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HomeMy WebLinkAboutMin 01-20-99MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, January 20, 1999 The Ukiah City Council met at a Regular Meeting on January 20, 1999, 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: Councilmembers Libby, Baldwin, Ashiku, and Vice-Mayor Kelly. Councilmembers absent: Mayor Mastin. Staff present: Public Utilities Director Barnes, Community Services Director DeKnoblough, Finance Director Elton, Assistant City Manager Flad, Risk Manager/Budget Officer Harris, City Manager Horsley, City Attorney Rapport, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Councilmember Libby led the Pledge of Allegiance. 3. PROCLAMATION: a. VFW 100th Anniversary Vice-Mayor Kelly read the proclamation recognizing the 100th Anniversary of the Veterans of Foreign Wars of the United States. Amos Moss, Pete Sizzoni, and Henry O'Neil accepted the Proclamation on behalf of the Veterans of Foreign Wars and thanked the City for its support. 4. APPROVAL/CORRECTION OF MINUTES a. Regular Meeting of January 6, 1999 City Clerk Ulvila recommended a correction to page 4, changing "Judy Prudent" to "Judy Pruden". MIS Ashiku/Libby to approve the minutes of the Regular Meeting of January 6, 1999, with the noted correction, carried by a unanimous Voice Vote of the City Councilmembers present. 5. RIGHT TO APPEAL DECISION Vice-Mayor Kelly reviewed the appeal process. 6. CONSENT CALENDAR MIS Ashiku/Libby approving Items a-e of the Consent Calendar as follows: a. Approved Disbursements for the Month of December 1998; b. Rejected Claims for Damages Received From Margaret Bennett, KWNE Radio, and Erika Young, and Referred to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Adopted Ordinance No. 1015 Amending Division 1, Chapter 2, Article 2, Section 62 of the Ukiah City Code Regarding Councilmembers' Salaries; d. Accepted Notification of Required Maintenance Performed by ALTEC Industries to Lift On Line Truck in the Amount of $6,305.68; e. Adopted Resolution No. 99-30 Approving 1999 Qualified Contractor's List. Councilmember Baldwin inquired if the City investigates the wage rates of contractors, under the term "qualified", referring to Item 6e. City Attorney Rapport advised that the term "qualified" refers to the contractor being licensed. If a contractor works on a City contract, they would have to pay comparable wages under state law. The motion carded by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, and Vice-Mayor Kelly. NOES: None. ABSTAIN: None. ABSENT: Mayor Mastin. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward to address the Council. January 20, 1999 Page 1 8 UNFINISHED BUSINESS 8a. Adoption of Resolution Approvin~l Acquisition of Real Property, Assessor's Parcel No. 003-330-66, and Authorize City Manacjer to Execute Purchase Agreements Community Services Director DeKnoblough advised that staff requested and received authorization from Council, during a previous closed session to proceed with an appraisal of the property and negotiate a tentative agreement. That appraisal of $170,000 is completed and is consistent with the seller's asking price and a tentative agreement has been reached. The subject property, owned by Mark Ryan, is located outside the City Limits and adjacent to the southwestern boundary of the Airport, directly south of Oak Valley Nursery. The property is identified in the Airport Master Plan for acquisition to support future airport development and would be ideal for that purpose. The property includes approximately 84,500 square feet of which 7,500 square feet is a shared driveway with the Airport. The property is currently vacant, located outside the City Limits with access to State Street as well as frontage directly adjacent to the Airport taxiway. He noted that the property would need to be annexed into the City. Current zoning is determined by the County as C-1, Commercial. He has confirmed with Senior Planner Charley Stump that the Airport Master Plan places the property in the B1 zone which allows for several types of commercial development. He discussed various uses in the B1 zone for the property such as future hangar development, maintenance operations for aircraft, and other uses which expand upon the Airport's uses. He advised that Assistant City Manager Flad has discussed the potential acquisition with Mr. Abel Tapia of the Federal Aviation Administration (FAA), and although Mr. Tapia could not guarantee funding at this preliminary stage, he did indicate that property purchases of this nature are regularly funded by the FAA at the rate of 90% reimbursement. Two caveats to the FAA funding are that the acquisition must be eligible for future airport development, although no specific time line is required, and that the funding of any grant request would likely take up to two years. Because of this time line for funding, it will be necessary for the Airport to temporarily fund the acquisition through internal financing with City resources. A three year loan from the Special General Fund, Fund 110, of $175,000 to the Airport Fund is recommended. City Manager Horsley noted that there has been an explosion of interest at the Airport and a waiting list for hangar space. As the businesses at the Airport expand, there is a need for additional services to assist and serve the operations. Councilmember Ashiku reiterated the City Manager's comments concerning increased activity at the Airport. As an enterprise, the additional land would generate money for the Airport and allow the Airport to serve the existing businesses with air related services. He discussed the Airport Master Plan and stressed the need for additional hangar space as well as services to meet the needs of Airport activity. Councilmember Libby expressed her concern that Mr. Tapia would not guarantee funding to the City for acquisition of the property. Councilmember Baldwin noted that the Airport Master Plan, which was adopted by the City Council in 1996, contradicts Councilmember Ashiku and staff's observations concerning expansion. The Master Plan also does not project a significant aircraft base in the next 20 years. He questioned how the Master Plan could be so wrong. Community Services Director DeKnoblough explained there was a closure of another airport in the region and consolidation of services, such as mechanics, have relocated to the Ukiah area since the Ukiah Airport has become more of a center of aircraft activities. The Master Plan did not see a need for expansion, however, now there has been an increased interest in commercial development, such as commuter planes and charter air service. Assistant City Manager Flad discussed the deficiencies of the Airport Master Plan and noted that it is desirable to control access to the runway and to own property adjacent to the taxiway and runway. At both ends of the runway there are protection zones which control the zoning and development in that location for safety reasons. January 20, 1999 Page 2 Discussion followed concerning the Airport Master Plan, Mendocino County's land use plan, and potential business uses for the subject property. It was noted the County has adopted the City of Ukiah's Airport Master Plan. City Manager Horsley discussed Community Air's commuter flights anticipated starting date in April and the intention of an air freight business wanting to relocated to the Airport. At the present time, many planes use tie-downs instead of hangars. She discussed funding opportunities for construction of a new terminal. Commissioner Ashiku discussed loading planes at the Airport and the need for cleanup operations for some businesses. He noted a business that is interested in locating their maintenance operation and repair service at the Airport. The business also ships materials by Federal Express and it would be convenient to have their business located there. The business also has the potential of attracting additional jobs to Ukiah. He also reported that an existing business at the Airport would like to focus on rentals as well as instruction. Vice-Mayor Kelly reported speaking to Mendocino County Supervisor Richard Shoemaker about the matter. He expressed his concern since the County is working on a Redevelopment District in that area and are interested in anything the City is planning in that area. He would like to be apprised of what the City is doing. She advised that the County is very interested in the City's plans for the Airport. The area will be generating more activity in the near future and she felt it is important for the City to have control over property adjacent to the airport. Warren Sawyers, 1081 Helen Avenue, Ukiah, objected to the City purchasing the property and felt the City should pay off its debts and focus on more important things such as street repair. He discussed his experiences as a pilot and felt safety is a major concern at the Airport. Councilmember Libby recommended the City prioritize land acquisition purchases. Councilmember Ashiku addressed safety issues at the Airport. He discussed significant damage to aircraft from kids throwing rocks. Acquiring the land would prevent this type of situations from occurring and felt it is appropriate to have structures other than hangars occupying that space. He felt the funding opportunity from FAA is very encouraging and that with the City's minimum investment of $17,000, it would make the Airport a viable business. He stressed the importance of planning for the future of the Airport and acquiring more land to make the Airport economically feasible. It was his opinion that the purchase of this property is essential to the economic plan for the Airport. City Manager Horsley advised that, historically, the Airport has run in the red because there had not been enough revenue to support it. A good portion of the revenue the Airport receives is from the leasing of land, i.e. South State Street Nursery. The subject property would be available for use within a short period of time. In a discussion with Vice- Mayor Kelly, she advised that the City would loan the money to the Airport for the purchase of the land and the Airport would make payments to the General Fund. When funding from FAA is received by the Airport, they will then pay reimburse the City 90% and begin paying back the remaining $17,000. Finance Director Elton advised that the $17,000 loan would be paid back by the Enterprise Fund over a three year period. Assistant City Manager Flad discussed the potential for the Airport to generate revenues in the future. With additional hangars and their leasing revenues, an additional fixed base operator, and the start of Community Air, he was very optimistic of the Airport's future. He advised that there is a waiting list for hangar space. Many customers would like to upgrade to a full size hangar. He discussed the expansion of businesses at the Airport once they are established, citing Federal Express as a good example. Councilmember Baldwin recommended that staff provide Council with a map of the layout of the Airport area, including vacant land nearby. He discussed development in the January 20, 1999 Page 3 Ukiah Valley and recommended a postponement of the matter until Council has an opportunity to review maps of the area. Additionally, since the Airport Master Plan is wrong in many areas, he suggested a public forum be held to allow for more significant discussion of development of the Airport. City Manager Horsley advised that Assistant City Manager Flad is currently involved in developing an Action Plan for the Airport. This Action Plan will look at existing and potential development of the area in order to develop a long term planning strategy. His project will be presented to the City Council for their review in the near future upon completion. Councilmember Ashiku discussed the portion of the Airport property which will be occupied by Community Air and other development of the Airport. He explained height restrictions, particularly on the east side close to the runway. He felt that if the City helps a small business at the Airport, it will greatly benefit the Airport as well by providing skilled labor jobs to the community. He discussed settling some safety issues at the Airport. Councilmember Baldwin concurred with Councilmember Ashiku's interest in providing new jobs to the community, however, he expressed his concern with additional noise to the Airport facility. He inquired if there is a noise policy at the Airport. Efren Lopez, South Main Street, Ukiah, spoke in favor of the property purchase, noting that the purchase of the property by the City would help to generate revenue for the Airport. The purchase would also attract other aircraft related businesses to the area and would generate more jobs. MIS Ashiku/Kelly to approve Resolution No. 99-31 for acquisition of A. P. No. 003-330-66 and authorizing the City Manager to execute Agreements. Councilmember Libby expressed her concern with the City "land banking" and inquired as to the anticipated date of development of the property should the City go forward with the purchase. Assistant City Manager Flad advised that an action plan for the Airport development is currently being pursued as the City recognizes the limitation of the Airport Master Plan. In composing an Action Plan, staff will be looking at such matters as who owns property in the area of the Airport, rent generated now and potential rent generated in the future, noise abatement, land use, operational issues, pilot courtesy enforcement and encouragement, sound walls, etc. He estimated the anticipated development of the subject property would occur within 10 years. City Manager Horsley pointed out that the property owner gave the City the first option to purchase the property. The property could have been used as an extension of the trailer park or for some other use instead. Community Development Director DeKnoblough advised that airport related businesses have to be located at the airport. This creates a problem when there is a lack of space available at the Airport. Motion carried by the following roll call vote: reservations), Ashiku, and Vice-Mayor Kelly. ABSENT: Mayor Mastin. AYES: Councilmembers Libby (with NOES: Baldwin. ABSTAIN: None. City Attorney Rapport noted that there may be a need to make some minor changes to the agreement, which Council reviewed in their packet. He requested Council direction to authorize the City Manager and City Attorney to make such changes without returning to Council for approval. Consensus of Council directed the City Manager and City Attorney to make the necessary changes to the final agreement and that the agreement should be brought back to Council for approval only if substantial changes are made to the agreement. January 20, 1999 Page 4 8b. Discussion and Possible Action Concerning Willits City Council Action on Foreclosure of North Coast Railroad Authority Loan and Effect on Ukiah Depot Site The matter was discussed later in the meeting in Closed Session. 9. NEW BUSINESS 9a. Receive and File the Audited Financial ~tatements for Fiscal Year 1997/9_R Finance Director Elton introduced Steve Herr, representing the CPA firm of Davis Hammon & Co., who conducted the audit of the City of Ukiah's financial statements for the year ended June 30, 1998. Davis Hammon & Co. has audited the City's financial statements for a number of years. He advised that Independent Auditor's Report is unqualified, which means the overall financial statements present fairly, in all material respects, the financial position of the City as of June 30, 1998. Steve Herr, representing the CPA firm of Davis Hammon & Co., advised that his firm reports on the City's internal controls. In the 1996-97 audit, there were a couple of findings, however, since that time, City staff has taken steps to correct the items, and the matters are now resolved. He reported that the firm conducts random samples of transactions, review lease agreements, make sure payments are charged to the proper funds, and review a gamut of activities to make sure the numbers reported are correct. Finance Director Elton gave a slide presentation of the Audit Report and discussed the various fund classifications. He reported that, as a whole, the City is fiscally sound. The audited financial statements present a summary level for the General Fund, Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, Internal Service Funds, and Trust and Agency Funds as well as a listing of the totals for the General Fixed Assets and General Long-term Debt Account Groups. The "Notes to Financial Statements" provide important additional information about the financial condition of the City and the manner in which business is conducted. The Enterprise Fund Combining Statements provide asset, liability, equity, revenue, expense and cash flow information for each of the nine enterprises in the City: Electric, Street Lighting, Water, Disposal Site, Sewer, Airport, Parking District, Golf, and Conference Center. The Compliance and Internal Control section is the area where the auditors report on compliance in accordance with government auditing standards, compliance with general federal requirements, and on internal control structure. He reported that the Ukiah Redevelopment Agency financial records are included in the statements labeled "City of Ukiah' as well as presented separately at the end of the audit report. He also discussed the Schedule of Combining Funds which was included in his staff report to Council. He discussed revenues compared to expenditures as well as deficiencies of revenue sources for the year 1997-98. He reported that the General Fund had excess funds of $279,000 which is better than expected. During the budget process, he will present fund balances to Council and they may look somewhat different than the audited fund balances since they will represent unrestricted amounts. City Manager Horsley advised that staff has worked hard over the years to resolve financial accounting issues. Finance Director Elton advised that any entity that the City Council controls, such as the Ukiah Redevelopment Agency, will be included in the Financial Reports of the City. Also included in the reports are Special Revenue Fund and Debt Service. He noted the Independent Auditor's Report on page 36 which refers to the audit of financial statements of the Ukiah Redevelopment Agency, and stated it is also an unqualified opinion. Steve Herr advised that the Ukiah Redevelopment Agency complied with laws, regulations and administrative requirements of the State of California. He discussed the time limit for establishing Agency debt and noted that Section 33333.6 of the Health and Safety Code of the State of California requires redevelopment project area plans set a time limit on establishing loans, advances, and indebtedness not to exceed 20 years from the adoption of the plan, or January 1, 2004, whichever is later. Existing project area plans had until December 31, 1994 to comply with this requirement. The Ukiah Redevelopment Agency's current project area plan sets a 40 year limit, and is not in compliance with this section. January 20, 1999 Page 5 City Attorney Rapport advised that the plan has been changed to "20 years" since the last audit was completed. Consensus of Council was to receive and file the City of Ukiah Financial Statements for the year ended June 30, 1998, audited by Davis Hammon & Company, CPA's. 9b. Approval of Mid Year Budcjet Amendment Risk Manager/Budget Officer Harris advised that since the adoption of the 1998/99 budget, several items have come about necessitating a mid year budget amendment. He reviewed the 1998/99 Mid Year Budget Amendment-Summary of Transactions which was included in Council's packet. City Manager Horsley explained that this is the time of year when errors are found in the budget and we bring them to the City Council for correction. She discussed the MOU changes and the transfer of $50,000 to Fund 100 for the Assistant City Manager position. She noted that the money was already budgeted and now needs to be transferred. Additionally, at the time of the budget hearings, a computer was requested for the Assistant City Manager and the $4,841 includes the computer and other supplies associated with it. Vice-Mayor Kelly discussed the need for obtaining a more detailed explanation of items during the budget process. She inquired about the budget transfers from Fund 250 reserves in the amounts of $50,000 and $100,000. Risk Manager/Budget Officer Harris explained that the two transfers are for the Assistant City Manager and a portion of the MOU's. City Manager Horsley noted that, at the time of the budget hearings, the City Council approved the Assistant City Manager position and a certain amount of money be set aside for that position. Councilmember Libby inquired of the computer, software, and printer designated for the Planning Department. Risk Manager/Budget Officer Harris explained that the Planning Department currently has the oldest computers in the computer bank. The City's MIS Coordinator has indicated that the hardware for these computers is failing and a request has been made for new computers for the Planning Director, Senior Planner, and Associate Planner positions. Finance Director Elton advised that, with the approach of year 2000, it is prudent to purchase the computers at this time to verify that they are Y2K compliant. It was noted that some companies are not purchasing computers for a full year because of the Y2K compliancy. Councilmember Libby requested the progress of Y2K compliancy be placed on the next agenda. City Manager Horsley advised that staff intends to present a status report on this matter to Council in February. Vice-Mayor Kelly inquired about the utility customer system, noting that she has observed the slowness of the computers to provide customer information. Finance Director Elton explained that staff has been working with First Point to improve the existing system and continues in the process of tying it into electric deregulation. He advised that the cashiers station is a one person operation and at times customers may get irritated when they have to wait their turn. He noted that the response times on the cashier's computer could improve. Due to the complexity of the system, it would be very costly to replace the system at this time. City Manager Horsley explained that Ukiah is a full service City with all utilities and that some of the less expensive computer programs would not be able to handle the large January 20, 1999 Page 6 number of interactive transactions. She discussed booking fees for the Police Department and noted that a consultant did an assessment of the costs and arrived at $185 per booking, which is the highest in the state. An agreement was made of $100 per booking, which is an average of the total bookings per year. She has been advised of the process if the City wishes to change the booking fees in the future. Basically, the County could charge the City as much as $185, but it currently charges only $100. The County does not release individuals who would jeopardize public safety. She reported that last year there were 642 bookings. MIS Libby/Baldwin approving Mid-Year Amendment to the 1998/99 Budget as specified in "1998/99 Mid-Year Budget Amendment-Summary of Transactions", carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, and Vice-Mayor Kelly. NOES: None. ABSTAIN: None. ABSENT: Mayor Mastin. 9c. Approval of Settlement Agreement in Citizens for Responsive Government v City of Ukiah et al The matter was discussed in Closed Session later in the meeting. 10. CITY COUNCIL REPORTS Councilmember Libby reported attending the Y2K meeting at City Hall and found it very informative. Both her and her husband toured the Police Department with Chief Williams and she encouraged other Councilmembers to take the tour. Today she attended the grand opening and ribbon cutting for the Porter Street Barbeque on Perkins Street. Councilmember Baldwin reported attending the Inland Water and Power Commission meeting but no action was taken. Interesting news has been revealed, that an attorney filed suit on behalf of the Friends of the Eel to completely decommission the Potter Valley Power Plant. He discussed new changes in the County with the addition of the Mendocino County Water Agency. The new Director's goal will be to find new sources of water for this area. He advised that he will be attending the Russian River Watershed Council meeting in CIoverdale this week. Councilmember Ashiku thanked Council for their support in acquiring the property near the Airport and felt that the development of the property will be an asset to the Airport and enhance jobs in the area. He has been in contact with a business that is considering locating at the Airport. They provide repair service for aircraft and have sales all over the world. He noted that it is a very clean industry. He will be happy to assist in a tour of the Airport facility for interested Councilmembers. He has been working with Assistant City Manager Flad regarding obtaining fill for the Langley property. He met with Public Utilities Director Barnes regarding the Sewer Treatment Plant. He reported having the opportunity to work with the developers of the St. Mary's Church on Perkins Street and it was satisfying to facilitate an agreement with them. Councilmember Kelly was also involved in the project and he is very proud of the energy they put into the project. Vice-Mayor Kelly advised that both she and Councilmember Ashiku received the blessing of the City Council regarding facilitating support for alternative uses of the St. Mary's Church. She is very pleased with the performance of City Attorney Rapport and noted that, without the City's participation, the project may not have occurred. She advised that Mary Ann Villwock, Board member of S.P.A.C.E., who submitted the offer to purchase St. Mary's from Mr. Shapiro, has expressed her delight in working with city staff, namely Senior Planner Charley Stump, Associate Planner Dave Lohse, Building Inspector Carl Tuliback, and Fire Marshal Bruce Evans. Ms. Villwock has indicated they have verbal approval from the Bishop for S.P.A.C.E. to use the building and they expect a structural engineer to examine the church this week. The structural engineer has a history of working with unreinforced masonry projects. She noted that she has information on the California Endowment, which she will give to Assistant City Manager Flad. She reported meeting with Susan Keegan regarding the Mentoring Alliance. Ms. Keegan will be coming before the City Council in February to January 20, 1999 Page 7 request support from the City Council. She advised that MCOG received notice from Mary Hyatt that she will not be renewing her contract as Executive Secretary, as of June 30, 1999. Councilmember Ashiku advised that at the January 4, 1999 LAFCO meeting, Ms. Hyatt indicated otherwise. Discussion followed regarding the request for proposal going out for that position. He advised that he will be attending a Northern California Power Association (NCPA) meeting later in the month. 11. CITY MANAGER/DIRECTOR REPORTS City Manager Horsley advised that over the years, the Sonoma County Water Agency has provided information and recommendations to the Inland Water and Power Agency. It has been felt their advice benefits the residents in the $onoma County area and that Mendocino County's interests have been lacking. A meeting of the Inland Water and Power Agency is scheduled for January 25. She advised that she plans to attend and give support to the position that Mendocino County's interests need more consideration. She reported receiving notification regarding the Kuns case. A memo was sent to the City's Utility Department, which elicited a wide range of emotions and relief. It is a relief to have the case put to rest after a three year period. She attended the Main Street Program's reception and was pleased with the spirit and anticipated cooperation of working together. The Main Street Program is please at how things are progressing. 8:47p.m. - Adjourned to Ukiah Redevelopment Agency 8:53 p.m.- Reconvened. 12. CLOSED SESSION 8:53 p.m. - The City Council Adjourned to Closed Session. 9:42 p.m. - The City Council Reconvened. a. C.C. §54956.8 - Conference with Real Property Negotiator Property: A.P. No. 002-232-01 and 002-282-01 Owner: North Coast Railroad Authority (NCRA) Negotiator: Candace Horsley Under Negotiation: Price and Terms of Payment No action taken. 12b..C.C. §54956.9 - Conference with Legal Council Citizens for Responsive Government v. City of Ukiah, Mendocino Superior Court #79997 MIS AshikulBaldwin to (1) Authorize payment of $1,250 to petitioners in Citizens for Responsive Government v. City of Ukiah, Superior Court No. 79997, as attorneys fees and cost; and (2) Extend the term of the demolition permit issued for the demolition of St. Mary's Church by 42 days, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, and Vice-Mayor Kelly. NOES: None. ABSTAIN: None. ABSENT: Mayor Mastin. 8b. Discussion and Possible Action Concerning Willits City Council Action on Foreclosure of North Coast Railroad Authority Loan and Effect on Ukiah Depot Site No action taken. 13. ADJOURNMENT There being no further business the meeting was adjourned at 9:43 p.m. Marie Ulvila, City Clerk January 20, 1999 Page 8