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HomeMy WebLinkAboutMin 06-19-02MINUTES OF THE UKIAH CITY COUNCIL REGULAR MEETING WEDNESDAY,'JUNE 19, 2002 The Ukiah City Council met at a Regular Meeting on June 19, 2002, the notice for which had been legally noticed and posted, at 6:30 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Larson, Smith, Libby, Baldwin, and Mayor Ashiku. Staff present: Public Utilities Director Barnes, Airport Manager Bua, Community Services Director DeKnoblough, Assistant City Manager Fierro, City Manager Horsley, City Attorney Rapport, Public Works Director/City Engineer Steele, Planning Director Stump, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Mayor Ashiku led the Pledge of Allegiance. URGENCY ITEM: Mayor Ashiku announced that there is an Urgency item that needs to be included on the agenda and the need for action came to the attention of the City subsequent to the agenda being posted. The Urgency Item concerns: Authorization to Purchase Fuel Truck for the Airport. M/S Smith/Baldwin to add the Urgency item to the Agenda as Consent Calendar item 6i; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and MayorAshiku. NOES: None. ABSENT: None. ABSTAIN: None. 3. PRESENTATION 3a. Presentation by Steve Lamb, Manager of Adelphia Cable Steve Lamb, General Manager of Ukiah's Adelphia Cable Company, explained that Adelphia would be moving forward with its annual rate increase to be effective July 1, 2002. There will be a full launch of new channels, both analog and digital, along with a high speed Internet service available in the City of Ukiah. Discussion followed related to new programming, franchise fees, the availability of Internet service, and FCC regulations. Upon questioning by Councilmember Larson, Mr. Lamb explained that Adelphia provides public educational programming (PEG) and noted that Channel 3 is airing non- commercial programming while waiting for a PEG entity to operate that channel. Adelphia is currently in negotiations with the City with regard to renewing its franchise that will include PEG. 3. PRESENTATION 3b. Presentation by Greater Ukiah Chamber of Commerce Elizabeth Brazil, CEO of the Greater Ukiah Chamber of Commerce, stated that the Chamber of Commerce and the City of Ukiah have enjoyed a successful private-public partnership for many years. She discussed the Chamber's operating budget and noted that the money received through the service agreement is used to provide services such as tourism, relocation, and economic development. Through their contractual Regular Meeting June 19, 2002 Page 1 of 16 relationship, the Chamber is able to moderate the cost associated with promoting this area, which directly affects the programs the Chamber is able to provide to the community. She provided Council with a synopsis of the Chamber's work in relation to its mission and items in the service agreement with the Redevelopment Agency. Upon a query by Councilmember Libby, Ms. Brazil advised that currently there are 548 members, with the majority consisting of small businesses. Councilmember Baldwin inquired as to the cost for membership with the State Chamber of Commerce. He went on to question why the Ukiah Chamber includes the State Chamber inserts in their local newsletter. It was his opinion that the inserts are political propaganda. Ms. Brazil explained that the fee is based on the Chamber's budget and the cost to the Greater Ukiah Chamber of Commerce is $160 yearly. She explained that this work, as noted in the service agreement, has nothing to do with anything political, but is strictly based on tourism and economic development. The California Chamber of Commerce is highly political as their members wish it to be. The local Chamber is operating as an information source for businesses in the community and using its newsletter as a pass through. The payment for the newsletter comes from membership and project dollars and is not funded by the City of Ukiah. 3. COMMENDATION 3c. Commendation to Veterans of the Ukiah Valley, Mary_ Lindle¥, and Jerry_ Eriksen Mayor Ashiku read the commendation presented to the Veterans of the Ukiah Valley, Mary Lindley, and Jerry Eriksen in appreciation for their diligence and dedication in spearheading the tremendous showing of American pride and honor during Memorial Day events. Mary Lindley, Ukiah, thanked Council for recognizing the Veterans and the efforts of volunteers during the Memorial Day events. 3. INTRODUCTION 3d. Introduction of New Employee- Jan Tolbert, Development Permit Coordinator Planning Director Stump introduced the City's new Development Permit Coordinator, Jan Tolbert. Jan comes to the City from the City of Petaluma Community Development Department where she worked for 18 years. In this capacity, she had a broad range of important responsibilities involving Planning, Building Inspection, Housing, and Engineering Services. She is now in the process of formulating an electronic tracking system for the City's permits. Jan Tolbert stated that she is happy to be working for the City and felt that the City has a great staff. a APPROVAL OF MINUTES Regular Meeting of June 5, 2002 Regular Meeting June 19, 2002 Page 2 of 16 Councilmember Lerson referred to page 14, and discussed the first sentence of the second paragraph. He thought that the thrust of his statement was that the previous measures that were required to be on the ballot required voter approval. He preferred to add the wording "end required voter epprovel" to the end of the first sentence. M/S Baldwin/Larson approving the Regular Meeting Minutes of June 5, 2002, as amended on page 14, carried by the following roll call vote: AYES: Councilmembers Larson, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: Councilmember Smith. 5. RIGHT TO APPEAL Vice-Mayor Baldwin read the appeal process. 6. CONSENT CALENDAR Councilmember Larson noted a correction to the "Agenda Prompt", item b that was provided to Council. M/S Smith/Larson approving items a through i of the Consent Calendar as follows: a. Approved Disbursements for Month of May 2002; b. Approved Publishing Services by Ukiah Daily Journal for Fiscal Year 2002/2003 in the Amount of $4.96 Per Column Inch for the First Day and $3.45 Per Column Inch for Additional Days; c. Received Notification to Council Regarding Sole Source Purchase of Breaker Cabinet and Switch Cabinet From Cooper Power Systems in the Amount of $14,396.57; d. Authorized Complete Sole Source Purchase of Two Physio-Control Lifepak 12 Heart Monitor/Defibrillators From Medtronic in the Amount Not to Exceed $28,000; e. Received Notification to Council Regarding the Award of Bid for 6,000 ft. of 4/0 AWG Aluminum, 15KV, XLPE Insulated, Non-Jacketed, Concentric Neutral, Single Amount of $8,809.52; f. Adopted Resolution No. 2002-40 Designating City Officials Who May Contract for City Banking Services with Union Bank of California N.A.; g. Authorized Execution of Amendment No., 3 to the Service Agreement For Fuel Card Lock Services For Rino Pacific, Inc.; h. Authorized Execution of Amendment No. 2 to the Service Agreement For Fuel Card Lock Services to Redwood Oil Company; i. Authorized Purchase of Fuel Truck for the Airport. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSTAIN: None. ABSENT: None. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Jim Mulheren, Ukiah, reminded Council of the Greater Ukiah Chamber of Commerce's co-partnership with the City of Ukiah for the Fourth of July celebration and discussed the activities scheduled at the Fairgrounds and Todd Grove Park. He invited Council to attend the festivities. am PUBLIC HEARING Regular Meeting June 19, 2002 Page 3 of 16 8a. Adoption of Resolution Establishing Revised Fee Schedule for Plannin_a -- Permits and Services Planning Director Stump advised that on May 1, 2002, the City Council discussed the recently prepared Planning Permit Fee Study that evaluated how much it costs for the City to process various planning permits. Council provided some direction to staff. Before Council for consideration is a resolution with a fee schedule that staff believes is reasonable and appropriate for the services it provides. He explained staff's recommendation with regard to fee increases for certain types of permits and a reduction in fees for small projects. There is no increase in fees for affordable housing projects, and in some instances there are reductions. Per Council's recommendation, no fee would be charged for appeals. He discussed staff's analysis of a Pre-Application Fee and felt an hourly rate would be difficult to track by staff and therefore suggested a flat fee for large pre-application reviews. There would be no charge for normal pre- application reviews with the general public or developers. Council had previously discussed a penalty fee for violations and staff is suggesting that after the second occurrence, a double fee should become effective. Staff is also recommending a fee for mitigation monitoring which is a very time consuming process required by state law. Councilmember Larson inquired if the recommended $50 fee for continuation of Public Hearings and re-noticing would apply if the hearing body decided a continuance is necessary. Director Stump explained that the intent is that the fee would be imposed when the applicants request a continuance. He suggested the wording be changed to "Public Hearing continuations requested by applicants that require re-noticing." Discussion followed with regard to violations for not obtaining a permit prior to commencement of work. It was noted that the previous discussions by Council concerning a fee waiver applied to citizens who legitimately do not know about the permitting process. However, if someone willingly knows, such as a licensed contractor, perhaps the penalty fee should be imposed. Other issues discussed were second units being considered affordable housing because they provide additional housing stock. The matter of no penalty for the first violation but imposing a fee for subsequent violations was discussed. Mayor Ashiku expressed concern with violations of a use in various zoning districts in which a property owner may not be aware of the restrictions applicable to a particular type of use. Director Stump advised that the Building Department already has fees associated with violations as per the California Uniform Building Code. City Attorney Rapport discussed trying to put enforcement issues into the fee structure and explained that City rules do exist that provide penalties to those who violate the Building Code, Zoning Code, etc. There are civil remedies available to the City that could be pursued that involve an exercise of prosecutorial discretion. Public Hearing Opened: 7:28 p.m. Regular Meeting June 19, 2002 Page 4 of 16 Mary Lindley, Ukiah, recommended the matter be continued to the July meeting so that additional public input could be considered. She also posed questions regarding standard mitigation measures imposed on projects. Director Stump explained that standard conditions of approval are different than mitigation measures and mitigation measures are specific to each project, and are discovered through the review process. Lorey Leaf, Ukiah, was of the opinion that the actual fee costs should be paid by the developer and not included as an increase in fees to everyone. Public Hearing Closed: 7:35 p.m. Mayor Ashiku was supportive of removing the fee waiver for the first offense from the fee schedule; however, he questioned imposing a double penalty fee. Councilmember Larson was supportive of a double fee for violations if an efficient means of determination, such as at a Zoning Administrator, Planning Commission, or City Council hearing to waive that penalty under circumstances of either hardship or ignorance. He noted that paperwork is involved and that the applicant should cover the cost. Mayor Ashiku advised that he is supportive of a policy if the reviewing body could apply discretion. He felt the power of discretion should be allocated to the Planning Director with the understanding that the decision could be appealed. Councilmember Baldwin was supportive of an appeal directly to the City Council rather than burdening the Zoning Administrator. He supported deleting the waiver for the first offense. Most people do not want to see their taxes increased and a fee change is an alternative to taxes being increased. He supported staff's recommendation with that one change. Councilmember Smith agreed with the recommended change concerning the waiver. He inquired about the $100 fee for an address change. Director Stump explained that when someone requests an address change it involves a number of City departmental staff to coordinate the address change relative to the site and ensure that the number requested is appropriate from each department. Councilmember Larson recommended an amendment to the Public Hearing continuations requested by applicants with a fee of $50 is appropriate. There should be no fee if the continuance is part of a hearing. Councilmember Libby preferred to see a comparison of the current fees and services to the proposed fee schedule. She was supportive of the concept of different levels of fees pertaining to the size of the project. She was of the opinion that the proposal Regular Meeting June 19, 2002 Page 5 of 16 contains a very large increase in revenue and fees and felt that many of the fees are excessive. M/RC Baldwin/Ashiku adopting Resolution 2002-41, establishing updated Planning Permit Fees pursuant to City adopted Ordinance 880, with the amendments that there be a fee for Public Hearing continuations requested by applicants that require re- noticing and there be a fee waiver request process for the first offense of a penalty violation. Discussion followed with regard to the motion and the double penalty fee for appeal to Council. City Attorney Rapport noted that for each of the permits there is an established procedure for applying for and appealing any decisions connected with the permit process. If someone wanted to apply for an exemption from the penalty, it could be made part of the application process, subject to the same processing and same right of appeals as the permit itself. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Baldwin, and Mayor Ashiku. NOES: Councilmember Libby. ABSTAIN: None. ABSENT: None. 1 UNFINISHED BUSINESS Discussion of Bid Protest and Award of Bid to Rainbow Construction For the Construction of the Civic Center Addition in the Amount of $979,800 Community Services Director DeKnoblough advised that at the June 5 meeting, Council considered bids submitted by Rainbow Construction in the amount of $979,800 and Cupples Construction in the amount of $992,569 for the construction of the Civic Center addition. Based on discussion of both written and verbal protests submitted by both bidders, the City Council continued the item to the June 19 meeting to allow the City Attorney to review the necessary information. A Memorandum from the City Attorney was included with the Staff Report. City Attorney Rapport explained that there was a bid challenge by Cupples Construction against the Iow bid by Rainbow Construction and there were two irregularities or failure to comply with bidding requirements that the bid challenge was based on. One was the failure to use the City subcontractor's list form and the other was using HLR Construction as a subcontractor for roofing. The allegations regarding HLR were that it did not have a valid state contractors license and it wasn't certified by the Duro-Last Company to install their particular type of roofing materials. Both bidders at the last meeting made presentations and he was asked to investigate the non- compliance with the bidding requirements. Mr. Richardson, of Rainbow Construction, provided the record of the telephone bid that he received from HLR on May 22, 2002 and a follow up letter from HLR breaking down the $26,000 bid that was given by phone into tile and Duro-Last roofing materials and substantiated that it was a materials bid only. He also supplied a letter from Duro-Last saying that they were both certified by HLR as a supplier of materials and as an Regular ,Meeting June 19, 2002 Page 6 of 16 installer. Based on those facts, it was determined that both of the complaining failures involved failure to follow the bid specs. He concluded that in both cases they were "inconsequential irregularities" that the City Council has the discretion to waive. If Council waives them, it can accept the bid from Rainbow Construction as the lowest responsive bid. He explained that the standard for when it's inconsequential is if it provides an advantage to the bidder who committed the irregularity that would give them a competitive advantage against other bidders or would cause a cost difference to the public agency. It was his opinion that Council has the discretion to waive the non- compliance as an inconsequential irregularity. He continued to discuss the various bid inconsistencies. He advised that another complaint involved Mr. Richardson not submitting the qualifying information with the bid. In reviewing the bid specifications, he determined that it was not a requirement to submit the qualifying 'information with the bid. Those submittals would be required after the bid is accepted and it has to be approved by the City before work can proceed. He will be contractually obligated to do that under the contract. Discussion followed concerning the City Attorney's analysis of the bids meeting the City's specifications. There was also discussion concerning the City Attorney's opinion that Rainbow Construction, if awarded the bid, must use Duro-Last products. In these specs, there was certain information about alternative manufacturers that were required to be submitted 14 days prior to submitting the bid and that were part of the bid package. Neither bidder did that. It was his opinion that the time to substitute manufacturers is past. Discussion continued with regard to the City Attorney Rapport's analysis. It was noted that Mr. Richardson stated in his letter that he does not intend to use Duro-Last products. Since neither bidder submitted an alternative 14 days prior to the bid, it could be assumed that both bidders would use Duro-Last products. The City Attorney noted that if Council were not to waive the irregularities, it would have the options of approving the Rainbow Construction bid or to deny all bids and going out for bid again. Paul Andersen, 309 Jones St., Ukiah, was of the opinion that the City should not construct the addition but instead focus on other priorities such as bike lanes, skatepark, homeless shelter, street improvements, saving the money in a reserve fund, or reducing the electrical rates. Brian Momstead, representing Cupples Construction, disagreed with the City Attorney's recommendation. It was his opinion that the City Council has the discretion to determine whether this is a material deviation from the bid specs or an inconsequential deviation. He thought that the focus should be on whether or not Rainbow Construction received a competitive advantage for submitting a bid with a roofing contractor who was unlicensed but also was not certified by the roofing materials supplier to install this type of roof. Whereas, Cupples Construction did supply a roofing subcontractor who is both licensed and certified to install this material. He felt that his client has put forth more effort to find a contractor that is licensed and certified. The Regular Meeting June 19, 2002 Page 7 of 16 difference between the two bids was $13,000 for a $1 million dollar project. He noted that there might be a conflict of interest with the architect in this case, since he rents office space from Rainbow Construction and works on many of their projects. Peter Richardson, Rainbow Construction, advised that they would have to use Duro- Last Roofing. He felt that if the bid is postponed, time would be lost and prices would increase. A qualified and competent installer, approved by Duro-Last, will apply the materials. He discussed some of the construction projects his firm has completed. It is their intention to complete all of the work on the project with their own employees at prevailing wages. City Attorney Rapport explained that under state law, Rainbow Construction is properly licensed. Both contractors have submitted documentation establishing that Duro-Last certifies HLR for using their roofing materials. He referred to a letter dated June 13, 2002 from Tim Hart, General Manager West Coast Division of Duro-Last Roofing, in which he states that HLR Roofing is an authorized dealer/contractor for Duro-Last Roofing. Rainbow Construction can't use HLR to supervise the application unless it is able to contract with them to do the work for less than one half of one percent. Discussion followed with regard to HLR's qualifications, Rainbow Construction's listing HLR as a subcontractor for roofing, Rainbow Construction's listing of subcontractors, how to proceed with award of bid for this project, or to reject one or all bids. City Attorney Rapport noted that one of the defects of Cupples Construction's bid was that they did not list the trades for its subcontractors. Considerable discussion followed with regard to the two bids submitted. M/S Ashiku/Smith awarding the bid to Rainbow Construction by waiving the use of a non-City form and a listing of HLR on the subcontractor's list as inconsequential bid irregularities, for the construction of the Civic Center addition to Rainbow Construct in the amount of $979,800. Discussion followed relative to the motion and the inconsistencies of the bids. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, and Mayor Ashiku. NOES: Councilmember Baldwin. ABSTAIN: None. ABSENT: None. Recessed: 8:39 pm Mayor Ashiku excused himself from the meeting due to illness and Vice-Mayor Baldwin assumed the chair of the meeting. Reconvened: 8:46 p.m. 10. NEW BUSINESS Regular Meeting June 19, 2002 Page 8 of 16 10a. Adoption of Resolution Revising the City of Ukiah Homeowners' Sidewalk Construction Reimbursement Program Public Works Director Steele advised that before Council is a Resolution establishing a new "Homeowners' Sidewalk Construction Reimbursement Program". This program is being proposed to encourage and financially assist homeowners to construct missing sidewalks, curbs, and gutters in residential neighborhoods. Making these improvements would increase property values and enhance the appearance of the community, and at the same time improve accessibility and safety along streets. The improvements will also help reduce storm water runoff from entering the street, and reduce infiltration of water into the structural section of the paved roadway, which can cause deterioration. This program is intended for properties with existing single-family dwellings and single- family dwellings with "second" units, and where sidewalks, curbs and gutters do not exist. Duplexes may also be eligible if one of the units is owner-occupied. The program is not intended for properties such as commercial or industrial, or for multi-dwelling properties. It is also not intended for repairing cracked sidewalks or installing sidewalks on new subdivisions, or for the construction of a new home on vacant land. Initial funding of $50,000 for the program would come from the Special Projects Reserve Fund. In no case would the amount of reimbursement for a sidewalk, curbs and gutter abutting a single parcel exceed $5,000. It is a goal of this program to reimburse the homeowner approximately 50% of the construction cost of the improvements. She requested an amendment to the proposed Resolution to include under "Eligibility- Item 2" or "Procedure, Item 3.1" to read, "The Director of Public Works shall have the authority to make the final determination of eligibility of a project as it relates to the intent of this program." Discussion followed with regard to examples of why a parcel would not qualify for this program. The matter of a corporation requesting funding for residential improvements was also discussed. It was noted by City Attorney Rapport that the proposed Resolution is written to include "property owners". Improvements that reflect more than one-third the value of the property were also discussed. Various scenarios were identified in which this program would be appropriate for reimbursement. It was noted that in many cases, the program might prove to offer incentive to make improvements to properties by owners. Improvements to properties not only increase the property value for the property owner, and would increase the value of the neighborhood. Councilmember Libby inquired as to how many streets in the City would qualify for this program and to what the costs would be. Director Steele provided information to Councilmember Libby regarding contractors bidding on sidewalk improvements. Staff also checked with a local contractor who does this type of work and they advised that the estimated cost would be approximately double the funding allocated in the program. That is what they based their estimates on. Regular Meeting June 19, 2002 Page 9 of 16 Councilmember Larson inquired if privately contracted work on a public right-of-way has to conform to prevailing wage guidelines. Director Steele responded negatively. The homeowner can obtain a cheaper bid than the City can. Councilmember Larson explained that there is information contained in the Bicycle and Pedestrian Master Plan regarding the gaps and missing portions of pedestrian walkways in the City. He noted that possible funding could be obtained from STIP, or federal safety money, especially if the City has an established program that needs to continue. He would like to see some areas prioritized on the basis of safety criteria and traffic volume so that those areas could be targeted for improvements. Councilmember Libby referred to the Staff Report in which it stated that "properties where sidewalks don't exist" and it also says "the greatest financial burden is exhibited". She did not see that mentioned in the Resolution. Director Steele explained that as the Report was being prepared, that sentence was added as an interpretation. The meaning is that the homeowner has less financial incentive or reason to do this. Commercial and industrial owners generate jobs, business, and want to fix their sidewalks because they are concerned with getting customers and employees to their business, and the City currently has a good mechanism for obtaining these improvements. Homeowners don't receive an immediate tax benefit as a larger residential property, such as an apartment complex or duplex. City Attorney Rapport recommended that additional wording to the proposed Resolution of "Ukiah City Code Section 9017" under "Eligibility", and insert "or duplexes where one of the units is owner occupied." M/S Smith/Larson adopting Resolution 2002-42, Revising the Sidewalk Construction Reimbursement Program, with amendments to Eligibility-Item 2" or "Procedure, Item 3.1" and should read, "The Director of Public Works shall have the authority to make the final determination of eligibility of a project as it relates to the intent of this program." Paul Andersen, representing the Walk & Roll Coalition, expressed his support for the program. M/S Smith/Larson to add on page 1 of the Resolution, last paragraph, after "Ukiah City Code Section 9017" under "Eligibility" and insert "or duplexes where one of the units is owner occupied." Motion carried with amendment by the following roll call vote: AYES: Councilmember Larson, Smith, and Vice-Mayor Baldwin. NOES: Councilmember Libby. ABSTAIN: None. ABSENT: Mayor Ashiku. 10. NEW BUSINESS Regular Meeting June 19, 2002 Page 10 of 16 10b. Adoption of Resolution Calling an Election and Authorizing Execution of Agreement with the County of Mendocino for the Provision of Election Services at the City Election to be Consolidated with the Regular Statewide General Election City Clerk Ulvila advised that the City of Ukiah historically has consolidated its elections with Mendocino County. The proposed Resolution, with Agreement, calls for an election on November 5, 2002, consolidating the election with the Statewide General Election, and contracts with the County of Mendocino for election services. The election is necessary to fill the vacancies created by the expiration of two Council terms (Baldwin and Libby) and the term of the Mayor (Ashiku). The estimated cost of election services is approximately $10,600, which will be budgeted accordingly in the fiscal year 2002- 2003 Budget. M/S Smith/Larson adopting Resolution 2002-43, Calling an election and authorizing execution of agreement with the County of Mendocino for the provision of election services at the City election to be consolidated with the regular statewide general election; carried by the following roll call vote: AYES: Councilmember Larson, Smith, Libby, and Vice-Mayor Baldwin. NOES: None. ABSTAIN: None. ABSENT: Mayor Ashiku. 10. NEW BUSINESS 10c. AI3proval of Emergency Interconnection Agreements With Willow and Millview County Water Districts and Review of Draft Petition for Change in Allowed Place of Use Under City Water Rights Permit City Manager Horsley advised that the Willow County Water District agreement included in the Council packet is correct but the Millview County Water District agreement copied from the computer was an older version. She provided Council with the final version for Millview. This matter is being brought back to Council as a consideration of the draft Emergency Interconnection Agreement that the City would enter into with Willow and Millview County Water Districts. The agreement shows the changes from the previous expired agreements that the City had signed with each District. A summary of changes was included in the Staff Report. The City has received verbal approval from Willow and Millview County Water Districts. Once the form of the agreement has been approved, a petition to conclude Millview and Willow County Water Districts in the City's place of use will be filed with the Water Resources Control Board. She noted that the petition would represent that the water will be used only in accordance with the emergency inter.connection agreements. Councilmember Libby inquired as to how often has the City used the emergency intertie agreement whereby Ukiah needed water. Public Utility Director Barnes advised that to his knowledge, the City has not had to use it at all. Councilmember Libby noted that there would be an increase in the cost of the water and noted the other two entities agreed to that. Regular Meeting June 19, 2002 Page 11 of 16 Director Barnes explained that the $0.35 that was in the original contract was based on water being supplied prior to the Water Treatment Plant being in full operation, and the City never recouped those costs in the contract. The current dollar amount brings it closer to actual costs for production. Vice-Mayor Baldwin referred to the letter sent to Mr. McMichael of LAFCO by City Attorney Rapport on May 29, and noted there is wording in the letter that is clarifying but is not included in the proposed agreements. He referred to the phrase "Urgent and emergency conditions do not include inadequate water rights to meet peak demand." This clause is not included in either of the interconnection agreements under "Urgent or Emergency Conditions." Discussion followed with regard to the definition of "emergency and urgent" water conditions. It was noted that emergency conditions should not include inadequate water rights to meet peak demands. Transferring water from one District to another under emergency situations as opposed to meeting peak demands was discussed. City Attorney Rapport noted that the key would be that the situation has to be "unexpected and sudden", which would mean that if they had a chronic water shortage due to inadequate water rights, that wouldn't be sudden or unexpected. If the problem were that there is an inadequate water right to meet peak demand, it would be a chronic condition, not a sudden and unexpected condition. It may also be a violation of their state water permit. Councilmember Larson noted that Ukiah's water permit has to encompass our anticipated peak demand. City Attorney Rapport explained that the language that he thought would be included in the proposed Resolution was "over kill language" that was being included because this issue had been raised. If the language were to be included in the proposed Resolution, it would not have an adverse impact on what the expectations are under this agreement. He noted that currently there is language included in the Resolution that says that the need has to be "sudden and unexpected" and a provision of the contract that says they cannot violate anyone's permits or licenses. If the concern is that they are somehow meeting peak demand because of these innerconnections, and if they were able to do that without violating any of their licenses or permits, what would be the harm in that if it was within the terms of their existing licenses and permits. Paul Andersen, discussed the water quality of other Districts and was of the opinion that Ukiah has a higher grade of water quality. He posed the question of how do we control for the fact that the water Ukiah is receiving in emergency periods is less quality that we are used to receiving. City Attorney Rapport explained that its both the definition of "emergency" in that section, plus section 2.c, which says "Ukiah shall only be required to furnish water service to Millview for the following reasons: an emergency or equipment failure affecting Millview's capacity to deliver water to its customers, to combat a fire within Millview service area, allow for necessary maintenance or repair of Millview equipment Regular Meeting June 19, 2002 Page 12 of 16 not practically achievable without that water service, or contamination of Millview's water source." Those are the only four circumstances under which the City of Ukiah is obligated to furnish water to Millview. It doesn't mention inability to meet peak demand due to inadequate supply of water because we have a dry year. It is not one of those situations. Vice-Mayor Baldwin discussed emergency situations. It is his concern that the water that is, for the time being, plentiful in Ukiah, is used to encourage bad planning to Ukiah's north. The City is suffering significantly in terms of traffic circulation because of bad planning in the north. He preferred the wording noted by the City Attorney be added to the Resolution. Councilmember Libby noted that at a water meeting she attended, she thought they said they were applying for a new water permit. She felt that Ukiah needs a backup water supply if an emergency situation ever occurred where we would need water. M/S Baldwin/Larson approving and authorizing the Mayor to sign the Agreements with Millview County Water District and Willow County Water District regarding change in place of use petition, with the addition of the following language to page 1, Section 2- Urgent, "Urgent or emergency conditions do no include inadequate water rights to meet peak demand." Discussion followed with regard to the recommended action. Motion carried by the following roll call vote: AYES: Councilmember Larson, Smith, Libby, and Vice-Mayor Baldwin. NOES: None. ABSTAIN: None. ABSENT: Mayor Ashiku. 10. NEW BUSINESS 10d. Consideration and Adoption of Resolution Revising Compensation for City Clerk City Manager Horsley advised that based on Council policy, the City Manager is to conduct a performance evaluation of the City Clerk and recommend an increase in compensation to the City Council. In order to provide a comprehensive evaluation of the City Clerk's performance, she met with various City staff members who work directly with or receive services from the City Clerk's office on a regular basis. She also met with the City Clerk to discuss any comments or concerns from the administrative staff's perspective and to determine goals for the coming year. Overall, City Clerk Ulvila continues to perform in a very satisfactory manner in her responsibilities to the City Council, public, and City staff. She discussed some of the City Clerk's accomplishments this last year, of which the City has received compliments. Based on the City Clerk's satisfactory performance, she recommends an increase of 5%, to Step D, based on the step schedule that was adopted by Council last year. Councilmember Libby stated she does not support the City Clerk's position being on an employee pay scale as noted by the salary range steps used for employees and used in the Staff Report. Regular Meeting June 19, 2002 Page 13 of 16 City Manager Horsley advised that last year the City Council voted to have the City Clerk's salary based on steps increases, and on an evaluation of a variety of performance standards for the City Clerk's position. Council felt this process would be the best way to evaluate the City Clerk's performance as an elected official. Mary Lindley, Ukiah, explained the City Clerk Ulvila is very helpful to the public and is an excellent representative of the City. M/S Smith/Larson adopting Resolution 2002-44, Revising the compensation for the City Clerk; carried by the following roll call vote: AYES: Councilmember Larson, Smith, and Vice-Mayor Baldwin. NOES: Councilmember Libby. ABSTAIN: None. ABSENT: Mayor Ashiku. 10. NEW BUSINESS 10e. Consideration and Approval of a City_ Community Beautification Recognition Program City Manager Horsley advised that frequently, the City processes or becomes aware of either a special development project or design renovation that stands out as an excellent example of the goals the City Council has set forth for improving and enhancing our community image. The City doesn't have a way to recognize those projects. She suggested this be a City Council award in recognition of special innovative renovations and construction projects that are completed during the year. This will help the City promote higher quality development and beautification projects, and recognize those individuals for their efforts. She recommended a committee be formed to include one or two Councilmembers, staff members, and to develop criteria for how the program would operate. The committee would bring its findings back to Council for final approval. Councilmember Baldwin explained that it would be nice to recognize the individual or business at the project location. Councilmembers Larson made the recommendation that the committee consist of one or two Planning Commissioners, possibly two Councilmembers, staff, and one person from the Design Review Board. He noted that the committee would review projects on an as needed bases, and dependant on the nomination process. Discussion followed with regard to the award process and the possibility of no nominations occurring during a year and also the possibility of many projects deserving recognition during a year. Councilmember Smith was of the opinion that the committee should establish the guidelines, and then the City could publish the guidelines to inform the community. City Manager Horsley advised that once Council decides which Councilmembers would serve on the committee, she would ask Planning Director Stump to take the matter before the Planning Commission and Design Review Board to determine their interest in serving on the committee. Regular Meeting June 19, 2002 Page 14 of 16 Councilmembers Larson and Libby voiced their interest in serving on the committee. It was the consensus of Council that the composition of the committee should include members of the City Council, Planning Commission, Design Review Board, and City staff. 10. NEW BUSINESS 10f. Consideration and Adoption of Resolution Approving Memorandum of Understanding For Employee Bargaining Unit- Fire Unit Matter discussed in Closed Session. 11. COUNCIL REPORTS Councilmember Smith reported that on May 17, he attended the Homeless Service Planning Group meeting, as the City's representative. He has the statistics for the winter shelter and the City Clerk will provide copies to Council. Councilmember Libby reported that she attended the Chamber of Commerce Community of Champions award. She also attended the Farmer's Market Flag Day celebration. She attended the groundbreaking ceremony for the Grace Hudson Elementary School. On June 14th she attended the Vital Community Forum at Sonoma State. They had a very informative resource fair and she will provide more information to Council at a later time. She attended a workshop at the forum on creating a supportive environment for small businesses and she will bring some information to Council concerning that forum. She inquired about the addition to the Civic Center and inquired if the City is involved with obtaining "cool roofs" to conserve energy. She noted that the state is providing rebates and it is her understanding that funds are still available. City Manager Horsley explained that the City obtained a grant for solar panels on the new addition and will be using them for electricity to the structure. 12. CITY MANAGER/CITY CLERK REPORTS City Manager Horsley provided Council with information concerning the water bond coalition meeting, a budget update from the state, and a draft newsletter was provided for Council to review and provide input to staff by June 24th. She advised that either the last meeting in July or in August, staff would bring the water issues to the Council for discussion and direction to staff concerning policy decisions. As a result of a decision on that matter, a newsletter concerning water issues would be produced and the impact on Ukiah citizens Would be circulated. Today she spoke to the Employer's Council on water and some of the main issues and they will become very involved. City Clerk Ulvila reminded Council that the deadline for applying for vacancies on the Airport Commission, Investment Oversight Committee, Parks, Recreation, and Golf Commission, and the Planning Commission is June 27th at noon. To date, three applications have been received. The terms expire on June 30, 2002. Regular Meeting June 19, 2002 Page 15 of 16 A reminder to Council that there will be no meeting on July 3rd. The meeting scheduled for July 17th will start earlier than normal due to the interviews of candidates for various commissions. The meeting may begin as early as 4:30 p.m. She reminded Council that the nomination period for those wanting to take out nomination papers for the November election begins July 15th and ends August 9th. She has been preparing information for candidate packets and has been in touch with the Fair Political Practices Commission. The City of Ukiah will be hosting a Candidate and Treasurer's Workshop presented by the FPPC in the Council Chambers on Monday, August 12th, from 6:00- 8:00 p.m. There will be no charge for those attending the workshop and they will send announcements to all candidates for office. Adjourned to Closed Session: 10:09 p.m. 13. CLOSED SESSION a. Conference with Labor Negotiator G.C. §54957.6 City Designated Representative: Candace Horsley, City Manager Employee Organization: Fire Unit No action taken in Closed Session. Reconvened at 10:19 pm. 10. NEW BUSINESS 10f. Consideration and Adoption of Resolution Approving Memorandum of Understanding For Employee Bargaining Unit- Fire Unit M/RC Larson/Smith adopting Resolution 2002-45, Adopting Memorandum of Understanding Between the City of Ukiah and the Fire Unit carried by the following roll call vote: AYES: Councilmember I_arson, Smith, Libby, and Vice-Mayor Baldwin. NOES: None. ABSTAIN: None. ABSENT: Mayor Ashiku. 14. ADJOURNMENT TO TUESDAY, JUNE 25, 2002, 8:00 A.M. 2002/03 BUDGET HEARING M/RC Smith/Larson to Adjourn the Meeting to Tuesday, June 25, 2002, at 8:00 a.m. for the2002/03 Budget Hearing, carried by the following roll call vote: AYES: Councilmember Larson, Smith, Libby, and Vice-Mayor Baldwin. NOES: None. ABSTAIN: None. ABSENT: Mayor Ashiku. There being no further business, the meeting was adjourned at 10:20 p.m. Marie Ulvila, City Clerk Regular Meeting June 19, 2002 Page 16 of 16