cost for a comparable house 12 months ago, Douglass says. Charlie Shea, of Shea Homes Northern California, also reports higher prices across the board on cement products, lumber, insulation, steel, and other building materials. The reality that prices are a "moving target" forces Shea managers to spend more time on budgets and to pay more attention to the phase-by-phase budgeting process, he says. Shea believes smaller builders are at a disadvantage in supplier negotiations because they use smaller quantities of materials. "Volume affects pricing, so the bigger builders - the Centexes and the Pultes - many times are going to be able to get better prices on some materials than others, even Shea. It's mostly a function of economy of scale as it relates to supply and demand," he says. http://www.califomiabuildermagazine.conffpageprint 1 .asp?pid=91 3/29/05 Califomia Builder Magazine Page 3 of 4 John Young, president of Young Homes in Rancho Cucamonga, says delays in obtaining concrete and trusses are the top materials issues at the company, which expects to complete 700 homes this year. "We are scrambling to make sure we get to the concrete suppliers and pay them quickly and implore them that we need the concrete on time. If they deliver late, it causes a domino effect with the other trades that come after them, so it delays the job," he says. Prices rose 25 percent for concrete, 15 percent for lumber, insulation and metal, and 6 percent for drywall in the first half of this year, and insulation and drywall were on allocation, Young indicates. Steven Wing, vice president of construction at Midland Pacific Homes in Atascadero, reports "astronomical" prices for concrete steel products, especially rebar. He says the price of rebar has jumped $400-$500 for a 1,400-1,500-square-foot house. Total costs - including concrete, lumber, insulation, and plumbing - have risen $8,000-$10,000 for a 2,500-3,500-square-foot house. "It's like the stock market. You want to buy low and make sure you have enough," he says. Builders cope with challenges Douglass' top tip to cope with materials issues is "efficiency." He says individual builders can't control supply and demand, but they can control their own schedules, designs, and other aspects of their projects to perform with maximum efficiencies, thereby controlling costs and minimizing delays. Efficiency also is a factor in whether larger builders can negotiate more attractive prices and delivery schedules than smaller competitors can because while building more homes provides some leverage in negotiations, even large-scale builders compete with one another for preferences from suppliers, he suggests. The suppliers are going to reward the most efficient and productive builders. "Ifa builder's local operations aren't doing well, I don't know that they are going to get that consideration," he says. Shea recommends placing advance orders to head off unexpected price hikes and shortages, as well as taking advantage of price dips when they occur. Shea Homes buys lumber as early as possible, usually two to six weeks ahead of time, depending on the specific type of product. Larger, more important materials are ordered the longest amount of time in advance. "Sometimes we have the luxury of locking in a lumber price in advance of price increases. It depends on who the framing contractor is. Some aren't able to be as generous as others. As with other onerous external forces, we are still somewhat a prisoner of (price) increases," he says. Wing suggests locking in lumber supplies from six to eight weeks - or maybe even 12 weeks - in advance, depending on market conditions. He suggests that builders monitor oil and gas prices to gauge the outlook for building materials. He says higher oil and gas prices almost always trigger higher prices for building materials because the cost of shipping and other business expenses goes up when those basic htlp://www.califomiahuildermagazine.com/pageprint 1 .asp?pid=91 3/29/05 California Builder Magazine Page 4 of 4 prices rise. Wing also looks to competitive pressure among multiple suppliers to contain the harshest effects of rising prices. The knowledge that materials that aren't locked in can be subject to competitive bidding reminds suppliers that their prices need to be as competitive as possible. But Young suspects a little greed factor could be at work among some suppliers, although he hasn't seen any hard evidence of it. "The suppliers understand that the homebuilders are doing well. They know how well the stock market is doing for the builders' stocks, and they see sales and home prices are escalating, so maybe there is a little bit of feeling of 'We ought to be able to raise our prices,'" he says. "I don't know whether I believe that, but you hear it all the time." Young's strategies include going forward with tasks that can be completed without missing materials, even if those tasks are being done out of sequence, and starting a smaller number of homes than had been planned for a new phase, if only a lesser amount of a needed material is available. "Generally our phases are about 10 homes. If the concrete supplier says, 'I can only give you enough for five homes,' we'll say, 'We'll take it.' ... The economies of scale don't work as well, but we'd rather have five than zero," he says. None of these builders was enthusiastic about trying "alternatives" to lumber, concrete, or steel or altering house plans or construction methods in response to higher prices or material shortages. Alternative materials were rejected because they cost as much or more than the traditional materials, the builders say. Contract negotiation Builders also try to avoid price hikes by holding suppliers to their contracts. There is some wiggle room for suppliers, but exactly how much wiggling is allowed is a sensitive subject. "It can't be real comfortable for them to have to come back to us with a request to absorb these increases," Shea notes. Douglass wouldn't discuss the issue other than to say the Centex division looks at such situations "on a case-by-case basis" and will work with suppliers to find "a reasonable solution." Young says his company usually can hold a supplier to a contract "without threatening lawsuits or anything like that," but he knows the higher prices will hit on the next contract. Deals sometimes are renegotiated if the pricing structure is a true hardship for the supplier. Wing also tries to hold suppliers to contracted prices, but he also says it's not always possible, if the contract is so burdensome that the supplier can't deliver the materials. "If they are taking a major hit, it doesn't do me any good to hold them to the low price because that will just weaken our relationship with the contractors," he says. "We're all in it together." Marcie Geffner is a real estate reporter in Los Angeles. http://www.califomiabuildermagazine.conffpageprint 1 .asp?pid=91 3/29/05 =~~ ossoctofes Affachment # '~ Consulting Engineers March 31, 2005 Ukiah Utilit es City of Uldah 300 Seminary Avenue Uldah, CA 95482 Attenlion: Ann Burek Administrative Anolyst Subject: Proj~t Cost Review Documentation for Contract Award Wster Facilities Improvements CiF of Uldah Dear Ann, As a follow up to our construct/on contract negotiation meclmg of March 23, 2005 with KG Walters Constmcgon, we offer the foregoing discussion of the cost development history of this project. As you ar~ aware our estimates are planning-level estimates. They are not based orr detailed design as is lho conlract pricin~ provided by KG Walters. 1'he pro-design study submilted in Oclober 2003 was prepared presurmng that the overall scope of the project would include the followin~ major elements: · One (1) new raw water pump · Two (2) TR-840 Trident Units (capacity 6 re§d) · Building expansion · Numerous improvements lo existing plant facilities · A new filtered water high service pump station · 1.$ million gallon finished water reservoir · 1.5 million ~lon Zone 1 reservoir · 250,000 gallon Zone 2 reservoir · Basic SCADA System A cost estimate was prepared for the project assuming that it was to be constructed under a single co,'u ~zt. The trealmant plant cost estimate included in the pre-design study report is provided as Table 1. Our cost estimate of this pre[iminm3, stage of development was $4.049,000 for the lreatmant plant. Including the reservoirs nnd other features of the project, the total estimated cost for construction wits $9,955.000. An updated construction cost estimate was prepared following completion of design documenls. ~fhis pre- bid estimate is presented in Table 2. Note that lhe pre-bid estimate wa~ prepared using more refined design in,format/on and includes additional features added during lhe design phase, identified by rite City and the consultant as being required w meet ~he needs of lhe Ci~ in an upgraded facility. Major additions to the design scope included expansion of the treatment building to include new office, 033105 ] ~..~2 lO I~Mdc-e3~ 033105 3420 Coach/.one, Suite 10 ,, Cameron Park, CA 95682. (530) 6770935 · Fax (530) 677-2237 o Emall; spha~ocffilnnerclte, com conference room, md e~y way, a bddgn c~ano, rabuilding ~ p~pe, ~o~ pi~ ~o~ p~ ~t~ SCOA ~em, e~. Dd~ of ~e m~ul~ Tdd~t ~t ~d ~s~im~ pi~mg ~ pr~e~ c~. Howevm, ~ ~at~ v~ue of~mpunan~ includ~ ~ ~pl~t coupled ~ Mj~t of ~ivid~ ~mpo~nt ~ ~ ~t for ~un md be~ d~i~ d~ ~M ~ to~ ~mat~ ~on co~ ~ $5,244,000 for ~ pl~ proj~t o~y. ~s ~ma~ did not $700,0~ ofco~ for ~e Mdifion~ pi~ ~g a~o~ ~e b~eb~l flel~ betw~ ~e pl~t md ~ w~er r~oir. ~clud~g &~e c~ ~d ~ve &cr~ed &e to~ proj~ pr~bid ~ to about $6,0~,~. Our negotiating session with KOWalters Construction revealed that actualbid costs for certain componmts of the project w~e higher than our pre-bid estimate. Their pralimina~y price for the work, subject to receipt offwm bids from several suppl/ers, wes about $6,850,000. Following is a discussion of tho line- item costs that have inflated recently and we[e not accounted for/n our pre-bid ~qimate. A review of subconlractor's bids indicated ~ recent significant cost increases, (in some cases as much es 40~percant) for steel, pvc pipe, concrete, manufactured equipment, angine generators, fuel and computerized control instrumentation (SCADA) was not factored into our estimate. For example, our est/mated costs for electrical and instrumentation of about $ !,000,000 wes about $600,000 lower than the actual bid amounts for this work received by KGWalters. We also underestimated the addition to ~ steel building, which increased the building cost by about $150,000. The miscellaneous steel category wes also underestimated by about $75,000. 'l'lm engine g~nerator set was also about $100,000 higher '&an we projected. Aa shown in Table 2, adding these additional costs to the project cost estimate, increases the expected cost of the proj~'t to $6,741,300. Adding allowance items of $300,000 for miscellaneous unanticipated improv~nent work end $40,000 to pave the golf course access road effectively increes~the prebid e~imata to $7,081,:~00 which is within 2 percant of the KGWa~tess bid. Our updated constructiun cost estimate revised to reflect recent inflation in construction costs very closely matches the actual bid amount of $7,172,000 recdved from KG Walters. The cost inflation iacurr~d during developmmt of th'Ls project is cousistent with current experience eisewh~ro in municipal fac/lities construo'don. The price for the work negotiated with KO Walters is fair and reasonable and it is our recommendation that the C/P/enter into a contract to construct the water treatment plant improvements with KG Walters Construction. We tw_st that the presentation of the progression ofprojeet cost escalalion and the reason for this escal~inu through its development is clear and understandable in the above discussion. We firmly believe it is in the best interests of the City to proceed with the project to improve the reliability and enhance the redundancy of the existing facilities to insure continued production of suflScient, high-quality drirfldng water for a~e Cily of Ukialt V~y truly yours, Sigurd P. Hansen, P.E. Pv'sident SPH:Im anclosures 0'43 10~ ~ c:L~210 lqli~lmt~c4~t6 03~ 10~ TABLE 1 ESTIMATED CONSTRUCTION COSTS PRE-DESIGN PHASE - OCTOBER 2003 WATER TREATMENT FACILITIES IMPROVEMENTS CITY OF UKIAH Componem Demolition Site Preparation Excavation and Embankments Yard Piping Landscaping Paving and Surfacing Concrete Masonry Miscellaneous Metal Treatment Plant Building Finished Water Pump Station Building Trident TR-840S Treatment Units Install Treatment Units Raw Water Pump Rebuild Existing Raw Water Pumps Chemical Feed Facility Improvemems In-line Mechanical Mixers Dry Media Scrubber Low Head Filtered Water Transfer Pumps High Head Finished Water Pumps Caustic Storage Tank Alum Storage Tank Recycle Pump Process Instrumentation Process Piping Butterfly Valves Valves, Cocks and Hydrants HVAC Standby Generator/Fuel Tank Painting Electrical and Instrumentation Subtotal Conslxuction Costs Construction Cost Est'umating Contingency ~ 20% TOTAL ESTIMATED CONSTRUCTION COST Estimated Cost 37,000 5,000 18,000 183,000 18,000 90,000 173,000 4,000 41,000 73,000 64,000 800,000 200,000 95,000 30,000 14,000 32,000 165,000 72,000 156,000 12,000 12,000 30,000 27,000 144,000 38,000 28,000 29,000 178,000 39,000 567,000 3,374,000 675,000 $4,049,000 032505 m:\02101\table I w 032505 letter TABLE 2 PRE-BID VERSUS BID PRICE COMPARISON WATER TREATMENT FACILITIES IMPROVEMENTS CITY OF UKIAH Component Division I - Temp Facilities, O/M, Pictures, Etc. Mob/DeMob/Bonds/Ins: Demolition 60,000 Site Preparation Excavation and Embankments Yard Piping Landscaping Paving and Surfacing Concrete Masonry Miscellaneous Metal Treatment Plant Building Finished Water Pump Station Building Trident TR-840S Treatment Unit Install Treatment Unit Chemical Feed Facility Improvements In-line Mechanical Mixer (1) Dry Media Scrubber Low Head Filtered Water Transfer Pumps/ High Head Finished Water Pumps Caustic Storage Tank Recycle Pump Process Instrumentation Process Piping Butterfly Valves Valves, Cocks and Hydrant HVAC Free Standing Bridge Crane Zone 1 Tank Header Standby Generator/Fuel Tank Painting Electrical and Instrumentation Subtotal Construction Costs Construction Cost Estimating Contingency ~ 15% TOTAL ESTIMATED CONSTRUCTION COST Difference Pre-bid Estimate Contractor's BidI $ 75,000 $ 250,0O0 $ $ 10,000 $ 30,000 $ 200,000 $700,000 $ 35,000 $100,000 $110,000 $ 10,000 $ 75,000 $150,000 $ 465,000 $615,000 $ 225,000 $ 415,000 $ 60,000 $ 35,000 $ 32,000 $165,000 $ 330,000 $ 25,000 included above $100,000 $ 30O,0O0 $120,000 $165,000 $ 80,000 $ 25,000 $ 50,000 $ 380,000 $110,000 $ 527,000 $1~100~000 $4,564,000 $5,862,000 $ 680,000 $ 879,000 $5,244,000 $6,741,300 1. Individual project component values adjusted for material cost inflation. 032505 c:\..\02101\estimated const cost table 032205 3377 Coach Lane, Suite K Cameron Park, CA 95682 Phone 530.677.5286 Fax 530.677.5606 OWEN ENGINEERING & Management Consultants, Inc. Attachment March 30, 2005 Ms. Ann Burck City of Ukiah Department of Public Utilities 300 Seminary Avenue Ukiah, CA 95482 Re: City of Ukiah Water Treatment Plant Expansion Project OEMC Project No. 04-275.2 Negotiated Contract Dear Ann: This letter is to explain the bidding circumstances and provide a recommendation for the City to consider with respect to building the Water Treatment Plant. We understand that the Design Engineer SPH and Associates will provide a cost analysis to address issues from the engineering perspective. This winter and spring a significant number of water and wastewater treatment plant projects were bid in Northern California. Consequently, obtaining competent contractors has become difficult. We have been able to solicit a negotiated proposal from a very reputable firm K.G. Walters from Santa Rosa. K.G. Walters has put together a team and plan to meet the City's needs at a fair price. The history of the bidding is as follows: Advertising - This project has been advertised over the last two years with the expectation that it would bid this winter. In addition, we called most all of the firms that we know would be capable of building these facilities. Plan Distribution - Plans and Specifications were made available and ultimately 15 sets were distributed to plan rooms and 26 were distributed to contractors, subcontractors and suppliers. Formal Advertisement - Formal advertisements were sent to plan rooms, contractors, as well as the notification in the local news papers. Bid Period - The initial bid date was set at February 3, 2005. When it became apparent that few if any bids would be received, the bid period was extended to February 24, 2005. The overall bid advertising period was '7 weeks. · Bid Date - On February 24, 2005, no bids were received. Specializing in Water, Recycled Water & Wastewater Treatment Systems Plant Management · Construction Management. O & M Services · Process Design AGENDA ITEM NO: MEETING DATE: April 6, 2005 SUMMARY REPORT SUBJECT: RECEIPT OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR 2002-2003. This agenda item officially presents the Audited Financial Statements for the fiscal year ended June 30, 2004 for the Council's acceptance. We would like to draw Council's attention to the two key elements most users immediately turn to, both of which reflect positive results for the City: Independent Auditors' Report (paRes 1-2) This is the heart of the Statements, where the auditors state their formal opinion that the Statements "... present fairly, in all material respects the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregated remaining fund information of the City of Ukiah as of June 30, 2004..." The City has again received an unqualified opinion, which combined with no audit findings is the highest rating possible. This is the first thing the bond purchasers, other debt holders and grant issuers want to see. Schedule of Findinqs and Questioned Costs (page 55) This letter acts as a summary of the auditor's work on the "Single Audit" required for Federal and State grant issuers. Any findings or questioned costs require action and can have multiple negative consequences. Once again the City had a clear report with no findings or questioned costs. (continued on page 2) RECOMMENDED ACTION: Accept and file the Audited Financial Statements for the Year ended June 30, 2004 ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staff'with alternative direction. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: ended June 30, 2004 Mike McCann, Finance Director Candace Horsley, City Manager Bound copy of Audited Financial Statements for the Year Candace Horsley, City ~anager Stephen Herr, CPA, of Davis Hammon & Co., Certified Public Accountants, lead the audit team who prepared the City of Ukiah's financial statements for the year ended June 30, 2004. Davis Hammon & Co. has audited the City's financial statements for a number of years and has a good understanding of the City's operations, procedures and staff. The audit is conducted by a experienced team of CPA's who are well versed in municipal accounting and particularly thorough in their handling of cash & investments, grants and debt accounting. Outline of Audited Financial Statements The following material is provided as guide for reading the Statements. Staff is available to the Council and public to schedule time to review the Statements in greater detail. Prior year Statements are also on file and available for review. The Statements are actually a 57 page bound document consisting two major sections each containing a number of separate letters, reports and schedules. REPORT PaRes Table of Contents i-ii Financial Section Independent Auditors' Report Management's Discussion and Analysis Government-wide Financial Statements Fund Financial Statements Notes to Financial Statements Required Supplemental Information 1-2 3-13 15-16 17-26 27-43 45-46 Single Audit and Other Compliance Schedule of Expenditures of Federal and Other Awards 48-49 Notes to Schedule of Expenditure... 50 Independent Auditor's Report on Compliance and Internal Control Over Financial Reporting... 51-52 Independent Auditor's Report on Compliance with requirements of Major Program...OMB Circular A-133 53-54 Schedule of Findings and Questioned Costs 55 Independent Auditor's Report on Appropriations Limit Worksheet 56-57 Mana.qement's Discussion and Analysis (pa,qes 3-14) This section is a narrative overview and analysis on the financial information as well as Audit Contract Extension Page 2 of 5 April 6, 2005 some discussion of future events and considerations prepared by City staff. As a newly required section, the format and content will continue evolve in future years. Government-wide Financial Statements (pages 15-16) These two statements are also newly required by GASB 34 and are designed to present a single-page overview of all City controlled operations. All activities of the City are identified as either Governmental Activities or Business-type Activities. Governmental Activities are provided for the general population and largely funded by taxes. Business- Type Activities charge fees to users and generate all or most of the money necessary to pay their own expenses. Most significantly, these statements are presented on a full accrual basis, as is used in private industry, and include capital assets, long-term debt and other non-current transactions. On page 15, the "Statement of Net Assets" looks much like a normal balance sheet, with three sections: Assets, Liabilities, and Net Assets. The terminology uses Net Assets instead of Fund Balance to describe the net financial position of the City. On page 16, the "Statement of Activities", is an entirely new presentation developed by GASB to summarize the year's activity in a way that is believed to be more useful to the investment community and other Statement users. The top portion of the statement lists each governmental and business-type activity down the left side. For each activity expenses and then program revenues and finally the net change in net assets are displayed across the page. The Iowerportion lists general revenues by source and then summarizes the total effect of the year's activity on the City's financial position. The ending balances on this report will equal the ending balances on the Statement of Net Assets. Fund Financial Statements for Governmental Funds - (pa.qes 17-19) These are the traditional fund reports, based on the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash while remaining silent on long-term asset and liabilities, On page 17, the "Balance Sheet" identifies assets liabilities and fund balances for the General Fund, Other Governmental Funds and Total columns. The report ends with a list of items not reported in the Governmental Funds to demonstrate how the Fund statements reconcile with the new "Statement of Net Assets" on page 15. On page 18, the "Statement of Revenues, Expenditures and Changes in Fund Balances" lists Revenue, Expenditures and Other Financing Sources (Uses) and compares with the Income Statement prepared in previous years. On page 19, the third report in this section reconciles the Net Change in Fund Balances from the "Statement of Revenues, Expenditures and Changes in Fund Balances" to the Audit Contract Extension Page 3 of 5 April 6, 2005 Change in Net Assets for Governmental Activities on Page 16. Fund Financial Statements for Business-type Funds - (paRes 20-26) The activities of the Proprietary Funds (i.e. Business-type or Enterprise Funds) are identified in the reports on pages 20 through 24. The Fiduciary Funds are identified on pages 25 and 26. Notes to Financial Statements (paRes 27-42) In addition to the financial statements themselves, the "Notes to Financial Statements" provide important additional information about the financial condition of the City and the manner in which business is conducted. The Notes are reformatted from prior years to comply with the new reporting requirements: Note 1, Summary of Significant Accounting Policies, discusses other entities that are included in the financial statements and the City's policies regarding how various assets, liabilities, revenues and expenses are recorded in the financial statements. The sub-sections of this note are: A) Reporting Entity; B) Government-Wide and Fund Financial Statements; C) Measurement Focus, Basis of Accounting, and Financial Statement Presentation; and, D) Assets, Liabilities, and Net Assets or Equity. Note 2, Reconciliation of Government-Wide and Fund Financial Statements, discusses the new presentation of Government-Wide and Fund Financial statements as the basic required financial reports. Note 3, Stewardship, Compliance and Accountability, discusses budgetary information, Funds with expenditures in excess of appropriations, and Funds with deficit Equities. Note 4, Detailed Notes on All Funds, provides information concerning: A) Deposits and Investments; B) Capital Assets; C) Interfund Receivables, Payables and Transfers; D) Capital Leases; E) Long-Term Debt; and, F) Segment Information. Note 5, Other Information, lists information related to: A) Risk Management; B) Related Organizations; C) Contingencies; D) Landfill Closure and Postclosure Costs; E) Service Contracts; F) Employee Retirement Systems; and G) Deferred Compensation. Required Supplemental Information (pages 45-46) Schedule I compares the General Fund Revenues and Expenditures to Budget. Schedule II provides information relative to the City of Ukiah's participation in the Public Employees' Retirement System. Schedule of Expenditures of Federal and Other Awards (paRes 48-49) Audit Contract Extension Page 4 of 5 April 6, 2005 The Schedule of Expenditures of Federal Awards and Other Awards is presented in a standardized format required of all recipients of significant federal funding. This report identifies each grant award, receipts or revenue and disbursements or expenditures for each grant. Compliance and Internal Control (paRes 51-54) The Compliance and Internal Control section is the area where the auditors report on compliance in accordance with government auditing standards, compliance with general federal requirements, and on internal control structure. Report on Appropriations Limit Worksheets (paRes 56-57) In accordance with League of California Cities guidelines, the auditors performed a review of the appropriations limit work papers prepared by City staff. Based on the limited procedures performed, the auditors noted no exceptions. Recommended action Staff recommends receiving and filing the audited financial statements for the year ended June 30, 2004. Audit Contract Extension Page 5 of 5 April 6, 2005 AGENDA ITEM NO: /~) ~' MEETING DATE: April 6, 2005 SUMMARY REPORT SUBJECT: APPROVE EXTENSION OF CONTRACT WITH DAVIS HAMMON & CO. CPA FOR FINANCIAL AUDIT SERVICES FOR THE FISCAL YEAR ENDED JUNE 30, 2005 IN AN AMOUNT NOT TO EXCEED $33,425.00 AND AUTHORIZE THE CITY MANAGER TO SIGN THE EXTENSION. Davis Hammon & Co. CPA has completed a five year auditing services contract and one year extension with the audit of the fiscal year 2003-04. Staff is recommending the extension of the existing contract for one additional year to provide audit services for the fiscal year 2004-05. Davie Hammon & Co. is willing to provide services at the same fee schedule offered in 2004. In the coming months, the Finance Department is committed to spending significant time and resources in the preparation of a budget for the new year in difficult financial environment, to closing out the current fiscal year on timely basis and to filling several key positions vacated by management staff retiring or accepting new assignments. Auditors at Davis Hammon & Co. are familiar with the City's accounting practices and staff, able to refer to current work papers and utilize senior personnel to prepare the City and RDA financial statements and other audited reports in a timely and cost effective manner. Their level of expertise and knowledge of the account allows them to minimize the time and attention required of City staff during and after fieldwork. (continued on page 2) RECOMMENDED ACTION: Authorize the City Manager to sign an agreement with Davis Hammon & Co. for a fiscal year 2004/2005 financial auditing services in an amount not to exceed $33,425.00. ($23,825 for City services, $4,600 for Redevelopment Agency services and up to $5,000 for changes in audit scope). ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staffwith alternative direction. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: Mike McCann, Finance Director Candace Horsley, City Manager Approved~ Candace Horsley, City, Manager Typically govemments acquire audit services in two ways: 1) Solicit formal proposals for services (RFP) or 2) Exercise options to extend existing contracts. Significant effort will be required to prepare the RFP and evaluate the responses. Typically the Finance Department prepares the RPF document, distributes it and meets with interested audit finns to inform them about financial practices and procedures in the City. Sometimes formal bidder conferences are held. Some cities require bidders to attend the bidder conference. Evaluation is usually performed by a committee that includes staff and Council members. This committee is charged with presenting a recommendation to the City Council. Mr. Stephen Herr of Davis Hammon & Co., has indicated his firm's willingness to extend the contract for one more year with the same fee schedule charged in 2004, not to exceed $28,425.00. If, however, there is a material increase in the scope of the audit due to changes in 2004-05 activity (bond issue, significant new grants, etc.) they would expect to be compensated for the increased work. Staff recommends the City Council approve a one year extension of the audit services contract with Davis Hammon & Co. in an amount not to exceed $28,425.00 ($23,825 for City services and $4,600 for Redevelopment Agency services) with authority for the City Manager to approve up to an additional $5000 if required for a material increase in audit scope. Staff further recommends planning a procurement period for future years' audit services in the January to March 2006 time period.