Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
2007-04-04 Packet
CITY OF UKIAH CITY COUNCIL AGENDA Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 April 4, 2007 6:00 p.m, 5:15 PM Special Redevelopment Meeting 6:00 PM 1. ROLL CALL 2. PLEDGE OF ALLEGIANCE PROCLAMATIONS/'INTRODUCTIONS/PRESENTATIONS a. Presentation: The PlaceMeant Project--"Stories of Why Where Matters" b. Proclamation - Recognizing Ukiah Main Street Program's Service to the Residents of Ukiah By Celebrating its 20th Anniversary PETITIONS AND COMMUNICATIONS None APPROVAL OF MINUTES a. Regular Meeting Minutes of February 7, 2007 b. Special Meeting Minutes of March 20, 2007 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 mil call vote by the City Council. Items may be removed from the Consent Calendar upon request of a Councilmember or a citizen in which event the item will be considered at the completion of all other items on the agenda. The motion by the City Council on the Consent Calendar will approve and make findings in accordance with Administrative Staff and/or Planning Commission recommendations. a. Accept Report of Audited Financial Statements and Report of Independent Accountants for Fiscal Year 2005-2006 b. Report to City Council Regarding the Purchase of a Comprehensive Irrigation Evaluation from David Bigler Associates for the Ukiah Municipal Golf Course in the Amount Not To Exceed $6,000.00. c. This is to Notify the City Council of the Purchase of One Paperless Chart Recorder from MANCO in the Amount of $5,905.44 d. Status of Lake Mendocino Hydroelectric Power Plant Equipment Refurbishment Emergency e. Award of Bid for 6,000 Ft. of 750 MCM Aluminum, 600v, Single Conductor Cable to American Wire Group in the Amount of $13,007.58 f. Adoption of Resolution of the City Council of the City of Ukiah Approving the Issuance of Tax Allocation Refunding Bonds by the Ukiah Redevelopment Agency to Refund a 1994 Loan Agreement 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 Aot regulations do not allow action to be taken on audience comments in which the subject is not listed on the agenda. PUBLIC HEARINGS (6:15 PM) a. Adoption of Resolution Adjusting Fees for the Ukiah Municipal Golf Course 10. UNFINISHED BUSINESS a. Status Report on the Anton Stadium Renovation Project; Request for Determination of the Historical and Cultural Significance of the Grandstand Structure; Authorize Preparation of a CEQA Categorical Exemption and Issuance of a Demolition Permit b. Adoption of Resolution Adopting Awahnee Water Principles c. Discussion and Possible Action on Acquisition of the Mattern Parcel by City/District Sewer Operations Fund 11. NEW BUSINESS a. Discuss and Determine Council's Willingness to Partner with the County of Mendocino Using City or Redevelopment Funds and/or Other In-Kind Resources in Support of a Downtown Location for the New Criminal Justice Center/Courthouse b. Report to City Council Requesting Authorization for the City Manager to Negotiate and Execute a Contract for Recreation Software from Gev Partner for the Community Services Department, and Authorization for a Budget Adjustment in the Amount of $15,150.00. c. Review and Provide Direction Regarding Ukiah Campaign Reform Act d. Discussion and Direction Regarding Planning Commission Appointment Process--Mayor Rodin e. Report on Ukiah Valley Area Plan (UVAP) Community Meeting and Request for Authorization to Submit Comments to Mendocino County Board of Supervisors on Economic Report Prepared by Economic & Planning Systems, Inc. (EPS) f. Set Dates for Fiscal Year 2007-08 Budget Hearings g. Discussion and Possible Action on "Style" of City Council Meeting Minutes 12. COUNCIL REPORTS 13. CITY MANAGER/CITY CLERK REPORTS 14. CLOSED SESSION a. Conference with Real Property Negotiators (§ 54956.8); Property: APN 001-020-09 Negotiator: Candace Horsley, City Manager Negotiating Parties: City of Ukiah/County of Mendocino Under Negotiation: Price and terms b. Employee neqotiations; Department Directors Barqaininq Unit Negotiator: Candace Horsley, City Manager 15. ADJOURNMENT Please be advised that the City needs to be notified 72 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 30th day of March, 2007. Gall Petersen, City Clerk ITEM NO. z.,= MEETING DATE: ~ A_.~.Z~:~., .2qQ7 . _ AGENDA SUMMARY REPORT SUBJECT: PRESENTATION: THE PLACEMENT PROJECT- "STORIES OF WHY WHERE MATTERS" Erica Cooperrider and Catherine Magruder, artists with Ukiah Players Theatre, introduced a digital stow created for "The PlaceMeant Project: Stories of Why Where Matters" - a two year collaboration with the Center for Digital Storytelling (funded by the James Irvine Foundation), to the City Council on February 7, 2007. The "project" is designed to help community members in Ukiah and around Mendocino County connect personally and creatively with this place we call home. Digital stories are 3 - 5 minute "movies" combining a voice-over with photographs and music. "PlaceMeant Project" digital stories illuminate and celebrate what community members value about this town and this region; they are a rich addition to the current conversation about how we collectively imagine and manifest the future of our community. The presentation this evening is the second of four presentations. RECOMMENDED ACTION: Receive presentation. ALTERNATIVE COUNCIL POLICY OPTIONS: Not Applicable. Citizen Advised: Yes Requested by: Catherine Magruder, Ukiah Players Theater Prepared by: Gall Petersen, City Clerk Coordinated with: Candace Horsley, City Manager AP p ROVE D: ~i ~ ~¢~--~~ Candace Horsley, City,Manager PROCLAMATION RECOGNIZING UKIAH MAIN STREET PROGBAM'S SERVICE TO THE RESIDENTS OF UKIAH BY CELEBRATING ITS 20 .A NJNIVERSARY WHEREAS, the Ukioh Main Street Program was initiated in 1987 to revitalize historic downtown and the Ukiah Main Street Program follows the National Main Street Approach to Downtown Revitalization; and WHEREAS, Main Street Programs have earned national recognition as a practical strategy appropriately scaled to a community's local resources and conditions; oa~d WHEREAS, the mission of the Ukiah Main Street Program is to preserve and enhance what makes Ukiah a great place and the Ukiah Main Street Program envisions the heart of Ukiah being the economic and cultural center of a thriving small town community; and WHEREAS, building on downtown's inherent assets-rich architecture, personal service, traditional values and most of all, a sense of place, the Main Street approach has rekindled entrepreneurship, downtown cooperation and civic concern; and WHEREAS, the Ukiah Main Street Program volunteers have donated thousands of hours of work towards preserving and enhancing what makes Ukiah a great place and the volunteer Board of Dixectors of the Ukiah Main Street Program all contribute talents, time, ~ and treasure to Downtown nkiah; and WHEREAS, the Ukiah Main Street Program coordinates a number of events that showcase Ukiah's downtown including the Annual Country Pumpkinfest, Taste of Downtown, Fabulous Flashback Car Show, Cinco de Mayo Festival, Home for the Hohdays, Moonlight Movie Madness, Downtown HalIoween, Deep Valley Brew Tasting, Comedy Alley and the Holiday Trolley; and ~ WHEREAS, the Ukiah Main Street Program has been a positive contributing factor ~ that has resulted in strengthening the economic climate and improving business relations in downtown Ukiah. NOW, THEREFORE, I, Mari Rodin, Mayor of the City of Ukiah, on behalf of my Thomas wish to commend Ukiah Main Street Program for its service to the Ukiah community in celebration of its 20t~ Anniversary and thank the many volunteers whose dedication, and hard work have ir~sured the future of Downtown Ukiah. Mari Rodin, Mayor April 4, 2007 3b CITY OF UKIAH CITY COUNCIL MINUTES Regular Meeting CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 February 7, 2007 6:00 PM The Ukiah City Council met at a Regular Meeting on February 7, 2007, the notice for which being legally noticed on February 2, 2007. Preceding the regular meeting was a Special Ukiah Redevelopment Agency meeting scheduled to begin at 4:30 pm. Mayor Rodin called the meeting to order at 6:05:17 PM[. Roll was taken with the following Councilmembers present: Thomas, Crane, McCowen, Baldwin, and Mayor Rodin. Staff present: City Manager Horsley, City Attorney Rapport, Building & Planning Director Stump, IT Supervisor Butler, Water Utilities Project Engineer Burck, Water Utilities Engineering Specialist Sands, Economic Development Coordinator Ballek, Fire Chief Clarabut, and Deputy City Clerk Brown. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Rodin. PROCLAMATIONS/INTRODUCTIONS/PRESENTATIONS a. Presentation: The PlaceMeant Proiect - "Stories of Why Where Matters" Kate Magruder and Erica Cooperrider presented one of the project slideshows. b. Introduction of New Employee - Cody Jennin.qs~ Information Technology Specialist Steve Butler introduced Cody Jennings to the City Council. PETITIONS AND COMMUNICATIONS There were none. APPROVAL OF MINUTES a. Special Meeting of November 2, 2006 MIS CranelMcCowen to approve. Motion carried by an all AYE voice vote. b. Regular Meeting of January '17, 2007 MIS McCowenlBaldwin to approve. Motion carried by an all AYE voice vote. RIGHT TO APPEAL DECISION Mayor Rodin read the right to appeal policy. CONSENT CALENDAR MIS Baldwin/Thomas approving the Consent Calendar items "a" through "m" as follows: a. Rejection of Claim for Damages Received from Mark Ashiku and Referral of Claim to the Powers Authority, Redwood Empire Municipal Insurance Fund, amended. Approval of Notice of Completion for Mendocino Drive Storm Drain Replacement Specification No. 06-12 c. Annual Review of Traffic Signalization Fund for South Orchard Avenue and East Gobbi Street f. g. h. j. k. Annual Review of the Redwood Business Park (Airport Industrial Park) Capital Improvement Fees Authorization of Purchase of Laserfiche Document Management from ECS Imaging, Inc. in the Amount of $19,801.25 Report Regarding Acquisition of Computers from Dell Marketing L.P. in the Amount of $6,133.64 Authorization of a Budget Amendment for the City's Share of the County Animal Shelter Facility Construction Costs and Operating Costs Report Regarding Acquisition of Services from Johnson's Quality Tree Care in the Amount of $6,325.00 Status of the Lake Mendocino Hydroelectric Power Plant Equipment Refurbishment Emergency Adoption of Resolution 2007-05 Removing 45 Lineal Feet of On-Street Parking Along Thomas Street Near South State St Report to Council on the Purchase of a Carport Structure from Rainbow Agricultural Services in the Amount of $5,886.38 for Observatory Park Historical Renovation Report to the Ukiah City Council on the Purchase of 250 Yards of 60/40 Infield Mix from Borges Transfer Service in the Amount of $9,918.81 for the Ukiah Sports Complex Request for Authorization to Purchase Networking Equipment from AT&T in the Amount of $14,307 Plus Shipping and Approval for a Budget Amendment and Transfer to Fully Fund the Purchase Motion carried by an all AYE Voice Vote. AUDIENCE COMMENTS ON NON-AGENDA ITEMS There were none. PUBLIC HEARINGS (6:15 PM) a. Conduct Public Hearing to Consider Adoption of a Resolution Establishing a $50.00 Fee for Processing Sewer Lateral Testing Permits, Inspecting the Sewer Lateral Test, Reviewing Test Results and Issuing Sewer Lateral Testing Certificates 6:3!:07 PM[ Project Engineer Burck reported. The City of Ukiah's Private Sewer Lateral Testing Program was effective January 13, 2007. The program requires the applicant to obtain a permit from the City and to perform the test under the supervision of the City. The recommendation is to adopt a Resolution establishing a $50.00 fee for processing the sewer lateral testing permits, inspecting sewer lateral tests, revising test results and issuing sewer lateral testing certificates. Public Hearing Opened: 6:34:49 PM Kathy Hayes submitted a letter to the City Council from NORBAR dated February 7, 2007 commenting on the proposed fee for processing sewer lateral testing permits and the proposed changes. Public Hearing Closed: 6:37:2,8 PM MIS Crane/Thomas approving the fee. Motion carried by the following roll call vote: AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. b. Hearing on the Issuance of Tax-Free Bonds for Low Income Housing Proiect by 10. California Statewide Communities Development Authority, as Required by the Tax and Equity Fiscal Responsibility Act of 1982 {"TEFRA") and Possible Adoption of Resolution Approving Financing - Terrace 1 Apartments at 1164 Mulberry Street, Ukiah 6:2] :05 PM Attorney Rapport and Economic Development Coordinator Ballek reported. Star Development has asked the City to adopt a resolution to approve issuance of tax-exempt bonds for financing the acquisition and rehabilitation of a 41-unit housing project. Public Hearing Opened: 6:28:54 PM No public comment was given. Public Hearing Closed: 6:29:05 PM MIS McCowenlBaldwin approving the recommended action by resolution to issue tax exempt revenue bonds by California Statewide Communities Development Authority in an aggregate principal amount not to exceed $4.0 million, to assist in the financing of the acquisition and rehabilitation of the Ukiah Terrace I Apartments. Motion carried by the following roll call vote: AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. UNFINISHED BUSINESS a. Discussion and Possible Approval to Proceed with Request for Bids for Test Well Drilling 6:52 PM Project Engineer Burck introduced Martin Steinpress, Brown & Caldwell, who updated the City Council regarding the well siting study. A memo was written addressing the specific concerns expressed at the previous meeting and Mr. Steinpress provided a summary of the Oak Park Neighborhood meeting. The recommended action was to proceed with request for bids for test well drilling at Oak Manor and Riverside Parks. Public Comment Opened: 7:21:33 PM Lisa Mammina stated her concern about Oak Manor Park as a well site. Pinky Kushner would like to see more background data and how the current wells are producing. Steve McKenzie is not against a test well at Oak Manor Park but expressed concern about the use of chlorine and the aesthetics. Barbara Spazek stated that if the City enters discussion with Redwood Valley on pumping water out of the lake, she would appreciate it if the Russian River Flood Control District were involved. Public Comment Closed: 7:36:09 PM The City Council expressed interest in the exploration of other possible sites on private property. MIS BaldwinlMcCowen to proceed with the test well drilling in the northernmost portion of Riverside Park, and to explore other options as discussed. Motion carried by the following roll call vote: AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. b. Participation at Second Joint City Council/Board of Supervisors Ukiah Valley Area Plan (UVAP) Meeting 7:53 PM Director Stump reported that the Mendocino County Planning Team and UVAP consultants have tentatively slated the second ioint meeting with the City Council to discuss an emerging vision and begin land use and design alternative discussions, planning issues, development areas, etc. The meeting was set for the evening of April 24, at the Ukiah Valley Conference Center. c. Status Report - Ukiah Valley Area Plan (UVAP) Director Stump gave an update of the Ukiah Valley Area Plan. A community workshop will be held on Saturday, May 10, focusing on land use and design. Public Comment Opened: 7:58:17 PM Pinky Kushner was concerned about a comment made at the recent joint City/County meeting that the Ukiah Valley appeared to be moving away from a resource based and toward a service based economy. Public Comment Closed: 8:00:07 PM Recessed: 8:01:30 PM Reconvened: 8:12:44 PM d. Introduction and First Reading by Title of an Ordinance of the City Council of the City of Ukiah Amending Articles 1 and 18 of the Division 4~ Chapter 2 of the Ukiah City Code, Pertaining to the Definitions Used in the City of Ukiah Sewer Ordinance and to the Replacement and Repair of Sewer Laterals; Authorize a Request for Proposals to Qualified Engineering Consultants to Assist Preparation of Administrative Guidelines and Other Support Services Pertaining to Development and Implementation of a Sanitary Sewer Management Plan (SSMP) Project Engineer Burck and Mary Grace Pawson of Winzler & Kelly reported. The recommended action was to introduce and conduct the first reading of the proposed Ordinance, provide direction to staff on additional policy issues not addressed in the proposed Ordinance, and authorize staff to seek proposals for preparation of Administrative Guidelines and other support services pertaining to development and implementation of a Sanitary Sewer Management Plan (SSMP). Public Comment Opened: 9:00:04 PM Kathy Hayes, North Bay Association of Realtors, was concerned about the cost to property owners for initial inspection, and the need for guidelines. Public Comment Closed: 9:03:14 PM MIS Baldwin/Crane introducing the ordinance by title only. Motion carried by the following roll call vote: AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. Deputy City Clerk Brown read the title of the Ordinance, "An Ordinance of the City Council of the City of Ukiah Amending Articles 1 and 18 of the Division 4, Chapter 2 of the City of Ukiah City Code, Pertaining to the Definitions used in the City of Ukiah Sewer Ordinance and to the Replacement and Repair of Sewer Laterals; Authorize a Request for Proposals to Qualified Engineering Consultants to Assist Preparation of Administrative Guidelines and 11. Other Support Services Pertaining to Development and Implementation of a Sanitary Sewer Management Plan (SSMP)." MIS Baldwin/Thomas introducing the Ordinance; 9:15:42 PM Attorney Rapport proposed the following amendments be incorporated: 1) Section 3799.3 will read after the amendment: "The sewer lateral shall be inspected and tested using the following methods as allowed by and in accordance with standards adopted by the Director of Ukiah Public Utilities." 2) There was a typographical error in Section 3799.2, Subsection C, second line, end of that line "shall be tested in accordance with the applicable provisions" and an extra "the provisions" that needs to be stricken. And 3) wording regarding the plumbing code: Section 3799.4, Subsection D, the reference to the uniform plumbing code should be "The plumbing code as adopted in the City of Ukiah." The maker and seconder of the motion accepted the proposed amendments; Motion carried as amended by the following roll call vote AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. MIS Baldwin/McCowen authorizing Recommendation Number 3, authorizing the RFP for a consultant. Motion carried by the following roll call vote AYES: Councilmember Thomas, Crane, McCowen, Baldwin, and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None. NEW BUSINESS a. Discussion and Possible Action on Inland Water and Power Commission Issues including Membership in Russian River Watershed Association, Matching Funds for Coyote Dam and Alternative Water Sources No public comments received. MIS McCowenlCrane that we encourage our representative to the IWPC to support the direction of the other members of Inland Water and Power Commission with regard to membership in the Russian River Watershed Association, that we support funding our proportionate share of the Coyote Dam Feasibility Study--whether that turns out to be $60,000 or $75,000, and that we support our proportionate share for the study of alternate water sources. Motion carried with an all AYE voice vote. b. Adoption of the City of Ukiah's Multi-Hazard Emergency Response Plan Fire Chief Clarabut reported the Emergency Response Plan summarizes how the City responds to specific emergencies or disasters and covers the actions from preparation through recovery. It includes National Incident Management System (NIMS) new regulations resulting from 9/11, and coordination with Federal Agencies. Technical corrections and a user-friendly reorganization of the material are being incorporated. By Consensus the item was continued to the February 21 City Council meeting as a Consent Calendar item for approval. Councilmember McCowen recommended deferral of consideration of the next item, 11c., until after the financial projections are presented to the Redevelopment Agency, as a courtesy to staff. There were no objections voiced. Adjourned to the Redevelopment Agency: 9:39:15 PM Reconvened: 10:25 PM c. Discussion of Goal Setting Workshops Dates and Strategic Planning Process for City Council City Manager Horsley proposed the options of two potential dates for the City Council to meet with the City Directors, February 28, or March 1, 4 p.m. She anticipated the session to take 3 hours. The City Council decided to meet Thursday, March 1, at the Ukiah Valley Conference Center, at 4 p.m. Dinner will be included. The City Council discussed an interest in having a strategic planning session after the meeting with the Directors, and prior to the Fiscal Year Budget adoption. A Committee of Mayor Rodin and Vice Mayor Crane were established to work out details for a proposal to bring back to the City Council. 12. COUNCIL REPORTS Councilmember Crane reported that at the annual strategio planning session for the Northern California Power Agency (NCPA) they revisited legislation that will impact the City's power costs. The Energy & Commerce Committee's ruling drives higher costs for energy in California by requiring the long-term "divorce" from coal-fired plants i0:44:23 PM. City Manager Horsley will research information regarding the power mix topic for a potential future agenda item. Councilmember Thomas attended a training session about how to get eligible people onto food stamps as an economic source of revenue for the City. Counciimember McCowen attended a Local Agency Formation Commission (LAFCO) meeting and discussed the Executive Director's interim report of the Russian River Watershed Municipal Service Reviews including recommendation that LAFCO adopt Option 3 authorizing the Director to declare co-terminus spheres of influence 10:SI:Id PM for all the jurisdictions, write the MSR's and revisit the issue in five years--or whenever groundwater basin studies were prepared, water rights permits were approved, the implications of the Potter Valley diversion is understood, etc. This, rather than meaning come back in five years or less, could mean come back in five years or more. The LAFCO Board unanimously approved moving forward with Option 3 and directed the Executive Director to bring the item back for approval at their next meeting. Councilmember McCowen requested this be a City Council agenda item on February 21 to see how and if the City should respond. Councilmember Baldwin reported on an Inland Water and Power Commission (IWPC) meeting and the comments from the new Supervisor John Pinches on topics of the Coyote Dam project, IWPC project, etc and was talking in terms of millions of dollars being committed by the County versus their one-fifth share. He also requested a future agenda item in the next 8 weeks or so on traffic speed enforcement in the City, and what we have done over the last five years, and what we are doing now. ]0:54:00 PM Mayor Rodin referenced a letter written by the City in November about the City's intentions regarding the Ukiah Valley Area Plan (UVAP), the tax sharing agreement, and working on MSR's - which can be part of our discussions about LAFCO at the next City Council Meeting. Last week she attended the Institute on Sustaining the Economy in Sonoma County which met at Amy's Kitchen that had been looking to expand operations, and discussed why they chose Medford over Ukiah. A comparison of electricity costs was one reason. City Manager Horsley added another reason was they wanted to locate in our City limits, but we didn't have enough land. Mayor Rodin also reported we had a successful League of California Cities division meeting Friday, hosted in Ukiah, and extended her thanks to the City Council for attending, and to staff for making the arrangements. 13. CITY MANAGER/CITY CLERK REPORTS City Manager Horsley reported on the completion of a City of Ukiah City Council Manual which she anticipates having available next week. The largest change is a City Council handbook overview for policy and administration and roles of city council and city staff, information about meetings, rules and meeting decorum, travel, and benefits. Councilmember Baldwin stated that photos of City staff in the binder and on the website would be helpful. Adjourned to Closed Session: ! ! :00:30 PM[ 14. CLOSED SESSION a. Conference with Real Property Negotiators (GCS 54956.8) Property: APN 156-240-02, 03, 06, 07, 08 (Ukiah); Negotiator: Candace Horsley, City Manager; Negotiating Parties: City of Ukiah & David Hull/Ric Piffero; Under Negotiation: Price and terms of payment. No action taken. Conference with Real Property Negotiators (GCS 54956.8) Property: 1041 Low Gap Road, Ukiah Negotiator: Candace Horsley, City Manager Negotiating Parties: City of Ukiah/MCOE Under Negotiation: Price and terms of payment Reconvened: 11:30 PM No action taken. 15. ADJOURNMENT Thero being no further business, the meeting was adjourned at 11:30 PM. Linda C. Brown, Deputy City Clerk CITY OF UKIAH CITY COUNCIL AGENDA Special Adjourned Meeting Minutes CIVIC CENTER COUNCIL CHAMBERS 300 Seminary Avenue Ukiah, CA 95482 March 20, 2007 5:30 p.m. 5b The Ukiah City Council met at an adjourned Meeting on Mamh 20 2007, the notice for which being legally noticed on February 16, 2007. Mayor Rodin called the meeting to order at 5:37:46 P~¢[. Roll was taken with the following Councilmembers present: Thomas, Crane, McCowen, Baldwin, and Mayor Rodin. Staff present: City Manager Horsley, City Attorney Rapport, Building & Planning Director Stump, City Clerk Petersen Consultants: Gary Wetherford and Bob Wagner 2. UNFINISHED BUSINESS a. Consideration of and Possible Decision Re.qardin.q Petition to Chan.qe Place of Uso Under City's Appropriative Water Rights Permit City Attorney Rapport presented a brief review regarding the City of Ukiah's Water Rights Permit, with consultants Bob Wagner and Gary Weatherford present to field questions. Council members, Attorney Rapport and the Consultants entered into an extensive discussion regarding: · Shared points of diversion · Mapping depicting Place of Use and water district boundaries · Scope and Cost of EIR COMMENT OPENED TO PUBLIC 6:38 PM Daniel Meyers - Stated that data showing acreage involved currently in the Place of Use and the amount of acreage that will be included in the expanded Place of Use would be beneficial. Estelle Clifton - Encouraged Council to open up the permit process. Barbara Spazek - Questioned whether combining Points of Diversion and including specifics on emergency interties would be a separate process. Frank McMichael - Questioned whether there is a legal description to file with the map submitted for this meeting and questioned how it is determined whether a parcel is within or outside of the Place of Use. Lee Howard - Stated that the maps are inaccurate and questioned the changes that have been made. James Connerton - Encouraged Council to be cautious in making decisions that might compromise control over water sources and might open the gates to rampant development. PUBLIC COMMENT CLOSED 7:05:23 Lengthy discussion followed with Council members concurring that additional time is needed in order to receive additional information. MIS McCowen/Crane to direct staff, in consultation with the consultants, to prepare a letter to the State Board explaining that we are taking additional time to try to resolve some of the questions that have been raised tonight and our intention is to respond to the State Board within ninety days. Motion carried by a roll call vote as follows: AYES: Councilmember Thomas, Crane, McCowen, Baldwin and Mayor Rodin; NOES: None; ABSTAIN: None; ABSENT: None 7:58:42 PM As a result of comments made by the public, Mayor ' Rodin polled the Council asking for consensus on Option #1, as presented at the March 7, 2007 meeting. Option #1 changes the language in the permit to specify that the City will only serve water within the expanded Place of Use pursuant to the emergency intertie agreements or to areas that have been annexed to the City. Council members unanimously agreed to Option #1. 3. NEW BUSINESS Discussion of Ahwahnee Water Principles 7:58:49 PM Mayor Rodin introduced the Ahwahnee Water Principles as developed by the Local Government Commission, stating that if adopted, the principles would act as a guide for staff, Council, future Councils. Councilmember McCowen questioned that if the Council adopts these as goals the City would like to pursue, would the City be obligated to take any certain action. Attorney Rapport responded that some of the language could be limiting if applied literally. He recommended that the action taken by the Council be very clear in that it is not intended to be mandatory; these are general principals and desirable goals to pursue, and are not intended to act as a legal basis for challenging any decision the Council may make relating to the Principals. He recommended a preamble or clear statement of the intent of the Council that makes clear how the principals will be used. 8:01:36 ?M MIS McCowen/Baldwin to direct staff to prepare such a preamble and to bring the item back for adoption. Motion carried by the following roll call vote: AYES: Thomas, Crane, McCowen, Baldwin and Mayor Rodin; NOES: None; ABSENT: None; ABSTAIN: None 4. ADJOURNMENT There being no further business, the meeting was adjourned at 8:06:00 PM[ Gall Petersen, City Clerk 2 AGENDA ITEM NO: 7a MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: ACCEPT REPORT OF AUDITED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS FOR FISCAL YEAR 2005-2006 This agenda item officially presents the Audited Financial Statements for the fiscal year ended June 30, 2006 for the Council's acceptance. Aisc included under separate cover is a new document titled "Report of Independent Accountants". I do want to personally acknowledge our Accounting Operations Manager, Ms. Leigh Halvorsen who handled the year end closing process "solo" while the City was in transition of Finance Directors. The outcome of the financial audit demonstrates both the personal commitment and attention to detail in the daily work of her and the entire Finance team. The City once again had a "clean" audit. Both the Independent Auditors' Report (page 2) and the Schedule of Findings and Questioned Costs (page 52) within the Financial Statements document were completely clean, indicating that the City is in full compliance with accounting standards and the auditors had no procedural findings or questioned costs. Staff does want to point out the new document included under separate cover. The Report of Independent Accountants notes certain matters involving the City's internal control structure and its operations. These findings (pages 5-7) and submitted recommendations are designed to help the City make improvements and achieve operational efficiencies. Aisc included in the report is a statement (pages 3-4) on Required Communications with the City Council as required by professional standards. (continued on page 2) RECOMMENDED ACTION: Accept and file the City of Ukiah Audited Financial Statements and Report of Independent Accountants for the year ended June 30, 2006 ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staff with alternative direction. Requested by: Prepared by: Coordinated with: Attachments: Approved: Brent Smith, Finance Director Candace Horsley, City Manager 1) Bound copy of Audited Financial Statements for the Year ended June 30, 2006 2) Report of Independent Accountants Candace Horsley, City Manager%, Back.qround: Outline of Audited Financial Statements The following material is provided as guide for reading the audited Financial Statements. Staff is available to the Council to schedule time to review the Statements in greater detail. Prior year Financial Statements are also on file and available for review. The Statements are actually a 53 page bound document consisting of two major sections with each section containing a number of schedules, reports and narrative. REPORT Pa.qes 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 2 3-13 15-16 17-26 27-43 45-46 Sinqle Audit and Other Compliance Section Schedule of Expenditures of Federal and Other Awards 48 Notes to Schedule of Expenditure ..... 49 Independent Auditor's Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of the .....50 Independent Auditor's Report on Compliance with Requirements Applicable to Each Major Program...OMB Circular A-133 51 Schedule of Findings and Questioned Costs 52 Independent Auditor's Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet 53 Manaqement's Discussion and Analysis (paqes 3-13) This section is a narrative overview including analysis on the financial information as well as some discussion of future events and considerations prepared by City staff. Government-wide Financial Statements (paqes 15-16) These two statements are required by GASB 34 and are designed to present a single- page overview of all City controlled operations. All activities of the City are identified as either Governmental Activities or Business-type Activities. Governmental Activities are provided for the general population and largely funded by taxes. Business-Type Activities charge fees to users and generate all or most of the money necessary to pay their own expenses. Most significantly, these statements are presented on a full accrual Page 2 of 4 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" summarizes 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 oxpenses, program revenues and 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 - (pages 17-19) These are the traditional fund reports, based on the modified accrual method of accounting, which measures cash and all other financial assets that can readily be converted to cash while remaining silent on long-term assets and liabilities. On page 17, the "Balance Sheet" identifies assets, liabilities and fund balances for the General Fund, Other Governmental Funds and Total columns. The report ends with a list of items not reported in the Governmental Funds to demonstrate how the Fund statements reconcile with the "Statement of Net Assets" on page 15. On page 18, the "Statement of Revenues, Expenditures and Changes in Fund Balances" lists Revenue, Expenditures and Other Financing Sources (Uses) and compares with the Income Statement prepared in previous years. On page 19, the third report in this section reconciles the Net Change in Fund Balances from the "Statement of Revenues, Expenditures and Changes in Fund Balances" to the Change in Net Assets for Governmental Activities from Page 16. Fund Financial Statements for Business-type Funds - (paqes 20-26) The activities of the Proprietary Funds (i.e. Business-type or Enterprise Funds) are identified in the reports on pages 20 through 24. The Fiduciary Funds are identified on pages 25 and 26. Notes to Financial Statements (paRes 27-43) 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. Page 3 of 4 Note I "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 "Stewardship, Compliance and Accountability", discusses budgetary information, Funds with expenditures in excess of appropriations, and Funds with deficit Equities. Note 3 "Detailed Notes on All Funds", provides information concerning: A) Cash and Investments; B) Capital Assets; C) Interfund Receivables, Payables and Transfers; D) Capital Leases; E) Long-Term Debt; and, F) Segment Information. Note 4 "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 (paRes 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) 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 (paqes 50-51) 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 53) 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 City of Ukiah Financial Statements and Report of Independent Accountants for the year ended June 30, 2006. Page 4 of 4 ATrACHMENT~ / CITY OF UKIAH FINANCIAL STATEMENTS TOGETHER WITHINDEPENDENT AUDITORS'REPORTS FOR THE YEAR ENDED JUNE 30, 2006 CITY OF UKIAH TABLE OF CONTENTS JUNE 30, 2006 Financial Section independent Auditors' Report Management's Discussion and Analysis Basic Financial Sf;atements Government-wide Financial Statements: Statement of Net Assets Statement of Activities Fund Financial Statements: Balance Sheet- Governmental Funds Statement of Revenues, Expenditures, and Changes In Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses, and Changes In Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Statement of Fiduciary Net Assets - Fiduciary Funds Statement of Changes in Fiduciary Net Assets - Fiduciary Funds Notes to Financial Statements Exhibit One Two Three Four Five Six Seven Eight Nine 20 23 27 Page 2 3 13 15 16 17 18 19 21 22 24 25 26 43 CITY OF UKIAH TABLE OF CONTENTS JUNE 30, 2006 Reouired Suoolemental Informetion Schedule of Revenues, Expenditures, and Changes In Fund Balances - Budget and Actual - General Fund Schedule of Funding Progress - Public Employees' Retirement System Sin(~le Audit And Other Compliance Seq~i0n Schedule of Expenditures of Federal and Other Awards Notes to the Schedule of Expenditure of Federal And Other Awards Independent Auditors' Report on Compliance and Internal Control Over Financial Reporting Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditors' Report on Compliance With Requirements Applicable to Each Major Program and Internal Control Structure Over Compliance in Accordance With OMB Circular A~133 Schedule of Findings and Questioned Costs Schedule III 45 46 48 49 51 52 Independent Accountants' Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets 53 FINANCIAL SECTION DAVIS HAMMON & CO. I ~ Cerlified Public Accountants J I INDEPENDENT AUDITORS' REPORT Davis W. Hammon, Jr, CPA (1924-1989) Stephen B Norman, CPA · PFS Stephen J Herr, CPA Kerry A. Webber, CP,~ James L. Duckett, Honorable Mayor and City Council Members of the City of Ukiah Ukiah, California 95482 We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregated remaining fund information of the City of Ukiah, California, as of and for the year ended June 30, 2006, which collectively compdse the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of City of Ukiah management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of Amedca and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements ara free of matedal misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to in the first paragraph present faidy, in all matedal 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, 2006, and the respective change in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated October 6, 2006, on our consideration of the City of Ukiah's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with GovemmentAuditing Standards and should be read in conjunction with this report in considering the results of our audit. The Management's Discussion and Analysis and other required supplementary information and pages 3 through 13 and 45 through 46, respectively, are not a required part of the basic financial statements but are supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consist principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively compdse the City of Ukiah's basic financial statements. The accompanying schedule of expenditures of federal and other awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, is not a required part of the basic financial statements. The schedule of expenditures of federal and other awards has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is faidy stated in all material respects in relation to the basic financial statements taken as a whole. October 6, 2006 2 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Ukiah (City), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2006. Please read it in conjunction with the accompanying basic financial statements. This Analysis is organized into ten topics, moving from highlights of 2006, through descriptions of the financial statements and analysis of the selected information. The final topics discuss some of the City's financial processes and the upcoming budget outlook. Note: Unless otherwise indicated, all amounts are expressed in thousands of dollars. 1. FINANCIAL HIGHLIGHTS · The City's total net assets increased 9.4% to $77,427 fi.om $70,742 a year ago. · Governmental net assets ended the year at $25,794 up 17.1% fi.om $22,027 in the prior year. · Total tax revenue, other governmental revenues and business activity revenues exceeded expenses by $6,684. · General Fund expenditures and other financing sources and uses exceeded revenues by $167. · Total revenues from all sources were $43,345 up 16.3% fi.om $37,272 in the prior year. · The total cost of all activities was $36,661 up 7.2% fi.om the prior year at $34,205. 2. USING THIS ANNUAL REPORT This annual report consists of four parts - management's discussion and analysis (this portion), the basic financial statements, required supplemental information, and the single audit and other compliance information The basic financial statements include two kinds of statements that present different views of the City. (1) Government-wide financial statements, which include the Statement of Net Assets and the Statement of Activities. These statements provide information about the activities oftbe City as a whole. (2) Fund financial statements describe how City services are financed in the short term as well as what resources are available for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most signi, flcantfunds. Each oftbese basic financial statements is further described below: Reporting the City as a Whole: The Statement of Net Assets and the Statement of Activities A frequently asked question regarding the City's financial health is whether the year's activities contributed positively to the overall financial well-being. The Statement of Net Assets and the Statement of Activities report information about the City as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. All of the current year's revenues and expenses are accounted for regardless of when cash is received or paid. These two statements report the City's net assets and changes thereto. Net assets, the difference between assets and liabilities, are one way to measure the City's fmancial health, or financial position. Over time, increases or decreases in net assets are an indieatur of whether the financial health is improving or deteriorating. However, it is important to consider other non-financial factors such as changes in the City's property tax base or condition of the City's roads and other infi.astructure assets to accurately assess the overall health of the City. The Statement of Net Assets and the Statement of Activities present information about the following: · Governmental activities - All of the City's basic services are considered to be govemmental activities, including general government, community development, public safety, public works, and community services. Property taxes, sales taxes, Vehicle License Fees (VLF), ambulance fees, transient occupancy taxes and franchise fees finance most of thase activities. · Business (proprietary fund) type activities - The City charges a fee to customers to cover all or most of the cost of the services provided. The City's utility services, airport, golf course, and conference center are reported in this category. · Component units - The City's governmental activities include the blending of one separate legal entity; The City of Ukiah Redevelopment Agency. Although legally separate, this "component unit" is important because the City is financially accountable for it. Also, the city council members sit as the board of directors for the Ukiah Redevelopment Agency. Reporting the City's Most Significant Funds: Fund Financial Statements The fund financial statements provide detailed information about the most significant funds--not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, management establishes many other funds that aid in the administration of resources for particular purposes or meet legal responsibilities associated with the usage of certain taxes, grants, and other money. The City's two kinds of funds, governmental and proprietary, use different accounting approaches as explained below. · Governmental funds - Most of the City's basic services are reported in governmental funds. Governmental funds focus on how resoumes flow in and out with the balances remaining at year-end that are available for spending. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information shows whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. Governmental funds include normal governmental activities including police, fire, public works, parks, recreation and administration. Specified governmental funds included in the totals account for major activities like street construction and redevelopment projects managed by the government We describe the relationship (or differences) between governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and governmental funds through reconciling schedules. The bottom of the Balance Sheet on page 17 explains the changes from accrual based net assets to financial-asset based fund balances. Page 19 explains the differences in the change in fund balance from current year activity between accrual based and financial-asset based reporting. · Business Type (Proprietary.)funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Assets and the Statement of Activities. 3. FINANCIAL ANALYSIS OF GOVERNMENT WIDE STATEMENTS The Summary of Net Assets (Table 1) and Changes in Net Assets (Table 2) present the City's governmental and business activities in total for the years ending June 30, 2006 and 2005. Table 1 Summary of Net Assets For the Fiscal Years Ended June 30, 2006 and 2005 (Full ~4ccrual, in Thousands) Governmental Business-type Activities Activities Total 2006 2005 2006 2005 2006 2005 Assets: Currcm and other assets $25,828 $22,567 $116,846 $37,112 $142,674 $59,679 Capital ~sets 9,312 8,778 60,206 45.505 69,518 54,283 Total assets 35,140 31,345 177,052 82,617 212,192 113.962 Liabilities: Long-term debt outstanding 5,424 5,670 118,364 30,688 123,788 36,358 Other liabilities 3,922 3,648 7,055 3,214 10,977 6,862 Total liabilities 9,346 9,318 125,419 33,902 134.765 43,220 Net assets: Invested in capital assets net of debt 9,312 2,912 5,984 19,242 15,296 22,154 Restricted 5,850 5,032 1,037 1,130 6,887 6,162 Unrestricted 10,632 14,083 44,612 28,343 55~244 42,426 Total net assets $25.79~4 $22.02~7 $51.63~33 $48.71 ~; $77.42~7 $70.74~2 The City's combined net assets for the fiscal year ended June 30, 2006 were $77,427. The City accounts for its Utilities, including electric, water and sewer as enterprise funds. The airport, parking district, solid waste disposal site, golf course, conference center and street lighting system are also accounted for as enterprise funds. These enterprise funds are categorized as Business Activities on Table 1. The City's net assets for governmental activities increased 17.10% from $22,027 to $25,794, while business-type activities net assets increased 5.99%, from $48,715 to $51,633. Legally ur, restricted governmental net assets included assets in special revenue funds received for specific purposes, accumulated for capital projects, designated in redevelopment for capital projects, and designated in redevelopment for outside agencies. Three transfers are included in the City-wide Statement of Activities. $908 was transferred to the General Fund from the Electric Utility, in lieu of taxes that would be charged to an outside provider. Beginning with the FY2005-06 this amount is calculated at 6% of electric revenues. Previously, a fixed amount of $675 was transferred annually. The Airport Fund and the Sewer Fund transferred $10 and $156 to the Fixed Asset Replacement Fund. Additionally, within the Governmental Funds, two transfers were made from the General Fund to the Fixed Asset Replacement Fund and the Special Projects Reserve Fund in the amounts of $250 and $538 respectively. Table 2 Statement of Change in Net Assets For the Fiscal Years Ended June 30, 2006 and 2005 (Full AccruaL in Thousands) Governmental Business-type Activities Activities Total 2006 2005 2006 2005 2006 2005 Charges for services $3,551 $2,755 $23,920 _ $20 970 Operating grants and C~i~ ~ts ~d conMbetions ~87 ~q 769 39 I 056 289 ~er 68 68 T~es 11~179 8,883 11 179 8 883 From other agencies not restricted to sgecific gyogr~s 1,010 1,15~ ~ .1. p~ Use of money ~d Total revert u es 17,131 15,374 26,214 21,898 43,345 37,272 General govemmem 2: _255~ ......... 2fi. 0:} '~_2~ ............. ~2303 Public safety 7,03~ ~d3_{ ........................................................ 7.~}~ .................. ~.~34 Public works J:892 _ ~,)80 I 892 I 580 CommuniB, ~velopmen[ ~ I,~5 2,J10 1~06~ Comm~iW Semites (P~ks & Rec.) 1,734 1 54~ I 734 !~.~} debt 457 472 457 472 F~j~ p~tst ..................................................................... ~Qp ~79 ...... ~.~ ~0 Conference Center 406 328 4~ 328 Totnl expens~ 14,438 14,~2 22,222 19,~63 36,662 34,205 Increase N.A. before Trfrs 2,693 732 3,992 2,335 6,685 3,067 Transfers 1,074 572 ( 1,074) (572) Increase in Net Assets 3,767 1,304 2,918 1,763 6,685 3,067 Beginning Net Assets 22,027 20,723 48,715 46,952 70,742 67,675 Ending Net Assets $25.79~4 $22.02~7 ~g51.63~ $48.71~5 $77.42~7 $70.74~22 Governmental Activities Table 3 presents the cost of each of the City's major governmental programs for FY05-06 and FY04-05. Table 3 Cost of Governmental Activities For the Fiscal Years Ended June 30, 2006 and 2005 (Full Accrual, in Thousands) Total Cost to Provide Services 2006 2005 Cost Percent Chan[e Chan~e 1,580 Debt se~ice interest 457 $14,438 $14,~2 $(204) - 1% On a full accrual basis, including financing and capital costs as reported under GASB 34, the City's total governmental costs decreased 1%. The increases in Public Safety, Public Works, Parks & Recreation, and General Government were offset by decreases in Community Development and Debt Service. Governmental expenses reflect a wide variety of projects and on-going activities, many of which are supported in part by program fees or other funding sources. The City's PERS retirement benefits costs increased by $559 from 2005 to 2006 (to $1,838 from $1,279). This increase had a significant impact on total 2006 costs. General government services include the City Council, City Clerk, City Treasurer, and the City Manager's office as well as the finance, clerical, legal, and personnel areas that support public safety and all thc other city services. Afler an increase of only $9 from 2003 to 2005, expenses in 2006 increased by $152. Some expenditures that were deferred from prior years could be deferred no longer. Public Safety is the largest component of general government, mostly in direct wages paid to safety personnel and capital fire & emergency equipment. In police, salaries and overtime increased $105, while PERS grew by $57. Total Fire personnel costs increased $74, primarily due to increases in PERS retirement costs. Public Works primarily consists of streets and public rights of way maintenance. The majority of the increase in expenditures for 2006 resulted from project expenditures of state transportation funds. Parks and Recreation activities include a wide range of services to the public. Principal activities include maintaining all City parks and other landscaped areas, managing a modem museum, providing a year round calendar of youth and adult recreation programs and operating a public swimming pool. The recreation programs are primarily self-funded through user fees and cooperative use agreements with the school systems and others. Expenses for park operations account for the majority of the cost increases. The PERS retirement costs have also impacted the cost of park maintenance and other labor intensive activities. Community development is primarily grant funded projects and activities of the redevelopment agency. The previous year included expenditures for previously approved CDBG community projects, including the Cultural and Recreation Center, of $794 and a $1,000 payment of accumulated revenues to the Ukiah Unified School District. These expenditures did not recur in 2006, therefore the expenditures for Community Development decreased from the 2005 level. Business Type Activities The City's net assets for business-type activities in continuing operations generated a $3,019 increase in net assets or 12% of total revenues (before transfer of $908 to the general fund), compared with a $1,907 increase, or 9% in 2005. The Solid Waste Disposal Site has been permanently closed since 2001 and its current position is presented separately so as to not distort the continuing results presented on Table 4. Table 4 Statement of Operating Income and Expenses - Business Type Funds For the Fiscal Years Ended June 30, 2006 and 2005 (Full Accrual, in Thousands) Operating Operating Increase (decrease) Expenses Revenue From Operations 2006 2005 2006 2005 2006 2005 Electric $13,299 $12,277 15 3!9 ~.4. ~.6~ 2 020 13% $~2.~9~ Water 2~7~2 2~2 2 ~ 1~ ! _9_!.~ ~3.8. 7).....: ! '~o/? (~.8~ ~ (20)% Sewer 3,082 2,433 4 065 2 595 983 24% 162 6% S~eet Ai~on 1,033 8~ ~.~}! 8~ 698 . 40~ ~g 200 [~0 [~ ~¢~ (38) :~} ~/~ (44)..(} ~.?/~ Golf Come (9)% Conference Center 406 328 233 215 (173) -74% (113) (53)% Total ~ $19.04~9 24.64~3 ~ 3.019 ~ 5;1.907 9% Closed Pro~ram Solid Waste Disposal 5![~. ~5_9_.9_ ...... .$.5_14 .$..~ ................... .$_ _7 ~_ ..$..(_5. ~_3_) ~44_ 1 ) Electricity purchase costs increased from $8,008 last year to $8,763 in FY05~06, while rates charged by the utility were held constant. The Western Area Power Agency ("WAPA') contract ended in January 2005, forcing the Utility to purchase power under less favorable conditions on the open market. O Annual billed water revenue was up 21 ~ from the prior year and expenses also increased as part of a major capital project to increase system peak storage and delivery capacity. The result was a reduction in net assets of $387. Parking fines were up $35 from the prior year, while Capital expenditures of $30 and other expense increases resulted in a reduction of net assets of $38. 8 The Conference Center continues to produce net results below expectations. Management will continue its effort to improve marketing, restructure operations and reduce operating costs. The Solid Waste Disposal Site was permanently closed in 2001 and federal regulations require the site to be monitored for 30 years with funds set aside for post-closure expenses and contingencies. 4. FINANCIAL ANALYSIS OF THE FUND STATEMENTS Governmental Funds The voter approved one-half pement additional sales tax went into effect in October 2005. This new tax accounted for $1,100 of the incremental growth in governmental revenue. The remaining growth in governmental revenues, on a fund basis from year to year, revenue was 5.8%. Table 5 summarizes the major revenue classifications used for taxes and other governmental revenues: Table 5 Revenue Summary: Governmental Funds For the Fiscal Years Ended June 30, 2006 and 2005 (Modified Accrual Basis, Stated in Thousands) General Other Total Fund Governmental Funds Governmental Funds 2006 2005 2006 2005 2006 2005 Revenues: T~es $1~9~ $5~914 $_3 507 $2 969 $/[1.. !79 $8~83 Licenses and permits 153 168 153 168 h',~i' i~;~r¢i~;~ ~ ....................................................... P~B~:!~i~s 49 5~8 ~8 28 Fro_rn other Agencies 1 026 .... J...'{~0 ......... 1 138 1 685 2 1_6~.. 2 865 Usc of money & Pr°p~rt~ 9'(0_ 8~6 516 595 1 486 1 40! Charges for current ~ry. is~~ 697 '~2~ 697 725 Othe[ ............. 3~ .... :l.3 288 42 291 78 Total revenues $10,490 $8,884 $5,554 $5,319 $16,044 $14,203 The State of California has reduced proper~y tax distributions for City General and Redevelopment Funds, instead transferring the funds into the State Educational Revenue Augmentation Fund ("ERAF") for other uses. $290 was lost to the City in 2006. After the transfer and before the incremental sales tax revenue, net taxes (including sales, property, occupancy, business licenses and franchise fees) grew at 9.9%. General Fund Revenue from Other Agencies includes primarily State of California payments for motor Vehicle License Fees (MVLF), which has changed from a monthly reimbursement from the state to a semi-annual shift of property taxes. The State intends this shift to be revenue neutral. The reduction in revenue from Other Agencies results from the one time proceeds from VLF Gap Bonds ($230) that was included in the 2005 revenue. Other Agency Revenue includes many government grants which may vary dramatically from year to year. FY04-05 totaled $1,685, dropping to $1,138 this year. This $547 swing included CDBG funding of $803 last year, $15 this year, due to the completion of the Recreation Center construction grant. This decrease was partially offset by $420 of grant revenue received from the State Water Resource Control Board for underground storage tank cleanup. 9 5. GENERAL FUND BUDGETARY HIGHLIGHTS Actual General Fund revenues are $453 over budget, a positive variance of 4.5%. Total taxes were 0.5% above budget, with property taxes up 10% and sales taxes below budget by 3.7%. The regular sales tax revenue exceeded the budget by $258 and the new local one-half percent sales tax was under budget by $468. Total General Fund services finished the year under budget with a total cost savings of 4.4% or $492. Some savings was the result of continued downward pressure on spending plans. $270 in unspent capital outlays is expected to carry forward to FY06-07. Before accounting for transfer activity there was a net a positive variance of $945. An unbudgeted transfer of $250 was made from the Measure "S" sales tax revenue to the Special Projects Reserve Fund. The final decrease in Fund Balance was $167, or 4.6%. 6. CASH MANAGEMENT The City contracts with Public Financial Management, Inc. (PFM), a specialist in municipal cash management, to direct its investments and maintains flexibility by utilizing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Cash is invested in certain eligible securities as constrained by law and further limited by the City's investment policy. The goals of the City's investment policy are safety, liquidity and yield. The City Council has appointed an Investment Oversight Committee, chaired by the elected City Treasurer, to direct and monitor the activities of PFM. 7. CAPITAL ASSETS The capital assets of the City are those assets that are used in performance of City functions including infrastructure assets. Capital Assets include equipment, buildings, land, park facilities, and roads. At June 30, 2006, the City had not completed its inventory of infrastructure assets. GASB 34 allows the City an additional year in which to have an accounting of its infrastructure. We plan to use a private asset valuation firm to inventory the City's infrastructure. At Jane 30, 2006, net capital assets of the governmental activities totaled $9,312 and the net capital assets of the business-type activities totaled $60,206. Business-type assets grew from $45,505 last year primarily due to major multi-year construction projects underway in the water and sewer utilities. Depreciation on capital assets is recognized in the Government-Wide financial statements but not in the General Fund statements. The City attempts to minimize debt by reserving current revenue for capital projects. A current expense is recorded and transferred to specific project accounts in either the Equipment Replacement or Special Projects Reserve Funds. A given project may require transfers for several years to accumulate sufficient funding before going forward. 8. CURRENT LIABILITIES AND LONG-TERM DEBT At year-end current governmental debt is $3,922 and business-type is $7,055. The City had total governmental liabilities totaling $9,346 and business-type liabilities of $125,419. Included in these totals are $5,424 of Redevelopment Agency long-term debt and $118,364 of business-type debt including the Lake Mendocino Hydro power plant bonds and water and sewer utility upgrades. The City has a total debt to net assets ratio of 174%, up from 61% in 2005. As the table demonstrates, the City's current asset to liabilities position, in the Governmental Funds is very strong. Afrer incurring new debt for water and sewer system improvements, the total debt of the Proprietary Funds is 107% of the total Proprietary Funds' current assets. $250,000 $200,000 $150,000 $100,000 $50,000 $o -$50,000 -$100,000 -$150,000 -$200,000 Assets Available for Debt Service (Fu#Accrual,~Thousands) Governmental Proprietary Total Assets Long-term [] Capital Assets [3 Current Assets Debt Current Liabilities 9. NEXT YEAR'S BUDGET AND ECONOMIC FACTORS The City Manager's Budget Message introducing the City's 2007 budget resolution provided a concise overview of the economic and budget issues facing the City over the next few years. This extract covers key points: General Fund revenues for FY 2006-07 are projected to be $1,380 above the budgeted revenues for FY 2005-06. The expenditures are $608 below 05/06 amended budget figures. This takes the annual net loss fi.om $2,514 to $525 before the Measure S sales tax is added in. Property tax is estimated to be $100 more than the current fiscal year with the triple flip property tax-in-lieu reaching $1,100. As a note, an additional source of revenue is the rent received from the City's former police station on Standley Street. The original agreement through the Redevelopment Agency that provided this building to the County for flee has now expired and the City is receiving $33 this year as rent for this building. The Measure S Sales Tax revenues for 06/07 are projected to be $1,756. Expenditures are funded at $1,168 for a net income of $588 that is transferred to the General Fund balance. The City Council requested that they be able to review the cost of various alternatives in the budget this year, including the addition of a traffic patrol officer in the Police Department, and possible infrastructure projects funded under Measure S. Funds were allocated for Council discussion of these alternatives. Approved increases of personnel positions will allocate these funds on an annual basis. Purchases of equipment or special projects will provide for ongoing allocations in the following year as the projects are completed. The Council approved the add!tion of the Traffic Officer, funding for Public Works projects, and a Project Manager to implement the proposed projects. 11 GOVERNMENTAL FUNDS Based on the analysis of our sales tax consultants, the budget contains, from the current one-cent allocation, a projected sales tax increase of $130 over last year's projected actual sales tax amount. The budget reflects use of a portion of this increase to hire a Building Attendant Lead Worker and a Public Services Worker in the Community Services Department. Additionally a Traffic Officer, a Fire Prevention Captain, and half of a new Public Safety Equipment Mechanic position are funded form the local half cent sales tax, identified as "Measure S" in the budget. The Assistant Cily Manager position, frozen since fiscal year 2003-04, remains fi'ozen in the 2006-2007 Budget. Measure "S" Sales Tax: While this revenue source is part of the General Fund, for budget purposes it will be recorded as a separate fund. The sales tax and interest revenue is projected to be $1,756 for the 06/07 budget year. Expenditures are broken into three categories: Police Department, Fire Department, and Public Works Infrastructure Projects. Budgeted expenditures are $1,168. The Police section includes funding for four Police Officers, one Police Records Clerk, a Traffic Safety Police Officer and 25% of an Equipment Mechanic. The Fire section includes funding for 25% of an Equipment Mechanic and a Fire Prevention Captain. To this point, the Fire Department was unable to successfully provide many of the business services that are a necessar~ part of the department's usual duties, including occupancy and safety inspections. Additionally the budget includes replacement of a swifl water rescue boat and a transfer of $150 to the Equipment Fund for future replacement of fire equipment. The Public Works Infrastructure section reserved $250 for a project manager and infrastructure projects to be identified in the future. Park Development Fund: There are three projects in the capital account under Park Development. This includes the completion of Observatory Park, Ukiah Sports Complex renovation to upgrade the lighting system, and construction of the Ukiah Skate Park reimbursed through State Park Bond funds and private donations. The expenses exceed the accumulated revenue by $130. Council approved the transfer of General Fund revenue to cover these costs to ensure that the Observatory Park and Ukiah Sports Complex projects will be completed. ENTERPRISE FUNDS: Electric Utility: The Electric Utility expenditures were projected to remain flat for the new year. Subsequent to budget adoption, over $2,000 for additional cost of the repairs, retrofitting and start-up of the hydro plant have been approved fi'om the Rate Stabilization Fund. One of the major reasons that this fund was put in place over eight years ago was to cover the cost of unanticipated expenditures and increased power costs until a portion of the Northern California Power Authority bonds would reach term and reduce the department's expenditures. In addition, the Utility Director has included a new Electrical Engineering Technician II1 position and purchases and training in the various electric utility budgets to bring the department up to current performance and training standards. Sewer Operations: We are anticipating completion of the Wastewater Treatment Plant capacity upgrade and rehabilitation project. Bonds were sold and the construction projects were budgeted in 2005-2006 and will carry forward until completion. Sewer rates were increased, effective December, 2005 and each July thereafter, through 2010 tu repay the bonds. The Council plans to include revenue to assist in covering the cost of the "l and I' repair over the next several years to reduce the influx of water during the winter into the sewer system. The Council has also expressed support in funding continued capital projects at the Treatment Plant. Golf Course: We have seen an immediate increase in merchandise revenue since new management took over operation of the golf course in the 4th quarter of 05/06. Last year's rate changes generated an additional $30 of revenue, even with an extremely wet spring. The new year's revenue is projected to increase further due to the many changes being implemented through the new golf pro and the management contract. The goal is to eliminate the fund balance deficit in the golf fund and begin saving for capital projects that are needed on the course. Ukiah Valley Conference Center: The changes approved by the City Council last year are showing dramatic positive change in the annual net income of the Conference Center. Though the past average annual deficit was around $27 and as high as $64, the Conference Center staff has reduced the deficit for 05/06 to $8, before capital expenditures and is budgeting to break even on operational expenses for FY 06/07. Capital costs will continue to be subsidized by the General Fund. REDEVELOPMENT AGENCY: In past years, the Redevelopment Agency has cut costs with the elimination of two positions-~the Assistant City Manager and the Deputy Redevelopment Director. The Assistant City Manager was the designated Business Liaison for the City and provided individual assistance and support for the business community. Since the position was 12 eliminated due to budget cuts, there has been very little staff time for such direct contact on a regular basis. Council has expressed strong support for enhanced economic development activity both for retention of our current businesses and to assist interested parties in receiving information about the valley and approved funding an Economic Development Coordinator position that will handle both economic development needs as well as administrative special projects. Half of the funding for two years would come fi-om a grant the City has received and the other half fi.om the Redevelopment Agency. The Agency is required to reserve 20% of the Redevelopment revenue for the Housing allocation. Two years ago, the Council requested that Housing Fund money be reserved to provide funding for a large capital project rather then portioning out the fund balance to many small projects or programs. The projected fund balance for the RDA's portion of the Housing money at the end of FY 2006/07 is $943. Additionally, the Redevelopment budget is slowly accumulating funds for projects within the Redevelopment area. Council will be reviewing the Master Plan document to determine what projects are appropriate for funding. Possible new projects for discussion include development of the NCRA depot property, a Master Plan for the downtown corridor, rehabilitation of State and Main Streets, and parking lot improvements. SUMMARY The city continues to provide not only the basic services but also many quality-of-life services that enhance our community. Sponsorships, donations and fees for service cover many of our youth sports and recreation programs as well as community events. Successful grant funding has assisted us in providing new playground equipment in four of our city parks as well as providing the majority of funding for the new skateboard park and upgrade of the swimming pool facility and Anton stadium. We will continue to apply for grants in all categories including bike lane enhancements and transportation funding as they become available. The release of STIP funding fi-om the state has also enhanced our ability to provide public works upgrades to our street and infi.astructure systems. As potential growth in the surrounding unincorporated areas continues to impact city services we need to prepare for possible service enhancements. Every decision in regards to expansion of service should be weighed against funding options and efficiencies of scale to ensure that we do not further erode city revenues without equivalent funding for expenditures. 10. CONTACTING THE CITY'S FINANCIAL MANAGEMENT This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the City's Finance Director, Mr. Brant Smith (707) 463-6220, Finance Department, City of Ukiah, 300 Seminar~y Ave, Ukiah, California 95482 or online: at ht~o://www.citvo fukiah.com. BASIC FINANCIAL STATEMENTS 14 CITY OF UKIAH STATEMENT OF NET ASSETS JUNE 30, 2006 Exhibit One ASSETS Cash and investments Receivables (net) Internal balances Restricted Assets: Temporarily Restricted: Cash with fiscel agent Interest receivable Contract retention payments held in escrow Prepaid expenses Unexpended loan proceeds Deposits Inventory Unamortized bond issue costs Capital assets (net of accumulated depreciation) Total Assets LIABILITIES Accounts payable and other current liabilities Accrued interest payable Liabilities payable from restricted assets Contract retentions payable Deferred revenues Customer deposits Noncurrent Liabilities: Due within one year Due in more than one year Total Liabilities HI~T ASSETS Invested in capital assets, net of related debt Restricted for: Public safety Streets and highways Community development Low and moderate income housing Debt service Unrestricted Total Net Assets Governmental Business-Type Activities Funds Total $21,594,939 3,970,140 (423,238) 619,050 14,050 46,951 760 4,911 9,312,036 $39,450,277 $61,045,216 3,094,247 7,064,387 423,238 0 70,911,689 71,530,739 315,059 315,059 407,059 407,059 14,050 46,951 4,600 5,360 675,703 680,614 1,563,432 1,563,432 60,206,359 69,518,395 35~139,59g 177~051,663 212,191,262 1,568,055 4,295,044 5,863,099 29,048 44,288 73,336 1,253,400 1,253,400 10,889 69,741 80,630 2,105,150 2,105,150 2,162 2,162 208,545 1,390,701 1,599,246 5,423,907 118,363,761 123,787,668 9,345,594 125,419~097 134,764,691 9,312,036 5,983,855 15,295,891 359,042 359,042 1,707,139 1,707,139 676,043 676,043 1,754,376 1,754.376 1,353,488 1,037,126 2,390,614 10,631,881 44,611,585 55,243,466 $251794~005 $5t1632r566 $77 426 571 The notes to financial statements are an integral part of this statement. 15 Exhibit Three ASSETS Cash and investments Cash with fiscal agent - restricted Receivables: Accounts (net) Interest Property taxes Grants Loans Advances due from other funds prepaid expenses Unexpended loan proceeds Total Assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued saleries and benefits Accrued ~:ompenseted absences Contract retentions payable Deferred revenues Advances due to other funds Total Liabilities CITY OF UKIAH BALANCESHEET GOVERNMENTALFUNDS JUNE 30,20O6 Other Total Governmental Governmental Funds Funds $2,322,410 $17,455,320 $19,777,730 619,050 619,050 736,108 135,071 871,179 466,123 1,057 467,180 36,298 233,935 270,233 265,897 265,897 2,095,651 2,095,651 1,045,560 1,045,560 14,050 14,050 46,951 46,951 $4620,549 $20t8521932 $25,473~481 $242,228 $223,954 $466,182 309,954 13,679 323,633 554,265 30,736 585,0Ol 10,889 10,889 2,105,150 2,105,150 62,681 1,468,798 1,531,479 1,169,128 3,853,206 5,022,334 Fund Balances: Reserved for: Encumbrances Petty cash Public Safety Long-term receivable Low/Moderate housing Park development Capital outlay - outside agencies Debt service Unreserved, reported in: General fund Special revenue funds Debt service funds Capital projects funds Total Fund Balances Total Liabilities And Fund Balances 309,954 710,786 1,020,740 1,800 1,800 87,104 87,104 1,045,560 1,045,560 1,754,376 1,754,376 8,000 8,000 3,374,530 3,374,530 1,353,488 1,353,488 2,007,003 2,007,003 2,824,438 2,824,438 11,012 11,012 6,963,096 6,963,096 3,451,421 16,999,726 20,451,147 $4t620,540 S20,882,e3~ Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in govemmental activities are not financial resources and, therefore, are not reported in the funds Internal service funds are used by management to cha~ge the costs of garage, stores, billing, workers' compensation, public safety dispatch and liability insurance to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets, Long-term liabilities are not due and payable in the current pedod and therefore are not reported in the funds: Ukiah Redevelopment Agency REDIP loan payable Ukiah Redevelopment Agency capital lease payable Accrued interest on long-term debt Net Assets Of Governmental Activities 9,072,429 1,931,929 (157,452) (5,475,00O) (29,048) $28,794,005 The notes to financial statements are an integral part of this statement. 17 CITY OF UKIAH STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2006 Other Governmental General Funds REVENUES Exhibit Four Page I of 2 Total Governmental Funds Taxes: Property Sales and use Propen'y transfer Transient occupancy Business license Franchise Licenses and permits Fines, forfeitures, and penalties From other agencies Use of money and property Charges for current services Other Total Revenues $615,675 $3,587,162 $4,202,837 5,557,289 5,557,289 64,694 64,694 489,659 489,659 334,449 334,449 530,011 530,011 153,096 153,096 49,623 25,121 74,744 1,026,450 1,138,080 2,164,530 969,864 516,310 1,486,174 696,649 696,649 2,969 287,498 290,467 10,490~428 5,554~171 16,044,599 Current: General government Public safety Street and roads Parks and recreation Community development Debt service: Principal Interest Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES lUBES} Transfers in Transfers out Total Other Financing Sources (Uses) Net Change In Fund Balances Fund Balances, July 1, Fund Balances, June 30, 1,552,960 42,113 1,595,073 6,387,588 167,219 6,554,807 1,098,319 587,149 1,685,468 1,526,875 46,957 1,573,832 6,903 1,016,568 1,023,471 233,489 233,489 2,052 455,344 457,396 202,836 779,384 982,220 10,777,533 3,328,223 14,105,756 (287,105) 2,225,948 1,938,843 907,585 1,681,468 2,589,053 (787,968) (662,500) (1,450,468) 119,617 1,018,968 1,138,585 (167,488) 3,244,916 3,077,428 3,618,909 13,754,810 17,373,719 $3~451~421 $t6~99g~72~6 $20~451~147 continued The notes to financial statements are an integral part of this statement. 18 Exhibit Four Page 2 of 2 CITY OF UKIAH RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2006 Amounts repoded for governmental activities in the statement of activities (page 18) are different because: Net change in fund balances - total governmental funds Governmental funds report capital outlay as expenditures. However in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current pedod Capital outlay Depreciation The net effect of various miscellaneous transactions involving capital assets is to decrease net assets. The issuance of long-term debt provided current financial resources to the governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effects of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items Principal Repayments/Adjustments: Ukiah Redevelopment Agency loan payments Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as an expenditures in governmental funds Accrued interest on tong-term debt Internal service funds are used by management to charge the costs of garage, stores, billing, workers' compensation, public safety dispatch and iiability insurance to individual funds. The net expenditures of certain activities of the intemal service funds are reported with goverementai activities Change In Net Assets Of Governmental Activities $3,077,428 982,220 (373,512) (66,110) 233,489 800 (87,468) $3,766 847 The notes to financial statements are an integral part of this statement. 19 C .o CITY OF UKIAH STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2006 Exhibit Eight ASSETS Assets: Cash and investments Receivables: Accounts (net) Total Assets LIABILITIES Liabilities: Accounts payable Accrued salaries and benef'(;s Utility deposits Due to Ukiah Valley Sanitation District Due to Solid Wastes Systems Due to M.E.S.A. Due to Russian River JPA Due to Mixing Zone JPA N~T ASSETS Total Liabilities Held in trust for other purposes PHvate Purpose Agency Trust Funds $2,338,352 $4,346,622 23,920 18,949 2,362,272 $4,365,571 15,997 $187,740 174,326 2,407 297,767 3,584,725 444,184 8,003 69,061 69,451 48S,090 $4,365,57~1 $1,874,182 The notes to financial statements are an integral part of this statement. 25 CITY OF UKiAH STATEMENT OF CHANGES iN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2006 Exhibit Nine Additions Taxes Other Total Additions Deductions Current: Community development Total Deductions Change in net assets Net Assets - beginning Net Assets - ending Private Purpose Trust $15,388 922,802 938,190 31,739 31,739 906,451 967,731 $1~874,182 The notes to financial statements are an integral part of this statement. 26 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 1) ~ummarv of Sienlficant Accountina Policies A) Reporting Entity The City of Ukiah was incorporated March 8, 1876 under the applicable laws and regulations of the State of California. The City operates under a Council-City Manager form of government and provides a variety of services including police, fire fighting and medical emergency, sewage treatment, water treatment, electric power, street lighting and maintenance, parks and recreation, municipal golf course, conference center, and redevelopment activities. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations. The City has no component units that require discrete presentation. Blended Component Units. The Ukiah Redevelopment Agency was established in 1975 under the provisions of Community Redevelopment Law §33000 of California Health and Safety Code. The Agency is govemed by a Commission comprised of the members of the Ukiah City Council. The Agency's boundaries are within Ukiah's city limits and activities of the Agency benefit the citizens of Ukiah. The activities of the Agency are reported in the City's special revenue, debt service and capital projects funds. Complete financial statements of the Agency can be obtained directly from the City of Ukiah, Civic Center, 300 Seminary Avenue, Ukiah, CA 95482. The Parking Disthct #1 is a special district, primarily located in Ukiah's downtown area, is administered and accounted for by the City. The Parking Commission is appointed by the Ukiah City Council and acts as an advisory beard to the Council in District matters. The District is reported as an enterprise fund. The District does not to prepare separate financial statements. B) Government-Wide And Fund Financial Statements The government-wide financial statements (i.e. the statement of net assets and the statement of changes in net assets) report information of all the nonfiduciary activities of the City and its component units. For the most part, the effect of Interfund activity has been removed fi`om these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately fi`om business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit fi`om goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enteq)rise funds are reported as separate columns in the fund financial statements. C) Measurement Focus, Basis Of Accounting, And Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds and fiduciary fund financial statements. Revenues are recognized when earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due. 27 CiTY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 Property taxes, franchise taxes, licenses and interest associated with the current fiscal pedod are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal pedod. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental fund: The General Fund is the City's primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in another fund. The City reports the following major proprietary funds: The Electric Fund accounts for the activities of the City's electric generation and distribution operations. The Water Fund accounts for the activities of the City's water treatment and distribution operations. The Sewer Fund accounts for the activities of the City's sewage collection and treatment operations. The Disposal Fund accounts for the activities of the City's solid waste landfill operations. Additionally, the City reports the following fund types: Internal Service Funds account for garage (vehicle maintenance), stores (purchasing), public safety dispatch, utility billing, workers' compensation and liability insurance services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. The Private-Purpose Trust Fund is used to account for resources legally held in trust for use by other organizations and departments. All resoumes of the fund, including any earnings on the invested resources, may be used to support the organization's or department's activities. There is no requirement that any portion of these resources be preserved as capital. Private-sector standards of accounting and financial reporting issued pdor to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board (GASB). Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of inten~und activity has been eliminated from the government*wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City's proprietary fund functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonopereting items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Principal operating revenues of the City's electric, water, sewer, golf and street lighting funds and the City's internal service funds are charges to customers for sales and services. Principal operating revenues of the City's airport, disposal and conference center funds includes charges to customers for sales and services and rental fees. The parking district fund's principal operating revenues include the sale of parking permits to customers and parking fines. The City also recognizes as operating revenue tap fees intended to recover the cost of connecting new customer to the City's utilities. Operating expenses for the enterprise funds and internal service funds include cost of power purchases, fuels and lubricants, operations, maintenance, utilities, insurance premiums and deductibles, general and administration, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as needed. 28 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 D) Asseta, Liabilities, And Net Assets Or Equity 1) Cash And Investments Investments for the City and its component units are reported at fair value. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short~term investments with original maturities of three months or less from the date of acquisition. 2) R ceiva I And Pa les Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to either "due to/from other funds" (i.e. the current portion of Interfund loans) or ~advances to/from other funds" (i.e. the non-current portion of Interfund loans). All other outstanding balances between funds are reported as "due to,rom other funds." Any residual balances outstanding between the governmental activities and the business- type activities are reported in the government-wide financial statements as 'internal balances." An estimated receivable of $1,239,831 has been reported within the City's enterprise funds for services provided but not yet billed as of June 30, 2006. The receivable, and increase to related revenue accounts, was arrived at by taking the cycle billings the City sent the customers in July and prorating for the number of days applicable to the fiscal year ended June 30, 2006. All trade and property tax receivables are shown net of an allowance for uncollectible accounts. Allowances for uncollectible receivables totaled $981,616, including $582,380 for emergency response billings and booking fees, and were determined based on an analysis of historical trends. Properly taxes for the current year were attached as an enforceable lien as of January 1, 2005 and were levied on July 1, 2005. Taxes are due in two equal installments on November 1 and February 1. The City relies on the competency of the County of Mendocino Assessor's office to properly assess, collect and distribute property taxes. 3) Inventories And Precaid Items inventories are valued at the lower of cost (first-in, first-out) or market. An annual charge is made to various City funds to assist in the financing of warehouse operations in addition to being billed as inventory is issued. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both govemment-wide and fund financial statements. 4) Restricted Assets Certain proceeds of the City's Electdc Fund revenue bonds; the Water Fund and Sewer Fund installment obligations (as well as certain resources set aside for their repayment); and the Ukiah Redevelopment Agency capital lease are classified as restricted assets on the balance sheet because their use is limited by applicable bond or other covenants. Contract Retentions Held In Escrow - Under the terms of an agreement the City entered into for the construction of improvements to its water treatment plant, the City made deposits to an outside escrow account in amounts equivalent to the contract retention payments that would normally be withheld during the construction period. Amounts held in escrow are intended to be released to the City's construction contractor once the project has been accepted as complete by the City. The $407,059 balance of the escrow account has been reported as a restricted asset of the City at June 30, 2006. 5) Caoital Assets Capital assets, which include propen'y, plant, and equipment, are reported in the applicable governmental or business- type activities column in the governmental-wide financial statements. Capital assets are defined by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two years. Capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their estimated fair market value on the date received. 29 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 As of the balance sheet date, information was not available concerning the cost of infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) and, therefore, pre-existing infrastructure assets are not included in the accompanying financial statements. As permitted by GASB Statement No. 34 (GASB-34), the City will begin reporting pro-existing infrastructure assets as data is accumulated during the transition period provided by GASB-34. However, as required by GASB-34 the City has begun prospective reporting of infrastructure assets acquired or constructed during the current fiscal period. During the current fiscal period, infrastructure projects that were incomplete are reported as "construction in progress." Interest is capitalized on construction of major assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. For the year ended June 30, 2006, $279,636 of interest was capitalized in the Water Fund's water treatment plant upgrade project. In the Sewer Fund, interest earned on invested proceeds exceeded interest expense by $529,278 therefore the wastewater treatment plant upgrade project cost was reduced by the excess amount. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements aro capitalized and depreciated over the remaining useful lives of the related fixed assets, as applicable. Property, plant and equipment of the City aro depreciated using the straight-line method using the following useful lives: Land improvements Buildings and improvements Infrastructure Licensed vehicles Machinery and equipment Yearn 20 - 40 yearn 30 - 60 years 30 - 60 years 5 - 10 years 5 - 20 years 6) Compensated Absences It is the City's policy to allow an employee to accumulate no more than two years vacation. Full time City employees are entitled to sick leave with full pay due to absence resulting from illness or injury to the extent of the amount earned. There is no liability for unpaid sick leave since the government does not have a policy to pay any amount when employees separate from service with the City. All vacation pay is accrued when incurred in the government-wide and fund financial statements. 7) Lona-Term Oblioations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-typo activities, or proprietary fund type statement of assets. Long-term debt issue discounts and premiums, as well as issue costs, are deferred and amortized over the life of the debt using the straight-line method, which is not materially different from the effective interest method. Bonds payable and installment obligations are reported net of the unamortized discounts and premiums. Debt issue costs are reported as deferred charges and amortized over the term of the related debt. 8) Fund Eauitv In the fund financial statements, governmental funds report reservations of fund balance for amounts that aro not available for appropriation or legally restricted by outside parties for use for a specific purpose. Designated fund balances represent tentative management plans for future use of financial resources and are subject to change. 30 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 2 ~fRwardehio, Comoliance And Accountability A) Budgetary Information Annual budgets are adopted all governmental funds except the certain minor Special Revenue Funds including: National Science Foundation, Asset Seizure and Asset Seizure (Drug/Alcohol), H&S Education, Federal Assets Seizure, Storm Drain, Federal Emergency Shelter Grant, EDBG 94-333 Revolving Loan, and Off System Road. Budgets are adopted on a basis consistent with generally accepted accounting principals. Annually, each City department submits a request for appropriation to the City Manager so that a budget may be prepared. The budget is prepared by fund, function and activity, and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. Before June 30, the proposed budget is presented to the City Council for review. The City Council holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available by the City Manager or the revenue estimates must be changed by an affirmative vote of a majority of the City Council. Expenditures may not legally exceed budgeted appropriations at the activity level. During the year, several supplementary appropriations totaling $68,716,696 were necessary primarily due to authorization of major construction projects. Encumbrances represent commitments related to unperformed contracts for goods or services. Encumbrance accounting - under which purchase orders, contracts and other commitments for the expenditures of resources are recorded to reserve that portion of the applicable appropriation - is utilized in the governmental funds. Encumbrances outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be reapportioned and honored during the subsequent year. B) Excess Of Expenditures Over Appropriations Expenditures exceeded appropriations in the following special revenue funds for which budgets were adopted: Expenditures Over Appropriations: Supplemental Law Enforcement Community Development Block Grant $12,418 17,546 These over-expenditures are expected to be funded by additional grant revenues or by available fund balance. C) Deficit Fund Equity The following Special Revenue Funds had deficit fund balances as of June 30, 2006. These deficits were primarily caused by expenditures in excess of grant awards. Management is monitoring each fund's activities to ensure improved financial position. The deficits do not represent a significant financial burden. Deficit Fund Equities: Park Development Fund NEH1 Museum Grant Fund Local Law Enfomement Block Grant STIP Augmentation Fund $155,976 4,279 13,200 2,315 31 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 3) Detailed Notes On All Funds A) Cash And Investmente Cash and investments are reported in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments Restricted cash with fiscal agent Statement of Fiduciary Net Assets: Cash and investments Total Cash and investments $61,045,216 71,530,739 6~684~974 $139,260,929 Cash and investments consist of the following: Cash on hand Deposits with financial institutions Investments Total Cash and Investments $1,650 9,038,760 130~220~519 $139r260,929 Authorized Investments - City Investment Policy The table below identifies the types of investments that are authorized by the City's investment policy: Authorized Investment Type City of Ukiah Bonds U.S. Treasuries (notes, bonds, bills and other indebtedness) Obligations of the State of California (warrants, notes and bonds) Local Agency Obligations (bonds, notes and other indebtedness Maximum Maximum Maximum Total of Investment In Matudt¥ Portfolio One Issuer 5 years No limft 10% 5 years No limit None 5 years No limit 10% 5 years No limit 10% 5 years No limit None 180 days 40% 10% 180 days 15% (1) 10% 5 years 30% 10% 365 days No limit 10% 92 days 20% 10% 5 years 30% 10% 5 years 20% 10% 5 years $40 million 10% 5 years 25% 10% 20% 10% U.S. Agency Obligations Bankers Acceptances Commercial Paper (rated 'W' or better) Negotiable Cert~cates Repumhese Agreements Reverse Repumhase Agreements (2) Medium-Term Notes Money Market Funds (highest rating) Local Agency Investment Fund Time Deposits Mortgage-Backed and Asset-Backed Securities (rated "AA" or better) 5 years (1) = 30% if dollar weighted average maturity of commercial paper does not exceed 31 days. (2) = Requires prior City Council approval before investment is purchased. Authorizg~J Investments - Debt Trustee Aeresments Investments held by bond fiscal agents (trustees) are governed by the provisions of the underlying indenture agreements rather than the general provisions of the City's investment policy or California Government Code. The indenture agreements do not specifically identify maximum maturity and maximum investment provisions. The indenture agreements do identif~ the following permitted investments: 32 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 U.S. Government Obligations U.S. Agency Obligations Money Market Funds (rated AAAm-G, AAAm or Aam) Demand or Time Deposits (FDIC insured or fully secured) Bonds or Notes (must have one of two highest ratings) Bankers Acceptances Commemial Paper Repurchase Agreements Interest Rate Risk Interest rate dsk is the dsk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is matudng or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for City's operations. The City's target maximum average maturity to control overall exposure to interest rate risk is 2.5 years As of June 30, 2006, the City had the following investments: Investment Type Corporate Bonds and Notes U.S Treasu~j Bonds and Notes U.S. Govemment Agency Bonds and Notes U.S. Govemment Mortgage Passthroughs Mortgage-Backed and Asset-Backed Securities Money Market Funds State Investment Pool (LAIF) Held By Bond Trustee: Money Market Funds FSA Capital Management Services LLC Weighted Average Fair Value Maturit~ (YearsI $6,667,508 1.71 10,237,230 1.69 38,112,084 1.78 640,982 1.92 2,047 15.50 85,714 0.00 2,944,213 0.42 11,126,953 0.00 60,403,788 2.75 Total Fair Value Po~olio Weighted Average Maturity 130~220~519 2.~ Oi~lq~ures Relafin¢= to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. As of June 30, 2006, the City's investments were in compliance with the ratings required by the City's investment policy and indenture agreements. Exempt Fair From Year End Rating Not Investment Type Value Disclosure AAA/AAAm AA- A+/A-1 + Rated Corporate Bonds and Notes $6,667,508 US Treasury Bo~:ls and Notes 10,237,230 U.S. Government Agency Bonds and Notes 38,112,084 U.S, Government Mortgage Passthroughs 640,982 Mortgage-Backed and Asset-Backed Securities 2,047 Money Market Funds 85,714 $10,237,230 $2,200,223 $3,488,275 35,720,496 640,982 2,047 85,714 $979,010 2~391,588 33 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 state Investment Pool 2,944,213 Held By Bond Trustee: Money Manet Funds 11,126,953 FSA Capital Management Services LLC 60.403.788 $2,944,213 60,403,788 Total Fair Value $130.220~519 $10,237~230 $49,776~4t5 $3,488~275 $3~370~598 $63,348r001 Concentrations of Credit Risk With the exception of securities of the U.S. Government and its Agencies, the investment policy of the City limit the amount that can be invested in any one issuer to no more than 10% of the total portfolio. Investments in any one issuer (other than U.S. Treasury securities, mutual funds and external investment pools) that represent 5% or more of the total District investments are as follows: Investment Type U.S. Federal Agency Security U.S. Federal Agency Security U.S. Federal Agency Security Issuer Fair Value FHLMC $16,360,151 FHLB 12,765,926 FNMA 8,986,008 Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of bank failure, the City's deposits may not be returned to the City or the City will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of failure of the counterparty (e.g. broker-dealer) to a transaction, the City will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provisions for deposits: The California Government Code requires that a financial institution secure deposits made by state and local governmental units by pledging securities in an undivided coilaterel pool held by the a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal 110% of the total deposits by public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. It is the policy of the City not to waive these requirements. At year-end, the City's deposits with financial institutions totaled $9,511,349, of which $300,000 was covered by federal depository insurance. The $9,211,349 uninsured amount was exposed to custodial credit risk, but was collateralized by securities, as described above. As of June 30, 2006, City investments in the following investment types were held by the same institution that was used by the City to buy the securities: Money Market U.S. Treasury Federal Government Agency U.S. Government REMICSICMO's U.S. Government Mortgage Pass-Throughs Corporate Bonds $85,714 10,237,230 38,112,084 2,047 640,982 6,667,508 Investment in State Inveel~nent Pool The Local Agency Investment Pool (LAIF) is a special fund of the California State Treasury through which local governments may pool investments. The City may invest up to $40,000,000 in the fund. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. Funds deposited in LAIF are invested in accordance with Government Code Sections 16430 and 16480. Oversight of LAIF is provided by the Pooled Money Investment Board whose members are the California State Treasurer, California Director of Finance and the California State Controller. For the purpose of these financial statements, the fair value of amounts in LAIF is equivalent to the dollars held. CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 B) Capital Assets Construction And Other Commitments The City has active construction projects as of June 30, 2006. The projects include expansion and upgrade of the water treatment plant and sewage treatment plant. The City has also entered into an agreement to develop new citywide financial software. At year-end the City's commitments with contractors are as follows: Water treatment plant expansion Sewage treatment plant expansion Expended Remaining To-Date Commitment $13,053,886 $477,892 12,525,735 55,317,849 Capital assets activity for the year ended June 30, 2006 was as follows: Balance Balance Government Activities: Jul)' 1,2005 Additions Deletions June 30, 2006 Nondepreciable Capital Assets: Land $1,675,023 $43,950 $1,631,073 Construction in progress 321,170 $101,871 423,041 Total Nondepreciable Capital Assets 1,996,193 101,871 43,950 2,054,114 Depreciable Capital Assets: Land improvements 861,675 861,675 Buildings 5,947,976 5,947,976 Licensed vehicles 2,035,580 525,462 90,955 2,470,087 Machinery and equipment 1,972,087 354,889 2,326,976 Infrastructure 1,164,213 1,164,213 Total Depreciable Capital Assets 11,981,531 880,351 90,955 12,770,927 Less: Accumulated Depreciation: Land improvements (674,475) (29,754) (704,229) Buildings (1,769,999) (118,853) (1,888,852) Licensed vehicles (1,545,144) (112,516) (68,792) (1,588,868) Machinery and equipment (1,179,528) (102,876) (1,282,404) Infrastructure (30,741) (17,911 ) (48,652) Total Accumulated Depreciation (5,199,887) (38t,910) (68,792) (5,513,005) Depreciable Capital Assets, net 6~781,644 498,441 22,163 7,257,922 Governmental Activities Capital Assets, net $8,777,837 $600,312 $66 113 $9,312,036 Business. Type Activities: Nondepreciable Capital Assets: Land Construction in progress Total Nondepraciable Capital Assets Depreciable Capital Assets: Land improvements Buildings and improvements Licensed vehicles Machinery and equipment Total Depreciabts Capital Assets Less: Accumulated Depreciation: Land improvements Buildiogs and improvements Licensed vehicles Machinery and equipment Total Accumulated Depreciation Depreciable Capital Assets, net Business-Type Activities Capital Assets, net Balance Balance Jul)' 1~ 2005 Additions Deletions June 30, 2006 $2,644,348 $2,644,348 11,788,607 $15,188,879 26,977,486 14,432,955 15,188,879 $0 29,621,834 1,012,955 1,012,955 42,610,521 42,610,521 1,705,744 166,817 13,961 1,858,600 5,085,589 464,205 326,424 5,223~370 50,414,809 631,022 340,385 50,705,446 (876,612) (8,885) (885,497) (14,659,697) (850,628) (15,510,325) (1,229,786) (91,904) (13,961) (1,307,729) (2~577,120) (166,674) (326,424) (2,417,370) (19,343,215) (1,118,091) (340,385) (20,120,921) 31 ~071 ~594 (487~069) 0 30~584~525 $45,504,549 $14,701,810 $0 $60,206,359 35 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 Depredation expense was charged to functions/programs of the City as follows: Governmental Activities: General government Public safety Streets Parks Community development Total Depreciation Expense -Governrnental Activities $104,374 103,957 89,556 68,395 15~628 $381,910 Business-Type Activities: Electdc $554,289 Water 165,827 Sewer 289,422 Disposal site 22,637 Airport 17,348 Parking 1,195 Golf course 19,024 Conference center 48,349 Total Depreciation Expense - Business-Type Activities $1,118,091 C) Inter~und Receivables, Payablee And Tranefem The composition of Interfund balances and transfers within the City's fund financial statements as of June 30, 2006 is as follows: Advances Due To(From) Other Funds Due To Due From General Fund $1,045,560 $62,681 Electric Fund 1,126,147 Nonmajor governrnental funds 1,468,798 Nonrnajor business-type funds 702,909 Internal service fund 62,681 Total Due To(From) Other Funds $2,234,388 $2,234,388 Long-term advances to the Ukiah Redevelopment Agency (nonmajor governmental fund) from the General and Electdc funds are due upon demand, but are unlikely to be repaid within one year. The Liability Insurance Fund made a long- term advance to the General Fund that wilt be repaid over the next nine (9) years. The General Fund made an advance to the Golf Fund to pay-off a capital lease. The advance is will be repaid in annual installments ranging from $40,000 to $85,000 (plus applicable interest) through the year 2018, and $40,000 has been classified as a current liability. Interfund Transfers Transfers In Transfers Out General Fund $907,585 $787,968 Electdc Fund 907,585 Sewer Fund 156,000 Nonmajor governmental funds 1,681,468 662,500 Nonrnajor enterprise funds 10,000 Internal service fund 65,000 Total Transfers In(Out) $2,589,053 $2~589,053 36 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 The $907,585 transfer to the General Fund represents payments in-lieu of taxes by the Electric Department. The General Fund transferred $537,968 representing a portion of the 0.5% sales tax receipts to the Special Projects Fund - a nonmajor Capital Projects fund, for the pumhase of equipment for the Fire Department. In addition, the General Fund ($250,000) and the Sewer Fund ($156,000) made transfers to the Fixed Asset Fund - a nonmajor Capital Projects fund - for futura equipment pumhases. Similarly, the Special Projects Fund ($662,500), the Airport ($10,000) - a nonmajor Enterprise Fund, and the Enterprise Billing Fund ($65,000) - nonmajor Internal Service fund, also transferred funds to the Fixed Asset Fund for future capital outlay. D) Capital Leases At June 30, 2005, the City was obligated for one (1) agreement that financed the acquisition of a golf course that has been reported as a capital lease. During the year ended June 30, 2006 the lease was paid in full from a long-term advance to the Golf Fund from the General Fund. E) Long-Term Debt Revenue Bonds. The City has issued bonds where the City pledges revenue derived from the acquired or constructed assets to pay debt service. Revenue bonds outstanding, net of unamortized discount of $341,676, at June 30, 2006 were as follows: Purpose Interest Rates Amount Electric Revenue Refunding Series 1992 3.20% - 5.90% $16,488,324 Installment Obligations. The City has entered into two (2) separate agreements with the Association of Bay Area Governments (ABAG) whereby ABAG issued revenue bonds to provide resources for the City to acquire and construct capital improvements to the City's water treatment plant and wastewater treatment plant. The bonds are an obligation of ABAG and are payable solely from and secured by revenues that consist primarily of payments on two (2) installment obligations of the City. The installment obligations of the City are as follows: Water Treatment Plant - Dated September 1, 2005 the original amount of the obligation was $14,355,000 and is secured with a pledge of net revenues from the City's water system1 The obligation principal is payable in annual installments beg nn ng September 1, 2007 ranging from $280 000 to $645,000 through September 1, 2035. Interest payments commenced March 1, 2006 and are payable semiannually on September 1s and March 15. At June 30, 2006 the installment obligation liability outstanding including the unamortized premium of $119,297 was as follows: Purpose Interest Rates Amount Water Treatment Plant Upgrade 4.00% - 4.50% $14,474,297 Wa~tewater Treatment Plant - Dated March 1, 2006 the original amount of the obligation was $75,060,000 and is secured with a pledge of net revenues from the City's wastewater system. The obligation principal is payable in annuaf installments beginning March 1,2009 ranging from $400,000 to $4,690,000 through March 1, 2036. Interest payments commence September 1,2006 and are payable semiannually on September 1~t and March 1=~. At June 30, 2006 the installment obligation liability outstanding including the unamortized premium of $67,184 was as follows: Purpose Interest Rates Amount Wastewater Treatment Plant Upgrade & Expansion 4.00% - 4.75% $75,127,184 Department of Water Resources Loans. The City has obtained two (2) loans from the California Department of Water Resources to finance an upgrade of the water treatment plant and to finance an upgrade of the wastewater treatment plant to comply with safe drinking water standards. 37 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 Water Treatment Plant - The maximum loan amount is $3,599,009 and is payable over 30 years. At June 30, 2006, the balance of the loan was $2,198,983. Principal and interest are payable semi-annually on April 1, and October 1, with the interest rate being 3.6024%. Loan payments will be made exclusively from revenues received from assessments and user charges of the treatment plant. Wastewater Treatment Plant - The maximum loan amount is $6,592,944, payable over 20 years. At June 30, 2006, the balance of the loan was $3,633,810. Principal and interest are payable annually with the interest rate being 3.0%. Ukiah Redevelopment Agency Loan Payable. The Ukiah Redevelopment Agency (RDA) has entered into a loan agreement, dated December 30, 1993, for $6,935,000 with the Redwood Empire Financing Authority (Authority). The Authority issued certificates of participation, the proceeds of which are used to provide funds to loan the RDA. The Authority then uses the RDA loan payments for the debt service requirements of the Authority. The loan balance at June 30, 2006, was $5,475,000. The terms of loan require semi-annual interest payments in December and June at annual rates ranging from 4.00% to 6.50%. Principal payments are due annually in December through the year 2023. Loan payments by the RDA will be made exclusively from revenues received from property tax increments. Ukiah Redevelopment Agency REDIP Loan Payable. The Ukiah Redevelopment Agency (RDA) has entered into a loan agreement, dated May 29, 1996, with the Rural Economic Development Infrastructure Panel (REDIP) to fund the construction of infrastructure within the RDA project area. The initial principal amount of the loan was $758,557 and the balance at June 30, 2006 was $157,452. Principal and interest payments of $43,662 are payable semi-annually on January 1, and July 1, through July 1, 2008. The loan carries an interest rate of 6.5% per annum. Landfill Closure And Postclosure Costs. As more fully discussed in Note 5(D), long-term liabilities include $7,831,864 in accrued landfill closure and postclosure costs. These liabilities are not included in the following discussion of debt service requirements and changes in long-term liabilities. Chanoes in lone-term liabilities Long-term liability activity for the year ended June 30, 2006 was as follows: Balance Balance Due Within Jul)' 1,2005 Additions Deletions June 30, 2006 One Year Government Activities: Loans payable $5,865,941 $233,489 $5,632,452 $208,545 Governmental Activities Long-Term Liabilities $5,865,941 $0 $233,48~9 $5,632,452 $208,545 Buat nasa-Type Activities: Elecfim revenue bonds payable $17,740,000 $910,000 $16,830,000 $970,000 Deferred amounts: Issuance discounts (370,149) (28,473) (341,676) Net revenue bonds payable 17,369,851 $0 881 ~527 16,488,324 970,000 Installment obligations payable: Water treatment ptant 14,355,000 14,355,000 0 Wastewater treatment plant 75,060,000 75,060,000 0 Deferred amounts: Issuance premiums 190~469 3,988 186,481 Net installment obligations payable $0 89~605~469 3,988 89,601~481 0 State loans: Water Resources - Water Treatment 2,299,063 100,080 2,198,983 103,722 Water Resources - Sewer Treatment 3~941~557 307,747 3,633~810 316,979 Total State loans 6,240~620 0 407,827 5,832,793 420,701 Capital leases: Golf course 830,000 830,000 0 Deferred amounts: Issuance discounts (18,482) (18,482) 0 Net capital leases 811 ~518 0 811 ;518 0 0 Landfill closure and post-closure 7~624,181 207~683 0 7,831,864 0 Business-Type Activities Long-Term Liabilities $32,046,170 $89,813,152 $2~104~860 $119,754~462 $1 390701 38 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 Debt service requirements to maturity, including the loans payable by the Ukiah Redevelopment Agency, but excluding the landfill closure and post-closure liability, are presented on the following schedules. Governmental Activities Year Ended RDA Loans June 30~ Pdncipal Interest 2007 $208,545 $348,597 2008 265,889 339,173 2009 233,018 322,383 2010 205,000 308,640 2011 220,000 295,040 2012-2016 1,325,000 1,238,560 2017-2021 1,795,000 743,200 2022-2026 1,380,000 136,320 $5,632,452 $3,731,913 Business-Type A~iv~ies Year Ended Revenue Bonds State Loans InMallme~ Loans June 30, Principal Intere~ Principal Intere~ Principal Intere~ 2007 $970,000 $1,046,875 $420,701 $187,305 $0 $2,286,573 2008 1,030,000 988,675 433,981 174,025 280,000 3,949,422 2009 1,095,000 926,875 447,683 160,323 690,000 3,938,022 2010 1,165,000 858,438 461,820 146,186 1,500,000 3,910,222 2011 1,240,000 785,625 476,408 131,599 1,910,000 3,850,022 2012-2016 7~555,000 2,656,875 2,617,634 422,396 10,630,000 18,045,208 2017-2021 3,775,000 357,812 797,013 113,050 12,960,000 15,718,475 2022-2026 177,553 4,460 t6,055,000 12,698,802 2027-2031 20,095,000 8,723,032 2032-2036 25~295~000 3,593,213 $16,830,000 $7,621,175 $5,832,793 $1,339,344 $89,415,000 $76,712,991 F) Segment Information As discussed previously, the City has issued revenue bonds to finance improvements in its electric department, and obtained State loans and incurred installment obligations to finance improvements in its water and sewer departments. These departments were all determined to be major funds for financial reporting purposes and required segment information is presented in the proprietary fund financial statements. 4) Othqr Information A) Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injudes to employees; and natural disasters, The City provides property, liability, and worker's compensation insurance through the Redwood Empire Municipal Insurance Fund (REMIF), a public entity dsk pool currently operating as a common risk management and insurance program for several Northern California municipalities. The City pays quarterly and annual premiums to the REMIF for its general insurance coverage. The joint powers formation agreement of the REMIF provides that the REMIF will be self-sustaining through member premiums for liability insurance and will reinsure through commercial companies for other coverage. REMIF is a risk sharing, self-funded pool which is a direct purchase program. The REMIF cost shadng pool provides coverage between the City's deductible and $500,000 (liability program) and $1,000,000 (workers' compensation program). Losses in excess of the REMIF cost sharing pool limits are covered by REMIF through the California Joint Powers Risk Management Authority and commercial insurance policies. Losses limits are $25,000,000 (liability), 39 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 $200,000,000 (property), $20,000,000 (boiler and machinery), $1,500,000 (auto) and $3,000,000 (workers' compensation) - all per occurrence. Losses exceeding these limits are the responsibility the City. The City's deductibles are $10,000 for worker's compensation, property and auto losses, and fidelity; $25,000 for liability losses; $5,000 for boiler and machinery losses; and $25,000 or 5% of building value for earthquake and flood losses - all per occurrence. Separate internal service funds are maintained by the City for the City's deductibles and allocated share of pooled costs noted above. The total cash and investments held in these funds at June 30, 2006, was $1,404,916 which management believes is adequate to finance the City's share of any losses. The City continues to carry commercial insurance for all other dsks of loss, including employee health and accident, coverage of the Municipal Airport and bonding of certain employees and elected officials. Settled claims resulting from these dsks have not exceeded commercial insurance coverage in any of the past three fiscal years. B) Related Organizations The City is a member of vadous joint powers authorities that provide goods or services to the City and other authority members. Under the cdteria established by GASB-14, the City does not have sufficient authority, influence or accountability over these entities to incorporate them in this annual report. Additionally, the City has determined that it has no ongoing financial interest or responsibility for any of these organizations as defined by GASB-14. The names and general functions of these joint powers ars as follows: Northern California Power Aoencv (NCPA) - Membership consists of eleven municipal electric utilities, a port authority, an irrigation district, a public utility district, and four other associate member entities. The NCPA is generally empowered to pumhase, generate, transmit, distribute, and sell electrical energy. Members participate in the projects of the Agency on an elective basis. A Commission comprised of one representative for each member governs the NCPA. The City is currently involved in several hydroelectric, geothermal and other energy related projects as a member of this agreement. The NCPA is financed by contributions from member cities, government grants and debt. The City is committed to provide substantial additional financial support for its portion of the actions and projects of the NCPA. During the year ended June 30, 2006, the City paid $8,747,616 to the NCPA for power supplied by the agency. The NCPA holds certain funds under a separate member custodial agreement - the general operating reserve. The purpose of the reserve is to allow members to fund all, or a portion, of the contingent liabilities that the NCPA faces at any given time, while providing the individual member with the flexibility to draw upon their part of the reserve, as each member individually deems appropriate. At July 31, 2005, the City's balance held in the reserve was $4,054,755. Due to the nature of the reserve held by NCPA, payments made to the reserve are expensed as purchased power. Mendocino Transit Authority - This Agency consists of four Mendocino County cities and the County of Mendocino. The Agency was created to apply for and receive Transportation Development Act, Urban Mass Transportation Act, and other funds as a public transportation operator and to provide public transportation services within Mendocino County. Its activities are pdmadly financed from fare box revenue and federal and state government grants. A Board of Directors comprised of one member from each city and three members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Redwood Emeire Financine Authority ~REFA) - This is an agreement between seven Northern California cities. The Authority is authorized to acquire, through lease purchase, installment sale agreements, or otherwise such property necessary or convenient for the operation of the member cities. A Commission comprised of one member appointed by each member city administers the Authodty. As explained previously, the City has entered into various financing arrangements with REFA. Redwood Emoirs Municioal Insurance Fund (REMIF) - A group of Northern Califomia cities participate in this agreement to provide themselves with various levels of liability, property and worker's compensation insurance. A Commission comprised of one member appointed by each member city administers the Authority, As explained previously, the City provides for its general and workers' compensation insurance needs through REMIF. Annual 4O CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 premiums paid to the Authority were $974,684. During the year, the City received distribution from REMIF totaling $195,719 for surplus funds within REMIF's liability insurance program. Transmission Aoencv Of Northern Califomia ('I'ANCI - Members include eleven cities, one electdc co-op, two irrigation districts, and one public utility district. The Agency was created to provide electric transmission or other facilities, including real property and rights of way, for the use of its members. A Commission comprised of one representative appointed by each member governs the Agency. The City has authorized its participation in the project up to one percent (1%) of the total. Mendocino Solid Waste Manaoement Authority (MSWMA) - This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of: (a) siting, licensing, developing, constructing, maintaining, and operating disposal sites and sanitary landfills and (b) preparing and implementing a sotid waste management plan. A Commission comprised of one member from each city and two members that are appointed by the Mendocino County Board of Supervisors governs the Authority. Mendocir~0 Emeraencv Services Authority (MESA~ - This Authority consists of three Mendocino County cities and the County of Mendocino. The Agency was created for the purpose of coordinating disaster and other emergency preparedness planning and recovery programs. A Commission comprised of one member from member entity governs the Authority. As of June 30, 2006 the governing board of MESA as voted to dissolve the organization and have its services provided by the County of Mendocino. C) Contingencies Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. There are several pending lawsuits in which the City is involved. Although the outcome of these lawsuits is not presently determinable, in the opinion of the City attorney the resolution of these matters will not have a material adverse effect on the financial condition of the City. D) Landfill Closure And Poatclosure Costs State and federal laws and regulations require that the City place a final cover on its landfill when closed and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. In addition to operating expenses related to current activities of the landfill, an expense provision and related liability ara being recognized based on the future closure and postclosure care costs that will be incurred near or after the landfill no longer accepts waste. The recognition of these landfill closure and postclosura care costs is based on the amount of landfill used during the year. The estimated liability for landfill closure and postclosure care costs has a balance of $7,831,864 (including $772,823 for corrective action liability) as of June 30, 2006, which is based on 100.0% usage (filled) of the landfill. This estimated total current cost of the landfill closure and postclosure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2006, as determined by the last engineering study performed. However, the actual cost of closure and postclosure care may change due to inflation, changes in technology, or changes in landfill laws and regulations. The City is required by state and federal laws and regulations to make annual contributions to finance closure and postclosure care. The City is in compliance with these requirements, and at June 30, 2006, held $7,068,769 within its pooled investments designated for these purposes. The City has made a pledge of future service revenues for anticipated remaining expected costs, future inflation costs, and any additional costs that might arise from changes in postclosure requirements (due to changes in technology or more rigorous environmental regulations, for example). E) Service Contracts The City has entered into several agreements to provide services to persons living outside the City limits. The general purpose and description of these contract agreements are as follows: The City has contracted with the Ukiah Valley Sanitation District to provide processing of the District's wastawater. In addition, the City provides billing, collection and other direct maintenance services for the District. District assets held by the City are accounted for in the Agency funds. 41 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 The City has granted Solid Waste Systems, Inc. a franchise for mandatory residential and optional commercial garbage collection and disposal. The City has also contracted with Solid Wastes Systems, Inc., to provide a citywide recycling program. The City acts as billing and collecting agent for the residential accounts of Solid Waste Systems, Inc. Amounts held by the City on behalf of the corporation are accounted for in the Agency funds. In 2001, the City exchanged a parcel of land to the County of Mendocino for $1 and five (5) years of animal shelter services commencing in fiscal year 2000/01 through 2005/06. Animat shelter services are to include "acceptance, care, processing and disposition of all Ukiah animals, whether alive or dead." F) Employee Retirement Systems Plan Description: The City has three (3) defined benefit pension plans; the Miscellaneous Plan of the City of Ukiah (Miscellaneous Plan), the Safety Police Plan of the City Of Ukiah (Police Plan), and the Safety Fire Plan of the City if Ukiah (Fire Plan). Each plan provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. The Plans are part of the Public Agency portion of the California Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, which acts as a common investment and administrative agent for participating public employees within the State of California. CaIPERS requires plans with less than 100 active members must participate in a risk pool. As such, both the Police Plan and Fire Plan are required to participate in a dsk pool. State statutes within the Public Employees' Retirement Law establish a menu of benefit provisions as well as other requirements. The City of Ukiah selects optional benefit provisions from the benefit menu by contract with CaIPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of the CalPERS' annual financial report may be obtained from the CalPERS Executive Office - 400 P Street - Sacramento, CA 95814. Funding Policy: Active plan members in the Plans ara required to contribute 7.0% (10% for Police and Fire employees) of their annual covered salary. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by CalPERS Board of Administration. The required employer contribution rate for fiscal 2005/06 was 20.806% for miscellaneous employees, 27.025% for police, and 16.229% for fire employees. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. Annual Pension Cost: For fiscal year 2005/06 the City's annual pension cost was $1,837,890 ($1,189,751 for Miscellaneous, $473,768 for Police and $174,371 for Fire) and the City actually contributed $1,837,890. In addition, the City paid $740,219 representing substantially all of the employees' required contributions under the terms of the City's various employee bargaining unit agreements. The annual required conthbution for fiscal year 2005/06 was determined as part of the June 30, 2003, actuarial valuation using the entry age actuarial cost method with the conthbutions determined as a percent of pay. The actuarial assumptions include the following: Miscellaneous Police Fire Investment rate of return 7.75% 7.75% 7.75% Projected sala~ increases 3.25% - 14.45% 3.25% - 13.15% 3.25% - 13.15% Inflation 3.00% 3.00% 3.00% Payroll growth 3.25% 3.25% 3.25% The actuarial value of the Plan's assets was determined using a three-year smoothed market technique that smoothes the effect of short-term volatility in the market value of investments over a two to five year period depending on the size of the investment gains and/or losses. Each Plan's unfunded actuarial liability is being amortized as a level percentage of projected payrolls over a closed period that began on the Plan's date of entry into the CalPERS system. 42 CITY OF UKIAH NOTES TO THE FINANCIAL STATEMENTS JUNE 30, 2006 Subsequent Plan amendments are amortized over 20 years. If the Plan's accrued liability exceeds the actuarial value of plan assets, then the amortization pedod on the total unfunded liability may not be lower than 30 years. As of June 30, 2005, the remaining average amortization period was 30 years for Miscellaneous, and 17 years for Police and 15 years for Fire. Three-Year Trend Info,'marion Year Ending Annual Pension Cost Percentage Net Pension June 301 Miscellaneous Police Fire Contributed Obligation 2004 $432,580 $0 $0 100% $0 2005 908,823 229,891 140,087 100% 0 2006 1,189,751 473,768 174,371 100% 0 G) Deferred Compensation The City of Ukiah offers its employees deferred compensation plans created in accordance with Internal Revenue Code Section 457. The plans, available to all City employees, permit employees to defer a portion of their salary until future years. Participation in the plans is optional. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The City has adopted the provisions of GASB Statement 32 and, therefore, the assets and liabilities of these plans have been excluded from the accompanying financial statements. 43 REQUIRED SUPPLEMENTAL INFORMATION CITY OF UKIAH GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED JUNE 30, 2006 Schedule I REVENUES Budgeted Amounts Original Final General Vedance With Final Budget - Positive (Negative) Taxes: Property Sales and use Property transfer Transient occupancy Business license Franchise Licenses and pen-nits Fines, forfeitures, and penalties From other agencies Use of money and property Charges for current services Other $559,454 $559,454 $615,675 $56,221 5,768,257 5,768,257 5,557,289 (210,968) 40.000 40,000 64,694 24,694 400,000 400,000 489,659 89,659 310.000 310.000 334.449 24,449 473.060 473,060 530,011 56.951 184,575 184,575 153,096 (31,479) 50,075 50,075 49,623 (452) 698,438 698,438 1,026,450 328,012 802.079 802,079 969,864 167,785 749.430 749,430 696,649 (52,781) 2,100 2,100 2,969 869 Total Revenues Current: General government Public safoty Public works Parks and recreation Community development Debt service Capital outlay 10~037,468 10,037,468 10,490.428 452,960 1.333.245 1,450,893 1,552,960 (102,067) 6,618,417 6,616.981 6,387.588 229,393 952.247 1,170,540 1,098,319 72,221 1,478,493 1,515.651 1,526,875 (11.224) 22.000 29.000 6,903 22,097 12,552 12,552 2,052 10,500 421,100 473,690 202,836 270,854 Total Expenditures Excess (Deficiency) of Revenues Over Expenditures OTHER FINANCING SOURCES tUBEBI 10,838,054 11,269,307 10,777.533 491.774 (800,586) (1.231,839) (287,105) 944,734 Transfers in Transfem out Total Other Financing Sources (Uses) Net Change In Fund Balances Fund Balances, July 1, Fund Balances. June 30, 847,600 847.600 907,585 59,985 (102.644) (102,644) (787.968) (685.324) 744,956 744,956 119,617 (625.339) (55,630) (486.883) (167,488) 319,395 3.618,909 3,618,909 3,618,909 0 $3,663,279 $3t9 395 45 Schedule II CITY OF UKIAH SCHEDULE OF FUNDING PROGRESS PUBLIC EMPLOYEES' RETIREMENT SYSTEM Miscellaneous Plan Of The CIt7 Of Uklah Actuarial Accrued Actuarial Liability Unfunded Actuarial Value of (/kAL) - AAL Funded Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Date (A) June 30, 2003 $28,139,059 $34,079,314 $5,940,255 82.6% $5,729,559 June 30, 2004 29,605,831 37,921,189 8,315,358 78.1% 5,649,233 June 30, 2005 31,796,590 41,101,460 9,304,870 77.4% 5,635,150 UAAL as a Percentage of Covered Payroll [(B-A)/C] 103.7% 147.2% 166.1% Safe~ Police Plan Risk Pool Actuarial Accrued Actuarial Liability Unfunded Actuarial Value of (AAL) - AAL Funded Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Date June 30, 2003 No pooled plan information available June 30, 2004 $4,424,586,846 $5,383,921,942 $959,335,096 82.2% $575,296,434 June 30, 2005 5,295,150,375 6,367,049,264 1,071,898,889 83.2% 664,147,796 UAAL as a Percentage of Covered Payroll [(B-A)IC] 166.8% 161.4% Safe~ Fire Plan Risk Pool {1} Actuarial Accrued UAAL aa a Actuarial Liability Unfunded Percentage Actuarial Value of (AAL) - AAL Funded Covered of Covered Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll Date {A) (B) (B-A) (A/B) {CI [(B-A)/C] June 30, 2003 NO pooled p~an information available June 30, 2004 $885,549,650 $996,203,370 $110,653,720 88.9% $149,407,703 74.1% June 30, 2005 646,358,708 742,247,338 95,888,630 87.1% 115,062,820 83.3% (1) = CalPERS requires individual plans with less than 100 active members to participate in a risk pool The amounts included in the schedule are for the entire risk pool. Individual employer data is no longer provided. Only two years of information was available for risk pools. 46 SINGLE AUDIT AND OTHER COMPLIANCE 47 CITY OF UKIAH SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2006 Federal Grantor/Paee Through Program Title U.S. Deoartment of Housino and Urban Develooment Passed Through State Department of Housing and Community Development: Community Development Block Grants: STBG No. 04-STBG-1938 Total U.S. Department of Housing and Urban Development U.~. Department of Justice Passed Through County of Mendocino: Federal Narcotics Fodeiture: US vs Graves - DA #96-FF-010 Total U.S. Department of Justice Oeeertment of Interior indian Arts And Crafts Development: NBCH1020015 Total Department of Interior [~eDa~tment of Transportation Airport Improvement Program: Project: 03-06-0268-06 Project: 03-06-0268-07 Project: 03-06-0268-08 Federal Aid STPLER-5049 (013) Total Departmant of Transportation TOTALS Federal CFDA Number 14.228 16.999 15.850 20.106 20.106 20.106 20.205 Federal Expenditures $15,000 15,000 2,418 2p418 37,466 37,466 609,464 22,846 78,734 4,940 715~984 $770,868 See accompanying notes to schedule of expenditures of federal awards. 48 CITY OF UKIAH NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AND OTHER AWARDS JUNE 30, 2006 NOTE A SIGNIFICANT ACCOUNTING POLICIES The accompanying schedule of expenditures of federal and other awards is a summary of the activity of the City of Ukiah's federal and other award programs and has been prepared on an accounting basis consistent with the government-wide financial statements of the City of Ukiah. Therefore, all of the grants presented on the accompanying schedule have been accounted for using the accrual basis of accounting as described in Note 1(c) of the City of Ukiah's Notes to Financial Statements. 49 DAVIS HAMMON & CO. .~ Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH ~OVERNMENT AUDITING STANDARDS Davis W Harnmon. Jr., CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA KerryA Webber, CPA James L. Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, CA 95490 We have audited the basic financial statements of City of Ukiah, California, as of and for the year ended June 30, 2006, and have issued our report thereon' dated October 6, 2006. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Comeliance As part of obtaining reasonable assurance about whether the City's financial statements are free from matedal misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, noncompliance with which coutd have a material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reeortin(~ In planning and performing our audit, we considered the City of Ukiah's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all mattem in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level the risk that misstatements in amounts material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operations that we consider to be a material weakness. We noted certain other matters that we reported to management of the City of Ukiah in a separate letter dated December 9, 2006. This report is intended solely for the information and use of the City Council, management, and the Office of the Controller of the State of California and is not intended to be and should not be used by anyone other than these specified parties. October 6, 2006 50 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 DAVIS HAMMON & CO. I ~ Certified Public Accountants INDEPENDENT A[,JDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL STRUCTURE OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Davis W Hammon, Jr., CPA (1924-1989) Stephen B. Norman, CPA - PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, CA 95490 Comoliance We have audited the compliance of the City of Ukiah, Califomia, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Cimular A-133 Compliance Supplement that are applicable to its major federal program for the year ended June 30, 2006. The City of Ukiah's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the City of Ukiah's management. Our responsibility is to express an opinion on the City of Ukiah's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of Amefice; the standards applicable to financial audits contained in Govemment Auditing Standanls, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Cimular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the cimumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City of Ukiah complied, in all material respects, with the requirements referred to above that are applicable to its major federal program for the year ended June 30, 2006. Internal Control Over ComDliance The management of City of Ukiah is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City of Ukiah's internal control over compliance with requirements that could have a direct and matedal effect on a major federal or other program for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Cimular A-133. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be matedal weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively Iow level the risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be matedal in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the intemat control over compliance and its operations that we consider to be a material weakness. This report is intended solely for the information and use of the City Council, management, and the Office of the Contreller of the State of California and is not intended to be and should not be used by anyone other than these specified parties. October 6, 2006 51 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 CITY OF UKIAH SCHEDULE OF FINDINGS AND QUESTIONED COSTS JUNE 30, 2006 A) Summary of Audit Results 1) The auditors' report expresses an unqualified opinion on the basic financial statements. 2) No reportable conditions related to the audit of the basic financial statements of the City of Ukiah. 3) No instances of noncompliance material to the basic financial statements of the City of Ukiah were disclosed during the audit. 4) No reportable conditions were disclosed during the audit of major federal award programs. 5) The auditors' report on compliance for major federal award programs for the City of Ukiah expresses an unqualified opinion. 6) No instances of noncompliance material to major federal award programs of the City of Ukiah were disclosed during the audit. 7) The programs tested as major programs included: a. Department of Transportation Airport Improvement Program CFDA: 20.106 8) The threshold for distinguishing Types A and B programs was $300,000. 9) The City of Ukiah was determined to be a Iow-risk auditee. B) Findings - Financial StatsmentAudit No reportable conditions were noted during the current audit period. There were no findings outstanding from prior year audits. C) Findings and Questioned Costs - Major Federal Award Programs No findings or questioned costs noted. There were no findings or questioned costs outstanding from prior year audits. 52 -~ DAVIS HAMMON & CO. I ~-~ Certified Public Accountants I I LJ INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS Davis W. Hammon, Jr, CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J. Herr, CPA Kerry A. Webber, CPA James L Duckett, CPA Honorable Mayor and City Council Members of the City of Ukiah Ukiah, California 95490 We have applied the procedures enumerated below to the Appropriations Limit calculations of the City of Ukiah for the year ended June 30, 2006. These procedures, which were agreed to by the City of Ukiah and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This engagement to apply agreed-upon procedures was performed in accordance with standards established by the Amedcan Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1) We obtained the City's cempleted alternate computation Appropriations Limit worksheets, and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Finding: No exceptions were noted as a result of our procedures. 2) Using the City's alternate computational worksheet, we added last year's limit to the total current year limit adjustments, as computed, for this year, and compared the results to this year's limit. Finding: No exceptions were noted as a result of our procedures. 3) We compared the prior year appropriations limit presented in the alternate computational worksheets to the pdor year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the Appropriations Limit alternate computational worksheets. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have peen performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication Article X/IIB Appropriations Lknitation Uniform Guidelines. This report is intended solely for the use of the City of Ukiah and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes. However, this report is a matter of public record and its distribution is not limited. October 6, 2006 53 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Oroville, CA 95966-5341 (530) 533-3392 FAX (530) 533-2714 DAVIS HAMMON & CO. Certified Public Accountants ATTACHMENT Davis W Hammon, Jr, CPA (1924-1989) Stephen B. Norman, CPA · PFS Stephen J Herr, CPA Kerry A. Webber, CPA James L. Duckett, CPA REPORT OFINDEPENDENT ACCOUNTANTS To the Honorable Mayor and Members of the City Council of the City of Ukiah, California In planning and performing our audit of the financial statements of the City of Ukiah (the "City") for the fiscal year ended June 30, 2006, we considered the City's internal control structure in order to determine our auditing procedures. Although our audit was not designed to provide assurance on the internal control structure, we noted certain matters involving the internal control structure and its operations, and are submitting for your consideration related recommendations designed to help the City make improvements and achieve operational efficiencies. Our comments reflect our desire to be of continuing assistance to the City. Additionally, we have included a statement on Required Communications with the City Council as required by professional standards. The accompanying comments and recommendations are intended solely for the information and use of management of the City, the City Council and others within the organization. Please contact Stephen J. Herr at (530) 533-3392 should you have any questions regarding this report, or any other matters. Respectfully Submitted, December 9, 2006 MEMBERS: AMERICAN INSTITUTE AND CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS 2080 Myers Street, Orovilie, CA 95966-5341 (538) 533-3392 FAX (530) 533-2714 CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Contents SECTION I - Required Communications SECTION II - Observations and Recommendations CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Section I - Required Communications Professional auditing standards require auditom to communicate with the City Council on a number of subjects. The following information satisfies these requirements, and is solely for the use of management and the City Council. A. A~JditQrs' Resoonsibilitv Under Generally Accepted Auditina Standards and OMB Cimular A-133 As stated in our engagement letter dated May 25, 2006, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the City's financial statements are free from material misstatement and are fairly presented in conformity with U.S. generally accepted accounting principles~ Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting, We also considered internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purposes of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain previsions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not as objective of our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) CircularA- 133 Compliance Supplement applicable to each of the City's major federal programs for the purpose of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable basis for our opinion, it does not provide a legal determination on the City of Ukiah's compliance with those requirements. It should be recognized that our audit provides no assurance that illegal acts will be detected, and only reasonable assurance that illegal acts having a direct and material effect on the determination of financial statement amounts will be detected. Financial statements and the establishment and maintenance of internal control structure are the responsibility of management. Appropriate supervisory control procedures are necessary to provide reasonable assurance that adopted policies and procedures are adhered to and errors and illegal acts are identified. B. Siqnificant Accountino Policies Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies of the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed dudng the year. Dudng the year, the City entered into a capital lease agreement for a current refunding of the 1995 Landfill Certificates of Participation. In accordance with accounting requirements, costs associated with the issuance of debt and the refunding loss have been deferred and amortized over the life of the lease. C. Ac(~ntincl Estimates The financial position and results of operation of the City at any date or for any period of time are dependent on estimates. Significant estimates that are based on subjective and objective factors include: Collectibility of accounts and loans receivable. Liability for landfill closure and post-closure costs. Depreciable remaining lives of fixed assets. Unbilled receivables. CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Management has indicated that the estimates included in the financial statements at June 30, 2006 are reasonable. However, current conditions could change, and revisions to these estimates may impact future financial statements. D. Audit Adiustments We made adjustments to the trial balances that were presented to us at the beginning of the audit. Significant adjustments included: Record various transfers approved by adopted/amended budget. Correct recording of General Fund loan to Golf Fund. Correct balances of amounts held with various fiscal agents. Correct amounts reported for outstanding long-term liabilities. Accrue various receivables including property taxes and grants. Accrue unbilled revenue receivable. Adjust inventory balances. Accrue additional construction costs. Adjust accrued vacation. Record year-end encumbrances. Adjust landfill closure and post-closure liability. Adjust investments to reflect fair-value reporting. Adjust reserves in Capital Projects funds to reflect impact of current year activity. Capitalize and depreciate fixed asset s. CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Section II - Observations And Recommendatione Current Year Findinas 2006-1 Undeoosited Checks Observation: We noted two of instances where checks were received by the City, but not deposited into the City's bank until months after the checks were received. Staff explained the checks were being held until a determination was made as to which accounts would be used to record the transaction. The determination was delayed due to changes in Finance Department staff. However, a check in the amount of $233,933.30 dated July 28, 2006 remained undeposited as of October 3, 2006. Recommendation: Checks received by the City need to be deposited to the bank in a timely manner. While we understand the changes in personnel have temporarily impacted the Finance Department experience level, it is never a good idea to hold on to checks received for an extended period of time. We recommend the City establish an 'unallocated revenue" account line item within its Agency Funds to temporarily record the check until the proper general ledger account can be determined. This will allow the checks to be deposited in a timely manner. Once the determination has been made, the transaction can easily be properly recorded. Management's Response: Process was put in place where all checks received by Staff are deposited immediately while general ledger (G.L.) account determination is made. Once determination of the proper G.L. account is made, transaction is recorded to G.L. 2006-2 Summercreek Note Observation: As part of the City's HOME Partnership grant program, a loan of $975,510 was made to Ukiah Summercreek Associates to assist with the gap financing of a 64-unit rental housing project. The loan agreement was date August 15, 2003 and the project's completion date was June 15, 2004. Section I(A) of the City Loan Agreement states that loan "payments will be made annually based on Residual Receipts as defined in Section IV(D), with the first payment due on April 15 in the year following the first complete calendar year afier the Date of Completion." When we inquired, the City determined that as of June 30, 2006 no payments were due under the terms of the agreement. Recommendation: The City should establish a policy to monitor this loan agreement, as well as others made over the past several years with the Community Development Commission and Rural Communities Housing Development Corporation, to ensure the borrower remains in compliance with terms of the loan agreement. The City's policy should include monitoring the borrower's audit requirements and review all audit reports issued. Any mutually agreed amendments to loan agreements should be wdtten and prepared in a timely manner. Management's Response: All loan agreements have been reviewed by Staff as suggested. Process is in place to follow up with all borrowers on an annual basis to ensure compliance. 2006-3 PERS Paid Bv Emolovees Observation: Two years ago the City modified its PERS plan to provide a higher benefit for its employees. As part of the City's negotiations with the employee bargaining units, a portion of the increased cost of the increased PERS benefit would be paid be the employees. Initially, CalPERS computed a separate rate for the cost of the increased benef'~, however CalPERS no longer provides the separate rate amount. Currently, the City's Finance Department determines the annual rate required for the increased benefit and withholds amounts from employee's paychecks. Amounts withheld ara deposited into City general ledger account 940.200.732 and, in-turn, ramified to CalPERS. The balance of the account at June 30, 2006 was $854,474. CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Recommendation: We recommend the City periodically hire a qualified actuary to review the terms of the agreement to ensure an appropriate amount is being withheld. An actuarial review every five (5) years would validate that the City is recovering the costs of the additional benefit. Management's Response: CalPERS withholdings are monitored by Finance Director in consultation with City Manager and annual actuarial valuation report. Ending Fund balance is held as a reserve for anticipated future increases in costs of the enhanced benefit. Staff agrees with periodically hidng a qualified Actuary to review account computations. 2006-4 Carousel Sewer Line Observation: When the Carousel sewer line was constructed by the City for the Ukiah Valley Sanitation District, an agreement was made with Mendocino College for reimbumement of development fees paid by the College for the construction of the line. As individuals hooked-up to the line, a fee was collected to reimburse the College. To date, it appears sufficient hook-up fees have been collected to repay the College in full, but no remittances have been made (or requested to be made by the College) for several years. The unremitted balance accrued in general ledger account 650.202.001 is $102,859.75. Recommendation: The City should consider contacting Mendocino College and discuss the status of these funds. Management's Response: Staff will work with Mendocino College in order to seek agreement on the final payment of collected funds to the College on the balance of hook up fees. 2006-5 Infrastructure Reoortino Observation: The Governmental Accounting Standards Board Statement No. 34 Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments (GASB 34) requires retroactive reporting of infrastructure assets (roads, sidewalks, bridges, etc.) GASB 34 delayed the implementation of the retroactive reporting requirement for many entities based on the relative size of the entity. The City of Ukiah is required to implement retroactive infrastructure reporting in the fiscal year following June 15, 2006 - 2006/07. Failure to comply with this requirement will result in a modified auditor's opinion on the City's financial statements. Recommendation: The City should take the necessary steps to inventory and determine the historical cost of its infrastructure assets. If determining the actual historical cost of infrastructure assets is not practical because of inadequate records, GASB 34 permits reporting the estimated historical cost for major general infrastructure assets that were acquired, signiticantly reconstructed or significantly improved in fiscal years after June 30, 1980. Management's Response: GASB 34 RFP has been issued with work scheduled to begin in Spring 2007 in order to meet implementation due date - 2006/07 for asset infrastructure reporting. 20O6-6 Debt Oblioation Covenants Observation: The City has issued two (2) separate installment obligations for the Water and Wastewater construction projects. With each issue the City has made a covenant to maintain revenues from the Water System and Wastewater System sufficient to cover operational and other costs plus 120% of debt service costs. Since the debt obligations were initially issued in 2005/06 fiscal year, calculations for compliance would be inconclusive. However, in subsequent years the City will need to monitor its operations to ensure it is in compliance with the covenants. Recommendation: City should review its obligations under the terms of these debt agreements and establish procedures to monitor its compliance. If any definitions or clauses within the agreements are subject to interpretation, the City should cleady describe its position taken and the justification for it. Legal bond counsel should be consulted when deemed appropriate. CITY OF UKIAH FISCAL REPORT TO THE CITY COUNCIL JUNE 30, 2006 Management's Response: Staff has put in place an annual review process of its obligations under the terms of outstanding debt agreements identified in the fiscal report in order to monitor its compliance. Intamal Legal Counsel and/or externa! Bond Counsel will be consulted when appmpdate. AGENDA SUMMARY ITEM NO. 7b DATE: April 4, 2007 REPORT SUBJECT: REPORT TO CITY COUNCIL REGARDING THE PURCHASE OF A COMPREHENSIVE IRRIGATION EVALUATION FROM DAVID BIGLER ASSOCIATES FOR THE UKIAH MUNICIPAL GOLF COURSE IN THE AMOUNT NOT TO EXCEED $6,000.00 SUMMARY: Pursuant tothe requirements of Section 1522 ofthe Municipal Code, Staffis filing with the City Council this report regarding the purchase of a comprehensive irrigation evaluation for the Ukiah Municipal Golf Course. Requests For Quotation (RFQ) were requested from four qualified bidders. Only two proposals were returned that fit the required criteria, David Bigler Associates and Coates Engineering. David Bigler Associated provided two proposals, the first for $1,500 compares to the other proposals we received. The second for $5,000 has a broader scope and would encompass an in depth and fully comprehensive evaluation of the course. Please see attachment #1, an e-mail from our golf professional, James Stewart of Tayman Park that addressed this second proposal's value in comparison to the other proposals. Due to Mr. Stewart's recommendation that a detailed analysis will better help staff to strategically plan for the future, staff chose to use David Bigler Associated in the amount not to exceed $5,000.00 plus up to $1,000.00 for reimbursable travel expenses. This item is funded within the Water Department's Water Conservation Account 820.3901.250.005. Refer to the following table for a complete summary of bids. Consultant Simple Analysis Detailed Analysis David Bigler Associates $1,500 + exp from Fresno $5,000 + exp from Fresno Coates Engineering $2,800 + expenses from AZ N/A Kuhn & Associates N/A $5,250 + expenses from WA Russ Mitchell Not submitted Not submitted RECOMMENDED ACTION: Receive report regarding the purchase of a comprehensive irrigation evaluation for the Ukiah Municipal Golf Course in the amount not to exceed $6,000.00. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A FUNDING: Amount Budqeted $6,OOO.OO Account Number 280.3901.250.000 Additional Funds Requested N/A Citizen Advised: Prepared by: Coordinated with: Attachments: James Stewad, Tayman Park Golf Group Sage Sangiacomo, Community/General Services Director, Ann Burk, Water/Utilities Project Engineer, and Maya Simerson, Community Services Supervisor Candace Horsley, City Manager and Mary Horger, Purchasing Supervisor Attachment #1: Recommendation from golf pro James Stewart Ap p ROVE D ~4~,¢4~'~ Candace Horsley, City Ma~,ager ATTACHMENT Maya Simerson From: Tayman Park Golf Group Tayman [taymangolf@sbcglobal.net] Sent; Friday, March 16, 2007 3:31 PM To: sages@cityofukiah.com Cc: mayaa@cityofukiah.com; jameswstewart@sbcglobal.net Subject: Analysis of Irrigation Consultant Proposals Dear Sage, In reviewing the proposals submitted by the four different irrigation consultants; Gaylon Coates, Coates Engineering Dave Bigler, Bigler & Associates Scott Kuhn, Kuhn & Associates Russ Mitchell, Irrigation Engineer there were only two proposals that fit the criteria required and requested. These two proposals were from: Gaylon Coates, Coates Engineering Dave Bigler, Bigler & Associates In comparing the two proposals and in telephone conversations, Dave Bigler had given tl~e City of Ukiah two alternatives - a basic summary report reviewing irrigation system basics for $1500 or an indepth report tackling issues specific to ~.a.!} GC for $5000. In reviewing the proposal submitted by Gaylon Coates at a cost of $2800 plus expenses from ~.z...o..n...a., this report would be equivalent to the summary report of Dave Bigler~s at a cost of $1500 and expenses from Fresno, which are less. Thus, in comparing apples and apples, Mr. Bigler is less expensive - ahnost 50% i~}"~i~d if we were comparing the costs of an indepth report Mr. Bigler would still be equivalently less in cost. In addition, as the City of Ukiah is desiring the more in-depth report so that this report can be used by the Public Utility Dept. and Cmmnunity Services Dept.for their long term planning purposes and Mr. Bigler is the only one to have truly addressed these issues in the examples he submitted, I would therefore recommend that the City of Ukiah proceeds with Mr. Bigler's proposal dated 9 March 2007. If you have any further questions, please do not hesitate to contact me at 799-4263. Sincerely, Ukiah Municipal Golf Course 3/23/2007 AGENDA ITEM NO: 7c MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: THIS IS TO NOTIFY THE CITY COUNCIL OF THE PURCHASE OF ONE PAPERLESS CHART RECORDER FROM MANCO IN THE AMOUNT OF $5,905.44 Pursuant to the requirements of Section 1522 of the Municipal Code, staff is notifying the City Council of the purchase of one 18 channel paperless chart recorder from MANCO of Napa, California for the amount of $5,905.44. The recorder is manufactured by Eurotherm Chessell which is the manufacturer of all of our newer recorders and has an excellent track record for ease of use, programmability, and reliability. The current paper chart recorder was damaged during an electrical distribution malfunction on March 4, 2007 and needs to be replaced to comply with California Department of Health Services regulatory requirements. MANCO was the Iow bidder of the three quotes received. Funds were available within account number 820.3908.302.000 for this purchase. COMPANY QUOTED PRICE MANCO $5,905.44 Eurotherm Chessell Recorders $6,271.79 Fluid Gauge $6,589.99 RECOMMENDED ACTION: Receive notification of the purchase of one Eurotherm Chessell paperless recorder from MANCO for $5,905.44. ALTERNATIVE COUNCIL OPTIONS: NA Citizens Advised: NA Requested by: Ann Burck, Water Utilities Project Engineer Prepared by: Alan Jamison, Water Treatment Plant Supervisor Coordinated with: Candace Horsley, City Manager Attachments: None Approved~ ~-'t~-'~ Candace Horsley, Cit~Manager AGENDA ITEM NO: MEETING DATE: 7d April 4, 2007 SUMMARY REPORT SUBJECT: STATUS OF THE LAKE MENDOCINO HYDROELECTRIC POWER PLANT EQUIPMENT REFURBISHMENT EMERGENCY At its May 17th, 2006 meeting, Council voted unanimously to declare the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project an emergency and authorized the City Manager to take action to resolve the emergency until such time that the emergency no longer exists. To that end, the City Manager has contracted with Source California Energy Services, Inc. to perform the work necessary to refurbish the power plant equipment that was damaged and contaminated as a result of flooding that occurred earlier this year. Statute requires that progress reports be made at every City Council meeting until such time that the contract is complete and the emergency no longer exists. Unit 1 has continued to operate while the plant is manned at 0.94 MW since the initial start-up on March 20th. The unit is operating during the day, but shut down at night until testing of the communication line for on-going monitoring of the system through NCPA at Roseville is complete. The unit is expected to run a full 24 hours by April 2nd. Start-up for Unit 2 remains on schedule for April 5th. Remote operation from the NCPA dispatch center in Roseville is proceeding as planned. A progress report from the Project Manager for Source California Energy Services, Inc. is detailed in Attachment 1. RECOMMENDED ACTION: Staff recommends that the Council continue to declare by a 4/5 vote that the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project is a continuing emergency and to support the refurbishment contract as performed by Source California Energy Services, Inc. until such time that the contract is complete and an emergency no longer exists. ALTERNATIVE COUNCIL OPTIONS: Given that Council declared the Lake Mendocino Hydroelectric Power Plant equipment refurbishment project an emergency at its May 17th Council meeting, and based on that action, the City entered into contract to resolve the emergency, there is no alternative policy option. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council Liz Kirkley, Electrical Distribution Engineer Candace Horsley, City Manager; David Rapport, City Attorney 1. 3/27/07 Source California Hydro Proiect Status Report Approved: (.-~'~ ~% Candace Horsley, Cit)y Manager Candace Horsley, City Manager Date: March 27, 2007 To: City of Ukiah ATTACHMENT 1 Below is a short summary of work that has been accomplished in the last two weeks. Safety and environmental compliance continues to be accident and incident free. 1 ) Computer monitoring of Unit I is operational from the local power plant workstations. 2) Unit l's generator and the 12kV recloser trip circuits have been fully tested. 3) The new generator Automatic Voltage Regulator (AVR) has been tested and is fully functional. 4) The generator main breaker was racked into service, functionally tested, and used for initial unit paralleling. 5) Unit I has completed initial manual electrical generation to full available load of 940 kW. 6) Unit l's High Pressure Control Unit (HPCU) has been initially calibrated for automatic operation. 7) The auto-synchronizer has successfully paralleled Unit 1 to the system. 8) Final test checks of the new Unit 1, 2.4 kV, and 12kV Schweitzer electrical protection relays are completed and operational. 9) Automation software downloading and testing for river flow control and Unit 1 startup is approximately 70% completed. 10) The Unit 2 PLC field terminations are 90% completed. 11 ) The transfer trip circuit is completed except for a full functional electrical trip test initiated from Gobbi substation. 12) The operator's console and engineer's workstation are installed and functional. Paul B. Dirks Project ManagedSr. Mechanical Engineer Source California Energy Services, Inc. AGENDA SUMMARY Item No 7e Date: April 4, 2007 REPORT SUBJECT: AWARD OF BID FOR 6,000 FT. OF 750 MCM ALUMINUM, 600V, SINGLE CONDUCTOR CABLE TO AMERICAN WIRE GROUP IN THE AMOUNT OF $13,007.58 A Request for Quotation was sent to eight suppliers for 6,000 ft of 750 MCM aluminum, 600V, single conductor cable. Six bids were received; American Wire Group was the lowest bidder in the amount of $13,007.58. This cable will be placed in warehouse stock for planned future projects and has been budgeted in the 2006/07 Fiscal Year in Account Number 800.3646.690.000. Sufficient funds are available. Bid results are indicated below: 6,000' OF 750 MCM ALUMINUM~ 600VT SINGLE CONDUCTOR CABLI= American Wire Group Nehring c/o Stephens, McCarthy, Landcaster, LLC HD Supply Utilities Champion Wire & Cable G.E. Supply Okonite $13,007.58 $13,576.50 $14,003.19 $17,229.23 $24,825.60 No Bid RECOMMENDED ACTION: Award bid to American Wire Group in the amount of $13,007.58 for 6,000 ft. of 750 MCM aluminum, 600v, single conductor cable. ALTERNATIVE COUNCIL POLICY OPTIONS: Reject all bids and provide direction to staff. Citizen Advised: N/A Requested by: Colin Murphey, Electrical Supervisor Prepared by: Judy Jenney, Purchasing & Warehouse Assistant Coordinated with: Candace Horsley, City Manager APPROVED: ~v~'~ Candace Horsley, City M~ager AGENDA ITEM NO: 7f MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS BY THE UKIAH REDEVELOPMENT AGENCY TO REFUND A 1994 LOAN AGREEMENT The Ukiah Redevelopment Agency (URA), the City of Ukiah and the City of Sonoma were participants in a $9,510,000 financing by the Redwood Empire Financing Authority in January 1994. The RDA's participation in this financing was $6,935,000 which was used to refund the Agency's 1992 Tax Allocation notes, which in turn financed various projects within the Redevelopment Project Area. Approximately $5,305,000 remains as the Ukiah Redevelopment Agency's portion of the 1994 issue. The bonds currently carry interest rates ranging from 6.0% to 6.4% and are callable on June 1, 2007 without incurring a premium. The refunding would lower the URA's debt service requirements from its present range of 6.1%-6.4% to a rate of approximately 3.85% to 4.85%. On October 4th, 2006 the URA adopted Resolution 2006-14 directing the implementation of proceedings for the refunding of Redwood Empire Financing Authority Certificates of Participation issued in 1994, and providing other matters relating thereto. On November 15, 2006 the Council introduced an ordinance amending ordinance 895 and URA Resolution No. 99-1 by revising redevelopment RDA plan time limits for incurring and repayment of debt and for the effectiveness of the plan. This ordinance enabled the financing process to move forward. (continued on pa.qe 2) RECOMMENDED ACTION: Adoption of Resolution of the Ukiah City Council approving the issuance of tax allocation refunding bonds by the Ukiah Redevelopment Agency to refund a 1994 loan agreement. ALTERNATIVE COUNCIL POLICY OPTIONS: Continue existing financing or provide alternative direction to staff. Requested by: Prepared by: Coordinated with: Attachments: Brent Smith, Finance Director Brent Smith, Finance Director Candace Horsley, City Manager; David Rapport, City Attorney (1) Resolution Approved: ~._.Ac~::~%-A-~,-,~_~ ~ Can~-~d~ace Rorsley, Cit~anager With the introduction and adoption of both the resolution and ordinance now completed, the external financing team continued to prepare the necessary plan documents and reports that are required for the refunding process which is now scheduled for completion by June 2007. Council Action Requested: Staff recommends that Council adopt the resolution before them, authorizing the Ukiah Redevelopment Agency to issue its not-to-exceed $5,600,000 Tax Allocation Refunding Bonds, Series 2007 for the purpose of refunding the 1994 Loan Agreement. A'I-rACHMENT / RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS BY THE UKIAH REDEVELOPMENT AGENCY TO REFUND A 1994 LOAN AGREEMENT WHEREAS, the Ukiah Redevelopment Agency (the "Agency") has adopted the redevelopment plan (the "Redevelopment Plan") for the Ukiah Redevelopment Project (the "Redevelopment Project") under Part 1 of Division 24 of the Health and Safety Code of the State of California (the "Redevelopment Law"); and WHEREAS, in accordance with Articles 10 and 11 of Chapter 3 of Part I of Division 2 of Title 5 of the California Government Code (commencing with Section 53550 thereof) (the "Refunding Law"), the Agency is authorized to issue its bonds for the purpose of refunding its bonds; and WHEREAS, the Agency entered into a Loan Agreement, dated as of January 1, 1994, between the Agency and the Redwood Empire Financing Authority ("REFA'), in the principal amount of $6,935,000, of which $5,305,000 is presently outstanding (the "1994 Loan Agreement"); WHEREAS, the Agency wishes at this time to issue its not-to-exceed $5,600,000 Ukiah Redevelopment Agency (Ukiah Redevelopment Project) Tax Allocation Refunding Bonds, Series 2007 (the "Series 2007 Bonds") for the purpose of refunding the 1994 Loan Agreement; WHEREAS, prepaying the 1994 Loan Agreement will have the effect of causing the redemption of a like principal amount of Redwood Empire Financing Authority Certificates of Participation, 1993 Series B (the "1993 Certificates"), executed and delivered under a Trust Agreement, dated as of January 1, 1994, among the Agency, First Interstate Bank of California, as trustee, the City of Ukiah and the City of Sonoma (the "1994 Trust Agreement"); and WHEREAS, the Redevelopment Law requires that the City Council approve the issuance of the Series 2007 Bonds by reason of the pledge of said tax increment revenues as security for the payment of the Series 2007 Bonds; and WHEREAS, it is in the public interest, for the public benefit and in furtherance of the public purpose of the City that the City approve the issuance of the Series 2007 Bonds by the Agency for the aforesaid purposes. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah as follows: Section 1. The City Council of the City of Ukiah hereby approves the issuance of the Series 2007 Bonds by the Agency under the Refunding Law for the purpose of refunding the 1994 Loan Agreement. Section 2. This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Ukiah at a regular meeting thereof held on the 4th day of April, 2007. AYES: NOES: ABSENT: Mari Rodin, Mayor ATTEST: Gail Petersen, City Clerk -2- ITEM NO. 9a DATE: April 4, 2007 AGENDA SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION ADJUSTING FEES FOR THE UKIAH MUNICIPAL GOLF COURSE On February 27, the Parks, Recreation, and Golf Commission requested an overview and update of the Ukiah Municipal Golf Course operations and fee schedule. The information was presented, reviewed, and considered in a workshop format facilitated by the Community Service Department and Golf Pro staff. The comprehensive workshop presentation is included as Attachment #1 for review. Subsequently, on March 13, the Commission held a special meeting to focus primarily on the fee schedule in an effort to address a projected deficit of $122,906 for Fiscal Year 06/07. Golfers and general community members with an interest in golf were encouraged to attend and participate in the discussions. The meeting dates and locations were announced using a number of methods including news releases issued to all media sources, mass e-mails to all registered golfers, postings at the Ukiah Municipal Golf Course, and an announcement in the Men's Club newsletter. The presidents of all three golf clubs were in attendance at both meetings along with interested members of the public. Continued on Page 2 RECOMMENDED ACTION: Adopt a resolution adjusting fees for Ukiah Municipal Golf Course. ALTERNATIVE COMMISSION OPTIONS: 1. Determine adoption of a resolution adjusting fees for the Ukiah Municipal Golf Course requires further consideration and remand to staff with direction. 2. Determine adoption of a resolution adjusting fees for the Ukiah Municipal Golf Course is inappropriate at this time and do not move to approve. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Parks, Recreation, and Golf Commission Sage Sangiacomo, Community/General Services Director and Maya Simerson, Community Services Supervisor Frank Johnson/Jimmy Stewart, Tayman Park Golf Group, Inc. and Candace Horsley, City Manager 1. Ukiah Municipal Golf Workshop 2. Draft Resolution Adjusting Fees for the Golf Course APPROVED::~ .~~'~, Candace Horsley, City rv~nager Attachment # ITEM NO. 3A DATE: February 27, 2007 PARKS, RECREATION, AND GOLF COMMISSION AGENDA SUMMARY REPORT SUBJECT: UKIAH MUNICIPAL GOLF COURSE WORKSHOP ON OPERATIONS AND FEES Introduction The Parks, Recreation, and Golf Commission requested an overview and update of the Ukiah Municipal Golf Course operations and fee schedule. This information will be presented, reviewed, and considered in a workshop format facilitated by Community Service Department and Golf Pro staff members. The purpose of the meeting is to have a general discussion of course operations and then focus in on issues that need to be addressed. Golfers and general community members with an interest in golf are encouraged to attend the February 27, 2007 meeting at 5:30p.m. at the Ukiah Valley Conference Center (200 South School Street). The meeting date and location were announced using a number of methods including a news release issued to all media sources, a mass e-mail to all registered golfers, postings at the Ukiah Municipal Golf Course, and an announcement in the February Men's Club newsletter. Continued on Page 2 RECOMMENDED ACTION: Discuss and consider the operation and fees for the Ukiah Municipal Golf Course. ALTERNATIVE COMMISSION OPTIONS: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A Parks, Recreation, and Golf Commission Sage Sangiacomo, Community/General Services Director and Maya Simerson, Community Services Supervisor Frank Johnson/Jimmy Stewart, Tayman Park Golf Group, Inc. t. Golf Course Operations Plan and Improvement Projects 2. Current Rounds Report 3. Draft Rate Proposal 4. Course Fee Comparison Chart APPROVED: 23..//¢¢~.~.~- ,~ a'g e Sangiacomo, Community Services Director Overview of Discussion The workshop will include a summary presentation by Golf Pro staff on the Golf Course Operations Plan and Improvement Projects Report. The report is a working document that provides recommendations on daily maintenance operations, staffing, equipment, and capital improvements. This first edition of the report was submitted by the January 31, 2007 deadline as required by the Professional Services Contract and represents the recommendations of the Golf Professional in consultation with the Golf Maintenance Division. It should be noted that implementation of some of the items in the report may be limited by staff and financial constraints. The report is included as Attachment #1 for review. In addition, the workshop will include a detailed discussion on the golf budget, rounds, fees, and other related issues. In June of 2005, the City Council adopted a new fee schedule for the Ukiah Municipal Golf Course in an effort to address an increasing operational deficit. While the revised fee schedule has reversed the increasing deficit trend, the schedule is not adequate to fully recover costs to maintain/operate the course or capitalize for improvements and equipment replacement. Current projections for revenue (not including Contractor's percentage) are estimated at $507,000 for the current fiscal year as opposed to the previous year at $487,839. (Note: These estimates are based on actual receipts minus the percentage owed to the contractor and can not be compared to revenue figures in past budget summaries which are based upon partial gross revenue. With the implementation of the new Professional Services Contract, all revenue is now deposited with the City). Golf Budget Every effort has been made over the years to maintain as lean an expenditure budget as possible in order to keep fees affordable and operate the course as an Enterprise Fund as directed by Council. Staffing levels are at an absolute minimum to maintain the quality of play required at the course and maintenance expenditures have been reduced to only essential operations, The operations and maintenance budget has remained relatively static (within 3%) due to decreases in expenditures for equipment replacement and improvements. In addition, the City has been successful in operating the course more efficiently including decreasing cost for administration and refinancing the loan for the purchase of the back nine. The current fiscal expenditures for the course are budgeted at $629,906. In review of the current revenue projections versus budgeted expenditures, the projected deficit for Fiscal Year 06/07 is estimated at $122,906. Revenue generation has significantly been limited with the industry wide decline in rounds played. With the installation of a point of sale system this past year, the City is now receiving detailed information about the quantity and type of rounds being played at the course. Attachment #2 is the current rounds report for the course. Golf Fees Green fees represent the main source of revenue to recover operational costs for the course. The adoption of the current fee schedule included primarily a decrease in daily fees and an increase in annual fees in an attempt to improve parity among all golfers and improve budget performance. While revenue is projected to have increased from the previous year, it will not be sufficient to offset expenditures and further adjustments to the fee schedule are required. Given the previous increase in the annual categories and the larger than anticipated shift from annual rounds to daily, staff believes at a minimum the daily fees need to be adjusted back to near the previous levels from a year and half ago. A draft fee schedule reflecting these changes is included as Attachment #3 as a point to begin discussion. However, simply adjusting the daily fees back to the previous levels is not adequate to offset expenditures and the Commission will need to discuss other fee categories and options to increase revenue. As previously discussed during the past fee adjustment, the City has a number of discounted fee categories that make it difficult to recover cost. Furthermore, the diversity of fee categories is not consistent with industry standards. This is demonstrated in Attachment #4 which includes a comparison of green and chart fees for other courses in the region. Many of these courses have limited discounted fee categories, no private carts, and have phased out unlimited annual fees. Individual Golfer Concerns The Commission should be aware of other changes to the schedule requested by individual golfers including the addition of a nine hole rate, a senior unlimited annual rate, and switching Fridays back to the weekday category. However, each of these items represents an additional discounted fee type and their addition could limit revenue generation. Conclusion Staff recognizes that fee adjustments are just one piece to the puzzle to balancing the golf budget. In addition, too drastic of an increase or change at one time has the potential to disenfranchise customers. Other potential cost saving measures that are actively being pursued include increasing the number of rounds played, consolidation of maintenance operations with Pro Services, development of onsite water soumes, expanding food/beverage services, development of a driving range, and continued partnership with the local golf clubs to undertake improvement projects. Attachment # GOLF COURSE OPERATIONS PLAN AND IMPROVEMENT PROJECTS UKIAH MUNICIPAL GOLF COURSE CITY OF U~C~AH Submitted by: Frank Johnson/Jimmy Stewart, Tayman Park Golf Group, Inc. Table of Contents Section 1 - Overview Section 2 - Daily Course Maintenance Operations Section 3 - Staffing Section 4 - Equipment Section 5 - Improvement Projects Section 6 - Summary 1/31/07 Page 1 of 13 Section 1 - Overview As a part of the agreement for Golf Professional and Golf Course Concession Services, it was agreed that under the direction of the City, Tayman Park Golf Group, Inc. would develop a Golf Course Operations Plan which would provide recommendations on Daily Course Maintenance Operations, Staffing, Equipment and Improvement Projects. We feel that this "Golf Course Operations Plan & Improvement Project Report," is a living, working document and is a starting point/framework from which it can be updated and improved upon each year. In tiffs first report, as we have been here less than a calendar year, we have set up the framework and areas of focus where it will be our goal this coming year, based on input from all players using the golf course, to assist ha tandem with the City and the Men's Club in determining the priority of projects, the costs and optimum schedule so as to not affect play, along with the amount of funds that are available to complete these projects in a timely fashion - the City from budgeted fimds & the Men's Club fi'om Cart Barn revenues which per the lease agreement with City are to be designated for course improvements. In Section 6 under "Summary" we have also made some brief recommendations on long term planning, revenue enhancement and cost control to ensure that funds are truly available each year so that we can carry out recommended improvement projects Our mission statement that we have coined for Ukiah Municipal Golf Course's wltich we hope will be adopted officially is as follows. "The mission of the Ukiah Municipal golf course is to become the best eighteen hole municipal golf course in Northern California, thereby providing the citizens of Ukiah with a fun, affordable golf experience for a wide variety of ages and abilities, while maintaining the history of the course and a positive outlet within the City. Additionally, the course will provide opportunities for non-profit organizations, serve as a recreation area, and be a tourist draw to the City while providing a positive image of Ukiah. In the long term, the operations of the golf course should be cost-neutral to the City." Thank you for allowing us to serve you. Frank Johnson & Jimmy Stewart Tayman Park Golf Group, Inc. 1/31/07 Page 2 of 13 Section 2 - Daily Golf Course Maintenance Operations Daily Golf Course Maintenance Duties The following items below are a list of recommended areas that will be maintimed by Golf Course Maintenance and Pro Shop Staff, depending upon weather conditions. All areas of the facility and grounds will be maintained in a professional manner which helps ensure that customers will enjoy their experience and return again to use the course and facilities. Clubhouse - The Clubhouse is to be preserved and kept in a professional manner. Staffwill keep the area clean, organized and presentable to all visiting players, guests and members of the community. New landscaping will enhance first impression that golfers and visitors receive when they arrive at the course. Parking Lot - The parking lot will be free of debris and dust at all times. The Parking Lot is the first impression that ail players, guests and members of the commmfity receive when they arrive at the course. Additional landscaping should be added to enhance this first impression of players, visitors and the community. Outside Eatinp_/Viewing Area - Tiffs area is located just outside of all entrance doors. This important area lends itself to the development of a picnic and seating area for outdoor use on sunny, clear & mild days. U~nbrella tables and chairs should be added to tlxis enhance area. Pro Shop - The golf pro shop will be clean and organized at all times. Bathrooms will be cleaned daily and the pro shop will be preserved and kept in a professional manner. Tees - Tees will be mowed twice weekly or as needed. Trash cans and signs should be placed at each tee. Tees shail be sanded and seeded weekly and tee blocks moved daily. Fairways - Fairways will be mowed twice weekly or as needed. Slice seeding in the fail, aerifying twice a year, removai of broad leaf grasses and creating more definition should be identified in future budgets. Greens - Greens will be mowed at least 5 days a week. On the days that greens are not mowed they should at least be dew whipped so that players have a dry surface to purr on and this aiso will prevent fm~gus growth as well. Use of waik behind mowers in winter and once a week waik mowing in summer will ailow for more frequent mowing and keep compaction to a minimum. Verti cut and top dress should be done more frequently. Verti drain greens twice a year m~d problem dry spots every few weeks in hot summer months. 1/31/07 Page 3 of 13 Collars - Collars will be cut twice weekly. Establishment of thicker and fuller grass in collars and approaches is needed. Additional slice seeding is recommended. Rough - Rough will be cut twice weekly. Operators will take furl.her steps to create more definition with the fairway. Broad leaf removal should be put into future budgets. On-course Restrooms - Daily cleaning is vital to the appearance of om' restrooms. Long term improvement will include new fixtures, lm~dscape, paint and external cleaning with washer. Bunkers - Bunkers will be raked daily and weeded when needed. New sand and drainage should be looked at as furore projects. 1/31/07 Page 4 of 13 Section 3 - Staffing Maintenance Staff Work Schedule The following is a recommendation for thc operation work schedule of thc Ukiah Municipal Golf Course maintenance staff. Monday - Sunday in summer months (March - October) The Supervisor is on call 24/7, and schedules, trains and supervises staff. Must be hands on with the ability to cover and fill in for all scheduled work including the function performed by the Golf Park Service Workers particularly focused on the irrigation system and pesticide applications. The Supervisor must attend all necessary meetings - Men's Club, Women's Club, Parks Rec & Golf Commission, etc.., to ensue that communication is maintained. The Golf Park Service Workers main focus is to help ensure that the irrigation system is working properly, the grass is irrigated sufficiently and yet water is conserved as well, especially in the hot summer months where such attention is vital to the course remaining playable and in excellent condition. Next, they must maintain and mow the course. There should have at least three full time Workers, one pm-time Worker and one seasonal Worker, particularly in the summer time. These Workers will cover weekends with a rotating schedule so two workers are working each weekend day and holiday. Monday - Sunday in winter months (November - February) All above employees with the exception of the two part time workers will stay and maintain golf course during winter. Minor & capital improvement projects on the golf course will be prefunned when rain and bad weather is apparent with extra attention paid to overhauling/maintaining all equipment in preparation for the busier March - October months. Current Staffing - Summary The Maintenance positions cun'ently in place are Supervisor and Golf Park Service Worker (fulltime, part-time, seasonal). Recommended Staffing It is recommended that over time maintenance staffing be broken down into thc roles and job descriptions listed below with personnel officially positioned or hired into these areas of expertise. 1/31/07 Page 5 of 13 Superintendent The Golf Course Superintendent is entrusted with the mmmgement of the ma'mtenance operations of the golf course. The Golf Course Superintendent assumes responsibility for managing and maintaining the golf course. He or she is responsible for the following: · Golf Course and practice areas. · Maintenance Equipment. · Clubhouse grounds and landscaping. · Restrooms and irrigation water on course. · Open spaces and areas on the course. · Sod Farm and nursery. · Working relationships with his or her staff. Training and organizing staff members and scheduling all members of staffto their projects. · Supervising the overall maintenance operations of the golf course, including capital & minor improvement projects. · Rendering professional advice, opinions, assistance and services to the facility's boards or managing body as required. · Participate in all long-range planning meetings. · Reports directly to the Community Services Director. · Meets weekly with Director of Golf to discuss areas of concern on the golf course. · Coordinates constantly with Director of Golf, Men's & Women's Club Presidents, Customers to ensure best possible playing conditions. · Promotes the game of golf. Promotes the City of Ukiah. Irrigation and Pesticide Specialist Under general snpervision, perform skilled work in various crafts necessary to install, maintain, repair, and service any type of sprinkler, supply line, controller, satellite, and pumping system used for irrigation on the golf course. Select and apply any pesticide and fertilizer used by the golf course, and perform related duties as required by the Superintendent. Golf Course Maintenance Worker Under the direction of the Golf Course Maintenance Superintendent, assist in performing general and varied ground maintenance duties at the golf course. Ukiah Municipal Golf Course should have three types of golf course workers on staffat all times. Golf Course Maintenance Worker I is an entry-level classification for part-time and fxflltime employees. Will assist in perform/ng maintenance duties. Golf Course Maintenance Worker II is an intermediate classification. Workers will maintain golf greens, fairways and related areas, repair and assist in the 1/31/07 Page 6 of 13 installation of irrigation and drainage systems, operate all equipment related to golf course maintenance and are licensed for chemical application. Golf Course Maintenance Worker III is a journeymen-level classification. Worker will assist in training entry level & part-time staff in equipment operations and maintenance practices, operate, adjust and service all equipment, install and repair irrigation and drainage systems and are licensed for chemical application. Pro Shop Staff Work Schedule The current schedule has the Pro Shop area manned from daybreak to sundown, including the F& B operation being open in the evening until guests desire to leave 365 days a year. Anyone serving liquor will be over the age of 21. Staffing The Golf Operation is currently staffed according to these roles listed below. Director of Golf/Head Golf Professional The Director of Golf/Head Golf Professional is entrusted with the management of the golf operations of tlie golf course. He or she is on call 24/7 and is responsible for the following. · Promoting the ganae of golf. Promoting the City of Ukiah. · Spreading hospitality, happiness mad good will among all members and guests. · Teaclting the game of golf. · Promoting Junior Golf at the Club. · Acting as Rules Official at all Tournaments · Reporting to and meeting with the City, various boards, Committee members on all golf operations related issues, policies and procedures. · Training, staffing and equipping of the staff and the Golf Shop. · Motivating staff members. · Working with City to assist in budgetary process and then meeting these sales goals. · Marketing of golf course to Ukiah and beyond. · Oversee all golf, tee sheet, pro shop, merchandise sales, cart fleet and F&B operations. · Checking daily deposits & finances to ensure completion & accuracy · Meet weekly and coordinate/commtmicate regularly with Golf Course Superintendent & staff to ensure best possible playing conditions for our patrons. 1/31/07 Page 7 of 13 First Assistant Professional · Spreading good will, hospitality among all members and guests. · Conducting Club Tournaments and Guests Touruaments including scoring & preparation of score sheets. · Acting as Rules Official at all Tournaments · Teaching and Conducting Golf clinics. · Controlling Tee Sheet, check in of players · Helping keep Golf Shop neat, clean and assist with inventory and maintain monthly inventory records. · Overseeing Golf Staff, organize staff meetings and assist all Golf Shop personnel. · Overseeing Memhandise Sales, F & B Sales & shop set up · Overseeing Cart Fleet operations · Closing out of dally operations, preparing daily deposits, check for accuracy. · Thorough understanding of overall operation. Pro Shop Assistants Spreading good will, hospitality mnong all members and guests. Merchandise sales, F & B sales, organize and help keep Shop neat and clean. Organizing merchandise, change displays and assist in all memhandise matters. Closing out daily operations, preparing daily deposits Cart Personnel · Keeping all carts in proper working order. Service in accordance with service policy. Report any major problems to First Assistant and/or Director of Golf. · Keeping all carts clean and neat. · Parking, storing & staging carts in an appropriate fashion Ranger/Ma rshall · Assuring the proper pace of play on the City's golf course. · Enforcing necessary golf course rules. · Keeping a roles book at all times, point out Club's rules and report slow groups to the pro shop staff. · Remembering diplomacy and discretion must be used with firmness to perform effectively as a Ranger. Coordination It is imperative that there is excellent conumunication between Golf Course Maintenance personnel and the Pm Shop Staff to ensure that the best possible playing conditions exist at all times for our customers. 1/31/07 Page 8 of I3 Section 4 - Equipment At the current time it is estimated that the City of Ukiah presently owns equipment with an estimated replacement value of approximately $250,000. Of this, pieces of equipment with an aggregate value in excess of $30,000 are nearing the end of their useful lives and will have to be replaced in the near future. The following is a list of equipment (in order of priority) that could enhance and help the Maintenance Supervisor and staff better do their job and eliminate undue maintenance expenses. Greens Mower as existing mower has been rebuilt two or three times and is costing more money to maintain than purchasing a new mower. Cost $22,000 New Fairway Aerator & Tractor to start an in-house program to help fairways and tees. Cost $36,000 Walk Behind Greens Mowers (2) to enhance winter play and to help with compaction issues in the sunm~er. Cost $11,000 (total for two mowers) 200 Gallon Spray Rig (or equivalent) to help in removing broad leaf from fairways, tees and rough. Cost $10,000 Bunker Rake to enhance the look of all bunkers. Cost $7,500 These are the most important items that should be considered for purchase for this year. 1/31/07 Page 9 of 13 Section 5 - Improvement Projects Tee Rebuilding Project The original construction of the tees on the Ukial~ Municipal Golf Course was not done well as they could have been. Not only are the tees small bm also severely mounded. These tees are hard to maintain and are damaged, unintentionally, almost every time a turn is made with the mower. At least half of all teeing grotmds are in very poor shape. All the tee work (including the irrigation & sodding) should be done as a capital budget project. The Director of Golf, Golf Course Superintendent and Golf Committee should get together and tour each hole and decide the best plan for rebuilding. Following this materials and labor should be cost out and a plan submitted for approval depending upon finances available. The best time to begin this project is in the winter when fill materials can be placed, leveled, and allowed to settle. Areas to begin first: All par 3's. Drainage Projects Installation of underground drainlines in fairways and rough areas has been ongoing and this along with improving bunker drainage should continue. The USGA states that proper drainage is the most important factor in maintaining quality tuffgrass, along with improving the general playability of the course during winter months. All drainage work (fairways & bunkers) should be done as a capital budget project. The Director of Golf, Golf Course Superintendent and Golf Cormnittee should get together and tour each hole, prioritizing concerns from the greatest to the least. After this is carried materials and labor should be cost out and a plan submitted for approval depending upon finances available. Areas to begin first: Identify areas where standing water remains constant throughout winter and affects play the greatest. Irrigation Projects During summer months maintenance should look for dry mad wet spots flu'oughont fairway areas, and adjust sprinkler heads/flows/times accordingly. As water conservation and cost could become an issue over time, examine possibilities of using well on back nine and possible reclaimed water as potential sources. Suggest the City retain an Irrigation Consultant to evaluate the Irrigation system for efficiency and to make recommendations for fi~ture upgrades including the use of the 1/31/07 Page 10 of 13 well on the back nine and the possibility of reclaimed water being used. All areas of the irrigation system should be looked at~ Tree Trimming Identify areas particularly around greens that are overshadowed by tree limbs, branches, leaves and trim so that frost delays are lessened during the winter months. This will also enhance grass growth during the sununer. Durh~g the summer months trees should be trimmed around enclosed tee areas to promote grass growfl~ also. Bridge Repair on holes #10 and #11. Last winter's major storms brought the realization that our bridges on these holes could be closed for long periods of time and large amounts of revenue could be lost if either bridge is taken out of service. Should have someone with expertise in bridge work look at the bridges and give reconunendations on what could be done to stabilize both bridges. Nursery Green Additional turf is sometimes needed for special projects on the golf course. Identify an area that a nursery green could be built and maintained yearly. Make sure and build this nursery green with a double collar. Cart Path Repair Continue to monitor all cart paths and make yearly improvements. Widen when needed. Areas with heavy water run offneed drains along cart paths. 1/31/07 Page 11 of 13 Section 6 - Summary The golf course is for the use and enjoyment oftlie public and all its patrons. In order that the public can be given the best possible golfing experience, the golf course operations and maintenance operations must be rrm as a business with all areas open to scrutiny. The most important fact is that "players are our lifeblood who provide the funds for us to operate and maintain tlfis gulf course." Our number one goal must be to keep our current and future patrons coming back. All phuming and decisions must be tlierefore analyzed for the short term and long term effect they will have to ensure the playing satisfaction of our current customer and our customer twenty years from now. In order to do what we have outlined in this report (which is just a start) and in future reports, we must guarantee the current and long term financial stability of our golf& maintenance operations so that improvement projects can be carried out. Besides the obvious revenue categories where funds for improvement projects are generated, 1. Rates, Fees & Rounds - The Parks, Rec & GolfConwnission is constantly scrutinizing revenues each month through the new data available from the POS system installed h~ March 2006. From this on-going discussions are occurring on how to increase play - expanded use of the course by existing players and attracting new players (marketing to tourists, expanded tournament & league play, new junior programs, etc.). 2. Men's Club - as stipulated in the Men's Club lease with the City, cart barn revenues will be used for golf course improvement projects. There are also fora' other areas that need to be examined for their long term effeel to the bottom line. These are: 3. Water - this is a major cost of operations and as conservation measures grow even a more important consideration is availability and increased cost. There has been talk of using the well on Hole 11 to water the back nine. In addition, the City has looked at reclaimed water being brought to the golf course side of town to water the High Sch6ol, Grove Park, and the golf course itself. 4. Maintenance - One of City Council's statements last year when the subject was raised about the possibility of having Golf Maintenance Operations run by ma outside company was, "we need to keep this option open." This option should be examined if costs can be saved and the customer experience maintained and/or enhanced. 5. Driving Range - with the extra revenues mad different people tiffs entity brings to the golf course - new players, additional revenue per round, late afternoon/evening practice, etthanced F&B, Merchandise sales, etc., this possibility must be explored in depth to see if it is a reality. 6. Restaurant/Bar - continue to explore feasibility for operation of a full service food & beverage facility on-site. 1/31/07 Page 12 of 13 Recommendations: Based on these observations, we would recommend that the following six actions occur this year (some are already on-going). Cont'mued scrutiny of"Rates, Fees & Rounds" by the Parks, Rec & Golf Commission with conunents or suggestions made at the appropriate time to the City and golfing public after sufficient review of the data and financial condition of the golf course. Review of "Golf Course Operations Plan & Improvement Projects Report" with the Men's Club Committee to budget, prioritize, schedule projects for 2007 that they would like to financially support from Cart Barn Revenues and/or physically help with. Review of "Golf Course Operations Plan & Improvement Projects Report" with the City, Golf Superintendent to budget, prioritize, schedule projects in 2007 ensuring coordination with Men's Club actions where necessary. Carry out an in-depth study by a licensed InSgation Consultant to ascertain the current condition of the existhag irrigation system, the remaining lifetime of the system, ways to enbance mad improve the system (complete analysis of pumps, heads, valves, pipe, flows, pressure, coverage, etc.) making sure we are not wasting water in the process and that there are no budgetary surprises down the road. This study will also determine the feasibility of bringing on line the well on Hole 11, the effects on the current system and improvements needed should reclaimed water be used in the future and the expansion of the system, if possible, should any fiu'ther course additions or improvements be made. o Have exploratory talks to examine the feasibility of moving the Maintenance Operations to an outside company and the possible effects to City employees, the condition of the golf course and the bottom line. Develop a "Golf Course Masterplan" by a licensed Golf Course Architect in tandem with input and consultation from the Men's & Women's Clubs, the City, the Parks, Rec & Golf Commission mad the Golf Course Operations & Maintenance staffthat will carry out two functions. First, to do a prioritized hole by hole analysis of course improvements needed to ensure the long term playability of the golf course mad the enhancement of the playing experience for our customers. And secondly, to determine the feasibility and layout of a driving range and the changes/costs needed to accomplish this, if possible, versus the potential revenue and other benefits to be gained. 1/31/07 Page 13 of 13 Golf Rate Comparison AttachmeJ,, # Previous Fees Current Fees 2007 Draft Fees DaJly Fees Weekdays Weekends Weekdays Weekends Weekdays Weekends enior 9 Holes 14 18 Holes 23 27 20 25 23 27 Senior 18 Holes 19 16 19 Junior 18 Holes 11 12 12 I'wil~ht (after 1:00pm) 15 18 16 18 19 21 Super Twilight 13 10 Junior Twilight 9 11 Note: Weekdays are Monday-Thursday Weekends are Friday-Sunday, and Holidays Annual Green Fees Previous Current 2007 Draft Fees Inlimlted Adult 844 1,500 1 ~500 Jnlimited Adult Couples 1,20~ 2,000 2,000 Jnlimited Junior 26.~ 500 500 Inlimited Senior 67~ ~nllmited Senior Couple 1,014 Limited Adult 1,200 1,200 Limited Couple 1,600 1,600 Limited Senior 1,0o0 1,000 Limited Senior Couple 1,500 1,500 Limited Junior 300 3iJu Definitions: Unlimited annuals are valid seven days per week Limited annuals are valid Monday through Thursday and after 1;00pm on weekends and holidays. Private Cart Fee I Previous 12007 Draft Fee $215 I Current $215 I *Subject to some restrictions ~ '*'" 0:::3 ° I I I I I · · · · · · · · · I I I ~ 0 ~ ~ ~ o 0 ~ = ~ 0 ~ ~ 0 0 0 0 ~ ~ · ~ ; ~ ~ ~ ~ ~ 0 0 0 E E= = = -- m ~E m ~ CO oo · · · · · · 000 ~go ooooo 0 E E E E E~ ~'~ '~ ~ E E E E · · · · · · · Attachment 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ADJUSTING JUNIOR FEES FOR THE UKIAH MUNICIPAL GOLF COURSE WHEREAS, the City of Ukiah operates and maintains the Municipal Golf Course for the use of the Ukiah community and general regional area; and WHEREAS, the City Council may from time to time consider fee adjustments in order to continue operation of the Golf Course in a fiscally responsible manner; and WHEREAS, said fee adjustments have been made available for public review. NOW, THEREFORE, BE IT RESOLVED that the following rates are hereby established for the Ukiah Municipal Golf Course: Daily Fees Weekday Fee Category Monday- Thursday Daily Fees Weekend Friday - Sunday, and Holidays A. 18 Holes $23.00 $27.00 Senior $19.00 Junior $12.00 B. Twilight Adult $19.00 $21.00 Twilight Junior $12.00 9 Holes $17.00 $19.00 (Subject to some restrictions prescribed by the Golf Pro) D. Annual Greens Fees* Unlimited Adult $1,500.00 Unlimited AdUlt Couple $2,000.00 Unlimited Junior $ 500.00 Limited Adult $1,200.00 Limited Couple $1,600.00 Limited Senior $1,000.00 Limited Senior Couple $1,500.00 Limited Junior $ 300.00 E. Annual Private Carl Permit Fee* $ 250.00 *Fees are non-transferable and non-refundable. F. Definitions Twili,qht Applied after 12:00 p.m. Pacific Standard Time or 1:00 p.m. Daylight Savings Time Unlimited Annual: Valid seven days per week Limited Annual: Valid Monday through Friday and after 1:00 p.m. on weekends and holidays 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Couple: Senior: Junior: Couple is defined as either a married couple with a legal marriage license or a domestic partnership with a legal declaration in accordance with Family Code Section 297. Senior is 60 years and older. Junior is 17 and under. PASSED AND ADOPTED this 4th day of April, 2007, by the following roll call vote: AYES: NOES: ABSENT: ATTEST: Mari Rodin, Mayor Gail Petersen, City Clerk AGENDA SUMMARY ITEM NO. DATE: April 4,2007 REPORT SUBJECT: STATUS REPORT ON THE ANTON STADIUM RENOVATION PROJECT; REQUEST FOR DETERMINATION OF THE HISTORICAL AND CULTURAL SIGNIFICANCE OF THE GRANDSTAND STRUCTURE; AUTHORIZE PREPARATION OF A CEQA CATEGORICAL EXEMPTION AND ISSUANCE OF A DEMOLITION PERMIT. Following Council's direction at the conclusion of our last status report (Attachment #1 ) on January 3, 2007, staff and the Anton Stakeholders have moved forward with the demolition permit process for the grandstand structure. These subsequent steps were taken: Demolition Permit Review Process: On January 29, 2007, the City Demolition Permit Review Committee met and discussed the proposed demolition of the primary grandstand (bleacher) structure (Attachment #2). The Committee reviewed the submitted material, including the publication entitled "We Built It! - A Thumbnail History of Ukiah's New Recreation Park." Continued on Page 2 RECOMMENDED ACTION: Determine that the demolition of the grandstand structure behind home plate would not result in a substantial adverse impact on the historically/culturally significant Anton Stadium Complex, and direct Staff to prepare a CEQA Categorical Exemption and issue the demolition permit. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine that the demolition of the grandstand structure behind home plate would result in a substantial adverse-impact on the historically/culturally significant Anton Stadium Complex, and direct Staff to prepare an Initial Environmental Study. Citizen Advised: Anton Stadium Stakeholders Group Requested by: N/A Prepared by: Sage Sangiacomo, Community/General Services Director, Charley Stump, Planning Director, and Maya Simerson, Community Services Supervisor, Coordinated with: Candace Horsley, City Manager; Dave Rapport, City Attorney Attachments: 1. Agenda Summary Report 1/3/2007 2. Demolition Permit Review Committee Meeting Agenda 1/29/2007 3. Demolition Permit Review Committee Meeting Minutes 1/29/2007 4. Demolition Permit Review Committee Meeting Agenda 2/21/2007 5. Building Code Section 3016 6. Building Inspector Memo APPROVED:(-~ Candace Horsley, City~lanager At the conclusion of the discussion, the Committee voted unanimously that the entire Anton Stadium Complex had historical/cultural significance and that the grandstands were a component of the complex. At that time, the Committee felt that demolition of the main grandstand structure could impact the historical/cultural significance of the entire complex and that an Initial Environmental Study should be prepared. Please refer to Attachment #3 for complete meeting minutes. On February 21,2007, the Committee met a second time to discuss the issues (Attachment #4 Meeting Agenda). Review of the January 3, 2007 Agenda Summary Report to the City Council revealed a concern about the structural integrity and safety of the grandstand structure, and Staff wanted the Committee to discuss Section 3016(B)(2) (Attachment # 5) of the Ukiah City Code. This Section exempts structures over 50-years old from the Demolition Permit review process if immediate demolition is necessary to protect the public's health or safety. Based on an inspection of the structure by an engineer, architect and the City Building Inspector, the Community Services Department expressed concern that there was an imminent danger to the community. The Committee raised the question of whether the project would still be subject to CEQA if it was exempt from the demolition permit review process because of imminent danger to the community. After discussing the issue further, the Committee recommended that the matter be discussed with the City Attorney. In response to a memorandum from the Community Services Department regarding the health and safety issue, the City Building Inspector took a closer look at the structure and issued a second opinion (Attachment #6) indicating that in his judgment, the immediate demolition of the structure was necessary to protect the health and safety of the public. He found that due to the extent of deterioration and decay in the support structure of the bleachers and the roof decking, that the structure was unsafe and dangerous. He also instructed the Community Services Department to secure the structure to prohibit the public from entering and using the grandstands. Staff met with the City Attorney to discuss the matter. It was determined that based on the findings of the City Building Inspector, the demolition permit could be issued without going through the formal review process for structures over 50-years old. However, the project would still potentially be subject to the requirements of CEQA. CEQA: The first step in reviewing a project for CEQA compliance involves determining if the project is "Exempt" from environmental review. Section 15302 of the CEQA Guidelines exempts projects involving Replacement and Reconstruction of existing structures where the new structure will be located on the same site as the replaced structure and will have substantially the same purpose and capacity. The proposed project meets these criteria. However, Section 15300.2 disallows the use of this exemption if the project could cause a substantial adverse change in the significance oran historical resource. Ifthe demolition of the primary grandstand structure within the Anton Stadium Complex is determined to cause a substantial adverse change in the significance of an historical resource, then the City could not rely on the Categorical Exemption, and then would be required to prepare an Initial Environmental Study which could lead to the preparation of a Negative Declaration or Environmental Impact Report. If it is determined that demolition of the primary grandstand structure within the Anton Stadium Complex would not cause a substantial adverse change in the significance of an historical resource, then the City could rely on the Categorical Exemption and immediately proceed with the project. Considerations that could be used to determine if demolition of the primary grandstand structure within the historic Anton Stadium Complex would not cause a substantial adverse change in the significance of a historical resource include the following: The Anton Stadium Complex (originally named "Recreation Park") has significant historical/cultural importance because it was a new park designed, funded, and built by hundreds of community volunteers over fifty years ago. The Demolition Permit Review Committee unanimously made this finding. The primary grandstand structure behind home plate is a component of the original large Recreation Park Complex that also included the dugouts, infield, outfield, fencing, light poles and fixtures, lower ball field, and parking lot. The Grandstand bleachers were originally composed of the structure behind home plate and bleacher structures along both the first and third base lines. The original bleacher structure along the third base line was replaced with a smaller bleacher structure and "snack shack" after the original construction. Demolition of the primary grandstand structure would not result in the loss of the historically significant large Anton Stadium Complex, nor would it preclude use of the facility. It could be argued that demolishing the primary grandstand structure does not affect the historic significance of the stadium complex because that character arises from the use of the facility and the way it was developed and not the architecture of the grandstands. 6. The primary grandstand structure is not a listed structure in the City of Ukiah Architectural and Historical Resources Inventory Report. The purpose of the demolition is to allow for the replacement of the primary grandstand structure with a safe and accessible new grandstand building that will replicate the original structure, function in the same way, occupy the same space, and would involve significant community volunteerism. It could be argued that the dilapidated grandstand structure detracts from the cultural significance of the stadium complex more than a reconstructed and replicated grandstand would. Council Options: Determine that the demolition of the grandstand structure behind home plate would not result in a substantial adverse impact on historically/culturally significant Anton Stadium Complex, and direct Staff to prepare a CEQA Categorical Exemption and issue the demolition permit; or Determine that the demolition of the grandstand structure behind home plate would result in a substantial adverse impact on historically/culturally significant Anton Stadium Complex, and direct Staff to prepare an Initial Environmental Study. If Council determines Option 1 is appropriate the City and Anton Stakeholders will pursue immediate demolition. If available we will utilize volunteer contract labor, if volunteer labor is not an option we will seek other alternatives. AGENDA SUMMARY A'FrACHMENT ITEM NO. 11b DATE: January 3, 2007 REPORT SUBJECT: STATUS REPORT ON THE ANTON STADIUM RENOVATION PROJECT AND AUTHORIZE STAFF TO PROCEED WITH THE DEMOLITION AND RECONSTRUCTION PROCESS. Spearheaded by Al Anton, Anton Stadium was built in 1952 with the support of local community members and service clubs. Since its construction, the Stadium has been the primary location for outdoor youth sporting and recreational activities in the Ukiah Valley. However, the facility has aged beyond that of routine maintenance and requires significant reconstruction in order to accommodate continued usage. Attachment #1 includes current photographs of the deterioration for review. In 2005 the City of Ukiah was awarded a $500,000 competitive grant from the State of California Department of Parks and Recreation for the renovation of Anton Stadium. As a requirement of the grant, the City must raise at least $214,857 in matching funds. The match can include monetary/material donations and volunteer labor/equipment. The scope of the grant for Anton Stadium includes the following components: · Field Upgrades (dugouts, drainage and batting cage renovations) · Parking Lot Improvements (resurfacing and lining) · Pedestrian & ADA Access (renovate stairs, walkways, ramps & drinking fountains) Grandstand and Baseline Seating Renovation Structural Demolition (old team rooms, restrooms, and storage rooms) · Reconstruction (multipurpose room, restrooms and storage rooms) Continued on Page 2 RECOMMENDED ACTION: Authorize Staff to proceed with the demolition and reconstruction of Anton Stadium. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine additional information is needed prior to proceeding with the demolition and remand to Staff with direction. Citizen Advised: Requested by: Prepared by: Coordinated with: Attachments: Anton Stadium Stakeholders Group N/A Sage Sangiacomo, Community/General Services Director, and Maya Simerson, Community Services Supervisor Cand_ace Horsley, City Manager 1. Current Site Photographs 2. City of Ukiah Building Inspector's Site View Inspection Memo 3. Conceptual Sketch of New Structure & 3-D images APPROVED!... canS'ace Horsley, City ~ager Under the grant, the total project is estimated at $714,857. In addition to the $500,000 grant, the City currently has $75,000 dedicated to the project in the 699 Special Project Reserve Fund and up to $175,000 in per capita park funds dedicated from the County on behalf of Supervisor Wattenburger. The funds from Supervisor Wattenburger were dedicated to the City in an undetermined split for Anton Stadium, Swimming Pool, and Skate Park projects. Because the per capita funds are from the State, they can not be used towards the match, but can be used to cover costs beyond that of the project estimates listed in the competitive grant. The stakeholder group has begun exploring fundraising opportunities needed to meet the match. In February of 2006, Staff held the first Anton Stadium stakeholders meeting. Stakeholders included representatives from the Ukiah Lions Club, Ukiah High Baseball, North Ukiah Little League, South Ukiah Little League, Pony/Colt League, building and design professionals, and other interested members from the community. The stakeholder group continues to meet on a regular basis and provides updates to the community with press releases published in the Ukiah Daily Journal's sports section. At the end of the summer baseball season, City Staff determined that the Stadium seating had deteriorated to a point were it was no longer safe to accommodate spectators and closed the main grandstand area. Since the closure, Staff has utilized the volunteer expertise of building and design professionals in the community and our own City Building Inspector to evaluate the condition of the facility. Informal site inspections were completed by the following professionals: · Mike Johnson, an Architectural Designer with a background in Civil Engineering and Architectural Design from Ruff and Associates · Ron Franz of Franz Engineering · L D Giacomini Construction · David Willoughby, City of Ukiah Building Inspector · Councilmember Crane The unanimous conclusion of these professionals is that the facility has significant structural deterioration and is unsafe in its current condition for continued use. In addition, the structure does not meet current seismic or accessibility requirements. It was also the opinion of these professionals that it would cost much more to fix the current facility than it would be to demolish the majority of the structure and reconstruct the facility from the ground up. The City's Building Inspector's site view inspection memorandum is included as Attachment #2 for review. Staff has made presentations to the Ukiah Lions Club and the Parks, Recreation, and Golf Commission to make th_em aware of the status of the Stadium. The vision of the stakeholders is to recreate the same look, feel and flavor of Anton Stadium as we all know it with every effort to reuse as much of the original materials as feasible and keep a similar footprint to the existing Stadium. Attachment #3 includes images of the draft conceptual generated by Mike Johnson of Ruff and Associates. Given the support of the identified professionals, the Anton Stadium Stakeholders, and the Parks, Recreation, and Golf Commission, Staff would like to move forward with the demolition of the structure since it represents a liability to the City in its current condition. Staff believes there is enough justification to proceed with the demolition process and that contracting for a formal engineering report is an unnecessary expense. Staff is seeking Council approval to proceed with the demolition and reconstruction process. If approved, Staff will begin the demolition permit process and continue to develop the reconstruction plans. Furthermore, if the demolition can be completed before the Spring, there would only be limited interruption to the users of the facility who will be able to continue to access the field and western seating area. Attachment #1 Attachment #2 MEMO TO: SUBJECT: DATE: FROM: Sago Sang~acomo 599 Park Blvd. (Sladit, m) 11-29-06 David Wdloughby -- Building Inspector On November 29. 2006 I pedormed a site view m order to look at the condition of Anion Stadium, The following lists the observations I made: · The structure is pnmanly constructed of wood w~th the primary structural support Oe~ng post and beam construction. · The roof framing is in poor condition Beams are s~te made 12 x 12 glue lams which span approximately 32 feet and deflect approxima',eiy 12 inches in the center Purhns are 6 x 12 DF and span approx~malely 20 feet and deflect approximately 6 inches in the center. The roof deck,ng appears to be 2 x 6 and is weathered and rott~ng The roof eaves are rotted ,, The stadium f},oor decking ~s ~n poor condition 2 x 6 cOnStruction and much of decking ~s rotted The floor framir'~j ~s in poor condition Beams are cracked and rot'ted at vanous locations. · The sicing is board and oat[. Cor~d~t~on ~s fair to poor wdh much of the bottom rotted · There is a cone-eta foundation around the ~yonmetor and under posts. Condition unknown. · The be.qches are weathered, shaky and some are rotted. · The overall des,gn is poor from maintenance and waterproofing sta.ndpomt (many leaks and rot due to water in',rusion) This structure does not meet the current seismic, or accessibility requirements of the Cahfornia b~ildlng code. As a public facility it is required by Federal ADA standards to be accessiole and in my opinion the structure ~s a potenbal liability to the c~ty in its current state. I behave ~t would cost more to ti× t~e pret3iems wrth this t:xJilding than to demolish and t)egin from tho ground up Attachment #3 Aff(:~hmer~,~ .z? ~.~, ,, Demolition Permit Review Committee Meetin January 29, 2007 1:00 PM Ukiah Civic Center 300 Seminary Avenue Ukiah, California Conference Room # 3 CALL TO ORDER ROLL CALL Chairman Pruden, Charley Stump, Tim Eriksen, William French, David Willoughby APPROVAL OF MINUTES: 12/21/06 COMMENTS FROM AUDIENCE ON NON-AGENDA ITEMS The Demolition Permit Review Committee welcomes input from the audience. In order for everyone to be heard, please limit your comments to three (3) minutes per person and not more that ten minutes per subject. No action will be taken on audience comments at this meeting. APPEAL PROCESS There is no formal appeal process of the decisions made by the committee. All decisions are advisory to the City Council. Recommendations made by the Demolition Permit Review Committee are scheduled for a public hearing at the next City Council meeting. DEMOLITION PERMIT REVIEW AND RECOMMENDATIONS A. Demolition of a City of Ukiah owned facility known as Anton Stadium, Parcel # 001-130-28, located at 506 Park Blvd., Ukiah, CA. 95482 7. ADJOURNMENT The City of Ukiah complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. DEMOLITION PERMIT REVIEW COMMITTEE MEETING December 21, 2006 MEMBERS PRESENT Judy Pruden, Chair Charley Stump Tim Eriksen David Willoughby OTHERS PRESENT Jim Brown MEMBERS ABSENT William French STAFF PRESENT Cathy Elawadly, Recording Secretary The regular meeting of the City of Ukiah Demolition Review was called to order by Chair Pruden at 1:05 p.m. in the Conference Room 3, 300 Seminary Avenue, Ukiah, California. Roll was taken with the results listed above. 3. APPROVAL OF MINUTES: N/A Chair Pruden advised the minutes for the March unavailable and possibly not able to be retrieved. 20, 2006 meeting are 4. COMMENTS FROM AUDIENCE ON NON-AGENDA ITEMS There was no one from the audience present. 5. APPEAL PROCESS There is no formal appeal process of decisions made by the Committee. decisions are advisory to the City Council. All 6. DEMOLITION PERMIT REVIEW AND RECOMMENDATION,~ Demolition of a single family dwelling located at 1012 W. Clay Street, Ukiah, CA. Assessor's parcel number #001-214-07. Chair Pruden stated the information contained in the memorandum dated November 9, 2006 from City Building Inspector Willoughby concerning the condition of the residential structure at 1012 W. Clay is useful. Review of the Ukiah Architectural ahd Historical Resources Inventory Report indicates while the structure is listed in the Historical District #2, it is not specifically listed in the inventory of historical places. Chair Pruden briefly commented on the history of the property/former ownership, and referred to her memorandum relevant to the proposed demolition stating research indicates the house has the characteristics of being used as a Demolition Permit Review Page 1 December 21, 2006 CO'UN'}"Y OF MENDOCINO AIR QUALITY MANAGEMENT DISTRICT 306 E. GOBBI ST. UKIAIt, CA 95482 DEMOLrrlON/ASBESTOS RELEASE FORM FORM ADRN-2791 'fO: MENDOCINO COUNTY PLANNING AND BUILDING SERVICES APPLICANT: SITE ADDKF. SS: SINGLE FAMiLY DWELLING Check One: OTHER Remarks: Applicant has ~ubmittcd asbestos notification pursuant to part 61 of Title 40 of the Code of Federal Regulations. Applicant declarcs that notification is not applicable to this demolition project. Applicant has met notification requirements of rite District RECEIVED 2007 MENDOCINO COUNT[r Am QUAI21"/ k~W~ ~'" N~r DIST. s~Represen"-"mtive DEMOLITION PERMIT APPLICATION SURVEY (FOR STRUCTURES OVER 50 YEARS OLD) CITY OF UKIAH CODE SECTION 3016 Property Owner: Property Address: Zoning: Age of structure: U i¥.~ c,,L. Applicant: c (_5i~,-.(' . Assessor's Parcel No.: General Plan Designation: How was age determined? Iq, Is properly located in the City of Ukiah Architectural and Historical Resources Inventory? _. If yes, 1) Is it one of the 200 individually analyzed properties? 2) Is it included in a potential Historic District? 3) Which one? Is it one of the properties not considered worthy of specific analysis? Describe structure's current condition: Describe purpose of demolition: Describe all salvageable archaic materials and any salvage plans: Can the structure be moved? Are there plans to move the structure? Describe any moving plans (location, timing, etc.): ¢~ IA~ General comments regarding historic, architectural, or cultural significance of building/property: Describe any unique features of building or properly: Recommendation for City Council action: Describe the Demolition Permit Review Committee's actions on the application (page 2). III. PROJECT SUMMARY Since its construction in 1952, Anton Stadium has remained the primary location for recreation baseball and football activities in the Ukiah Valley. The facility consists of a full size baseball field, two dugouts, batting cage, grandstands, a concession stand, restrooms, team rooms, and storage space. The City of Ukiah, along with aid from local service clubs and volunteers, has maintained the facility through its tenure. With a good maintenance plan in place, the facility operates year round. However, the facility's structures have aged beyond that of routine maintenance and require significant reconstruction to allow continued usage. The current goal is to renovate the facility to maintain and expand recreation opportunities for the citizens of the Ukiah Valley and surrounding communities. Funds obtained through this grant and supplemented with a local match will be used to reconstruct the grandstands, in addition, renovation will allow for the facility to be updated complying with the Americans with Disability Act requirements and the team rooms would be redesigned to double as a recreation room for leisure classes and day camp activities. PAGE5 MEMO TO: SUBJECT: DATE: FROM: Sage Sangiacomo 599 Park Blvd. (Stadium) 11-29-06 David Willoughby - Building Inspector On November 29, 2006 I performed a site view in order to look at the condition of Anton Stadium. The following lists the observations I made: · The structure is primarily constructed of wood with the primary structural support being post and beam construction. · The roof framing is in poor condition. Beams are site made 12 x 12 glue lams which span approximately 32 feet and deflect approximately 12 inches in the center. Purlins are 6 x 12 DF and span approximately 20 feet and deflect approximately 6 inches in the center. The roof decking appears to be 2 x 6 and is weathered and rotting. The roof eaves are rotted. · The stadium floor decking is in poor condition. 2 x 6 construction and much of decking is rotted. · The floor framing is in poor condition. Beams are cracked and rotted at various locations. · The siding is board and batt. Condition is fair to poor with much of the bottom:rotted. · There is a concrete foundation around the perimeter and under posts. Condition unknown. · The benches are weathered, shaky and some are rotted. · The overall design is poor from maintenance and waterproofing standpoint (many leaks and rot due to water intrusion). This structure does not meet the current seismic, or accessibility requirements of the California building code. As a public facility it is required by Federal ADA standards to be accessible and in my opinion the structure is a potential liability to the city in its current state. I believe it would cost more to fix the problems with this building than to demolish and begin from the ground up. ITEM NO. DATE: January 3, 2006 AGENDA SUMMARY REPORT SUBJECT: STATUS REPORT ON THE ANTON STADIUM RENOVATION PROJECT AND AUTHORIZE STAFF TO PROCEED WITH THE DEMOLITION AND RECONSTRUCTION PROCESS. Spearheaded by Al Anton, Anton Stadium was built in 1952 with the support of local community members and service clubs. Since its construction, the Stadium has been the primary location for outdoor youth sporting and recreational activities in the Ukiah Valley. However, the facility has aged beyond that of routine maintenance and requires significant reconstruction in order to accommodate continued usage. Attachment #1 includes current photographs of the deterioration for review. In 2005 the City of Ukiah was awarded a $500,000 competitive grant from the State of California Department of Parks and Recreation for the renovation of Anton Stadium. As a requirement of the grant, the City must raise at least $214,857 in matching funds. The match can include monetary/material donations and volunteer labor/equipment. The scope of the grant for Anton Stadium includes the following components: Field Upgrades (dugouts, drainage and batting cage renovations) Parking Lot Improvements (resurfacing and lining) Pedestrian & ADA Access (renovate stairs, walkways, ramps & drinking fountains) Grandstand and Baseline Seating Renovation Structural Demolition (old team rooms, restrooms, and storage rooms) Reconstruction (multipurpose room, restrooms and storage rooms) Continued on Page 2 RECOMMENDED ACTION: Authorize Staff to proceed with the demolition and reconstruction of Anton Stadium. ALTERNATIVE COUNCIL POLICY OPTIONS: Determine additional information is needed prior to proceeding with the demolition and remand to Staff with direction. FUNDING: N/A Citizen Advised: Requested by: Prepared by: Coordinated with: Anton Stadium Stakeholders Group N/A Sage Sangiacomo, Community/General Services Director, and Maya Simerson, Community Services Supervisor Candace Horsley, City Manager Attachments: 1. Current Site Photographs 2. City of Ukiah Building Inspector's Site View Inspection Memo 3. Conceptual Sketch of New Structure & 3-D images APPROVED: Candace Horsley, City Manager Under the grant, the total project is estimated at $714,857. In addition to the $500,000 grant, the City currently has $75,000 dedicated to the project in the 699 Special Project Reserve Fund and up to $175,000 in per capita park funds dedicated from the County on behalf of Supervisor Wattenburger. The funds from Supervisor Wattenburger were dedicated to the City in an undetermined split for Anton Stadium, Swimming Pool, and Skate Park projects. Because the per capita funds are from the State, they can not be used towards the match, but can be used to cover costs beyond that of the project estimates. The stakeholder group has begun exploring fundraising opportunities needed to meet the match. In February of 2006, Staff held the first Anton Stadium stakeholders meeting. Stakeholders include representatives from the Ukiah Lions Club, Ukiah High Baseball, North Ukiah Little League, South Ukiah Little League, Pony/Colt, building and design professionals, and other interested members from the community. The stakeholder group continues to meet on a regular basis and provides updates to the community with press releases published in the Ukiah Daily Journal's sports section. At the end of the summer baseball season, City Staff determined that the Stadium seating had deteriorated to a point were it was no longer safe to accommodate spectators and closed the main grandstand area. Since the closure, Staff has utilized the volunteer expertise of building and design professionals in the community and our own City Building Inspector to evaluate the condition of the facility. Informal site inspections were completed by the following professionals: · Mike Johnson, an Architectural Designer with a background in Civil Engineering and Architectural Design from Ruff and Associates · Ron Franzof Franz Engineering · L D Giacomini Construction · David Willoughby, City of Ukiah Building Inspector · Councilmember Crane The unanimous conclusion of these professionals is that the facility has significant structural deterioration and is unsafe in its current condition for continued use. In addition, the structure does not meet current seismic or accessibility requirements. It was also the informal opinion of these professionals that it would cost much more to fix the current facility than it would be to demolish the majority of the structure and reconstruct the facility from the ground up. The City's Building Inspector's site view inspection memorandum is included as Attachment #2 for review. Staff has made presentations to the Ukiah Lions Club and the Parks, Recreation, and Golf Commission to make them aware of the status of the Stadium. The vision of the stakeholders is to recreat~ the same look, feel and flavor of Anton Stadium as we all know it with every effort to reuse as much of the original materials as feasible and keep a similar footprint to the existing Stadium. Attachment #3 includes images of the draft conceptual generated by Mike Johnson of Ruff and Associates. Staff has not had any resistance to the recommended demolition and would like to move forward at this time since the structure represents a liability to the City in its current condition. If the demolition can be completed before the Spring, there would only be limited interruption to the users of the facility who will be able to continue to access the field and western seating area. Given the expertise of the professional volunteers and the City Building Inspector, Staff believes there is enough justification to proceed with the demolition process and that contracting for a formal engineering report is an unnecessary expense. Staff is seeking Council approval to proceed with the demolition and reconstruction process. If approved, Staff will begin the demolition permit process and continue to develop a the reconstruction plans. Attachment #1 Attachment #2 M E M 0 TO: SUBJECT: DATE: FROM: On November 29, 2006 I pedormod L] silo view ~n order ~o If)ok ~t~ tP~O made: · The s:rL, cture ~s prlmar y constructo~ uf wood wtf~ tho pr re;try 12 glee lams which span 8ppro:Hma~eiy 32 fJ:~[ ~tnd deflect ~nches~nthecenter The roofdeckng DCStS. Cor~21t o~ The overail ces gn is ~o' from ma~n~ensnce 8nc ~landpc~n; (many leaks and rot cue to requ.em~;nls ~ff h'it-~ C~lJ Iorma bd4dm~ coce. As a pL..hr c faclhty it is reqmred by _Fndr:r,'d ADA sMndards to be access~ure and in my Attachment DEMOLITION PERMIT REVIEW COMMITTEE MEETING January 29, 2007 MEMBERS PRESENT Judy Pruden, Chair Charley Stump Tim Eriksen David Willoughby OTHERS PRESENT None MEMBERS ABSENT William French STAFF PRESENT Sage Sangiacomo, Director of Community Services Cathy Elawadly, Recording Secretary The regular meeting of the City of Ukiah Demolition Review was called to order by Chair Pruden at 1:06 p.m. in the Conference Room 3, 300 Seminary Avenue, Ukiah, California. Roll was taken with the results listed above. 3. APPROVAL OF MINUTES: December 21, 2006 ON A MOTION by Member Stump, seconded by Chair Pruden, it was carried by an all AYE voice vote of the members present to approve the December 21, 2006 minutes, as submitted. Abstain: Member French 4. COMMENTS FROM AUDIENCE ON NON-AGENDA ITEMS There was no one from the audience present. 5. APPEAL PROCESS There is no formal appeal process of decisions made by the Committee. decisions are advisory to the City Council. 6. DEMOLITION PERMIT REVIEW AND RECOMMENDATIONS All Demolition of a City of Ukiah owned facility known as Anton Stadium, Parcel #001-130-28, located at 506 Park Blvd., Ukiah, CA 95482 Chair Pruden typically composes a memorandum explaining and documenting the historical aspects of a structure proposed for demolition. She did not prepare a memorandum in this case, and referred to a document that provides a history complete with photographs of how Anton Stadium was built. Demolition Permit Review Page 1 January 29, 2007 Chair Pruden stated the only structure being considered for demolition on the property is the grandstands facility. During the process of reviewing the proposed demolition permit, it became evident that Anton Stadium is a significant historical cultural resource for the City. The primary issue concerning this permit is compliance with CEQA regulations. She advised that CEQA does not recognize "recordation" as a mitigation measure to preserve the history of a building and this issue has been tested in California courts. Specifically, "recordation" represents display of photographs, plaques, narration of history, and other relative mechanisms used to divulge a story about a building that was demolished for historical preservation purposes. The intent is to successfully make the findings necessary to comply with CEQA provisions that demolition is the most feasible alternative for the stadium grandstands viewed as a significant historical cultural resource that is in very poor condition making it a safety hazard where the salvaging of materials highly unlikely. City Building Inspector Willoughby reviewed the condition of the stadium and listed his observations in a memorandum to Sage Sangiacomo, dated November 29, 2006. Sage Sangiacomo commented on Anton Stadium as follows: > Anton Stadium was built in 1952 with support of local community members and service clubs. > The stadium has been the primary location for outdoor youth sport and recreational activities in the Ukiah Valley for many years. > The facility has aged beyond that of routine maintenance and requires significant reconstruction in order to accommodate continued usage. > In 2005, the City was awarded a $500,000 competitive grant from the State of California Department of Parks and Recreation for the renovation of Anton Stadium. As a grant requirement, the City must raise approximately $215,000 in matching funds and this match can include monetary/material donations and volunteer labor/equipment. The scope for grant includes field upgrades, parking lot improvements, pedestrian and ADA access, grandstand and baseline seating renovation, structural demolition to the old team rooms, restrooms, and storage rooms and reconstruction of the multipurpose'room, restrooms and storage rooms. > The City has$75,000 dedicated to the project in the 699 Special Project Reserve Fund and UP to $175,000 in per capita park funds dedicated from the County. The funds from the County would be split for improvements/renovations to Anton Stadium, the Municipal Swimming Pool, and Skateboard Park. While the per capita funds from the State cannot be used towards the match, they can be used to cover costs beyond that of the project estimates where the stakeholders group has begun exploring fundraising opportunities needed to meet the match. Demolition Permit Review Page 2 January 29, 2007 Staff has determined that the Stadium seating has deteriorated where it is no longer safe and closed the main grandstand area. Volunteer evaluations have been conducted by local qualified civil engineers, architects, City Building Inspector, and developers and it was the unanimous conclusions of these professionals the facility has significant structural deterioration and is unsafe in its current condition. Also, the grandstand structure does not meet current seismic or accessibility requirements. Based on professional observations and input, staff determined there is sufficient justification to proceed with the demolition and that contracting for a formal engineering report is an unnecessary expense. It was also the opinion of the professionals that it would cost much more to fix the current facility than it would be to demolish the majority of the structure and reconstruct the facility from the ground up. Renovation of Anton Stadium is essentially a community project. Sage Sangiacomo further commented the intent is also to update the facility to meet what is applicable to today's standards for a fully functioning stadium. Eliminating the four sets of restrooms underneath the stadium would allow for a well-design multipurpose room that will have the necessary restroom accommodations and still provide for sufficient space to conduct team meetings and other applicable activities. The proposed redesign would feature the same lean-to roof and structural bleacher-style seating. The entry points would be the same, including retention of the center entryway underneath the grandstands that leads to the grandstands in keeping with the original design. Entering the stadium from the sides of the facility to go the grandstands should be reserved for emergency purposes rather than used as a primary access. The rear portion of the stadium/grandstands can be aesthetically improved by redesigning the archway, as well as the application of other architectural features to maintain the original stadium characteristics relative to the era in which it was constructed. The objective is to renovate the stadium so that it would be fully functioning now and into the future, as well as bring the stadium to current building standards. Member French addressed the facility as a historical building, and inquired whether the intent is to completely tear down the building and use all new materials or whether any of the existing materials would remain for reuse. Sage Sangiacomo stated professionals and volunteers possessing the technical expertise have looked at the stadium in this regard and regrettably it was determined there is very little of the actual stadium that is reusable, such as the beam structure. The stakeholders group support renovation/construction of the stadium. Also, the foundation for the grandstands is not sound and work will have to be done to correct this problem. Demolition Permit Review Page 3 January 29, 2007 Member French has observed the roof and observed that perhaps more than 50 percent must be replaced. He expressed concern regarding the structure underneath the seating area and whether this structure could be re-created or redesigned. He supports maintaining as much of the original wood as possible rather than making it a steel structure because this is the only structure of its kind built of wood that he is aware of in Mendocino County and therefore, has historical value to the entire County. He supports reuse of as many beams underneath the structure as possible. From a historic standpoint, the project would be considered "reconstruction" by using the same design and some of the original materials, which hopefully would comply with CEQA requirements in the event reconstruction is allowed under certain circumstances. Sage Sangiacomo stated it became apparent the process of reviewing the condition of the stadium grandstands that it is more important to keep the overall appearance and feel of the building in terms of feasibility by rebuilding the structure as opposed to reuse of the existing materials. The beams could not be rebuilt to engineering standards. Member French stated the use of materials other than wood may be questionable relative to preservation of the actual historical qualities of the building. Member Eriksen does not agree that structural components are an issue in keeping with the historical aspects so much as it is the appearance. Member French stated the historical aspects do include the materials, but the primary focus is the structure itself. ' Sage Sangiacomo stated if the ability exists to construct the stadium by today's building code standards and materials, it is likely different choices would have been made in the selection of materials used. The grandstand area despite having a roof is subject to extreme weather conditions and has contributed to the degrading of this structure. The bleacher areas have been renovated several times during the course of time. Member French stated while the design and basic structure has withstood time, the materials have not. The question is how to substantiate demolition of a building having historic significance when the intent is to completely rebuild the structure to the wayit was initially. Member French stated rebuilding is technically creating a new structure. Member Stump stated that the structure will eventually have to come down because of its deteriorated and unsafe condition unless it is shutdown permanently and the community would no longer have the opportunity to enjoy it. Demolition Permit Review Page 4 January 29, 2007 Sage Sangiacomo stated if the grandstands are not rebuilt, people would no longer have access to the bleachers and facilities underneath because the structure would be closed to the public due to health and safety issues. In the event, the facility becomes vacant and unused and allowed to further deteriorate, the once greatly appreciated community resource is lost. Chair Pruden commented on the issue of CEQA compliance relative to historical preservation of structures, and stated according to CEQA, a building cannot be demolished if there is a "feasible alternative." According to her observations, the building is not salvageable for rehabilitation/remodel/restoration so there is no argument that the building is usable . However, if demolition of a significant historical resource is approved, certain criteria under CEQA provisions must be met in order to comply with the law. In her opinion, she questions whether the building can feasibility be reconstructed. The issue is to find a way to comply with the law recognizing the fact that the structure is a significant historical resource. Demolition is not a feasible, alternative. She questioned how to successfully mitigate for this historical resource. Member Stump noted the UMC states if the community finds that the building has some sort of historical cultural significance, denial of the demolition permit must be recommended to the City Council. The UMC further states that if the Council hears the matter and agrees, then there a waiting period that must be pursued where a viable market to purchase the building must be allowed to be found. The intent is to allow sufficient time to see if an interested organization, group or person desires to purchase the building and preserve it. The former Catholic Church is an example of this process, which is not the case in this instance. He supports that the building be torn down and rebuilt as it was initially so the stadium can again function for the good of the community while maintaining its original feel and appearance. He recommended this matter be reviewed by City Council, since the UMC does not adequately address the situation pertinent to the Anton Stadium grandstands. Chair Pruden stated project alternatives need to be considered in this case and whether they comply with CEAQ provisions for the reconstruction of the facility. If the building is reconstructed to the original intent of the stadium, it may be acceptable with CEQA. Member French inquired whether the reconstruction pertains to the exterior look of the original structure or is it the structure itself that would be recreated. He supports that the structure itself would be recreated. Chair Pruden stated the design of the stadium is reflective of the 1950s, especially the design of the roof structure and this characteristic should not be lost during reconstruction. Demolition Permit Review Page 5 January 29, 2007 Member French inquired whether it would be possible as a way to mitigate that the salvage materials are reused in the reconstruction in some capacity. Chair Pruden stated the ability to reuse any structural materials could likely be used for signs, decorative boards and/or in other decorative capacities. The existing structural materials would be unacceptable for reuse in the structure itself because such materials are in poor condition and unsafe. A general discussion followed what materials may be salvageable for reuse in some capacity. Sage Sangiacomo stated the intent is to salvage whatever component can be reused in some form. A general discussion followed regarding the concept of "feasible alternatives" and noted there are really no such options available for Anton Stadium. Member French requested clarification whether the historical and community resource pertains only to the grandstands or the stadium itself. Chair Pruden stated the grandstands is one component of the stadium complex. The grandstands represent the "built structure" that requires reconstruction. She recommends staff discuss the implications of how to satisfy CEQA. Member Stump addressed the matter of compliance with CEQA and commented on the process that may have to be followed as a result. An Initial Study may likely have to be conducted for the structure where potential significant impacts would be identified and successfully mitigated. City Council would review this document and determine whether the proposed mitigation measures are appropriate~ provided successful mitigation measures can be found, and adopt the corresponding Mitigated Negative Declaration. If the Mitigated Negative Declaration is not adopted, Council may require an EIR prior to determining whether a Demolition Permit can be issued. Member French inquired how much of the building must remain standing in order to rebuild it to its historical significance. Chair Pruden replied, "75 percent." However, this percentage does not apply because the existing materials cannot be salvaged to the degree necessary to rebuild using the same materials. Member Eriksen stated compliance with CEQA may be related to the extent of the project, since the demolition and rebuild is intended for the grandstands and facilities underneath as opposed to the entire complex. Demolition Permit Review Page 6 January 29, 2007 Chair Pruden commented the other alternative would be to find a funding mechanism that would allow for a feasible alternative as required under CEQA. Member French pointed out that the staff report for the proposed demolition, including media reports address the stadium grandstands and not the stadium itself. Sage Sangiacomo disagreed with the above-referenced statement and advised the grant application to the State concerned the entire complex. Member French inquired whether the staff report document should be amended. Member Stump stated that all future staff reports would differentiate between stadium grandstands and the stadium complex. Chair Pruden stated the stadium grandstands are a significant cultural resource. On a Motion by Member French, seconded by Member Stump, it was carried by an all AYE voice vote of the members present to find that Anton Stadium in its entirety as a significant historical and cultural resource to the City of Ukiah. It was further noted that the entire complex has historical and cultural significance and that one of the major components of the stadium complex is the stadium grandstands. The grandstands is the "built" structure of all the complex components and the structure being analyzed for demolition. Chair Pruden stated the historical significance will be impacted. Member Stump stated this is the reason why an Initial Study must likely be conducted. Member French commented even though the Committee recognizes there is no alternative other than demolishing the structure, under CEQA review the structure must be found to have historical significance where City Council should make the final decision. Chair Pruden stated processes discussed completed. demolition cannot be recommended until the other above pertinent to finding a feasible alternative is Member Stump commented the question that must be determined is whether an Initial Study is necessary relative to the alteration of the stadium grandstands, in the event such a study is conducted and any impacts to the historical significance are found and successfully mitigated, then the Committee can make a formal recommendation to the City Council for adoption of a Mitigated Negative Declaration and issuance of a Demolition Permit. Demolition Permit Review Page 7 January 29, 2007 Chair Pruden commented the objective of this Committee was to find that the Anton Stadium grandstands have historical significance and this has been accomplished. In doing so, the next step has been triggered, which is the Initial Study. The Initial Study will reveal whether there is a way to successfully mitigate any impacts to the historical significance of the stadium. She further stated it is not likely that demolition can be mitigated, therefore, City Council may have to make overriding considerations. 7. ADJOURNMENT There being no further business the meeting adjourned at 3:40 p.m. Judy Pruden, Chair Cathy Elawadly, Recording Secretary Demolition Permit Review Page 8 January 29, 2007 Attachment # L~ DEMOLITION PERMIT REVIEW COMMITTEE MEETING February 21, 2007 MEMBERS PRESENT Judy Pruden, Chair Charley Stump David Willoughby William French OTHERS PRESENT Tim Eriksen MEMBERS ABSENT None STAFF PRESENT Sage Sangiacomo, Director of Community Services Maya Simerson, Community Service Supervisor Cathy Elawadly, Recording Secretary The regular meeting of the City of Ukiah Demolition Review was called to order by Chair Pruden at 1:06 p.m. in the Conference Room 1,300 Seminary Avenue, Ukiah, California. Roll was taken with the results listed above. 3. APPROVAL OF MINUTES: January 29, 2007 ON A MOTION by Member French, seconded by Member Stump, it was carried by an all AYE voice vote of the members present to approve the December 21, 2006 minutes, as submitted. 4. COMMENTS FROM AUDIENCE ON NON-AGENDAITEMS There was no one from the audience present. 5. APPEAL PROCESS There is no formal appeal process of decisions made by the Committee. decisions are advisory to the City Council. All 6. DEMOLITION PERMIT REVIEW AND RECOMMENDATIONS Demolition of a City of Ukiah owned facility known as Anton Stadium, Parcel #001-130-28, located at 506 Park Blvd., Ukiah, CA 95482 . Continuinq discussion and possible formation of alternative approaches and/or recommendations. Member Stump commented on the last meeting regarding the proposed demolition of Anton Stadium where the Committee discussed the possibility of having to prepare an Initial Study to examine the potential effects of demolition and the impact it would have on the stadium as a significant historical and Demolition Permit Review Page 1 Eebruary 21, 2007 cultural resource to the community. He recommends the City Attorney review the information regarding compliance with CEQA provisions while taking into consideration the condition of the stadium as a health and safety issue. The stadium structure should likely be demolished since it has significantly deteriorated and deemed unsafe. The contention is if a building is presented as a health and safety hazard issue, it should come down where discretionary review is not necessary. However, if a CEQA document is prepared and the corresponding analysis finds that the potential significant impacts cannot be successfully mitigated, then a focused EIR would be the next step. The preparation of an EIR can be time-consuming especially if the process involves findings of "overriding consideration" when, in fact, the primary focus should be how to protect the public from a potentially dangerous structure. Being able to appropriately maintain and meet the timeframe for the grant that is funding the reconstruction of the stadium is also a primary concern. Member French commented the National Trust would be a helpful agency that could professionally document the historical significance and existing condition of the stadium relative to the issue of compliance with the CEQA provisions. Member Stump commented that locally the ability exists to determine the historical significance of the entire stadium complex and the committee did this on January 29, 2007. Chair Pruden commented the State Historical Office of Preservation (SHPO) would be used to make such a determination rather than the National Trust. It was noted that the stadium is not listed in the State Inventory of Historical structures or in the City's historical inventory. Chair Pruden stated just because the stadium is not on the State historical inventory list, does not preclude it from CEQA review and compliance with State law, thereof. Member Stump stated SHPO could recommend the decision concerning the historical value of the stadium be made by the community with documented information from qualified professional engineers, contractors, architects, and other relevant professionals. Community Service Director Sangiacomo commented as follows: > Local volunteer professionals have provided reasonable evaluations to suggest that the stadium structure needs to come down, which is the only real option available. > City Council was of the opinion that the information from local qualified experts concerning the evaluation of the structure was sufficient and subsequently directed staff to proceed with the demolition process. Demolition Permit Review Page 2 February 21, 2007 While he acknowledges the issue from a historical resource perspective, it is now apparent that the entire structure must be taken down. He noted there are time constraints associated with the reconstruction grants relative to the organization process. He added that grant status reports must be consistently updated. The public is no longer allowed in the stadium structure because it is unsafe and a hazard for liability purposes and no use will be authorized until the structure is rebuilt to current building standards, including making it ADA accessible. It is the intent of the stadium stakeholders and community to reconstruct the structure with the original architectural features and characteristics of the 1950s when it was originally built. The existing materials have deteriorated to the degree that they are no longer salvageable. Also, the foundation is no longer structurally sound. Renovation of Anton Stadium is essentially a community effort as it was when it was initially built. The grants have specific regulations regarding the reconstruction, and making the facility ADA compliant is a primary grant requirement. Member French supports salvaging some of the materials for reuse in some capacity, if possible. Community Services Director Sangiacomo commented the objective is to use modern building materials because it is a structure that is fully exposed to the elements and must be reconstructed with quality materials because past practice with regarding to maintaining the structure indicates there are limited resources available to routinely repair and upgrade the facility. The goal of the project is to fully reconstruct the stadium and restore the field and dugouts to their original look. Chair Pruden acknowledges that the stadium must be fully reconstructed, and noted the problem is how to legally address through CEQA that the demolition is a substantial adverse change. A significant historical resource that is being removed and the corresponding adverse change that comes with the demolition must comply with CEQA regulations, regardless. She has no knowledge how to get around doing a focused EIR. Member Stump advised that all buildings 50 years old or older proposed for demolition must go through the demolition permit review process unless specifically exempted by the UMC. The City Attorney should likely make a legal determination in this case when the UMC states that a building over 50 years old is exempt from this process if it is declared unsafe and a specific threat to the health and safety of persons. Chair Pruden stated California law states with regard to privately-owned buildings having been damaged in a natural disaster and having historical significance cannot be removed unless such a building presents an eminent threat to an Demolition Permit Review Page 3 February 21, 2007 adjacent property. This is not the case concerning Anton Stadium. However, she looks at the stadium the same as if it were private property and the corresponding law that protects it as a valuable historical resource. Community Services Director Sangiacomo stated the intent is to allow Anton Stadium to continue being a historical and cultural resource for the community. Member Stump stated according to the UMC, the grandstands are exempt from Demolition Permit Review if is determined the stadium is a health and safety problem. Chair Pruden questions whether the UMC fully complies with CEQA in this regard because the argument whether a building is a health and safety problem is often made by developers favoring demolition in order to construct a new building. She further questioned the contents relative to a focused EIR for the stadium. Member Stump recommends consulting with the City Attorney about the UMC and whether the grandstand building is exempt from the Demolition Permit Review process and CEQA review if it has been determined it is a health and safety issue. A general discussion followed regarding the condition of the stadium facility, the foundation, and supporting beams in terms of whether any of the materials could be potentially reused. Member French suggested hiring an independent consultant to evaluate the building and make a report. Chair Pruden emphasized the issue is the potential demolition of a significant historical resource and compliance with CEQA provisions. Member French stated, in his opinion, Anton Stadium can be seen as an eminent threat if the building is deemed unsafe for a person walking passed in close proximity to the structure. Community Services Director Sangiacomo questions whether the facility can adequately be secured from the public even with the construction of a fence to keep people out. it was noted California does not recognize financial hardship on the part of a property owner as having an adverse affect relative to CEQA provisions when a building is condemned or deemed unsafe. Chair Pruden commented very careful findings must be made to support exemption of the CEQA review process. Demolition Permit Review Page 4 February 21, 2007 It was the consensus of the Committee to consult the City Attorney regarding the issues raised about the demolition of a significant historical and cultural resource to the community, and public health and safety issues. 7. ADJOURNMENT There being no further business the meeting adjourned at 2:14 p.m. Judy Pruden, Chair Cathy Elawadly, Recording Secretary Demolition Permit Review Page 5 February 21, 2007 Attachment 3016: MODIFICATIONS TO THE UNIFORM BUILDING CODE: The section of the Uniform Building Code, relating to applications for building permits is modified to require in an application to demolish a building, the date when the building was first constructed, if known. The section of the Uniform Building Code, relating to permit issuance, is modified to require that, as to buildings constructed fifty (50) years or more prior to the date of application, the Director of Planning or his/her designee shall determine whether: 1. The building is an accessory building such as, but not limited to, a garage, storage shed, or carport, whether attached or detached to a main building; except that certain accessory buildings, such as carriage houses, which are presumed to have kistoric or architectural significance shall be subject to further review as provided in subsection D of this Section, unless the building is subject to demolition under subsection B2 of this Section. 2. Immediate demolition of the building is necessary to protect the public health or safety and the failure to immediately demolish the building would constitute a serious threat to the public health or safety. If subsection B1 or B2 of this Section applies to the building, no further review shall be required under this Section and the permit shall be issued in accordance with the provisions of the Uniform Building Code. If the Planning Director finds that neither of the exceptions in subsection B 1 or B2 of this Section applies to the building, ~he demolition permit shall be subject to further review in accordance with this Section. The Planning Director shall transmit the proposal to the Demolition Permit Review Committee, or other official reviewing body established by the City Council, for review, comment, and a recommendation to the City Council. Once the Demolition Permit Review Conmfittee formulates a recommendation concerning the diSPosition of the proposed demolition permit, the Planning Director shall schedule and duly notice the matter for a public heating and decision by the City Council. The public noticing shall indicate the day, time, place, and purpose of the public hearing, and how additional information about the subject matter can be obtained. The public noticing shall be accomplished in the following manner: 1. Publication in a newspaper of general circulation in the City at least ten (10) days prior to the hearing. 2. Mailing or delivery at least ten (10) days prior to the hearing to the owner(s) of the subject property, or his/her agent, and to the project applicant, if the applicant is not the owner. 3. First class mail notice to all owners (as shown on the latest available Mendocino County Tax Assessor's equalized assessment roll) of property within three hundred feet (300') of the subject property. E. In reviewing proposed demolition permits, and formulating recormnendations to the City Council, the Demolition Permit Review Committee shall consider any information provided during the meeting, and shall use the following criteria. The structure: 1. Has a special or particular quality such as oldest, best example, largest, or last surviving example of its kind; or 2. Exemplifies or reflects special elements of the City's cultural, social, economic, political, aesthetic, or architectural history; or 3. Is strongly identified with persons or events significant in local, State, or national history. If the Demolition Permit Review Committee finds that any of the criteria listed in subsection E of this Section apply to the building proposed for demolition, it shall recommend denial of the demolition permit to the City. 1. The City Council shall conduct a public hearing pursuant to subsection D of this Section to consider the recormnendation of the Demolition Permit Review Committee, and to determine if any of the criteria listed in subsection E of this Section apply to the building proposed for demolition. If the City Council determines that any one of the criteria apply, it shall make a corresponding finding to that effect. 2. At the hearing, the applicant shall have the opportunity to present evidence that a viable market does not exist for the building, taking into account the condition of the building, the probable cost to put the building into marketable condition, and the uses of the property allowed under existing or probable future zoning regulations. The City Council shall consider such evidence offered by the applicant and any other information presented at the meeting by any interested party or by staff, to determine whether or not a viable market exists. "Viable market" means that it is reasonably likely that the building could be sold within a commercially reasonable period of time for more than the seller would be required to invest in the purchase of the property and preparing the property for sale, or that the property could produce a reasonable return on the amount of money it would take to purchase the property and prepare the building for income producing purposes. "Reasonable return" means the average rate of return on real estate investments in the Ukiah Valley. 3. If the City Council determines that a viable market exists: a. It shall so notify the Building Official who shall not issue the demolition permit. The City Council shall determine whether a viable market exists based on substantial evidence presented at the hearing, or, it may assume that a viable market exists, if the applicant fails to present sulSstantial evidence that a viable market does not exist; b. Not more than once within any twelve (12) month period, the applicant may submit a new application for a demolition permit and the City Council may reconsider whether a viable market exists: (1) Upon a showing by the applicant that market conditions have changed; or (2) Based upon new information that in the exercise of reasonable diligence the applicant could not have produced at the first hearing. 4. If the City Council determines, based on substantial evidence, that a viable market does not exist, the issuance of the demolition permit shall be stayed for a period of ninety (90) days. a. During that ninety (90) day period, the City shall do the following: (1) Determine whether other alternatives to demolition exist, which are acceptable to the applicant, that would preserve the historic, architectural or cultural significance of the building; (2) Determine whether funds are available from any private source for the acquisition and preservation of the building through a negotiated purchase on terms acceptable to the applicant; or (3) If sufficient funds are available from any private source and a negotiated purchase is not possible, determine whether to acquire the building through eminent domain. b. If within the ninety (90) days, the City does not reach agreement with the applicant or commence acquisition of the building, the Building Official may issue the permit in accordance with the provisions of the Uniform Building Code. c. If within the ninety (90) day period, the City either: 1) reaches agreement with the applicant or 2) commences acquisition of the building, the Building Official shall not issue the demolition permit. d. However, the Building Official shall continue to process the application for a demolition permit in accordance with the Uniform Building Code, if the City and the applicant terminate their agreement or the City fails to diligently pursue or abandons acquisition of the building. e. The City Manager or his/her designee shall inform the Building Official whenever the City and the applicant terminate their agreement or the City fails to diligently pursue or abandons acquisition of the building. f. If the Building Official has issued a demolition permit under this subsection and the permittee applies to extend the permit an additional one hundred eighty (180) days in accordance with the applicable provisions of the Uniform Building Code then in effect, the Building Official shall refer the application to the City Manager for an initial determination as t~ whether market conditions have changed. The City Manager shall make the determination within ten (10) days after the application is referred by the Building Official. If the City Manager determines that market conditions may have changed and that a viable market may exist for the property, he or she shall schedule the matter for a hearing before the City Council to be noticed and conducted in accordance with subsections D and G of this Section. However, at the hearing the City shall have the burden of proving by a preponderance of the evidence that market conditions have changed and a viable market exists. If the City Manager determines that market conditions have not changed, he or she shall so notify the Building Official and the applicant. Upon such notification, the Building Official shall further process the application to extend the term of the demolition permit in accordance with the requirements of the Uniform Building Code then in effect. If the City Council conducts a hearing upon referral by the City Manager, the City Clerk shall provide written notification to the Building Official and the applicant of the City Council decision. If the City Council decides that a viable market exists, the Building Official shall not issue the permit, but the provisions of subsection G3b of this Section shall apply. If the City Council decides that a viable market does not exist, the Building Official immediately shall proceed to further process the application in accordance with the applicable provisions of the Uniform Building Code then in effect. 5. "Diligently pursue acquisition" means taking all steps within the time required by law to acquire the building by eminent domain. 6. References to "applicant" herein shall include the building owner. The Planning Director shall provide a written notice of the City Council determination to the applicant. The written notification shall be mailed or hand delivered within five (5) days from the date of the City Council's decision. The notice shall include the finding(s) and decision made by the City Council and a copy of this Section. The applicant for a demolition permit for a building determined to have historic, architectural or cultural significance shall salvage the building materials for reuse to the maximum extent feasible, and shall ensure that upon completion of the demolition, the site is left in a safe, presentable, and clutter free condition. J. Reconsideration Of Decisions: 1. Grounds For Reconsideration: The City Council may reconsider a decision under this Section within sixty (60) calendar days from the date the decision was made, if information that may have materially affected the decision was: a) misrepresented by the applicant, or b) not disclosed by the applicant, if the applicant knew or should have known that the information may have affected the City Council decision. "Information" as used herein means matters of fact or law. A decision may not be reconsidered, if all three (3) of the following have occurred. The demolition permit: a) has been issued, b) did not at the time it was issued violate any provision of the Uniform Building Code, as adopted by the City, or any other City ordinance or State or Federal la,v, and c) the permittee has commenced demolition in good faith reliance on the permit. 2. Procedure On Reconsideration: Reconsideration of a decision under this Section may be placed on the agenda for a regular City Council meeting by any member of the City Council who voted in favor of the original decision. Notice of any meeting where reconsideration is on the agenda shall be provided in accordance with subsection D of this Section. If already issued, the permit shall be suspended from the date that an eligible City Council member requests that the matter be placed on the agenda and until the City Council makes a final decision upon reconsideration. The Building Official shall notify the applicant in writing of the permit suspension. At the meeting, the City Council shall determine, based on evidence provided to the City prior to or during the meeting, whether reconsideration is permitted under subsection J1 of this Section. Any motion to reconsider the decision shall contain findings supported by substantial evidence. If upon reconsideration the City Council makes a different decision, the City Clerk shall provide notice of that decision to the Building Official and the applicant/permittee within five (5) working days after the decision is made. If, upon reconsideration, the City Council determines that a building has historic, architectural, or cultural significance, and the Building Official has issued a demolition permit based on the previous decision, the Building Official shall revoke the permit. If the previously issued permit has expired, the Building Official shall deny an application for a new permit, unless the permit is issued in accordance with subsection G4 of this Section. (Ord. 838, §1, adopted 1984; Ord. 927, §1, adopted t992; Ord. 1014, §1, adopted 1998) Attachment MEMO of TO: Sage Sangiacomo SUBJECT: Anton Stadium DATE: 3-9-07 FROM: David Willoughby I understand that the portion of Anton Stadium consisting of the covered wood bleachers has been closed and secured from entry due to the dilapidated condition of the structure; however, people are still getting into the building. I have looked at the structure again and have decided that due to the extent of the deterioration and decay in the support structure of the bleachers and the roof decking, that this structure is unsafe and dangerous to the life, health, property and safety of the public or occupants of the building. In my judgment immediate demolition of the building is necessary to protect the public health and safety and the failure to immediately demolish the building would constitute a serious threat to the public health and safety. GLll0I 20 CITY OF UKIAH FINANCE DEPT. General Ledger Inquiry ** Account Summary ** 820.3908.302.000 1)WATER FUND 2)PUMPING LABOR & EXPENSE 3)EQUIPMENT MAINT & REPAIRS 4)EQUIPMENT MAINT & REPAIRS PERIOD MONTH YTD CURRENT 3/31/06 3.54 78,560.91 4/30/06 493.99 79,054.90 13,000.00CR 5/31/06 2,503.49 81,558.39 16,305.10CR 6/30/06 4,762.65 86,321.04 FYE 2006 0.00 86,321.04 9,585.78 7/31/06 3,090.10 3,090.10 8/31/06 56.01 3,146.11 9/30/06 9.91 3,156.02 10/31/06 699.75 3,855.77 11/30/06 783.17 4,638.94 239.05 12/31/06 372.10 5,011.04 6,448.05 1/31/07 355.65 5,366.69 .............. 2/28/07 842.31 6,209.00 271.27CR 3/31/07 239.05 6,448.05 2 ADOPTED BUDGET REVISED BUDGET Encumbered Current Period Current Year Remaining % Remaining Detail to Display .... A (A/B/D/E/P/I/O) Show Detail Starting At 07 / 01 / 2006 B/F/S/R ACTION? AGENDA ITEM NO: 10b MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: ADOPTION OF RESOLUTION ADOPTING AHWAHNEE WATER PRINCIPLES SUMMARY: The City Council considered the Ahwahnee Water Principles at its continued regular meeting on March 20, 2007. It requested the City Attorney to prepare a resolution adopting the principles. The resolution, attached as Attachment 1, adopts the principles. The resolution states that in adopting the principles, the City Council intends them to ".. ...be treated as guidelines to aid in decision-making, but no decision shall be subject to a challenge in court based on the Principles or on a claim that the Principles were not followed or misapplied." Staff recommends the use of the attached resolution to adopt the principles. RECOMMENDED ACTION: Adopt resolution adopting Ahwahnee Water Principles. ALTERNATIVE COUNCIL POLICY OPTIONS: Revise resolution before adoption. Take no action. Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council David J. Rapport, City Attorney Candace Horsley, City Manager Attachment 1 - Resolution Approved: Candace Horsiey, City, Manager ~,TfACHMENT I . RESOLUTION NO. RESOLUTION OF THE UKIAH CITY COUNCIL ADOPTING AHWAHNEE WATER PRINCIPLES WHEREAS, 1. The Local Government Commission or LGC is a nonprofit, nonpartisan, membership organization established in 1979, which is composed of local elected officials, city and county staff, planners, architects, and community leaders who are committed to making their communities more livable, prosperous, and resource-efficient; and 2. The LGC has developed the Ahwahnee Water Principles ("Principles"), as true and correct copy of which are attached here to as Exhibit A; and 3. The Principles contain ideas for protecting and enhancing water quality, improving water availability, making more efficient use of water, and conserving water as a scarce resource; and 4. The Principles suggest a process for improving decision-making as it impacts water-related issues; and 5. The City Council has reviewed the Principles and has determined that the ideas and suggestions contained in them promote their stated goals and should be considered, when the City Council, City commissions and boards, and city officials and employees make decisions that could be influenced by the Principles; NOW, THEREFORE, BE IT RESOLVED as follows: 1. The City Council endorses the Principles and encourages consultation of them, when the City and its elected and appointed officials and employees make decisions which could be affected by them. 2. The Principles should be treated as guidelines to aid in decision-making, but no decision shall be subject to a challenge in court based on the Principles or on a claim that the Principles were not followed or misapplied. PASSED AND ADOPTED on April 4, 2007, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Mari Rodin, Mayor Gail Petersen, City Clerk the fei ab]iity mu quality of our ]he//Va~er PrincJpies below (ornp~e ment the Ahwahnee Pdnciples for Resource-Efficient Communities that were developed in lggl iV'any cities and counties are already using them to improve the vitality and prosperity of their communities. · Community Principles 1. Community design shouJd be compact, mixed use, walkable and transit oriented so that automobile generated urban runoff pollutants are minimized and the open lands that absorb water are preserved to the maximum extent possible. [See the Ahwahnee Principles for Resource-Efficient Communities] ,2. Natural resources such as wet- lands, flood plains, recharge zones, riparian areas, open space, and native habitats should be identified, preserved and restored as valued assets for flood protection, water quality improvement, groundwater recharge, habitat, and overall long- term water resources sustainability. reduce flooding. 6. Dudl plumbing that allows gray water from showers, sinks and washers to be reused for landscape irrigation should be included in the infrastructure of new development 7. Community desrgn should maxi- mize the use of recycled water for appropriate applications including outdoor irrigation, toilet flushing, and commercial and industrial processes. Purple pipe should be installed in all new construction and remodeled buildings in antici- pation of the future availability of recycled water. 8. Urban water conservation tech- nologies such as Iow-flow toilets, efficient clothes washers, and more efficient water-using industrial equipment should be incorporated Implementation Principles 3.The best, mu b benef t and integrated strateg es and projects should be 'dent fled aqd imp e- mented before Jess 'ntegrated proposals, unless urgency demands otherwise. 4. From start to f'nish, proiects and programs should involve the pubhc, build relationships, and increase the sharing of and access to information. The participatory process should focus on ensuring that all residents have access to clean, reliable and affordable water for drinking and recreation. 5. Plans, programs, proiects and policies should be monitored and evaluated to determine if the expected results are achieved and to improve future practices. © 2005, Local Government Commission ITEM NO: 10c MEETING DATE: April 4, 2007 AGENDA SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION ON ACQUISITION OF THE MATTERN PARCEL BY CITY/DISTRICT SEWER OPERATIONS FUND SUMMARY: As is explained in more detail in Attachment 1, the City is purchasing for $550,000, 19 acres of land from Richard and Donna Mattern, which is contiguous to the northern boundary of the wastewater treatment plant property. The property is needed for Phase 2 of the wastewater treatment plant expansion project. The City is proposing that the costs of acquiring this property from the Matterns be paid from Fund #612, which would result in the District and the City sharing the acquisition cost in proportion to the ESSUs in the City and the District. Capital expenditures, greater than $100,000, by the City/District Sewer Operations Fund, requires agreement between the City and the District. Therefore, acquisition of the Mattern parcel requires written agreement between the City and the District. The RECOMMENDED ACTION: 1. Approve the purchase of the Mattern parcel from the City/District Sewer Fund #612 and a budget amendment for the amount of the purchase. 2. Direct staff to make a request to the UVSD board for approval of the purchase from the City/District Sewer Operations Fund. 3. Authorize the chairperson to sign an agreement with the Ukiah Valley Sanitation District agreeing to the purchase of the Mattern parcel by the City/District Sewer Fund #612. ALTERNATIVE COUNCIL POLICY OPTION: Provide Staff with alternative direction. FUNDING: From Account No. To Account No. Additional Request Sewer Operation Fund Balance 612.3580.800.001 $550,000 Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: NA Brent Smith, Finance Director Candace Horsley, City Manager City Attorney letter to County Counsel dated March 20, 2007 Approved: ~ Candace Horsley, City'~Vlanager Page 1 of 2 Ukiah City Council Agenda April 4, 2007 acquisition of a parcel of land for potential future use of the sewer enterprise can be funded from existing resources of the City/District Sewer Operations Fund. Utilizing existing funds means the purchase is funded jointly, in proportion to the ESSU ratio between District and City customers. Purchasing the property for cash eliminates future interest expense and can be accomplished without affecting current customer rates. The property is currently needed for Phase 2 of the wastewater treatment plant expansion. If those plans are changed in the future and the Mattern property is longer required, the property could be sold, with the proceeds from the sale returned to the operating account for the joint benefit of both the District and City customers. DISCUSSION: The attached letter (Attachment 1) from City Attorney David Rapport to County Counsel Jeanine Nadel, dated March 20, 2007, contains a detailed discussion of the background of the purchase. Amendment No. 1 to the District/City Participation Agreement, dated July 19, 1995, requires a separate written agreement between the City and the District for expense categories not included in the approved budget for the sewer system prior to the 1997/1998 fiscal year, if the expense is a capital expense in excess of $100,000 other than a repair or replacement of existing facilities or equipment. The acquisition of this parcel appears to be subject to the language requiring a written agreement between the City and the District. The City/District Sewer Operations Fund #612 has sufficient cash to make the purchase. Borrowing the money is an option that could be pursued. Obviously this direction incurs interest expense that ultimately increases the cost of the property and therefore increases costs to the ratepayers. This item is planned for consideration by the UVSD Board of Directors in April 2007. Page 2 of 2 Attachment Law Offices Of RAPPORT AND MARSTON An Association of Sole Practitioners 405 W. Perkins Street P.O. Box 488 Ukiah, California 95482 e-mail: drapport@pacbell.net David J. Rapport LesterJ. Mamton Scott Johnson Mary Jane Sheppard MEMORANDUM (707) 462-6846 FAX 462-4235 TO: FROM: DATE: SUBJECT: Jeanine Nadel. Mendocino County Counsel David J. Rapport March 20, 2007 Acquisition of Mattern Parcel for wastewater treatment plan You requested background information on the above acquisition. I understand this matter is on the agenda for the upcoming meeting of the Ukiah Valley Sanitation District. The City is requesting the UVSD Board to share in the cost of this acquisition. The City is acquiring the Mat'tern Parcel for $550,000 plus closing costs as a result of the settlement of litigation between Richard and Donna Mattern and the City. The litigation concerned 19 acres of vineyard owned by Richard and Donna Mattern (the "Mattern Parcel"), which is contiguous with the northern boundary o the C~ty s wastewater treatment plant property. As the District Board knows, the City is currently undertaking Phase 1 of the wastewater treatment prant replacement and expansion project. Phase 2 is planned to be undertaken in the next 5-10 years, according to the Mitigated Negative Declaration which was approved for both phases in November 2004. Phase 2 requires acquisition of the Mattern Parcel and possibly property to the east of the Mattern Parcel owned by the Norgards. The City had the Mattern Pamel appraised in 2003. The appraiser determined that the highest and best use of the property was for vineyard and based the appraisal on the value of the property as vineyard. The Matterns felt strongly that the property should be appraised as industrial property, because of the surrounding land uses (wastewater treatment plant, county animal shelter, MTA facility, solid waste transfer station, MSMWA household hazardous waste collection operation), even though the property is designated for agricultural use in the County general plan and zoning ordinance. Because of this difference of opinion, property negotiations did not progress. As part of the tentatively approved Ukiah Valley Area Plan, Donna Mattern requested and the Board of Supervisors approved re-designating the Mat'tern Parcel as Industrial under the County's General Plan, if, in the future, the City acquired the Norgard Parcel for the wastewater treatment plant. In the meantime, the City accepted a bid for the Phase 1 wastewater treatment plant project and that project required the use of approximately 18.75 feet of land on the City's wastewater treatment plant property, which borders the Mattem Parcel. That strip of land was located north of a fence on the wastewater treatment plant property which had been there for many years. The Matterns claimed a right to use this strip of land for access to the southern end of their vineyard, and threatened litigation, if the City attempted to use it. To avoid delays during construction, the City filed a law suit against the Matterns to enjoin them from interfering with the City's use of that property. The City obtained a preliminary injunction but the Matterns filed a cross-complaint against the City for inverse condemnation. The City filed a motion to strike the cross-complaint, which was denied. The City appealed that decision. The appeal is pending, but the parties agreed to participate in a mediation offered by the court of appeal In anticipation of the mediation, which was held on December 4 and 5 in Ukiah, the City had another appraisal done, because of the time that had passed since the previous appraisal and because of concerns about the methods used in the 2003 appraisal. The updated appraisal also determined that vineyard was the highest and best use of the Mattern Parcel It used recent vineyard sales for seven vineyards in the area and appraised the Mattern Parcel at $490,000. It also performed a hypothetical appraisal of the property as an industrial parcel and valued the property for industrial uses at $764,000. The City Manager and the City Attorney represented the City in the mediation. Both Mr. and Mrs. Mattern and their attorney participated. The mediator, appointed by the court of appeal, was Mike Nave, a retired partner in the law firm of Meyers, Nave. After a day and a half mediation, the participants approved a settlement agreement, which was subsequently approved by the City Council. Under the agreement, the City agreed to buy the Mattern Parcel for $550,000. The City opened a 90 day escrow on December 26, 2006, which must close on or about March 26, 2007. In addition to the $550,000 purchase price, the City will lease the property back to the Matterns under one year leases, which within the first five years after close of escrow, the City can only terminate if it determines that it needs the property for the Phase 2 project and on six month's notice to the Matterns. After five years the City can terminate the lease for any reason on six months notice to the Matterns. The Matterns can terminate the lease at any time, if they no longer want to farm the vineyard. The Matterns will remain liable for all costs of maintaining the property, will insure the property and name the City as an additional insured, indemnify the City against liability for their farming operation, and must continue to operate the vineyard. The City will receive 15% of the net profits. The Matterns have stated that their net profits last year were approximately $60,000, although that was unusually high. $35,000 or $40,000 is a more likely average, or between $5250-$6000 income to the City each year. In the settlement agreement, the City acknowledges the existence of a recorded water line easement across the City property to connect a pump in the Russian River to property the Matterns claim to own on the west side of the railroad tracks that is currently leased to a lumber operation. The acknowledgment is without prejudice to any claims the City may have regarding the continuing validity, scope or use of the easement. The Matterns acknowledge that they had no legal right to use the City properb/in their vineyard operation. The City will pay all escrow fees. The parties each pay half of the mediator's fees and expenses. The mediator's fees and expenses total $5,000. Each party will pay $2500 of that total. Once escrow closes, the City will file an abandonment of its appeal and the parties will dismiss their complaint and cross-complaint with prejudice. The Matterns accept the $550,000 as total compensation for the acquisition of their property for the Phase 2 project, including any costs they incur to vacate the property or relocate the vineyard, when the lease terminates. They release the City from all claims they have made or could have made against the City in their inverse condemnation action. The above narrative should give you and the Board an understanding the process which has lead up to the acquisition. AGENDA SUMMARY Item No 1 la Date: April 4, 2007 REPORT SUBJECT: DISCUSS AND DETERMINE COUNCIL'S WILLINGNESS TO PARTNER WITH THE COUNTY OF MENDOCINO USING CITY REDEVELOPMENT FUNDS AND/OR OTHER IN-KIND RESOURCES IN SUPPORT OF A DOWNTOWN LOCATION FOR THE NEW CRIMINAL JUSTICE CENTER/COURTHOUSE SUMMARY: The County of Mendocino is currently in the process of identifying possible sites for a criminal justice center, which would include a new courthouse, detention facility, justice center (e.g., district attorney and public defender offices), and sheriff's department. The County's consultants, Beverly Prior Architects, initially identified six possible locations for the complex. Ultimately, three locations will be studied in depth. The final configuration may combine all criminal justice-related operations at a single location or, alternately, might result in some operations, such as the courthouse and justice center remaining downtown while other operations are located at a new site. On March 28th the Criminal Justice Committee decided to recommend that the Board of Supervisors approve further study of the downtown, Brush Street Triangle and Low Gap Road locations. Various options are under consideration for the downtown location, ranging from locating all facilities downtown to only locating the courthouse and justice center downtown. A specific downtown site has not yet been identified but various conceptual possibilities are being discussed. It is possible that acquisition of land and other costs may be higher downtown and County staff and members of the Board of Supervisors have raised the question of the City's willingness to be a financial partner if a downtown location is selected for some or all of the facilities. RECOMMENDED ACTION: Discuss and determine if the City Council supports utilizing redevelopment funds, in-kind resources, or other incentives to assist in siting some or all of the new criminal justice facilities in the downtown area. ALTERNATIVE COUNCIL OPTIONS: Provide alternative direction. Citizen Advised: N/A Requested by: Mayor Rodin and Councilmember McCowen Prepared by: Mayor Rodin and Councilmember McCowen Coordinated with: Candace Horsley, City Manager Ap p ROVE D .L-J~'~?%Z~~ Candace Horsley, C~ Manager AGENDA ITEM NO: llb MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: REPORT TO CITY COUNCIL REQUESTING AUTHORIZATION FOR THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT FOR RECREATION SOFTWARE FROM GOV PARTNER FOR THE COMMUNITY SERVICES DEPARTMENT, AND AUTHORIZATION FOR A BUDGET ADJUSTMENT IN THE AMOUNT OF $15,150.00. Over the past seven years the Community Services Department has been researching software programs for the services offered by our department. During the course of the last two years, implementing a software program has been one of our top goals. Specifically, we have identified the need for more accurate management and accounting of our revenues. The point of sale system will offer accurate tracking and financial management of funds received (total revenue in excess of $400,000). Staff has narrowed down the top two software providers, Gov Partner and Active.net, met with representatives from these companies and performed reference checks. After extensive research, staff has concluded that Gov Partner, by Bureau Veritas, is the best fit for our departments needs. Continued on paqe 2 RECOMMENDED ACTION: Approve the request for authorization for the City Manager to negotiate and execute a contract for recreation software from GOV Partner for the Community Services Department, and authorization for a budget adjustment in the amount of $15,150.00. ALTERNATIVE COUNCIL OPTIONS: Reject the request to authorize the City Manager to negotiate and execute a contract and remand to staff with further direction. FUNDING: Amount Budqeted From Acct No. General Fund Reserve Balance To Acct. No. Additional Funds Requested 100.6110.250.000 $15,150 Citizens Advised: Parks, Recreation and Golf Commission Requested by: N/A Prepared by: Sage Sangiacomo, Community Services Director and Maya Simerson, Community Services Supervisor Coordinated with: Candace Horsley, City Manager, Brent Smith, Finance Director, and Steve Butler, I.T. Supervisor Attachments: Attachment #1: Proposed Gov Partner agreements Attachment #2: ReservePartner Quote Approved: '..J~:~% ~'~,~'~-~'~ Can-'-h-d'ace Horsley, City I~anager ) Bureau Veritas developed Gov Partner in 1999 to design and create excellent software solutions for all aspects of government, including recreation programs. Their recreation solution is called ReservePartner. In 2005, they released their newest web-hosted system of ReservePartner, and continue to provide regular updates to the system. Furthermore, if other departments in the City chose to use another segment of Gov Partner solutions an addendum to the proposed contract can easily be made. Both the Planning and IT Department are currently evaluating Permit Request and Citizen Request modules respectively. However, the current price proposal offered on ReserveParnter is at its lowest possible point and combining this purchase with others will not affect the price. The Community Services Department has collaborated with the I.T. department from the beginning of our search for software. Mr. Steve Butler, I.T. Supervisor, has participated in ReservePartner demonstrations, reviewed the technical aspects of the software, and confirmed that all applications are compatible with the City's technology. He has also confirmed the reporting will be adequate for the Finance Department, and any new software that may be forthcoming. Director Smith, Mr. Butler, Ms. Halverson, Director Sangiacomo and Ms. Simerson had a recent conference call to cover the software's ability to interface with our accounting procedures. No problems are foreseen. The software would be hosted by Gov Partner so the City is not responsible for the purchase or maintenance of a server. Likewise a hosted program will reduce the draw on the City's I.T. department for support. In addition, the financial information (such as credit card numbers) are related directly to our banking source, eliminating the liability of storing that data in our files. Furthermore there is no additional fee associated with on-line registrations for our customers, often referred to as convenience fees. All other software solutions we researched charged an additional fee for on-line reservations. Benefits of having recreation software include: · Online registration · Detailed tracking and reporting of our revenue & expenses (Point of Sale System) · Instructor access to class rosters · Major reduction in staff time spent creating rosters, instructor payments, etc. · Create a detailed customer database and allow for direct marketing Through our negotiations with Gov Partner we have secured the option for a five year contract with the following terms. Core implementation, including on site set-up and training for $12,000.00, custom enhancements $2,500.00, and maintenance fee of $325 per month for 5 years ($3,900 per year) that will include all software updates. Please see Attachment 1 for the proposed agreements and Attachment 2 for the ReservePartner quote. Below is a comparison of the top software programs: Second Fourth TOTAL 5 First Year Year Third Year Year Fifth Year YR.COST Gov Partner (hosted) Implementation $12,000.00 Custom Enhancements $2,500.00 Annual Maintenance $3,900.00 $3,900.00 $3,900.00 $3,900.00 $3,900.00 Total Annual Cost $18,400.00 $3,900.00 $3,900.00 $3,900.00 $3,900.00 $34,000,00 ActiveNet (hosted) Implementation $6,700.00 Est. Yearly Fees (1.5 - 2.25) $10,558.00 $10,558.00 $10,558.00 $10,558.00 $10,558.00 Total Annual Cost $17,258.00 $10,558.00 $10,558.00 $10,558.00 $10,558.00 $59,490.00 ActiveNet (client served) Implementation $12,800.00 Software $9,250.00 Hardware $6,000.00 Est. Annual Maintenance $2,312,00 $2,312.00 $2,312.00 $2,312,00 $2,312.00 $30,362.00 $2,312.00 $2,312.00 $2,312.00 $2,312.00 $39,610.00 Staff presented the proposed software options to the Parks, Recreation and Golf Commission, along with the need to move forward with the purchase so as to have the software in place before the summer, our busiest months. The Commission reviewed the software options and voted to recommend the purchase of the Gov Partner product to City Council by a three to one vote. Another key factor to moving forward with the purchase of this software program mid-year is the upcoming turnover of the Community Services Supervisor position. By making this change before the transition takes place, the Department will be able to capitalize on the institutional knowledge that the current supervisor possesses. At this time staff requests permission for the City Manager to negotiate and execute a contract with Gov Partner for recreation software, and authorization for a budget adjustment in the amount of $15,150 to cover implementation and the monthly fee for the remainder of this fiscal year. At the start of the next fiscal year the monthly fee will be budgeted into the recreation department and will be offset by the revenue from the recreation programs. Attachment #1 Master Agreement Terms and Conditions RESP111706 Master Agreement No. This Master Agreement Terms and Conditions (the "Agreement") is made and entered into this 7th day of February, 2007 by and between Bureau Veritas North America, Inc., having its principal place of business at 11590 West Bernardo Court, San Diego, CA 92127 ("CONSULTANT"), City of Ukiah ("CUSTOMER") with an address of 300 Seminary Avenue, Ukiah, CA 95482 and GovPartner.com. This Agreement includes the following Terms and Conditions, as well as those agreements set forth below which are initialed by CUSTOMER, all Exhibits to the Agreement, and all future agreements referencing this Agreement which CONSULTANT and CUSTOMER may execute from time to time for the license, support & maintenance, services, and hosting of the Software licensed under this Agreement which is more fully described on Exhibit A, attached hereto and incorporated herein by this reference (collectively "Products"). Aqreements Form No. CUSTOMER's Initials Software Maintenance and Support Agreement 0001.003 Professional Services Agreement 0002.001 Application Hosting Agreement 0003.001 This Agreement constitutes the entire agreement between the parties on the subject matter hereof and supersedes all prior or contemporaneous agreements, negotiations, representations and proposals, wdtten or oral between CONSULTANT and CUSTOMER. This Agreement is not an acceptance of any conflicting terms and conditions and will prevail over any conflicting CUSTOMER's terms and conditions. Only a writing executed by authorized representatives of the parties and referenced as an amendment to this Agreement may modify, supplement, or change this Agreement. CONSULTANT is licensed by GovPartner.com, a Nevada corporation, ("GOVPARTNER") to sublicense software programs and offer services to CUSTOMER under this Agreement. BY EXECUTING THIS AGREEMENT, CUSTOMER ACKNOWLEDGES THAT IT HAS REVIEWED THE TERMS AND CONDITIONS ON THE FOLLOWING PAGES tN ADDITION TO ANY AGREEMENTS LISTED ABOVE WHICH ARE INITIALED BY CUSTOMER AND CUSTOMER AGREES TO BE LEGALLY BOUND BY EACH SUCH AGREEMENT. CUSTOMER, BY ITS SIGNATURE, ACKNOWLEDGES THAT THIS AGREEMENT CONTAINS CERTAIN LIMITATIONS OF LIABILITY AND CERTAIN WARRANTY DISCLAIMERS. Bureau Veritas North America, Inc. By (Type or print name) (Signature) Title Date GOVPARTNER.COM By (Type or print name) (Signature) Title City of Ukiah By (Type or print name) · (Signature) Title Date Date General Terms and Conditions Payment Terms. CONSULTANT will invoice CUSTOMER on a one-time or periodic basis for all license fees, maintenance and support charges and service fees and hosting fees for the Software (herein "Fees"). CUSTOMER must pay each invoice within Thirty (30) days from invoice date, unless otherwise specified in the applicable agreement. CUSTOMER must pay each invoice for a delivery within Thirty (30) days from invoice date without regard to other scheduled shipments. Invoices not paid when due will have a 1.5 percent per month interest charge or the highest lawful rate, whichever is less, assessed against the unpaid balance from the date of invoice until the date of payment. All payments made under this Agreement shall be paid in United States dollars. Proprietary Rights and Confidential Information. A. Certain information and materials supplied by CONSULTANT with the Products such as, without limitation, the Services, Deliverables, manuals, diagrams, drawings, plans, flowcharts, software, technical processes and formulae, source codes, product designs, sales, costs and other unpublished financial information, product and business plans, usage rates, relationships, projects and data, are CONSULTANT's or GOVPARTNER's confidential or proprietary trade secrets (the "Confidential Information") and CONSULTANT furnishes them solely to assist CUSTOMER in the installation, operation and use of the Products. CUSTOMER must not reproduce, copy or disclose such Confidential Information except as is reasonable and necessary to properly use the Products. Nothing heroin shall restrict CUSTOMER from complying with its obligations under any law requiring disclosure, but CUSTOMER shall give CONSULTANT five days prior notice before any release of Confidential Information. B. CUSTOMER acknowledges and agrees that CONSULTANT or GOVPARTNER shall suffer irreparable injury not compensable by money damages and therefore shall not have an adequate remedy at law in the event of an unauthorized use of proprietary rights or an unauthorized use or disclosure of any Confidential Information in breach of the provisions of this Agreement. Accordingly, CONSULTANT or GOVPARTNER shall be entitled to injunctive relief to prevent or curtail any such breach, threatened or actual. The foregoing shall be in addition and without prejudice to such rights that CONSULTANT or GOVPARTNER may have at law or in equity. Infringement Indemnification GOVPARTNER will defend any action, suit or proceeding brought against CUSTOMER if based on a claim that the Products delivered hereunder infringes any United States patent or copyright of any third party ("Intellectual Property") provided that CUSTOMER promptly notifies GOVPARTNER immediately by overnight mail to General Counsel, GovPartner.com, 11590 West Bernardo Court, San Diego, CA 92127 of the action and gives GOVPARTNER full authority, information and assistance for the action's defense. GOVPARTNER will pay all damages and costs awarded therein against CUSTOMER, but shall not be responsible for any compromise made without its consent. CONSULTANT or GOVPARTNER may, at any time it is concerned over the possibility of such an infringement, at its option and expense, replace or modify the Products so that infringement will not exist, or remove the Products involved and refund' to CUSTOMER the price as depreciated by an equal annual amount over five (5) years. B. CONSULTANT and GOVPARTNER shall have no liability to CUSTOMER if any Intellectual Property infringement or claim thereof is based upon the use of the Products in connection or in combination with equipment, devices, or software not supplied by CONSULTANT or used in a manner not expressly authorized by this Agreement or in a manner for which the Products were not designed, or if the claim of infringement would have been avoided but for CUSTOMER's use of software other than the latest, unmodified release of Software made available to CUSTOMER by CONSULTANT. C. CUSTOMER shall indemnify and hold CONSULTANT and GOVPARTNER harmless from any loss, cost or expense suffered or incurred in connection with any claim, suit or proceeding brought against CONSULTANT or GOVPARTNER so far as it is based on a claim that the use, sale or licensing of any Products delivered hereunder and modified or altered or combined with any products, device, or software not supplied by CONSULTANT hereunder constitutes an infringement because of such modification, alteration or combination. Limitation of Liability. CONSULTANT and GOVPARTNER will not be liable for any loss or damage claimed to have resulted from the use, operation or performance of the Products or related in any way to their acquisition, regardless of the form of action. In no event will CONSULTANT or GOVPARTNER be liable to CUSTOMER for (a) any special, indirect, incidental or consequential damages, even if CONSULTANT or GOVPARTNER has been advised of the possibility thereof, (b) any damages resulting from latent defects, loss of data or profits, (c) any claim whether in contract or tort, that arose more than one year prior to institution of suit thereon. CONSULTANT and GOVPARTNER shall be liable for actual damages resulting from a material breach of this Agreement in an amount less than or equal to, but not in excess of, the fees paid hereunder. $. Taxes. CUSTOMER shall pay a~l taxes, levies and similar governmental charges, however designated, and all liabilities with respect thereto which may be imposed by any jurisdiction, including, without limitation, customs, privilege, excise, sales, use, value-added and property taxes levied or based on gross revenue or operation of this Agreement, except those taxes based upon CONSULTANT's net income. 6. Export. CUSTOMER agrees that the Products purchased hereunder will not be exported directly or indirectly, separately or as part of any system, without first obtaining a license from the U.S. Department of Commerce or any other appropriate agency of the U.S. Government, as required. 7. Assignment. CUSTOMER may not assign, voluntarily or by operation of law, any of its rights or obligations in this Agreement except with CONSULTANT's prior written consent. This Agreement will be binding on and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 8, Waiver. The parties' rights and remedies are separate and cumulative. Neither parties waiver or failure to exercise in any respect any right or remedy provided in this Agreement is a waiver of any future right or remedy hereunder. 9. Force Majeure. If any cause beyond CONSULTANT's reasonable control prevents CONSULTANT from performing under this Agreement by a given date or time, CONSULTANT's performance will be automatically postponed. 10. Choice of Law. The laws of the State of California will govern the construction and operation of this Agreement without regard to the conflict of laws provisions thereof. 11. Severability. The invalidity of any provision of this Agreement will not affect the validity and binding effect of any other provision. 12. Notice. Notices hereunder must be sent to the addresses on the face of this Agreement, or to such other addresses as specified by a notice complying with this provision. Notice is effective on the earlier of actual receipt or five days after deposit in the mail. Notices in the form of a fax or email are acceptable if followed up by a mailed confirmation. 'Notices to CONSULTANT must be sent to the attention of Mr. Kevin Vincent. Notices to CUSTOMER must be sent to the attention of Mr. Sage Sangiacomo. 13, Disputes. Any dispute regarding this Agreement shall be resolved by the alternate dispute resolution process stated in this Section 13. First, the Manager of CUSTOMER and the President of CONSULTANT shall meet to resolve the dispute. If that meeting does not resolve the dispute, the parties will refer the dispute to mediation with a mediator mutually selected by them. Any dispute that has not been resolved by mediation, as provided in this section, within sixty (60) days of the initiation of such procedure, shall be finally settled by arbitration conducted expeditiously in accordance with the Commercial Arbitration Rules of the American Arbitration Association by a sole arbitrator; provided, however, that persons eligible to be selected as arbitrators shall be limited to attorneys at law who are on the AAA's Large, Complex Cases Panel; or who have professional credentials similar to the attorneys listed on such AAA panel. If the parties encounter difficulty in agreeing on an arbitrator, they agree that the AAA shall select the arbitrator~ The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1-'16. The award shall be based upon applicable law and judicial precedent and judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction thereof. The place of arbitration shall be a location as mutually agreed in Iowa. The arbitrator is not empowered to award damages in excess of compensatory damages and each party hereby irrevocably waives any damages in excess of compensatory damages. Reduced Pricing We would like to extend the City of Ukiah Community Services reduced pricing for the ReservePartner system hosting fees. We have been authorized to reduce pricing for prospective clients to make our solution more attractive. Tn return we hope that the City will be willing to function as a GovPartner reference once the solution is in place. This typically involves taking occasional phone calls, e-mails and possibly accommodating a site visit for qualified potential clients. ReservePartner Software Fees GovPartner Hosted ReservePartner Solution Class Registration Module Facility Reservation Module Promotional Hosting Fees ..............................$325 per month Standard Hosting Fees ............................................................. ~;750 per month Software Hosting covers the following: · Unlimited concurrent software license for both staff and online customers · Hosting of the ReservePartnersystem at GovPartner data center · Software maintenance including: updates, upgrades, ongoing enhancements, and technical/user support via phone, e-mail, and Web Conferencing. City specific reports and customizations .................................... $2,500 Scholarship Report - The City would like to be able to produce a report that lists all registrations where a scholarship and or discount was applied. · This will be a new custom report. We will create the report with input from the City. Track T-Shirt sizes - The City would like to be able to add a field for T-Shirt size for each person registering for a League (which would be set up as a Class and Session in the system). Each registrant will provide a T-Shirt size to complete the registration. This is a class specific entity and not tied to the user profile. · We will add a couple of custom fields to the reservation system that could capture this information. The City will be provided with two dropdowns and two text fields. When a class is setup staff could set these up too, and also make them required. Ability to add notes/comments/request to a registration - The City would like to allow users a text field where they can request a coach, to be placed on a specific team, or simply add comments. · We will add a couple of custom fields to the reservation system that could capture this information. The City will be provided with two dropdowns and two text fields. When a class is setup staff could set these up too, and also make them required. Early/Late Registration - The City would like to allow two different registration fees based on and early and normal registration period. · We will provide this capability to allow staff to set up two registration fees based on registration dates. ReservePartner Implementation Fees Core Implementation of the following Modules: · Class Registration Description Project Management System Configuration & Testing On-Site Training & Mentoring Core Implementation Estimate Unit Price quantity Cost $1,000 day 5 days $5,000 $:[,000 day 2 days $2,000 $1,000 day 3 days $3~000 $10~000 ~Does not/nc/ude re/mbursab/e expenses, ~vh/ch are billed at cost plus 15% adm/n/strat/ve fee. Professional Services Agreement RESP111706 Master Agreement No. This Professional Services Agreement (the "Professional Services Agreement") by and between Bureau Veritas North America, Inc., having its principal place of business at 11590 West Bernardo Court, San Diego, CA 92127 ("CONSULTANT") and the City of Ukiah ("CUSTOMER") with an address of 300 Seminary Avenue, Ukiah, CA 95482 is an addendum to the Master Agreement Terms and Conditions between CONSULTANT and CUSTOMER dated the 7th day of February, 2007 (the "Master Agreement"). Capitalized terms not otherwise defined herein shall have the same meaning as defined elsewhere in the Master Agreement. CUSTOMER AGREES TO INTIAL HERE AND iN THE APPROPRIATE SPACE ON THE FACE OF THE MASTER AGREEMENT TO iNDICATE ITS iNTENTION TO HAVE THIS PROFESSIONAL SERVICES AGREEMENT APPLY. CUSTOMER AGREES TO THE FOLLOWING ADDITIONAL TERMS AND CONDITIONS WHICH ARE INCORPORATED IN AND MADE PART OF THE MASTER AGREEMENT. CUSTOMER's Initials 13. Services Agreement and the WO, then the Professional Services Agreement shall A. The professional consulting services and control. deliverables to be performed or delivered by CONSULTANT under this Professional Services Agreement may include, but are not limited to: consulting, network engineering, systems integration, hardware installation, special studies, installation evaluations, custom modification, tools/utilities components, programming and documentation, data conversion, application design and development, systems analysis and design, conversions, implementing planning and implementation of the Software pursuant to CUSTOMER's Work Order (collectively referred to as the "Services"). On-site support is available to resolve severe problems rendering software application substantially inoperable and to perform upgrades. During the term of this Professional Services Agreement, the CUSTOMER may submit orders to CONSULTANT. Upon acceptance by CONSULTANT, each order shall become part of and be subject to the terms and conditions of this Professional Services Agreement. CONSULTANT shall not withhold acceptance unreasonably. For each order issued and accepted by CONSULTANT, the parties shall mutually agree to and attach a work order ("WO") with written estimate of the tasks, deliverables, acceptance of deliverables, schedule for performance and cost for providing the requested Services. It is understood that the WO may be amended by mutual written agreement. If there is any conflict of terms between this Professional Services Hours of Service: Services will be provided during the hours of 8:00 a.m. to 5:00 p.m. Monday through Friday excluding holidays or such holidays as observed locally by CONSULTANT. CUSTOMER may request in writing extended hours beyond the normal hours of service at the prevailing surcharge rates. CUSTOMER shall furnish CONSULTANT, at CUSTOMER's expense, all technical data and information as may be determined by CONSULTANT to be necessary to furnish the Services in the WO. CUSTOMER shall grant CONSULTANT access to the System at such times and so configured as may be required for the adequate delivery of the Services. CONSULTANT tools/utilities components and custom modifications (hereinafter "Components") developed by CONSULTANT to enhance the functionality of CONSULTANT Software for the applicable CUSTOMER solution may be described and the associated fees therefor may be set forth in the applicable WO. The rights to use these Components are granted in accordance with Section 7 hereunder. addition, continuing support for the specified Components may be ordered under CONSULTANT's Software Maintenance and Support Agreement. CONSULTANT shall use reasonable efforts to perform the Services to be provided hereunder, but CONSULTANT will not be responsible for any delays resulting from circumstances beyond its control. 14. Term This Professional Services Agreement shall commence effective on the date of acceptance by CONSULTANT and shall remain in force until terminated with thidy (30) days prior written notice from either party. Completion of any ordered Services or the absence of orders for additional Services shall not terminate this Professional Services Agreement, it being the intent of the parties to keep this Professional Services Agreement in effect in the event of future orders for Services unless otherwise notified by either party in writing. 15. Charges The CUSTOMER agrees to pay for all Services delivered by CONSULTANT, including reasonable travel, subsistence and lodging which are invoiced to CUSTOMER at cost plus a 15% administrative fee. Additionally, the CUSTOMER agrees to reimburse CONSULTANT for any special or unusual expenses incurred at the CUSTOMER's specific request. Unless a prepaid order is received, CUSTOMER will be invoiced monthly for Services rendered in the previous month or in accordance with the milestone payment schedule in the WO attached to each order. All invoices are due and payable within 30 days. invoices not paid when due will have a 1.5 percent per month interest charge or the highest lawful rate, whichever is less, assessed against the unpaid balance from the date of the invoice until the date of payment. CUSTOMER shall pay all costs involved in collecting its overdue accounts including reasonable attorneys' fees. All charges and rates are exclusive of all sales, use and like taxes, Such taxes are the responsibility of the CUSTOMER and will be billed to the CUSTOMER as a separate line item on each invoice. 16. Change Orders in the event that either party desires to change the scope of the Services for any reason which is not within the scope of the WO, such party (referred to for convenience as the "requesting party") shall submit to the other party (referred to for convenience as the "receiving party!') a request for a change to the scope of the Services (a "Change Order"). Each Change Order shall set forth in reasonable detail the nature of the change in the Services being requested, the recommended increase or decrease in personnel or other resources, if any, and any impact of the Change Order will have on the WO schedule, once the Change Order is implemented. The receiving party will use commercially reasonable efforts to review and respond to the Change Order within ten (10) business days after receipt of the Change Order. The receiving party may approve, propose modifications to or disapprove of the requested Change Order. Nether party shall unreasonably disapprove a Change Order presented by the other. If the receiving party disapproves of the requested Change Order, the receiving party shall provide to the requesting party in writing, within the ten (10) day response period, the reasons for denying the requested Change Order. In the event the parties fail to agree on a specific Change Order, CONSULTANT shall continue to provide the Services at the service level provided that the WO is met. CONSULTANT shall have the right to allocate its resources to the extent necessary to achieve such mutually agreed to service levels. A stop work notice or a request for suspension of performance by the CUSTOMER shall be considered a change order under this Section. Any resumption of the Services shall require a mutual review and written acceptance of the applicable WO and any changes or amendments thereto. 17. Change Control and Supervision All changes must be documented in writing and signed by the requesting party. The assigned Professional Services Project Manager will analyze these requests and generate an initial assessment as to the impact on the WO's cost and/or schedule within five business days. (i) Changes that do not affect the cost and/or schedule of the Services/Deliverables will be handled within the WO. The Project Manager may take three actions: authorize the proposed change, deny the proposed change; or request additional information. (i~) Changes that affect cost and/or schedule of the Services/Deliverables will be reported to the CUSTOMER, with the applicable pricing and schedule impact of the requested change to the WO. While present on the CUSTOMER's premises and performing Services under this Professional Services Agreement, CONSULTANT and its employees and contrators shall conform to CUSTOMER's published policies and procedures and shall abide by CUSTOMER's directions which are consistent with the WO. It is the express intention of the parties that CONSULTANT and/or its employees or contractors is an independent contractor and not an employee, agent or partner of CUSTOMER. Nothing in this Professional Services Agreement shall be interpreted as creating the relationship of employer and employee between the CONSULTANT employees or contractors and CUSTOMER. Should a CONSULTANT employee or contractor be unable to perform the scheduled Services under this Professional Services Agreement because the illness, resignation or other causes beyond CONSULTANT's control, CONSULTANT will attempt to replace such employee or contractor within a reasonable time. 18. Proprietary Information In order to perform the Services under this Agreement, CUSTOMER may, from time to time, disclose to CONSULTANT certain information respecting CUSTOMER's technicat, financial, statistical and personnel data, (hereinafter "Information"). Any such Information which is submitted in writing to CONSULTANT by the CUSTOMER and which is clearly and conspicuously marked as confidential shall be protected by CONSULTANT against unauthorized disclosure by using the same degree of care of discretion that CONSULTANT uses with similar Information which CONSULTANT does not want disclosed to third parties. However, CONSULTANT shall not be required to protect information which (i) is or becomes publicly available, (ii) is already in CONSULTANT's or its related companies' possession, {iii) is independently developed by CONSULTANT or its related companies outside the scope of this Professional Services Agreement, or (iv) is rightfully obtained from third parties. CONSULTANT's obligations under this Paragraph 6.A shall cease immediately upon return to CUSTOMER of such Information. CONSULTANT shall eot be required to protect any ideas, concepts, know-how, or techniques relating to data, electronic document processing and image processing developed or resulting from the Information or the Services provided under this Professional Services Agreement. 19. Rights in Software, Deliverables & Components Title to and ownership of all written material, including without limitation all software, including the Software, results and proceeds of the Services, the Components and any and ail deliverables created for CUSTOMER under this Professional Services Agreement, including but not limited to software, magnetic and optical disks, tapes, listings and other software documentation (collectively referred to as "Deliverables") first developed or created by CONSULTANT under this Professional Services Agreement and all proprietary rights therein shall at all times remain with CONSULTANT; however, CONSULTANT, subject to the payment by CUSTOMER of all charges related to the Services, grants to CUSTOMER a personal, non-exclusive, non-transferable, limited license to use Deliverables furnished to CUSTOMER by CONSULTANT under this Professional Services Agreement. All other Software and related Documentation furnished hereunder shall be subject to the Master Agreement and the Software License Agreement. Except and to the extent expressly provided in this section, no license or other right is hereby transferred or granted to CUSTOMER, including any ~icense by implication, estoppel or otherwise, under any patent, trade secret, trademark or copyright. 20. Employees The parties recognize that CONSULTANT's employees or contractors provided under this Professional Services Agreement may perform similar services to the Services from time to time for third parties. Accordingly, this Professional Services Agreement shall not prevent CONSULTANT from performing such similar services or restrict CONSULTANT's use of the same employees or contractors provided under this Professional Services Agreement. CUSTOMER and CONSULTANT acknowledge and agree that CONSULTANT's employees provided under this Professional Services Agreement are highly important to the success of CONSULTANT in fulfilling the intent of this Professional Services Agreement. Accordingly, CUSTOMER agrees that they will not, either directly or indirectly, solicit, divert or hire, or attempt to solicit, divert or hire any CONSULTANT employees engaged in providing the Services under this Professional Services Agreement at any time during the term of this Professional Services Agreement and for a period of twelve (12) months after completion of the Services. 21. Termination CONSULTANT shall have the right to terminate this Professional Services Agreement upon the occurrence of any of the following events (a) CUSTOMER fails to perform or observe any of its obligations to CONSULTANT under this Professional Services Agreement, including, without limitation, the timely payment of any sums due CONSULTANT, (b) CUSTOMER admits in writing its inability to pay its debts generally as they become due, or executes an assignment or similar document for the benefit of creditors, (c) subject to applicable law, the appointment of a receiver, trustee in bankruptcy or similar officer for the equity or assets of CUSTOMER, (d) there is an assignment of this Professional Services Agreement without the prior written consent of CONSULTANT; and (e) such event(s) is not remedied or cured to the reasonable satisfaction of CONSULTANT within thirty (30) days after CONSULTANT has sent written notice to CUSTOMER. Termination shall not be CONSULTANT's exclusive remedy and no such termination shall adversely affect any claim, right or action which CONSULTANT may have for damages or otherwise against CUSTOMER regarding any failure of CUSTOMER to perform or observe its obligations to CONSULTANT. 22. Proprietary Rights Certain information and materials delivered under the WO by CONSULTANT hereunder such as, without limitation, the Deliverables, are confidential and proprietary trade secrets of CONSULTANT or GOVPARTNER and are furnished solely to assist CUSTOMER under the WO. All such Confidential Information shall be so marked and CUSTOMER shall treat such information confidential and abide by the terms of such markings, and not reproduce or copy such information except as is reasonable and necessary under the WO. Nothing herein shall restrict CUSTOMER from complying with its obligations under any law requiring disclosure, but CUSTOMER shall give CONSULTANT five days prior notice before any release of Confidential Information. Work Order No. 1 Master Ag reement No. RESPI 11706 ReservePartner Implementation Fees Core Tmplementation of the following Modules: · Class Registration Description Project Management System Configuration & Testing On-Site Training & Mentoring Unit Price quantity Cost $1,000 day 5 days $5,000 $:t,O00 day 2 days $2,000 $1,000 day 3 days $3,000 Core Tmplementation Estimate $10,000 ~Does not/nclude re/mbursab/e expenses, wh/ch are b/l/ed at cost plus 15% administrative fee. [mplementation Timeline ReservePartner can be implemented in approximately 6 to 12 weeks with onsite training through each step of the project planning and implementation. The 6 to 12 week implementation will include the phases listed below; led by your Bureau Veritas Project Manager with involvement from a City Project Manager and key staff as indicated in the outline below: Review Process Requirements with City Staff Your Bureau Veritas Project Manager will go through your City procedures and prepare a document of system requirements. Tnterviews will be conducted with key staff and visits to facilities will take place to review in detail your registration and reservation processes. Review System Confiauration Reauirements Your Bureau Veritas Project Manager will discuss system requirements with key staff members to ensure that all items are covered. Your Project Manager will demonstrate how these procedures can be achieved in the ReservePartnersystem and will identify any system customizations that are required. Per review of the needs outlined in the RFP, no customizations appear to be necessary, but should additional needs surface during the implementation many customizations can be performed as part of base cost and with the base implementation schedule. More complex customizations that may be uncovered can be scoped and it will be up to City to determine if it wishes to add them to the project or simply give them to GovPartner as a future enhancement request. Set Up ReservePartnerSite Bureau Veritas will create a base ReservePartnersite for your City that includes your City logo and configuration requirements. Our technicians will begin testing to ensure your customizations are working properly and that the system is robust. City to Send Required Information Your City will be given a detailed list of items required for setup of your class catalogs and Cybersource account. Your Project Manager will also request any information or items required for your customizations including reporting requirements. Cataloq Data Entered into City Svstem Bureau Veritas will enter your first City catalog into the system, translating your paper brochure into an interactive web interface. Classes will be associated with City provided graphics and sessions set up to meet City fee requirements. All City locations, facilities and instructors will be entered into the system as well. Once this initial catalog is set up in the system, all others can be exported from the base catalog and have dates changed for use by City employees. Set up Online Credit Card/Cybersource Account via Relationship with your Merchant Bank Bureau Veritas will work with your Merchant Bank to set up your Cybersource credit card account. Online System Demonstration with City Staff Your Bureau Veritas Project Manager will demonstrate your customized system to your key staff members. This can be done for any size group. Main decision makers are requested to be at this meeting as functionality will be discussed and any process changes decided as a result of this meeting. Your Bureau Veritas Project Manager will discuss system best practices to ensure that your staff are using the system consistently, ensuring the optimal use of your system. Your system URL will be given to staff to allow them to work with your system and gain a rudimentary understanding. System Refinements Any additional items addressed during the system demonstration will be customized within the system. Testinq Our technicians will perform regression and functionality testing to ensure your system is working properly. Your u_ser guide will be customized during this period to meet any changes that were added for your system. Main Administrator (si System Trainine Your City'S main administrator(s) will be trained to: 1. Update Class Brochures 2. Create/Edit User and Student Accounts 3. Set-up and update Location and Facilities data 4. Run all Reports (including financial reports like Instructor Payroll) System Best Practices Bureau Veritas Project Manager will meet with key staff and administrators to go over any procedure questions. These identified Best Practices will be incorporated into training with all other Parks and Recreation staff members. Staff Trainino Project Manager to train all Parks and Recreation staff members on how to: :L. Register applicants 2. Process Transactions 3. Run Reports 4. Manage Facility Reservations Traininq Follow Up and Documentation City staff will be tasked with running registrations through the system prior to going live. Bureau Veritas Project Manager to provide phone and web support to reinforce training. City to Go Live Online and Internally Bureau Veritas Project Manager to be available at a City location to visit facilities and provide any last-minute training and support as system is used by staff members. Application Hosting Agreement Master Agreement No. RESP111706 This Application Hosting Agreement (the "Application Hosting Agreement") by and between Bureau Veritas North America, Inc., having its principal place of business at 11590 West Bernardo Court, San Diego, CA 92127 ("CONSULTANT") and the City of Ukiah ("CUSTOMER") with an address of 300 Seminary Avenue, Ukiah, CA 95482 is an addendum to the Master Agreement Terms and Conditions between CONSULTANT and CUSTOMER dated the 7th day of February, 2007 (the "Master Agreement"). Capitalized terms not otherwise defined herein shall have the same meaning as defined elsewhere in the Master Agreement. CUSTOMER AGREES TO iNITIAL HERE AND iN THE APPROPRIATE SPACE ON THE FACE OF THE MASTER AGREEMENT TO iNDICATE ITS iNTENTION TO HAVE THIS APPLICATION HOSTING AGREEMENT APPLY. CUSTOMER AGREES TO THE FOLLOWING ADDITIONAL TERMS AND CONDITIONS WHICH ARE iNCORPORATED iN AND MADE A PART OF THE MASTER AGREEMENT: CUSTOMER's Initials 23. Hosting Services Provided CUSTOMER is licensed to use CONSULTANT Software pursuant to an enforceable Software License Agreement between CONSULTANT and CUSTOMER (the "Software"), CONSULTANT will install and operate the host portion of the Software in CONSULTANT's host computer system (the "Host Computer System"). CONSULTANT will provide all equipment, software and services necessary for the operation and maintenance and support of the Host Computer System and the host portion of the Software. CONSULTANT may contract with third parties for all or part of such equipment, software and services. CONSULTANT reserves the right to change the configuration of the Host Computer System and the host portion of the Software and to change or delete such equipment or software at any time, but CONSULTANT shall make CUSTOMER's application compatible with such change or deletion without additional charge to CUSTOMER. CONSULTANT will provide bandwidth for communication between CUSTOMER and its web users involving the Software as provided in Exhibit B. CONSULTANT will back-up CUSTOMER's data as provided in Exhibit B. Installation and training procedures are as described pursuant to an enforceable Professional Services Agreement between CONSULTANT and CUSTOMER. If CONSULTANT is requested to provide custom modification, consulting, system integration or other services, the terms for such services shall be provided in such Professional Services Agreement. CUSTOMER shall have access to and be permitted to use the Software via Internet facilities. The communications and network interoperability requirements for Internet access are as described in Exhibit B. The Hosting Computer System shall be used by CUSTOMER only for purposes relating to CUSTOMER's own use of the Software. CUSTOMER shall have no right to assign any of its rights under this Application Hosting Agreement. CONSULTANT will not be responsible for any delays resulting from circumstances beyond its control. CONSULTANT will take reasonable precautions to guard against unauthorized access to CUSTOMER's data that is used or collected by the Software. However, CONSULTANT assumes no responsibility that the Software will be used properly. 24. Maintenance Hours of Support Availability. Payment of the standard periodic Software license fees and application hosting fees entitles CUSTOMER to Support during the Principal Period of Maintenance ("PPM"). The PPM is a nine hour continuous daily time period between the hours of 8:00 AM and 5:00 PM, local time, Monday through Friday, excluding holidays or such holidays as observed locally by CONSULTANT. All Support subsequently added shall have the same PPM Support for severe problems, as defined in the Support Order Form, will be provided outside the PPM. Scope of Support. Support includes the response to and resolution of CUSTOMER-encountered problems with the Software as reported to CONSULTANT by CUSTOMER, and maintenance and operation of the Host Computer System. Resolution of CUSTOMER-encountered problems shall, at CONSULTANT's option, consist of (1) maintenance provided through telephone or electronic support as described on the Order Form; (2) correction of any defect in the Software program that materially and adversely affects the use of the Software as described in GOVPARTNER's documentation or (3) delivery of bug fixes or workarounds limited to the current or immediate prior Software release. CONSULTANT will support licensed Software located on the Host Computer System. CONSULTANT will use commercially reasonable efforts to respond to CUSTOMER calls according to the priority level of the call described in the Order Form. CONSULTANT will resolve the CUSTOMER's call in a commercially reasonable period. Support also in.cludes the use of upgrade Software releases, as deemed appropriate by CONSULTANT, and which will be provided to CUSTOMER without additional charge. Any rendering of supplemental maintenance Support by CONSULTANT that is not provided for in the Order Form, including consulting, will be performed at CONSULTANT's discretion upon receipt of a Work Order or appropriate payment, and, if performed, will be charged to CUSTOMER at current prices and terms then in effect. C. Support Limitations. Any Support is dependent upon the use by CUSTOMER of unmodified Software (except as authorized by CONSULTANT pursuant to a Professional Services Agreement) operated in accordance with CONSULTANT's documentation. Software Support specifically excludes the following: (1) Support to a version of Software other than the current or immediate prior release; (2) efforts to restore a release of the Software beyond the current or immediate prior release; (3) efforts to restore CUSTOMER data beyond the most recent back-up. D. End of Support Life. CONSULTANT periodically announces the End of Support Life (EOSL) for Software. CONSULTANT will notify the CUSTOMER signatory or 3= 4= designee in writing or by electronic mail a minimum of one hundred and eighty (180) days prior to the Support discontinuance. After the EOSL, telephone and or web-based support limited to current available fixes will be available on a commercially reasonable efforts basis at prevailing prices. If EOSL for Software occurs within three (3) years of the date services are first provided under this Application Hosting Agreement, CONSULTANT shall refund an amount equal to the product of the license fees for the Software for which support has ended multiplied by a fraction the denominator of which is five (5) years and the numerator of which is the remainder of five (5) years minus the period for which support life was provided. CUSTOMER's Responsibilities. CUSTOMER is responsible for maintenance and installation of any common carrier equipment or communication Support related to the operation of the Software at the CUSTOMER's facilities and not furnished by CONSULTANT. CUSTOMER is also responsible for charges incurred for communication facilities at CUSTOMER's facilities, whether incurred by CUSTOMER or by CONSULTANT Support representatives while performing Support on the Software. CONSULTANT is responsible for performing Software back-ups in accordance with published documentation. CUSTOMER shall notify CONSULTANT of any Software failure. Support calls must be placed to CONSULTANT by a CONSULTANT trained contact, as listed in the CUSTOMER Authorized Contact Information Form. Software Modification. CONSULTANT and GOVPARTNER will not be responsible to CUSTOMER for loss of use of the Software or data or for any other liabilities arising from alterations, additions, adjustments or repairs which are made to the Software by third parties other than authorized representatives of CONSULTANT, or at the direction of CONSULTANT. CONSULTANT reserves the right to terminate this Agreement upon written notice to CUSTOMER if any such alteration, addition, adjustment or repair adversely affects CONSULTANT's ability to render maintenance Support to the Software. 5. Term. The initial term of this Application Hosting Agreement shall commence the date the Master Agreement is signed and shall continue until five (5) years after the date of successful implementation of the host portion of the Software, unless a different term is stated in Exhibit A of the Master Agreement. Thereafter, unless CUSTOMER notifies CONSULTANT in writing at least sixty (60) days in advance of each scheduled expiration date that CUSTOMER elects not to renew, this Application Hosting Agreement shall automatically renew for a period of twelve months. Notwithstanding the preceding, CONSULTANT may terminate by giving at least sixty (60) days written notice that CONSULTANT cannot meet the requirements of Exhibit B, and CUSTOMER may terminate for convenience the service of any hosted application upon thirty days written notice. Notwithstanding anything to the contrary in this Section 5, this Application Hosting Agreement shall terminate immediately upon termination of the Software License Agreement. Fees CUSTOMER agrees to pay those fees specified in Exhibit A of the Master Agreement. CUSTOMER will be invoiced monthly. All invoices are due and payable in full within thir[y (30) days. Invoices not paid when due will have a 1.5 percent per month interest charge or the highest lawful rate, whichever is less, assessed against the unpaid balance from the date of the invoice until the date of payment. CUSTOMER shall pay all costs involved in collecting its overdue accounts including reasonable attorneys' fees. All charges and rates are exclusi~'e of all sales, use and like taxes. Such taxes are the responsibility of the CUSTOMER and will be billed to the CUSTOMER as a separate line item on each invoice. 7. Credit Card Services The attached CyberSource Managed Commerce Provider Agreement (the "Credit Card Agreement") for the purpose of facilitating credit card processing by the CUSTOMER regarding the use of the Software by CUSTOMER's web users. CONSULTANT and GOVPARTNER grant CUSTOMER the rights of a "Customer" as provided within that Credit Card Agreement. This grant of rights shall continue until the sooner of the termination of the Credit Card Agreement or the termination of this Web Site Hosting Agreement. In the event of termination of the Credit Card Agreement, CONSULTANT and GOVPARTNER shall obtain similar services from another source, the terms of which agreement with another source shall apply to CUSTOMER, Control and Supervision CUSTOMER is solely responsible for any liability arising out of or related to the web application. CUSTOMER agrees to indemnify, defend, and hold harmless CONSULTANT and GOVPARTNER and their employees and agents from and against any and all liabilities, losses, damages, costs, and expenses, including reasonable attorneys' fees and experts' fees associated with any claim or action against CONSULTANT and GOVPARTNER related to or arising out of the web site. This indemnification will survive termination of this Application Hosting Agreement. Disclaimer of Warranty THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY AGAINST INFRINGEMENT, WITH RESPECT TO THE SERVICES OR DELIVERABLES FURNISHED UNDER THIS AGREEMENT. CONSULTANT DISCLAIMS ANY IMPLIED WARRANTIES. CONSULTANT DOES NOT WARRANT THE RESULT OF ANY SERVICES OR DELIVERABLES NOR THAT THE SERVICES OR DELIVERABLES WILL MEET CUSTOMER'S REQUIREMENTS. Exhibit B Bandwidth: CUSTOMER will be provided with the bandwidth from a datacenter necessary for adequate responsiveness for the following application(s): CUSTOMER Software and Equipment: Hardware Any workstation connected to the Internet that is capable of supporting a W3.org compliant HTML 3.2 or 4.0 browser. Computers that are five years or older may process information so slowly and may not produce satisfactory results. Software Any W3.org (World Wide Web Consortium) HTML 3.2 or 4.0 compliant browser for access by public. CUSTOMER staffmust use Microsoft Internet Explorer version 5 or later. In order to maintain session state cookies must be enabled CUSTOMER'S communications and network interoperability requirements: Network Software Environment Industry standard network software environment that utilizes TCP/IP networking protocol, LAN connections to the Internet, and dial-up connections for public access. CUSTOMER Internet access to hosted applications should provide for a dedicated, "always on", connection at 128kb/s or higher data rate. Any CUSTOMER firewall security device to be configured to permit two-way communication between hosted applications at the data center and the CUSTOMER's server running the database. CONSULTANT Backup: CONSULTANT shall perform a full back-up of CUSTOMER's data files on a weekly basis and an incremental back-up all other working days of the week. An incremental back-up is back-up of all files that have changed since the previous back- up. One copy &the back-up is retained for thirty days before it is recycled. CONSULTANT will use reasonable efforts to restore CUSTOMER's files from available back-up tapes during the PPM. CUSTOMER Support Subscription Order Form CUSTOMER: City of Ukiah CUSTOMER CONTACT: Maya Simerson CUSTOMER Phone: 707-463-6237 CUSTOMER Fax: CUSTOMER E-mail Address: mayaa@cityofukiah.com Address: 300 Seminary Avenue City, State or Province, Zip Code or Postal Code: Ukiah, CA 95482 Description Response Time Means of Contact Support Level 1: Severe problems rendering software application substantially inoperable Level 2: Problems significantly affecting operability, but which do not render application inoperable Level 3: Problems preventing application from functioning as designed, but which do not significantly affect operability or render application substantially inoperable Level 4: Less critical problems for which an acceptable work around is developed Response** within 4 hours, without regard to PPM Response** within 8 hours Response** within 24 hours Will be considered and addressed as part of normal product enhancement cycle Telephone, e- mail, pager/mobile phone Telephone, e- mail Telephone, e- mail Telephone, e- mail, letter **Response means begin actively working on solution CUSTOMER Authorized Contact Information Form General Information CUSTOMER: E-mail Address: Primary Technical Contact: Phone: Fax: Address: City, State or Province: Zip Code or Postal Code: Country: Authorized Contacts must be CONSULTANT trained for your installed product configuration. Validation of training may be required by CONSULTANT. Only the Trained Contacts listed below or as modified in writing by the CUSTOMER will be eligible for telephone or web support. YOUR COMPLETE E-~4~IL ADDRESS IS NECESSARY FOR THIS SUPPORT. Trained Contact Name: Title: Phone Number: Fax Number: E-mail or Internet Addr: Pager Number: Trained Contact Name: Title: Phone Number: Fax Number: E-mail or Internet Addr: Pager Number: Trained Contact Name: Title: Phone Number: Fax Number: E-mail or Internet Addr: Pager Number: Attachment ReservePartner Proposal for City of Ukiah Parks & Recreation Submitted by: Bureau Veritas 2001 First Street Ste 102 Santa Ana, CA 92705 Contact: Kevin Vincent Business Development Manager e-Government Specialist office: g51-677-5026 kevin.vincent@us.bu reauveritas.com Executive Summary .................................................................................................................... 3 Company Overview ..................................................................................................................... 4 System Functionality ................................................................................................................... 6 Project Fees ........................................................... ~i ............................................................... 13 ReservePartnerSoftware Fees ............................................................................................... 13 ReservePartnerImplementation Fees ..................................................................................... 14 Implementation Timeline .......................................................................................................... 15 ReservePartner Proposal Page 2 of 16 Executive Summary Dear Maya, We appreciate the opportunity to present the City of Ukiah with ReservePa~ner, a fully web-based class registration and facility' reservation solution..me proposed solution consists~f GovPartner's off-the-shelf software system implemented by Bureau Veritas, a respected municipal services firm. 'mis proven combination ensures a successful implementation and mitigates any cultural impacts that tend to derail technology projects. A Comprehensive~ Web-Based Solution to Capture and Manage Registration for Classes and Facility Reservations. 'me ReservePartnersolution will allow City staff the ability to easily manage all class catalogs, class registrations, user profiles, payments to instructors, facility scheduling, etc. The public will have the ability to register for classes, or reserve fadlities via the City website. Because ReservePartneris 100% web-based, authorized City users can interface with the system from any live lntemet connection - including using wireless devices, from City Hall, or anywhere they have access to the lnternet. Proven Best PracUces to Deliver Customization and Reliability. The City and your customers can rely on this solution. With over 90 successful e-Government projects, our successful track record sets us apart. We provide a state-of-the-art system with the experience and capability to repeatedly deploy it successfully. Our implementation process is coordinated and completed by a seasoned consultant. Your consultant will mold the system to your business processes while incorporating industry standards and best practices..mis hands-on approach ensures that your system ultimately reflects your culture and your way of doing business. We're not done until our clients are satisfied and staff is comfortable with the solution. A Cost-Effective and Trusted Software Solution..me ReservePartner system was originally developed by the City of Sunnyvale who awarded the software code to GovPartner in 2000 in a competitive review process. 'me system has recently been upgraded to the Microsoffc .NET development platform and is now 100% web-based. Our pricing is flexible and is based upon which modules the City chooses to adopt. We can provide a completely hosted solution or, the City can host the system internally. Some benefits of our fee structure include: · Our fees are based on population. 'mis allows municipalities with constrained budgets to still be able to implement a comprehensive, enterprise solution. · We do not have license pools. 'me City will receive an enterprise license to each module purchased. · We do not charge any convenience fees or other transaction fees to the public for purchasing online. Utilizing the Latest Technology in Software InfrastruCture. ReservePartneris built on the Microso~c .NET platform, which is inherenUy robust in design and allows for advanced functionality. 'me system capitalizes on industry best practices related to connectivity, application interface, graphical presentation, and security with minimal proprietary architecture, 'me .NET platform also provides for a hosted system that can leverage web services and other advanced technologies for integrating with existing or emerging infrastructure and systems. We look forward to working in partnership with the City of Ukiah to implement a robust solution and provide proactive technical support to your staff and constituents. Sincerely, Kevin Vincent Business Development Manager ReservePartner Proposal Page 3 of 16 Company Overview Bureau Veritas (www.us.bureauveritas.com) is a multinational services firm with offices in over 140 countries with over 18,000 employees. Here in the United States Bureau Veritas has acquired municipal services consulting firms that exclusively serve the public sector. The combined forces of Bureau Veritas and LPZA have served well o~r 800 public agencies in 30+ years with services that include: Building Safety, Civil Engineering, Community Planning, GIS, Program Management, GASB 34 Compliance, Construction Management, and much more. Our strength lies in the fact that, due to our municipal focus, we have an intimate understanding of the scope of services required for the projects we plan, design and manage for cities and counties. The ReservePartnersystem is grounded in the knowledge and experience that Bureau VerJtas provides. Our consultants have a clear understanding of the processes and long-term business goals of municipalities. Having the e- Government solutions implemented by Bureau Veritas rather than a typical software firm will allow the City to benefit from the commitment and understanding of a local professional. We live and work in and around the communities we serve. We serve Northern California from our offices in Pleasanton, GovPartner (www.qovpartner.com) is an e-Government software company that was created by Bureau Veritas in 1999 to provide software solutions that work for municipalities. They focus on delivering common sense and cost-effective solutions exdusively to the municipal sector. Partnerships with the City of Sunnyvale, Microsoft and ICMA (International City/County Management Association) allow GovPartner to deliver the only City-developed/City-testad suite of e-Government solutions. Because a software system alone cannot ensure that your requirements are effectively managed, our implementation includes consulting assistance to help the City configure the software according to existing or newly developed business processes and procedures. We approach every e-Government implementation project as a partnership with the local government agency and forgo the standard, one-size-fits-all software approach. We instead deliver systems that are tailored to reflect the City's policies, staff processes and unique interface with the community. We first review and refine your processes then configure the software accordingly. Your e-Government Consultant with government process and technology skills will be committed throughout the entire life of the project and will work hand-imhand with City staff and officials to help ensure the program objectives are met - the intangible measurements of success such as building consensus among staff for a cohesive solution and assudng all departments their management objectives will be accomplished. This consultant will continue to support your implementation by providing ongoing technical and process related support. Please find on the following page information about the proposed Lake Forest e-Government team for the purposes of this project. We believe/t Js this parteer~hJp approach that Js responsible for our repeated success/ ~ovPartner focuses entirely on developing and enhancing software and Bureau VerJtes focuses on implementing and servicing our ciients, By relying on our core competencies we deliver best-Jn-ciaes app/icotions and ReservePartner Proposal Page 4 of 16 ReservePartner ReservePartner is a web-based system U~at allows agencies t~'manage their registration and reservation processes while the public can sign up and pay for classes or facilities via the agency's website. As a fully web-based system, ReservePartneris the most advanced and user-friendly hosted sofoNare solution for Parks and Recreation / Community Services class registrations and facility reservations. ReservePartneris also the only online class registration system that allows staff and the public to use the same online interface for registrations - with different levels of access and employee-specific data for staff. ReservePad~eris built on the latest Microsoft .NET platform, which is inherenUy robust in design and allows for advanced functionality. The system capitalizes on industry best practices related to connectivity, application interface, graphical presentation, and security with minimal proprietary architecture. Microsoff's .NET platform utilizes the latest technology for superior [nternet-based architecture, providing a number of advantages to easily deploy robust web and wireless functionality for remote users. The .NET platform also provides for a complete hosted system that can leverage web services and other advanced technologies for integrating with existing or emerging infrastructure and systems. Reviewing the class catalogue and registering for s~sions is simple[ Sample ReservePartnercheck-out screen for easy processing by staff - payments by check, cash or credit-card. ReservePartner Proposal Page 5 of 16 System Functionality ReservePartnercontains powerful yet flexible Class Registration and Facility Reservation functionality. The following is some of the functionality that the system provides. · ReservePartnercan be used for registrations and reservations over the counter and via phone, mail or fax. Additionally, members of the public have the option to self-register online through the City's website. · ReservePartnerwill not require the City to store any credit-card information, nor will GovPartner collect fees on the City's behalf. All revenues go directly into the City's accounts. ReservePartnercredit-card transactions are verified just as they are on the most advanced e-Commerce systems without the City having to manage this process. Online credit<ard processing capabilities are accessible for both staff and the public. · ReservePartneris completely web-based and in most cases GovPartner hosts the system for our clients. · ReservePartnercan be configured to collaborate with and post data to the City's finance system. ReservePartnerwi~~a~~~wsta~t~easi~ycreate~manageandedit~n~inerecreati~nbrochures~ The system allows staff to post and edit information, as well as manage details for each class (set rules for the amount of enrollees per class, location, instructor information, fees, age requirements, etc). · Staff can easily create catalogues for an upcoming season without the "in-process" catalogs being accessible via the [ntemet until the City is ready to publish it. · Staff can also easily duplicate / copy catalogs in the system, adding or changing data as necessary for each new season. ReservePartnerallows for more than one active catalog to be published simultaneously. Staff can upload and display graphics and maps for classes on the web site. Powerful I~la~ Enrollment functionality will allow for registration of multiple ~udents for multiple se~ion$ all in one ~ran~action. (see image) ReserveParb~erwill track revenue data for each class, including discount, scholarships and refund information. ReservePartner Proposal Page 6 of 16 R~.~ervePa~ne~' allows £or easy creation and edJUng of Class ~e~Jon #e~Jl$ (s~e image) The system will manage informatLon specific to instructors - create mailing labels and other data sorts for all instructors in the system, or allow for data entry of information specific to each instructor in the system. Through ReservePartner, instructors can be assigned a username and password to allow them the ability to track in real-time the status of enrollment for their classes. ReservePartnerwill allow the City to create and manage user profiles for people who register for dasses in person, or over the [nternet. Staff will use the same online process as the public to create user profiles, allowing Community Service employees the ability to answer questions from the public about this function to provide for a high level of customer service on all fronts. The system crea~es automatic updates when c/ass becomes ful~ ~ ~e ~Jon ~ate~ or ~a~ ~en ~n~ or ~mplet~. ~uch u~at~ am ~fl~ in ~l-~me for ~ =taff and ~e public. ~ image~ ReservePartnerwill verify specific information for each class registration in real-time (i.e. seat avaiJability for a class, age requirements, valid credit-card funds, etc.) for staff registering people in person or over the phone, as well as for the public registering through the City website. Adult Tennis ReservePartnerconsists of a simple point-and click interface for both staff and the public. Various help items within the "front-end" for the public and the "back-end" for staff make it a user-friendly system. ReservePartner Proposal Page 7 of 16 The system allows for easy creation of account~ by staff or online by t~e public. (see image) ReservePartneris also a "smart" system that reminds users of information they need to include or when a data entry error has been made, or that lets users know if a registration cannot be completed due to an age requirement that is not met, an invalid credit-card, etc. ReservePartnerwill automatically email the public as a reminder for a class registration or to provide an update on their reqgest to reserve a facility. ~_. Online registrations through Re~ervePart~er will include b~e Ci~ waiver ac~ptan~ a~ pa~ of ~e online or in-~n p~e=. (s~ image) · ReservePartnerprovides administrative users with comprehensive class catalog management capabilities. · ReservePartnerwill allow the City to manage scholarship percentages as well as automatically apply a discount or percent reduction of the regular fee through its fee intake capabilities. With ReservePartner, staff can apply an automatic discount for a second child enrolled in summer camp. ReservePartner Proposal Page 8 of 16 · An Instructor rate profile will be included in the ReservePartnerimplementation to automatically calculate instructor payments and create an instructor payroll report. · Our implementation will include functionality to allow fees to be paid in full or in installments. The system will also track any outstanding fees. · Staff will determine resident and non-resident add-on fees (or discounts) through ReservePartner, as well automatically calculate this into an online registration fee. · Implementation includes import of the City's catalog to the new system to ensure a smooth implementation. Staff will be trained to create future catalogs and edit any necessary information in the catalog GovPartner creates. ReservePartnerdoes not impose "convenience fees" or "service charges". This is not the GovPartner model for service delivery. Absolutely no fees will be added or passed on to the registrant through the City's online registration system, ReservePartner. ReservePartnerwill allow non-technical staff to create targeted "campaigns" or communication on the City website to promote specific Community Services activities or facilitate special announcements. Such messages are described as "¢~tnpaJgn$' wJthJn t~e and o~er a ~wedul tool ~r ~;et~ up-~-~mJnute ~mmunJ~Uon fo ReservePartnerwill provide the ability for the public to search classes and facilities on the City website. This search function will be automatically updated as information is added or changed by staff. The search function also allows website users to search for classes using a variety of criteria such as by days offered, current availability, by facility, by subject or key word, etc. Drop Student / Credit / Refund / Transfer functionality is part of dass registrations. Fee Override: For classes where fees can fluctuate, this feature will allow staff to overwrite the class fee amount (must be set for each class session). Fee can be made larger or smaller (even zero). ReservePartnerwill provide a seamless link from the City's website so that the public does not feel they are leaving the City's website to register for classes or reserve facilities. ReservePartneris modified to include the City's logo, color scheme, desired font and descriptive copy (i.e. on the "Welcome" page for the online registration system). ReservePartnerwifl not include advertising or any other promotional information that is not placed there by the ReservePartnerwill link City parks and facilities to online maps with driving directions. ReservePartner Proposal Page 9 of 16 · ReservePartnerwill generate class sign-in sheets / rosters which can serve as information presented within the system (pop-up window) or as a report. · 'fne system allows for automatic download of daily activities, rosters, instructor payment reports, labels, quarterly reports into NS Word or Excel. · ReservePartnerwill provide reporting capabilities on all daily financial transactions, including a breakout of the payment method. ReservePartner will keep a calendar of all FacJlJ§e~ in the system noting when a facility is reserved for private use or for a cla=. (see image) For Facility Reservations, the system allows staff to manage bloc~ of time that a facility can be reserved, including amount of time necessary between reservations for clean-up of the room or other needs. · ReserveParther allows staff to create questions related to a facility for rental ReservePartner Proposal Page 10 of 16 · Partial payments can be applied direddy to individual classes in a multiple order. This allows activities like camp and pro-school payments to be applied manually by staff to individual classes in an order. Tf a class is dropped from the order, staff can either payout the amount to the customer, or reassign the amount collected to the classes manually. · Authorized users can override amount due to instructors and track percentages to pay to each instructor for a class. An audit field is included for each fee overdde to ensure dat~.integrity and accountability. The system records who made the amount due edit. A summary report lists each amount paid with the date paid, a total paid to date, and the odginal total amount due. ReserveParf~er will track all registrations per c/Jent~ as well as afl financial ac'dvity including payments, cre~it~, ou~tanding balance, refunds, etc. (see image~) Home Purchase History ReservePartner Proposal Page 11 of 16 Point of sale is available via online credit-card payments for classes and facilities, and an online Ad-Hoc Catalog- Builder can be used to create custom online forms to allow for sale of any other items the City requires (merchandise, concessions, equipment, otc). In addition to providing built-in "canned" reports, the system includes a query-builder that can allow staff the ability to create reports and export data into various file formats for further analysis. Below are some of the reports the system will offer: 1. Daily Cash Report 2. Daily Fadlity Cash Report 3. Download Cash Report Data 4. Summary Cash Report 5. Revenue Report 6. Payouts Report 7. Payment Transfers Report 8. Registration Summary ReporL 9. Print Labels 10. Class Rosters By Instructor 11. Class Rosters 8y Class 12. Payroll Report 13. Payroll Summary Report 14. Quarterly Reports 15. Enrollments 8y Catalog Reports 16. Enrollments For User Report 17. Belance Due Report 18. Payouts Available Report 19, Held Deposits Report 20. Population Report ReservePartner Reservation System Daily Cash Report ReservePartner Reservation System Enrollment Summary Report Kids Program Page 12 of 16 Project Fcr. s Pricing based on population up to 20,000 Reduced Pricing We would like to extend the City of Ukiah Community Services reduced pricing for the ReservePartner system hosting fees. We have been authorized to reduce pricing for prospective clients to make our solution more attractive. In return we hope that the City will be willing to function as a GovPartner reference once the solution is in place. This typically involves taking occasional phone calls, e-mails and possibly accommodating a site visit for qualified potential clients. ReservePartner Software Fees GovPartner Hosted ReservePartnerSolution Class Registration Module Facility Reservation Module Promotional Hosting Fees ............................... $325 per month Standard Hosting Fees ........................................................................... $750 per month Software Hosting covers the following: · Unlimited concurrent software license for both staff and online customers · Hosting of the ReservePartnersystem at GovPartner data center · Software maintenance including: updates, upgrades, ongoing enhancements, and technical/user support via phone, e-mail, and Web Conferencing. City specific reports and customizations .................................... $2,500 Scholarship Report - The City would like to be able to produce a report that lists all registrations where a scholarship and or discount was applied. · This will be a new custom report, We witl create the report with input from the City. Track T-Shirt sizes - The City would like to be able to add a field for T-Shirt size for each person registering for a League (which would be set up as a Class and Session in the system). Each registrant will provide a T- Shirt size to complete the registration. This is a dass specific entity and not tied to the user profile. · We will add a couple of custom fields to the reservation system that could capture this information. The City will be provided with two dropdowns and two text fields. When a dass is setup staff could set these up too, and also make them required. Ability to add notes/comments/request fo a registration - The City would like to allow users a text field where they can request a coach, to be placed on a specific team, or simply add comments. · We will add a couple of custom fields to the reservation system that could capture this information. The City will be provided with two dropdowns and two text fields. When a class is setup staff could set these up too, and also make them required. ReservePartner Proposal Page :13 of 16 Early/Late Registration -The City would like to allow two different registretion fees based on and early and normal registration period, · We will provide this capability to allow staff to set up two registration fees based on registration dates. ReservePartnerT[mplementation Fees Core Implementation of the following Modules: · Class Registration Description Unit Price Quantity Cost Project Management $1,000 day 5 days $5,000 System Configuration & Testing $1,000 day 2 days $2,000 On-Site Training & Mentoring $1,000 day 3 days $3,000 Core Tmplementation Estimate $10,000 *Does not/nc/ude re/mbursab/e expenses, wh/ch are b///ed at co¢t p/us 15% adm/n/$tra~ve fee. ReservePartner Proposal Page 14 of 16 Implementation Timeline ReservePart~ercan be implemented in approximately ~ to 12 wee/~s with onsite training through each step of the project planning and implementation. The 6 to 12 week implementation will include the phases listed below; led by your Bureau Veritas Project Manager with involvement from a QL-y Project Manager and key staff as indicated in the outline below: R~vi~w Process I~,,irements with City Staff Your Bureau Veritas Project Manager will go through your CEy procedures and prepare a document of system requirements, [nterviews will be conducted with key staff and visits to facilities will take place to review in detail your registration and reservation processes. Review System Confieuration Reouirements Your Bureau Veritas Project Manager will discuss system requirements with key staff members to ensure that all items are covered. Your Project Manager will demonstrate how these procedures can be achieved in the ReserveParfner system and will identify any system customizations that are required. Per review of the needs outlined in the RFP, no customizations appear to be necessary, but should additional needs surface during the implementation many customizations can be performed as part of base cost and with the base implementation schedule. More complex customizations that may be uncovered can be scoped and it will be up to City to determine if it wishes to add them to the project or simply give them to GovPartner as a future enhancement request. ~ UP R~servePartnerSita Bureau Veritas will create a base ReservePartnersita for your City that indudes your City logo and configuration requirements, Our technicians will begin testing to ensure your customizations are working properly and that the system is robust. City to Send Reouired TnformaUon Your City will be given a detailed list of items required for setup of your class catalogs and Cybersource account. Your Project Manager will also request any information or items required for your customizations including reporting requirements. Cataloq Data Entered into City System Bureau Veritas will enter your first City catalog into the system, translating your paper brochure into an interactive web interface. Classes will be associated with City provided graphics and sessions set up to meet City fee requirements. All City locations, facilities and instructors will be entered into the system as well. Once this initial catalog is set up in the system, all others can be exported from the base catalog and have dates changed for use by City employees. Set up Online Credit CardlCvbersource Account via Relationshin with your Merchant Bank Bureau Veritas will work with your Merchant Bank to set up your Cybersource credit card account. On~ine System DemonstraUon with City Staff Your Bureau Veritas Project Manager will demonstrate your customized system to your key staff members. This can be done for any size group. Main decision makers are requested to be at this meeting as functionality will be discussed and any process changes decided as a result of this meeting. Your Bureau Veritas Project Manager will discuss system best practices to ensure that your staff are using the system consistently, ensuring the optimal use of your system. Your system URL will be given to staff to allow them to work with your system and gain a rudimentary understanding. sv~;i~m R~inements Any additional items addressed during the system demonstration will be customized within the system, Testinn Our technicians will perform regression and functionality testing to ensure your system is working properly. Your user guide will be customized during this period to meet any changes that were added for your system. ReservePartner Proposal Page 15 of 16 Main Administrator (s~ ~vstem Trainine Your City's main administrator(s) will be trained to: 1. Update Class Brochures 2. Create/Edit User and Student Accounts 3. Set-up and update Location and Facilities data 4. Run all Reports (including financial reports like Instructor Payroll) m Pra i Bureau Veritas Project Manager will meet with key staff and administrators to go over any procedure questions. These identified Best Practices will be incorporated into training with all other Parks and Recreation staff members, Staff Traininn Project Manager to train all Parks and Recreation staff members on how to: 1, Register applicants 2. Process Transactions 3. Run Reports 4. Manage Facility Reservations Tr~inina Follow UD and Documentation City staff will be tasked with running registrations through the system prior to going live. Bureau Veritas Project Manager to provide phone and web support to reinforce training. City to Go Live Online and Internally Bureau Veritas Project Manager to be available at a City location to visit facilities and provide any last-minute training and support as system is used by staff members. ReservePartner Proposal Page 16 of 16 ITEM NO: 1 ~.¢ MEETING DATE: April 4, 2007 AGENDA SUMMARY REPORT SUBJECT: REVIEW AND PROVIDE DIRECTION REGARDING UKIAH CAMPAIGN REFORM ACT SUMMARY: Under Section Two of the ordinance adopting the Ukiah Campaign Reform Act (Ukiah City Code ("UCC") §§ 2075-2087), the Act is subject to review by the City Council within six months after the November 2006 election to determine whether any changes should be made. This item has been placed on the agenda to give the City Council the opportunity to conduct that review and give direction to staff regarding whether any changes should be made to the Act. Based on its experience in administering the ordinance during the November 2006 election, staff has the following comments on the Act. 1. The City Clerk reports that Section 2082 imposed a substantial burden on her office. That section requires each candidate and controlled committee to file a third pre- election Campaign Disclosure Statement (Form 460) for the period from the end of the second pre-election statement and ending at 11:59 p.m. on the fourth business day preceding election day. It requires the City Clerk to post these statements to the City's RECOMMENDED ACTION: Review application of the Ukiah Campaign Reform Act during November 2006 election and give direction to staff on proposed changes to the Act. ALTERNATIVE COUNCIL POLICY OPTIONS: N/A Citizens Advised: Requested by: Prepared by: Coordinated with: Attachments: N/A City Council David J. Rapport, City Attorney Gall Petersen, City Clerk and Candace Horsley, City Manager Attachment 1 - Ukiah Campaign Reform Act Attachment 2- Amendment to Section 2081 of the Act Approved: Candace Horsley, Ci~Manager Agenda Summary Report March 7, 2007, City Council Meeting Page 2 website by 5:00 p.m. of the day received, or as soon thereafter as may be practicable. In addition, each candidate or City committee is required to file within twenty-four hours of its receipt, a late contributions report with the City Clerk for all contributions of $200.00 or more received less than four days before the election up until midnight of the date of the election. The City Clerk is required to post each of these reports to the City's website within four hours of the filing. The City Clerk reports that in order to process these filings, her office must remove personal information from the form by copying the original and whitening out the personal information. Staff must then scan the document, convert it to a pdf format, and electronically e-mail the completed Form 460 to the City's web master. On days when the form is submitted at the end of the "deadline" day (between 4 p.m. and 5 p.m.), Staff contacts the web master via telephone as well as e-mail to ensure that the documents are posted as soon as possible. Staff time to go through the above process is between 45 minutes and one hour, per candidate per filing. In the last election there were six candidates. 2. Under Section 2081 .D.3, the City pays for one-half the cost of the candidate's statement of qualifications as printed in the ballot pamphlet for voluntary spending limit candidates. During the election a question arose as to whether that payment represented a reportable campaign contribution and whether it should count toward the voluntary spending limit. The City Attorney expressed the opinion that it was not reportable and it should not count against the spending limit. As to whether it should be reported, the City Attorney based his opinion on the Political Reform Act, which provides that a contribution need not be reported, if it is made by "... a state, local, or federal governmental agency or by a nonprofit organization that is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code." (Gov't Code Sec. 82015(b)(2)(B)(ii).) Since this is a payment by the City, it is exempt from reporting under the Political Reform Act. As to whether it counts against the limit, the City Attorney based his opinion on the probable intent of the City Council, which provided this payment as a benefit for candidates who agree to the voluntary spending limit. It seemed inconsistent with that intent to count this subsidy toward the limit. However, since this is largely a question of intent, the City Council may want to clarify its intent by expressly providing that the monetary value of the benefits provided under the Act to voluntary spending limit candidates are not reportable under the Act and do not count as spending in computing the voluntary spending limit. 3. Under Section 2081.D.7, upon payment by the candidate or committee of the actual costs thereof, the candidate or committee may post on the City's website: a. Up to a 500 word statement along with the Candidate's picture. b. An additional 500 word statement, if an opposing candidate or committee rejects the voluntary spending limit. Agenda Summary Report Page 3 March 7, 2007, City Council Meeting This provision doesn't address when a candidate or committee may post these statements to the website. A question also arose during the last election as to whether the 500 words for each statement could be cumulated, so that, for example, a voluntary spending limit candidate could post an initial statement of 200 words and an additional statement of 700 words. The Council may want to provide a deadline for submitting the statements for posting and to clarify whether the 500 word limit applies to each statement separately or whether a candidate can file two statements not exceeding a total of 1000 words or even one statement up to 1000 words. In addition to these issues, the City Council should consider any other concerns it may have with the ordinance and provide staff with direction. ORDINANCE NO. 1080 ORDINANCE OF THE CiTY COUNCIL OF THE CITY OF UKIAH ADDING CHAPTER 14, ENTITLED, "UKIAH CAMPAIGN REFORM ACT," TO DIVISION 1 OF THE UKIAH CITY CODE The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. CAMPAIGN REFORM ACT A new Chapter 14, entitled, "Ukiah Campaign Reform Act," is hereby added to the Ukiah City Code to read as follows. CHAPTER14 Uklah Campaign Reform Act Sections 2075 2076 2077 2078 2079 2080 2081 2082 2083 2084 2085 2086 2087 Title Purpose Relation to Political Reform Act of 1974 Definitions Campaign Contribution Limitations Election Cycles Voluntary Spending Limits Additional Disclosure Requirement Deadline for Debt Retirement Return of Contributions from Anonymous Donors Disbursement of Unexpended Campaign Funds Duties of the City Clerk Enforcement and Penalties §2075 TITLE: This Chapter shall be known and may be cited as "The Ukiah Campaign Reform ACt." §2076 PURPOSE: The City Council declares that the purposes of this Chapter are: A. To prevent corruption and the appearance of corruption of the political process by adopting realistic and enforceable campaign contribution limits. B. To supplement the requirements of state law with regard to the reporting of campaign contributions and expenditures in order to provide important additional information to the voters in municipal elections about the contributions to political campaigns in the City C. To establish and encourage the acceptance of voluntary campaign spending limits in order to reduce the influence of money in municipal elections and to increase participation in the political process. §2077 RELATION TO POLITICAL REFORM ACT OF 1974: This Chapter is intended to supplement the Political Reform Act of 1974. Unless a word or term is specifically defined in this Chapter, or the contrary is stated or clearly appears from the context, words and terms used herein shall have the same meaning as defined or used in Title 9 of the California Government Code, in which the Political Reform Act of 1974 is codified, and as supplemented by the Regulations of the Fair Political Practices Commission as set forth in Title 2, Division 6 of the California Code of Regulation, as the same may be, from time to time, amended. Among the terms defined in Political Reform Act (see Chapter 2, Title 9 of the Government Code, commencing with Section 82000) and used throughout this Chapter are "commission," "contribution," "expenditure," "independent expenditure" and "person 2 §2078 DEFINITIONS: As used in this Chapter the following words shall have the following meaning, unless the context clearly requires a different meaning. A. "Ballot measure" means a measure on the ballot in a City Election for adoption in the City only, whether by initiative, referendum or by the city council. B. "Campaign Expenditure" means an expenditure for election-related activities for both Candidates and ballot measures, which include, but are not limited to, the following: (1) Communications that contain express advocacy of the nomination or election of a candidate or the qualification or approval of a ballot measure, or the defeat of a candidate or ballot measure. (2) Communications that contain reference to the candidate's qualifications, candidacy, election campaign, or similar references with respect to the candidate's opponent or a ballot measure. (3) Solicitation of contributions to the candidate or to third persons for use in support of the candidate or in opposition to his or her opponent, and similar solicitations for or in opposition to a ballot measure. (4) Arranging, coordinating, developing, writing, distributing, preparing, or planning of any communication or activ'~ described in clauses (1), (2), or (3), above. A. No person shall make and no Candidate or City Committee shall solicit or accept any contribution which will cause the total contributions for Campaign Expenditures from any person to that Candidate or committee to exceed $200.00 during any Election Cycle, except as provided in Section 2081. B. The limits in subsection A, above shall also apply to any person who makes and any City Committee which solicits or accepts contributions for the purpose of making expenditures in support of or opposition to the recall of a candidate or to the election of any candidate to succeed the candidate who is the subject of a recall, except as provided in Section 2081. (3. All contributions made by any person or solicited or accepted by any Candidate or City Committee during a special election cycle shall be attributed to that election cycle and not to any other election cycle that may overlap. D. The provisions of this section shall not apply to contributions by a Candidate or the Candidate's spouse to the Candidate's own Controlled Committee. E. Contributions by a married person shall be treated as the separate contributions cf such person and shall not be aggregated with any contributions of the spouse of such person. F. Contributions by children under 18 years of age shall be treated as contributions by their parent(s) or legal guardian(s), and shall be attributed one- half to each parent or guardian unless only one parent or guardian has legal custody in which case any such contributions shall be attributed solely to the custodial parent or guardian. G. The contribution limits of this section apply to loans or extensions of credit to the Candidate or City Committee, except as provided in Government Code Section 85307. §2080: ELECTION CYCLES: A. General Elections. For purposes of any general election, the Election Cycle shall commence on January 1 of the year in which a City Election will occur and end on December 31 of that year. B. Special Elections. For purposes of any special election, the election cycle shall mean the period commencing on the date a special election is called by the city council and ending on the sixtieth day following said special election, C. Recall Elections. For purposes of any recall election, the election cycle shall mean the period commencing on the earlier of the date a City Committee in support of a recall election files its statement of organization pursuant to Government Code Section 84101, or the date the notice of intention is served 4 pursuant to Elections Code Section 11021 or published pursuant to Elections Code Section 11022 (whichever occurs first), and ending on the sixtieth day following the first to occur of any of the following: 1. The time provided by law for the gathering of signatures on recall petitions expires without sufficient recall petition signatures having been filed with the City Clerk to require a recall election; 2, All committees formed in support of the recall have been terminated pursuant to the provisions of the Political Reform Act; 3. The date the recall election is held. §2081: VOLUNTARY SPENDING LIMIT:A Candidate or City Committee may elect to comply with the voluntary spending limits as set forth in this Section 2081. A. A Candidate or City Committee which voluntarily accepts expenditure limits may not make Campaign Expenditures in excess of the limits set forth in subsection C, below. Campaign Expenditures by a Candidate and his or her Controlled Committee shall be aggregated. B. Each Candidate and each City Committee shall indicate on a form provided by the City Clerk his, her or its acceptance or rejection of the voluntary spending limits as established under Subsection C, below. At a minimum, the form shall (1) state the voluntary spending limit then in effect, (2) the benefits of acceptance of the voluntary spending limit, and (3) contain an agreement to comply with the requirements of this Section 2081. Said form shall be filed with the City Clerk at the same time that a Candidate files his or her nomination paper and verified statement of acceptance pursuant to Elections Code Section 10224 or that a City Committee files its statement of organization pursuant to Government Code Section 84101. C. For the November 2006 City Election, the spending limit is $5,000,00. This voluntary spending limit shall apply to future elections, but may be adjusted perlodically by resolution of the city council to reflect increases or decreases in City population and the Consumer Price Index since August 2006. D. For candidates and City Committees accepting the voluntary spending limit, the following benefits apply: 1. The contribution limitation in Section 2079.A is increased from $200.00 to $500.00. 2. Except for recall elections, the voluntary spending limit for any Candidate opposing an incumbent shall be increased by 25%. 5 3. The City will pay for one-half the cost of the Candidate's statement of qualifications as printed in the ballot pamphlet. 4. Within one week of the filing deadline, the City will issue a news release, describing the purpose and benefits of the program, and announcing the Candidates and City Committees which have accepted the voluntary spending limit. 5. The City's website will designate the Candidate and City Committee accepting the voluntary spending limit as a '¥oluntary Spending Limit Candidate/Committee," and display the Candidate's photo and up to a 500 word statement from each participating Candidate and City Committee. 6. Each participating Candidate and City Committee may use the designation '¥oluntary Spending Limit Candidate/Committee" in all election/campaign materials and in the Candidate's ballot pamphlet statement of qualifications. 7. Candidates and their Controlled Committees may carry over funds from one election cycle to the next, if, within the first three days of the next Election Cycle, the Candidate or committee files a statement with the City Clerk accepting the voluntary spending limit applicable to that Election Cycle. If the Candidate or committee does not file the required statement, all funds carried over from the previous Election Cycle shall be disbursed pursuant to Section 2085 within seven days after the beginning of that subsequent Election Cycle. 8. Each participating Candidate and City Committee may include an additional 500 word statement on the City website if an opposing Candidate or City Committee rejects the voluntary spending limit. E. A Candidate or City Committee which files a notice accePting the voluntary spending limit may not thereafter reject the limit, except that if an opposing Candidate or City Committee files a statement rejecting the voluntary spending limit, the Candidate or City Committee may file a statement with the City Clerk rescinding its acceptance of the voluntary spending limits within three days after the final date that nomination papers can be filed. F. Any candidate who files a statement of acceptance pursuant to subsection B, above, and makes Campaign Expenditures in excess of the limits shall be subject to the remedies in Section 2086. §2082: ADDITIONAL DISCLOSURE REQUIREMENT: 6 A. Each Candidate and City Committee shall file a third pre-election Campaign Disclosure Statement (Form 460 or any successor form thereto), as provided by the commission for the period from the end of the second pre-election statement and ending at 11:59 p.m. on the fourth business day preceding election day (normally Thursday). Such disclosure shall be filed with the City Clerk no later than 1:00 p.m. on the third business day preceding election day and shalt be posted to the City's website by 5:00 p.m. of the day received, or as soon thereafter as may be practicable. B. Notwithstanding the amounts specified in Government Code Section 82036, each Candidate or City Committee shall file a late contributions report with the City Clerk which reports all contributions of $200.00 or more received from any source during the period commencing at the end of the period covered in the last campaign statement required pursuant to subsection A, above, and ending on midnight of the date of the election. This report shall be filed with the City Clerk within twenty-four hours of the receipt of the contribution and shall be posted to the City website within four hours of the filing or as soon thereafter as may be practicable. §2083: DEADLINE FOR DEBT RETIREMENT: A. No person shall make, and no Candidate or City Committee shall solicit or accept any contribution, including for the purpose of debt retirement, after the end of any Election Cycle. B. Any candidate or committee shall retire all campaign related debts by the end of the Election Cycle. C. Any campaign relined debt, which remains unpaid after the end of the Election Cycle, is deemed to have been a campaign contribution which was accepted at the time the debt was incurred. Any such contribution which causes the contribution by any person or to any Candidate or City Committee from any person to exceed the applicable contribution limits in this Chapter shall constitute a violation of this Chapter; provided, however, that failure by a person to collect a debt shall not constitute a violation of this Chapter for the creditor, if the creditor has made substantial attempts, in good faith, to collect the debt. §2084: DONORS: RETURN OF CONTRIBUTIONS FROM ANONYMOUS A. Not later than 14 days after its receipt, a Candidate or City Committee shall return or disburse to the City for deposit into the general fund of the City, or to one or more non-profit organizations determined by the Internal Revenue Service to be tax exempt under Internal Revenue Code Section 501 (c)(3) ("Charitable Organization") any contribution of more than twenty dollars ($20.00) for which the Candidate or committee does not have on file in the records of the Candidate or 7 committee the name, address, occupation, and employer of the contributor (an "Anonymous Contribution"). B. A Candidate or City Committee shall not accept and by the end of any required filing period or Election Cycle shall return or disburse to the City or a Charitable Organization Anonymous Contributions, where the total of such contributions exceeds ten percent (10%) of the total funds raised during that filing period or Election Cycle by that Candidate or City Committee, §2085: DISBURSEMENT OF UNEXPENDED CAMPAIGN FUNDS: Except as otherwise permitted by Section 2081 .C.7, any Candidate or City Committee that has an unexpended campaign surplus shall, within three days of the close of an Election Cycle, disburse the whole of the surplus either to the City for deposit into the general fund of the City, or to one or more Charitable Organizations. §2086: other Clerk shall: DUTIES OF THE CITY CLERK: In addition to any duties required of the City Clerk under this Chapter, the City A. Prescribe and furnish forms required to be filed by this Chapter; B. Determine whether required statements, declarations and forms have been filed and, if so, whether they conform on their face with the requirements of this Chapter, including whether they are sufficiently legible for purposes of scanning onto the City's website; C. Promptly notify all persons who have failed to file a statement in the form and at the time required by this Chapter. D. Arrange for the prompt scanning to the City's website of all statements and reports filed pursuant to Sections 2081 and 2082, and the pre-election statements required of Candidates or City Committees by the Political Reform Act in Title 9, Chapter 4, Article 2 of the Government Cede, commencing with Section 84200. E. Report, in writing, apparent violations of this Chapter to the City Attorney. §2087: ENFORCEMENT AND PENALTIES: A. Misdemeanor. Any person who knowingly or willfully violates any provision of this Chapter is guilty of a misdemeanor. 1. In addition to other penalties provided by law, a fine in the amounts as specified in subsection E, below, may be imposed. 2. Prosecution for violation of this Chapter must be commenced within four years after the date on which the violation occurred. B. Riqht to Cure Violation. A Candidate or City Committee which accepts a contribution in violation of this Chapter shall not be penalized, if the Candidate or committee returns the contribution or contributes it to the City general fund or to a Charitable Organization within 7 days of its receipt. C. Separate violations. Each contribution, acceptance, or solicitation of a contribution that is in violation of this Chapter and each failure to report a contribution or expenditure that is required to be reported by this Chapter shall constitute a separate violation. D. Joint and severable liability. If two or more persons are responsible for any violation, they shall be jointly and severally liable therefor. E. Civil penalty. Any person who violates any provision of this Chapter is liable in a civil action brought by the City Attorney or by a registered voter of the City for the following amounts for each such violation: 1. For the making, accepting or expending of any contribution or expenditure in excess of the applicable limits specified in this Chapter, a sum equal to three times the amount by which the contribution or expenditure exceeds the applicable contribution limit, or $500.00, whichever is greater. 2. For failure to file the additional disclosures required by Section 2082, the greater of $100.00 per calendar day after the specified deadline, until the filing is made, or $500.00, whichever is greater. 3. For ali other violations, a sum not to exceed $2,500.00. No civil action under this subsection E may be filed against a person if the cdminal prosecutor is maintaining a criminal action against that person pursuant to subsection A. F. Private riqht of action - prerequisites. Any person, before filing a civil action pursuant to subsection E, must first file with the City Attorney a written request for the City Attomey to commence the action. The request shall include a statement of the grounds for believing a cause of action exists. The City Attorney shall respond to the person in writing, indicating whether he or she intends to file a civil action, 1. If the City Attorney responds in the affirmative and files suit within 120 days from receipt of the written request to commence the action, no other action may be brought unless the action brought by the City Attorney is dismissed without prejudice. 2. If the City Attorney responds in the negative or fails to respond within 120 days from receipt of the written request to commence the action, the person requesting the action may proceed to file a civil action upon receipt of the response or 120 days from the City Attorney's receipt of the request, whichever occurs first, and shall within 10 days of filing the complaint, serve a copy on the City Attorney. 3. In any action brought pursuant to subsection E, above, the plaintiff shall be entitled to retain 50% of the civil penalties recovered from the defendant and shall deposit with the City Clerk for deposit into the City's general fund 50% of any such penalties so recovered. G. Iniunctive relief. The City Attorney or a registered voter in the City may bring an action to enjoin a violation of this Chapter or to compel compliance with a prevision of this Chapter H. Attorneys fees and costs. In an action brought by the City Attorney to enforce the provisions of this Chapter, costs and attorneys' fees shall be recoverable pursuant to Section 2053. In any civil action brought by a City voter pursuant to subsection F.2 or G, the prevailing party shall be entitled to recover from the other party his or her costs of litigation, including reasonable attorney's fees. 1. Disqualification. In addition to any other penalties prescribed by law, if an official receives a contribution in violation of this Chapter, the official shall not be permitted to make, participate in making or in any way attempt to use his or her official position to influence a governmental decision in which the contributor has a financial interest. The provisions of Government Code Section 87100 et seq. and the regulations of the Fair Political Practices Commission shall apply to interpretations of this subsection. SECTION TWO, The City Council shall review this Ukiah Campaign Reform Act within six months after the November 2006 election to determine whether any changes should be made. SECTION THREE. 1. SEVERABILITY~ If any prevision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, ]0 subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by title only on June 7, 2006, by the following roll call vote: AYES:Councilmembers McCowen, Rodin, and Baldwin. NOES: Councilmember Crane and Mayor Ashiku. ABSENT: None. ABSTAIN: None. Adopted on June 14, 2006 by the following roll call vote: AYES: Councilmembers McCowen, Rodin, and Baldwin. NOES: Councilmember Crane and Mayor Ashiku. ABSENT: None. ABSTAIN: None J~rk Ashiku, Mayor ATTEST: Marie Ulvila, City Clerk ORDINANCE NO. 1084 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING IBECTION 2081 OF TIHg UKIAH CITY CODE. The City Council of the City of Ukiah hereby ordains as follows: SECTION ONE. Section 2081 of the Uklah City Code is hereby mended to read as follows. §2081: VOLUNTARY SPENDING LIMIT: A Candidate or City Committee may elect to comply with the voluntary spending limits as set forth in this Section 2081. A. A Candidate or City Comanittee which voluntarily accepts expenditure limits may not make Campaign Expenditures in excess of the limits set forth in subsection C, below. Campaign Expenditures by a Candidate and his or her Controlled Committee shall be aggregated. B. Each Candidate and each City Committee shall indicate on a form provided by the City Clerk his, her or its acceptance or rejection of the voluntary spending limits as established under Subsection C, below. At a minimum, the form shall (1) state the voluntary spending limit then in effect, (2) the benefits of acceptance of the voluntary spending limit, and (3) contain an agreement to comply with the requirements of this Section 2081. Said form shall be filed with the City Clerk at the same time that a Candidate files his or her nomination paper and verified statement of acceptance pursuant to Elections Code Section 10224 or that a City Committee files its statement of organization pursuant to Government Code Section 84101. C. For the November 2006 City Election, the spending limit ia $5,000.00. This voluntary spending limit shall apply to future elections, but may be adjusted periodically by resolution of the city council to reflect increases or decreases in City population and the Consumer Price Index since August 2006. D. For candidates and City Committees accepting the voluntary spending limit, the following benefits apply: 1. The contribution limitation in Section 2079.A is increased from $200.00 to $500.00. 2. Except for recall elections, the voluntary spending limit for any Candidate opposing an incumbent shall be increased by 25%. 3. The City will pay for one-half the cost of the Candidate's statement of qualifications as printed in the ballot pamphlet. 4. Within one week of the filing deadline, the City will issue a news release, describing the purpose and benefits of the program, and announcing the Candidates and City Committees which have accepted thc voluntary spending limit. 5. Each participating Candidate and City Committee may use the designation "Voluntary Spending L/mit Candidate/Committee" in all election/campaign materials and in the Candidate's ballot pamphlet statement of qualifications. 6. Candidates and their Controlled Committees may can'y over funds from one election cycle to the next, if, within the first three days of the next Election Cycle, the Candidate or committee files a statement with the City Clerk accepting the voluntary spending limit applicable to that Election Cycle. If the Candidate or committee does not file the required statement, all funds carried over from the previous Election Cycle shall be disbursed pursuant to Section 2085 within seven days after the beginning of that subsequent Election Cycle. 7. The City shall post on the website a "Voluntary Spending Limit Candidates/Committees" list. Upon payment by the Candidate or Committee of the actual costs thereof, the Candidate or Committee may post on the City's website: a. Up lo a 500 word statnment along with the Candidate's picture. b. An additional 500 word statement, if an opposing Candidate or City Committee rejects the voluntary spending limit. For purposes of subsections 7.a and 7.b, above, the City Council shall adopt a resolution establishing the actual costs to be charged by the City. Those costs shall include all direct and indirect costs associated with posting the statements on the website, the intent being that no public funds shall be made available for these postings. The statements shall contain no reference to political party affiliation or partisan political membership, endorsements or activity, The statements shall be accompanied by a notice from the City, stating that the views expressed in the statement are those of the Candidate or Committee and do not reflect the views of the City or its officials and do not constitute an endorsement of the Candidate or Committee by the City or its officials. E. A Candidate or City Committee which files a notice accepting the voluntary spending limit may not thereafter reject the limit, except that if an opposing Candidate or City Committee liles a statement rejecting the voluntary spending limit, the Candidate or City Committee may file a statement with the City Clerk rescinding its acceptance of the voluntary spending limits within three days after the final date that nomination papers can be filed. candidate who files a statement of acceptance pursuant to subsection B, above, and makes Campaign Expenditures in excess of the limits shall be subject to the remedies in Section 2086. SECTION TWO. 1. SEVERABILITY. ff any provision of this ordinanc~ or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EI~'t,ECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. Introduced by tide only on July 19, 2006. by the following mil call vote: AYES: NOES: ABSENT: ABSTAlN: Councilmembers Crane, McCowea. Rodin, Vice Mayor Baldwin None Mayor Ashiku None Adopted on August 28, 2006, by the following mil call vote: AYES: Couneilmembers Crane, McCowen, Rodin, Baldwin and Mayor Ashiku NOES: None ABSENT: None ABSTAIN: None '~' ~- .~d'~k Ashiku, Mayor ATTEST: / Gall Petersen, City Clerk AGENDA ITEM NO: lld MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: Discussion and Direction Regarding Appointment Process--Mayor Rodin Planning Commission At the December 20, 2006 meeting, the newly elected Councilmembers appointed Planning Commissioners according to the procedures under Ordinance 1085 adopted on August 2, 2006. This agenda item and associated ordinance are attached for Council's review. Councilmembers that were in midterm were not able to consider their Planning Commission appointments made two years previous. Mayor Rodin has asked for Council's discussion on possibly changing the ordinance to allow for the opportunity for each Councilmember to reconsider their Planning Commission appointment every two years. RECOMMENDED ACTION: Discuss and provide direction. Citizens Advised: Requested by: Prepared by: Attachments: Mayor Rodin Candace Horsley, City Manager December 20, 2006 agenda item Approved: ~v ..A¢~,__ ~ Candace Horsley, City~l~anager Affachment # ITEM NO: 10b DATE: December 20, 2006 AGENDA SUI II IARY REPORT SUBJECT: DISCUSSTON AND APPOTNT[4ENT OF PLANNING COI~If4ISSION MEI~IBERS SUIqlqARY: The City Council has three newly elected members. According to Ordinance 1085 adopted on August 2, 2006 (Attachment No. 1), each newly elected member may nominate one Planning Commissioner who shall be appointed if approved by a majority vote of the City Council. This Agenda item is intended to provide the opportunity for the newly elected City Council members to nominate a Planning Commissioner and for the Council to vote on each nomination. The current Planning Commission was established under the procedures in effect prior to the adoption of Ordinance 1085. Those procedures allowed each Councilmember to individually appoint a Planning Commissioner. The following is a list of each current Planning Commissioner and the Councilmember who appointed them: Jim Hulheren, Chairman - Appointed by Councilmember Crane Kevin Jennings, Vice Chairman - Appointed by Councilmember HcCowen Judy Pruden - Appointed by Councilmember Rodin Ken Anderson - Appointed by Councilmember Baldwin Mike Whetzel - Appointed by Mayor Ashiku Councilmembers Baldwin, NcCowen, and Thomas may each nominate a person to sit on the Planning Commission, and the Council as a whole must vote on each nomination. Planning Commissioners blulheren and Pruden were appointed by Councilmembers Crane and Rodin. If there is a desire for change in these two appointments, the Councilmembers would need to make this request known at the meeting. RECOf41~IENDED ACTION: Councilmembers Baldwin, I~lcCowen, and Thomas individually nominate a Planning Commissioner and Council vote on each nomination. ALTERNATIVE COUNCIL POLTCY OPTTON: N/A Citizen Advised: N/A Requested by: Charley Stump, Director of Planning and Community Development Prepared by: Charley Stump, Director of Planning and Community Development Coordinated with: Candace Horsley, City Manager and David Rapport, City Attorney Attachments: 1. Ordinance 1055 APPROVED: Candace Horsley, City Manager A'FrACHMENT_. / ORDINANCE NO. 1085 ORDINANCE OF I'H ~; CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 1151 OF TI-rE UKIAH CITY CODE, PERTAINING TO THE MEMBERSHXP OF AND APPOINTMENT OF MEMBERS TO THE UKIAH PLANNING COMMISSION The City Council of the City of Ukiah hereby ordains as follows: FINDINC~: I. Thc City Council finds that a diversity of views should be represented on the City's Planning Commission. 2. This diversity of views is best achieved, if each City Council member has the opportunity to select a planning commissioner. 3. It is the intent of the City Council that each City Council member should have the opportunity to select a planning commissioner, subject to ratification by a majority vote of the City Council. 4. It is the expectation of thc City Council that the commissioner nominated by a City Council member will be approved by a majority vote of the City Council, except in unusual circumstance, where a majority of the City Council does not believe that the candidate is suited to perform thc functions of a planning commissioner, which inehide an ability to understand and apply the laws and standards that apply to commission decisions, listen carefully to evidence and argument presented during commission meetings, follow the mles adopted by the Commission, and make reasoned decisions and clearly articulate positions. SECTION ONE. Section 1151 of the Ukiah City Code is hereby amended to read as follows: §1151: MEMllERS; APPOINT1VIENT: Said commission shall consist of five (5) members who shall be registered voters of the city. Each member of thc City Council, including each newly elected or appointed City Council member, may nominate one commissioner who shall be appointed to the commission, if approved by a majority vote of the City Council. Each commissioner's term of office shall coincide with the term of office of the City Council member who nominated him or her. A new City Council member selected to fill a vacancy on the Council and serve out an unexpired term of office may nominate a replacement of the commissioner nominated by that Council member's predecessor in office, who shall be appointed for the remainder of that Council member's term of office, if approved by a majority vote of the City Council. Ifa commissioner vacates his or her office before the expiration of his or her term of office, the City Council member who nominated that commissioner may nominate a replacement to serve the remainder of that commissioner's term of office, who shall be appointed, if the nomination is approved by a majority vote of the City Council. If a City Council member's nomination receives less than a majority vote, he or she may nominate additional candidates, one at a time, until one of them is appointed by a majority vote of the City Council. Commissioners shall be nominated and voted upon at a single City Council meeting, unless a different procedure is approved by a majority vote of the City Council. ff a City Council member fails to nominate a commissioner within sixty (60) days after the vacancy occurs, a majority of the City Council shall fill the vacancy following the procedure used to appoint members to other city commissions and boards. SECTION TWO 1. SEVERABIL1TY. If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or otherwise invalid. 2. EFFECTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. It shall apply to injuries or damage occurring after it becomes effective. Introduced by title only on June 21, 2006, by the following rolI call vote: AYES: NOES: ABSENT: ABSTAIN: Councilmembers Crane, McCowen and Mayor Ashiku Councilmember Baldwin Councilmember Rodin None Adopted on August 2, 2006 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: Councih~embers Crane, McCowen and Mayor Ashiku Councilmembers Baldwin and Rodin None '.~/' Mark A~hiku, ~layor Oail Petersen, City Clerk ORDINANCE NO. 1085 ORDINANCE OF THE CITY COUNCFL OF THE CITY OF UKIAH AMENDING SECTION 1151 OF THE UKIAH CITY CODE, PERTAINING TO THE MEMBERSHIP OF AND APPOINTMENT OF MEMBERS TO THE UKIAH PLANNING COMMISSION Thc City Council of the City of UkJah hereby ordains as follows: FINDINGS: 1. The City Council finds that a diversity of views should be represented on the City's Planning Commission. 2. This diversity of views 'is best achieved, if each City Council member has the opportunity to select a planning commissioner. 3. R is theintent of the City Council that each City Council member should have the opportunity to select a planning commissioner, subject to ratification by a majority vote of the City Council. 4. It is the expectation of the City Council that the commissioner nominated by a City Council member will be approved by a majority vote of the City Council, except in unusual circumstance, where a majority of the City Council does not believe that the candidate is suited to perform the functions of a planning commissioner, which include an ability to understand and apply the laws and standards that apply to commission decisions, listen carefully to evidence and argument presented during commission meetings, follow the roles adopted by the Commission, and make reasoned decisions and clearly articulate positions. SECTION ONE. Section 1151 of the Ukiah City Code is hereby amended to read as follows: §1151: MEMBERS; APPOINTMENT: Said commission shall consist of five (5) members who shall be registered voters of the city. Each member of the City Council, including each newly elected or appointed City Council member, may nominate one commissioner who shall be appointed m the commission, if approved by a majority vote of the City Council. Each commissioner's term of office shall coincide with the term of office of the City Council member who nominated h~m or her. A new City Council member selected to fill a vacancy on the Council and serve out an unexpired term of office may nonfinate a replacement of the commissioner nominated by that Council member's predecessor in office, who shall be appointed for the remainder of that Council member's term of office, if approved by a majority vote of the City Council. If a commissioner vacates his or her office before the expiration of his or her term of office, the City Council member who nominated that commissioner may nominate a replacement to serve the remainder of that commissioner's term of office, who shall be appointed, if the nomination is approved by a majority vote of the City Council If a City Council member's nomination receives less than a majority vote, he or she may nominate additional candidates, one at a time, until one of them is appointed by a majority vote of the City Council. Commissioners shall be nominated and voted upon at a single City Council meeting, unless a different procedure is approved by a majority vote of the City Council. If a City Council member falls to nominate a commissioner within sixty (60) days after the vacancy occum, a majority of the City Council shall fill the vacancy following the procedure used to appoint members to other city commissions and boards. SECTION TWO I. SEVERABILITY. ff any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have adopted this Ordinance and any section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional or othenvise invalid. 2. Et~I~izCTIVE DATE. This Ordinance shall be published as required by law in a newspaper of general circulation in the City of Ukiah, and shall become effective thirty (30) days after its adoption. It shall apply to injuries or damage occurring after it becomes effective. Introduced by title 0nly on June 21, 2006, by the following roll call vote: AYES: Councllmembers Crane, McCowen and Mayor Ashiku NOES: Councilmember Baldwin ABSENT: Councilmember Rodin ABSTAIN: None Adopted on August 2, 2006 by the following roll call vote: AYES: Councilmembers Crane, McCowen and Mayor Ashiku NOES: Councilmembers Baldwin and Rodin ABSENT: None AB ST AIN: None ~..~.~ ~- ~ Mark A~hiku, ~ayor Gall Petersen, City Clerk AGENDA ITEM NO: lie MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: REPORT ON UKIAH VALLY AREA PLAN (UVAP) COMMUNITY MEETING AND REQUEST FOR AUTHORIZATION TO SUBMIT COMMENTS TO MENDOCINO COUNTY BOARD OF SUPERVISORS ON ECONOMIC REPORT PREPARED BY ECONOMIC & PLANNING SYSTEMS, INC. (EPS) The UVAP process has been extremely successful in articulating the community's vision for the Valley. The basic features of this vis!on include: · Leadership in sustainability · Sound and stable economy · Resource protection and management · Well-designed projects · Small town rural character · Accessible services and facilities · Adequate infrastructure · Equitable and inclusive community · City and county coordination · Evolving process (in planning for the Valley) Although there is broad consensus for this vision, there are indications that the UVAP planning process is not proceeding in a way that actualizes this vision. The March 10th UVAP community meeting conducted by MIG, and the economic report prepared by Economic & Planning Systems, Inc. (EPS) which formed the basis for that meeting, were flawed in serious ways. Two examples follow: 1. The EPS report excluded the City of Ukiah from its study area. Given that the City is the primary economic engine and the social core of the Valley, its omission from the report is difficult to understand or to justify. Furthermore, because of this omission, the report did RECOMMENDED ACTION: Accept report on UVAP community meeting and provide comments to .Mayor for submittal to the Mendocino County Board of Supervisors on the economic report prepared by Economic & Planning Systems, Inc. (EPS). ALTERNATIVE COUNCIL OPTIONS: NA Requested by: Mayor Rodin Prepared by: Mayor Rodin Coordinated with: Candace Horsley, City Manager Approved: ~:~ ~'~'~Ci Candace Horsley, Manager not inventory land use within the City limits and therefore did not consider the obvious fact that the City has neady the capacity to absorb a great deal (if not all) of the projected residential and commercial growth over the next 20 years--particularly if that growth proceeds in accordance with the community's vision. 2. The EPS study also did not meaningfully analyze the economic impacts of the proposed 700,000 square foot retail center at Masonite. This proposed retail center is of such magnitude that it is likely, based upon data from the EPS study, to completely usurp the retail activity currently in the City. The City Council has discussed and agreed on a number of occasions that planning for the Ukiah Valley has to be done without regard to jurisdictional boundaries. This approach is also part of the UVAP vision statement. Although there is no dispute that this is the proper approach, the UVAP process thus far is unfolding in a way that is not consistent with this holistic view. The purpose of the attached detailed list of concerns and issues is to generate discussion amongst council members. I am hopeful that after a thorough analysis, the council will agree that a letter to the Board or Supervisors expressing our concerns is in order. AT'rACHMEN~,,,, /' E-2. California County Population Estimates and Components of Change Revised July 1, 1999 and Revised July 1, 2000 Table 7. Total Population Change 1999-2000 Components of Change Net Revised Revised Natural Net Net Domestic County July 1, 1999 July 1, 2000 Number Percent Births Deaths Increase Migration Immigration Migration Alameda 1,423,529 1,453,173 29,644 2.08 21,327 9,658 11,669 17,975 10,560 7,41.~ Alpine 1,171 1,205 34 2.90 13 6 7 27 0 27 Amador 34,769 35,327 558 1.60 260 375 -115 673 50 Butte 201,632 203,921 2,289 1.14 2,229 2,123 106 2,183 323 1,86( Calaveras 40,288 40,738 450 %12 311 388 -77 527 20 507 Colusa 18,594 18,928 334 1.80 324 138 186 148 345 -197 Contra Costa 937,226 956,328 19,102 2~04 12,824 6,517 6,307 12,795 4,343 8,45~ Del Norte 27,513 27,502 -11 -0.04 292 211 81 -92 23 -115 El Dorado 154,507 158,531 4,024 2.60 1,575 1,096 479 3,545 272 3,275 Fresno 789,748 804,34'; 14,594 1.85 14,288 5,438 8,850 5,744 6,451 -707 Glenn 26,308 26,62." 317 1.20 363 261 102 215 196 Humboldt 126,393 126,84~c 456 0.36 1,356 1,194 162 294 117 177 Imperial 140,822 143,58.c 2,767 1.96 2,549 827 1,722 1,045 2,995 -1,956 Inyo 18,162 18,19~c 37 0.20 184 200 -16 53 26 27 Kern 653,400 665,376 11,976 1.83 11,556 4,475 7,081 4,895 3,326 1,56c~ Kings 127,440 130,096 2,650 2.08 2,096 689 1,407' 1,243 723 52C Lake 57,601 58,601 1,000 1.74 586 623 -37 1,037 156 881 Lassen 33,654 33,980 326 0.97 269 196 75 253 20 233 Los Angeles 9,394,293 9,579,022 184,729 1.97 157,885 59,947 97,93E 86,791 86,768 23 Madera 121,669 124,544 2,875 2.36 2,080 847 1,233 1,642 985 657 Marin 244,931 248,247 3,316 1.35 2,719 1,810 90c~ 2,407 695 1,712 Mariposa 16,945 16,985 40 0.24 124 168 -44 84 17 67 Mendocino 85,800 86,562 762 0.89 1,033 820 213 549 324 225 Merced 207,457 211,231 3,774 1.82 3,765 1,286 2,47c~ 1,295 2,011 -716 Modoc 9,437 9,527 90 0.95 70 100 -3(2 120 9 111 Mono 12,604 12,924 320 2.54 116 43 73 247 26 221 Monterey 394,653 403,976 9,323 2.36 6,817 2,314 4,503 4,820 4,272 548 Napa 122,788 124,993 2,205 1.80 1,438 1,237 201 2,004 587 1,417 Nevada 90,860 92,378 1,518 1.67 772 843 -71 1,589 83 1,506 Orange 2,802,818 2,863,706 60,888 2.17 46,855 16,759 30,096 30,792 20,309 10,483 Placer 243,339 252,076 8,737 3.59 2,971 1,833 1,138 7,599 265 7,334 Plumas 20,756 20,719 -37 -0.18 155 219 -64 27 23 4 Riverside 1,514,602 1,558,824 44,222 2,92 24,142 12,029 12,113 32,109 7,881 24,228 Sacramento 1,204,658 1,233,386 28,728 2.38 17,968 8,922 9,046 19,682 4,072 15,610 San Benito 52,185 53,794 1,609 3.08 993 283 710 899 463 435 San Bernardino 1,683,843 1,722,573 38,730 2.30 28,446 11,175 17,271 21,459 6,428 15,031 San Diego 2,776,342 2,836,171 59,829 2.15 44,122 19,586 24,536 35,293 16,000 19,293 San Francisco 766,471 781,028 14,557 1.90 8,293 6,364 1,929 12,628 9,268 3,360 San Joaquin 554,706 568,932 14,226 2.56 9,064 4,202 4,862 9,364 3,424 5,940 San Luis Obispc 243,726 248,105 4,379 1.80 2,401 1,976 425 3,954 662 3,29? San Mateo 700,830 710,836 10,006 1.43 10,243 4,716 5,527 4,479 6,386 -1,907 Santa Barbara 394,936 400,943 6,007 1.52 5,614 2,925 2,689 3,318 2,252 1,066 Santa Clara 1,665,590 1,693,040 27,450 1.65 26,676 8,864 17,812 9,638 14,923 -5,285 Santa Cruz 253,241 256,510 3,269 1.29 3,467 1,661 1,806 1,463 2,255 -792 Shasta 162,154 164,659 2,505 1.54 1,829 1,653 176 2~329 58 2,271 Sierra 3,548 3,632 84 2.37 19 43 -24 108 9 99 Siskiyou 44,241 44,495 254 0.57 454 467 -13 267 95 172 Solano 388,640 397,187 8,547 2.20 5,615 2,412 3,203 5,344 1,571 3,773 Sonoma 453,470 461,464 7,994 1.76 5,547 3,774 1,773 6,221 1,826 4,395 Stanisiaus 440,908 450,982 10,074 2.28 7,163 3,319 3,844 6,230 2,492 3,738 Sutter 78,034 79,524 1,490 1.91 1,146 678 468 1,022 688 334 Tehama 55,547 55,931 384 0.69 645 597 48 336 123 213 Trinity 13,048 12,984 -64 -0.49 95 129 -34 -30 11 -41 Tulare 364,256 369,727 5,471 1.50 6,969 2,661 4,308 1,163 3,169 -2,006 Tuolumne 54,115 54,728 613 1.13 451 546 *95 708 27 681 Ventura 742,825 758,657 15,832 2.13 11,638 4,761 6,877 8,955 4,933 4,022 Yolo 165,332 170,001 4,669 2.82 2,198 1,026 1,172 3,497 963 2,534 Yuba 60,223 60,433 210 0.35 1,027 505 522 -312 141 -453 California 33,418,578 34,098,740 680,162 2.04 525,427 227,915 297,512 382,650 236,440 146,210 E-2. California County Population Estimates and Percent Change Revised July 1, 2000 through Provisional July 1, 2006 Table 8. Total Population J Percent Population Change Revised Revised Revised Revised Revised Revised Provisional 2000- 2001- 2002- 2003- 2004- 2005- County luly 1, 2000 July 1, 2001 July 1, 2002 Ju y 1, 2003 July 1, 2004 July 1, 2005 July 1, 2006 2001 2002 2003 2004 2005 2006 Alameda 1,453,173 1,477,928 1,488,369 1,493,187 1,497,809 1,502,703 1,514,909 1.70 0.71 0.32 0.31 0.33 0.81 Alpine 1,205 1,249 1,258 1,255 1,270 1,216 1,256 3.65 0.56 -0.08 1.20 4.25 3.29 Amador 35,327 35,896 36,688 36,974 37,379 38,023 38,377 1.61 2.21 0.78 1.10 1.72 0.93 Butte 203,921 206,184 208,751 211,237 212,712 214,722 216,961 1.11 1.25 1.19 0.70 0.94 1.04 Calaveras 40,738 41,621 42,420 43,537 44,240 45,272 45,928 2.17 1.92 2.83 1.61 2.33 1.45 Colusa 18,928 19,249 19,661 20,061 20,743 21,275 21,766 1.70 2.14 2.03 3.40 2.56 2.31 Contra Costa 956,328 977,321 989,161 1,002,651 1,014,971 1,025,627 1,034,874 2.20 1.21 1.36 1.23 1.05 0.90 Del Norte 27,502 27,597 27,917 28,229 28,961 29,115 29,328 0.35 1.16 1.12 2.59 0.53 0.73 El Dorado 158,531 162,432 165,663 168,777 172,015 175,525 177,909 2.46 1.99 1.88 1.92 2.04 1.36 Fresno 804,342 820,382 837,367 857,480 874,730 891,134 909,399 1.99 2.07 2.40 2.01 1.88 2.05 Glenn 26,625 26,810 27,185 27,673 27,909 28,314 28,767 0.69 1.40 1.80 0.85 1.45 1.60 Humboldt 126,849 127,297 128,591 129,776 130,676 131,022 131,361 0.35 1.02 0.92 0.69 0.26 0.26 Imperial 143,589 146,230 149,981 154,828 159,458 164,293 189,888 1.84 2.57 3.23 2.99 3.03 3.41 Inyo 18,199 18,268 18,493 18,522 18,550 18,378 18,327 0.38 1.23 0.16 0.15 -0.93 -0.28 Kern 665,376 681,880 699,228 720,825 744,401 768,928 796,331 2.48 2.54 3.09 3.27 3.29 3.56 135,196 139,343 143,513 146,112 149,758 61,238 62,152 62,824 63,302 64,018 33,951 34,412 35,562 35,740 36,515 Kings Lake Lassen Los Angeles Madera Marin Maripcea Mendocino Merced Modoc Mono Monterey Napa Nevada Orange Placer Plumas Riverside Sacramento San Benito San Bemardino San Diego San Francisco San Joaquin San Luis Obispc San Mateo Santa Barbara Santa Clara Santa Cruz Shasta Sierra 130,090 132,484 58,601 60,217 33,980 33,845 9,579,022 9,748,152 124,544 127,116 9,912,154 10,049,244 10,155,810 10,229,226 10,292,723 129,749 134,669 139,322 143,250 248,247 249,721 250,472 251,180 251,500 252,988 16,985 17,215 17,407 17,746 17,794 18,045 86,562 87,463 88,243 89,039 89,562 89,825 211,231 218,071 224,485 231,093 237,270 243,457 9,527 9,477 9,472 9,582 9,907 9,894 12,924 13,177 13,330 13,410 13,536 13,649 403,976 410,437 415,580 421,146 423,054 422,925 124,993 127,206 129,393 131,187 132,420 133,574 92,378 94,360 95,584 97,134 98,235 99,236 2,863,706 2,918,791 2,963,394 3,005,043 3,037,949 3,062,275 252,076 265,100 277,108 290,777 302,377 313,133 20,719 20,830 20,884 20,988 21,087 21,161 1,558,824 1,621,757 1,685,987 1,766,831 1,845,524 1,924,881 1,233,386 1,271,471 1,302,397 1,332,269 1,357,617 1,378,068 53,794 55,227 56,212 56,872 57,203 57,490 1,722,573 1,771,386 1,815,631 1,869,704 1,923,610 1,974,206 2,836,171 2,892,601 2,949,916 2,995,580 3,031,679 3,058,026 781,028 786,766 790,716 791,778 793,601 796,150 568,932 591,307 608,337 626,513 645,645 662,008 248,105 252,149 254,473 256,596 259,462 261,572 710,836 713,958 715,763 717,538 720,063 723,762 400,943 405,539 409,309 413,865 416,385 418,639 1,693,040 1,709,645 1,721,297 1,732,582 1,747,991 1,765,604 256,510 257,805 258,255 258,568 259,713 261,295 164,659 168,312 171,689 174,743 177,061 178,898 1.84 2.76 -0.40 1.77 2.07 2.05 3.07 2.99 1.81 2.50 1.70 1.49 1.08 0.76 1.13 0.31 1.36 3.34 0.50 2.17 1.68 1.38 1.06 0.72 0.62 2.07 3.79 3.46 2.82 2.76 147,201 254,76~ 0.59 18,15( 1.35 89,961 1.04 249,11( 3.24 9,91( -0.52 13,755 1.96 423,478 1.60 135,228 1.77 99,584 2.15 3,083,894 1.92 322,428 5.17 21,093 0.54 2,004,608 4.04 1,396,353 3.09 57,534 2.66 2,016,277 2.83 3,084,634 1.99 802,651 0.73 674,323 3.93 263,824 1.63 729,366 0.44 421,656 1.15 1,791,869 0.98 263,385 0.50 180,757 2.22 3,495 -0.52 45,941 0.18 423,033 2.24 480,805 1.42 519,276 3.41 93,142 1.72 61,424 1.28 14,196 0.35 0.30 0.28 0.13 0.59 0.70 1.12 1.95 0.27 1.41 0.62 0.89 0.90 0.59 0.29 0.15 2.94 2.94 2.67 2.61 2.32 -0.05 1.16 3.39 -0.13 0.16 1.16 0.60 0.94 0.83 0.78 1.25 1.34 0.45 -0.03 0.13 1.72 1.39 0.94 0.87 1.24 1.30 1.62 1.13 1.02 0.35 1.53 1.41 1.10 0.80 0.71 4.53 4.93 3.99 3.56 2.97 0.26 0.50 0.47 0.35 -0.32 3.96 4.80 4.45 4.30 4.14 2.43 2.29 1.90 1.51 1.33 1.78 1.17 0.58 0.50 0.08 2.50 2.98 2.88 2.63 2.13 1.98 1.55 1.21 0.87 0.87 0.50 0.13 0.23 0.32 0.82 2.88 2.99 3.05 2.53 1.86 0.92 0.83 1.12 0.81 0.86 0.25 0.25 0.35 0.51 0.77 0.93 1.11 0.61 0.54 0.72 0.68 0.66 0.89 1.01 1.49 0.17 0.12 0.44 0.61 0.80 2.01 1.78 1.33 1.04 1.04 3,632 3,613 3,600 3,591 3,521 3,489 -0.36 -0.25 -1.95 -0.91 0.17 Siskiyou 44,495 44,575 44,797 45,108 45,446 45,789 0.50 0.69 0.75 0.75 0.33 Solano 397,187 406,088 411,601 415,134 418,383 420,246 1.36 0.86 0.78 0.45 0.66 Sonoma 461,464 468,038 470,039 473,238 477,047 478,547 0.43 0.68 0.80 0.31 0.47 Stanislaus 450,982 466,344 479,105 490,078 499,693 510,164 2.74 2.29 1.96 2.10 1.79 Sutter 79,524 80,895 82,953 85,438 87,661 90,206 2.54 3.00 2.60 2.90 3.25 Tehama 55,931 56,646 57,530 58,658 59,620 60,548 1.56 1.96 1.64 1.56 1.45 Trinity 12,984 13,030 13,238 13,488 13,667 14,066 1.60 1.89 1.33 2.92 0.92 Tulare 369,727 376,313 384,718 394,836 405,579 415,820 425,600 1.78 2.23 2.63 2.72 2.53 2.35 Tuolumne 54,728 55,568 56,257 56,824 56,892 57,176 57,347 1.53 1.24 1.01 0.12 0.50 0.3(3 Ventura 758,657 774,264 787,886 799,781 808,657 814,262 821,698 2.06 1.76 1.51 1.11 0.69 0.91 Yolo 170,001 175,399 179,817 182,924 186,525 188,788 192,285 3.18 2.52 1.73 1.97 1.21 1.85 Yuba 60,433 61,680 63,066 64,413 66,235 68,892 71,938 2.06 2.25 2.14 2.83 4.01 4.42 California 34,098,740 34,784,382 35,392,960 35,990,107 36,522,026 36,981,931 37,444,385 2.01 1.75 1.69 1.48 1.26 1.25 POPULATION PROJECTONS BY RACE/ETHNICITY FOR A'I-rACHMENT.,- - CALIFORNIA AND ITS COUNTIES 2000-2050 REPORT 03 P-I http://wwW-d~f.c~-g~v/HTML/DEM~GRAP/Rep~rtsPapers/Pr~jecti~ns/P1/d~cuments/P-1-Tab~es~x~s TABLE 1 TOTAL POPULATION 2000 2010 2020 2030 2040 2050 ALAMEDA 1,451.109 1.651,164 1,864.145 2.038,482 2,187.098 2.315,045 ALPINE 1,247 1.377 1,441 1,413 1.322 1,263 AMADOR 35,434 39.287 42,257 44.404 45.929 47,829 BUTTE 204,672 228.020 260,730 278.828 282,492 287.130 CALAVERAS 40,890 49,599 59.691 70.577 81,886 92,856 COLUSA 18,923 22,697 26.337 29,353 32,449 35.544 CONTRA COSTA 954,504 1.116.298 1,327,081 1.543.053 1,701,209 1.848,177 DEL NORTE 27,652 29.126 30,765 32.442 32,713 32.890 ELDORADO 158.570 188,471 221.289 250.173 266,788 282.331 FRESNO 803.401 949,961 1,114.654 1,297,476 1,476.699 1,658.281 GLENN 26.718 29,348 31,950 34,379 37.182 40,167 HUMBOLDT 127,173 133,136 139,518 142,412 141.213 139,692 IMPERIAL 143,660 178,201 214.386 254,989 296,656 339,506 INYO 18.257 18,396 18.404 18.256 17.899 17.699 KERN 664,694 808,808 950,112 1,114,878 1,325,648 1,549,594 KINGS 129,823 156,334 184,751 223,767 252,762 282,364 LAKE 58,863 69,259 79,676 89,638 99,501 109,488 LASSEN 34,039 36,954 38,232 38,630 39,157 39,510 LOSANGELES 9,559,635 10,461,007 10,885,092 11,236,734 11,380,841 11,423,198 MADERA 124,372 150,278 183,966 219,832 259,353 302,859 MARIN 248,473 252,440 251,260 248,664 237,244 225,127 MARIPOSA 17,165 18,608 20,607 22,435 23,979 25,456 MENDOCINO 86,852 94,300 100,664 106,092 111,407 118,621 MERCED 210,876 277,715 360,831 437,880 528,788 625,313 MODOC 9,475 9,547 9.285 8,922 8.455 7,999 MONO 12,939 14.705 16,248 17.471 18.178 18.862 MONTEREY 403,636 453,292 505,359 556,962 605,963 654,847 NAPA 124,945 142,121 165,946 190,234 205,338 221,466 NEVADA 92,431 106,910 126,912 137,965 146,432 155,161 ORANGE 2,854,026 3.260.162 3,526,144 3.665.343 3.704,802 3.702,641 PLACER 2491471 349.113 456.040 544.690 603,637 657.385 PLUM, AS 20.829 21,067 20,983 20.330 19.660 19.413 RIVERSIDE 1,553.902 2,165,148 2.675.648 3.180,411 3,717.961 4.305.161 SACRAMENTO 1,230,465 1.555.848 1,946,679 2.293,028 2.579.720 2.858,427 SAN BENITO 53,770 62,530 73,547 84.727 94.994 105.032 SAN BERNARDINO 1.719,615 2.133.377 2.456,089 2.762.307 3.029,750 3,289,254 SAN DIEGO 2,832,563 3,258,951 3,633,572 4,005,624 4,289,739 4,506,099 SAN FRANCISCO 781,174 816,230 820,545 796,208 757,161 706,192 SAN JOAQUIN 567,798 747,149 989,462 1,229,757 1,457,128 1,707,599 SAN LUIS OBISPO 248,327 277,437 305,274 330,949 337,247 343,548 SAN MATEO 710,493 747,134 786,740 814,065 825,638 826,342 SANTA BARBARA 400,778 440,337 464,019 467,292 477,658 481,840 SANTA CLARA 1,691,183 1,844,146 2,006,992 2,152,963 2,252,668 2,325,538 SANTA CRUZ 256,874 271,222 286,044 294,711 294,253 293,350 SHASTA 164,748 196,464 227,922 260,160 296,007 334,348 SIERRA 3,636 3,530 3,654 4,023 4,477 4,895 SISKIYOU 44,695 45,611 45,862 45,400 44,083 43,045 SOLANO 396,784 455,647 555,264 677,628 751,782 830,830 SONOMA 461,347 515,968 602,783 715,298 751,906 796,792 STANISLAUS 449,777 559,051 653,841 744,599 843,523 941,562 SUTTER 79,464 95,757 111,856 126,216 139,805 154,210 TEHAMA 56,042 62,442 68,323 74,171 80,640 88,006 TRINITY 13,081 13,442 13,402 13,191 12,980 12,923 TULARE 369,355 447,315 543,749 650,466 754,790 867,482 TUOLUMNE 54,946 59,883 65,452 68,566 70,537 72,265 VENTURA 757,172 860,664 924,410 982,794 1,025,709 1,071,905 YOLO 169,882 222,277 271,040 320,434 363,663 407,691 YUBA 60,553 71,506 84,816 98,959 112,097 125,650 CALIFORNIA 34,043,198 39,246,767 43,851,741 48,110,671 51,538,596 54,777,700 Department of Finance Demographic Research Unit May 2004 POPULATION PROJECTIONS BY RACE/ETHNICITY FOR CALIFORNIA AND ITS COUNTIES 2000-2050 REPORT O3 P-1 Table 2 continued YEAR 2030 Pacific A~erican TOTAL White Hispanic ~sian Islander Black Indian Multirace 2,038,482 424,596 639,718 661,785 20,314 202,783 27,080 62,203 1,413 863 110 4 I 7 353 45 44,404 34,277 4,946 980 28 1,414 1,781 978 278,828 151,808 66,300 21,248 877 12,104 18,695 7,796 70,577 55,981 7,954 1,076 41 1,226 3,042 1,257 29,353 8,704 18,707 492 87 91 782 490 1,543,053 452,761 536,219 309,892 10,181 160,800 35,279 37,921 32,442 19,233 6,777 946 20 1,258 2,763 1,445 250,173 182,523 40,602 11,310 199 3,133 7,360 5,046 1,297,476 252,113 809,639 90,856 985 86,142 38,802 18,939 34,379 18,047 13,141 1,632 23 187 578 771 142,412 96,878 19,018 3,571 327 3,376 12,007 7,235 254,989 21,900 202,719 8,018 88 16,974 4,185 1,105 18,256 10,913 3,825 257 18 25 2,078 1,140 1,114,878 294,692 630,516 60,097 1,232 80,567 28,841 18,933 223,767 60,868 125,899 7,673 300 19,288 5,777 3,962 89,638 55,231 19,749 995 89 3,959 6,945 2,670 38,630 25,712 6,378 316 319 3,374 1,446 1,085 11,236,734 2,614,550 6,221,668 1,214,042 29,101 886,468 73,120 197,785 219,832 67,703 128,698 4,194 189 11,299 5,041 2,7n5 248,684 162,299 46,842 21,678 412 6,977 3,811 6,665 22,435 16,197 4,237 144 22 126 1,089 620 106,092 57,917 34,430 2,875 124 1,662 5,900 3,184 437,880 142,669 249,045 22,292 455 10,151 4,496 8,772 8,922 6,506 1,287 64 7 68 537 453 17,471 11,352 5,173 225 10 70 282 359 556,96; 139,190 349,098 30,839 2,311 19,959 3,320 12,245 190,23a 82,667 79,435 11,688 445 6,361 6,175 3,463 137,96~ 117,099 10,617 2,719 79 917 4,065 2,469 3,665,34~ 1,205,860 1,659,771 625,674 16,066 53,453 32,577 71,947 544,69C 404,278 68,696 32,790 473 17,041 11,263 10,149 20,33¢ 16,456 2,093 241 22 315 584 619 3,180,411 718,496 1,924,103 171,358 11,211 261,566 44,776 48,901 2,293,02E 656,975 661,199 419,170 21,684 347,006 117,732 69,262 84,727 32,798 47,378 2,303 78 752 346 1,077 2,762,307 247,307 1,865,890 231,160 13,869 327,053 27,248 49,782 4,005,624 1,418,641 1,674,059 519,274 25,623 216,758 48,685 102,584 796,208 344,865 122,282 256,661 4,795 42,618 3,242 21,745 1,229,757 308,073 616,678 146,312 4,343 98,325 30,727 25,299 330,949 193,625 99,381 19,285 320 7,614 4,580' 6,144 814,065 319,172 261,096 177,844 12,149 15,432 3,583 24,789 467,292 135,704 273,906 28,539 1,382 7,834 6,089 13,838 2,152,963 707,455 743,414 586,182 6,062 46,816 8,993 54,041 294,711 143,448 121,684 17,294 386 3,199 1,662 7,038 260,160 150,735 44,216 13,572 235 8,731 36,251 6,420 4,023 3,622 230 36 3 6 63 63 45,400 34,635 5,641 741 56 574 2,103 1,650 877,628 142,052 257,205 107,754 9,023 107,638 26,725 27,231 715,298 438,463 178,242 45,874 4,041 15,662 18,470 14,546 744,599 283,780 359,512 32,720 2,648 28,682 19,523 17,734 126,216 47,609 42,046 24,791 221 3,979 4,930 2,640 74,171 41,584 25,138 1,343 51 726 3,592 1,737 13,191 10,288 1,061 121 16 63 800 842 650,466 157,301 448,988 12,869 372 15,707 8,993 6,236 68,566 54,191 6,526 863 93 1,269 3,909 1,715 ALAMEDA ALPINE AMADOR BUTTE CALAVERAS COLUSA CONTRA COSTA DEL NORTE EL DORADO FRESNO GLENN HUMBOLDT IMPERIAL INYO KERN KINGS LAKE LASSEN LOS ANGELES MADERA MARIN MARIPOSA MENDOClNO MERCED MODOC MONO MONTEREY NAPA NEVADA ORANGE PLACER PLUMAS RIVERSIDE SACRAMENTO SAN BENITO SAN BERNARDINO SAN DIEGO SAN FRANCISCO SAN JOAQUIN SAN LUIS OBISPO SAN MATEO SANTA BARBARA SANTA CLARA SANTA CRUZ SHASTA SIERRA SISKIYOU SOLANO SONOMA STANISLAUS SUTTER TEHAMA TRINITY TULARE TUOLUMNE VENTURA YOLO YUBA CALIFORNIA Department of Finance Demographic Research Unit May 2004 982,794 320,434 98,959 48,110,671 204,453 564,076 143,981 4,705 11,758 32,417 21,404 114,180 143,917 39,722 1,807 7,422 7,496 5,890 60,805 19,454 8,571 391 3,897 2,037 3,804 14,182,100 22,520,629 6,158,956 210,409 3,192,662 815,054 1,030,861 POPULATION PROJECTIONS BY RACE/ETHNICITY FOR CALIFORNIA AND ITS COUNTIES 2000-2050 REPORT 03 P-1 Table 2 continued YEAR 2040 Pacific A~erican TOTAL White Hispanic ~sian ~lander Black Indian Multirace 2,187,098 356,552 794,035 688,900 20,815 199,817 31,965 65,014 1,322 732 110 4 1 7 423 45 45,929 34,155 5,618 1,335 27 1,390 2,343 1,061 282,492 131,996 80,183 24,570 1,161 14,485 21,660 8,437 81,886 62,843 10,382 1,575 40 1,900 3,917 1,229 32,449 8,663 21,545 555 85 87 950 564 1,701,209 430,784 634,711 361,018 11,733 179,528 43,210 40,225 32,713 18,067 7,892 991 19 1,250 2,974 1,520 266,788 184,300 50,605 13,403 190 3,906 8,872 5,512 1,476,699 242,457 967,532 94,453 1,024 100,624 50,043 20,566 37,182 18,435 15,180 1,932 23 200 565 847 141,213 89,210 22,938 3,576 338 4,001 13,160 7,990 296,656 20,722 237,163 10,408 81 22,078 5,033 1,171 17,899 9,881 4,224 268 18 25 2,003 1,480 1,325,048 291,945 789,327 80,195 1,770 99,496 41,551 21,364 252,762 51,569 149,778 8,566 310 20,795 7,199 4,545 99,501 56,627 24,532 1,101 84 5,096 8,960 3,101 39,157 25,651 6,810 302 385 3,343 1,470 1,196 11,380,841 2,373,749 6,689,252 1,183,877 29,517 807,261 89,334 207,851 259,353 70,859 160,495 5,105 181 15977 6,009 2,727 237,244 143,906 51,038 23,937 407 6,698 4,503 6,755 23,979 16,223 5,613 128 22 125 1,233 635 111,407 53,071 42,998 3,421 116 2,080 5,387 3,334 528,78~ 168,575 307,894 24,919 491 10,565 5,391 10,953 8,45~ 6,010 1,241 56 7 63 560 18,17~ 11,075 6,152 235 10 63 252 391 605,96~ 130,578 404,187 32,434 2,359 20,092 3,562 12,751 205,33E 78,707 93,810 13,411 466 7,922 7,358 3,664 146,43~ 123,550 11,541 3,149 77 920 4,642 2,553 3~704,80~ 1,133,000 1,822,070 579,672 15,251 48,927 29,405 76,477 603,637 435,467 81,230 39,837 471 20,654 14,050 11,928 19,66C 15,391 2,463 247 18 360 558 623 3,717,961 643,746 2,446,744 195,514 12,872 307,362 56,334 55,389 2,579,72d 630,975 819,486 474,349 24,052 410,744 143,581 76,533 94,994 34,426 55,624 2,668 77 757 325 1,117 3,029,750 196,094 2,119,680 253,716 15,478 359,529 32,089 53,164 4,289,739 1,350,789 1,924,959 589,738 28,982 226,862 58,126 110,283 757,161 322,429 118,653 248,900 4,879 37,404 3,121 21,775 1,457,128 329,580 778,034 169,351 4,696 114,724 32,400 28,343 337,247 174,800 120,321 22,519 324 7,742 5,303 6,238 825,638 300,502 289,342 179,543 12,136 14,564 3,462 26,089 477,658 117,653 302,430 26,312 1,497 7,430 6,090 16,246 2,252,668 673,157 870,899 586,910 5,649 48,885 9,821 57,347 294,253 127,670 137,194 17,435 373 3,017 1,527 7,037 296,007 149,587 60,477 18,026 243 11,779 48,947 6,948 4,477 4,040 209 106 3 6 57 56 44,083 32,672 6,406 741 55 530 2,049 1,630 751,782 138,592 319,746 110,522 9,782 111,862 31,238 30,040 751,906 426,071 214,128 50,077 5,119 16,730 24,507 15,274 843,523 283,304 437,038 40,421 3,311 34,290 25,005 20,154 139,805 46,203 50,745 29,195 231 4,669 6,026 2,736 80,640 39,805 32,333 1,592 45 857 4,249 1,759 12,980 9,878 1,244 115 16 62 752 913 754,790 162,663 541,425 14,406 375 19,384 10,044 6,493 70,537 54,568 7,197 946 92 1,281 4,685 1,768 County ALAMEDA ALPINE AMADOR BU3TE CALAVERAS COLUSA CONTRA COSTA DEL NORTE EL DORADO FRESNO GLENN HUMBOLDT IMPERIAL INYO KERN KINGS LAKE LASSEN LOS ANGELES MADERA MARIN MARIPOSA MENDOCINO MERCEe MODOC MONO MONTEREY NAPA NEVADA ORANGE PLACER PLUMAS RIVERSIDE SACRAMENTO SAN BENITO SAN BERNARDINO SAN DIEGO SAN FRANCISCO SAN JOAQUIN SAN LUIS OBISPO SAN MATED SANTA BARBARA SANTA CLARA SANTA CRUZ SHASTA SIERRA SISKiYOU $OLANO SONOMA STANISLAUS SUTTER TEHAMA TRINITY TULARE TUOLUMNE VENTURA YOLO YUBA CALIFORNIA l~epartment of Finance Demographic Research May 2004 1,025,709 363,663 112,097 173,946 597,725 171,216 5,620 12,079 41,811 23,312 111,512 179,639 45,832 2,277 8,527 8,802 6,074 65,966 25,300 9,668 547 4,331 2,180 4,105 13,435,378 25,959,527 6,464,398 226,228 3,363,142 982~073 1,107,850 POPULATION PROJECTIONS BY RACE/ETHNICITY FOR CALIFORNIA AND ITS COUNTIES 2000-2050 REPORT 03 P-1 Table 2 continued YEAR 2050 Pacific American County TOT/d. White Hispanic Asian Islander Black Indian Multirace ALAMEDA 2,315,045 345,969 957,088 694,846 20,798 194,229 36,153 64,962 ALPINE 1,263 644 105 4 1 7 459 43 AMADOR 47,829 34,050 6,575 1,713 25 1,359 2,988 1,119 BUTTE 287,130 113,289 94,857 27,542 1,533 16,891 24,120 8,898 CALAVE RAS 92,856 68,664 13,230 2,101 36 2,895 4,701 1,229 COLUSA 35,544 8,606 24,406 622 74 85 1,120 631 CONTP~. COSTA 1,848,177 408,382 733,260 405,406 13,019 196,766 50,203 41,141 DEL NORTE 32,890 16,771 9,152 990 17 1,254 3,141 1,565 EL DORADO 282,331 184,491 61,503 15,263 157 4,741 10,178 5,998 FRESNO 1,658,281 236,023 1,128,834 96,321 995 113,899 60,455 21,754 GLENN 40,167 18,807 17,448 2,247 22 196 529 918 HUMBOLDT 139,692 81,683 26,975 3,520 333 4,609 14,004 8,568 iMPERIAL 339,506 20,561 271,081 13,089 78 27,503 5,951 1,243 I NYO 17,699 9,077 4,573 253 18 25 1,898 1,855 KERN 1,549,594 304,009 950,281 99,580 2,181 116,621 53,252 23,670 KINGS 282,364 61,791 175,635 9,218 309 21,719 8,637 5,055 LAKE 109,488 57,945 29,543 1,217 76 6,120 10,977 3,610 LASSEN 39,510 25,408 7,295 254 457 3,320 1,473 1,303 LOS ANGELES 11,423,198 2,163,318 7,079,074 1,121,185 29,314 717,093 104,295 208,919 MADERA 302,859 74,462 195,902 5,989 163 16,691 6,896 2,75R MARIN 225,127 MARIPOSA 25,45( MENDOCINO 118,621 MERCED 625,31-~ MODOC 7,99.c MONO 18,86; MONTEREY 654,847 NAPA 221,465 NEVADA 155,161 ORANGE 3,702,641 PLACER 657,385 PLUMAS 19,413 RIVERSIDE 4,305,161 SACRAMENTO 2,858,427 SAN BENITO 105,032 127,135 54,205 25,041 365 6,286 5,049 6,546 16,287 6,966 98 21 110 1,355 619 49,224 52,520 3,967 102 2,545 6,763 3,500 194,940 372,001 27,577 489 10,744 6,183 13,379 5,585 1,128 49 7 57 586 587 10,733 7,190 237 10 56 207 429 123,397 459,215 33,568 2,343 19,874 3,795 12,655 76,472 107,849 14,941 466 9,535 8,390 3,813 130,695 12,235 3,520 62 899 5,080 2,670 1,057,520 1,970,726 514,090 14,060 43,649 24,960 77,636 462,017 93,616 46,360 436 24,550 16,661 13,745 14,786 2,754 284 14 446 506 623 570,757 3,023,926 216,391 14,352 351,503 67,129 61,103 600,593 990,406 521,254 25,938 471,725 166,335 82,176 35,754 64,083 2,997 72 755 285 1,086 SAN BERNARDiNO 3,289,254 164,014 2,359,043 270,880 16,812 387,056 36,340 55,109 SAN DIEGO 4,506,099 1,272,446 2,137,878 650,518 31,822 233,382 66,367 113,686 SAN FRANCISCO 706,192 299,562 111,291 234,807 4,802 32,319 2,947 20,464 SAN JOAQUIN 1,707,599 352,044 966,852 189,541 4,915 130,282 33,026 30,939 SAN LUIS OBISPO 343,548 155,880 142,032 25,515 318 7,776 5,946 6,081 SAN MATEO 826,342 280,795 314,810 175,873 11,894 13,739 3,283 25,948 SANTABARBARA 481,840 100,634 325,919 22,525 1,605 6,928 5,925 18,304 SANTA CLARA 2,325,538 636,867 999,052 565,935 5,078 50,191 10,443 57,972 SANTACRUZ 293,350 113,139 151,680 17,204 328 2,930 1,364 6,705 SHASTA 334,348 149,630 78,231 22,689 235 14,812 61,257 7,494 SIERRA 4,895 SISKIYOU 43,045 SOLANO 830,830 SONOMA 796,792 STANISLAUS 941,562 SUTTER 154,210 TEHAMA 88,00~ TRINITY 12,92~ TULARE 867,48; TUOLUMNE 72,26~ VENTURA 1,071,905 YOLO 407,691 YUBA 125,65C CALIFORNIA 54,777,700 Department of Finance Demographic Research Unit May 2004 4,409 192 180 3 6 83 52 31,026 7,221 690 54 461 1,990 1,603 136,065 386,836 113,933 10,314 116,554 34,985 32,143 421,596 250,692 54,688 6,103 18,136 30,154 15,423 280,601 518,520 46,662 3,908 39,409 30,120 22,347 150,912 628,878 197,777 6,473 12,566 50,630 24,649 107,258 218,347 53,697 2,718 9,634 9,911 6,126 70,866 32,068 10,676 740 4,643 2,277 4,380 12,755,395 29,386,940 6,617,904 237,190 3,500,358 1,130,654 1,149,259 44,779 60,632 33,267 232 5,423 7,058 2,819 38,163 40,500 1,749 40 996 4,798 1,760 9,656 1,439 105 15 52 681 975 169,524 641,242 15,748 366 22,976 10,969 6,657 54,684 7,948 1,011 72 1,310 5,416 1,824 ITEM NO. 11f DATE: April 4, 2007 AGENDA SUMMARY REPORT SUBJECT: SET DATES FOR FISCAL YEAR 2007-08 BUDGET HEARINGS SUMMARY: The City Council typically sets two days in the last week of June for departmental presentations, public input and Council discussion and adoption of the upcoming fiscal year's proposed budget. Staff is requesting Council direction on the preferred dates for Fiscal Year 2007-08 budget hearings. Due to a potential conflict later in the week, Councilmember Baldwin is requesting hearings be held on Monday and Tuesday (June 25~h and 26th). Staff recommends setting June 25th and 26~h as the dates for the Fiscal Year 2007-08 budget hearings. RECOMMENDED ACTION: Set June 25th and June 26, 2006 as dates for the Fiscal Year 2007-08 Budget Hearings and authorize the City Clerk to notice Public Hearing prior to hearings. ALTERNATIVE COUNCIL POLICY OPTIONS: Choose alternate dates for budget hearings and authorize the City Clerk to notice Public Hearing prior to hearings. Citizen Advised: N/A Requested by: N/A Prepared by: Sue Goodrick, Risk Manager/Budget Officer Coordinated with: Candace Horsley, City Manager Candace Horsley, City M~ager AGENDA ITEM NO: llg MEETING DATE: April 4, 2007 SUMMARY REPORT SUBJECT: DISCUSSION AND POSSIBLE ACTION ON "STYLE" OF CITY COUNCIL MEETING MINUTES BACKGROUND: Minutes for City Council, Planning Commission and other City Commissions and Committees are currently kept in narrative style which requires significant staff time. Because of the time consuming nature of providing narrative style minutes and keeping current with other duties, staff has frequently fallen behind on providing the minutes in a timely fashion. An alternative would be to keep "action minutes" which would focus on action taken rather than attempt to provide a narrative of the discussion. Currently, City Council meetings are available on DVD or recorded, and all other minutes are recorded and available to the public. Possible options include devoting more staff resources to producing the minutes or revising the style of minutes to reflect actions actually taken or direction given. Past Councils have opted in favor of continuing narrative style minutes. Changing to action style minutes will result in more timely minutes and represent a significant savings in staff time that can be devoted to other duties. Mayor Rodin and Councilmember McCowen are requesting that Council discuss this issue and recommend directing staff to begin keeping "action minutes" for the City Council and for all City commissions and committees, at least on a test basis. If the new system proves unsatisfactory, it can be changed back. RECOMMENDED ACTION: DIRECT STAFF TO BEGIN KEEPING "ACTION MINUTES" FOR THE CITY COUNCIL AND FOR ALL CITY COMMISSIONS AND COMMITTEES. ALTERNATIVE COUNCIL POLICY OPTIONS: Provide staff with alternative direction. Requested by: Mayor Rodin and Councilmember McCowen Prepared by: Councilmember McCowen Coordinated with: Candace Horsley, City Manager Approved: '~ ~anager 3/21/07 TO: City Council From: Stacey Sheldon Re: Ordinance to Ban Skate Boarding in our Neighborhood Dear Council, I respectfully request that the Traffic Engineering Committee impose an ordinance to ban skate boarding in our neighborhood. The tranquility of our downtown neighborhood has been lost to the continual activities of skaters who frequent the corner of Stephenson and Bush for hours at at time. A new neighbor allows all skaters to use his property for the recreational activity. Over the past five months, the news has spread to the entire skating community that the property is viable for skating. Consequently, there are on average eight to twelve skaters at atime who skate from 2-5 p.m regularly on weekdays, and all day on the weekends. The noise is cacophonous! The neighbor is unwilling to regulate the skating, and while he is away at his office all day, the neighbors who stay at their homes experience extreme duress due to the constant bangs and crashes of multiple' skateboards grinding and smashing into the pavement for hours on end. Here are reasons why our neighborhood desperately needs this ordinance: 1.dally skating activities with 8-12 skaters, lasting up to five hours at a time, cause unusual noise which disturbs the peace and quiet of or neighborhood and great discomfort and annoyance to the neighborhood 2. the property owner is unwilling to stop or regulate the skating and is in violation of city ordinance 6058 &police, mayor and community members have been unable to sway the property owner to respect the needs of the neighborhood 4.neighborhood is two blocks from downtown area, so skaters are now regularly skating from plaza to our neighborhood along street and sidewalk - neighborhood has one baby (who needs naps and a 7 p.m. bed time) a senior citizen of ninety who is distressed by the noise, a bed and breakfast business where guest are offended by the racket 5. neighbors are very reluctant to file a citizen's arrest as property owner is an attorney and will most likely counter with a false arrest charge I urge you to seriously consider this request and appreciate any help you might offer. Sincerely, Stacey Sheldon ITEM No: 11e MEETING DATE: April 4, 2007 ATTACHMENT 3 Issues in the EI'S report: 1. The EPS report does interpret data or draw its conclusions in light of the communit}- vision (summarized in the bullets above). \X'ithout an economic analysis that responds to the community vision, we will almost certainly Fail to achieve that vision. 2. The study area for the F.PS report is the unincorporated area of the Valley and does not, for the most part, consider how to integrate development between the Citv and surrounding county areas (p. 2). 3. The EPS report is often not clear in explaining how numbers in the study line up or where they come from. For example, retail sales growth rates appear to be inconsistent~l.8°io is indicated on p. 7 but 1.29°'o is used in Table 10 (p. 30). It is not clear if this is due to a difference in the time periods considered ox is the result of confusion between City and study area data. 4. The EPS used old population growth projection data supplied by MCOG, the source of which is not indicated. Those data project a significant increase in population growth from historical rates-from 1°-'o annually between 1990 2005 to 1.63°'o by 2020 (p. 10). Current Department of Finance (DOF) data indicate that the area growth rate has been in decline and do not predict a surge as the report suggests. Reducing the growth rate to the current DOF rates affects much EPS's subsequent analysis. For example, using the inaccueate population projections, the study assumes that 37°j° of the population is employed, and then projects that there will be 11,456 new jobs in the area between 2005 and 2020 that may require land Eor new buildings somewhere in the County. (Table 2, p. 14 and'I'able 2Q p. 46.) 5. Applied Development Economics (ADE) conducted a study for the City of Ukiah in 20112. This study found that our area needs more jobs relative to existing housing. It recommended steps to be taken to increase the job base to rectify the imbalance. Although it reviews the same type of data that ADE reviewed, EPS does not consider the relationship between jobs and housing. Instead, EPS simply projects a steady growth of both based on population growth. Thus, implementing the growth that EPS projects would maintain the same imbalance that exists coda}' and would encourage the expansion of this area as a bedroom community. The EPS study should be modified to reflect the ADE information so that it indicates, fox example, the level of business growth that would need to occur locally- to justify additional residential housing expansion and recommends measures to establish and maintain a healthy job to housing ratio. The "journey-to-work" flow data suggest there axe a small number of people who commute into the Ukiah Valley "primarily from Lake County" because the valley has more jobs than people. However, it also finds that there is an almost equal number of people who commute out of the Ukiah Valley to "points south along the 101 corridor." The EPS study does not reconcile these findings with the ADR study nor does it explore causes and inconsistencies. For example, why do so many people commute into the Valley instead of living here given our 12.6"b vacancy rate (p. 40 of the EPS report)? One plausible explanation is that we actually have a shortage of housing that the people who already work here can afford. And many of the people who can now afford to buy in the Ukiah Valley are the ones who are commuting to "points south along the 101 corridor." Thus, this section of the EPS study supports the conclusion of the ADK study-that we need job development as a priority and that the priority for new housing development should be housing that is affordable to those already employed here. 1'o provide meaningful guidance for land use planning in the Ukiah Valley, the EPS study should consider these issues. 6. Even using the over-optimistic population growth projections, the EPS study concludes that there is no need to increase residentially zoned land to accommodate projected growth in the study area (p. 44). Participants in the March 10~h community workshop were not informed of that finding. Moreover, the study does not consider if vacant and underutilized space within the Ciry of Ukiah can or should be used to absorb some or all of the projected population increase. To be consistent with the vision fox the U VAP, that should have been an explicit part of the discussion on March 10~h. F,PS concludes (based on the overly high population estimates) that demand of 216 acres for residential development is met by current 616 acres of developable residential land in the study area. BUT THE STUD' AREA DOES NO1' COUNT WHAT IS AVAILABLE WITHIN THE CI"iY LIMITS! 7. F.PS uses the faulty population projections to estimate future building development for economic sectors such as retail, manufacturing and service industries (using an unsourced figure of 8.3°io to represent the fraction of labor in the study area, Table 20, p. 36). Ultimately, these projections do not consider what portion of this development can or should happen within the City. 8. The EPS projections fox development requirements also appear to be inconsistent with the community vision. For example, people at the March 10~h workshop were asked to place on the Ukiah Valley map to 700,000 square feet of "regional retail" For the Ukiah Valley. Yet, the EPS study suggest along-range capacity of less than 400,000 square feet of total retail space of all types for the County as a whole. Thus, the 700,000 square feet figure that the community was asked to assume for planning appears to be inconsistent with the goals of becoming sustainable and remaining a small, rural community. 9. EPS concludes (again, with faulty population figures) that 9 acres of industrial land, 10 acre: of commercial, and 3 acres of retail axe required to accommodate job growth. Again, this excludes an evaluation of the City's capacity to accommodate this need with existing vacant buildings, or vacant/underutilized land (p. 44). 10. The study assumes that there will be a new shopping center in the area that "will draw sales From existing retailers in Ukiah" but it provides no information fox the City or the community to assess the effect of this new retail development (p. 35), nor does it analyze its effects in the context of the community's vision. 11. At the March 10~h meeting, participants were not asked to allocate land for agricultural development, open space, natural resource use, community space or recreation. These would seem to be vital components of any healthy community plan and should be considered equally along with housing, retail, and industrial growth. Planning for retail but not agricultural development in our historically rural area ignores the environmental context of the Ukiah Valley and is not consistent with the vision for the UVAP. 12. Overall, the EPS study suggests that the Ukiah Valley will have limited opportunities for traditional growth through 2020. The study also shows that existing "pipeline" housing projects and retail developments will meet or significantly exceed requirements through 2020 (again, ignoring possible excess capacity within the City of Ukiah). Given what the study shows, it is logical to conclude that we can afford to be very° particular about the development that we allow to ensure that it provides the best potential for new economic development and imposes the least possible economic loss for the Citv and the community (such as being energy efficient, requiring less use of transportation, etc). However, the study does not make any such recommendation. 13. The argument that retail leakage (retail spending outside of the Valley) justifies new retail development in the Ukiah Valley is not supported by the EPS data. The study calculates that there is retail spending potential of $1 billion in the regional market area (that includes Mendocino and Lake Counties). The study also reports that there are sales in the Ukiah Valley totaling $1.3 billion. That means that the amount being spent locally exeeerG the amount available to be spent. Although there is leakage in the apparel category, the data do not indicate a problem with leakage generally. (The overage is probably due to income unaccounted for due to the informal economy.) These calculations indicate that there is no excess spending potential in the Valley. Therefore, if new retail is successful, it will necessarily draw business away from existing stores. 14. At the March 10~h meeting, participants were instructed to consider where development should happen without regard for infrastructure issues, resource availability ox impacts on Ukiah. It is not clear how ox when these important variables will come back into the planning process. But, it seems that the development placement information from the community would need to be reassessed by the community at that time.