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HomeMy WebLinkAboutMin 03-17-99MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, March 17, 1999 The Ukiah City Council met at a Regular Meeting on March 17, 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 Council- members were present: Councilmembers Libby, Baldwin, Ashiku, Kelly, and 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, Public Works Director Kennedy, City Attorney Rapport, Planning Director Sawyer, Deputy Public Works Director Seanor, Police Chief Williams, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Councilmember Ashiku led the Pledge of Allegiance. 3a. PRESENTATION: City of Ukiah Employees of the Year 1998-99 Award City Manager Horsley announced that Dave Burnham and Chris Dewey have been selected by their fellow employees to receive the 1998-1999 City of Ukiah Employees of the Year Awards. She introduced Dave Bumham, Senior Equipment Mechanic in the Garage, who has been with the City of Ukiah since September 4, 1979. He was selected as an Employee of the Year based upon his dedication and his expertise in maintaining the Public Works equipment and taking a pro-active approach to his job. He is a very reliable employee who dedicates himself to continuously providing equipment in good working condition. He has a knack for finding and fixing problems before a breakdown occurs and is well respected for his knowledge and expertise. It is well known that Dave played a huge role in the transition period of the City Garage. During that time Dave was literally a one-man repair and maintenance shop for all Public Works equipment. Willing to work any hours necessary, Dave makes sure that the City's essential equipment is ready when needed. City Manager Horsley introduced Sergeant Chris Dewey of the Ukiah Police Department. Chris Dewey was nominated for Employee of the Year for his dedication, leadership abilities, and the positive impact he has had throughout the City. Chris was hired as a Police Officer on October 1, 1990, and promoted to his current rank of Sergeant on November 19, 1995. During this past year, Chris was called on to manage the installation of the new public safety dispatch center and department records management system. To help out with funding, Chris received state and federal grants for the project. The renovation of the dispatch center and change to a new computer system was, and is, a major project which has consumed most of Chris' time. The tremendous benefits of this system will be enjoyed by the entire Police Department and the citizens for many years to come. In addition to this project, Chris has continued his excellence in supervising the public safety dispatchers, SWAT, department scheduling for patrol and dispatch, firearms, and driving instructor and other activities. Additionally, Chris was praised by other City Departments across the board for his dedication, willingness to work together, and his professionalism. He continually demonstrates the highest level of enthusiasm, willingness to accept responsibility and sees things through to completion. City Manager Horsley advised that photos of Dave Burnham and Chris Dewey, along with their plaques of recognition, have been placed in the foyer. The Mayor and City Councilmembers congratulated each employee with a handshake. 3b. PROCLAMATION: Ukiah Mentor Week Mayor Mastin announced that this item was placed on the agenda in error and will be rescheduled for the April 7, 1999 City Council meeting. March 17, 1999 Page 1 of 15 4a. APPROVAL/CORRECTION OF MINUTES - Regular Meeting of March 3, 1999 Councilmember Libby referred to the motion on page 4 and requested the motion clarify that Council approved an addition of $833 to the Planning Commission training budget for the remaining of this Fiscal Year. During the Fiscal Year 1999/2000 budget sessions, Council will consider increasing the Planning Commission training budget. MIS LibbylAshiku to approve the minutes of the Regular Meeting of March 3, 1999, with correction to the Motion on page 4 to read: "MIS Kelly/Baldwin approving an additional $833 to the Planning Commission budget for the remaining of this Fiscal Year for training purposes.", carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 4b. APPROVAL/CORRECTION OF MINUTES - Special Meeting of March 10, 1999 MIS AshikulKelly to approve the minutes of the Special Meeting of March 10, 1999 as presented, carried by the following roll call vote: AYES: Councilmembers Libby, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN' Councilmember Baldwin. ABSENT: None. S. RIGHT TO APPEAL DECISION Mayor Mastin reviewed the appeal process. 6. CONSENT CALENDAR It was noted that Item "a", disbursements, are for the month of "February 1999". MIS ASHIKUlKelly to approve Items a-g of the Consent Calendar as follows: a. Approved Disbursements For The Month of February 1999; b. Rejected Claims for Damages Received From Carrie Redding and Alice W0odard, and Referred to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Accepted Notification to Council Regarding the Purchase of a Chlorinator From Hopkins Technical Products for the Sum of $7,802.29; d. Approved Budget Amendment for Additional Planning Commission Training. The motion carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN' None. ABSENT: None. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Judy Pruden, 304 South Hortense, advised that on February 1, 1999, she prepared a technical assistance grant to the National Trust of Historical Preservation for the new S.P.A.C.E. building. Today they received notification that the grant has been approved. The funds will go toward paying an architect to prepare a Master Plan and rehabilitation of the S.P.A.C.E. structure, formerly occupied by St. Mary's Church. 8. UNFINISHED BUSINESS a. Discussion and Possible Action Regarding Landfill Hours of Operations Available to the New ~ervice Area Haulers (~olid Wastes of Willits, Inc., and Fort Bra.g~ Disposal) Public Works Director Kennedy advised that requests from representatives of Solid Wastes of Willits, Inc. and Fort Bragg Disposal for modifications to the Landfill hours are submitted for Council's consideration. The requested modifications would permit their waste hauling vehicles access to the Landfill at the same morning hours currently offered to the franchised waste haulers who serve the old service area. The franchised waste haulers who serve the Landfill's new service area are prohibited entry into the Landfill until 8:00 a.m., Tuesday through Friday, and on days following those holidays on which the Landfill is closed. Franchised waste haulers who serve the Landfill's old service area are permitted access into the Landfill beginning at 7:00 a.m., Tuesday through Friday and at 6:00 a.m. on days following those holidays which are observed at the Landfill. On Mondays, the Landfill is opened to commercial waste haulers beginning at 8:00 a.m. without restrictions on any service area. He reviewed the Environmental Impact Report (EIR) prepared for the Solid Waste Facilities Permit, noting that the City hired Environmental Science Associates (ESA) to reanalyze the noise impacts resulting from a change in truck mix, as well as a 7:00 a.m. March 17, 1999 Page 2 of 15 gate opening for the new service area commercial waste haulers. On October 8, 1998, a Supplemental Environmental Impact Report (SEIR) addressing changes in the daily maximum waste intake, waste truck types, Landfill hours, and an alternative access road to the Landfill was presented to the City Council for consideration. The SEIR concluded that there were no significant environmental effects anticipated as a result of the proposed permit modifications. Because it was believed that the change in the permitted morning hours for the new commercial waste haulers was not a contentious issue, the representatives for the waste haulers were not encouraged to attend the public hearing set for the adoption of the SEIR. Although the City Council approved the SEIR and adopted the necessary findings, they elected not to change the morning hours available to the commercial waste haulers serving the new service area. He reported that noise levels are regulated in the project area through implementation of the Noise Element of the Mendocino County General Plan. He advised that for residential land uses, the normally acceptable noise level is in the range of 50 to 60 Ldn, and the conditionally acceptable range is 55 to 70 Ldn. For lodging such as Vichy Springs Resort, the normally acceptable noise level is up to 65 Ldn and the conditionally acceptable range is 60 to 70 Ldn. Noise measurements were taken of the operations at the Landfill to determine the noise effects of Landfill equipment on a peak day following a holiday. Findings were made in the EIR, based on future traffic noise levels, that residents not would be exposed to over 60 dBA in the project area. He advised that since 1993 the Landfill hours available to the commercial waste haulers for early morning disposal have been modified and reduced in consideration of the neighbors to the landfill. The recent removal of the cattle guard in front of the landfill entrance by City staff has further mitigated a continual noise nuisance created by Landfill traffic. He discussed the current rates at the landfill for the old service area haulers, noting that, because others have decided to participate in the landfill, the City is able to offer its residents a lower rate. He expressed his appreciation to Solid Wastes of Willits, Fort Bragg disposal, and to the County of Mendocino for their continued patronage at the landfill. Their use of the City's landfill has assisted the City in meeting its present and future financial commitments relating to the landfill operation and its eventual closure. Judy Pruden, 304 Hortense, read a letter from Vichy Springs Resort owners, Gilbert and Marjorie Ashoff, which requested the City of Ukiah uphold their original decision not to expand the hours of operation at the Landfill. They also addressed the EIR noise study and felt the study is defective. She is very supportive of Vichy Springs Resort's concern regarding noise from the trucks, noting that it is very quiet at Vichy Springs Resort and that the resort is an asset to the community. It was her opinion that the haulers have not demonstrated any consideration for the Resort. She encourage the closing of the Landfill and start up of the transfer station. It was her opinion that the City should be respectful of a business that aids and enhances the community. Jerry Ward, owner of Solid Waste of Willits, Inc., advised that his company has been hauling refuse to the Landfill since 1971 and that the hours for haulers to enter the landfill has been an on-going issue. He recommended allowing four additional trucks in the summer months (May-November) and only two trucks in the winter months. Also, the after holiday dumping is very critical to his business because they collect garbage on holidays. He proposed a compromise of allowing them to bring five (5) trucks to the landfill on those days, including eight (8) holidays per year and felt this is not a significant amount. He noted that this proposal would not apply to Fort Bragg Disposal because their transporters are currently going to the Portrero Landfill or Redwood Landfill, out of county. Fort Bragg is only concerned with roll off trucks and that they be allowed two (2) trucks in summer and one truck in the winter months. He expressed their need to get an earlier start so that they can pick up boxes on a summer day. He discussed the time frame for closure of the landfill and the construction of a March 17, 1999 Page 3 of 15 transfer station. He would like to see the transfer station opened quickly, however, in speaking with some members of the Willits City Council, it seems that their intention is to work with the City of Ukiah and continue to bring Willits garbage to the Ukiah Landfill until November 2000 thereby assisting with the post closure costs for the Ukiah Landfill. However, if the early dumping hours continue to be a problem for his company, they may have the ability to build the transfer station a year earlier and discontinue dumping at the Ukiah Landfill a year earlier. This option would extend the life of the Ukiah Landfill because it would not have the additional tonnage coming into the landfill during the last year of operation. He would like to work out the problem with the City and the landfill neighbors and is willing to compromise to allow them to have a few more trucks enter the landfill at 7:00 a.m. in order to take in the needs of all concerned: the City of Willits, Vichy Springs Resort, and the customers served by Solid Waste of Willits and Fort Bragg Disposal. Sherry Robison, Fort Bragg Disposal, reiterated the compromise proposed by Mr. Ward. The only refuse they have going to the Landfill is debris box refuse. Since November 1997, all of their compacted refuse has been going to Redwood Landfill. They would be very happy to have four roll-off trucks into the Landfill during the summer months. She noted that it is very busy during the summer and quiet during the winter months for their operation. She felt that if the combined trucks from Willits and Fort Bragg were four (4( during the summer and two (2) during the winter months it would not greatly impact the Vichy Springs Resort. They are willing to compromise with a minimum amount of trucks. Discussion followed concerning the measurement of noise level and the response to comments during the EIR process with regard to the morning hours for haulers to enter the landfill. Concern was expressed by several Councilmembers that the matter of hauler hours has been revisited by the City on a number of occasions. Public Works Director Kennedy reminded Council that the matter is agendized due to the request of Solid Waste of Willits and Fort Bragg Disposal, that the hauler hours be reconsidered since they did not attend the Public Hearing in October 1998 when Council certified and adopted the EIR, and that Mr. Ward wanted the opportunity to make his request known. Prior to the preparation of the Final EIR, and the arbitrary decision to have the haulers enter the landfill at 8:00 a.m., the haulers were not asked if the hours would impact their operations, nor were they consulted when it was decided that there would be four (4) transfer pod trucks. Upon inquiry by Councilmember Ashiku, Director Kennedy advised that there are approximately 50 homes in the Vichy Springs Subdivision. He reported that at the time the Landfill began in 1955, the subdivision was nonexistent. Vichy Springs Resort was purchased in 1979 and they have done a beautiful job of restoring the resort. He reported that Mr. Ashoff was the applicant who subdivided the land that was later developed into a housing subdivision. A notice was delivered to each resident in the vicinity prior to this meeting and only three comments were received by Staff. He discussed data collected in 1997 regarding the amount of trucks entering the landfill as well as their tonnage. Sherry Robison advised that they have garbage at their site 24 hours per day because of the way in which they conduct their operation. Since there is no landfill in Fort Bragg, they transport everything out of the area. They have a pod system which is taken to Redwood Landfill. She discussed Fort Bragg Disposal's operation and noted that it would benefit them to arrive at the Ukiah Landfill early in the morning so that debris boxes being delivered early to the landfill can return to Fort Bragg earlier and used again during the day. This would allow them to sell more boxes per day. She noted that they do not haul garbage to the Ukiah Landfill, however, they do haul debris from such things as demolition projects. Discussion followed concerning how the hours of operation have changed over the years. Also discussed was the amount of tonnage entering the landfill and it was noted by Public Works Director Kennedy that Solid Waste of Willits is bringing in the same amount, whereas there has been a decrease for Fort Bragg Disposal. March 17, 1999 Page 4 of 15 City Attorney Rapport advised that the Final EIR consists of the original Draft EIR, all comments that were submitted, as well as the Response to Comments. There may not have been any discussion during the hearing on the EIR regarding the hauler hours. That topic also did not receive much discussion in the EIR. He discussed how the hours were included by the ESA's consultant during the Response from Comments, and it was automatically included into the Mitigation Monitoring Plan. In fact, during litigation of the case, there was discussion as to where the 8:00 a.m. restriction came from, and as they reviewed the EIR process, it was noted that there was no significant impact and, in fact, the hours came from the consultant who included it in the document. MIS Ashiku/Libby to approve the modification to the operational hours as proposed by Solid Waste of Willits, Inc. and Fort Bragg Disposal, to four (4) trucks in the summer, two (2) trucks in the winter, and five (5) trucks on the holidays, combined for the two haulers. Discussion followed concerning the motion, with each Councilmember giving their views of the hauler hours, noise factor, and the time frame prior to closure of the Landfill. Motion failed by the following roll call vote: AYES: Councilmembers Libby and Ashiku. NOES: Councilmembers Baldwin, Kelly, and Mayor Mastin. ABSTAIN: None. ABSENT: None. Changing the Seauence of Agenda Items City Manager Horsley requested that Items 9e and 9f be heard after Item 8b, due to audience attendance. Consensus of Council approved of the Agenda change. 8b. Discussion and Possible Action Regarding Amending City of Ukiah Purchasing Policy With Local Preference City Manager Horsley discussed the extensive analysis conducted by Purchasing Supervisor Kennedy and Risk Manager/Budget Officer Harris for Council's consideration of amending the City's Purchasing Policy to provide a 5% preference for local vendors. Currently the City Code prescribes that a purchase be awarded to the lowest responsible bidder, except in cases of personal professional contracts which have their own listed criteria. She reported that an article in the local newspaper indicated that Staff did not support a preference, however, she advised that staff has not made a recommendation regarding the proposal. Risk Manger/Budget Officer Harris advised that staff has completed a comprehensive analysis of the purchasing activities for 1998, to evaluate the possible results of implementing a 5% local preference. Of the 961 purchase orders issued in the last calendar year, 492, totaling $1,477,113, were identified as "bids" which would present a "competitive" situation. Not included in this figure are Public Works projects over $25,000 which must be awarded to the "lowest responsible bidder" per state statute, and personal service contracts which are not awarded on cost alone. He discussed the summary of the study's results and the data sheets included in the Staff Report. The term "local vendor" referred to businesses in either the City of Ukiah or County of Mendocino. He identified a significant issue whereby 211 bids did not receive any local bidder. He pointed out that many times such items as chemicals do not have a local supplier to bid on such items, thus precluding the opportunity for a local vendor to participate in that process. He reported that implementation of a local preference would require additional staff time to analyze each bid and the amount of cost is dependent upon the number of bid requests in which local vendors do not win the bid outright. Staff costs for 1998 would have been approximately $300. In addition to the several City and County ordinances provided by Councilmember Libby, Staff contacted 17 municipalities to secure other applicable code provisions related to local preference in purchasing practices. Councilmember Kelly thanked staff for their preparation of the report. She inquired if Staff found a larger percentage of local bidders participating in the bid process within cities that have a local preference policy. Risk Manager/Budget Officer Harris advised that staff did not have the opportunity to discuss the implications of bidding practices with cities that have a local preference. March 17, 1999 Page 5 of 15 Councilmember Libby thanked Nora Kennedy and Mike Harris for their efforts in preparing the report. Councilmember Baldwin inquired about wording in other cities' ordinances with regard to a business having to be locally owned to qualify for the local preference. Risk Manager/Budget Officer Harris reported that the definitions were somewhat different, although most indicated that the bidder had to have a city business license, and all but one indicated they needed to have a city residence within the city limits. The definition was tied into a business license. City Attomey Rapport advised that it is his opinion that a preference for local businesses would not violate the Commerce, the Privileges and Immunities, or the Equal Protection Clauses of the United States Constitution, if the City makes adequate findings when it adopts the ordinance establishing the preference. He discussed challenges to these clauses. The only litigation he found was referenced in San Francisco and he briefly discussed that case and its findings. He recommended enacting findings and identifying ways in which "in-City" businesses are at a disadvantage to "out-of-City" businesses, and if the ordinance is based on businesses within the County, findings would also need to be made as to why Mendocino County businesses are at a disadvantage, and how this preference will help to equalize that disadvantage. Discussion followed concerning whether the preference should be limited to local, City- wide businesses or include all county businesses. It was noted by Councilmember Libby that she is recommending a County-wide preference for the City of Ukiah. Staff described the City's bidding process, establishment of the Qualified Bidders List, and the list of potential bidders compiled by Purchasing Supervisor Kennedy. It was noted that some bids require a legal notice. Should a preference be adopted, it would require additional time for the Purchasing Supervisor to evaluate the bids. City Manager Horsley advised that should Council decide to proceed with such an ordinance, that direction be provided to staff. Some advantages of a preference ordinance is to promote local business activity, increase jobs, increase sales tax revenue, thus benefiting the economic base of the City and continued health of local vendors. This would also help to maintain, if not strengthen, the local labor force, thereby preserving and fostering the City's economic and social vitality. Possible disadvantages is that City residents will be paying a higher price for goods and services for those bid awards which are selected under the Preference Policy. A local preference might also discourage bidding by other vendors in surrounding counties who will not be eligible for the preference percentage. She stressed the importance of defining "local business" in the ordinance. She discussed jurisdictional boundaries of vendors and a process whereby vendors would register with the City. Upon meeting the specified criteria, they would then be added to the bidders list, which would continue to be updated. She discussed possible preference percentages and recommended a cap be set on the preference, noting that a cap would only affect the larger bids. Councilmember Libby advised that, based on the data produced, the City needs to reach local businesses and attempt to build bridges with those not participating in the City's bidding process. She stressed the importance of keeping more money spent through the bidding process at home, as this will strengthen our local economy and will ease the needs to increase fees and rates in order to finance government. Research showed approximately 60% of bids do not have a local bidder, due in part to specialized products. Out of 492 bids, 211 (43%) were identified as not being a qualified bidder. She questioned why more local businesses do not participate in the City's bidding process. It was her opinion that a local preference would reverse this trend. It was her conclusion that a preference would increase business enthusiasm and participation which would result in more taxpayer money being kept in the local area. She advsied that she appreciates and supports efforts of County businesses to locate within the City Limits, however, she felt that an Ordinance for businesses just in the City Limits may send the wrong message. The idea is to keep money at home. Because of our geographical area, and every area is different, a City Limit restriction would exclude many local vendors who are within a 3-mile radius of our City. If a bid did go to Willits or Fort Bragg, it would still be in keeping with March 17, 1999 Page 6 of 15 the spirit of keeping the money home. We are a County seat and many people who live in outlying County areas come to Ukiah to shop and she would rather see the money come to Ukiah rather than going out of the County. It would help to keep relations in the County positive. She would hate to see a "Willits-only" preference or a "Fort Bragg-only" prefrence as a response or reaction to a "Ukiah-only" preference ordinance. She was supportive of a preference to include businesses within Mendocino County and encouraged the Board of Supervisors to enact a similar ordinance. Further discussion followed concerning jurisdictional boundaries of the businesses, advantages and disadvantages of a preference ordinance, whether the preference should include those businesses located within the City limits or be County-wide, sales tax revenues, and designating a percentage and cap on the preference. Councilmember Ashiku recommended the matter be referred to staff to produce an ordinance with a 1% preference and $1,000 cap on services. Discussion followed concerning the analysis presented and direction to provide for an ordinance for Council's consideration. Eric Larson, 123 Clara Avenue, advised that he is a local business owner and would qualify to be a local preference bidder. Upon reading the staff report, he did not find anything that would not preclude him from contacting outside, non-local bidders and offering to bid their services through his business as a legitimate business in the City. He expressed his concern in defining a "local bidder", impacts on local City bidders as well as County bidders, and recommended Council consider a two-tier percentage rate. He discussed an alternative means by which local bidders would be allowed to match the Iow bid and recommended Council approach the matter cautiously. John McGowan, Ukiah, was supportive of the preference concept and noted the legal difficulty of getting qualified businesses to bid on projects. He noted one problem surrounds bonding requirements and may deprive contractors from submitting bids. He noted that a number of the contracts may be for specialty products that can't be obtained locally. He felt that residents in the County enjoy lower rentals and property taxes than those in the City limits, and that some local businesses do not enjoy the scale of buying power as other outside businesses. Don Albright, Ukiah, thanked Council for bringing forward the preference issue. He advised that he is an employee of the Savings Bank of Mendocino County (Savings Bank) and discussed the Request For Proposal (RFP) that the City submitted in 1994 for a banking relationship. He discussed a City-appointed Committee's selection process for the project. It was his opinion that the Committee needed to consider more than just the lowest bid for the proposal. He discussed the 1997 Public Disclosure Report for the Savings Bank and noted the percentage of dollars that are reinvested in the community. He discussed making loans to local businesses with gross national revenue of under $100,000. He requested the City consider an expanded relationship with the banking community. He noted that they were advised that the matter would be revisited each year, but it hasn't. Mayor Mastin noted that at that time, the City was under pressure regarding some investment decisions made prior to that time, and electronic banking was a major factor that the City of Ukiah was looking to obtain. At that time the Savings Bank of Mendocino did not have that capability and the contract was awarded to WestAmerica Bank. Councilmember Baldwin expressed concern with those businesses having a Post Office box for a mailing address. He was not supportive of a local preference for large "big box" stores such as Staples and Wal-Mart. He was of the opinion that the matter of a preference should also include reference to a "living wage." Businesses that are locally owned, pay a living wage, and are environmentally friendly should be given a higher preference percentage. Councilmember Libby noted that employees of "big box" stores, such as Wal-Mart, spend their salaries in Ukiah. The City currently has an Open Purchase Order with Wal-Mart, March 17, 1999 Page 7 of 15 however, Wal-Mart usually does not bid on items. She preferred addressing the "living wage" issue separately. MIS Libby/Kelly to approve a 5% preference not to exceed $5,000, to qualified local vendors in Mendocino County that have a Ukiah business license, on all purchasing contracts that require a Purchase Order or a competitive bid, and direct staff to prepare such an Ordinance for their consideration. Discussion followed concerning patronizing "big box" stores on bids and it was noted that they employ many local residents and should be treated equally. Taking the "living wage" issue separately was also discussed. The percentage rate of the preference was considered and the preferences of other counties was also noted. In discussion clarifying the proposed motion, Councilmember Libby explained that the proposed ordinance would include a 5% preference, not to exceed $5,000, and the bid would need to be over $100,000 in order to reach the $5,000 limit to qualified local vendors in Mendocino County on all competitive bids, not to include Public Works projects. She was of the opinion that a 1% preference would be in words only, and would amount to only one penny on a dollar. Mayor Mastin was in agreement with Councilmember Libby's observations and noted that he did not understand why Council would be discussing a 1% preference ordinance for 45 minutes. City Clerk Ulvila read the motion. City Attomey Rapport requested clarification that the motion would apply to all City purchases, excluding Public Works Department contracts above $25,000 and personal services contracts. City Manager Horsley advised that the preference would not apply to open Purchase Orders, professional service contracts, and some grants. Motion carried by the following roll call vote: AYES: Councilmembers Libby, Ashiku, Kelly, and Mayor Mastin. NOES: Councilmember Baldwin. ABSTAIN: None. ABSENT: None. Al Beltrami, Executive Director of the Mendocino County Employers Council, clarified that property taxes are the same within the City and the County. He reported on a movement for a "living wage" and requested that should Council pursue the matter, the County be notified. 9:12 p.m. - Recessed 9:20 p.m. - Reconvened. 9. NEW BUSINE~;,~ 9f. Discussion and Approval of Minor Improvements on City Property Between Oak and Bush ~treets City Manager Horsley advised that the City owns a small parcel of open space property fronting Oak Street that connects to Bush Street via a pathway used by residents, as well as school children from Pomolita and Frank Zeek Schools. In September 1997, the City granted an Encroachment Permit to Mr. Ruelle, who's property is adjacent to the City property, to plant oleanders along the southern side of the fence line to protect his fence from continual graffiti and vandalism. Some of the oleanders were vandalized, and the City was also contacted by neighbors about the future potential size of the oleanders as the western portion of the path is narrow and they were concerned about safety and ease of walking once the shrubs had reached maturity. City staff and Vice Mayor Kelly met with the neighbors several times to discuss their concerns and potential solutions. Based on discussions with all parties individually, staff prepared a list of possible City improvements to the property to be phased over time. 1. Relocate the current pathway to follow the creek bank from Bush Street to Oak Street. March 17, 1999 Page 8 of 15 1. Relocate the current pathway to follow the creek bank from Bush Street to Oak Street. 2. Plan appropriate shrubbery along the western portion of the fence line that would not encroach on the path line of site or right-of-way at maturity. The shrubbery would be designed to grow along the fence. Chicken wire will be placed over the young plants to assist in getting them established and as a protection against vandalism. 3. Install bank stabilization along the creek bank to protect the pathway and bank's integrity. The City Engineer's Department has estimated the cost of $38,340.00. 4. Possibly install lighting at the Bush Street entrance to provide for safety which would not encroach upon the neighbors' privacy. 5. Place some sort of blockade at the entrance of Oak Street near the Ruelles' fence line to encourage pedestrians and bicyclists to use the creek side pathway. She discussed the installation of a split-rail fence. She noted that neighbors on the east side of Oak Street have expressed concern that some people continue to walk across Oak Street and through their property to State Street. They have suggested the path be closed on Oak Street to discourage pedestrians from continuing in an easterly direction. Staff will continue to work with those residents. She recommended adding a bench near the Oak Street portion of the path near the creek. She also recommended that the City pay for the additional plants and if these plants are vandalized, staff will recommend another plan for protection of the fence. Due to the large expense of the stabilization of the bank and retaining wall, she recommended Council approve a goal of performing these improvements and staff will return to Council at a later date with funding recommendations for this project. Suzanne Farris, 904 North Oak Street, and one of the neighborhood representatives, reported that in the beginning this was an adversarial situation between the Ruelle's and the neighbors, and felt that the City Manager's proposal is a good compromise. The path has been used for over 20 years and she has an interest in the continuation of its use. She discussed concerns with vandalism and the situation of pedestrians continuing across Oak Street to get to State Street. Emily Tarula, 825 North Oak Street, advised that she is impressed with the proposed plan and expressed her concern that the property not be sold. She felt the plan preserves the open space concept and that the pathway is very precious. Terry Sizemore, 989 North Oak Street, advised that he lives across the street from the Ruelles, and noted that he has a vision of the walkway continuing along the creek to Todd Grove Park. He discussed the abutment at the bridge on Bush Street and inquired if the City has an easement around all four corners of the bridge on Bush Street. He recommended Council consider the ownership of the bridge in order to keep the walkway open. City Attomey Rapport responded that the City has only looked at the easement adjacent to the Ruelle property. He felt that if the issue needed to be resolved, it would take place in court. It was his understanding that the surveyed boundary line indicates that the steps encroach on the Ruelle's property. The issue is whether there is a prescriptive easement that the City has acquired through use and it depends on whether or not there was permission as well as how long that use continued before the permission was given. Helen Sizemore, 989 North Oak Street, expressed concern with not being able to discern the height or length of the split rail fence. She also expressed concern with the type of plants to be planted, if the oleanders would be replaced, and if the City would purchase plants for the entire length of the fence. She discussed the driveway in the middle of the sidewalk between the creek and the Ruelle's fence. She expressed her appreciation to the City Manager for working with all parties involved to preserve the pathway. City Manager Horsley advised that the split rail fence will extend to the entrance of the path and there will be a wide opening to allow for bicycles and groups walking. She estimated the height of the fence to be approximately three feet in order to discourage the use of bikes. The plants will be placed close to the fence and the oleanders will only be located in the portion by Oak Street since they are already established. She discussed March 17, 1999 Page 9 of 15 Charley Ruelle thanked City Attorney Rapport, Public Works Director Kennedy, City Manager Horsley, and Community Development Director DeKnoblough for their support of the proposed improvements to the area. He encouraged support of the proposal. John McGowan, Ukiah, advised that the proposal is very good. He expressed his concern that the split rail fence may not deter people from vandalizing the site. He felt a less attractive, more durable fence, may be a better long term solution. Discussion by Council followed concerning staff's recommendations. Council thanked staff and Councilmember Kelly for working with the neighbors to resolve the matter. Councilmember Libby inquired if there would be any change in our rights to claim access based on making an agreement with the Ruelle's, and City Attorney Rapport advised that there would he no problem with it. It was noted that the proposal meets objectives of the General Plan with regard to stream restoration and pathways. It was also noted by members of Council that they were not giving anyway any rights by making the agreement with the Ruelle's. Staff advised that the project will be monitored. There was discussion of retaining the existing water system. Having a three foot high fence was discussed as a liability issue, and staff will investigate the matter to find a height which would discourage bikes. City Attomey Rapport advised that the issue which would give the City its claim is fixed in time. It was his hope that the proposed compromise would work to everyone's satisfaction and that the matter would not need litigation. MIS AshikulBaldwin to approve the immediate installation of improvements to the Oak and Bush Streets open space, approve an amendment to the 1998/99 budget increasing Account No. 140.6050.800.000 by $2,000, and approve a goal of future capital improvements to this site, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 9e. Approval of Ground Lease with West Coast Wings for a Portion of the Ukiah Re_uional Airport Community Development Director DeKnoblough advised that staff has been approached regarding an Airport lease by Mr. Nick Bishop, owner and operator of West Coast Wings, a fixed base operator specializing in sheet metal and aviation body repair. West Coast Wings is a small start up business operated at this time solely by Mr. Bishop and his wife. Due in large part to Mr. Bishop's professional reputation, the busi ness is experiencing significant growth and will be increasing its employment base by two employees upon opening of the new facility. The business does not generally work on intact airplanes but rather exterior components which have been damaged and shipped by truck or express delivery in crates. Upon repair, Mr. Bishop then ships the components back to the owner in the same manner. The proposed lease is for 6,000 square feet of Airport property located between the Plane Works and the Flight Service Center. The lease also includes an additional option property of 2,500 square feet to accommodate anticipated business growth. The site is currently paved but unused and Mr. Bishop will be constructing all improvements. The term of the lease is 40 years at which time all improvements would become the property of the City. Should Council approve the proposed lease, Mr. Bishop will be required to commence construction within 120 days. He reported that the Airport Commission has reviewed and approved the lease. Ken Fowler, 2150 Sierra Place, Chairman of the Airport Commission, advised that the Commission has been discussing the matter with Mr. Bishop for some time and has approved of the proposed lease. Depending on the growth of the business, it will offer approximately five to seven new jobs in the area. This is a unique business and Mr. Bishop is very skilled in his craft. The business would provide an economic benefit to the City. Judy Pruden, Chairman of the Planning Commission, advised that the last time the Planning Commission reviewed a similar agreement, the lease was signed prior to the March 17, 1999 Page 10 of 15 Judy Pruden, Chairman of the Planning Commission, advised that the last time the Planning Commission reviewed a similar agreement, the lease was signed prior to the Planning Commission's review of the Site Development Permit. She requested clarification concerning the order in which this should be processed. Community Development Director DeKnoblough advised that, according to Section 2.3 of the Agreement, the Lessee has 120 days from the date of the City Council's adoption of the Lease Agreement to satisfy the conditions, which include obtaining all necessary site development and building permits, and securing financing for construction. He discussed the sequence of the process and noted that once the Lease Agreement is executed, Mr. Bishop would have 120 days in which to secure approval of a Site Development Permit from the Planning Commission. Discussion followed conceming the sequence for processing the Lease Agreement and it was noted that, should the Lessee fail to secure the necessary permits within the 120 day time frame, the lease process would be void and need to be renegotiated. It was noted that the Lessee would be responsible for completion of all improvements and the Airport would receive the rights to all property. There was some discussion as to how the amount of rent is established and it was noted that it is based on recent appraisals of Airport property and the use of industry lease standards of 8-12% of the appraised sale value of the property. MIS Baldwin/Ashiku to approve lease with West Coast Wings for a portion of the Ukiah Regional Airport and authorize the City Manager to execute the Lease Agreement, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 9a. Adoption of Resolution of Intention to Amend the City of Ukiah's PER~ Contract to Provide Military ~ervice Credit as Public ~ervice and Third Level of 1959 Survivor Benefits for Local Miscellaneous and ~afety Members and Introduction of Implementincj Ordinance City Manager Horsley advised that, as agreed upon by a majority of the City of Ukiah's employee units, and approved by City Council upon ratification of their respective Memoranda of Understanding, the City is proposing to amend its Public Employee Retirement System (PERS) Contract to provide Military Service Credit as Public Service (Government Code Section 21024). She advised that out of 160 employees, only a few may qualify for this option. She discussed retirement benefits. MIS Kelly/Libby to approve Resolution 99-35, Resolution of Intention to Approve an Amendment to Contract Between the Board of Administration of the Public Employees' Retirement System and the City Council of the City of Ukiah, including Exhibit A, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. M/S/Kelly/Libby to introduce by title only Ordinance of the City Council of the City of Ukiah Authorizing an Amendment to the Contract Between the City Council of the City of Ukiah and the Board of Administration of the California Public Employees' Retirement System, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. City Clerk Ulvila read the Ordinance by title only. MIS KellylAshiku to introduce Ordinance of the City Council of the City of Ukiah Authorizing an Amendment to the Contract Between the City Council of the City of Ukiah and the Board of Administration of the California Public Employees' Retirement System, carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 9b. Approval of Budget Amendment for Increased Mendocino County Property_ Tax Administration Fee City Manager Horsley advised that the City has received the bill from the County for March 17, 1999 Page 11 of 15 Property Tax administration fees charged pursuant to the State Revenue and Taxation Code. According to calculations from the County Auditor's office, tax administration costs increased 30% over the last year resulting in a raise in the fee to all entities. A brief discussion followed concerning the consequences should the City Council fail to approve such an allocation. It was noted that the County collects the City's property taxes and would not release the funds to the City until the City agrees to pay the new fee. City Attomey Rapport advised that the County is entitled to charge the City their actual cost, based on their cost accounting, and should the City wish to contest the amount of increase, they could challenge the County's method of accounting to prove that they didn't accurately calculate their cost. MIS BaldwinlAshiku (under protest) to approve Amendment to the 1998/99 Budget increasing account 100.1990.346.000 by $3,485 and account 220.4601.346.000 by $330 for additional Mendocino County Property Tax Administration fees, carried by the following roll call vote: AYES: Councilmembers Libby (under protest), Baldwin, Ashiku, Kelly, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 9c. Set Date for the Electric Utility Workshop Public Utilities Director Barnes advised that a public hearing, mandated by AB 1890, must be held by June 30, 1999, to determine whether the City of Ukiah will provide open access for the generation portion of the electric utility service. In preparation for that hearing, staff is requesting that Council set a date for the Electric Utility Department staff to conduct an educational workshop outlining the City's current status and options in this deregulated environment. Consensus of Council was to set the date for the Electric Utility Workshop for Monday, March 29, 1999, at 5:00 p.m. 9d. Discussion and A_o_oroval of Replanting Program for ~eminary Avenue Median Strios City Manager Horsley advised that discussion of this matter began many years ago as the Deodora Cedar trees began to decline. Once the Plaza was built the Christmas tree lighting was relocated to that area. Community Development Director DeKnoblough advised that the Deodora Cedar trees on Seminary Avenue have existed for a number of years. However, the trees are in serious decline. The City's arborist, John Phillips, has been observing the trees during the past few years and has provided evaluations regarding their health. Mr. Phillips has found the trees to be in varying stages of decline, from moderate to advanced. In a recent letter, Mr. Phillips states that the trees have experienced an accelerated decline over the past two years and that the trees have little or no chance for recovery given the prevailing conditions of restricted open surface and limited soil exposure. Based in part upon his findings, selective pruning by a professional tree trimming firm was completed to remove dead or diseased materials and prompt new growth in an attempt to revitalize the trees. These efforts have not been successful and the trees have continued to decline. In response to staff's request, Mr. Phillips recently completed an updated evaluation of the trees and has recommended a replanting program with trees more suitable to the environment. Based upon the costs for services and materials provided by local service and materials providers, the estimated cost for the planting part of the project is $17,000. He reported that, although the Deodoras have been in place for approximately 50 years, prior to their planting the medians on Seminary were historically known as Carl Purdy Park. Mr. Purdy had originally planted a variety of ornamental and annuals which eventually died off due to the introduction of the Deodoras. He noted that The Shade Brigade expressed their concern with replanting efforts and gave suggestions for an increased tree canopy. The businesses in the area are aware that the trees are declining and becoming hazardous, and are supportive of a replanting program. Six bids were received regarding the removal of the trees, with John Phillips submitting the lowest bid. March 17, 1999 Page 12 of 15 City Manager Horsley advised that one of the business owners made a $20,000 donation towards the project. Discussion followed concerning possibly saving some of the trees, while removing others. Carl Purdy's efforts were discussed and it was noted that two of his grand- daughters still live in the Ukiah area. It was suggested that the new plantings be dedicated to Mr. Purdy's original horticulture contributions. Mr. Phillips' evaluation was discussed and it was suggested that a second opinion be obtained before a decision on the removal of the trees is made. Various planting scenarios were discussed and liability regarding the trees was addressed. John McGowan, Ukiah, was of the opinion that a second opinion be obtained regarding the status of the trees. He discussed the care of the trees during the past years and suggested the City not prune trees so drastically in the future. He discussed the danger of falling tree limbs. He recommended getting the community involved in the design of the median strip and that it not necessarily be tied into Mr. Purdy's original design. Judy Pruden, Ukiah, advised that she has been an advocate of the removal of the Deodora Cedar trees along Seminary Avenue. She advised that the median strip is a City Park, dedicated to Carl Purdy in 1929, and there is no indication that he designed the park. She described the original area as an open vista, planted in zinnias and reported that the Deodoras were installed after World War I1. She discussed the City Council designation of Christmas Tree Lane and recommended research be conducted to ensure there would not be a conflict if the trees were to be removed. She noted the preservation of the Deodora Cedars on Seminary Avenue is included in the General Plan Open Space Conservation Element. She felt that keeping some of the anchor trees may mitigate some of the impact of their removal. She discussed the danger with falling tree limbs. She would like to see a corridor of trees along Seminary Avenue. Discussion followed concerning the difficulty in keeping some trees while removing others, and the desire to not damage their root system. There was discussion of John Phillips' proposal in the preservation of trees at Todd Grove Park and at other locations. MIS AshikulKelly to approve the replanting program for the Seminary Avenue Median Strips. Discussion followed conceming obtaining a second opinion from another arborist as well as input from a landscaper regarding compatibility. The composition of the Deodora Cedars was discussed. MIS AshikulKelly to amend the motion to include obtaining a second opinion from an arborist, carried by the following roll call vote: AYES: Councilmembers Libby, Ashiku, Kelly, and Mayor Mastin. NOES: Baldwin. ABSTAIN: None. ABSENT: None. 9g. Discussion of City Revenues City Manager Horsley advised that since there are two Councilmembers who have not gone through the budget process before, staff has prepared revenue information to provide a framework of background information prior to beginning the upcoming Fiscal Year 1999- 2000 budget process. The report will focus on the general categories and trends of the City of Ukiah's General Fund revenues. Two additional "pre-budget" information items will be brought to the Council prior to the beginning of the formal budget process. Assistant City Manager Flad advised that the total City of Ukiah expected revenue for the 1998/1999 Fiscal Year is $31,571,450. Of this total amount $6,695,385 or 21% is designated as General Fund revenue. Of the revenue not categorized as the General Fund, the vast majority is received from the City's Public Utilities and Public Works Departments. In fact, $19,543,450 of the $24,876,065 total, or 79%, of Ukiah's non- General Fund revenues are received by the Sewer, Solid Waste, Electric and Water Funds. He reported that over the last 10 Fiscal Years, the General Fund has shown relatively steady growth. Unfortunately, General Fund expenses have exceeded revenue growth, March 17, 1999 Page 13 of 15 in some instances, even though the City has gone through extensive cost cutbacks, employee reductions and service delivery decreases. For the City of Ukiah, Sales Tax accounts for 43% of total General Fund revenues. Other sub-categories included in the General Fund are Franchise Fees (16%), Intergovernmental (10%), Use of Money and Property (10%), Other Revenue (9%), Property Tax (7%), and Other Taxes (6%). The majority of the revenue in the Intergovernmental category is attributable to the Motor Vehicle License Fee. He briefly discussed the history of General Fund revenues and noted that, over the last four years, sales tax has been a driving force in General Fund growth. He advised that Sales Taxes, Franchise Fees, Property Taxes, and Other Taxes account for $4,813,500 or 72% of General Fund revenue. Prior to the adoption of Proposition 13, Property Taxes were a dominant source of revenue for California cities. Since the implementation of Proposition 13, most local authority over the tax has been removed. The base rate set in the State Constitution is 1% and state statutes control the distribution of tax revenues. He discussed the Education Revenue Augmentation Fund (ERAF) which directly reduced the amount of Property Tax allocated to the City of Ukiah. He reported that the current Sales Tax for Mendocino County is 7.25%, noting that 1% of the total sale price goes to the City General Fund. The City of Ukiah contracts with Municipal Resource Consultants (MRC) to provide Sales Tax reporting and analysis services. He noted that the majority of the Franchise Fees are derived from electric utilities. Combined, the cable and gas Franchise Taxes generate $82,000 for the General Fund. He discussed the Property Transfer Tax and the Room Occupancy Tax, also known as the Transient Occupancy Tax. The City of Ukiah Room Occupancy Tax rate is 8%. The Business License Tax for Ukiah businesses ranges from $.20 to $.75 per $1,000 of gross receipts. The Business License Tax for any business with annual gross receipts of $2,000 or less is $10. ^ special License Fee, also referred to as the "Motor Vehicle In-Lieu" fee, equivalent to 2% of the market value of motor vehicles is imposed annually by the state in-lieu of local property taxes. Effective January 1, 1999, the State Vehicle License Fee was reduced by 25%, with no immediate impact on City revenue. For the City of Ukiah, Motor Vehicle License Fees totaled $600,000 or 9% of the General Fund revenues. Council expressed their appreciation for the concise report prepared by Staff. There was a brief discussion concerning clarification of some revenues. 10. CITY COUNCIL REPORTS Councilmember Libby reported attending a Sun House Guild meeting and a press release will be issued identifying a $400,000 donation towards a new wing at the museum. Councilmember Baldwin reported that the past three meetings of the Mendocino County Inland Water and Power Commission have focused on major capital projects. He will keep Council informed of the progress and when he will need direction from Council with regard to voting on funding these projects. Councilmember Ashiku had nothing to report. Councilmember Kelly reported attending a MCOG Transit Productivity Committee meeting where there was evaluation of MTA's efforts and performance to provide public transit within Mendocino County. She discussed a funding formula whereby those projects lacking full funding were able to obtain assistance if they met the transportation needs in Mendocino County, and small amounts of money would come to the cities for street and read improvement projects. The Committee decided to put that process on a one year hold and those funds will not be available until there has actually been a finalization of the fiscal year. The net result is that these funds will not be given to the City of Ukiah any longer for streets and roads. However, there is money available for streets and roads elsewhere. She reported attending a Ukiah Unified School District Board meeting yesterday with Mayor Mastin and City Manager Horsley. The School District thought that matching funds would be available from the state to assist in funding the new elementary school at the Wards site. However, it was stated at the meeting that it has been determined that they March 17, 1999 Page 14 of 15 are not eligible for matching funds, which was $7-$10 million. The process is not over and the School Board voiced their support for continuing with their partnership with the City. She noted that the City Clerk provided her with a piece of history from a newspaper article dated July 1989 regarding skateboarding. Ten years later, the City continues to deal with the skateboard issue. Mayor Mastin reported attending the School Board, MTA, and NCRA meetings. 11. CITY MANAGER/DIRECTOR REPORTS City Manager Horsley had nothing to report. 11:15 p.m. - Adjourned to Closed Session. 12:05 a.m. - Reconvened. 9h. Approval of Ground Lease with Community_ Air for 1.828 Su_uare Feet of Office Space at the Ukiah Regional Airport No action taken. 12. CLOSED SESSION a. G.C. 6_54956.8 -Conference With Real Property Negotiator Property: F.A.A. Building Owner: City of Ukiah Negotiator: Candace Horsley Under Negotiation: Price and Terms of Payment No action taken. b. G.C. §54956,8 - Conference With Real Property Negotiator Property: 001-020-78 and 001-030-01 Owner: City of Ukiah Negotiator: Candace Horsley Under Negotiation: Price and Terms of Payment No action taken. c. G.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. 13. ADJOURNMENT There being no further business the meeting was adjourned at 12:05 p.m. Marie Ulvila, City Clerk March 17, 1999 Page 15 of 15