HomeMy WebLinkAboutMin 06-25-02 MINUTES OF THE UKIAH CITY COUNCIL
JOINT MEETING WITH UKIAH VALLEY SANITATION DISTRICT
TUESDAY, JUNE 25, 2002
The Ukiah City Council met at a Joint Meeting with the Ukiah Valley Sanitation District
on June 25, 2002, the notice for which had been legally noticed and posted, at 3:02
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,
Finance Director Elton, Risk Manager/Budget Officer Harris, City Manager Horsley, and
City Clerk Ulvila. Ukiah Valley Sanitation District Board Members present: Director
Michael Delbar and Philip Baldwin. Absent by prearrangement: Richard Shoemaker.
Recording Secretary: Tammi Weselsky.
2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No one came forward to address Council.
3. PUBLIC HEARING -CONSIDERATION AND ADOPTION OF FISCAL YEAR
Al
2002-2003 BUDGET
Overview of Proposed Budget by City Manager/Director of Public Utility
Review of City/District Fund Accounts
i. Sewer/Wastewater Treatment (pages 232-246)
ii. City Sewer Service (page 247)
iii. Sanitation District Sewer Main Construction (pages 248-249)
iv. City Capital Improvement (page 250)
v. Sanitation District Revolving (page 251)
vi. Sanitation District Special (page 252-253)
vii. Sanitation District Capital Improvement (pages 254-255)
Public Utilities Director Barnes explained that the budget for the Ukiah Valley
Sanitation District reflects no large capital purchases other than normal part
replacement at the Wastewater Treatment Plant and work within the infrastructure in the
streets. There is a budgeted expenditure of approximately $3 million for engineering
fees for the design of the expansion to the Wastewater Treatment Plant.
Upon questioning by Mayor Ashiku with regard to how the money for the Wastewater
Treatment Plant expansion is derived and allocated, Finance Director Elton referred to
the Sewer Construction Fund on page 248 and explained that this is where $3 million of
the design expenditures are listed. He explained that the Revenue listing of Lease
Purchase Financing was developed to hold a place for the potential financing and no
decision has been made as to how this will be funded. The Ukiah Valley Sanitation
District (District) has a capital improvement fund with a balance of approximately $2.1
million and the City has a capital improvement fund with approximately $1.5 million
balance. The options for funding go either to the ratepayers or to connection fees. In
the past, construction expenses have been funded on the basis other than on the
proportion of existing ratepayers for expansions. One way in which funding could be
developed for the initial money is to use the capital expansion fees and determine a
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And Ukiah Valley Sanitation District
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percentage based on the proportion that the District might benefit verses the City. The
governing bodies would need to make that decision.
Councilmember/Director Baldwin explained that the District Board of Directors has
not had an opportunity to discuss this matter.
Director Barnes explained that staff has solicited and received proposals, which are
currently being evaluated. The evaluation should be completed near the beginning of
August and staff would provide those results to the City Council and the District for
approval.
Councilmember/Director Baldwin inquired if the City looked at connection fees, rather
than fee increases, and then it turned out that development was retarded for other
reasons, such as for the lack of water, and we were basing everything on new
connection fees.
Discussion followed concerning the establishment of a formula for funding the
expansion to the Wastewater Treatment Plant. It was noted that there are a few more
ratepayers outside the City Limits compared to those within the City Limits.
Mayor Ashiku expressed concern with the City participating on a one-third basis for
something that would be largely an out of the City limits project.
Councilmember Larson was of the opinion that this project would considerably expand
the capacity of the Water Treatment Plant. One of the issues that's motivating it is that
the plant is old and many things need to be replaced or upgraded to meet current and
near future standards. Even if the City were not anticipating any growth, the City would
still need to do some improvements to the Plant.
Director Barnes explained that this project would expand the capacity of the Plant.
There are parts of the Plant that would need to be rehabilitated.
Councilmember Larson felt there is a need to make an effort to establish a formula
that addresses existing ratepayers obligations to upgrade and maintain what we have
and the additional expense of expansion and how far that should go to meet whatever
growth is anticipated, and identify how it would be funded.
Mayor Ashiku recalled that last year Dire(~tor Barnes gave a presentation and it was
evident to him at that time that the bulk of the cost associated with this retrofit, change,
and upgrade was associated with anticipated future growth. He felt it very important
that a formula be developed before going much further so we will know what our
commitments and responsibilities are going to be.
Director Barnes advised that the preliminary engineering estimate was about $15
million for that portion of the project. Approximately $9 million was designated for the
westside relief sewer, which increased it to $22 million.
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Councilmember/Director Baldwin inquired as to the implications of adopting this
budget without a payment formula.
Director Elton explained included this expenditure should not interfere with adopting
the budget, however, Council should commit, as part of that, to being prepared to
determine, at a later date, how the funding would be obtained.
City Manager Horsley explained that the next District meeting would take place after
the Council's July 17, 2002 meeting. If Council would like, staff could agendized the
matter for discussion at that meeting for direction to Councilmember/Director Baldwin.
Discussion followed concerning the possibility of the City Council and the District
holding another Joint Meeting to discuss the matter. It was the Consensus of Council
to agendized the matter on the City Council meeting agenda for July 17, 2002.
Councilmember Larson was of the opinion that the District should carefully consider
any annexation potential in terms of determining the need for new hookups. We may be
designing a project that is too small to meet future needs. The project should match all
the best information from the County, District, and other Districts as well, as to what the
actual needs are for sewer treatment facilities.
M/S Baldwin/Larson adopting the Budget for Fiscal Year 2002-2003 for the Ukiah
Valley Sanitation District portion, carried, by the following roll call vote: AYES:
Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None.
ABSENT: None. ABSTAIN: None.
4. ADJOURNMENT OF JOINT MEETING - To Wednesday, June 26, 2002 at
7:30 a.m.- Public Hearing Continued
3:20 p.m.: Consensus of Council was to adjourn the meeting to 7:30 a.m. on June
26, 2002 to continue the Public Hearing for the Fiscal Year 2002-2003 Budget.
Marie Ulvila, Recording Secretary
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And Ukiah Valley Sanitation District
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