091713 lakeport city council agenda packet

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Any person may speak for three (3) minutes on any agenda item; however, total public input per item is not to exceed 15 minutes, ext

City Council. This rule does not apply to public hearings. Non-timed items may be taken up at any unspecified time.

I. CALL TO ORDER & ROLL CALL: 6:00 p.m.

II. PLEDGE OF ALLEGIANCE:

III. ACCEPTANCE OF AGENDA: Move to accept agenda as posted, or move to add or

Urgency Items: To add item, Council is required to make a majority de

(as defined in the Brown Act) and a 2/3rds determinat

action arose subsequent to the Agenda being posted.

IV. CONSENT AGENDA: The following Consent Agenda items are expected to be routine and noncontCouncil at one time without any discussion. Any Council Member may reques

Consent Agenda for discussion under the regular Agenda. Removed items wi

Calendar portion of this agenda.

A. Ordinances: Waive reading except by title, of any ordinances unde

meeting for either introduction or passage per Govern

B. Warrants: Approve warrant register from August 21, 2013, and S

C. Minutes: Approve minutes of the regular City Council meeting o

D. Building Permit Report Review and file Building Permit Reports from August 2

E. Conflict of Interest Policy Adopt a revised Conflict of Interest policy for the City

F. City Manager Contract Approve revisions to the Agreement for Services with

Silveira.

G. Recognized Obligation Payment

Schedule 13-14B

Approve Redevelopment Successor Agency Recognize

Schedule (ROPS) 13-14B.

V. PUBLIC PRESENTATIONS/REQUESTS:

A. Citizen Input: Any person may speak for 3 minutes about any subject within the authority osubject is not already on tonights agenda. Persons wishing to address the C

Citizens Input form and submit it to the City Clerk prior to the meeting being

please state your name and address for the record. NOTE: Per Government C

take action or express a consensus of approval or disapproval on any public c

appear on the printed agenda.

B. POST Executive Certificate Presentation of POST Executive Certificate to Police C

Karen Lozito, Senior Law Enforcement Consultant with

Officer Standards and Training (POST).

C. Introduction of New Employee Introduce new employee in the Police Department.

VI. COUNCIL BUSINESS:

AGENDAJOINT MEETING OF THE LAKEPORT CITY COUNCI

REDEVELOPMENT SUCCESSOR AGENCY, AND THE C

MUNICIPAL SEWER DISTRICTTuesday, September 17, 2013

City Council Chambers, 225 Park Street, Lakeport, California 954


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City Council Agenda of September 17, 2013 Page 2

C. Planning Services Manager

1. Mobile Catering Time LimitWaiver

Consideration of an Application for a Time Limit Waive

HeyHot Dog mobile catering business requesting ap

location beyond the two-hour limit.

VII. CITY COUNCIL COMMUNICATIONS:

A. Miscellaneous Reports, if any:

VIII. ADJOURNMENT: Adjourn

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspect

Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeports website,www.

staffs ability to post the documents before the meeting.

In compliance with theAmericans with Disabilities Act, the City of Lakeport will make available to members of the public any special assistameeting. The public should contact the City Clerks Office at (707) 263-5615 to make such a request. Notification 72 hours prior to the mee

reasonable arrangements to ensure accessibility to this meeting.

_____________________________

Hilary Britton, Acting Deputy City C
http://www.cityoflakeport.com/http://www.cityoflakeport.com/http://www.cityoflakeport.com/


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MINUTESLAKEPORT CITY COUNCIL

REGULAR MEETING

Tuesday, September 3, 2013

CLOSED SESSION: Mayor Engstromadjourned the meeting to Closed Ses1. Conference with Legal Counsel; Anticipated L

54956.9) Number of Potential Cases: 2

I. CALL TO ORDER & ROLL CALL: Mayor Engstrom called the regular meeting of the City

Lakeport to order at 6:00 p.m. with Council Members

Spillman present.

REPORT OUT OF CLOSED SESSION: The Mayor reported that the Council had voted to acc

with the County of Lake regarding property tax adminA copy of the settlement agreement is available for pu

request.

There was no reportable action taken on the second c

II. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Chief Rasmussen.

III. ACCEPTANCE OF AGENDA: A motion was made by Council Member Scheel, secon

Parlet, and unanimously carried by voice vote to accep

Urgency Items: There were no urgency items.

IV. CONSENT AGENDA:

A. Ordinances: Waive reading except by title, of any ordinances unde

meeting for either introduction or passage per Govern

B. Minutes: Approve minutes of the regular City Council meeting o

Vote on Consent Agenda: Acting City Clerk Buendia requested to pull the minute

Council meeting, and stated two (2) corrections to the

Mattina made a motion, seconded by Council membe

carried by voice vote to approve the consent calendar

the minutes.

V. PUBLIC PRESENTATIONS/REQUESTS:

A. Citizen Input: There was no citizen input.

B. Lake County Chamber of Commerce: Melissa Fulton and Jim Magliulo of the Lake County Ch

presented of a $3463.82 donation to the City of Lakep

Annual Fourth of July Fireworks Display at Library Park

VI. CITY COUNCIL COMMUNICATIONS:

A. Miscellaneous Reports, if any: Council Member Spillman thanked City Manager Silve

Buffalo for assistance in setting up for the Taste of La

thanked Chief Rasmussen for his assistance in setting

watch program.

Council Member Mattina attended the LAFCO confer

City Council Minutes of September 3, 2013 Page 2


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within the next week.

City Engineer Harter reported that the computer serv

for his email account. He also reported on progress o

Lakeshore Blvd.

Public Works Director Brannigan reported on the proStreet paving project.

Mayor Engstrom reported that the Clearlake Advisory

this month to work on the Committees quarterly rep

Board of Supervisors.

VII. ADJOURNMENT: Mayor Engstrom adjourned the meeting at 6:20 p.m.

APPROVED BY:

_______________________

THOMAS ENGSTROM, Mayo

ATTEST:

_______________________________________

KELLY BUENDIA, Acting City Clerk


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CITY OF LAK

City of Lakeport Municipal SLakeport Redevelopment Succ

STAFF REPORT

RE: Building Permit Report MEETING DAT

SUBMITTED BY: Community Development Department

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The Council is being asked to review the Building Permit Report for informational purpos

SUMMARY:Attached is a copy of the August building permit log and pending permits. The following Fiscal Year 2013/2014 for the Building Department:

Number of Permits 34Construction Value $980,414.89Permit Revenue $ 11,986.97

SUGGESTED MOTIONS:Receive and file monthly Building Permit Report for August 2013.

Attachments: Monthly Building Permit Report for August 2013


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CITY OF LAK


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CITY OF LAK

Lakeport Redevelopment SuccCity of Lakeport Municipal S

STAFF REPORT

RE: Conflict of Interest Code MEETING DAT

SUBMITTED BY: Kelly Buendia, Acting City Clerk



The City of Lakeport City Council, the City of Lakeport Municipal Sewer District (CLMSDLakeport Redevelopment Successor Agency are asked to adopt a revised Conflict of Intere

BACKGROUND:

ThePolitical Reform Act, Government Code Section 81000, requires state and local goveradopt and promulgate Conflict of Interest Codes. The code designates positions required of Economic Interests, Form 700, and assigns disclosure categories specifying the types of reported. The Form 700 is a public document intended to alert public officials and the puof financial interest that may create a conflict of interest. The Political Reform Act also regovernment agency to amend its conflict of interest code when changed circumstances necamendment and review its conflict of interest code biennially to determine if changed circu

an amended to the conflict of interest code.

DISCUSSION:

After review of the City of Lakeport Conflict of Interest code, staff has determined that thsmall number of non-substantive amendments. First, there are two positions that require are no longer used: Utilities Director and Economic Development Director. The duties ofhave been absorbed by other positions already designated in the code. Second, with the diRedevelopment Agency, the City Council now sits as the Redevelopment Successor Agenc

has been noted. Finally, since its formation in 1991, the City Council has sat as the board Lakeport Municipal Sewer District; as such this designation should be included in the ConfCode. The existing code is presented in both strikethrough format and a finalized version three agencies are asked to adopt the code.

OPTIONS:

Move to approve a Resolution amending and adopting an updated Conflict of Interest Cod


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Attachments: Conflict of Interest Code Revised 09/03/2013 with Strikethrough

Resolution _____(2013) Amending and Adopting an Updated CoCode


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ATTACHMENT 1 Formatte

Formatte

Conflict of Interest Code

City of Lakeport, City of Lakeport Municipal Sewer

District, City of Lakeport Redevelopment Successor

Agency

Purpose

The Political Reform Act (Government Code Section 81000, et seq.) requires state and local

agencies to adopt and promulgate conflict of interest codes.

Incorporation of Section 18730 of the California Code of Regulations

The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs.,

Section 18730) that contains the terms of a standard conflict of interest code and may be incorporated

by reference in an agencys code. After public notice and hearing, the standard code may be amended

by the Fair Political Practices Commission to conform to amendments in the Political Reform Act.

Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendments to it duly

adopted by the Fair Political Practices Commission are hereby incorporated by reference. This

regulation and the attached appendices designating positions and establishing disclosure requirements

shall constitute the conflict of interest code of the City of Lakeport.

Filing

Individuals holding designated positions shall file their statements with the City Clerk, who shallbe the filing officer for the City of Lakeport, the City of Lakeport Municipal Sewer District, and the City of

Lakeport Redevelopment Successor Agency and who shall retain the statements and make the

statements available for public inspection and reproduction pursuant to Government Code

Section 81008.

Government Code Section 87200 Filers

The following positions are not covered by this code because they must file under Government

Code Section 87200 and, therefore, are listed for informational purposes only:

City Council Members

Planning Commissioners

City Manager

City Attorney

City Treasurer

Officials who manage public investments

Formatte


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Formatteposition has been categorized incorrectly. The Fair Political Practices Commission makes the final

determination whether a position is covered by Government Code Section 87200.


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Formatte

Exhibit A

Designated Employees

A designated employee is an officer, employee, member or consultant of an agency whose

position is designated in the code because the position entails the making or participation in the making

of governmental decisions which may foreseeably have a material effect on any financial interest.

Making a governmental decision means the person (1) votes on a matter; (2) appoints a person;

(3) obligates or commits his or her agency to any course of action; or (4) enters into any contractual

agreement on behalf of his or her agency.

Participating in making of a decision means the person (1) negotiates, without significant

substantive review, with a governmental entity or private person regarding the decision; or (2) advises

or makes recommendations to the decision-maker by conducting research or an investigation, preparing

or presenting a report, analysis or opinion which requires the exercise of judgment on the part of the

employee and the employee is attempting to influence the decision.

Designated Employee Disclosure Categories

Administrative Services Director 1

Building Official 1

City Clerk 1

City Engineer 1

Community Development Director 1

Economic Development Manager 1

Finance Director 1

Housing Specialist 1

Planning Services Manager 1

Police Chief 1

Public Works Director 1Utilities Director 1

ClearCity of Lakeport Municipal Sewer District (CLMSD) Board Members 1

Redevelopment Board Members 1

Redevelopment Successor Agency Board Members 1

Consultants who making (not just recommend) governmental decisions, such as whether to

approve a rate, rule, or regulation, whether to issue, deny, suspend, or revoke any permit,

license, application, certificate or similar authorization, adopt or grant City approval to plan,

design, report, study, or adopt or grant City approval of policies, standards, or guidelines for

the City or any subdivision thereof.1

1

Consultants who act in a staff capacity with the City and in that capacity perform the same or

substantially the same or substantially all the same duties for the City that would otherwise be

performed by an individual holding a designated position in the Citys Conflict of Interest Code

Same level as the comparable

designated position identified

elsewhere in the Code

1Consultants are included in the list of designated positions and shall disclose pursuant to the broadest disclosure category in the code, subject

to the following limitation:


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Formatte

Exhibit B

Disclosure Categories

Individuals holding designated positions must report their interests according to their assigned

disclosure category(ies).

Category 1

Designated employees in Category 1 must report all interests in real property located within the

jurisdiction of the City of Lakeport or within two miles of the boundaries of the City of Lakeport or within

two miles of any land owned or used by the City of Lakeport. For the purposes of disclosure only, an

interest in real property does not include the principal residence of the filer. Category A filers must also

report all interests in investments, business positions in business entities and sources of income,

including gifts, loans, and travel payments from all sources.

Category 2

Designated employees in Category 2 must report all interests in real property located within the

jurisdiction of the City of Lakeport or within two miles of the boundaries of the City of Lakeport or withintwo miles of any land owned or used by the City of Lakeport.

Category 3

Designated employees in Category 3 must report all interests in business positions in business

entities and sources of income, including gifts, loans, and travel payments from sources that provide

services, supplies, materials, machinery, or equipment of the type utilized by the City of Lakeport.

Category 4

Designated employees in Category 4 must report all investments in business entities and all

sources of personal and business entity income, including loans, gifts, and travel payments from sources

that provide services, supplies, materials, machinery, or equipment of the type utilized by the

designated positions division or department.

Category 5


sources of personal and business entity income, including loans, gifts, and travel payments, from sources

that filed a claim against the agency during the previous two years or have a claim pending.

Category 6


sources of personal and business entity income, including loans, gifts, and travel payments from sources

of the type to request an entitlement to use agency property or facilities, including, but not limited to a

license, utility permit, or station vendor permit.

ATTACHMENT 2


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RESOLUTION NO. XXXX (2013)

A RESOLUTION OF THE CITY COUNCIL OF THE CIOF LAKEPORT, THE SUCCESSOR AGENCY TO THE LAKEREDEVELOPMENT AGENCY, AND THE BOARD OF THE C

LAKEPORT MUNICIPAL SEWER DISTRICTAMENDING AND ADOPTING AN UPDATED CONFLICT

INTEREST CODE

WHEREAS, Government Code section 87300 of the Political Reform Act, reand local government agencies to adopt and promulgate Conflict of Interest Codes; an

WHEREAS, the Fair Political Practices Commission has adopted a regulationsection 18730 of the California Code of Regulations, which contains the terms of a staof Interest Code that can be incorporated by reference and will be amended to conformamendments of the Political Reform Act;

WHEREAS, the Conflict of Interest Code designates positions required to fileof Economic Interests, Form 700, and assigns disclosure categories specifying the typeto be reported; and

WHEREAS, the Political Reform Act also requires every government agency Conflict of Interest Code when changed circumstances necessitate an amendment and Conflict of Interest Code biennially to determine if changed circumstances require an athe Conflict of Interest Code; and

WHEREAS, staff has recommended non-substantive amendments to the ConInterest Code adopted December 21, 2010 based on changed circumstances; and

WHEREAS, under Assembly Bill 1484, as modified ABx1 26, the Successor ACity of Lakeport Redevelopment Agency is a separate legal entity from the City that foformer Redevelopment Agency; and

WHEREAS, the City of Lakeport Municipal Sewer District is also a separate lfrom the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the CiLakeport, the Successor Agency to the Lakeport Redevelopment Agency, and the Boar

ATTACHMENT 2


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AYES:NOES:

ABSTAINING:ABSENT:

_________________________THOMAS ENGSTROM, Mayo

ATTEST:

_______________________________KELLY BUENDIA, Acting City Clerk

ATTACHMENT 2


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Conflict of Interest Code

City of Lakeport, City of Lakeport Municipal Sewer Dist

City of Lakeport Redevelopment Successor Agency

Purpose

The Political Reform Act (Government Code Section 81000, et seq.) requires state

agencies to adopt and promulgate conflict of interest codes.

Incorporation of Section 18730 of the California Code of Regulations

The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Re

Section 18730) that contains the terms of a standard conflict of interest code and may be

by reference in an agencys code. After public notice and hearing, the standard code may

by the Fair Political Practices Commission to conform to amendments in the Political Refor

Therefore, the terms of 2 California Code of Regulations Section 18730 and any amendme

adopted by the Fair Political Practices Commission are hereby incorporated by reference.

regulation and the attached appendices designating positions and establishing disclosure

shall constitute the conflict of interest code of the City of Lakeport.

Filing

Individuals holding designated positions shall file their statements with the City Clbe the filing officer for the City of Lakeport, the City of Lakeport Municipal Sewer District,

Lakeport Redevelopment Successor Agency and who shall retain the statements and make

statements available for public inspection and reproduction pursuant to Government Code

Section 81008.

Government Code Section 87200 Filers

The following positions are not covered by this code because they must file under

Code Section 87200 and, therefore, are listed for informational purposes only:

City Council Members

Planning Commissioners

City Manager

ATTACHMENT 2


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position has been categorized incorrectly. The Fair Political Practices Commission makes t

determination whether a position is covered by Government Code Section 87200.

Exhibit A


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Designated Employees

A designated employee is an officer, employee, member or consultant of an ageposition is designated in the code because the position entails the making or participation

of governmental decisions which may foreseeably have a material effect on any financial i

Making a governmental decision means the person (1) votes on a matter; (2) appo

(3) obligates or commits his or her agency to any course of action; or (4) enters into any co

agreement on behalf of his or her agency.

Participating in making of a decision means the person (1) negotiates, without sigsubstantive review, with a governmental entity or private person regarding the decision; o

or makes recommendations to the decision-maker by conducting research or an investiga

or presenting a report, analysis or opinion which requires the exercise of judgment on the

employee and the employee is attempting to influence the decision.

Designated Employee Disclosur

Administrative Services Director 1

Building Official 1

City Clerk 1

City Engineer 1

Community Development Director 1

Finance Director 1

Housing Specialist 1

Planning Services Manager 1

Police Chief 1

Public Works Director 1City of Lakeport Municipal Sewer District (CLMSD) Board Members 1

Redevelopment Successor Agency Board Members 1

Consultants who making (not just recommend) governmental decisions, such as whether to

approve a rate, rule, or regulation, whether to issue, deny, suspend, or revoke any permit,

license, application, certificate or similar authorization, adopt or grant City approval to plan,

design, report, study, or adopt or grant City approval of policies, standards, or guidelines for

the City or any subdivision thereof.1

1

Consultants who act in a staff capacity with the City and in that capacity perform the same or

substantially the same or substantially all the same duties for the City that would otherwise be

performed by an individual holding a designated position in the Citys Conflict of Interest Code

Same level a

designated p

elsewhere in

ATTACHMENT 2

Exhibit B


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Exhibit B

Disclosure Categories

Individuals holding designated positions must report their interests according to t

disclosure category(ies).

Category 1

Designated employees in Category 1 must report all interests in real property loca

jurisdiction of the City of Lakeport or within two miles of the boundaries of the City of Lak

two miles of any land owned or used by the City of Lakeport. For the purposes of disclosu

interest in real property does not include the principal residence of the filer. Category A freport all interests in investments, business positions in business entities and sources of in

including gifts, loans, and travel payments from all sources.

Category 2

Designated employees in Category 2 must report all interests in real property loca

jurisdiction of the City of Lakeport or within two miles of the boundaries of the City of Lak

two miles of any land owned or used by the City of Lakeport.

Category 3

Designated employees in Category 3 must report all interests in business position

entities and sources of income, including gifts, loans, and travel payments from sources th

services, supplies, materials, machinery, or equipment of the type utilized by the City of La

Category 4

Designated employees in Category 4 must report all investments in business entit

sources of personal and business entity income, including loans, gifts, and travel paymentthat provide services, supplies, materials, machinery, or equipment of the type utilized by

designated positions division or department.

Category 5


sources of personal and business entity income, including loans, gifts, and travel payment

that filed a claim against the agency during the previous two years or have a claim pendin

Category 6


sources of personal and business entity income, including loans, gifts, and travel payment

of the type to request an entitlement to use agency property or facilities, including, but no

li ili i i d i

CITY OF LAK


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STAFF REPORT

RE: Revisions to Agreement for Services with Margaret Silveira MEETING DAT

SUBMITTED BY: Kelly Buendia, Administrative Services Director


WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

The City Council is asked to approve revisions to the Agreement for Services with Margar

BACKGROUND:

While reviewing another matter, staff discovered clerical errors in the Agreement for ServManager, Margaret Silveira that was approved November 6, 2012 and amended November

DISCUSSION:

Section 3 of the agreement contains terms related to the termination or extended term of SSpecifically, subsections B through E deal with the Silveira's right to severance pay in case or a resignation suggested by the City Council. There are also clauses specifying when andtermination can take place. Subsection F addresses termination for specific reasons (for ca

malfeasance, dishonesty, insubordination, etc. In the case of a "for cause" termination, subdesigned to limit the rights of Silveira, including any entitlement to severance pay.

Attached is the agreement in strikethrough format, to better understand the clerical errors correction. The revised agreement also incorporates the language from the amendment da27, 2012 for one cohesive document.

OPTIONS:

FISCAL IMPACT:

None $ Account Number: Comments:

ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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AAGGRREEEEMMEENNTT FFOORR SSEERRVVIICCEESS BBEETTWWEEEENN

TTHHEE CCIITTYY OOFF LLAAKKEEPPOORRTT AANNDD MMAARRGGAARREETT SSIILLVVEEIIRRAA

This Agreement for Services, dated November 6, 2012 and revised September 17, 2013,

is between the City Council of the City of Lakeport (City Council) and Margaret Silveira(

Silveira) for services to be performed by Silveira in the at willposition of City Manager.

1. DUTIES

Silveira shall perform the functions and duties specified in Section 2.10 et seq. of the

Lakeport Municipal Code and other legally permissible and proper duties and functions as the

City Council shall from time to time assign.

2. TERM

A. The services to be provided by Silveira are extended from the effective date ofthis Agreement and will continue through May 30, 2016.

B. Nothing in this document shall prevent, limit, or otherwise interfere with the

right of the City Council to terminate the services of Silveira at any time, subject to the

provisions of Section 3.

C. Nothing in this document shall prevent, limit or otherwise interfere with

Silverias right to resign at any time from her position with City, subject to the provisions of

Section 3.

3. TERMINATION/EXTENDED TERM

A. In the event Silveiras employment contract is not extended by the City Council

past May 30, 2016, Silveira shall be paid for any unused sick or vacation time and her remaining

salary due through May 30, 2016, or her termination date, and the employer/employee

relationship between the parties shall automatically expire of its own accord without further

liability to either party.

B. In the event Silveira is terminated by the City Council prior to May 30, 2016, and

during such time Silveira is willing to perform her duties under this Agreement, the City shall, atSilveriass option:

(1) Pay Silveira six (6) months compensation, excluding all other benefits

except for her accrued paid leave and the required offer of COBRA benefits. At the option of

the City Council she may continue on the payroll or receive a lump sum, except that all accrued


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(2) Provide six (6) months notice to Silveira during which time Silveira shall

retain her position, perform all City Manager duties, including receipt of full salary and

benefits. At the end of the six-month period, she will then separate from City service with no

further liability to City except for any accrued but unpaid compensation or benefits and the

required offer of COBRA benefits.

C. In the event at any time during the course of this Agreement Silveira resigns

following a suggestion, whether formal or informal, by the City Council that she resign, then, in

that event, Silveira may, at her option, be deemed terminated at the date of such resignation

within the meaning and context of the severance pay provision.

D. Consideration of Silveriass termination by the City Council may not occur within

ninety (90) days after a General Municipal Election or Special Election wherein a new member

or members are elected to the City Council. Any decision to terminate or not renew the

Agreement shall be made in closed session and confirmed in a public meeting.

E. Silveira may choose to resign her office instead of being terminated if a decisionby the City Council to terminate has been made in closed session. In such an event, the public

announcement as provided for in paragraph 3(E) will note Silveira has resigned and the

provision 3(C) remains applicable.

F. In the event that termination is the result of an illegal act by Silveria, including

but not limited to the acts described in F(1) through F(5) below, the provisions of paragraphs,

3(C) (B) through 3(F) (E) shall not be applicable, unless otherwise determined by the City

Council:

(1) Malfeasance, dishonesty for personal gain, or moral turpitude, willful orcorrupt misconduct or conviction of any felony;

(2) Willfully causing damage to public property or willfully wasting public

supplies;

(3) Specific acts or conduct which brings scandal or disrepute to the City;

(4) Insubordination, which shall mean the willful refusal to obey lawful

directions of the City Council; or

(5) Absence without leave.

4. SALARY

The City Council will establish the initial salary for the City Manager by including same in


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salary adjustments shall be based on her annual evaluations and be established as a

percentage increase of her current salary or such other benefits as the parties may chose to

negotiate.

5. BENEFITS

The City Manager shall be entitled to the following City benefits:

A. Cal PERS retirement at the 2.5% @ 55 formula with Silveira paying the full

employee share of the retirement contribution and City paying the full Employer share.

B. Sick time accrued at the rate of one (1) day per month and vacation time at the

rate of twenty (20) days per year per existing City policy. Vacation days may be accrued up to

400 hours and will accrue per standard City policy.

C. Two (2) weeks annual paid administrative leave with one week to be used with

one week available to be cashed out within each fiscal year.

D. A car allowance of $400.00 per month.

E. A cell phone stipend of $60.00 per month

F. The City Manager shall be entitled to REMIF sponsored Health Insurance at the

single rate with 76 % paid by City and 24 % paid by the employee. All other insurance benefits

(life, disability, dental and vision) shall remain 100% paid by City per existing city policy.

6. PERFORMANCE EVALUATIONS

The City Council shall review and evaluate the annual performance of the City Manager

by May 30 of each year. Such review and evaluation shall be in accordance with the specific

criteria developed by the City Council in consultation with the City Attorney and Silveira. The

City Council may provide Silveira with their written comments and will discuss the review with

Silveria, at the choice of either the City Council or the City Manager. Annual salary adjustments

shall be based on her evaluation and be established as a percentage increase of her current

salary or such other benefits as the parties may chose to negotiate.

7. INDEMNIFICATION

The City Council shall defend, hold harmless, and indemnify Silveira against any tort,

professional liability claim, or demand, or civil rights or other legal action, arising out of any act,

event or omission occurring in the performance of Silveiras professional duties as City

Manager, except to the extent that her actions are the result of gross negligence or willful


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committed by Silveira in her capacity as City Manager, regardless of whether receipt of notice

or filing of any claim or lawsuit occurs during or following her employment with the City. The

provisions of California State law may limit the extent of defense or indemnification.

8. PROFESSIONAL DEVELOPMENT

City Council agrees to budget for and pay reasonable professional dues, subscriptions,

courses, institutes, seminars, and travel and subsistence expenses of Silveira for participation inprofessional activities required by law or necessary to continue her professional development

including her annual ICMA dues. Participation in conferences sponsored by entities such as the

California League of Cities, REMIF, and such other, state, regional and local government groups

and committees in which participation is beneficial to the City of Lakeport to her profession is

encouraged, and City agrees to budget and pay for reasonable travel, cell phone, and other

reasonable expenses incurred in the performance of the job functions of City Manager.

9. BINDING AGREEMENT

The Agreement reflects the complete Agreement between the parties. The Agreement

shall be binding and inure to the benefit of the heirs of the estate of Margaret Silveria.

10. NOTICE

Notices required pursuant to this Agreement shall be given by personal service upon

the party to be notified or by delivery of same to the custody of the United States Postal

Service, or its lawful successor, postage prepaid and addressed as follows:

CITY OF LAKEPORT

City of LakeportAttention: City Clerk

225 Park Street

Lakeport, CA 95453

EMPLOYEE

Margaret Silveira

P. O. Box 1133

Lakeport, CA 95453

11. INTERPRETATION OF AGREEMENT

Should interpretation of this Agreement or any portion thereof be necessary, it is

deemed that this Agreement was prepared by the parties jointly and equally, and shall not be

interpreted against either party on the ground that the party prepared the Agreement or

caused it to be prepared.


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This Agreement may not be amended except by an instrument in writing, signed by

each of the parties. No waiver of any provision of this Agreement shall be deemed or shall

constitute a waiver of any other provision whether or not similar, nor shall any such waiver

constitute a continuing or subsequent waiver of the same provision. No waiver shall be

binding, unless executed in writing by the party making the waiver.

13. COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall be

deemed an original, all of which together shall constitute one and the same instrument. An

authenticated facsimile signature shall be deemed equal to an original.

14. ENTIRE AGREEMENT

This Agreement constitutes the entire Agreement of the parties considering the subject

matter hereof and all prior agreements or understandings, oral or written, are hereby merged

herein. This Agreement shall not be amended in any way except by a writing expressly

purporting to be such an amendment, signed, and acknowledged by both of the parties

thereto.

15. SEVERABILITY

If any provision of this Agreement, or its application to any person, place or

circumstance, is held by an arbitrator or a court of competent jurisdiction to be invalid,

unenforceable, or void, such provision shall be enforced to the greatest extent permitted by

law, and the remainder of this Agreement, and such provision as applied to other persons,

places and circumstances, shall remain in full force and effect.

16. GOVERNING LAW; VENUE

This Agreement shall be construed under and governed exclusively by the laws of the

State of California, and venue shall lie exclusively in Lake County, California.

The signatures of the parties below indicate that each has read and understood the

Agreement and will abide by the terms stated herein.

The parties have executed this Agreement on the dates noted.

CITY COUNCIL OF THE CITY OF LAKEPORT

ATTEST: ___________________________________

STACEY MATTINA, Mayor


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____________________________________

MARGARET SILVEIRA, City Manager

Dated: _____________________________

CITY OF LAK


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STAFF REPORT

RE: Report on the Impact of the Senior Mobile Home RentControl Initiative

MEETING DAT

SUBMITTED BY: David J. Ruderman, Interim City Attorney

Matthew T. Summers, Assistant Interim City Attorney


WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD:

Receive and review this report under Elections Code section 9212 on the senior mobile hinitiative and either adopt a resolution to place the measure on the ballot or provide staffas set forth below.

The City Council requested this legal analysis of the initiative under Elections Code sregular meeting on August 20, 2013. We understand the proponents goal is to adopt mcontrol to protect indigent senior citizens living on fixed incomes from fluctuations in rental market. This report does not comment on the policy reasons weighing in favor of of this initiative, or whether or not circumstances exist in Lakeport that would or would home rent control for seniors. Instead, this report analyzes the legal implications of the inand certified by the Registrar of Voters.

We conclude that the initiative is likely to be litigated if adopted and that a court will liinitiative because it: (1) constitutes a regulatory taking; and (2) is preempted by state law. home park owners have expressed an interest in litigating if the initiative is adopted. The oCity Council are to:

Adopt the initiative as an ordinance; Place it on the next regularly-scheduled general election ballot in Novembe Seek declaratory and injunctive relief from the Citys duties enumerated ab

place it on the ballot) on the basis that the initiative is plainly illegal un

BACKGROUND:

The initiative seeks to impose rent control on mobile home parks in the City in which 80


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The initiative seeks to impose rent control on mobile home parks in the City in which 80of mobile homes are occupied by at least one person aged 65 or older. If a park meets initiative resets rents to those in effect on January 1, 2012 for each mobile home space. Thpurpose is to ensure a reasonable rate of return on park owners investments while also pof seniors to maintain their standard of living. The initiative provides definitions for sevnot all defined terms are used within the initiatives provisions.

Once a mobile home park qualifies a senior mobile home park under the 80 perceinitiative prohibits rent increases in these parks unless there is an increase in Social Securityrent increases to the percentage by which Social Security benefits increase. The initiativethat if Social Security benefits decrease, rents will not decrease, though if Social Secuincrease, then the rents may not rise until the previous benefit level is restored. The initiarent increases if a new tenant takes possession of a mobile home due to a prior tenant leavincapacity, death, or sale.

The initiative allows an owner of a senior mobile home park to pass through theimprovements to the park, but only if a majority of the occupants of the affected sprovides that, if 50 percent of the spaces subject to rent control, or 50 spaces, whichepetition objecting to the pass-through, then the proposed pass-through must be submit

Park owners are also allowed to pass government-mandated expenses through to residconsent of the tenants. However, as with capital improvement pass-through, if 50 percsubject to rent control, or 50 spaces, whichever is less, sign a petition objecting to thearbitrator must decide whether the expense is pass-through of the government manallowed.

Finally, the initiative contains some exemptions to its rent control provisions. It exempts months in duration, mobile home spaces constructed after 1991, and mobile homes w

tenants principal residence. It also provides that every new mobile home space lease months in duration must include a notice that the leases duration exempts the lease frominitiative provides that a violation of any of its provisions by anyone other than a City oconstitutes a misdemeanor.

DISCUSSION:

INITIATIVE LIKELYCONSTITUTES A REGULATORYTAKING OF PROPERTY. The initiative

rates for mobile home spaces in senior mobile home parks back to the rates in effect onHowever, rent control exceeds a Citys police power and constitutes a regulatory taking there is insufficient evidence to demonstrate the rental rates then in effect reasonablymarket conditions of comparable properties. (See Concord Communities, L.P. v. City of Cal.App.4th 1407, 14141415 [question is whether the base date rents can reasonably be

l k di i ] ) H h i i i i ff li i d id h

significantly below market rate].) Without such additional evidence to support the base renof affected mobile home parks will likely prevail in a challenge that the initiative exceedpower and constitutes a regulatory taking by depriving them of a portion of the economproperty.


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p p

The initiative also likely constitutes a regulatory taking because it fails to provide

administrative process by which they can seek approval for rent increases if necessareasonable rate of return or in light of unique or extraordinary circumstances. Although tautomatic rent increases tied to increases in Social Security benefits, this alone is likelsurvive a regulatory takings challenge, a mobile home rent control ordinance must providea reasonable rate of return on their investment. (See MHC Financing Limited Partnership T(2005) 125 Cal.App.4th 1372, 1396, citingBirkenfeld v. City of Berkeley(1976) 17 Cal.3d 129control ordinance is facially unconstitutional if it does not provide a fair and adequobtaining discretionary rent increases.].) It is unlikely a court would find automatic rent i

Social Security benefits alone will necessarily provide park owners with a reasonableinvestment since a cost of living adjustment is not necessarily tied to the factors thaowners reasonable return.

Nor does an automatic increase allow for rent increases in unusual circumstances. For instAssociation of Greater L.A. v. Santa Monica Rent Control Board(1994) 24 Cal.App.4th 1730, thea regulation that allowed landowners who purchased regulated properties before the control to seek an adjustment in the base rental rate to reflect unique circumstances, but d

post-rent-control purchasers. (Ibid.) The court found that this regulation could have uncoand stayed its enforcement. (Id. at p. 1739.) Here, the initiative lacks any administrative mecategory of park owners to seek an adjustment in the base rental rate. (Ibid. [Rent contrhave a confiscatory effect if no rent adjustment mechanism is provided, and a regulation its face when its terms will not permit those who administer it to avoid confiscatory resultsto the complaining parties.].)

To avoid the potential for a regulatory taking, a mobile home rent control ordinance

administrative process by which the park owners may seek to increase rents at other timesuch an administrative process that has withstood constitutional challenge is the procedurof Carson. (Carson Mun. Code, Art. IV, Ch. 7, 4704 [allowing rent increases afteapplication and a public hearing, if the Mobile home Park Rental Review Board finds protects Homeowners from excessive rent increases and allows a fair return on investOwner.]; Carson Mobilehome Park Owners Association v. City of Carson (1983) 35 Cal.[upholding Carsons rent control ordinance against a facial challenge].) Although it may bea legislative fix for this shortcoming through passage by the City Council of an adm

procedure, any such process would be costly to administer. Administrative costs are often park owners, part of which may be passed through to tenants. (See Santa Rosa Mun. [administrative costs paid by annual rent stabilization administration fee levied on park oof spaces, 50% of which may be passed through to tenants].) The precise cost to fund review and hearings required to comport with due process cannot be accurately estimated

however, only exempts any spaces initially available since January 1, 1991, leaving thosefrom January 1 to December 31, 1990 subject to rent control, though state statute requiresprovision is therefore likely preempted by state law and therefore void.

Th i i i i i h l i f l h i l d i h


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The initiatives requirement that leases in excess of twelve months include a notice that tfrom the protections of rent control, together with that exemption for these long-t

duplicates state law. Civil Code section 798.17 provides an exemption from rent control space leases lasting longer than twelve months, but only if park owners provide a detailedand comply with requirements governing the leases execution, including a 72 hour rproviding for notice and an exemption for long-term leases, without fully complying wrequirements under the Civil Code, the initiatives provisions in this regard conflict with smay be void.

INITIATIVE WILL LIKELY REQUIRE COURT INTERVENTION TO INTERPRET. The initiativ

both defined and non-defined, in a manner that makes them reasonably susceptinterpretations. These ambiguities will likely lead to enforcement problems and disputesapplication that would require court intervention to settle. For instance, the language theidentify which mobile home parks qualify as senior parks is ambiguous. The initiative definhome resident as a person entitled to occupy a manufactured home under a lease agreinitiative also refers to as a resident or tenant. However, when describing which psenior park subject to rent control, the initiative at one point requires at least one inhathe mobile homes is over 65 years of age, but another requires at least one tenant 6

older. It is therefore unclear whether only one occupant of the mobile home need tomobile home toward the 80 percent, or whether the senior citizen need be on a lease agreeparks that are near the 80 percent threshold, park owners and tenants will likely find this a

The initiative also arguably applies the limitation on rent increases to Social Security increhome parks in the City, as opposed to only senior mobile home parks, because this sectiolimited to senior mobile home parks.1 However, the provision establishing the base renlimited to senior mobile home parks.2

The sections governing pass-throughs of capital costs and government-mandated expeambiguous and raise additional questions. These sections refer to residents, tenants, homto spaces. It is unclear whether the right to seek arbitration of these pass-throughs is heldthe affected mobile home, a non-owner tenant or resident, or to an inhabitant of a mobilethe initiative provides the right to arbitration for spaces subject to rent control in a par

more fundamental ambiguity: In a park that qualifies under the initiative as a senior mobiall spaces covered by rent control, or only those that seniors occupy? In other words, woowned by a 35 year-old mother of two school-age children in a senior mobile home benefit of rent control or not? The lack of provisions for even this basic aspect of the ithe difficulty of interpretation and likelihood of litigation as a result.

This may indicate an intent to limit rental rate incre

home parks in the City, while only rolling rental rates back to those in effect on January mobile home parks.

class of one claim is a challenge to the initiative as applied and is not necessarily appartherefore likely could only be raised if the voters adopt the initiative. Based on the informCity Council at the August 20, 2013 regular meeting, it is possible that there is only one mthat would be affected by the passage of the initiativethe same park in which the propo

k ld b h l i h Ci ff d b h i i i i Th i


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park owner would be the only owner in the City affected by the initiative. The intent differently from the other mobile home parks could be evidenced from the purpose

initiative, as well as the choice of an 80 percent threshold, one high enough to excludAlthough the proponents may be able to show a rational basis for this distinction, it is unliving in parks where they are not vast majority of residents are less in need of rent csurrounded by mainly other seniors. A court could find the 80 percent threshold arbitrarythe initiative as violating the park owners equal protection rights.

OPTIONS:

The County Registrar of Voters has certified that the proposed initiative bears sufficient vtrigger the City Councils obligation to either:

1. Adopt the ordinance as presented, without change (Elec. Code 9215, sub2. Present the ordinance for consideration to the voters at the next u

municipal election (Elec. Code 9215, subd. (b)). Under Lakeport Munic

1.04.010, the Citys general elections are held on the same day as the S

Election, which is the first Tuesday after the first Monday in Novemb

numbered year, or November 4, 2014. (Elec. Code, 1200.)

Alternatively, case law establishes a few other options a City may take when confroinitiative that is plainly illegal:

3. Seek declaratory and injunctive relief from the duty to place the initiative oon the initiatives invalidity under the theory of Widders v. Furchtenicht(2008

769, 779 (Ojai City Attorney could seek judicial relief from duty to summary of plainly invalid initiative).

4. Place the initiative on the ballot for voter consideration, but refuse to defea pre-election challenge is brought against it. (City of Burbank v. BurbanAirport Authority (2003) 113 Cal.App.4th 465, 482483 [City is not reinitiative measure].) Although the Burbank case and recent Proposition 8 cacity can refuse to defend or even seek a court determination of an initiat

adopted, it is generally considered the duty of a city to defend any initiativoters. Prior to adoption, however, it is unlikely that the City is required toyet a legislative act of the City.

5. Decline to either adopt the ordinance or place it on the ballot, and initiatives proponents to bring s it to req ire the City to present it to

FISCAL IMPACT:

None See Comments Account Number: Comments: Costs f


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None See Comments Account Number: Comments: Costs finitiative on the ballot for the next general municipal election are estimated at less than $10

initiative is passed by the voters, the City will likely spend tens of thousands of dollars to dinitiative against a legal challenge from park owners.

SUGGESTED MOTIONS:

Move to receive and file this report under Elections Code section 9212 and further adopt adirecting the City Clerk to include the initiative on the ballot when calling the next general election and instructing the City Clerk to submit further resolutions as necessary to place in

Attachments:

1. Notice of Intent to Circulate & Initiative2. Resolution directing the City Clerk to include initiative on

general municipal election

ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 1


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ATTACHMENT 2

RESOLUTION NO. ____ (2013)


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A RESOLUTION OF THE CITY COUNCIL OF THE CITY

LAKEPORT DIRECTING THE CITY CLERK TO INCLUDINITIATIVE MEASURE ENTITLED, SENIOR MOBILE HOM

CONTROL INITIATIVE ON THE BALLOT WHEN CALLINNEXT REGULAR MUNICIPAL ELECTION

WHEREAS, on December 20, 2012, the City Clerk received a Notice of IntenPetition for an initiative entitled Senior Mobile Home Rent Control; and

WHEREAS, on January 3, 2013, the City Attorney prepared a ballot title and sthe Senior Mobile Home Rent Control Initiative; and

WHEREAS, on July 1, 2013, the City Clerk received signed petitions for the SHome Rent Control Initiative; and

WHEREAS, on July 23, 2013, the Lake County Registrar of Voters reviewed t

Mobile Home Rent Control Initiative and confirmed the number of verified signaturesnumber of signatures required by law for submission to the electorate; and

WHEREAS, pursuant to Elections Code sections 9215 and 1405, Council direSenior Mobile Home Rent Control Initiative be submitted to the voters at the general melection on November 4, 2014; and

NOW, THEREFORE, BE IT RESOLVED THAT:

SECTION 1. Pursuant to Elections Code sections 9215, subdivision (b) and 14subdivision (b), the City Clerk is ordered to include on the ballot when calling the nextmunicipal election the Senior Mobile Home Rent Control Initiative, the text of which ihereto as Exhibit A.

SECTION 2. The City Clerk is further ordered to provide the City Council witresolutions necessary to call the next general municipal election and place the Senior MRent Control Initiative on that ballot, including but not limited to resolutions concerni

title and label, impartial analysis, and rebuttal arguments.

SECTION 3. The City Clerk shall cause the Senior Mobile Home Rent Controbe printed and to provide a copy of the measure to any voter upon request.


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_________________________

THOMAS ENGSTROM, Mayo

ATTEST:

_______________________________KELLY BUENDIA, Acting City Clerk

CITY OF LAK

Lakeport Redevelopment SuccCity of Lakeport Municipal S


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STAFF REPORT

RE: Consider a Resolution Authorizing the Execution and Deliveryof a Loan Agreement to Refinance Outstanding Side FundObligations of the City to CALPERS, and Directing the Filingof a Judicial Validation Action

MEETING DAT

SUBMITTED BY: Daniel Buffalo, Finance Director



Staff recommends that the City Council adopt Resolution No. ____ (2013) authorizing thedelivery of a Loan Agreement to refinance outstanding side fund obligations of the City toPublic Employees Retirement System, directing the filing of a Judicial Validation Action wthereto and providing other matters relating thereto.

BACKGROUND:

The City is a presently contracting member of the California Public Employees Retiremen(PERS), and under its contract with PERS the City is obligated to make certain payment

respect of (a) retired public safety employees and (b) retired miscellaneous employees, eachFund program of PERS which amortizes such obligations over a fixed period of time (collePERS Side Fund Obligations). CalPERS combines the retirement plans for all public agesmall plans (less than 100 employees like Lakeports safety and miscellaneous plans) aneach member agency a so-called Side Fund to amortize each agencys unfunded liability o(Miscellaneous term ends 2022, and Safety term ends 2021) at a fixed interest rate (currentl

DISCUSSION:

The City has an opportunity to reduce the annual cost to the general fund, water and sewefor its CalPERS Side Fund Obligations. If the City chooses to use this opportunity, it woulloan from a financial institution (the Bank) of the Citys choice at a later date pursuant toconditions of a Loan Agreement between the Bank and the City (the Loan Agreement), principal component in an amount not-to-exceed $2 400 000 designated the City of Lakep

equates to $24K of savings each year through 2021, and $13.5K in 2022. These figures assstructures the new loan to mimic the same payment schedule of its current loan with CalPEsavings on a uniform basis each year. The City also has other structuring options (such asavings upfront, modifying the maturity, etc) that it, along with the assistance of its Financievaluate prior to the execution of this refinancing. A structure will be chosen based upon

i t th Cit hil ti ti l t h d l th t k ithi th Cit


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savings to the City, while creating an optimal payment schedule that works within the City

needs.

RISKS TO SAVINGS

- Changes in Market/Interest Rates: The savings numbers estimated above are basedmarket interest rates. Given that the terms of the loan will not be secured until a few monactual interest rates will not be known until that time. Higher rates would lower the expeclower rates could increase them. The City will be setting a minimum savings target that the

obtain, and will not execute the refinancing unless those terms are met.

- Change in CalPERS Actuarial Asssumption: The 7.50% interest rate that CalPERscalculations of the annual cost to amortize the PERS Side Fund Obligations can be changethe CalPERS board (although such changes occur rarely, and only after exhaustive actuariaanalysis). Specifically, it is possible at some point over the next 9 years (the amortization peCitys Side Funds) that the CalPERS board could lower its 7.50% actuarial earnings assumpreduction would reduce the cash flow savings realized by the City through the issuance of L

CalPERs earnings assumption were lowered to a level approximating the interest rate on thcash flow savings would be eliminated. Staff has conferred with a past State-appointed actuAssociates), and has been told that such a reduction in rate is unlikely, and that if a reductioplace, it will most likely be a minor (for example, .25%) reduction, which only would impacminimally (about $3,200 annually under the uniform savings scenario).

LOAN REPAYMENT

The Loan will be secured by approximately (i) 65% general fund revenues, (ii) 16% water erevenues, and (iii) 19% wastewater enterprise fund revenues. We arrived at the allocations baverage contributions made to CalPERS by each fund over the past five years (see Attachmcurrent municipal market conditions, estimated annual debt service on the Loan would be than the annual payments presently scheduled to be paid to CalPERS for this same purposthe savings section above. The amortization period on the Loan could be the same as the aperiod used by CalPERS for the Side Fund. It could also be shorter or longer depending onneeds of the City and the cost savings preference of the Council. The proposed transactio

an existing obligation to take advantage of low bond market rates. It would not change thexisting or prior City employees.

Expenses associated with the execution and delivery of the Loan will be paid from Loan prcontingent on the Loan being executed and delivered by the City. See Attachment 4 for a

SUBJECT RESOLUTION

The subject Resolution appoints p2 Capital Advisers as Financial Advisers to the City and Firm as Bond Counsel to the City for this refinancing. Both firms will be available to reviewCouncil the solicitation and selection process, the documents included with this Agenda itereport on other necessary Council actions and the anticipated sequence of events should th


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to move ahead with this Refunding.

The subject Resolution being recommended for adoption essentially authorizes and approvLoan Agreement necessary to provide for the successful execution and delivery of the propLoan Agreement provides for all of the terms and conditions of the proposed Loan to the Bank (to be determined), secured by the Bonds, including, but not limited to, closing condiprepayment provisions, and the pledge of revenues (being comprised of (i) 65% general fu16% water enterprise revenues, and (iii) 19% wastewater enterprise fund revenues) commescheduled debt service on the Loan.

The Resolution also authorizes Bond Counsel, with the assistance of the City Attorney, to validation procedure in the local Superior Court. This involves filing a court action to publCitys intention to execute and deliver the Loan Agreement to refund the existing PERS SiObligations. If there is no challenge, the validation is ratified by the Superior Court typicallof its filing. The validation is necessary to affirm Bond Counsels position that the Loan is Constitutional Debt Limit because the proceeds are being used to refinance a pre-existing oimposed by law

FISCAL IMPACT

The Loan will bear interest at a rate that is presently expected to be less than 5.10%, takingPERS Side Fund Obligations which presently bear interest at a rate of 7.5%. The Loan willfully amortizing basis likely matching the presently existing amortization period of the PERObligations. As noted above, the estimated annual payments made by the City are expecte$24K lower through 2021, and $13.5K lower in 2022. For 2013/14, this annual loan paym

to be about $300K (compared to the $324K under the CalPERS loan terms). The total cofully contingent, and are not expected to exceed $80k. These costs have already been factoestimated savings figures.

ESTIMATED SCHEDULE

9/17 Council approval of bond documents and validation process

9/18 Validation action filed in Superior Court

October Finalize credit package; engage potential investors

12/3 Distribute official bidding package to potential investors

12/5 Receive investor bids and select lowest interest rate bidder; contract signed

directing the filing of a judicial validation action with respect thereto and providing other mthereto.

2. Do not approve but provide direction to staff.

FISCAL IMPACT:


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None $Estimated net present value savings to the City of $173,000Number:

SUGGESTED MOTIONS:

Approve and authorize the City Manager to execute the attached Loan Agreement and assoto refinance outstanding side fund obligations of the City to the California Public EmployeSystem, and direct the filing of a judicial validation action with respect thereto and providinrelating thereto.

Attachments: Attachment 1: Draft Loan Agreement

Attachment 2: Refinancing Analysis

Attachment 3: Fund Salary Share Analysis

Attachment 4: Detail Cost of Issuance (Transaction Cost Summar

Attachment 5: Authorizing Resolution

ATTACH


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SERIES 2013 REFUNDING LOAN AGREEMENT

By and Between

CITY OF LAKEPORT

And

___________________________

Dated as of December 1, 2013

Relating to the

$__________

CITY OF LAKEPORT

TABLE OF CONTENTS

ARTICLE IDEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICABI

ATTACH


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DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICABI

Section 1.1. Definitions...............................................................................................Section 1.2. Benefits of Loan Agreement Limited to Parties .....................................Section 1.3. Successor Is Deemed Included in all References to Predecessor ...........Section 1.4. Waiver of Personal Liability ...................................................................Section 1.5. Article and Section Headings, Gender and References ..........................Section 1.6. Partial Invalidity......................................................................................

ARTICLE IIREPRESENTATIONS OF THE DISTRICT

Section 2.1. Representations, Covenants and Warranties of the City .........................Section 2.2. Representations, Covenants and Warranties of the Bank .......................

ARTICLE IIITERMS OF THE LOAN AND LINE OF CREDIT

Section 3.1. Obligation to Make Loan; Amount of Loan; Term ................................Section 3.2. Application of Loan Proceeds .................................................................Section 3.3. Application of Costs of Issuance Set-Aside Moneys ..............................Section 3.4. Optional Prepayment ..............................................................................Section 3.5. Execution of the Loan .............................................................................Section 3.6. Validity of the Loan Agreement .............................................................Section 3.7. Assignment by the Bank ..........................................................................Section 3.8. Closing Conditions...................................................................................

Section 3.9. Events Permitting Bank to Terminate ......................................................

ARTICLE IVSECURITY

Section 4.1. Security for the Loan ..............................................................................Section 4.2. Loan Repayments....................................................................................Section 4.3. Loan Repayment Fund; Allocations .......................................................Section 4.4. Special Obligation of the City; Obligations Absolute ............................

Section 4.5. Reduction upon Partial Prepayment........................................................Section 4.6. Rate on Overdue Loan Payments ............................................................

ARTICLE V

TABLE OF CONTENTS

(continued)

Section 5.6. Information to Bank ................................................................................Section 5.7. Obligation of the City .............................................................................

ATTACH


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Section 5.8. Certain Financial Covenants of the City .................................................

ARTICLE VIEVENTS OF DEFAULT AND REMEDIES

Section 6.1. Events of Default and Remedies .............................................................Section 6.2. No Remedy Exclusive .............................................................................Section 6.3. Non-Waiver .............................................................................................

ARTICLE VIINOTICES; JUDICIAL REFEREE

Section 7.1. Notices ....................................................................................................Section 7.2. Judicial Referee .......................................................................................

ARTICLE VIIIAMENDMENTS; DISCHARGE; GENERAL AUTHORIZATION; EFFECTIV

Section 8.1. Amendments Permitted ...........................................................................Section 8.2. Discharge of Loan Agreement ................................................................Section 8.3. General Authorization .............................................................................Section 8.4. Binding Effect .........................................................................................Section 8.5. Severability .............................................................................................Section 8.6. Further Assurances and Corrective Instruments .....................................Section 8.7. Applicable Law .......................................................................................Section 8.8. Captions ..................................................................................................

Section 8.9. Execution in Counterparts.......................................................................

EXHIBIT A Loan Payment Schedule ............................................................................EXHIBIT B Form of RequisitionCosts of Issuance Fund .........................................EXHIBIT C Form of Annual City Certificate Regarding Budget and Appropriation..

LOAN AGREEMENT

THIS SERIES 2013 REFUNDING LOAN AGREEMENT (this Loan

ATTACH


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THIS SERIES 2013 REFUNDING LOAN AGREEMENT, (this Loan

dated for convenience as of December 1, 2013, is by and between _________corporation duly organized and existing under the laws of the State of _________, witauthority to conduct business in the State of California (the Bank), and the CITY OFa municipal corporation and general law city duly organized and existing under the lawof California (the City);

W I T N E S S E T H:

WHEREAS, the City is a contracting member of the California PublicRetirement System (PERS), and under its contract with PERS(the PERS Contracobligated to make certain payments to PERS in respect of (a) retired public safety empretired miscellaneous employees, each under the Side Fund program of PERS which aobligations over a fixed period of time (the PERS Side Fund Obligations); and

WHEREAS, The PERS Contract was first effective _______ 1, 19__ and amended several times, including the most recent Amendment to Contract, effectiv

20__.

WHEREAS, the City has determined to authorize the execution and deliveryAgreement in an aggregate principal amount necessary to aid in (i) refunding the PEObligations, and (ii) paying the associated costs of issuance; and

WHEREAS, for the purposes set forth herein, the Bank has proposed to make hereby designated the City of Lakeport, Series 2013 Refunding Loan Obligation (20Refunding Project (the Loan) to the City pursuant to terms and conditions

Agreement, as authorized under a Resolution adopted by the City Council (the Councion September 17, 2013; and

WHEREAS, the Council, after due investigation and deliberation, has determinthe public interests of the City at this time to provide for the refunding and defeasancObligations (the Refunding); and

WHEREAS, the principal of and interest and redemption premium (if any) on

any bonds or other obligations issued on a parity therewith as provided herein, are paysource of legally available funds of the City, including amounts on deposit in the genercertain percentage share of water and wastewater revenues, as set forth herein; and

WHEREAS, the City is authorized under the provisions of Articles 10 and 11

secure the payment of the principal thereof, premium (if any) and interest thereon,authorized the execution and delivery of this Loan Agreement; and

WHEREAS the Loan Agreement has been determined to be a legal valid

ATTACH


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WHEREAS, the Loan Agreement has been determined to be a legal, valid

obligation of the City by judgment of the Lake County Superior Court rendered on ___in County of Lake v. All Persons Interested, etc., Case No._________.

WHEREAS, all things necessary to make the Loan when issued, executed andvalid and binding obligation of the City, and to constitute this Loan Agreement as a vthe general revenues herein pledged to the payment of the principal of, prepayment preand interest on the Loan have been done and performed, as required by law, and the Ciauthorized to enter into this Loan Agreement, subject to the terms hereof;

NOW, THEREFORE, THIS LOAN AGREEMENT WITNESSETH, thsecure the payment of the principal of and the interest and premium (if any) on the LoaOutstanding under this Loan Agreement, and to secure the performance and observacovenants and conditions therein and herein set forth, and to declare the terms and coand subject to which the Loan is premised, and in consideration of the premises and covenants herein contained and of the making of the Loan by the Bank, and for oconsiderations, the receipt whereof is hereby acknowledged, the City does hereby

agree, for the benefit of the Bank from time to time of the Loan, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICABI

Section 1.1 Definitions. Unless the context otherwise requires, the terms section shall for all purposes hereof and of any amendment hereof or supplement herereport or other document mentioned herein or therein have the meanings definefollowing definitions to be equally applicable to both the singular and plural forms terms defined herein.

Accountant means any firm of independent certified public accountants seCity in its sole discretion.

Annual Loan Repayments means the Loan Repayments payable on Loan durYear.

Authorized Representative means the Citys Mayor, Mayor Pro Tem, CitFinance Director, or any other person designated as an Authorized Representative ofCertificate of the City signed by its Mayor, Mayor Pro Tem or City Manager and filedand the Bank

Bond Counsel means The Weist Law Firm, or another firm of nationaattorneys experienced in the issuance of obligations the interest on which is excludabincome under Section 103 of the Code.

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Bond Law means the provisions of Articles 10 and 11 of Chapter 3 of Part 1of Title 5 of the California Government Code, commencing with Section 53570 of saeffect on the Closing Date or as thereafter amended.

Business Day means any day other than (a) a Saturday or Sunday or a dbanking institutions in the State or the State of New York are authorized to close owhich the New York Stock Exchange is closed.

Certificate, Request and Requisition of the City means a written certificrequisition signed in the name of the City by its Authorized Representative. Any suand supporting opinions or representations, if any, may, but need not, be combineinstrument with any other instrument, opinion or representation, and the two or moreshall be read and construed as a single instrument.

City means the City of Lakeport, a municipal corporation and general organized and existing under and by virtue of the laws of the State of California.

City Share means the obligation of the City under this Loan Agreement to percent (65%) of all Loan Payments from Gross Revenues, as set forth herein andhereto.

City Councilor Council means the City Council of the City.

Code means the Internal Revenue Code of 1986, as amended. Each referenof the Code herein shall be deemed to include the United States Treasury regulatiotemporary and proposed regulations relating to each such section that are applicableObligations or the use of the proceeds thereof.

Costs of Issuance means all expenses incurred in connection with the execution and delivery of this Loan Agreement and Loan and the application of the prLoan, including but not limited to all compensation, fees and expenses (including but fees and expenses for legal counsel) of the City, compensation to Bond Counsel andconsultants, insurance premiums, rating agency fees, other legal fees and expens

recording costs, costs of preparation and reproduction of documents and costs of printin

Costs of Issuance Fund means the fund by that name established and maintato Section 3.7 hereof

Department of the Treasury of the United States of America; and (b) any obligatiopayment of principal of and interest on which are fully guaranteed by the United States which are secured by obligations described in the preceding clause (a).

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Fiscal Year means any twelve-month period extending from July 1 in one caJune 30 of the succeeding calendar year, both dates inclusive, or any other twelve-selected and designated by the City, as applicable, as its official fiscal year period.

Funded Debt means all outstanding liabilities of the City for borrowed mointerest-bearing liabilities, including current and long term debt and the stated amount ocredit (other than a letter of credit that is cash secured) issued for the account of the City

Generally Accepted Accounting Principles means the generally accepteprinciples as presented and recommended by the American Institute of Certified Publior its successor, or by any other generally accepted authority on such procedures, anapplicable, the standards set forth by the Governmental Accounting Standards Board or

Gross Revenues means all revenues, moneys, accounts receivable, contracpayment, and other rights to payment of whatever kind legally available to pay Loan Rthe Loan to the extent of the City Share.

Independent Certified Public Accountant means any certified public accountcertified public accountants appointed and paid by the City, and who, or each of whom:

(a) is in fact independent and not under domination of the City;

(b) does not have any substantial interest, direct or indirect, in the C

(c) is not connected with the City as an officer or employee of the

may be regularly retained to make annual or other audits of the books of or reports to th

Independent Financial Consultant means a financial consultant qualified imunicipal finance, appointed and paid by the City, and who:

(1) is in fact independent and not under the domination of themember thereof;

(2) does not have a substantial financial interest, direct or inoperations of the City; and

(3) is not connected with the City as an officer or employee of thmember thereof, but may be regularly retained to audit the accounting records of and

Loan means the City of Lakeport, Series 2013 Refunding Loan Obligation (2Refunding Project), made pursuant to this Loan Agreement.

Loan Agreement means this Loan Agreement between the Bank and the City

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or amended or supplemented from time to time pursuant to the provisions hereof.

Loan Proceeds means the $__________ amount received by the City from th

Loan Payment Date or Payment Date means May 1 and November 1 commencing May 1, 2014 and continuing to and including the date on which the Lhave been paid in full.

Loan Repayments means all payments required to be paid by the City, as suon Exhibit A hereto, on each Loan Payment Date pursuant to Section 4.2, and prepayment thereof pursuant to Section 3.4 or 3.5 hereof.

Loan Repayment Fund means the fund by that name established and maintato Section 4.2 hereof.

Miscellaneous Employees Plan means the obligation of the City to mpursuant to the PERS Contract with respect to certain of the Citys miscellaneous emplo

Permitted Investments means any of the following which at the time of ilegal investments under the laws of the State of California for the moneys proposed therein:

(a) Federal Securities;

(b) Any direct or indirect obligations of an agency or department

States of America whose obligations represent the full faith and credit of the UnAmerica, or which are rated A or better by S&P.

(c) Interest-bearing deposit accounts (including certificates of depoor State chartered savings and loan associations or in federal or State of California banthe Trustee), provide that: (i) the unsecured obligations of such commercial bank or saassociation are rated A or better by S&P; or (ii) such deposits are fully insured bDeposit Insurance Corporation.

(d) Commercial paper rated in the highest short-term rating categor

(e) Federal funds or bankers acceptances with a maximum term oany bank with an unsecured, uninsured and unguaranteed obligation rating in the

(g) Obligations the interest on which is excludable from gross incomSection 103 of the Tax Code and which are either (a) rated A or better by S&P, or (b)as to the payment of principal and interest by Federal Securities.

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(h) Bonds or notes issued by any state or municipality which are raone of the two highest rating categories assigned by S&P.

(i) Any investment agreement with, or guaranteed by, a financial long-term unsecured obligations or the claims paying ability of which are rated A or betthe time of initial investment.

(j) The Local Agency Investment Fund of the State of California,

Section 16429.1 of the California Government Code, to the extent the City is authorizsuch investment in its name.

PERS or CalPERS means the California State Public Employees Retireme

PERS Contract means the contract, as amended from time to time, entered inand PERS pursuant to the Retirement Law obligating the City to make contributionexchange for PERS providing retirement benefits to certain City employees.

PERS Side Fund Obligations means the obligation of the City under the Rand the PERS Contract to make payments to PERS with respect to benefits accruing tosafety employees and certain other employees of the City under the Public Safety Emand the Miscellaneous Employe

091713 lakeport city council agenda packet

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