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HomeMy WebLinkAbout2011-01-13 CC Minutes - UVSDCITY OF UKIAH JOINT CITY COUNCIL UKIAH VALLEY SANITATION DISTRICT MINUTES CIVIC CENTER COUNCIL CHAMBERS 300 Seminar Avenue Ukiah, CA 95482 January 13, 2011 6:00 p.m. 1. Roll Call Ukiah City Council met at a Special Joint Meeting of the Ukiah City Council and the Ukiah Valley Sanitation District on January 13, 2011, the notice for which having been legally noticed on January 7, 2011. Mayor Rodin called the meeting to order at 6:00 pm. Roll was taken with the following Councilmembers present: Landis, Thomas, Baldwin (arriving at 6:08 pm), and Mayor Rodin. Councilmembers absent: Crane. City Staff present: City Manager Chambers, Director of Finance Elton, Director of Public Works/City Engineer Eriksen, City Attorney Rapport, and City Clerk Currie. Sanitation District Board present: Directors Ronco, Porter, McNerlin, and Vice-Chair Pallison. Sanitation District Board absent: Chair Paulin. UVSD Staff present: UVSD District Manager/Clerk Kennedy, County Council Walker, and Board Secretary Clark. 2. Director of Public Works/City Engineer Eriksen: • Presented the item. • Followed-up on the status of the complaint and corresponding investigation relevant to the two fines imposed by the State concerning the reporting requirements for the discharge quality of nitrate and copper at the City Sewer Treatment Plant. The State Board staff did not approve of the reports submitted in this regard. • During the course of the complaint period, the State Board staff recommended City Council speak with State Counsel regarding how to proceed wherein it was agreed the best approach was to change from Option 4 to Option 2 and defer payment of the fine while City and State Board staff discuss the two items in dispute. • Provided an update on the Board and Council past discussions of the 4 options the State had offered in order to proceed and settle the issue. Council initially supported Option 4 to waive the hearing requirement with the State Board and submit a proposed supplemental environmental project. There was discussion regarding the reporting process and measures taken to prevent future violations, cost of the fines and cost of staff time to address/resolve the dispute by working with State staff concerning the claims for two substances not being in compliance with the discharge limits. Recommended Action: Receive Report. Page 1 By Consensus, Council received report. 3. Verbal Status Report Of Facilitation Process (Time Limit of 10 minutes) Vice Chair Pallison, representing the UVSD reported on the item: • Attendees of the recent meeting held in January of the Ad Hoc Committee that the City and Sanitation District jointly commissioned discussed the report regarding the facilitation process and recommendations made by this Committee in 2008. • The primary function of the Ad Hoc Committee is to examine and make recommendations regarding sewer system governance as provided for in the Participation Agreement. • There was agreement on the majority of the items in the report and more information was requested for those items requiring further discussion. • While the meeting was overall very positive and productive, the items and recommendations made by the Ad Hoc Committee did not adequately address the issues presented by Councilmembers Baldwin and Landis about inefficiencies and redundancies of process, as well as the issue of fairness wherein there is more work to do in these areas. • While the Committee recommends revising the Participation Agreement between the City and UVSD to more appropriately address delivery of service, they requested clarification regarding the Participation Agreement and the extent to which the combined mediation committee has the mandate to resolve and discuss specific issues that have been raised in the past about fairness of process having to do with bill collecting, financial issues, and other relevant issues. • Supports having consent from Council and the UVSD Board members to at least be able to discuss and make recommendations regarding the issues raised pertinent to delivery of service/billing and collection and associated costs/financial issues so as to resolve system operations/management issues. Councilmembers Baldwin and Landis were in attendance at the Committee meeting. They acknowledged the positive nature of the meeting with the hope that this approach continues, and commented on three positive 2008 Ad Hoc Committee recommendations that essentially drive/direct the decision making processes by focusing on ways to sustain wastewater treatment/collection services and systems with the application of solutions related to economic feasibility, protection of the environment, and benefits to rate payers. It was noted the Ad Hoc Committee typically meets on the second and fourth Thursdays of each month from 5 to 7 p.m. Councilmember Thomas is supportive of the Committee continuing to operate and make recommendations to City Council and UVSD Board for review and discussion. Councilmember Baldwin is of the opinion that the City of Ukiah and UVSD must be able to work cohesively so that the decisions made will have the public's best interests in mind. Page 2 There was joint discussion concerning the working definitions of 'participation' and `agreement' in conjunction with the Participation Agreement as it relates to City Council and UVSD Board having the ability to make effective joint decisions that meet the needs of citizens as well as provide for the protection of the environment and maintain/sustain economic feasibility to the agencies. It may be that the 'Participation Agreement' needs review to make certain the joint members are cooperatively and consistently keeping in mind the three recommended Ad Hoc Committee solutions referenced above when making decisions that are ultimately for the benefit of the community while minimizing costs to the agencies and maximizing efficiency. Specifically, the District Manager has identified savings offsetting County processing costs by reducing the District's share of City billing and collection charges using the assumption that all of the 47.5% of the District share would be saved whereby the Participation Agreement allows for that sharing of costs on a percentage basis so the savings from the collection procedures no longer used would need to be applied on that basis. Public Comment Opened: 6:18 p.m. Mark Oswell speaking to the item: • Resides in the City and within the Ukiah Valley Sanitation District. • Has problems tracking sewer rates with regard to his rental properties. • Is not supportive of potentially including sewer bills in one lump sum on property tax bills for collection purposes because this, in his opinion, is too much money to pay out annually or semi-annually. • Is not familiar with the UVSD function other than for assessment and billing since the City owns the infrastructure. Public Comment Closed: 6:21 p.m. 4. Discussion Of Billing And Collection Limit of 10 min District Manager Kennedy presented the item. Billing and collection options are only in the discussion stage at this point. o The Agenda Summary Report provides statistical and background information pertinent to the discussion of service, costs and rates and new software to increase efficiency and accuracy. o The UVSD is reviewing/discussing what options it has with regard to billing and collection of District accounts since the District has delinquent accounts that are outside of the City limits. The fact that District customers residing outside the City limits cannot have their services disconnected as an inducement to pay monthly sewer service charges does disadvantage the District's collection of back payments owned. o The Participation Agreement does provide for cost sharing processes to help minimize costs. o Placement of sewer bills on the property tax bills is a way to collect fees for all of the District customers, including those that are delinquent. Page 3 Recommended Action: Both City Council and UVSD Board members receive this report. By consensus Council and UVSD Board received report. 5. City Resident Issues Related To Discussion of Billing and Collection Options Available to The District (Time Limit of 20 minutes) City Manager Chambers presented the item and referred to the Agenda Summary Report that addresses City resident issues related to billing and collection options available to the District. • The current practice is that the City of Ukiah provides billing and collection services for the District wherein all customers of the system inside the City limits receive the same bill and collection services and while customers outside of the City limits receive the same billing services, they are not subject to the same collection process as City customers because they do not participate in City water and electrical services that are subject to disconnection as do the residents of the City of Ukiah. • The City budgets for collection services whereby the District is charged 47.5 of those costs. The District staff is proposing the aforementioned expenditure could be reduced by instituting a new collection system through the Mendocino County Property Tax bill, which would in turn eliminate the cost related to billing for the District for customers both inside and outside of the City limits. • There is also the issue of delinquent accounts occurring outside of the City limits on which the District Manager has taken action to place uncollectable accounts on the property tax bill of owners where these uncollected accounts have occurred. As a result, procedural conflicts have arisen with the participation of the District Manager with regard to his direct collection efforts such that City billing and collection staff must contact the District Manager on a case-by-case basis to find out what has transpired with the account. • There will be fiscal impacts to the City depending upon what choices the District makes about a billing and collection process. • City staff recommends the District limit its collection through property taxes to only those accounts outside of the City limits wherein the District could achieve its goal of recovering delinquent funds owned through the process thereby administering an alternative billing and collection process to those customers outside of the City limits without conflicting customer service for customers residing in the City. • City staff does support the District Manager's concept of changing the consumption basis for determining billing from one month to three months, thus minimizing costs. • Supports detaching Ukiah City residents from the UVSD because the billing services differ from those in the District boundaries and outside of the City limits. Recommended action: Both City Council and UVSD Board members receive this report. Finance Director Elton reported on costs and timing of moving to a three month average for consumption. There was discussion regarding the report and city staff's recommendation to detach Ukiah City residents from the UVSD collection process. Page 4 By consensus City Council directed staff to agendize detaching Ukiah City residents from the UVSD. 6. Ukiah Valley Sanitation District Board Appointment of District Engineer Other Than City Engineer of the City of Ukiah (Joint Discussion Of UVSD Board Appointment Of District Engineer, Replacina City Enaineer In The Position) (Time Limit of 30 minutes) District Manager Kennedy presented the UVSD agenda item. UVSD Recommended Action: Discuss the issue and provide answers to the City's questions. City Manager Chambers presented the item. Recommended Action(s): Receive report and provide direction to staff regarding these boundary and jurisdiction conflicts. There was discussion concerning the issues of concern with the overlapping of authority between the City and District Engineer of the UVSD relevant to jurisdiction of capital projects overlapped by the District boundaries; private development projects inside the City limits that overlap with the District boundaries; engineering decisions and direction to maintenance crews, timing on the District to change ordinances that do not define or refer to the District Engineer (Rick Kennedy) but only to the City Engineer, Director of Public Works, and Director of Public Utilities, which are City-oriented departments; and the District Engineer directing work of City employees. This item was referred to the next governance of the Ad Hoc Committee. Public comment opened: 7:40 p.m. Public speaking to the item: JR Rose Public Comment Closed: 7:43 p.m. 7. Status Report Of City's Requested Previous Year Adjustments To UVSD 07/08 Audit And Issues Related To City Operation Of A Sinale Wastewater System (Time Limit of 30 Minutes) City Manager Chambers and Finance Director Elton presented the item. Recommended Action(s): receive and provide additional direction to staff as necessary. • The City has provided wastewater treatment facilities in the form of a collection system and treatment plant for rate payers located within City of Ukiah boundaries and residents of the unincorporated County of Mendocino for more than 50 years whereby the City organization has developed expertise in the delivery of wastewater collection and treatment services. Page 5 • The revenues and expenditures for providing wastewater collection and treatment services are accounted for by the City on a standalone enterprise fund basis and are not co-mingled with other City services. • The system has been operated as one system by the City of Ukiah although the territory and customers served by the system is comprised of two entities, i.e., City of Ukiah and the UVSD. • A Participation Agreement was entered into by the City and UVSD allowing the UVSD to participate with the City in the wastewater system. • While there have been amendments to the Agreement, this Agreement did not provide for the correction pertinent to overlapping territory. The Agreement provides for a sharing of costs to operate the system based on 'ESSU' units. • City staff has endeavored to address billing and collection issues and other relevant issues raised by the UVSD, noting the City also has issues of concern relative to revenue/expenditure allocations, agency responsibilities, and proposed changes to billing and collection processes and proposed collection by property tax for District ratepayers. • The concern is to determine how the City and UVSD can effectively govern wastewater collection and treatment services while allowing the Ad Hoc Committee to focus on recommendations to change the Participation Agreement such that it functions appropriately for the two entities. UVSD Board accepted the report and continued the item for further discussion. 8. Public Comment Public Comment opened: 8:07 p.m. Lee Howard: • Generally commented on the issues discussed tonight regarding the City and UVSD and noted many of these issues have existed for a long time. • Emphasized the need to complete the Municipal Service Review (MSR). • LAFCO may be able to provide some assistance with solutions to the issues in this regard. • Recommends completion of the MSR, and then work on the Participation Agreement. Public Comment closed: 8:11 p.m. 9. Adjournment There being no further business, the meeting adjourned at 8:12 p.m. L 0. ox oAnne M. Currie, City Clerk T an ription: Cath Elawadly Page 6