Ukiah City Council
June 19, 2024

FIVE YEAR CAPITAL IMPROVEMENT PLAN*
24/25 FISCAL YEAR

WATER RESOURCES
This project will provide an additional source of groundwater to increase our system redundancy during periods of surface water scarcity.

Add'l Comments: Request for Proposal is in progress.

Remove and Replace Seal on Wash Water Basins
Add'l Comments: Moved from FYE 21. Moved from FYE 22, and increased from $40k due to inflation. Moved to FYE 25 due to budgetary constraints.

Revised project name as the basins are in more need of repair. Wash basins can be addressed by staff.

Recondition the levees on the Percolation Ponds.

Add'l Comments: Eliminated $200k for 2 prior years due to COVID-19.

Changing scope of project to excavating bottom of perc ponds and grading.

Revised project name from "Recondition Levees" as well.

Replace the 16" steel water and sewer main, from PZ1 to Bush Street 84427222.80230 $ 1,500,000 Add'l Comments: Moved from FYE 25. Increased overall project amount from $1M. 82127115.80230 $ 1,500,000
$ 2,000,000 - $ 3,260,000 $ - $ - $ 3,000,000 $ 8,260,000 $ The current vehicle's useful is expected to be exceeded in future years and will need to be replaced.

Add'l Comments: Moved from FYE 23. Moved back to FYE 23. Increased amount from $50k due to revising to a 3/4 ton with lift gate, as well as inflation; EV is not an option at this time due to the heavy duty needs. Moved from FYE 23.
$ 3,000,000 Reviewed X
X
IPS Liner
Replacement 84427222.80230
$ 500,000 $ 1,500,000 $ 2,000,000 Reviewed Project # Totals City Council Status Replace Water
Treatment Plant
Service Truck Funding Source Funding Identified Funding Source Add'l Comments Org/Obj Project Name Project Description N/A 935 River Street Deferred Water Fund Yes $ 70,000 24/25 25/26
WATER RESOURCES DEPARTMENT Shovel Ready VEHICLES, MACHINERY & EQUIPMENT SUB-TOTAL: Reviewed
$ 60,000 N/A 300 Plant Road New Wastewater Fund Yes $ 60,000 Reviewed X 18192 Replace Water and
Sewer Main - PZ1
to Bush
$ 200,000 Recondition Perc
Ponds 84427222.80230 18447 NA 300 Plant Road Allocation to Multi-funds Develop Additional
Groundwater
Facilities 82227115.80230 18425 N/A TBD New Water Fund No TBD N/A Bush Street New Water Project Location Project Status 82127115.80100 V3754 Costs to date 28/29 26/27 27/28
$ 70,000
X Reviewed Yes
$ 200,000 New Wastewater Fund Yes
*Refer to last page of this document for definition of terms used. PAGE 2

FIVE YEAR CAPITAL IMPROVEMENT PLAN*
24/25 FISCAL YEAR

WATER RESOURCES
This project will replace chlorine gas at the Water Treatment Plant and convert to Liquid Chlorine for safety reasons
Add'l Comments: Was budgeted FYE 20, moved to start in FYE 21 due to COVID-19. Moved $270k from FYE 22. Moved $50k from FYE 21. Moved $50k from FYE 22. Moved from FYE 23. Move from starting FYE 24.

Upgrade aged meter in order to provide increased service efficiency.

Add'l Comments: Ongoing - reduced FYE 21 from $50k, added $50k to FYE 24 due to COVID-19. Added funding for FYE 25 and 26. Removed $50k from FYE 22, FYE 23, and FYE 26. Scope being re-evaluated against other projects going on.

The current vehicle's useful is expected to be exceeded in future years and will need replaced 82027114.80100 Water Fund $ 40,000
Add'l Comments: Increased amounts in both Water and Sewer from $30k each due to inflation. EV is not an option at this time due to the heavy duty needs.

Moved from FYE 23. 84027221.80100 Sewer Fund $ 40,000
The current vehicle's useful life is expected to be exceeded in future years and will need replaced 82027114.80100 Water Fund $ 22,500
Add'l Comments: Increased amounts in both Water and Sewer from $20k each due to inflation. Electric vehicle. Moved from FYE 24. 84027221.80100 Sewer Fund $ 22,500 The current equipment is Equipment #1611, a 1995 CAT CB214C Roller. This is CARB Tier 0, and a retrofit for this unit is unavailable. This equipment assists in the ongoing maintenance of the Streets network in order to provide upgraded facilities for our residents. Three divisions will contribute: $66,000 total 82027114.80100 Water Fund Department plans to set aside funds for
this replacement.
$ 22,000
Add'l Comments: Moved from FYE 23 due to COVID-19. Working with PW and Fleet on evaluation. Moved from FYE 24. Moved from FYE 25. 84027221.80100 Sewer Fund Department plans to set aside funds for
this replacement.
$ 66,000 Reviewed $ 88,000
$ 50,000
X
$ 50,000 Reviewed
X
X
$ 80,000 Reviewed
$ 270,000 50,000 $ Yes 1320 Airport Road Deferred Yes
Water Meter
Replacements 82027114.80100 18074 N/A Various
Replace
Water/Sewer
Operations Lead
Worker Truck -
Shared Cost TBD Yes 1320 Airport Road
Replace
Water/Sewer
Operations Call
Truck - Shared Cost V3753
Asphalt Roller -
Shared Cost New Yes
Convert Chlorine
Gas to Liquid
Chlorine at Water
Treatment Plant 82127115.80100 18133 N/A 935 River Street Deferred Water Fund Yes E1612 Reviewed X X Yes 1320 Airport Road New Yes
$ 45,000
$ 320,000 Reviewed New Water Fund Yes
*Refer to last page of this document for definition of terms used. PAGE 3

FIVE YEAR CAPITAL IMPROVEMENT PLAN*
24/25 FISCAL YEAR

WATER RESOURCES
The current equipment is Equipment #1811, a 1998 LeeBoy Model 1000B Paver. This is a CARB Tier 0, and a retrofit for this unit is unavailable. This equipment assists in the ongoing maintenance of the Streets network in order to provide upgraded facilities for our residents. Three divisions will contribute:
$210,000 total 82027114.80100 Water Fund Department plans to set aside funds for
this replacement.
$ 70,000
Add'l Comments: Moved from FYE 23 due to COVID-19. Working with PW and Fleet on evaluation. Moved from FYE 24. Moved from FYE 25. 84027221.80100 Sewer Fund Department plans to set aside funds for
this replacement.
$ 70,000
Methane Scrubbers are needed in order to clean the methane gas to provide an alternate energy source to operate the boilers at the Wastewater Treatment Plant, which will in turn decrease the City's energy cost at the plant.

Add'l Comments: Moved from FYE 22 due to COVID-19.

Replace Ford Ranger at the Wastewater Treatment Plant.

Add'l Comments: (Not on CIP during rate study.) Moved from FYE 21 due to COVID-19. Moved to FYE 23. Electric vehicle option will be evaluated. Moved from FYE 23, and increased from $40k.

This needs upgrading to install two new pumps, the pump guides, and the discharge valves.

Add'l Comments: Increased total amount from $250k.

A total of five Variable Frequency Drive replacements at high service pump station and raw water pump station.

Add'l Comments: Decreased amount in FYE 24 from $200k.
2 new sodium hypochlorite tanks at the WWTP
Add'l Comments:

Tank with temperature controller and insulation.

Add'l Comments: Decreased amount in FYE 24 from $200k. Tank is in OK condition. Staff will explore the possibility of removing tank need. Moved from FYE 25.
$ 100,000 Reviewed
New Sodium
Hypochlorite Tanks
Bisulfite Tank 84027225.80100 TBD N/A 300 Plant Rd. New Wastewater Fund No District TBD N/A 18355 N/A Various New Water Fund N/A 300 Plant Rd. New 84027225.80100 Wastewater Fund 18446 No $ 100,000 $ 400,000 Reviewed X
$ 20,000 Reviewed
$ 140,000 Reviewed X
$ 100,000
$ 100,000
X
$ 400,000 Reviewed Yes
$ 55,000 Reviewed X
$ 1,500,000 $ 1,500,000 Reviewed X
$ 55,000 New Yes
$ 20,000
Vichy Springs Lift
Station Upgrade
VFD Replacements 82027111.56120
Digester
Rehabilitation and
Methane Scrubber 84027225.80100 18135 N/A 300 Plant Rd. New Sewer Fund Yes Cost will be offset by
savings in the
purchase of natural
gas. Vichy Springs Rd New District Yes
Replace Ford
Ranger 84027225.80100 TBD N/A 300 Plant Rd. Deferred Sewer Fund Yes Asphalt Paver -
Shared Cost E1812 Yes 1320 Airport Road
*Refer to last page of this document for definition of terms used. PAGE 4

FIVE YEAR CAPITAL IMPROVEMENT PLAN*
24/25 FISCAL YEAR

WATER RESOURCES
Part of the dewatering solids process.

Add'l Comments: $50k for design in 23/24, construction to follow. Increased from $50k current fiscal year and $300k in FYE 26 - adding the funds removed for the Heat Exchanger item.

Upgrade the enclosure and electrical components in the structure enclosing the booster pump for Pressure Zone 2 to increase reliability and security.

Add'l Comments: Moved from FYE 23 due to COVID-19. Increased scope, increased estimate from $50k, and moved from FYE 25 due to cost increase.

Replace aluminum screens with stainless steel screens in clarifier.

Add'l Comments:
$ 190,000 - $ 2,450,000 $ 1,300,000 $ 228,000 $ 500,000 $ 4,668,000 $ Project Name
Project Description
Org/Object
Project Number
Allocation to Multifunds
Project Status
Funding Source
Funding Identified
Funding Source Add'l
Comments
Costs to date
Estimated Costs per
Fiscal Year
Totals
Comments
City Council Status
Shovel Ready
X
Replace Screens in
Water Treatment
Plant Clarifiers 82127115.80100 TBD N/A 935 River Street New Water Yes $ 250,000 $ 250,000 Reviewed $ 500,000 $ 500,000 ReviewedRehabilitation of Zone 2 Booster Pump Station 82227113.80100 TBD N/A Golf Course New Water Fund Yes Solids Conveyor 84027225.80100 18427 N/A 300 Plant Rd. New Wastewater Fund No $ 950,000 $ 950,000 Reviewed Project is ready to be sent out to bid.

To further explain, as necessary, the funding type used selected.

Costs spent on the project.

Costs estimated to be spent in each of the fiscal years.

The sum of the five year estimate for each project.

Additional information as needed.
"Not Reviewed"- First time that Council has been presented the project; "Reviewed" - Council has been presented the project during an agendized meeting; "Explore" - Council has reviewed and has asked staff to further explore; "Reviewed and Supported" - Council has reviewed and supports the placement of the project on the CIP Plan; "Budget Adopted" - Council has approved the project through the Council action that takes place through either the full budget adoption process, or through a specific agendized item brought to Council.

The number assigned to track all expenses related to the project.

Indicates if the cost of the proposed cost is shared. In this case, here it will state what other funds are sharing the cost.

This indicates whether the project is "NEW", "IN PROGRESS", "ONGOING", "DEFERRED", or "COMPLETED".

The Fund the actual expense will come out of.
"Yes" indicating funding has been identified and will be available, "No" indicating funding has not yet been identified and is unavailable.

The name of the project.

Provides a description and additional narrative to assist in the understanding of the need and value of the proposed project.

The proposed account code where the expense will be accounted for.

Definition of terms used:

SUB-TOTAL:
*Refer to last page of this document for definition of terms used. PAGE 5

ESTIMATED COST: $175,000

FLEET MAINTENANCE SUPERVISOR

DEPARTMENT HEAD
ADDITIONAL COMMENTS: N/A
REVIEWED & APPROVED BY:

PROPOSED VEHICLE OR HEAVY EQUIPMENT
JUSTIFICATION/USE/NEED: The standard annual replacement is necessary to keep the Police fleet in service. This is especially important as staff navigates supply chain issues and delays.

PROPOSED EQUIPMENT SPECIFICATIONS (ATTACH ADDITIONAL DOCUMENTATION IF NECESSARY): Based on standard features, and what is available at time of purchase.

ASSET USEFUL LIFE: 5-10 YEARS
VIN/SERIAL #
$87,500
NEW REQUEST OR REPLACEMENT OF EXISTING?: Replacement
Police
Police
FOR FISCAL YEAR: 2024/2025

EXISTING VEHICLE OR EQUIPMENT REQUESTING TO BE REPLACED

ORG & OBJECT ACCOUNT CODE
10020210.80100

DEPARTMENT(S)
Police Patrol TBD 10020210.80100
Vehicle & Heavy Equipment Request & Justification

DIVISION(S)

PROJECT
CODE
ITEM: POLICE CARS - ANNUAL REPLACEMENT - 2 EACH
SUBMITTED BY: Dave Kirch, Fleet & Plant Maintenance Supervisor CURRENT CONDITION: Poor

ESTIMATED OUT-OF-SERVICE TIME PARTS AVAILABLE
ADDITIONAL NEEDED REPAIRS ESTIMATE (IF APPLICABLE) MEET CARB STANDARDS? MODEL

CURRENT MILEAGE/HOURS
Police Patrol TBD $87,500

PROPOSED BUDGETED AMOUNT FOR

EACH DEPT/DIV

ESTIMATED LIFE IN ESTIMATED SALVAGE/RESALE VALUE

MILEAGE/HOURS
CITY EQUIPMENT # YEAR

ORIGINAL PURCHASE PRICE

SIGNATURE DATE
EST. MILEAGE/HOURS PER YEAR
ALTERNATE SOLUTIONS EXPLORED: N/A
OTHER INDIRECT BENEFITS: N/A
COST/BENEFIT ANALYSIS: N/A

MAINTENANCE COSTS TO DATE
ATTACHMENT 3

ESTIMATED COST $60,000.00

FLEET MAINTENANCE SUPERVISOR

SIGNATURE DATE
EST. MILEAGE/HOURS PER YEAR
Unknown
$10,000
ALTERNATE SOLUTIONS EXPLORED: N/A
OTHER INDIRECT BENEFITS: N/A
COST/BENEFIT ANALYSIS: EV vehicle lower maintenance cost to maintain.

JUSTIFICATION/USE/NEED: This vehicle we be used on a daily basis to perform building and grounds maintenance of all City-owned buildings and properties. Already tried to replace once, and now renewing budget to attempt to purchase again.

PROPOSED EQUIPMENT SPECIFICATIONS (ATTACH ADDITIONAL DOCUMENTATION IF NECESSARY): 2024 FORD F-150 EV PRO Truck or Equal

MAINTENANCE COSTS TO DATE

PROPOSED BUDGETED AMOUNT FOR

EACH DEPT/DIV

ESTIMATED LIFE IN ESTIMATED SALVAGE/RESALE VALUE

MILEAGE/HOURS
CITY EQUIPMENT # YEAR

ORIGINAL PURCHASE PRICE
3760
MODEL

CURRENT MILEAGE/HOURS
Building Maintenance V3286 20822700.80100 $60,000.00

ESTIMATED OUT-OF-SERVICE TIME PARTS AVAILABLE
ADDITIONAL NEEDED REPAIRS ESTIMATE (IF APPLICABLE) MEET CARB STANDARDS? None
100,000 miles
REVIEWED & APPROVED BY:

Public Works

DEPARTMENT(S)

PROPOSED VEHICLE OR HEAVY EQUIPMENT
59,670
Yes
CURRENT CONDITION: Poor
$1,500.00
Vehicle & Heavy Equipment Request & Justification

DIVISION(S)

PROJECT
CODE
ITEM: Ford F-150 Pick-up EV
SUBMITTED BY: Dave Kirch, Fleet & Plant Maintenance Supervisor 80 After Market
FOR FISCAL YEAR: 2024/2025
1997 Dodge

EXISTING VEHICLE OR EQUIPMENT REQUESTING TO BE REPLACED

ORG & OBJECT ACCOUNT CODE

DEPARTMENT HEAD
ADDITIONAL COMMENTS: None
2,000 to 3,000
ASSET USEFUL LIFE: 10-15 years
1B7HC16X7VS184613
VIN/SERIAL #
NEW REQUEST OR REPLACEMENT OF EXISTING?: Replacement

ESTIMATED COST $444,500

FLEET MAINTENANCE SUPERVISOR

DEPARTMENT HEAD
ADDITIONAL COMMENTS: None
ASSET USEFUL LIFE: 5-7 years
N/A
VIN/SERIAL #
Ambulance TBD
$112,500.00
NEW REQUEST OR REPLACEMENT OF EXISTING?: New Request

N/A N/A
FOR FISCAL YEAR: 2023/2024

N/A N/A

EXISTING VEHICLE OR EQUIPMENT REQUESTING TO BE REPLACED

ORG & OBJECT ACCOUNT CODE
Ambulance TBD
$112,500.00
UVFA Ambulance TBD
Vehicle & Heavy Equipment Request & Justification

DIVISION(S)

PROJECT
CODE
ITEM: 2024 RAM Pro Master 2500 Ambulance
SUBMITTED BY: Dave Kirch, Fleet & Plant Maintenance Supervisor REVIEWED & APPROVED BY:

UVFA

DEPARTMENT(S)
UVFA

PROPOSED VEHICLE OR HEAVY EQUIPMENT
N/A
UVFA
N/A
CURRENT CONDITION:

N/A

ESTIMATED OUT-OF-SERVICE TIME PARTS AVAILABLE
ADDITIONAL NEEDED REPAIRS ESTIMATE (IF APPLICABLE) MEET CARB STANDARDS? N/A
N/A
MODEL

CURRENT MILEAGE/HOURS
$112,500.00
$112,500.00
TBD
TBD
TBD
TBD
Ambulance TBD
JUSTIFICATION/USE/NEED: Support Adventist IFT (Inter-Facility Transfer) Contract PROPOSED EQUIPMENT SPECIFICATIONS (ATTACH ADDITIONAL DOCUMENTATION IF NECESSARY): 2024 RAM Pro Master 2500 Ambulance

MAINTENANCE COSTS TO DATE

PROPOSED BUDGETED AMOUNT FOR

EACH DEPT/DIV

ESTIMATED LIFE IN ESTIMATED SALVAGE/RESALE VALUE

MILEAGE/HOURS
CITY EQUIPMENT # YEAR

ORIGINAL PURCHASE PRICE
N/A

SIGNATURE DATE
EST. MILEAGE/HOURS PER YEAR
N/A
N/A
ALTERNATE SOLUTIONS EXPLORED: N/A
OTHER INDIRECT BENEFITS: N/A
COST/BENEFIT ANALYSIS: N/A

ESTIMATED COST $85,000.00

FLEET MAINTENANCE SUPERVISOR

DEPARTMENT HEAD
ADDITIONAL COMMENTS: None
5,000-7,000 miles
ASSET USEFUL LIFE: 10-15 years
1FDNF205X7EA61120
VIN/SERIAL #
NEW REQUEST OR REPLACEMENT OF EXISTING?: Replacemnet
230 hours Yes
FOR FISCAL YEAR: 2023/2024
2007 Ford

EXISTING VEHICLE OR EQUIPMENT REQUESTING TO BE REPLACED

ORG & OBJECT ACCOUNT CODE
Vehicle & Heavy Equipment Request & Justification

DIVISION(S)

PROJECT
CODE
ITEM: Ford F-250 with Service Body and Lift Gate
SUBMITTED BY: Dave Kirch, Fleet & Plan Maintenance Supervisor REVIEWED & APPROVED BY:

Water Resources

DEPARTMENT(S)

PROPOSED VEHICLE OR HEAVY EQUIPMENT
125,000
Yes
CURRENT CONDITION: Fair
$5,000.00

ESTIMATED OUT-OF-SERVICE TIME PARTS AVAILABLE
ADDITIONAL NEEDED REPAIRS ESTIMATE (IF APPLICABLE) MEET CARB STANDARDS? None
100,000 miles
MODEL

CURRENT MILEAGE/HOURS
Water Treatment Plant TBD 82027110.80100 $85,000.00
JUSTIFICATION/USE/NEED: This vehicle will be used on a daily basis for the operation of the Water Treatment Plant, Water Wells, Reservoirs and Booster Pump Stations. This vehicle will also be used at the On-Call vehicle. This vehicle will also be used for operation and maintenance of the Recycled Water System
PROPOSED EQUIPMENT SPECIFICATIONS (ATTACH ADDITIONAL DOCUMENTATION IF NECESSARY):2024 Ford F250 Service Body and Lift Gate

MAINTENANCE COSTS TO DATE

PROPOSED BUDGETED AMOUNT FOR

EACH DEPT/DIV

ESTIMATED LIFE IN ESTIMATED SALVAGE/RESALE VALUE

MILEAGE/HOURS
CITY EQUIPMENT # YEAR

ORIGINAL PURCHASE PRICE
3746

SIGNATURE DATE
EST. MILEAGE/HOURS PER YEAR
$22,500.00
ALTERNATE SOLUTIONS EXPLORED: N/A
OTHER INDIRECT BENEFITS: N/A
COST/BENEFIT ANALYSIS: N/A

RESOLUTION NO. 2024-x

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH ESTABLISHING THE FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT FOR THE CITY OF UKIAH WHEREAS, pursuant to Government Code Section 7910, the City Council must, by resolution, establish its appropriations limit for each fiscal year.

NOW, THEREFORE, BE IT RESOLVED THAT the appropriations limit for the City of Ukiah for the 2024-25 Fiscal Year shall be fifty-five million, one hundred forty-four thousand, nine hundred seventy-five dollars ($55,144,975). The appropriations subject to this limit are estimated to be nineteen million, six hundred seven thousand, five hundred twenty-four dollars ($19,607,524).

This resolution was adopted by the City Council of the City of Ukiah at a regular meeting thereof on the 19st day of June, 2024, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
______________________________
Josefina Duenas, Mayor
ATTEST:
_____________________________
Kristine Lawler, City Clerk
Attachment 4

EXHIBIT A
Gann Limit Calculation
FY 2024-25
Per Capita Cost of Living Change = 3.62 percent
Population Change(1) = -0.08 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 (a) 100
Population converted to a ratio: -0.08 + 100 = 0.9992 (b) 100
Calculation of factor for FY 2024-25: (a) x (b) = 1.0354 (c) Appropriations Limit, Fiscal Year 2023-24 53,261,075 $ (d) Appropriations Limit, Fiscal Year 2024-25 55,144,975 $
[(c) x (d)]
FY 2024-25 appropriations subject to Gann Limit
Budget Estimates
$ 3,888,230
6,800,143
Measure S/P District Tax 3,445,888
Measure Y District Tax 3,383,024
1,562,500
510,500
800
16,439
$ 19,607,524

35.56%
(1) When calculating its appropriation limit, the City may use either the change in population for the City or Mendocino County as a whole.

Business license tax
Percentage Use of Appropriations Limit
Tax Revenue
Other governmental taxes
Interest earning from taxes
Property tax
Sales tax (1.0% Bradley-Burns)
Transient Occupancy Taxes (TOT)

Budget
Workshop
Fiscal Year 2024-25 (2025)
June 3, 2024
Daniel Buffalo | Finance Director
Sage Sangiacomo | City Manager
Sheri Mannion | HR/Risk Management Director
Mary Horger | Financial Services Manager
Attachment 5

Agenda
Budget
development
process
City-wide overview
and highlights
• Revenues and
economic forecasting
Major Operating
Funds Fire Authority
Measure P FTE and Personnel Indirect cost
allocation
Schedule for
remaining budget
workshops
CIP Review and
Input Measure Y
Departmental
Presentations
(Tranche 1)
2 Attachment 5

Budget
Process
Budget
Schedule
Developed
(December) Budget Memo
and Instructions
Distributed
(January)
Personnel and
capital requests
(February)
Mid-Year Review
with Council
(February - April)
Budget Open to
Departments for
Entry (March)
Analysis Period
(April)
City Manager
Revisions
(May)
Budget
Document Draft
Development
(May)
Council Review
and
Consideration
(June)
Adoption (June)
Amendments
(throughout the
year)
3 Attachment 5

Budget Team
Primary Budget Team
Sage Sangiacomo, City Manager
Daniel Buffalo, Finance Director
Sheri Mannion, HR/Risk Management Director
Mary Horger, Financial Services Manager
Olga Keough, Controller
Diana Ramos, Assistant Accountant
Departmental Budget Teams
Supporting Team
Kristine Lawler, City Clerk
Shannon Riley, Deputy City Manager
Traci Boyl, Management Analyst
4 Attachment 5

City-wide Overview and Highlights
Attachment 5

Fund Facts
Number of:

Funds (budgeted): 103 (69)
Departments: 16
Divisions: 55
Accounts: 2,594
6 Attachment 5

Objectives for 2024-
25 Budget
• Outcomes based: maintain current
service levels
• Aligning revenues with cost of service
• Rates, charges, and fees
• Grants
• Prepare for new partners and new
customers
• UVWA
• Annexations
• Expenditure control
• Completion of capital projects
7 Attachment 5

Key
Takeaways
• Budgets are about tradeoffs
• Revenues:
• Slower revenue growth in the general fund
• Sales taxes down from prior year but expected to stabilize and grow • Faster revenue growth in the utility funds
• Caveat: sewer rates need revision
• Costs:
• Personnel costs are up
• Other operating and fixed cost expenditures are adjusted down • Capital expenditures trending down as grant funded projects conclude • Recruitment and retention remains a high priority
• Positioning funds to respond to market forces
• Team member development
• Appropriations for capital projects remain significant • Economic conditions are uncertain
• Inflationary cost pressures: fuel, energy, labor
• Political conditions are uncertain
• Ballot initiatives in November can significantly affect City revenue streams and annexation plans
• New positions added to address increasing workload and service delivery • We’re small but complex
8 Attachment 5

Big Picture
City-Wide
(All Funds)
Revenues
Appropriations
(with anticipated encumbrances)
(with full allocation)
Estimated ending fund balance/working capital:
(with fiduciary funds)
$148.4 mil
$104.5 mil
($156.1 mil)
($174.6 mil)
$92.9 mil
($100.2 mil)
9 Note: Fiduciary funds (UVFD, RDA Successor, MSWMA, Millview Water, Redwood Valley Water)
9 Attachment 5

City-Wide
Revenues
10 Attachment 5

City-Wide (cont)
Appropriations by
Character
(Excluding Indirect
Allocation)
11 Attachment 5

City-Wide (cont)
Appropriations by
Activity
(Excluding Indirect
Allocation)
12 Attachment 5

City-Wide (cont)
Appropriations by
Activity
Governmental
13 Attachment 5

City-Wide (cont)
Revenues
14 Attachment 5

Major operating funds
General Fund
Water
Wastewater
Electric
15 Attachment 5

General fund
16 Attachment 5

General Fund
Summary
• Revenues $32.9 million
• Expenditures $29.8 mil
• Other financing sources $804K
• Other financing uses $3.1 mil
• Estimated ending fund balance $11.9 mil
• Fund balance reserve 40.8%
• % of expenditures
• Minimum established by Council: 25%
17 Attachment 5

General
Fund
Revenues
18 Attachment 5

General
Fund (cont
)
Appropriations by
Activity
19 Attachment 5

General
Fund (cont
)
Appropriations by
Character
20 Attachment 5

General
Fund (cont
)
Direct Appropriations
21 Attachment 5

General
Fund (cont
)
Fund Balance
22 Attachment 5

Electric
Enterprise
23 Attachment 5

Electric Enterprise
Summary
• Revenues $30.9 million
• Expenditures $31.9 mil
• Estimated ending fund balance $12.5 mil
• Working capital reserve % 39.18%
24 Attachment 5

Electric
Enterprise
Revenues and Other
Inflows
25 Attachment 5

Electric
Enterprise
(cont)
Appropriations by
Character
26 Attachment 5

Electric
Enterprise (cont)
Working Capital
27 Attachment 5

Electric Enterprise
Billing Receivable Analysis
28 Attachment 5

Water Enterprise
29 Attachment 5

Water Enterprise
Summary
• Revenues $40.8 million
• Other sources $300K
• Expenditures $40.3 mil
• Estimated ending fund balance $9.9 mil
• Working capital reserve % 25%
30 Attachment 5

Water
Enterprise
Revenues and Other
Inflows
31 Attachment 5

Water
Enterprise
(cont)
Appropriations by
Character
32 Attachment 5

Water
Enterprise (cont)
Working Capital
33 Attachment 5

Wastewater
Enterprise
34 Attachment 5

Wastewater
Enterprise Summary
• Revenues $10.7 million
• Expenditures $13.3 mil
• Other financing sources $1.3 mil
• Estimated ending fund balance $393K
• Working capital reserve % 3%
• Assumes a rate adjustment in October
35 Attachment 5

Wastewater
Enterprise
Revenues and Other
Inflows
36 Attachment 5

Wastewater
Enterprise (cont)
Appropriation by
Character
37 Attachment 5

Wastewater
Enterprise (Cont)
Working Capital
38 Attachment 5

Ukiah Valley Fire
Authority (UVFA)
Partnership Between City of Ukiah and Ukiah
Valley Fire District
39 Attachment 5

UVFA
Activities
40 Attachment 5

UVFA (cont)
UVFA
Expenditures Over
Time
41 Attachment 5

UVFA (cont)
Contribution
Share
Note: does not include revenues generated by joint fire activities (e.g. grants, OES reimbursements, charges for service), ambulance services, or field crew operations. 42 Attachment 5

Measure P
43 Attachment 5

Measure P Revenue v. Expenditures
44 Attachment 5

Measure P
(cont)
Police Personnel
50 FTE (32 Sworn)
45 Attachment 5

Measure P
(cont)
Fire Personnel

51.8 FTE
Increase of 23 FTE from 2023
46 Attachment 5

Personnel
FTE Changes
47 Attachment 5

Our Team
FTE Count
323.31 FTE
• Up 21.88 from FY 2023
48 Attachment 5

Our Team (cont)
FTE Count by Class
49 49
Attachment 5

Our Team (cont)
FTE by Department
50 Attachment 5

Our Team
(cont)
FTE Changes by Class
51 Attachment 5

Personnel FTE Changes
52 Attachment 5

Personnel Reclasses
53 Attachment 5

Indirect Cost Allocation
54 Attachment 5

The Plan
Indirect Cost Allocation
55 Attachment 5

What is it?
Indirect Cost Allocation
• Used to allocate indirect costs to
direct cost centers
• Direct costs + indirect costs = total
cost
• Effectively an accounting and
reporting function
• Not an offset of general fund costs
• No one way to allocate
• Basic principles:
• Logical
• Consistent
• Reasonable
56 Attachment 5

Basis and
Methodology
Administrative and Overhead Basis of Allocation
City Council % of Budget
City Manager % of Budget
City-Wide Admin Services % of Budget
Community Outreach/PIO % of Budget
City Clerk % of Budget
Economic Development % of Budget
Emergency Management % of Budget
Disbursements (AP, Payroll) % of Budget
Accounting and Budgeting % of Budget
City Attorney % of Budget
City Treasurer Prior Year Interest
Human Resources FTE
Grant Program Management % of Budget
Internal Services
Worker's Comp % of Salary
Insurance Liability Risk assessment
Garage Labor and parts
Purchasing Contractual services and supplies
Billing & Collections Billable revenues
Dispatch Call volume
Buildings, Grounds, and Corp Yard Square footage and total budget Information Technology FTE
57 Attachment 5

Indirect cost
center
budget and
allocations
58 Attachment 5

Indirect Rate
Note: allocations have been discounted for increased fuel, utility, and power purchase costs.

Internal Services 11.28%
Admin and overhead 5.47%
Total 16.75%
59 Attachment 5

Indirect Cost Allocation
Plan Review Project
• Finance completed preliminary review of indirect cost centers • Focused on:
• City Manager’s Office
• City Attorney
• HR
• Accounts Payable (Finance)
• Payroll (Finance)
• Procurement (Finance)
• IT
• Applied an alternate measurement methodology to compare to current methodology • Preliminary results analyzed
• Alternative allocation generally mirrors current allocation 60 Attachment 5

Indirect Cost
Allocation
Plan Review
Project
• Certain costs have increased at a faster rate than others • Discounted these commodity values in the 2025
allocation
61 Attachment 5

CIP Review and Input
62 Attachment 5

CIP
By Category
63 Attachment 5

CIP
By Department
64 Attachment 5

CIP
By Fund
65 Attachment 5

Measure Y
66 Attachment 5

Measure Y
Uses
67 Attachment 5

Measure Y
(cont) Uses
68 Attachment 5

Remaining Budget
Schedule
69 Attachment 5

Remaining Schedule
June 4 Departmental budget presentation (cont), 3:00 PM start June 5 (tentative) Departmental presentations (cont), if needed, 3:00 PM start June 19 Further consideration and adoption
July 17 Completed document on consent calendar (receive and file) Key Dates
70 Attachment 5

Questions
71 Attachment 5

Recognition
7th Consecutive Year
72 Attachment 5

Fin
Attachment 5

1 BUDGET APPROVAL AGREEMENT
This Agreement is entered on July 1, 2024, in Ukiah, California, between the City of Ukiah (“City”), a general law municipal corporation, and the Ukiah Valley Sanitation District (“District”), a county sanitation district.

1. The City and the District agree to approve as shared costs of the Combined CITY/DISTRICT Sewer System (“Combined System”) for fiscal year 2024-25 the City budget for direct expenditures of personnel, operations, and capital outlay, and the indirect expenditures of internal service use of the Wastewater Enterprise, as set forth in the attached Exhibit A.

Total direct operating budgeted costs, defined as costs of Personnel and Operations in Exhibit A of $[4,726,636] as well as an Operating Indirect Rate (“OIR”) on such costs of 14.20% and increased shared insurance premiums $[1,181,244] for a total operating budgeted estimate of $[5,907,880] will be shared [ ]% District and [ ]% City. This share is for 2024-25 fiscal year and will be effective July 1, 2024.

Total direct costs of $[1,443,173] for Capital Outlay, including encumbrances to be expended in the 2024-25 fiscal year in Exhibit A will be funded by both the City and District at [ ]% District and [ ]% City, as well as an Indirect Rate on such costs incurred not to exceed

9.0%, which is the five-year average of Indirect Costs incurred and budgeted by the Combined System related to purchasing, insurance, and other applicable indirect costs, excluding administrative and overhead. This rate will be referred to as the Capital Indirect Rate (“CIR”).

The City and District will use the CIR on all Capital Outlay with costs less than $200,000 unless either party desires to negotiate the rate for any individual project. The indirect rate will be negotiated for projects over $200,000 based on an estimate of required indirect costs to complete the capital project. The City Engineer or City’s Water Resources Director will communicate verbally or in writing to the District Manager when such expenditures are expected to accrue. The District will pay to the City the District’s share of the cost for an approved capital expense within fifteen (15) days of the date of an invoice given to the District for that expense. On and after the effective date of this Agreement, any portion of capital projects paid by the District will be capitalized on its books as intangible assets and depreciated.

The shared costs presented in Exhibit A exclude District and City administrative and other overhead costs allocated directly to the wastewater activities of the City and District. The City and District shall incur 100% of each agency’s own administrative and other costs not shown on Exhibit A.

2. For any costs incurred for District-only activities or projects (e.g. a main line replacement of a District asset), that the City is required to perform or contracted to perform on the District’s behalf, the City may include in total project costs an amount to cover the City’s indirect administrative and overhead costs. Before the City is required to perform the work, the parties shall negotiate and agree on the amount thereof to include in the project costs to be paid by the District. In the event of an emergency or urgent need to commence work before Attachment 6

2 the parties can negotiate and agree on the total project costs, including indirect administrative and overhead costs, the City and the District shall negotiate and agree on those costs before a final cost settlement is made.

3. The District shall pay to the City by the 1st of every month starting July 1, 2024, 1/12th of the District’s share of the agreed operating budget (Personnel, Operations, and Operating Indirect Rate) shown in Exhibit A (i.e., $492,323.33 x 0.5009 = $246,604.76). City is not required to generate an invoice for these payments which are fixed monthly payments to the City by the District. As provided in Section II.D.4.a of the Operating Agreement, the City and District will review every quarter the actual costs incurred. The City and District will reconcile differences between actual costs incurred, budget costs, and over/under payments made by either agency no later than 90 days after the end of the fiscal year (June 30) or after any quarterly review as agreed upon by both parties
Per Section 6 of the Refinancing Agreement between the City and District, the true up process results in a true up payment of the City to the District of $[ ] (see Exhibit B). The parties agree the City will remit this payment to the District after the third quarter reconciliation, no later than April 15, 2024.

4. Payments under Sections 1, 2, and 3 above shall be subject to interest as provided in Section II.D.4.b of the Operating Agreement.

The parties have entered this agreement on the date first written above.

UKIAH VALLEY SANITATION DISTRICT CITY OF UKIAH
By: _____________________
Ernie Wipf, Chairperson Sage Sangiacomo, City Manager
ATTEST: ATTEST:

By: _________________ _____________________
Kristine Lawler, City Clerk

APPROVED AS TO FORM APPROVED AS TO FORM
_____________________ _____________________
Joanna Gin, General Counsel David J. Rapport, City Attorney Attachment 5

3 Exhibit A
Shared Costs Between City and District for the Combined City/District Sewer System Fiscal Year 2023-24
Budget by Activity (Collection and Treatment)
Budget by Character (Major Cost Category)
Attachment 5

4 Exhibit A (cont)
Shared Costs Between City and District for the Combined City/District Sewer System Fiscal Year 2023-24
Budget by Object
Attachment 5

5 Attachment 5

6 Exhibit B
Cost Split Between City and District
Fiscal Year 2024-25
Exhibit B (cont)
Cost Split Between City and District
Fiscal Year 2024-25
Attachment 5

Agenda Item No: 14.a.

MEETING DATE/TIME: 6/19/2024

ITEM NO: 2024-288

AGENDA SUMMARY REPORT
SUBJECT: Consideration of a Resolution of the City Council of the City of Ukiah Approving the Mendocino County Master Tax Sharing Agreement Among Mendocino County and the Cities of Ukiah, Willits, Fort Bragg, and Point Arena, and Making Certain Findings of Exemption Under the California Environmental Quality Act.

DEPARTMENT: City Manager /
Admin PREPARED BY:

Sage Sangiacomo, City Manager, Shannon Riley,
Deputy City Manager, David Rapport, City
Attorney, Dan Buffalo, Finance Director, Craig
Schlatter, Community Development Director, Jesse
Davis, Chief Planning Manager
PRESENTER:

Sage Sangiacomo, City Manager; Phil Williams,
Special Counsel; Dan Buffalo, Finance Director,
Craig Schlatter, Community Development
Director
ATTACHMENTS:

1. MTSA Key Terms

2. MendoCounty.MTSA - Resolution with Attachment 1

3. 14a Presentation given at Meeting
Summary: The County of Mendocino and its cities need an equitable and modern tax sharing agreement to facilitate the annexation of property and ensure the continued provision of essential public services in the relevant jurisdictions. Creating a sustainable tax sharing agreement will allow for improvements and efficiencies in delivering quality government services and create a strategic pathway for housing development and economic growth.

Currently, there is not a uniform approach to tax sharing across the region that coordinates tax revenue and provision of government services between the County of Mendocino and the cities of Fort Bragg, Point Arena, Ukiah, and Willits. As such, there have been no significant land annexations by a city in Mendocino County since the 1980s. As a result, all jurisdictions are struggling to provide services without the necessary funding stream or capacity to support them. Moreover, the lack of annexations inhibits orderly growth of our urban areas and results in piecemeal development and sprawl in the surrounding unincorporated regions.

Approval of a master tax sharing agreement will help facilitate annexations and ensure the proper distribution of revenues to support City and County services while fostering economic collaboration and resiliency.

A detailed term sheet for the proposed Master Tax Sharing Agreement is included here as Attachment #1 and the Resolution and Master Tax Sharing Agreement are included as Attachment #2.

Background:

The Cortese-Knox-Hertzberg Local Government Reorganization Act (Govt. Code section 56000 et seq.) outlines the procedures in which the Mendocino County Local Agency Formation Commission (LAFCo) must follow to process an application for an annexation. When a city annexes land from a county, the responsibility for providing municipal-type services transfers from the county to the city while the county continues to provide county-wide

services such as public health and social services. This agreement is not an annexation agreement, nor does it guarantee certain annexations must occur.

Government revenue, derived primarily from property tax, local sales tax, and transient occupancy tax, funds essential services, with responsibilities shared between the Cities and the County. The allocation of tax revenue between the County and City jurisdictions requires modernization to more effectively direct resources to the jurisdiction best equipped to deliver specific services. Annexation facilitates the strategic extension of cityprovided municipal services to higher populated areas, while ensuring the County can continue to provide vital county-wide services; the Master Tax Sharing Agreement is designed to facilitate this transfer without creating sudden financial stress and allows for the orderly transition of resources and changes in service delivery.

One of the requirements to process an application for an annexation through LAFCo is a tax sharing agreement as provided for in Revenue and Taxation Code section 99. A tax sharing agreement sets forth how tax revenues generated by the property being annexed are shared between the County and the annexing City. Revenue and Taxation Code section 99(d) provides for a master tax sharing agreement -- one that encompasses all the primary taxes and all jurisdictions. Such a master tax sharing agreement is beneficial in this case in that it provides consistency and efficiency in the annexation process as opposed to having to negotiate a separate agreement for each annexation.

A primary objective of a master tax sharing agreement is to enhance cooperation between the County and its Cities, thereby reducing competition for tax revenue. This allows land use and development decisions to be guided by sound planning principles, such as the development of necessary infrastructure and impact mitigation, efficient and rational service delivery, ensure orderly growth patterns, and the preservation of quality of life.

Discussion:

City and County Staff, along with an ad-hoc committee from the Board of Supervisors comprising Supervisors Mulheren and Gjerde, have collaborated for months on the details of a Master Tax Sharing Agreement. Their goal has been to devise a solution equitable for all jurisdictions and to mitigate budget impacts. This Master Tax Sharing Agreement facilitates economic development in ways that will increase tax revenue while relieving the County of municipal service obligations, thus benefiting every jurisdiction, and ultimately improving service delivery. As annexation occurs, the proposed Master Tax Sharing Agreement ensures both urban and rural areas receive the necessary support tailored to their unique needs. This Master Tax Sharing Agreement also enables the municipalities to program the expansion of services without sacrificing existing responsibilities.

A detailed term sheet for the proposed Master Tax Sharing Agreement is included as Attachment #1 and the Resolution along with the Master Tax Sharing Agreement are included as Attachment #2.

The proposed Master Tax Sharing Agreement is fair for all jurisdictions, will create a uniform approach that can be followed for decades to come, and will allow for appropriate growth. Benefits include:
• Better provision of services: With annexation, the Tax Sharing Agreement allows each jurisdiction to more efficiently focus their efforts and resources on the responsibilities that are in their “lane.” Furthermore, it will “right-size” the tax revenue provided for each jurisdiction to meet its service obligations and match how these services are divided and delivered. • Addresses unsustainable pressure on City and County budgets: The County of Mendocino is being stretched to provide different services to unincorporated areas that are beyond the County’s core capacities. A Tax Sharing Agreement that supports future annexations which would assign service responsibility for these areas to cities would reduce the strain on the County, which is providing services that it is not set up for, and would improve the sustainability of the County budget and operations. Furthermore, reasonable growth for cities will help create a better economy of scale to address the demand for costly municipal services.
• Equity for disadvantaged communities: The unincorporated areas of the county that are currently underserved by government infrastructure are disproportionately lower income and minority populations. These communities deserve more investment in streets, sidewalks, streetlights, parks, emergency response and other infrastructure. To improve equity in our region, there must be a focus

on bringing resources and investment and infrastructure improvements to these disadvantaged communities. That can only happen with a Tax Sharing Agreement that better aligns revenue and responsibility to the appropriate jurisdictions.
• Pathway for economic growth: Better municipal services will allow for orderly, successful, and sustainable growth. Housing development will proceed, and business activity will expand, which will increase property and sales tax revenue to the region. Without a Tax Sharing Agreement, government services would likely remain sub-par in areas that could accommodate such development, and growth will stagnate.
• Pathway for housing: There are aggressive requirements for new housing development to meet shortfalls across the state of California. In Mendocino County, there are good opportunities for housing development located just outside city jurisdictions. With a Tax Sharing Agreement and appropriate land annexation, the Cities will work collaboratively with the County to facilitate and administer new housing development and would be in the position to provide appropriate municipal services to support that build-out.
• Time for solution: There have been no significant land annexations in Mendocino County since the 1980s, which has left some developed areas without the appropriate extension of adequate municipal services. The Tax Sharing Agreement fosters City and County collaboration to serve higher populated areas with the array of governmental services that are necessary for urban communities to thrive. • Fairness for jurisdictions across the region: All four Cities in Mendocino County would adopt the same tax sharing provisions with the County. This would ensure fairness and fiscal responsibility for all jurisdictions and prevent the Cities from competing against each other for development opportunities.
• Fairness for residents: Currently, city residents must subsidize the delivery of basic services to areas outside city boundaries. Likewise, county residents are supporting delivery of municipal services that are typically not the County’s responsibility, thereby stretching valuable resources. A Tax Sharing Agreement will ensure all residents pay an equal amount for the services they receive, and all residents have access to the proper level of services for their community. In addition, incorporation into city boundaries provides individuals and businesses with expanded representation to help shape City policies.
• Common solution: Many cities and counties across California have adopted tax sharing agreements to resolve the discrepancies that can occur with how tax revenue is collected and how services are being delivered in different areas.
• The math adds up: City and County representatives have been working together on the specifics of the Agreement for months to identify a fiscal solution that is fair for all jurisdictions and does not create budget shortfalls in any year, as the Agreement is incrementally implemented and revenue sharing is phased over time with each annexation. With this Agreement in place, the expectation is that tax revenue will increase and every jurisdiction will be better off than before.

The Master Tax Sharing Agreement will allow for annexations which are long overdue in many regions throughout Mendocino County. Assurance that our existing communities and future development will receive the appropriate services from our Cities and the County is a key component to retaining and attracting businesses and investment in our region. The Agreement supports collaboration among our Cities and County to support safe and healthy communities, enhance economic growth, deliver high quality government services, and drive investment in well-planned infrastructure. The Agreement will set the stage for responsible growth in the right places, while improving the fiscal health of Fort Bragg, Point Arena, Willits, Ukiah, and the County.

The Cities and County have been developing a spreadsheet, with the assistance of the Acting Auditor/Controller and Treasurer/Tax-Collector, that models how the property tax will be transferred in future annexations pursuant to the Agreement. It is the parties’ intent to finalize that collaborative spreadsheet so that City and County officials can use it to implement the Agreement in the future.

CEQA Exemption Analysis

Entering the Agreement is exempt from the requirements of the California Environmental Quality Act, Public Resources Code sections 21000, et seq. ("CEQA"). First, the Agreement is exempt pursuant to Title 14, section 15061 subd. (b)(3), of the California Code of Regulations. This exemption makes clear that CEQA only applies to projects which have the potential to cause a significant effect on the environment. Entering the Agreement merely provides a financial mechanism for the collection and distribution of taxes between the parties. The Agreement will not disturb, disrupt, or otherwise affect the physical environment in any way. There will be no defined physical change to the environment resulting from the Agreement.

Entering the Agreement is also exempt from CEQA in accordance with Title 14, section 15301, of the California Code of Regulations. This exemption exempts the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's decision. The key consideration under this Existing Facilities exemption is whether the project involves negligible or no expansion of an existing use. The Agreement will not result in the expansion of the existing use of private or public facilities because the Agreement does not provide for any such expansion and the services provided through existing facilities will not change solely due to the Agreement. While the Agreement enables future changes in organization, any such change that may trigger the tax sharing provisions in the Agreement and any resulting environmental effects are, at this point, entirely speculative and undefined and will be subject to the appropriate level of environmental review at the time any such change in organization is proposed.

For the same reason, no cumulative impacts are foreseeable as no defined changes in organization are called for in the Agreement. Given the entirely administrative and financial changes provided for by the Agreement, there is no reasonable possibility the Agreement will have a significant effect on the environment due to unusual circumstances. Tax sharing agreements, including master tax sharing agreements such as the Agreement, are well-established financial vehicles jurisdictions across the state often avail themselves of and are provided for in the Revenue and Taxation Code. Therefore, in accordance with Public Resources Code Section 21084 and the CEQA Guidelines at Title 14, as cited above, the Agreement will not have a significant effect on the environment and is categorically exempt from the requirement for the preparation of environmental documents.

Recommended Action: Approve a Resolution of the City Council of the City of Ukiah approving the Mendocino County Master Tax Sharing Agreement among Mendocino County and the cities of Ukiah, Willits, Fort Bragg, and Point Arena; and making certain findings of exemption under the California Environmental Quality Act.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Supervisors Mulheren and Gjerde, County Counsel and staff, Cities of Fort Bragg, Point Arena and Willits
DIVERSITY-EQUITY INITIATIVES (DEI): Goal 5 – Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services.

CLIMATE INITIATIVES (CI): 5b – Protect against sprawl through completion of annexations.

GENERAL PLAN ELEMENTS (GP): GP-A1 - Land Use Element; GP-A8 - Housing Element (2019-2027)

Mendocino County Master Tax Sharing Agreement 2024
Key Term Sheet
1 | Pa g e
Term Sheet
Master Tax Sharing Agreement 2024
Parties: Mendocino County, City of Fort Bragg, City of Point Arena, City of Ukiah, and City of Willits
Task and Purpose: Develop a tax sharing agreement to govern the distribution of identified tax revenue between the County and the Cities following annexations by the Cities.

Cost-Benefit Analysis:

County Cities
Benefits  Immediate reduction in service area
responsibility
 Reduction in infrastructure and service
costs
 Shifts housing production to cities
 Minimizes urban sprawl
 Enhanced long-term revenue growth
 Broadened municipal service
availability
 Potential to scale services and costs
 Focus on Economic Development and
Housing
 Centralizes municipal infrastructure
 Enhanced long-term revenue growth
Costs  Temporary revenue reduction in sales
tax (mitigated by reduced service area
& scaled shift of sales tax over 15
years)
 Increased net cost of service
(mitigated by scaled shift of sales tax)
 Inherit deferred maintenance and lack
of needed infrastructure
Core Principles:

1. Simplicity

2. Mutual benefit through economic growth

3. Maintains normal revenue sources (i.e. majority of property taxes to County and Bradley Burns sales tax to cities)

4. Protects funding for countywide services and relieves ongoing service costs

5. Provide City appropriate financial resources to meet assumed municipal service costs.

Key Terms:

1. Tax Sharing Provisions.
a. Property Tax Revenue: After an annexation of unincorporated territory by a city becomes final, the County must distribute to the city annexing the area a portion of the County’s general fund property tax revenue (County Auditor’s Fund Code A0001) from tax rate areas (“TRAs”) within the annexed area as follows:
i. Half of County’s portion of the annual tax increment (increased tax revenue resulting from increased assessed valuations) that does not exceed 2% of the property tax revenue in the prior year from the annexation area.
ii. All of County’s portion of the annual tax increment that exceeds 2% of the property tax revenue in the prior year from the annexation area, until the allocation received by the relevant city equals 15% of the total property tax revenue generated in the annexation area Attachment 1

Mendocino County Master Tax Sharing Agreement 2024
Key Term Sheet
2 | Page
iii. No additional distribution once the relevant city share reaches 15% of the total property tax revenue in the annexation area.
b. Sales Tax Revenue: From the effective date of the annexation until the start of the first full fiscal year following the effective date, the relevant city will distribute to the County 100% of the Bradley-Burns Revenue1
the City collected from the newly-annexed Tax Rate Area. In each subsequent full fiscal year, the percentage of sales tax revenue the relevant city shall distribute to the County shall be reduced by 1/15.
c. Transient Occupancy Tax (TOT) Revenue: From the effective date of the annexation until the start of the first full fiscal year following the effective date, the relevant City will distribute to the County 100% of the TOT Revenue the City collected from the newly-annexed Tax Rate Area. In each subsequent full fiscal year, the percentage of TOT revenue the relevant City shall distribute to the County shall be reduced by 1/5.

2. Regional Housing Needs Plan. The Parties agree that the County’s Regional Housing Needs Plan (the “RHNP”)2 allocation was based on its unincorporated lands, that annexation will necessarily limit the County’s ability to satisfy its obligations under the Housing Element Law, and that the RHNP allocation should be adjusted to reflect the impact of the annexation on the County’s obligations. Therefore, the Parties agree that, in the event that the relevant city or a third non-party proposes annexation of specific territory, the Parties will work together in good faith to attempt to reach a “mutually acceptable agreement for transfer of a portion of the County’s allocation to the city” as reflected in Government Code section 65584.07(d).

3. State Action. If legislative, judicial, and/or voter initiative action limits a city’s ability to apply a city approved transaction and use tax to an annexed area, the parties shall promptly meet and confer in good faith to amend this agreement to address the resulting financial impacts in accordance with the Core Principles.

4. Balanced Annexations. For the Tax Sharing Provisions above to apply to annexations of certain designated areas, as defined, those annexations must be “Balanced.” For an annexation by Ukiah or Fort Bragg to be considered “Balanced,” such annexation must generally be attended by the relevant City annexing an equal amount of territory within the Balance Area.

5. Service Transfer Plan. In anticipation of any annexation, a City and the County will develop a service transfer plan to coordinate the transfer of public services to ensure orderly transition for all areas affected.

6. Separate Agreements. A city and the County may develop alternate terms to address unique conditions affecting any specific annexation; provided, however, the terms of any separate agreement do not substantially affect the terms in the MTSA absent amendment to the MTSA.

1 1% of the sales price of commodiƟes subject to statewide sales tax. 2 The number of housing units the County is required to achieve under the Housing Element in its General Plan as approved by the California Department of Housing and community Development.

Mendocino County Master Tax Sharing Agreement 2024
Key Term Sheet
3 | Page

7. Term. Unless extended by unanimous agreement of the Parties, the MTSA shall remain in effect for twenty (20) years as of the Effective Date; thereafter it has a rolling extension that automatically renews this Agreement every year for an additional five (5) years, until Notice of Termination is provided under Section 10 of the Agreement. Tax sharing provisions implemented during the life of the Agreement shall survive termination of the Agreement.

8. Withdrawal and Termination. Withdrawal upon no less than five years’ notice with an effective date of July 1st. County may terminate unilaterally, or Parties may terminate unanimously; provided in both cases on no less than five years’ notice and termination effective date of July 1st.

RESOLUTION 2024-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING THE

MENDOCINO COUNTY MASTER TAX SHARING AGREEMENT AMONG MENDOCINO

COUNTY AND THE CITIES OF UKIAH, WILLITS, FORT BRAGG AND POINT ARENA,

AND MAKING CERTAIN FINDINGS OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

WHEREAS:

1. Mendocino County (“County”) collects Real Property Tax Revenue within its jurisdiction; and

2. The California Department of Tax and Fee Administration, formerly part of the State Board of Equalization, administers the Statewide general tax on the retail sale or use of merchandise or goods within the State (the “Bradley-Burns Sales Tax”); and

3. The California Department of Tax and Fee Administration collects the 1% BradleyBurns Sales Tax on behalf of cities and counties in the State and distributes the revenue to those local governments; and

4. Each Party levies a transient occupancy tax on those territories within its jurisdiction; provided, however, that the County does not levy a separate transient occupancy tax in areas within a City’s jurisdiction; and

5. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the “CKH Act”) governs changes in organization which changes in organization may need to be approved by the Mendocino LAFCo, and other local agencies; and

6. The City of Ukiah together with the cities of Willits, Fort Bragg and Point Arena (collectively, “the Cities”) anticipate changes in organization within the County, such as Annexations to the Cities, and desire to plan for the orderly and financially viable transition of public services; and

7. The County and the Cities intend the Master Tax Sharing Agreement (“the Agreement”) to provide an equitable approach to distributing certain identified tax revenues in anticipation of changes in organization; and

8. Recognizing that the residents of the Cities are also residents of the County, the County and the Cities acknowledge their shared responsibility to provide adequate services to their shared residents and recognize the importance of the County’s and the Cities’ services and that those services complement each other for the benefit of their residents; and

9. The Parties recognize the importance of maintaining adequate service levels throughout the County and within the Cities to provide for the health, safety, and welfare of the residents of the County and the Cities. The Parties intend, given the mutual economic and other benefits that flow from annexations to the Cities, to cooperate as provided for in the Agreement to address the respective City’s and the Attachment #2

County’s fiscal considerations in providing such services and their respective present and future economic and planning needs; and

10. For certain changes of organizations, such as annexations, Revenue and Taxation Code Section 99 requires an agreement of the City and the County to a property tax revenue exchange and to provide a resolution of approval of the same by each legislative body to Mendocino LAFCo prior to consideration of the change of organization; and

11. Accordingly, and as provided for in Revenue and Taxation Code Section 99(d), the County and the Cities have negotiated a master property tax exchange agreement that is intended to satisfy the requirements of Revenue and Taxation Code Section 99 for future changes of organization as specified in the Agreement; and

12. While not required by Revenue and Taxation Code Section 99, the Parties acknowledge that the Agreement also provides for the exchange of Bradley-Burns Sales Tax and transient occupancy tax which the Parties agree to accept in accordance with the Agreement; and

13. Any changes in organization that may trigger the tax sharing provisions in the Agreement and any resulting environmental effect are, at this point, entirely speculative and undefined and will be subject to the appropriate level of environmental review at the time any such change in organization is proposed; and

14. The City has reviewed the Agreement and the provisions of the California Environmental Quality Act, Public Resources Code sections 21000, et seq., (“CEQA”) and has considered whether any direct or indirect physical change to the environment will result from entering the Agreement and has considered whether entering the Agreement may possibly have a significant effect on the environment.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ukiah, as follows:

Section 1. The Council hereby approves the Mendocino County Master Tax Sharing Agreement (“the Agreement”), a true and correct, but unsigned, copy of which is attached hereto as Attachment 1.

Section 2. The Council hereby finds that entering the Agreement is exempt from CEQA as provided for in Title 14, section 15061 (b)(3), of the California Code of Regulations as entering the Agreement is an entirely financial matter and there is no possibility the Agreement will have a significant effect on the environment, and as provided for in Title 14, section 15301, of the California Code of Regulations as the Agreement will result in no expansion or use of existing facilities and there is no reasonable possibility that the Agreement will have a significant effect on the environment effect due to unusual circumstances.

Section 3. The Council authorizes the Mayor to sign the Agreement on behalf of the City of Ukiah.
.

* * * * * * * * *
PASSED AND ADOPTED this 19th day of June 2024, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Josefina Dueñas, Mayor
ATTEST:

Kristine Lawler, CMC/City Clerk

Attachment 1

MENDOCINO COUNTY

MASTER TAX SHARING AGREEMENT
THIS MASTER TAX SHARING AGREEMENT (this “Agreement”) is entered by and between the County of Mendocino, a subdivision of the State of California (the “County”), the City of Fort Bragg (“Fort Bragg”), the City of Point Arena (“Point Arena”), the City of Ukiah (“Ukiah”), and the City of Willits (“Willits”) (the Cities shall be collectively referred to herein as the “Cities”), each City being a California municipal corporation, as of the date it is executed on behalf of the last of the Parties to do so (the “Effective Date”). The Cities, each of them, and the County may sometimes be referred to herein individually as a “Party” or collectively as the “Parties” to this Agreement.

RECITALS
WHEREAS, the County collects Real Property Tax Revenue within its jurisdiction; and WHEREAS, the California Department of Tax and Fee Administration, formerly part of the State Board of Equalization, administers the State-wide general tax on the retail sale or use of merchandise or goods with the State (the “Bradley-Burns Sales Tax”); and WHEREAS, the California Department of Tax and Fee Administration collects the 1% BradleyBurns Sales Tax on behalf of cities and counties in the State and distributes the revenue to those local governments; and
WHEREAS, each Party levies a transient occupancy tax on those territories within its jurisdiction; provided, however, that the County does not levy a separate transient occupancy tax in areas within a City’s jurisdiction; and
WHEREAS, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (the “CKH Act”) governs changes in organization, including annexations such as those contemplated in this Agreement, and which changes in organization may need to be approved by the Mendocino LAFCo, and other local agencies; and
WHEREAS, the Parties anticipate changes in organization within the County, such as Annexations to the Cities, and desire to plan for the orderly and financially-viable transition of public services; and
WHEREAS, the Parties intend this Agreement to provide an equitable approach to distributing certain identified tax revenues in anticipation of changes in organization; and WHEREAS, recognizing that the residents of the Cities are also residents of the County, the Parties acknowledge their shared responsibility to provide adequate services to their shared residents and recognize the importance of the County’s and the Cities’ services and that those services complement each other for the benefit of their residents; and WHEREAS, the Parties recognize the importance of maintaining adequate service levels throughout the County and within the Cities to provide for the health, safety, and welfare of the residents of the County and the Cities. The Parties intend, given the mutual economic and other benefits that flow from annexations to the Cities, to cooperate as provided for in this Agreement to address the respective City’s and the County’s fiscal considerations in providing such services 4

and their respective present and future economic and planning needs; and WHEREAS, for certain changes of organizations, such as annexations, Revenue and Taxation Code section 99 requires an agreement of the city and the county to a property tax revenue exchange and to provide a resolution of approval of the same by each legislative body to Mendocino LAFCo prior to consideration of the change of organization; and WHEREAS, the Parties intend this Agreement to satisfy the requirements of Revenue and Taxation Code section 99; and
WHEREAS, initiatives like the California Business Roundtable’s AG#21-0042A1 Initiative threaten local funding measures and may limit or restrict the ability to overlay local transaction and use taxes of an annexing entity to newly annexed territory.

AGREEMENT
NOW, THEREFORE, the Parties agree as follows:

1. Incorporation of Recitals.

The above Recitals are true and correct and are hereby incorporated into this Agreement.

2. Definitions.

The following terms as used in this Agreement shall have the following meanings:
“Annexation(s)” shall have the meaning set out in Government Code section 56017 or its successor, and any reorganization that includes an annexation. “Annexed Area(s): shall mean territory or territories which have been approved for annexation by Mendocino LAFCo.
“Annexation Effective Date” shall mean the date of the particular annexation, as may be specified in Mendocino LAFCo’s terms and conditions or by Government Code section 57202; provided, however, that such date falls after the Effective Date. “Annexor City” shall mean a City Party that is planning, pursuing, or has completed an Annexation.
“Annexed Tax Rate Area” (“ATRA” or “ATRAs”) shall mean any separate Tax Rate Area created for territory annexed after the Effective Date. “Change of Organization” shall mean the definition provided for in the CKH Act at, as of the Effective Date, Government Code section 56021 and shall also include a “reorganization” as defined in Government Code section 56073.

The “Designated Fort Bragg Area” shall mean that territory described in the attached Exhibit A.
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The “Designated Ukiah Area” shall mean that territory described in the attached Exhibit B.
“Fiscal Year” shall mean July 1st through June 30th of the following year.

The “Fort Bragg Balance Area” shall mean that territory described in the attached Exhibit A.
“Distribution” shall mean the allocation and provision of tax revenue from one Party to another Party as provided for in this Agreement in order to satisfy the requirements of Revenue and Taxation Code section 99.
“Mendocino LAFCo” shall mean the Mendocino County Local Agency Formation Commission.
“Property Tax Revenue” shall mean revenues derived from ad valorem taxes on real property and from other categories of secured and unsecured property taxes including and not necessarily limited to those described in the County’s annual distribution as Current Secured General, Current Unsecured General, Prior Secured General, Prior Unsecured General, SB 813 Supplemental General, Highway Property Rental, and HOPTR General. “Sales Tax Revenue” shall only mean those taxes collected in accordance with BradleyBurns. “State Action” shall mean any legislative, judicial, and/ or voter-approved initiative action that limits a City’s ability to apply a City-approved transaction and use tax to an Annexed Area.
“Tax Rate Area” (“TRA” or “TRAs”) shall mean those base tax revenue and/or incremental tax revenues available from an identified area. “Transient Occupancy Tax Revenue” (“TOT Revenue”) shall mean any tax lawfully imposed as an incident of short-term transient occupancy and excludes any revenue collected as the result of a City-specific tax measure that is greater than that collected by the County.

The “Ukiah Balance Area” shall mean that territory described in the attached Exhibit B.

3. Tax Distributions for Annexations.
a. Scope. As provided for in this Agreement and in no way expanding the provisions in subparagraph 3(b) to apply to any City other than Fort Bragg and Ukiah, the tax collection and distribution provisions in this Agreement shall apply to territory annexed to a Party as of the respective Annexation Effective Date. Prior to adopting a resolution of application to initiate a Change of Organization that includes an Annexation, the respective City shall meet with the County to consult on the proposed Change of Organization. During this consultation, the respective City shall provide to the County a map of the territory, a list of the APNs of the affected territory, and, if the City is subject to Paragraph 3(b), evidence that the proposal is Balanced. The date of this transmittal shall be referred to in this Agreement as the “Change of Organization Proposal Date”. 6

b. Balanced Annexations. This subparagraph 3(b) shall apply only to the Cities of Fort Bragg and Ukiah. A proposal to annex territory within the respective Designated Area of Fort Bragg or Ukiah must be “Balanced” in accordance with this Paragraph 3.

Balanced Annexation(s) of such territory shall be referred to in this Agreement as a “Balanced Annexation(s)”.
i. The Parties shall presume that an Annexation of territory is a Balanced Annexation if Annexation of territory within a Designated Area is attended by annexing at least 98% of the same amount of territory of the respective Annexor City’s Balance Area; provided, however, that Annexation of territory within a Balance Area on or after the Effective Date that was not used for balancing purposes in the prior annexation shall be credited toward the presumption of a Balanced Annexation.
ii. The Parties acknowledge that Mendocino LAFCo has the authority, and may, in the course of its review of the Change of Organization alter the boundaries of the proposed Change of Organization in a manner that causes the Annexation to no longer be a Balanced Annexation, in which case the County can request an additional 30 day negotiating period, and, in that event, a new property tax exchange agreement would have to be negotiated pursuant to Revenue and Taxation Code section 99(b)(7) or the Mendocino LAFCo proceeding would terminate.
c. The Parties will, in accordance with law, take good faith and reasonable steps to implement the Agreement as soon as is feasible. Any dispute between the Parties regarding this subparagraph 3(c) shall be resolved in accordance with the dispute resolution process set forth in Paragraphs 5 and 12.

4. Tax Revenue Collection and Distribution.

Only the following taxes and tax collection and distribution provisions shall apply, as appropriate and described in this Paragraph 4, as of the relevant Annexation Effective Date. This Agreement shall not be construed to require an allocation of taxes to a City which are designated for a County service, such as the County library, over which the respective City shall not be assuming responsibility; nor shall this Agreement be construed to expand or reduce the categories of Property Tax Revenue distributed to a City as reflected in the County’s distribution of said revenues as of the Effective Date of this Agreement. a. Property Tax Revenue Collection and Distribution. As of the relevant Annexation Effective Date, the County shall distribute to the Annexor City the County’s general fund property tax revenue (County Auditor’s Fund Code A0001) generated in the annexation area as follows:
i. Half of the County’s portion of the “annual tax increment” (as defined in Revenue and Taxation Code section 96.5 as of the Effective Date) that does not exceed 2% of the property tax revenue in the prior year from the annexation area. ii. All of the County’s portion of the “annual tax increment” that exceeds 2% of the property tax revenue in the prior year from the annexation area, until the total property tax revenue received by the Annexor City equals 15% of the total property tax revenue generated in the annexation area.
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iii. Once the total property tax revenue received by the Annexor City equals 15% of the total property tax generated in the annexation area, no additional portion of the County’s “annual tax increment” shall be distributed to the Annexor City. In other words, the City’s “property tax apportionment factor” (as calculated pursuant to Revenue and Taxation Code section 96.2 as of the Effective Date) in the annexation area shall not exceed 15%.
b. Bradley-Burns Sales Tax Revenue Collection and Distribution. As of the relevant Annexation Effective Date, the Annexor City shall collect all Bradley-Burns Sales Tax in the ATRA (the “ATRA Bradley-Burns Revenue”) and shall distribute to the County a share of the ATRA Bradley-Burns Revenue in accordance with this subparagraph (b). i. From the Annexation Effective Date until the start of the first full Fiscal Year immediately following the Annexation Effective Date, the Annexor City shall distribute to the County 100% of the ATRA Bradley-Burns Revenue. ii. Thereafter, for each subsequent full Fiscal Year, the amount of ATRA BradleyBurns Revenue the Annexor City distributes to the County in accordance with this Agreement shall be reduced by 1/15 (one-fifteenth) which the Parties agree shall be rounded to 6.667%. Therefore, for the first full Fiscal Year, the Annexor City shall distribute 93.333% of the ATRA Bradley-Burns Revenue to the County; for the second full year, the Annexor City shall distribute 86.666% of the ATRA BradleyBurns Revenue to the County; for the third full year, the Annexor City shall distribute

79.999% of the ATRA Bradley-Burns Revenue to the County; and so forth, reducing each subsequent year by 6.667%, until, as of the start of the fifteenth (15th) full Fiscal Year following the Annexation Effective Date, the Annexor City shall no longer distribute ATRA Bradley-Burns Revenue to the County.
iii. For any Distribution under this subparagraph (b), the Annexor City shall distribute the ATRA Bradley-Burns Revenue to the County within thirty (30) days of the Annexor City receiving the ATRA Bradley-Burns Revenue from the California Department of Tax and Fee Administration.
c. Transient Occupancy Tax Revenue Collection and Distribution. As of the relevant Annexation Effective Date, the Transient Occupancy Tax in the ATRA shall be the rate of the Annexor City. The Annexor City shall collect the Transient Occupancy Tax in the ATRA (the “ATRA TOT Revenue”) and shall distribute to the County a share of the ATRA TOT Revenue in accordance with this subparagraph (c). i. From the Annexation Effective Date until the start of the first full Fiscal Year immediately following the Annexation Effective Date, the Annexor City shall distribute to the County 100% of the ATRA TOT Revenue.
ii. Thereafter, for each subsequent full Fiscal Year, the amount of ATRA TOT Revenue the Annexor City distributes to the County in accordance with this Agreement shall be reduced by 1/5 (one-fifth) or 20%. Therefore, for the first full Fiscal Year, the Annexor City shall distribute 80% of the ATRA TOT Revenue to the County; for the second full Fiscal Year, the Annexor City shall distribute 60% of the ATRA TOT Revenue to the County; for the third full Fiscal Year, the Annexor City 8

shall distribute 40% of the ATRA TOT Revenue to the County; and for the fourth full Fiscal Year, the Annexor City shall distribute 20% of the ATRA TOT Revenue to the County. As of the start of the fifth full Fiscal Year following the Annexation Effective Date, the Annexor City shall no longer distribute ATRA TOT Revenue to the County.
iii. For any Distribution under this subparagraph (c), the Annexor City shall distribute ATRA TOT Revenue to the County within thirty (30) days of the Annexor City collecting the ATRA TOT Revenue.

5. Reconciliation of Tax Revenue Collection and Distribution.

Upon the request of a Party to meet with another Party regarding the collection and Distribution of taxes between them in accordance with this Agreement, the respective Parties shall make all reasonable efforts to meet within thirty (30) days of such a request.

6. Modification of Sales Tax Revenue Distribution Due to State Action.

Should State Action be taken that limits a City’s ability to automatically apply a Cityapproved transaction and use tax to an Annexed Area, the affected Parties shall promptly meet and negotiate in good faith to amend this Agreement to address the resulting financial impacts in accordance with Paragraph 12, to include the Core Principles.

7. Regional Housing Needs Plan Allocation.
a. The Parties agree: a) the County’s Regional Housing Needs Plan (the “RHNP”) allocation was based on its unincorporated lands; b) subsequent Annexation(s) may limit the County’s ability to satisfy its obligations under the Housing Element Law; and c) the RHNP allocation should be adjusted to reflect the impact of an Annexation on the County’s obligations under the Housing Element Law. Therefore, the Parties agree, in the event that the relevant City or a non-party proposes to annex a specific territory, the relevant Parties will work together in good faith to attempt to reach a mutually acceptable agreement to transfer a portion of the County’s allocation to the relevant City. b. The following general principles shall be used as a framework to reach such an agreement:
i. Where a City Annexation includes undeveloped territory that the relevant City’s general plan and prezoning proposes for residential development, a portion of the County’s Reginal Housing Needs Allocation (“RHNA”) shall be transferred to the City in an amount equal to potential residential units, including accessory dwelling units (“ADU’s”). This transfer shall be calculated by using the City’s prezoning for each legal parcel. Should the territory include an approved subdivision, units will be transferred as identified on the approved tentative map or project description. If such transferred number of units is fewer than the number of units such territory is designated for in the County General Plan or in the Residential Sites Inventory of the County’s Housing Element, the relevant City and the County shall negotiate in good faith the amount to be transferred.
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ii. Where a City Annexation includes developed territory that the relevant City designates and prezones for residential purposes, a portion of the County’s RHNA would be transferred to the relevant City in an amount equal to the unrealized units on underutilized properties for that area; provided, however, that such transfer shall not include ADUs or existing mobile home parks. This transfer shall be calculated by using the relevant City’s prezoning for each legal parcel. If such transferred number of units is fewer than the number of units such territory is designated for in the County General Plan or in the Residential Sites Inventory of the county’s Housing Element, the relevant City and the County shall negotiate in good faith the amount to be transferred.
iii. Where a City Annexation includes territory that the relevant City’s general plan and prezoning proposes for commercial or industrial purposes, no adjustment of the RHNP shall be required, unless the proposed Annexation includes commercial territories on the Residential Sites Inventory of the County’s Housing Element, in which case an amount equal to the identified residential units would be transferred to the relevant City.
c. The income-level of transferred units shall be negotiated in good faith per the existing MCOG Annexation policy and State law. The Parties acknowledge that meeting the need in the lower income category requires higher residential densities and proximity to services, that an Annexation may result in the loss of lands that would otherwise be available to the County to meet the lower income obligations, and that such losses are an important factor in the good faith negotiations.
d. Should a City seek to annex unincorporated territory for the purposes of openspace, agriculture or public facilities, no adjustment of the RHNP shall be required, unless any portion of the territory is designated for residential development in the County’s Residential Sites Inventory of the county’s Housing Element, in which case the parties shall negotiate a transfer in good faith.
e. If the County has already fulfilled its RHNA obligations for the current Housing Element Cycle, no modification of the RHNP allocation shall be required.

8. Other Agreements Affecting Rights and Obligations of This Agreement.

Notwithstanding anything in this Agreement to the contrary, this Agreement does not preclude one or more of the Parties from entering separate agreements regarding particular Annexations; provided, however, that nothing in any separate agreement shall affect the rights and obligations of those Parties not party to that separate agreement. To the extent terms in any such separate agreement are found to be in direct conflict with a term(s) in this Agreement as it relates to a Party which is not a party to the separate agreement, the term(s) in this Agreement shall control over those in the separate agreement.

9. Term of this Agreement.

This Agreement shall remain in effect for an initial term of twenty (20) years as of the Effective Date and shall then and thereafter have a rolling extension that automatically renews this Agreement every year for an additional five (5) years. 10

10. Withdrawal; Termination.
a. A Party may only withdraw from this Agreement with a July 1st effective date (the “Withdrawal Date”) and on no less than five (5) years’ notice to all other Parties in accordance with Paragraph 13. Such withdrawing Party shall perform all obligations under this Agreement until the Withdrawal Date. A withdrawing Party shall remain obligated to perform the obligations in this Agreement, including financial obligations, arising before the Withdrawal Date, even after the Withdrawal Date. b. This Agreement may only be terminated either: a) by written notice by the County of termination to the other Parties; or b) by unanimous written agreement of all Parties to this Agreement (either of which shall be referred to herein as “Notice of Termination”); provided, however, that, unless otherwise agreed to in writing, any termination may only take effect as of July 1st and no sooner than five (5) years after the Notice of Termination (the “Termination Date”). Upon Notice of Termination, the Parties shall remain obligated to perform the obligations in this Agreement, including financial obligations, arising before the Termination Date, even after the Termination Date.

11. Amendment; Related Tax-Sharing Agreements.
a. Any amendment to this Agreement shall be negotiated in good faith and in accordance with the following Core Principles:

1. Simplicity: any amendment should be understandable, not unreasonably complicated, and readily-implemented and verified.

2. Mutual benefit through economic growth.

3. Maintain normal revenue sources for the respective Party: for example, the majority of property taxes should continue to go to the County and Bradley Burns Sales Tax Revenue should go to the respective City.

4. Protect funding for County-wide services and relieve ongoing service costs.

5. Provide the respective City with appropriate financial resources to meet assumed municipal service costs.
b. Any amendment to this Agreement must be approved in writing by unanimous consent of all Parties; provided, however, that any amendment to this Agreement which affects only certain Parties (a “Related Tax Sharing Agreement”) may be agreed to by only those certain Parties so long as such Related Tax Sharing Agreement is in writing and notice is provided to the other Parties to this Agreement.

12. Dispute Resolution.
a. If, at any time during the term of this Agreement, any dispute arises between or among the Parties regarding the interpretation or implementation of this Agreement, including an alleged breach of this Agreement, the Parties will, in the first instance, attempt in good faith to meet to discuss and informally resolve the dispute through designated representatives. The Parties must give written notice of the existence and subject of a dispute (“notice of dispute”), which notice shall commence the dispute resolution process of this Agreement.
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b. If, within thirty (30) days of service of a notice of dispute, unless extended by mutual agreement of the respective Parties, the respective Parties have not resolved the dispute through informal mediation, , the matter shall be submitted to the Judicial Arbitration and Mediation Service (JAMS), or an equivalent mediation service, or a mutually agreeable mediator, for formal mediation by a single mediator who should have technical or legal expertise or experience with public financing, taxation, and local government agencies. The mediator will be selected by unanimous consent of the respective Parties, but if unanimous consent cannot be obtained, the mediator will be selected at random from a list of mediators to be provided by the respective Parties. c. Any Party may commence formal mediation by providing to the mediator and the other Parties a written request for mediation, setting forth the subject of the dispute and the relief requested. If the formal mediation process has not concluded or has not resolved the dispute within sixty (60) days of a written request for mediation, the mediation process will be deemed completed, unless the Parties extend the sixty-day period in writing.
d. If the dispute is not resolved by informal or formal mediation, each Party will be free to pursue whatever legal or equitable remedies may be available. No Party shall be permitted to file a legal action without first complying with the requirements of this Paragraph. This provision shall not waive or otherwise affect the applicable provisions of law governing claims against a public entity or the applicable statutes of limitation. e. The fees and expenses incurred as a result of any dispute resolution activities, including attorney fees, mediator fees and costs, expert costs, and other expenses, shall be borne solely by the Parties involved in the dispute and participating in the mediation.

The Parties involved in the dispute will share the mediator’s expenses on an equal basis.

Should a dispute go to trial before a court of competent authority and jurisdiction, the prevailing party in such court proceeding shall be entitled to recover their reasonable attorney fees and costs; provided, however, that such attorney fees and costs shall not include fees and costs associated with efforts preceding the court proceeding.

13. Notices.

Whenever notice or other communication is permitted or required by this Agreement, it shall be deemed given: (i) when personally delivered; or (ii) when received, if delivered by overnight courier or email (if email receipt is acknowledged in writing); or (iii) forty-eight (48) hours after it is deposited in the United States mail with proper first-class postage affixed thereto and addressed as follows:

To County: County of Mendocino
Attn: Board Chair and Chief Executive Officer
501 Low Gap Road
Ukiah, CA 95482
Email: [email protected]
To City of Fort Bragg: City of Fort Bragg
Attn: Mayor and City Manager
416 N. Franklin Street
Fort Bragg, CA 95437
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Email: [email protected]
To City of Point Arena: City of Point Arena
Attn: Mayor and City Manager
451 School Street
Point Arena, CA 95468
Email: [email protected]
To City of Ukiah City of Ukiah
Attn: Mayor and City Manager
300 Seminary Avenue
Ukiah, CA 95482
Email: [email protected]
To City of Willits City of Willits
Attn: Mayor and City Manager
111 E. Commercial Street
Willits, CA 95490
Email: [email protected]

14. No Third-Party Beneficiary Rights.

This Agreement is only for the benefit of the Parties and shall not be construed as or deemed to operate as an agreement for the benefit of any third party or parties, and no third party or party shall have any right of action or obtain any right to benefits or position of any kind by reason of this Agreement.

15. Assignment; Delegation.

No Party shall assign, sublet, or transfer any interest in this Agreement or any duty hereunder without written consent of the other Parties, and no assignment shall be of any force or effect whatsoever unless and until the other Parties shall have so consented.

16. Hold Harmless; Indemnity.

To the fullest extent permitted by law, each of the Parties (the “Indemnifying Party”) agrees to save, indemnify, defend and hold harmless each other Party and its officers, agents and employees (“Indemnified Parties”) from any liability, claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, whether actual, alleged or threatened, including attorney fees and costs, court costs, interest, defense costs, and expert witness fees, which arise out of, or are in any way attributable in whole or in part to, negligent or intentionally wrongful acts or omissions of an Indemnifying Party or its employees except such losses to the extent caused by the negligence or intentionally wrongful act of an Indemnified Party.

17. Entire Agreement; Counterparts.

This Agreement, including its exhibits and any attachments, is intended both as the final expression of the Agreement among the Parties with respect to the included terms and as a 13

complete and exclusive statement of the terms of the Agreement. This Agreement may be transmitted electronically and executed in counterparts, each such executed electronic copy shall be admissible for any purpose and in any judicial or administrative proceeding as evidence of the agreement between the Parties. Signatures may be exchanged by emailed pdf or other electronic form with the same force as original signatures.

18. Agreement Controlling; Exhibits.

In the event of a conflict between the text of this Agreement and any attachment to it, the text shall prevail. All exhibits to which reference is made are incorporated into this Agreement as though fully set forth at length, whether or not actually attached.

19. Construction.

This Agreement shall not be construed against any Party in the event of an ambiguity.

The transactions contemplated in this Agreement have been negotiated at arms-length, between persons sophisticated and knowledgeable in the matters dealt with in this Agreement.

Accordingly, any rule of law or legal decision that requires interpretation of ambiguities against the Party who has drafted it is inapplicable and waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effectuate the intent and purposes of the Parties to this Agreement as if they had been jointly drafted by the Parties. The headings and sub-headings in this Agreement are intended solely to assist the reader and are in no way intended to create binding terms between the Parties.

20. Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State of California.

21. Severability.

Should any part, term, portion, or provision of this Agreement or the application thereof to any person or circumstances be in conflict with any State or Federal law, or otherwise be rendered unenforceable or ineffectual, including by amendment or repeal of a statute, the validity of the remaining parts, terms, portions or provisions, or the application thereof to other persons or circumstances shall be deemed severable and shall not be affected thereby, unless the remaining portions of the Agreement no longer provide for an equitable approach to distributing certain identified tax revenues or unless the Agreement cannot be construed in substance to continue to constitute the Agreement that the Parties intended to enter into in the first instance.

22. Warranty of Legal Authority.

The Parties’ Legislative Bodies have each authorized execution of this Agreement, as evidenced by the signatures below. Those who sign below warrant for the benefit of the Parties for which they do not sign that they have actual authority to execute this Agreement and to bind to it the Party for which they sign.

IN WITNESSS THEREOF, the Parties have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized as of the Effective Date. 14

COUNTY OF MENDOCINO
Date: By:

Maureen Mulheren, Chair of the Board of
Supervisors
Approved to Form:

County Counsel
Attest:
, County Clerk

CITY OF FORT BRAGG
Date: By:
, Mayor
Approved to Form:

City Attorney
Attest:
, City Clerk

CITY OF POINT ARENA
Date: By:
, Mayor
Approved to Form:

City Attorney
Attest:
15

, City Clerk

CITY OF UKIAH
Date: By:
, Mayor
Approved to Form:

City Attorney
Attest:

Kristine Lawler, City Clerk

CITY OF WILLITS
By:
, Mayor
Approved to Form:

City Attorney
Attest:
, City Clerk
16

Major Rivers Fort Bragg Designated Area
Highways Fort Bragg Balance Area
Municipal Improvement District City of Fort Bragg SOI MASTER TAX SHARE AGREEMENT

EXHIBIT A
0 750 1,500 Feet
0 0.15 0.3 Miles  1:18,000 Municipal Improvment District SOI City Limits

D N EE A

JOHNSON LANE
I D
N
R
·|
}þ1
P
·|
}þ20
O
S
CL

OCEAN VIEW DRIVE

IFF WAY

PACIFIC DRIVE
C
DUB

PARK STREET

FLORENCE STREET
R
17

Major Rivers 2040 General Plan Annexation Areas
Highways City of Ukiah SOI
Ukiah Designated Area City Limits MASTER TAX SHARE AGREEMENT

EXHIBIT B
0 1,750 3,500 Feet
0 0.375 0.75 Miles 1:42,000
Ukiah Balance Area

OW GAP R NE

BRUSH STREET
£¤101
M
UE
·|
}þ253
L
D

TINDALL RANCH ROAD
NI LAN
18

Master Tax Sharing Agreement
Key Terms Overview

Introduction
• The County of Mendocino and its cities need an equitable and modern tax sharing agreement to facilitate the annexation of property and ensure the continued provision of essential public services each jurisdictions.
• The Cortese-Knox-Hertzberg Local Government Reorganization Act (Govt. Code section 56000 et seq.) outlines the procedures in which the Mendocino County Local Agency Formation Commission (LAFCo) must follow to process an application for an annexation. When a city annexes land from a county, the responsibility for providing municipaltype services transfers from the county to the city while the county continues to provide county-wide services such as public health and social services.
• Only a tax sharing agreement for property tax is required, but a master tax sharing agreement that includes property tax, sales tax, and transient occupancy tax fosters a collaborative approach to annexations without creating sudden financial stress and allows for the orderly transition of resources and changes in service delivery.

Benefits of a Master Tax
Sharing Agreement
• Creating a sustainable tax sharing agreement will allow for improvements and efficiencies in delivering quality
government services by levering the strengths of the
County and cities
• Creates a strategic pathway for housing development and economic growth.
• Eliminates competition for tax revenue
• Allows land use and development decisions to be guided by sound planning principles: – Development of necessary infrastructure – Efficient service delivery – Orderly growth – Improved quality of life

Cost-Benefit Analysis

Core Principles

1. Simplicity

2. Mutual benefit through economic growth

3. Maintaining normal revenue sources

4. Protecting funding for countywide services

5. Providing financial resources for municipal
services

Key Terms - Tax Sharing Provisions
Property Tax Revenue: – Half of County’s portion of the annual tax increment (increased tax revenue resulting from increased assessed valuations) that does not exceed 2% of the property tax revenue in the prior year from the annexation area. – All of County’s portion of the annual tax increment that exceeds 2% of the property tax revenue in the prior year from the annexation area, until the allocation received by the annexing city equals 15% of the total property tax revenue generated in the annexation area – No additional distribution once the annexing city share reaches 15% of the total property tax revenue in the annexation area.

Key Terms - Tax Sharing Provisions
Sales Tax Revenue: – From the effective date of the annexation until the start of the first full fiscal year following the
effective date, the annexing city will distribute to
the County 100% of the Bradley-Burns Revenue
the City collected from the newly-annexed area. In
each subsequent full fiscal year, the percentage of
sales tax revenue the annexing city shall distribute
to the County shall be reduced by 1/15.

Key Terms - Tax Sharing Provisions
Transient Occupancy Tax (TOT): – From the effective date of the annexation until the start of the first full fiscal year following the
effective date, the annexing City will distribute to
the County 100% of the TOT Revenue the City
collected from the newly-annexed area. In each
subsequent full fiscal year, the percentage of TOT
revenue the annexing City shall distribute to the
County shall be reduced by 1/5.

Regional Housing Needs Plan
• With each annexation, the responsibility for
housing production will shift from the County
to the annexing city.

Balanced Annexations

Separate Agreements
• A city and the County may develop alternate
terms to address unique conditions affecting
any specific annexation; provided, however,
the terms of any separate agreement do not
substantially affect the terms in the MTSA
absent amendment to the MTSA.

Term
The MTSA shall remain in effect for twenty (20)
years as of the Effective Date; thereafter it has a
rolling extension that automatically renews this
Agreement every year for an additional five (5)
years, until Notice of Termination is provided.

Tax sharing provisions implemented during the
life of the Agreement shall survive termination
of the Agreement.

Recommended Action
• Approve a Resolution of the City Council of
the City of Ukiah approving the Mendocino
County Master Tax Sharing Agreement among
Mendocino County and the cities of Ukiah,
Willits, Fort Bragg, and Point Arena; and
making certain findings of exemption under
the California Environmental Quality Act.

Agenda Item No: 14.b.

MEETING DATE/TIME: 6/19/2024

ITEM NO: 2024-306

AGENDA SUMMARY REPORT
SUBJECT: Discussion with Direction to Staff Regarding a Proposed Approach to the Preparation of the City's Economic Development Strategy.

DEPARTMENT: Community
Development PREPARED BY: Craig Schlatter, Community Development Director PRESENTER: Craig Schlatter, Community Development
Director; Shannon Riley, Deputy City Manager
ATTACHMENTS:

1. Economic Development Element- Goals and Policies

2. 14b Presentation given at Meeting
Summary: Council will discuss and provide direction to Staff regarding a proposed approach to preparation of the City's Economic Development Strategy.

Background: Since adoption of the 2040 General Plan by City Council on December 7, 2022, Staff has begun implementing the approximately 40 programs due to be completed by December 2025. One of these is Implementation Program A of the Economic Development Element, which directs the following:

Economic Development Strategy: The City shall prepare, adopt, and regularly update an Economic Development Strategy, which shall be used as an operational guide to implement the economic development goals and policies of the General Plan.

The Goals and Policies of the Economic Development Element are included in Attachment 1. Because this General Plan was written from an 'inside, looking out perspective,' with annexation of areas within the City's Sphere of Influence contemplated to occur within the planning period, economic development policies and goals reflect the city of the future. This includes a focus on agricultural tourism, expansion of value-added agriculture and agricultural support services, and prioritizing regional economic initiatives. Goals and policies also include increasing tourism, reinforcing the Downtown as the civic and cultural heart of Ukiah, and growing the local economy and employment base by supporting efforts to retain, expand and attract local businesses. The Economic Development Element directs that the future strategy should address business attraction, retention, and expansion, infrastructure priorities, tourism, intergovernmental coordination and cooperation, economic diversification, and workforce development.

Discussion: The General Plan's 'Ukiah of the future' thus envisions a bustling, thriving downtown, connected by a walkable/bikeable transportation network to a well-planned and economically growing community encompassing Ukiah and its valley. Described within the General Plan as being developed as an "operational guide," the economic development strategy is to be reviewed and updated every five years. To achieve this vision, Staff believes the strategy should be big picture, actionable, forward-looking, and concise. Staff recommends the following approach be undertaken to develop this strategy:

Economic Development Strategy Proposed Approach

1. Interviews of Key Stakeholders and Community Champions, Visioning with Focus Groups Staff envisions the first phase of the community engagement process involving one-on-one interviews and focus groups with key stakeholders and economic development community champions. At the minimum and

per Implementation Program A, this will include members of the local business community, Economic Development and Financing Corporation (EDFC), Greater Ukiah Business and Tourism Alliance/Visit Ukiah, West Business Development Center, Mendocino Private Industry Council, Mendocino County, and other groups and organizations working to promote Ukiah's economic development. Staff also envisions including representatives of affordable and/or market rate housing developers, the Diversity, Equity, and Inclusion Committee, local lenders, and agricultural stakeholders.

The purpose of this first phase of community engagement is to establish the vision for the strategy (within the framework established by the General Plan) and set goals.

2. Information and Data Gathering
This phase will involve collection of Ukiah's demographic and economic data. Specific software may be deployed during this phase to make the data more accessible, both within the economic development strategy and for sharing more broadly in the future.

3. Development of Draft Strategic Framework
Working closely with key economic development stakeholders and utilizing community feedback and data gathered in phases one and two, Staff will develop a draft economic development strategic framework. Ideally, and if key stakeholders are available and interested, Staff would envision stakeholders preparing the draft framework alongside staff.

4. Interactive Surveying and Action-Oriented Engagement on Draft Strategic Framework Staff envisions a second phase of community engagement to involve the broader community, including interested members of the public and a larger group of community stakeholders. The purpose of this phase would be to engage with the community on the draft strategic framework, ensuring it is representative of both the General Plan vision and the community's vision prior to preparing the final economic development strategy.

5. Preparation of Final Economic Development Strategy / Possible Adoption by City Council Utilizing data and feedback through phases one through four, a final economic development strategy would be prepared for City Council adoption.

Economic Development Strategy Proposed Team
Staff's experience with recent advanced planning projects such as the 2040 General Plan and 2019-2027 Housing Element is that, when capacity exists to perform the duties and analysis for the project, the community's voice is more amplified when Staff undertake the planning project in-house, with no or only limited technical involvement by consultants. This also ensures the strategy or plan to be prepared fully represents the vision within the General Plan.

For these reasons, Staff proposes the economic development strategy be led by Staff with only limited technical involvement, potentially only related to utilization of economic analysis software, from consultants. In actuality, and to ensure a representative economic development strategy, Staff will likely play a role akin to a facilitator, ensuring active participation by the local business community and key stakeholders, as well as members of the public. As noted, Staff hopes key stakeholders will participate in the actual writing of the strategy alongside Staff.

Recommendation
Staff recommends Council discuss the proposed approach, provide direction, and authorize Staff to proceed with development of the City's Economic Development Strategy.

Recommended Action: Discuss the proposed approach, provide direction, and authorize Staff to proceed with development of the City's Economic Development Strategy.

BUDGET AMENDMENT REQUIRED: N/A

CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: Shannon Riley, Deputy City Manager
DIVERSITY-EQUITY INITIATIVES (DEI): Goal 4 – Identify and actively engage underrepresented communities in which to retain, expand, develop, and implement programs.

CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): GP-A2 - Economic Development Element, ED-1.4 and Implementation Program A: Economic Development Strategy.

Ukiah 2040 General Plan Appendix A
Page A-12 Ukiah 2040 General Plan | December 2022
Five Year General Plan Review
The City shall conduct a technical review
of the General Plan every five years and
revise and update as necessary to assure
compliance with State law and
responsiveness to current City needs.

LU – 16.4 Community
Development
◼ ◼
Annexation Guide. The City shall develop,
maintain, and make publicly-available a
City of Ukiah Annexation Guide that
includes an annexation applicant’s
responsibilities, the requirements for
environmental review, requirements for
development plans, and fees associated
with applications for annexation.

LU – 7.2 Community
Development
◼
Economic Development Element

GOALS AND POLICIES
ED-1 To be a key partner with other agencies and organizations to achieve the City’s and the region’s economic goals.

ED-1.1 Interagency Coordination. Coordinate with local agencies, jurisdictions, and tribes; and other groups and organizations working to promote Ukiah’s economic development.

ED-1.2 Economic Initiatives. The City shall support regional economic initiatives and marketing activities by actively participating in economic development programs.

ED-1.3 Public /Private Partnerships. The City shall support and encourage public/private partnerships and other efforts to implement key development projects that meet the City’s economic development goals.

ED-1.4 Economic Development Strategy. The City shall prepare and periodically update an Economic Development Strategy, which shall be used as an operational guide to implement the economic development goals, policies, and programs of the General Plan.

ED-2 To promote a strong local economy by improving critical infrastructure, including water, transportation, and renewable energy.

ED-2.1 City Investment Priorities. During review and updates of public facility master plans and the Capital Improvement Program, the City shall prioritize investment in infrastructure, services, and other assets that are critical to future economic vitality, including public safety, water supply and quality, transportation, energy, and environmental resources, to support job growth and economic development.

ED-2.2 Energy Infrastructure. The City shall work to improve energy infrastructure to increase availability, reliability, sustainability, and use of renewable energy sources.

ED-3 To provide opportunities for expansion of businesses by ensuring the availability of suitable sites, appropriate zoning, and access to infrastructure and amenities.

ATTACHMENT 1

Policy Document | December 2022 Page A-13
ED-3.1 Land Supply Inventory . The City shall maintain and/or annex an adequate land supply to meet projected commercial and industrial land demand.

ED-3.2 Infill Sites. The City shall coordinate with interested developers and relevant public agencies to develop infill sites consistent with the Land Use Diagram.

ED-3.3 Airport Industrial Park. The City shall develop adequate linkage from the Airport Industrial Park to the east side of the airport.

ED-4 To attract visitors and provide them with the amenities and services to make their stay in Ukiah enjoyable.

ED-4.1 Supporting Tourism. The City shall encourage and support the development of sustainable and innovative visitor-serving attractions that expand on the tourism market in Ukiah and Mendocino County and add to the quality of life for residents.

ED-4.2 Downtown. The City shall reinforce the Downtown as the civic and cultural heart of Ukiah by supporting public arts, cultural and entertainment programs, restoration of aging structures, lodging, and a robust mix of residential, retail, and service uses.

ED-4.3 Boutique Hotel. The City shall encourage and support the development of a boutique hotel in Downtown to provide an opportunity for overnight stays in the heart of Downtown and for visitors to enjoy and explore Ukiah’s local business, restaurants, and nightlife.

ED-4.4 Public Art. The City shall reduce barriers for private efforts that create art in public places (e.g., murals, sculptures), and support development of a Public Art Master Plan with appropriate funding mechanisms to support and maintain public art installations.

ED-4.5 Tourism-Supporting Services. The City shall support the local dining, lodging, and retail sectors to ensure visitors enjoy Ukiah to the fullest.

ED-5 To ensure Ukiah’s long-term economic success and sustainability by diversifying and expanding tourist attractions.

ED-5.1 Outdoor Recreation. The City shall maintain existing and promote new outdoor recreation opportunities and facilities at a high level to solidify Ukiah’s position as a leader in outdoor recreation.

ED-5.2 Bicycle Tourism. The City shall support efforts to promote and expand the local and regional bicycle trail network to attract visitors seeking a quality outdoor recreation experience.

ED-5.3 Great Redwood Trail. The City shall continue to support the expansion of the Great Redwood Trail linking Marin, Sonoma, and Humboldt counties and enhancing trail access in Ukiah.

ED-5.4 Special Events. The City shall support special events that benefit local businesses and contribute to the City’s overall economic success.

ED-5.5 Agricultural Tourism. The City shall strive to attract tourism centered on the agriculture industry throughout the Mendocino County region, including wineries, cannabis farm tours, farm stays, tasting rooms, and beverage production tours.

ED-6 To maintain a supportive business climate and a healthy economy that leads to the expansion of existing businesses and the attraction of new ones.

ED-6.1 Regulatory Environment. The City shall promote business-friendliness in the regulatory and permitting process through collaboration, innovation, exchange of ideas and best practices, and the improvement in clarity and

Ukiah 2040 General Plan Appendix A
Page A-14 Ukiah 2040 General Plan | December 2022
efficiency in the permitting process to take advantage of opportunities for streamlining in the development permit process.

ED-7 To grow the local economy and employment base by supporting efforts to retain, expand and attract local businesses.

ED-7.1 Attract Skilled Workers. The City shall support, maintain, and enhance the social and cultural amenities of the city (such as attractive public spaces, public art displays, museum(s), historic venues and sites, and recreational facilities and programs).

ED-8 To cultivate a culture of entrepreneurship to encourage and support local business start-ups.

ED-8.1 Business Incubators. The City shall encourage and support the establishment of local business incubators and programs designed to support the successful development of entrepreneurial companies through an array of business support resources and services.

ED-8.2 Home-Based Businesses. The City shall support and expand the opportunities for establishment and operation of home-based businesses that are compatible with surrounding neighborhoods.

ED-9 To improve labor force preparedness by providing the local workforce with the skills needed to meet the requirements of evolving business needs.

ED-9.1 Interagency Workforce Collaboration. The City shall work with Mendocino College, Ukiah Unified School District, and Mendocino County to support innovation and the development, retraining, and retention of a skilled workforce.

ED-9.2 Local Graduate Retention. The City shall actively support efforts to keep local high school and college graduates in the local workforce.

ED-9.3 City Hiring Practices. The City shall pursue best practices aimed at maximizing local hiring in coordination with education and training providers.

ED-10 To foster a robust and diversified local economy that provides quality employment and attracts stable businesses.

ED-10.1 Value-Added Agriculture. The City shall encourage and support the expansion of value-added agricultural products (e.g., processing, packaging, product development) with an emphasis on local distribution and consumption.

ED-10.2 Agricultural Support Services. The City shall encourage agricultural support services, such as vineyard and harvest management, to be based in Ukiah.

ED-10.3 Airport-Related Businesses. The City shall encourage and promote the development of airport-related businesses at the Ukiah Municipal Airport.

ED-10.4 Local-Serving Retail. The City shall encourage the establishment and expansion of commercial businesses that increase local spending within Ukiah and provide needed goods and services to residents and businesses.

ED-10.5 Culturally Diverse Businesses. The City shall review and amend its policies and procedures to ensure equity of opportunity to encourage and support a diverse business community.

ED-11 To diversify the economic base of Ukiah through the development and expansion of environmental, creative, and innovative businesses, including the non-profit sector.

Policy Document | December 2022 Page A-15
ED-11.1 Creative Economy. The City shall encourage the expansion of the local creative economy, including arts businesses, creative and performing arts, and non-profit organizations, as well as professional service sectors built around the creative arts.

ED-11.2 Green Economy. The City shall support the development and reduce local regulatory barriers for industries and businesses that promote and enhance environmental sustainability, greenhouse gas reductions, decarbonization, climate change adaptation, resiliency, and renewable energy generation, storage, and transmission, including solar power and other appropriate renewable sources.

ED-11.3 Support Green Businesses. The County shall promote the efforts of existing businesses that meet green business criteria; job training in green building techniques and regenerative farming; and strive to build green technologies into and decarbonize existing public facilities.

ED-11.4 Sustainable Business Development. The City shall encourage the development and expansion of businesses that advance social equity, environmental quality, and economic sustainability, as well as capitalize on key industry strengths. Economic sustainability includes planning and preparation for disaster response and long-term resiliency of businesses and economic assets in the city.

Ukiah 2040 General Plan Appendix A
Page A-16 Ukiah 2040 General Plan | December 2022
Implementation Programs
Implements
Which
Policy(ies)
Responsible
Supporting
Department(s)
2022 – 20252026 – 20302031 – 2040AnnualOngoing
Economic Development Strategy
The City shall prepare, adopt, and regularly
update an Economic Development
Strategy, which shall be used as an
operational guide to implement the
economic development goals and policies
of the General Plan. The strategy should
address business attraction, retention, and
expansion, infrastructure priorities,
tourism, intergovernmental coordination
and cooperation, economic diversification,
and workforce development. The
Economic Development Strategy should be
prepared in coordination with the local
business community, Economic
Development and Financing Corporation,
Greater Ukiah Chamber of Commerce,
West Business Development Center,
Mendocino Private Industry Council,
Mendocino County, and other groups and
organizations working to promote Ukiah’s
economic development. Following
completion of the Economic Development
Strategy, the City shall review and update
the Strategy every five years.

ED – 1.4 City Manager
Community
Development
◼
Mobility Element

GOALS AND POLICIES
MOB-1 To provide a citywide network of complete streets that meet the needs of all users, including pedestrians, bicyclists, motorists, transit, movers of commercial goods, children, seniors, and persons with disabilities.

MOB-1.1 Complete Streets. The City shall design streets holistically, using a complete streets approach, which considers pedestrians, bicyclists, motorists, transit users, and other modes together to adequately serve future land uses.

MOB-1.2 Multi-modal Access. The City shall require that all new development and redevelopment projects include provisions for multi-modal access provisions such as pedestrian and bicycle facilities, and vehicle and transit where relevant.

Economic Development
Strategy Proposed Approach
JUNE 19, 2024 CITY COUNCIL MEETING

C R A I G S C H L AT T E R , A I C P, C O M M U N I T Y D E V E LO P M E N T D I R E C TO R

S H A N N O N R I L E Y, D E P U T Y C I T Y M A N A G E R / E C O N O M I C D E V E LO P M E N T L E A D

Why
now?  Directed within Ukiah General Plan to be
completed by December 2025:

The City shall prepare, adopt, and regularly update
an Economic Development Strategy, which shall be
used as an operational guide to implement the
economic development goals and policies of the
General Plan.  Guides and supports annexation efforts- an “operational guide.”  Helps intentionally chart a course towards the Ukiah of the future.

1. Complete Interviews and Set Vision
 1-on-1 interviews with stakeholders and community champions  Visioning with focus groups
 Purpose: Establish vision within framework of General Plan and set associated goals for Economic Development Strategy.
 Estimated Time: 3 months
o August 1, 2024 – October 31, 2024

2. Gather Information and Data
 Demographic and economic data collection
 Deployment of software for collection of data and accessibility of information  Estimated time: 2 months
o November 1, 2024 – December 31, 2024

3. Develop Draft Strategic Framework
(Plan Together)
 Staff and stakeholders prepare draft
framework, together (Staff goal)
 Strategic framework to provide path to
achieve vision and goals of Ukiah of the future
o The ‘How’ and the ‘What’
o Likely to include timelines
 Estimated time: 3 months
o January 1, 2025 – March 31, 2025
This Photo by Unknown Author is licensed under CC BY

4. Complete Engagement Effort, Part 2
 Open to all in the community
 Will likely involve more modern engagement strategies such as interactive surveying and action-oriented engagement
oNot in traditional, lecture format
oQuestions and exercises to promote discussion, collaboration, and idea sharing  Purpose: ensure draft strategic framework representative of community vision.  Estimated time: 2 months
o April 1, 2025 – May 31, 2025

5. Prepare Final Strategy for Adoption
 Staff and stakeholders prepare final strategy
 Estimated time: 3 months
o June 1, 2025 - August 31, 2025
 Strategy presented to City Council for adoption in September 2025

Recommendations

1. Discuss and provide direction to Staff related to economic development strategy.

2. Direct Staff to proceed with Proposed Approach to development of strategy.

3. Direct Staff to develop strategy “in-house.”

Agenda Item No: 14.c.

MEETING DATE/TIME: 6/19/2024

ITEM NO: 2024-309

AGENDA SUMMARY REPORT
SUBJECT: Approval of Agreement with Carollo Engineers for Engineering Reconnaissance and Assistance with SAFER Grant Application.

DEPARTMENT: Water Resources PREPARED BY: Sean White, Water Resources Director PRESENTER: Sean White, Water Resources Director.

ATTACHMENTS:

1. Ukiah DWSRF Consolidation Planning Application Scope

2. Ukiah DWSRF Consolidation Planning Application Estimate Summary: Council will consider approval of an agreement with Carollo Engineers for engineering reconnaissance and assistance with SAFER grant application.

Background: There are a number of governmental water service providers in the greater Ukiah Valley. Providers include: the City of Ukiah (City), Willow County Water District (Willow), Millview County Water District (Millview), Calpella County Water District (Calpella), and Redwood Valley County Water District (Redwood). The concept of consolidating these service providers into a single entity has been a long-term community goal. Potential benefits of consolidation are numerous and include a cohesive water policy for the region, maximization of water rights, more uniform water security and availability, staffing, expanded rate base, and reduced litigation. There have been a number of past attempts at accomplishing this goal, most notably the Valley-wide Task Force initiated in 1990, as well as a number of Mendocino County Grand Jury Reports.

The Upper Russian River Water Agency (URRWA) was formed in 2014 with the intent of accomplishing these goals. URRWA is a Joint Powers Authority (JPA) "working together for the voluntary consolidation of Ukiah Valley's Water Districts". The board includes a single member from Willow County Water, Calpella County Water, Redwood Valley County Water, Millview County Water, and most recently the Ukiah Valley Sanitation District. UURWA's goals include creating a more logical form of governance over our water resources, coordinating the operations of our districts into one regional water agency, sharing resources to create a unified approach to consolidation, to provide economies of scale that keep rates affordable, and to ensure a reliable long-term water supply for all land uses. URRWA has made significant progress on many of these goals, but it has not significantly improved water supply reliability or streamlined governance. The URRWA model is commonly referred to as managerial consolidation, rather than complete consolidation. In this model there is a single operator, but multiple boards and decision-making bodies remain.

Issues related to numerous, small agencies serving a single community are not unique to the Ukiah Valley. In an attempt to address similar issues state-wide, the State Water Resources Control Board (SWRCB) started the Safe and Affordable Funding for Equity and Resilience (SAFER) program in 2019. Since that time, the SWRCB has made consolidation of water providers through the SAFER program a top priority. Districts consolidating through the SAFER program are eligible for SWRCB grants and loans to facilitate the consolidation processes as well as construct and update required infrastructure.

City Staff was contacted in the summer of 2022 by SAFER about participating in the program. City Staff then reached out to the members of URRWA to see if there was interest in consolidating through the SAFER

Program. An ad hoc committee with members from the City, Willow, Millview, Calpella, and Redwood has been meeting regularly since October 2022 to discuss the opportunity and develop a Joint Powers Authority to serve as the vehicle for consolidation through the SAFER program.

The Ukiah Valley Water Authority JPA (UVWA) is the result of many staff meetings, ad hoc meetings, as well as counsel input from each of the entities. In some ways, the UVWA is similar to URRWA. It is different, however, in that it explicitly intends to go beyond "managerial consolidation" and to eventually achieve complete consolidation over time, which is the goal of the SAFER program. The City of Ukiah formally joined the UVWA in April 2024.

Discussion: The City of Ukiah, acting as a member of the UVWA has been working with Carollo Engineers to help facilitate receiving SAFER funding. Carollo Engineers has worked extensively with the City on water projects, including all four (4) phases of the Recycled Water Project, including the assistance with developing and coordinating with the State for its application. To date, the City has received $63M in grants and $21M in low-interest loans partnering with Carollo. See Attachment 1 for Carollo's proposed Scope of Services for assistance with the grant application. Tasks include coordinating with City Staff to obtain and identify necessary project information for the grant application.

Once compiled, Carollo will prepare the general application package, work with City Staff to acquire signatory resolutions, provide comments and review and inquire with the State Water Resource Control Board (SWRCB) as needed. Other specialized application packages are part of the grant application process as well. These include financial, environmental and technical application packages. These require various documentation like financial security review, various environmental review and detailed technical infrastructure documentation.

As each package is completed, Carollo will submit the required attachments and supporting documentation to the SWRCB's grant system and coordinate with SWRCB staff to verify successful submission of each package. Carollo will act as the main point of contact for the SWRCB and provide support to City Staff throughout the application review process.

Carollo's proposed fee for their grant assistance (Attachment 2) is $151,752.00. If the City receives SAFER funding, these costs will be reimbursed.

Recommended Action: Approve agreement with Carollo Engineers for engineering reconnaissance and assistance with SAFER grant application.

BUDGET AMENDMENT REQUIRED: NO
CURRENT BUDGET AMOUNT: 82027110.52100: $222,746.84
PROPOSED BUDGET AMOUNT: 82027110.52100: $374,499
FINANCING SOURCE: Water Funds to be reimbursed by SWRCB grant funds, if awarded.

PREVIOUS CONTRACT/PURCHASE ORDER NO.:

COORDINATED WITH: Sean White, Director of Water Resources DIVERSITY-EQUITY INITIATIVES (DEI): Goal 5 – Instill diversity, equity, and inclusion as essential core elements of policy-making, accountability, and delivery of City services.

CLIMATE INITIATIVES (CI):7a – Expand sustainable water practices GENERAL PLAN ELEMENTS (GP): GP-A1 - Land Use Element, GP-A2 - Economic Development Element; GP-A4 - Public Facilities, Services, and Infrastructure Element; GP A5 - Environment and Sustainability Element

City OF Ukiah

DRINKING WATER CONSOLIDATION PROJECT

PLANNING FUNDING APPLICATION

SCOPE OF SERVICES
MAY 29, 2024

SCOPE OF SERVICES
This section presents the Scope of Services for the Drinking Water Consolidation Project – Planning Funding Application. This scope of services is based on a 6-month duration.

Task 1 - Project Management and Meetings
Task 1.1 Project Management and Administration
Monitor project progress, develop and maintain the project schedule, manage subconsultants, and prepare and submit monthly invoices and progress reports.

Task 1.1 Meetings
Carollo will prepare for and conduct a kickoff meeting (MS Teams). Carollo will prepare an agenda and meeting minutes for the kickoff meeting. An allocation of 24 hours has been included for the kickoff meeting and coordination meetings over the 6-month project duration.

Task 1 Assumptions:
• 6-month duration
• This scope assumes that no additional parties will join the consolidation agreement during the project. Adding additional parties during the application process may delay progress and require rework not included in this effort.

Task 1 Deliverables:
• Baseline schedule with updates, as necessary
• Monthly progress reports
• Meeting agendas and minutes
ATTACHMENT 1

Task 2 - Project Management and Meetings
Task 2.1 General Research and Data Collection
Carollo will work closely with the City’s design team, environmental staff, program manager, and finance staff to identify and obtain necessary project information required for the DWSRF Consolidation Planning Grant application package. Technical information may include: existing design documents, Project Scope, Project Schedule, Project budget, etc. Financial information may include: CAFR's, cash flow information, tax data, water rate study, certifications, and resolutions.

Environmental information includes environmental documentation, such as a completed Notice of Exemption, needed for planning activities.

Assumptions:
• This effort also includes two days to walk the project site and evaluate existing infrastructure.

No testing of facilities has been included at this time. • No geotechnical investigations nor survey will be completed for this effort. • All information for the application will be provided by the City and their partner agencies and visually observed during the two-day site visit.

Task 2.2 General Application Package
Carollo will prepare the draft and final general application package leveraging information prepared in previous work and as provided by City staff. Tasks include coordinating with the City to obtain required information, development of signatory resolution, verification with the SWRCB that there are no new requirements, incorporation of the City’s review comments and preparation of the final General Package for submittal. Upon submittal of the General Package, Carollo will coordinate with SWRCB staff on the application review as well as facilitate on-going SWRCB communications regarding project status, deliverables submittal status, etc.

Deliverables:
• Draft General Application Package
• Final General Application Package
Assumptions:
• The City will provide necessary information, include signatory resolution, relevant managerial, regulatory and demographic information requested by the SWRCB to complete the General Application package.

Task 2.3 Financial Application Package
Carollo will support City staff in the preparation of the draft and final application package and attachments. As the City is pursuing 100% nonrepayable planning funding, it is anticipated that the SWRCB will not require the applicant to submit a complete financial security package or undergo financial security review prior to receiving funding.

Assumptions:
• The City will provide the required financial information requested by the SWRCB to complete the package to the extent required, which may include completing the tax questionnaire, preparing the required attachments for the financial application, and obtaining the required signed resolutions.

Task 2.4 Environmental Application Package
Carollo will work with the City’s environmental planner and/or its environmental consultant to prepare the Environmental Application Package. For this task, Carollo will review the SRF Environmental Package prepared by the City's environmental planner for completeness and provide the City and its environmental sub-consultant with review comments. As part of its review, Carollo will confirm consistency with the SRF package requirements and flag any omissions of conflicts with the environmental documentation. It is anticipated that a Notice of Exemption will be required to cover planning activities.

Assumptions:
• Environmental review of the project, development and adoption of the environmental documentation/certification will be prepared by either City staff or the City's environmental consultant.

Task 2.5 Technical Application Package
The Technical Package provides detailed technical information about the project, including a description of the facilities, the problem being addressed, a detailed Scope of Work, budget, schedule, as well as demonstrating the water system has the required water rights for the project.

Carollo, working with City staff, will prepare the draft and final technical application package. leveraging existing Project documentation and utilizing scope, budget and schedule information developed by the Carollo design team. Carollo will work with City staff to define the project, prepare a Scope of Work, budget, schedule and related technical documents and graphics to meet the application requirements and streamline the technical package effort.

Deliverables:
• Draft and Final Project Description
• Draft and Final Scope of Work, Project Schedule, and Fee Schedule • Draft Technical Application Package
• Final Technical Application Package
Assumptions:
• The City will provide existing information requested by the SWRCB to complete the Application package.
• Carollo will create a scope and fee to provide design related services for the project. This scope and fee will be based upon information provided by the City and from the site visits conducted under task 1.1.

• As the application is for design efforts the application will included limited technical information.
• No design drawings will be created at this time. All figures will be drawn using google earth backgrounds with simple line work.
• The existing alignment information will be obtained through the City and their partner agencies’ GIS database.

Task 2.6 Package Review and Submittal
As each SRF Application package is completed, or close to complete, Carollo will submit the package and required attachments to the SWRCB FAAST system and coordinate with the SWRCB to verify successful submission of the project's SRF application package and identify other required documentation for the SWRCB to accept the City's application as complete.

Once all application packages have been submitted to the SWRCB, Carollo will serve as the main point of contact for the SWRCB and/or provide support to City staff throughout the application review process. Carollo will work with the City and its consultants to promptly address review questions from the State to keep the SRF Package review on track and coordinate/communicate with the SWRCB during the package review process.

Deliverables:
• Responses to SWRCB questions.

Exhibit A - (May 29 2024)
City of Ukiah
Drinking Water SRF Consolidation Project
Planning Funding Application Fee Estimate
PIC/PM PE Permit Project Professional CAD QC/QC DP Total Labor Crawford PECE ODC Total Task Task Description 2024 $347 $327 $289 $276 $235 $347 $150 Hours Cost Geotech $15.00 ODC Trips Amount Total Cost

1.0 Project Management and Meetings

1.1 Project Management and Administration 6 0 0 0 0 0 6 12 $2,982 $0 $180 0 $0 $180 $3,162

1.2 Meetings 12 0 12 0 0 0 0 24 $7,632 $0 $360 0 $0 $360 $7,992 Task 1.0 Totals = 18 0 12 0 0 0 6 36 $10,614 Task 1.0 Totals = $11,154

2.0 SRF Funding Applications and Coordination

2.1 General Research and Data Collection 30 20 30 30 0 5 0 115 $35,635 $0 $1,725 $600 6 $897 $3,222 $38,857

2.2 General Application Package 2 8 35 15 0 2 5 67 $19,009 $0 $1,005 0 $0 $1,005 $20,0142.3 Financial Application Package 1 0 15 5 0 0 1 22 $6,212 $0 $330 0 $0 $330 $6,5422.4 Environmental Application Package 1 0 15 15 0 0 1 32 $8,972 $0 $480 0 $0 $480 $9,4522.5 Technical Application Package 22 40 35 60 0 0 5 162 $48,139 $0 $2,430 0 $0 $2,430 $50,5692.6 Package Review and Submittal 0 0 40 5 0 2 5 52 $14,384 $0 $780 0 $0 $780 $15,164 Task 2.0 Totals = 56 68 170 130 0 9 17 450 $132,351 Task 2.0 Totals = $140,598 Project Totals = 74 68 182 130 0 9 23 486 $142,965 $0 $0 $7,290 $600 6 $897 $8,787 $151,752.00 Subconsultants
Fee
Mileage
Other Direct Costs (ODC)
Carollo Labor
Includes 10%
Markup
Subconsultant

Agenda Item No: 14.d.

MEETING DATE/TIME: 6/19/2024

ITEM NO: 2024-308

AGENDA SUMMARY REPORT
SUBJECT: Possible Introduction of Ordinance by Title Only to Change the Time that City Council Meetings Convene.

DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Kristine Lawler, City Clerk
ATTACHMENTS:

1. Proposed Ordinance - redline and clean
Summary: Council will consider introducing an ordinance that would change the start time for City Council meetings to 5:15 p.m (or alternate).

Background: Section 51 of the Ukiah City Code that pertains to the start time of regular City Council meetings was last amended in 1985. The logic behind this start time was that it would give the public time to get home from work and then go to the Council meeting. However, in addition to low public attendance, the public now has the option of attending meetings virtually from home.

Discussion: There have been a number of lengthy council meetings that have brought up some concerns:
• Time and cost to public tax dollars to have staff members and sometimes consultants at meetings for long periods of time.
• Public members who come for a specific item and must wait through long discussions until their item is up, and sometimes get discouraged and leave before the item is heard. • Ability to make clear decisions that impact the city as a whole and the City as an agency, at the end of a long night.

To address these concerns, the Clerk's office would like to suggest the following:
• Convene the Council meetings at an earlier time by introducing, by title only, and ultimately adopting the proposed ordinance (Attachment 1), which amends city code section 51 pertaining to the start time of regular meetings of the City Council. Staff is suggesting a 5:15 p.m. start time to give a few minutes after the workday for council, staff, and public to make their way to the Chamber, without longer periods of waiting around in town until the meeting begins. • Staff can monitor the number and length of proclamations to keep them distributed equally between the various meetings.
• Bring Council awareness to the overall discussions by taking the following points into consideration:
o Distinguish between comments, questions, clarifications, or concerns that Staff can address beforehand - thus reducing discussion time during the meeting and allowing for discussions intended to engage other Councilmembers for valuable policy development, strategic direction, and problem-solving; which in turn fosters meaningful dialogue and effective decision-making.

o Tailor comments or questions to the specific agenda item and action that Council is being asked to consider.

Finding the right balance of healthy discussion and debate while maintaining an effective and efficient meeting are important objectives. Staff is open to direction from Council for other ideas on how this might be obtained.

Recommended Action: Introduce an Ordinance by title only that would change start time for City Council meetings to 5:15 p.m.

BUDGET AMENDMENT REQUIRED: N/A
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A
COORDINATED WITH: City Manager's Office
DIVERSITY-EQUITY INITIATIVES (DEI): Goal 2 – Eliminate internal and external barriers to Diversity, Equity, and Inclusion within the systems of our organization.

CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): N/A

ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 51 OFIN DIVISION 1, CHAPTER 2 OF THE UKIAH CITY CODE, PERTAINING TO THE START TIME OF REGULAR MEETINGS OF THE CITY COUNCIL.

The City Council of the City of Ukiah hereby ordains as follows:

1. Ukiah City Code Section 51 in Division 1, Chapter 2 of the Ukiah City Code is amended to read as follows:
§51: TIME OF MEETINGS: The regular meetings of the city council shall be held on the first and third Wednesday of every month at the a quarter hour of past five six o’clock (6:00 5:15) P.M., unless a different regular meeting time is established by resolution.

Any such resolution shall be posted and published as provided in section 50 of this article.

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 19, 2024 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Adopted on ______________, 2024, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Josefina Dueñas, Mayor
ATTEST:
_______________________
Kristine Lawler, CMC/CPMC
ATTACHMENT 1 - redline

ORDINANCE NO.

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UKIAH AMENDING SECTION 51 IN DIVISION 1, CHAPTER 2 OF THE UKIAH CITY CODE, PERTAINING TO THE START TIME OF REGULAR MEETINGS OF THE CITY COUNCIL.

The City Council of the City of Ukiah hereby ordains as follows:

1. Section 51 in Division 1, Chapter 2 of the Ukiah City Code is amended to read as follows:
§51: TIME OF MEETINGS: The regular meetings of the city council shall be held on the first and third Wednesday of every month at a quarter hour past five o’clock (5:15) P.M., unless a different regular meeting time is established by resolution. Any such resolution shall be posted and published as provided in section 50 of this article.

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 19, 2024 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Adopted on ______________, 2024, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________
Josefina Dueñas, Mayor
ATTEST:
_______________________
Kristine Lawler, CMC/CPMC
ATTACHMENT 1 - clean

Agenda Item No: 14.e.

MEETING DATE/TIME: 6/19/2024

ITEM NO: 2024-286

AGENDA SUMMARY REPORT
SUBJECT: Receive Updates on City Council Committee and Ad Hoc Assignments, and, if Necessary, Consider Modifications to Assignments and/or the Creation/Elimination of Ad Hoc(s) Including the Possible Creation of an Ad Hoc to Review the Downtown Zoning Code.

DEPARTMENT: City Clerk PREPARED BY: Kristine Lawler, City Clerk PRESENTER: Mayor Dueñas and Various Councilmembers
ATTACHMENTS:

1. 2024 City Council Special Assignments
Summary: City Council members will provide reports and updates on their committee and ad hoc assignments. If necessary, the Council may consider modifications.

Background: City Council members are assigned to a number of committees and ad hoc activities. These assignments are included as Attachment 1.

Discussion: Previously, the City Council discussed having more time allocated to reporting on committee and ad hoc activities. Often, the Council Reports section of the regular agenda is rushed due to impending business (i.e., public hearings), and not enough time is afforded for reports beyond community activities.

In an effort to foster regular updates on committee and ad hoc assignments, this item is being placed on the agenda to provide the City Council members an expanded opportunity to report on assignments and modify assignments as necessary.

City Staff is beginning the process of amending the Downtown Zoning Code and assistance from the Council is sought through creation of an ad hoc to provide input on policy approaches. The ad hoc should be expected to meet bi-weekly or monthly for one year or less. Work will culminate with recommendations to the Planning Commission and City Council, with possible input from the Design Review Board.

Additional information includes the following: Policy LU-10.1, Downtown Zoning Code, of the Land Use Element of the General Plan states that “The City shall update the Downtown Zoning Code to assure consistency with the General Plan goals, policies, and land use designations.” To implement this policy, Implementation Program E directs the City to amend the Zoning Code to address the Downtown Zoning Code and Design Guidelines. Amendments of the Downtown Zoning Code and Design Guidelines are to be completed by December 2025.

Recommended Action: Receive report(s). The Council will consider modifications to committee and ad hoc assignments along with the creation/elimination ad hoc(s).

BUDGET AMENDMENT REQUIRED: No
CURRENT BUDGET AMOUNT: N/A
PROPOSED BUDGET AMOUNT: N/A
FINANCING SOURCE: N/A
PREVIOUS CONTRACT/PURCHASE ORDER NO.: N/A

COORDINATED WITH: N/A
DIVERSITY-EQUITY INITIATIVES (DEI): N/A
CLIMATE INITIATIVES (CI): N/A
GENERAL PLAN ELEMENTS (GP): GP-A1 - Land Use Element

2024 CITY COUNCIL SPECIAL ASSIGNMENT LIST

LOCAL / UKIAH VALLEY MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT City Broadband Project TBD TBD
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
to evaluate the Request for Proposal (RFP) for the Internet Service Provider (ISP) for the California's Public Utilities Commission (CPUC) Last Mile Broadband
Orozco
Jim Robbins, Grants Manager, 463-6708;
[email protected]
Investment Oversight Committee Varies
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
Reviews City investments, policies, and strategies
Crane
Orozco - Alternate
Alan Carter, Treasurer
Dan Buffalo, Director of Finance; 463-6220
[email protected]
Disaster Council
Shall meet a minimum of
once a year at a time and
place designated upon
call of the chair
Place designated upon call of the chair or, if
she/he is unavailable or unable to call such
meeting, the first vice chair and then the City
Manager or her/his designee.

Office of Emergency Management
300 Seminary Ave.

Ukiah, CA 95482
467-5720 - Traci Boyl
Develop any necessary emergency and mutual aid plans, agreements, ordinances, resolutions, rules, and regulations.

Orozco
Duenas- Alternate
Traci Boyl, City Manager's Office Management
Analyst; 467-5720; [email protected]
Greater Ukiah Business & Tourism
Alliance (GUPTA)
4th Monday of month,
10 a.m.
200 S School St.

Ukiah, CA 95482
200 S School St.

Ukiah, CA 95482
Promotes tourism and works to strengthen and promote the historic downtown and businesses within the greater Ukiah area
Marianne Davison - Community
Services Department Staff
Duenas - Alternate
Shannon Riley, Deputy City Manager;
467-5793 [email protected]
Mendocino County Inland Water and
Power Commission (IWPC)
2nd Thursday of month,
6:00 p.m.

Civic Center
300 Seminary Avenue
conference room 5
IWPC Staff
P.O. Box 1247
Ukiah, CA 95482
391-7574 - Candace Horsley
Develops coordination for water resources and current water rights: Potter Valley project - Eel River Diversion
Rodin
Orozco - Alternate
Sean White, Director of Water Resources;
463-5712 [email protected]
North Coast Opportunities (NCO) 4th Wednesday of
month, 2 p.m. Alternating locations - Ukiah and Lakeport Governing Board Chair
North Coast Opportunities
413 North State Street
Ukiah, CA 95482
Assist low income and disadvantaged people to become self reliant Burgess Jake Burgess, Community Services Supervisor;
463-6201
[email protected]
Sun House Guild ex officio 2nd Tuesday of month,
4:30 p.m.

Sun House
431 S. Main St.

Ukiah, CA
431 S. Main Street
Ukiah, CA 95482
467-2836
Support and expand Grace Hudson Museum Duenas
Neil Davis - Alternate
David Burton, Museum Director; 467-2836
[email protected]
Ukiah Valley Basin Groundwater
Sustainability Agency (GSA)
2nd Thursday of month,
1:30 p.m.

Board of Supervisors Chambers; 501 Low
Gap Road
Ukiah, CA
County Executive Office
501 Low Gap Rd., Rm. 1010
Ukiah, CA 95482
463-4441
GSA serves as the Groundwater Sustainability Agency in the Ukiah Valley basin
Crane
Duenas- Alternate
Sean White, Director of Water Resources;
463-5712 [email protected]

MENDOCINO COUNTY MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT City Selection Committee Called as required by the
Clerk of the Board
BOS Conference Room
501 Low Gap Rd. Rm. 1090
Ukiah, CA
C/O: BOS
501 Low Gap Rd., Rm 1090
Ukiah, CA 95482
463-4441
Makes appointments to LAFCO and Airport Land Use Commission (Mayor - Primary; Vice Mayor - Alternate)
Mayor Duenas
Vice Mayor Crane - Alternate
Kristine Lawler, City Clerk; 463-6217
[email protected]
Economic Development & Financing
Corporation (EDFC)
2nd Thursday of month,
2:00 p.m.

Primarily 631 S. Orchard Street
(location varies)
Executive Director
631 South Orchard Avenue
Ukiah, CA 95482
467-5953
Multi-agency co-op for economic development and business loan program Riley (appointed 12/19/18)
Shannon Riley, Deputy City Manager;
467-5793 [email protected]
Library Advisory Board
3rd Wednesdays of
alternate months; 1:00
p.m.

Various Mendocino County Libraries Ukiah County Library 463-4491 Review library policy and activities Sher
Rodin - Alternate
Kristine Lawler, City Clerk; 463-6217;
[email protected]
Mendocino County 1st District Liaison Monthly; TBD
Civic Center Annex
conference room #5
411 West Clay St.

Ukiah, CA 95482
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
To coordinate activities and policy development with the City's 1st District Supervisor
Rodin
Crane- Alternate
Sage Sangiacomo, City Manager;
463-6221; [email protected]
Mendocino County 2nd District Liaison 1st Wednesdays of month, 8:00 a.m.

Civic Center Annex
conference room #5
411 West Clay St.

Ukiah, CA 95482
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
To coordinate activities and policy development with the County's 2nd District Supervisor
Rodin
Duenas - Alternate
Shannon Riley, Deputy City Manager;
467-5793 [email protected]
Mendocino Council of Governments
(MCOG)
1st Monday of month,
1:30 p.m.

Board of Supervisors Chambers
501 Low Gap Road
Ukiah, CA
Executive Director
367 N. State Street, Ste. 206
Ukiah, CA 95482
463-1859
Plan and allocate State funding, transportation, infrastructure and project County wide
Duenas
Sher - Alternate
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Mendocino County Airport Land Use
Commission As needed
BOS Conference Room
501 Low Gap Rd., Rm. 1090,
Ukiah, CA
Mendocino County Executive Office
501 Low Gap Rd. Rm. 1010
Ukiah, CA 95482
To formulate a land use compatibility plan, provide for the orderly growth of the airport and the surrounding area, and safeguard the general welfare of the inhabitants within the vicinity
Liaisons: Owen/Schlatter
Greg Owen, Airport Manager; 467-2855;
[email protected]
Craig Schlatter, Director of Community
Development; 463-6219;
[email protected]
Mendocino County Local Area
Formation Commission (LAFCO)
1st Monday of month,
9:00 a.m. Board of Supervisors Chambers
Executive Director
200 S. School Street, Ste. 2
Ukiah, CA 95482
463-4470
Required by legislation - planning spheres of influence, annexation, service areas, and special districts
Rodin
Crane - Alternate for both city seat
members on Commission
Craig Schlatter, Director of Community
Development; 463-6219;
[email protected]
Updated: 6/6/2024
ATTACHMENT 1

2024 CITY COUNCIL SPECIAL ASSIGNMENT LIST

MENDOCINO COUNTY
Continued MTG DATE/TIME MEETING LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Mendocino Solid Waste Management
Authority (MSWMA)
3rd Thursday of every
other month (varies),
10:00 a.m.

Willits Council Chambers
Solid Waste Director
3200 Taylor Drive
Ukiah, CA 95482
468-9710
County-wide Solid Waste JPA Crane
Sher - Alternate
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Mendocino Transit Authority (MTA)
Board of Directors
Last Wednesday of
month, 1:30 p.m.

Alternating locations - Ukiah Conference
Center or Fort Bragg, or Point Arena
Executive Director
241 Plant Road
Ukiah, CA 95482
462-1422
County-wide bus transportation issues and funding Sher
Duenas - Alternate
Tim Eriksen, Public Works Director/City
Engineer; 463-6280 [email protected]
Mendocino Youth Project JPA Board of
Directors
3rd Wednesday of
month, 7:45 a.m. 776 S. State Street Conference Room
Mendocino Co. Youth Project
776 S. State Street, Ste. 107
Ukiah, CA 95482
707-463-4915
Targets all youth with a focus on drug and alcohol prevention, healthy alternatives and empowering youth to make healthy choices Cedric Crook, Police Chief
Duenas - Alternate
Cedric Crook, Police Chief; 463-6771;
[email protected]
Russian River Flood Control District
(RRFCD) Liaison
1st Monday of month,
5:30 p.m.
151 Laws Ave.,Suite D
Ukiah, CA
151 Laws Ave., Ukiah, CA 95482;
[email protected]; 462-5278
Proactively manage the water resources of the upper Russian River for the benefit of the people and environment of Mendocino County White/Orozco Sean White, Director of Water Resources;
463-5712 [email protected]
Ukiah Players Theater Board of
Directors
3rd Tuesday of month,
6:00 p.m
1041 Low Gap Rd
Ukiah, CA 95482
462-1210
1041 Low Gap Rd
Ukiah, CA 95482
462-1210
To oversee the activities, organization and purpose of the Ukiah Players Theater
Greg Owen, Airport Manager
(appointed 12/19/18)
Kristine Lawler, City Clerk; 463-6217
[email protected]
Ukiah Unified School District (UUSD)
Committee Quarterly 511 S. Orchard, Ste. D
Ukiah, CA 95482
511 S. Orchard
Ukiah, CA 95482
Information exchange with UUSD Board Chair, Mayor, Superintendent, and City Manager
Duenas
Rodin - Alternate
Sage Sangiacomo, City Manager
Cedric Crook, Police Chief
Sage Sangiacomo, City Manager; 463-6221
[email protected]

REGIONAL MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Great Redwood Trail Agency Bi-monthly, 3rd
Thursdays, 10:30 a.m. Various Locations - announced
419 Talmage Road, Suite M
Ukiah, CA 95482
463-3280
Provides a unified and revitalized rail infrastructure meeting the freight and passenger needs of the region
Rodin
Duenas - Alternate
Neil Davis, Community Services Director
467-5764 [email protected]
League of California Cities Redwood
Empire Legislative Committee
Prior to Division
Meetings, meets 3x in
person and then via
conference call
Various locations that are announced
Redwood Empire League President;
Public Affairs Program Manager
(916) 658-8243
Elected city officials and professional city staff attend division meetings throughout the year to share what they are doing and advocate for their interests in Sacramento
Duenas
Orozco - Alternate
Sage Sangiacomo, City Manager; 463-6221
[email protected]
Russian River Watershed Association
(RRWA)
4th Thursday of month,
9:00 a.m. (only 5 times a
year)
Windsor Town Hall
Russian River Watershed Association
2235 Mercury Way, Suite 105
Santa Rose, CA 95407
[email protected]
707-508-3670 (message only)
Consider issues related to Russian river - plans projects and funding requests
Rodin
Sher - Alternate
Tim Eriksen, Public Works Director/City Engineer;
463-6280 [email protected]
Northern California Power Agency
(NCPA) - Commission
4th Thursday of month,
9:00 a.m. (see NCPA
calendar)
Roseville, CA
and other locations
651 Commerce Drive
Roseville, CA 95678
916-781-4202
Pool of State and local power utilities developing and operating power generation, providing scheduling and related energy services and providing regulatory and legislative support.

Crane - Commissioner
Sher - City Council Alternate
Sauers - Alternate and Commissioner in
absence of Commissioner Crane
Cindi Sauers - Electric Utility Director;
463-6286 [email protected]
Northern California Power Agency
(NCPA) – Lodi Energy Center (LEC)
Appointment
2nd Monday of month,
10:00 AM
Lodi, CA and other locations
651 Commerce Drive
Roseville, CA 95678
916-781-4299
Committee oversees the operation, maintenance and expenditures of the LEC 300 MW generating project.

Sauers – Project Participate
Appointee
Cindy Sauers, Electric Utility Director,
463-6286, [email protected]
Transmission Agency of Northern
California (TANC)
4th Wednesday of
month, 10 a.m. 35 Iron Point Circle Suite 225 Folsom, CA 35 Iron Point Cir #225
Folsom, CA 95630
916-852-1673; [email protected]
Provide electric transmission to its Member utilities through transmission line ownership or contract arrangements.

Crane
Sauers - Alternate
Cindi Sauers - Electric Utility Director;
463-6286 [email protected]

STANDING COMMITTEES MTG DATE/TIME LOCATION MAILING ADDRESS/CONTACT COMMITTEE FUNCTION ASSIGNED TO PRINCIPAL STAFF SUPPORT Diversity and Equity TBD Virtual Meeting Room
(link to be created)
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
Improve diversity and equity in the City’s workforce and municipal services Orozco/Duenas Traci Boyl, City Manager's Office Management
Analyst; 467-5720; [email protected]
Fire Executive Committee
2nd Tue, every other
month beginning in
January; 5:00 p.m.

Ukiah Valley Conference Center,
200 S. School Street
Ukiah, CA
Civic Center
300 Seminary Ave.

Ukiah, CA 95482
[email protected]
Per the recently adopted agreement between the City of Ukiah and the Ukiah Valley Fire Protection District Orozco/Sher
Doug Hutchison, Fire Chief; 463-6263;
[email protected]
Countywide Oversight Board to the
RDA Successor Agencies
4th Thursday of January,
4:00 p.m.; meets annually
Ukiah Valley Conference Center,
200 S. School Street
Ukiah, CA
City of Ukiah
ATTN: City Clerk
300 Seminary Ave.

Ukiah, CA 95482
Oversee and direct the Successor Agencies of the former redevelopment agencies
Crane
Dan Buffalo, Director of Finance; 463-6220
[email protected]
Kristine Lawler, City Clerk; 463-6217,
[email protected]
Water Executive Committee
(Ukiah Valley Water Authority)
1st Tue of each month
at 6:00 p.m.

Ukiah Valley Conference Center,
200 S. School Street
Ukiah, CA
City of Ukiah
ATTN: Sean White
300 Seminary Ave.

Ukiah, CA 95482
Oversight of UVWA; set annual budget for the combined water system; Manage rates and collect levies; modify existing water rights for the provision of water service; mediation and dispute resolution; Crane/Orozco
Sean White, Director of Water Resources;
463-5712 [email protected]
Updated: 6/6/2024

COMMITTEE ASSIGNED TO PRINCIPAL STAFF SUPPORT
Electric Grid Operational Improvements Crane/Orozco Cindy Sauers, Electric Utility Director; 463-629586 [email protected]
Trench Cut Policy Development Crane Tim Eriksen, Public Works Director/City Engineer; 463- 6280 [email protected]
Advance Planning & Policy for Sphere of Influence
(SOI), Municipal Service Review (MSR), Annexation,
Tax Sharing, Detachment, and Out of Area Service
Agreements
Crane/Rodin
Craig Schlatter, Community Development Director
463-6219 [email protected]
UVSD/ City Relations
Ad hoc committee to address specific issues with the Ukiah Valley Sanitation District, including discussion of overall sewer system service delivery policies, operating policy revisions, potential revisions to the current Operating Agreement, and cost sharing
Crane/Orozco
Dan Buffalo, Director of Finance;
463-6220 [email protected]
Sean White, Water Resources Director
463-5712 [email protected]
Orr Street Bridge Corridor Rodin/Sher Tim Eriksen, Public Works Director/City Engineer; 463- 6280 [email protected]
Complete Streets Rodin/Crane
Tim Eriksen, Public Works Director/City Engineer; 463-
6280 [email protected]
Shannon Riley, Deputy City Manager
467-5793 [email protected]
Neil Davis, Community Services Director
467-5764 [email protected]
Special Districts (Water District Consolidation) Orozco/Crane Shannon Riley, Deputy City Manager 467-5793 [email protected]
Corp Yard Planning Crane/Orozco Jason Benson, Senior Civil Engineer 463-6284 [email protected]
Mendocino County Courthouse Project and Reuse Sher/Orozco Shannon Riley, Deputy City Manager 467-5793 [email protected]
Climate Action Plan
Will coordinate with the Community Development Director to identify and assign representation to each of the identified categories, and also coordinate with the Community
Development Director and the Climate Action Plan Working Group related to other outreach efforts during the development of the draft municipal Climate Action Plan related to the 2040 General Plan
Sher/Duenas
Craig Schlatter, Community Development Director
463-6219 [email protected]
City's 150-Year Anniversary Planning Orozco/Rodin Shannon Riley, Deputy City Manager 467-5793 [email protected]
Zoning Reform
(previously was the Community Development Fee Review
ad hoc)
function is to explore creation of a new ministerial zoning permit and identify additional zoning streamlining and reform efforts to provide better and more consistent development outcomes
Crane/Orozco
Craig Schlatter, Community Development Director
463-6219 [email protected]
Community Health Needs Assessment (CHNA)
Steering Committee
assist in the creation of the 2025 CHNA Report for the
communities served by the three Adventist Health hospitals in Mendocino County. providing insight, identifying, gathering and analyzing the health needs of our community. Additionally Rodin/Sher
Jeremy Malin, NP
Director of Community Health Analytics
Adventist Health Howard Memorial
Adventist Health Ukiah Valley
Adventist Health Mendocino Coast
978-289-3330; [email protected]
Parks & Recreation Special District Exploration Rodin/Orozco Neil Davis, Community Services Director 467-5764 [email protected]
2024 AD HOC COMMITTEES
Updated: 4/19/2024