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HomeMy WebLinkAboutMin 06-16-99MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, June 16, 1999 The Ukiah City Council met at a Regular Meeting on June 16, 1999, the notice for which had been legally noticed and posted, at 6:31 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Council- members were present: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. Staff present: Customer Service Supervisor Archibald, Public Utilities Director Barnes, Water/Sewer Operations Superintendent Borecky, Community Services Director DeKnoblough, Police Sergeant Dewey, Finance Director Elton, Assistant City Manager Flad, Risk Manager/Budget Officer Harris, City Manager Horsley, Acting City Attorney Johnson, Public Works Director Kennedy, MIS Coordinator Klingbeil, Fire Chief Sandelin, Community Services Supervisor Sangiacomo, Deputy Public Works Director Seanor, Police Chief Williams, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Councilmember Libby led the Pledge of Allegiance. 3a. PROCLAMATION: Month of July as Parks and Recreation Month - Mayor Mastin read the proclamation designating the month of July, 1999, as "Parks and Recreation Month" and urged the citizens of Ukiah to use and enjoy the City's parks and recreation programs, taking into consideration their beneficial effect to the well being of all. Community Services Supervisor Sangiacomo thanked Council for the Proclamation. He advised that the Community Services Department is at its peak season. He discussed some of the summer programs, such as Sunday Concerts in the Park and Summer Safari Program, and advised that Day Camp will open on June 21. They are currently working on updating their brochures. He thanked the Recreation Department staff, both full time and part time employees, for their efforts to make the programs a success. 3b. PRESENTATION' Nancy Jones. Public Financial Management, Regarding City's Investment Strate(~ies - v Mayor Mastin advised that information was provided Council in their packets concerning Public Financial Management, Inc. (PFM) who have been serving as the City's investment advisor since 1997. Other information concerning this matter was distributed to Council at the meeting. City Treasurer Allen Carter advised that Nancy Jones is PFM's Managing Director and handles the City of Ukiah portfolio. She will report on some of the changes that have happened since PFM took over the portfolio of the City. Nancy Jones advised that the City Manager has asked her to provide a report concerning their firm. Since PFM was hired by the City, new Councilmembers have been seated. She noted that PFM only manages public money. They currently manage $9.4 billion of public agency operating funds and bond proceeds. The difference between PFM, who provides investment management and a broker-dealer is that PFM does not have their own securities. Anything they buy for the City, is purchased through brokers and delivered directly to the City's custodian bank. They have nothing to sell the City from their own inventory because they do not have an inventory and the money never goes through their hands. She reviewed PFM's Investment Advisory Group and noted PFM has strong internal controls. She discussed their trading desk and noted PFM only works for public agencies, wherein every person who works on their Trading Desk is focused on the various types of securities permitted for such accounts as the City's. Ms. Jones reviewed what has transpired since being hired by the City and noted that PFM met with City staff and the Oversight Committee to determine investment objectives and June 16, 1999 Page 1 of 16 risk tolerance. Their first step began in rewriting the City's investment policy. Recommendations were then made as to how to adjust the portfolio to make it safer for the City and to evaluate performance. She discussed their summary of initial recommendations and strategy to improve the diversification by sector. She noted that since February 1998 the, portfolio has been in good condition. PFM has bought securities that fit the City's liquidity needs which have a good yield and provide a lot of safety to the portfolio. She compared the City's portfolio of April 30, 1996 to March 31, 1999 and discussed how the maturity distribution had shifted. She advised there is more liquidity in the portfolio, and it is now concentrated in the 1 to 3 year maturity range. She reported how the State of California runs a pool, called LAIF, noting that the City has plenty of liquidity in its account. She discussed historical interest ranges on two-year U.S. Treasury Notes and advised the average yield on Treasury Notes over the past two years has been at 5.4%. They continue to find ways to improve the portfolio's performance in terms of yield as well as quality. They prepare monthly statements which are delivered to the City's staff, prepare a quarterly investment performance report, and meet with staff and elected officials when necessary. Their primary objective for the City is safety, compliance with the laws, and liquidity. She advised the portfolio is worth $336,000 more now than had the City left the money in the State pool. City Manager Horsley advised that members of the Investment Oversight Committee who are in attendance are Monte Hill, Allen Carter, Gordon Elton,-Mike Harris, as well as Councilmember Phil Ashiku and Mayor Mastin. She thanked Mr. Hill, Mr. Allen, and Ms. Jones for working so diligently over the past three years to get the City where it is today. The City is very pleased to have come a long way in a very short amount of time. Ms. Jones responded to an inquiry from Councilmember Smith indicating LAIF stands for Local Agency Investment Fund, and is the State of California's pool. She noted the City currently has approximately $14 million invested in it. Councilmember Baldwin inquired if the City is investing in a socially responsible manner, such as screening for corporations with sweat shops, red lining communities, or defense contractors. Ms. Jones advised that only 17% of the entire portfolio is invested in any type of corporation. The screening they conduct is based on credit quality, not social responsibility of the organization. Mayor Mastin inquired, should the Council give direction to PFM to investigate the issue of socially correct investments, what can the City expect in the way of information comparing it to the City's current investments. Ms. Jones felt a great deal has to do with the definition. She noted they need to find companies who have a credit rating of AAA or AA. They have looked for another public entity to buy green or to make environmentally responsible investments. PFM had difficulty finding companies under this definition which were rated high enough to put into their portfolio. They would need a definition in order to pursue the matter more thoroughly. 3c. PRESENTATION: Greater Ukiah Chamber of Commerce, Regarding Annual Activities City Manager Horsley advised that the City received correspondence from the Greater Ukiah Chamber of Commerce requesting a presentation be made to Council for the purpose of updating their activities and discussing their objectives and goals, based on the City's partnership and partial funding. Kathy Spencer, President of the Greater Ukiah Chamber of Commerce, resident of 2717 Oak Court Ukiah, advised that the City of Ukiah and the Chamber of Commerce have enjoyed a very successful public/private partnership for many years. Through the partnership, the entire community has benefited. The Chamber's operating budget is comprised of membership money which includes grant money they receive from the City. The Chamber is careful about allocating the City's money for services such as tourism, June 16, 1999 Page 2 of 16 relocation, and economic development. She also advised the grant money received allows them to direct the Chamber membership money to assist with programs that are already established such as the Fourth of July, Holiday Trolley, Small Town Christmas, and educational seminars, as well as the creation of new tourism and relocation packets. The City provided funding assists them in these areas and directly affects all other programs they provide to the community. She reported that the Chamber has serviced 34,832 informational requests and inquiries regarding Ukiah and the surrounding area during the past fiscal year. She noted that, based upon the number of inquiries received during the 1998/99 fiscal year, the City's contribution is $0.55 per contact. It is estimated that the cost per inquiry is $1.75. The Chamber looks forward to continued community service. She reiterated it is the Chamber's primary objective to continue presenting as a premier community to visit, live, and do business. She felt that the City's funding is very important to the Chamber in order to provide these services to residents and visitors. Chamber representatives look forward to continuing this very important public/private partnership between the City and the Chamber of Commerce. Councilmember Libby congratulated the Chamber for the work they have done in the Ukiah area and how they have turned things around, financially, for the Chamber. She inquired whether payroll is the Chamber's largest fixed expense and whether there has been an increase over the past three years. She also inquired as to the Chamber's second largest fixed expense. The Chamber was operating in the red several years ago and has worked hard to turn that around. She further inquired as to their anticipated status by the end of this year. Ms. Spencer advised that payroll is their largest fixed expense and has increased annually along with other expenses. As reorganization continues, the Chamber is becoming financially solvent. They currently employ two staff members. Elizabeth Brazil, Executive Director of the Chamber of Commerce, advised that their second largest fixed expense is a combination of insurance and postage, which is approximately $3,000 per year. She stated that, based on the amount of money received from memberships, with their projected totals, they will be operating in the black, noting that they budget to match their revenues for the year. 4a. APPROVAL OF MINUTE~ - Amended Minutes of Regular Meeting of May 19, 1999 Councilmember Libby discussed her previous request to amend the minutes of May 19, 1999, and noted her request represented the conversation between Mayor Mastin and Public Utility Director Barnes. When Mayor Mastin asked Mr. Barnes about the cost of the average residential bill, Mr. Barnes stated it is $58. Mayor Mastin then stated that the amount comes to approximately $1.91 per household. She requested that this conversation be incorporated into the minutes, instead of what was submitted by staff. Discussion followed among Councilmembers and staff concerning the amended minutes as provided in the Council packet compared to Councilmember Libby's recollection. City Manager Horsley expressed a need for clarification to staff concerning how the minutes should be prepared. She advised that in the past, the City Clerk has not prepared verbatim minutes and further advised there is a need for Council to discuss their format preference. The minutes have always been written in summary form. She compared the City's minutes with those of the Mendocino County Board of Supervisor's and indicated the County's minutes are very brief. It was the Consensus of Council to agendize the "preparation of the minutes" for a future meeting and directed the City Clerk to amend the minutes of May 19, 1999, as recommended by Councilmember Libby. 4b. MINUTES - Soecial Meeting of June 2, 1999 City Clerk Ulvila advised that the minutes of June 2, 1999 are not available but will be agendized for Council's July 7, 1999, meeting. June 16, 1999 Page 3 of 16 5. RIGHT TO APPEAL DECISION Mayor Mastin reviewed the appeal process. 6. CONSENT CALENDAR Councilmember Libby questioned staff on Item #1, award of bid for floway pumps, concerning whether the pumps are currently operational. Public Utilities Director Barnes advised that the pumps are barely operational. The pumps are designed to deliver 7.5 cfs each of water to the hatchery but are currently producing about 2 cfs each, noting that the impellers are completely worn. He advised that this is part of the City's license with the Federal Energy Regulatory Commission (F. ERC) for the hydro plant to deliver water to the hatchery. These pumps are designated only for the hatchery. MIS BaldwinlAshiku approving Items a-I of the Consent Calendar as follows: a. Approved Disbursements For The Month of May 1999; b. Rejected Claims for Damages Received From Kirk Driving School and Rone Wane (China Diner), and Referred to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Received Report Regarding Acquisition of Services from Dutton Enterprises for Improvements to the Men's Locker Room in the Amount of $8,261.17; d. Adopted Resolution No. 99-45 Granting Consent to the Transfer of Control of the Cable Television Franchise; Rejected All Bids for Hewlett Packard Computer Server; Approved the Subdivision Improvement Agreement for the Doolan Creek Subdivision, Major Subdivision No. 97-44; g. Adopted Resolution No. 99-46 Approving Final Map for the Doolan Creek Subdivision and Accepted on Behalf of the Public, Various Easements and Parcels in Fee Offered for Public Use and Benefit; h. Received Report Regarding Award of Consultant Service Agreement to W-Trans in the Amount of $9,950 for the Performance of Traffic Delay Studies at Various Signalized Intersections; Awarded Bid for Floway Pump Parts to Floway Pumps for the Sum of $18,008 Plus Tax; Authorized the City Manager to Enter Into Contract With Kennedy/Jenks Consultants to Evaluate the Wastewater Treatment Plant Facilities for Continued Reliability and to Meet Growth for the Next Twenty Years; Approved the First Amendment to the Joint Powers Agreement Creating the Mendocino Emergency Service Authority (MESA), and Authorized the Mayor to Execute Same; I. Awarded Bid for 4x4 Utility Vehicle to Thurston Chevrolet in the Amount of $26,700. eo ko The motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: None. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS_ Tom Greenaway, 309 Clara Avenue, representing New Dimensions Radio, 214 East Smith Street, discussed the control burn on June 6, 1999, regarding the structure on North Main Street, which is across the street from his business. At an earlier Council meeting, he had approached Council with their concerns regarding the control burn. He advised that, on the day of the burn, he met with Fire Chief Sandelin. He commended City staff and Chief Sandelin for their efforts taken to protect his business and nearby trees from any fire damage during the burn. Mayor Mastin noted that Mr. Greenaway drew attention to a potential safety problem regarding the Main Street demolition where there is a 3 to 4 foot drop in the foundation. 8a. PUBLIC HEARIN(~ Introduction of Ordinance Amending City of Ukiah Code ~ection 2605 - Area of District, Modifying the Boundaries of the City of Ukiah Downtown Parking and Business Improvement District Assistant City Manager Flad identified the purpose of the hearing is to provide an June 16, 1999 Page 4 of 16 opportunity for public input regarding the expansion of the Downtown Improvement District. In general terms, the additional area includes Mill Street to Gobbi Street, and Main Street to Oak Street. At the May 5, 1999 City Council meeting, staff was directed to begin the expansion procedures for the District boundaries. At the May 19, 1999 Council meeting, Council adopted the Resolution of Intention to Modify the Boundaries of the City of Ukiah Downtown Parking and Improvement District Area, setting June 16 as the hearing date for public input. Staff published the hearing notification and noticed all the affected businesses as required. He advised that should businesses totaling 51% of the projected revenue generated by the expanded area file written protest, Council would be obligated to abandon the effort for a period of one year. To date, there have been no written or oral protests received. He recommended that should a 51% protest not be received, that Council introduce the proposed Ordinance amending the City of Ukiah Code Section 2605, Area of District Modifying the Boundaries of the City of Ukiah Downtown Parking and Improvement District. Public Hearing Opened: 7:12 p.m. Alec Rohrbaugh, owner of Computer Scene, 633 South Main Street, was of the opinion that his business would not benefit from joining the Downtown Improvement District, and he opposed paying the required $181 fee. Mayor Mastin inquired whether all the businesses were informed of the increased fee and how the money would be appropriated. Assistant City Manager Flad advised that each business was notified and it was noticed in the newspaper. Public Hearing Closed: 7:15 p.m. Councilmember Smith advised that he may have a potential conflict of interest since he represents a business that is located in the current District. He was advised by the .Mayor and the City Manager that if he did not benefit financially, he would not have a conflict of interest. Councilmember Smith advised that he would not be financially affected by the District expansion. Councilmember Libby inquired of Mr. Rohrbaugh if his business license is currently $181. Mr. Rohrbaugh advised that his business license fee would double if he joined the District. Assistant City Manager Flad advised that the maximum fee is $250 and noted that the fee levied is the equivalent of the business fee less $5. He noted that Mr. Rohrbaugh's business license will remain the same. He will then pay its equivalent, to a maximum of $250, to the Main Street Program as the fee for being in the Downtown Improvement District. Discussion followed regarding the fee calculations and how the money will be utilized by the District. MIS Ashiku/Smith to introduce Ordinance by Title Only, to Modify the Boundaries of the Parking and Business Improvement Area by Adding Section 2605.5 to the Ukiah City Code; carried by an unanimous Voice Vote. City Clerk Ulvila read the Ordinance by title only. MIS AshikulSmith to introduce Ordinance to Modify the Boundaries of the Parking and Business Improvement Area by Adding Section 2605.5 to the Ukiah City Code; carried by June 16, 1999 Page 5 of 16 the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. Councilmember Libby expressed a reluctant "yes" vote for the record, noting her concern with one business not wanting their fees doubled. 8b. PUBLIC HEARING Adoption of Resolution Revising Capital Improvement Fees for the Ai _rport Industrial Park {ALP) Mayor Mastin reported that Staff has requested the Public Hearing be continued to the July 7, 1999 meeting. Although the notice for the Public Hearing has been posted, audience comments on the matter will be received and the Public Hearing will be continued to the July 7, 1999, meeting. Public Hearing Opened: 7:20 p.m. John McCowen, P.O. Box 454, Ukiah, stated the Airport Industrial Park development does not have proper infrastructure for the intensity of the development. It is his understanding that the installation of a second left turn lane is being considered. He felt it is necessary because the existing west bound left turn lane quickly becomes filled. With the current situation at the intersection, it would only worsen should the area be developed further. He was of the opinion that neither the developer nor those that purchase lots in the development should bear the full cost of widening Talmage Road from the freeway to State Street. However, they should be asked to contribute towards the widening of the immediate area of the development. He discussed additional capital improvements that are needed to the development and felt they should be noted when Council adjusts fees. He felt the area looks more like a shopping center than a business park. In his opinion, there is a need for additional capital improvements within the development. At 7:24 p.m. the Public Hearing was closed and continued to the July 7, 1999 meeting. 9. UNFINISHED BUSlNE$~ a. Consideration and Approval of Agreements with Jeff McMillen for Golf Professional and Golf Operations Consulting ~ervice~_ Community Development Director DeKnoblough reported that at the May 19, 1999 meeting, the City Council directed staff to prepare and negotiate agreements with current Golf Professional Jeff McMillen. Subsequently, staff met with Mr. McMillen and completed a tentative agreement for both Golf Professional Services and Golf Operations Consulting Services. The Golf Professional Services contract is for an initial period of 16 months and can be renewed for four years, at the City's option, on October 31, 2000. The contract calls for 6% of the first $150,000 to be paid to the Pro with 4% of anything over $150,000, which includes all the greens fees and revenue received by the City. The current contract proposes to change the 4% on the second tier to 5%. He noted that this would allow the pro to participate in the advertising program and contribute up to $100,000 in advertising and promotions of matching funds to the City. Mr. McMillen also agrees to accept charge cards at the Golf Course. Currently, no charge cards are accepted for greens fees because the City does not have a mechanism to absorb the percentage that is charged for this service by the credit card company. Mr. McMillen has agreed to incur those costs on his own and the increased 1% covers the credit card service fees and advertising. The Operations Consulting Contract involves three phases of work which Mr. McMillen would perform for the Golf Course. This Operations Consulting Services contract includes the development of an annual operating plan, a five year Capital Improvement Plan, and on-going monitoring of the Golf Course conditions. Both plans would be reviewed and approved by the City and Mr. McMillen would assist in the implementation of these programs. He discussed some of the services that the Pro has been providing on a limited basis and noted contract approval will allow Mr. McMillen the opportunity to fully utilize his professional golf management expertise. Discussion followed concerning credit cards at the Golf Course. It was noted that under the terms of the proposed contract, there is a requirement that the Pro maintain, operate, June 16, 1999 Page 6 of 16 and make available to the public, an adequate number of carts. The Golf Pro will receive all golf car fee income. It was noted by the City Manager that the maintenance plan needs to be updated and she further noted that the proposed pilot program will be monitored for 16 months. Emmett Jones, Ukiah, expressed his appreciation to Council and staff for considering the long-term commitment and he felt the contract is both flexible and an economically feasible way for the City to add on-site monitoring. He felt the golfing community views Mr. McMillen as a long-term golf professional at the Ukiah Golf Course. Jeff McMillen, 25 Highland Court, stated it is his intention to be the City's golf professional as long as he can, and noted the contract allows him more input into the day-to-day operations of the Golf Course. He felt that golf is very active in Ukiah and would like to be part of its growth in the community. Councilmember Smith reported that he recently had an opportunity to speak with some golfers and they felt that Mr. McMillen does a good job and he has community support. MIS Ashiku/Smith approving agreements with Jeff McMillen for Golf Professional Services and Golf Operations Consulting Services and authorizing the City Manager to execute agreements; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku, Baldwin, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 9b. Adoption of Ordinance Amending Chapter 4, Article 1. Section 1001 of the Municipal Code to be Entitled Parks, Recreation, and Golf Commission Community Development Director DeKnoblough advised that at the June 2, 1999 meeting, the City Council introduced an ordinance combining the Golf Course Advisory Committee and the Parks and Recreation Commission thus creating the Parks, Recreation, and Golf Commission. Staff has received no public comment regarding the proposed ordinance and therefore recommends that Council proceed with adoption of the Ordinance. Councilmember Baldwin encouraged his fellow Councilmembers to reject the recommended action and felt it is a mistake. He felt the two committees are very incompatible in terms of passive recreation such as hiking along the rim trail system and the development of Riverside Park, compared to the pro-active recreation of golfing. In his opinion, could become a Golf Commission with a lesser parks element. Even though the Parks and Recreation Commission has been without items to discuss in the past, it does not mean that it will continue in the future. He opposed the merger for those reasons. Councilmember Ashiku advised that should the merger not work, the matter can be revisited by Council. MIS AshikulSmith adopting Ordinance 1020, Amending Chapter 4, Article 1, Section 1001 of the Municipal Code to be Entitled Parks, Recreation, and Golf Commission. Mayor Mastin advised that he also questioned the proposal to combine the two committees when it was brought before Council at the last meeting and is still not convinced it is in everyone's best interest. He felt the issues of each committee are not necessarily similar. He also expressed concern that both committees have new projects which need to be considered such as the contracts with Mr. McMillen, the development of Riverside Park project, and continuing the City's Recreation Program activities. Councilmember Libby felt that since all committee members have discussed the matter and have agreed to merge, that it is best to follow their recommendations. This matter can be revisited in a year to see how it is working. Councilmember Smith was of the opinion that, based upon the recommendations of the two commissions, Council should approve the proposal. He concurred that the matter can be revisited again. He noted the composition of the membership allows for only three members from the golfing community. June 16, 1999 Page 7 of 16 Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, and Ashiku. NOES: Councilmember Baldwin and Mayor Mastin. ABSENT: None. ABSTAIN: None. 9c. A_opointment of City Council Members to Various Committee Assignments Mayor Mastin advised that after the June 2, 1999 Council meeting, he had an opportunity to review the various City Council committee assignments. He discussed his recommendations, as well as the vacancy on the League of California Cities Community Policy Committee. If an individual Councilmember is interested in serving on a League Policy Committee, they would be appointed by the Redwood Empire Division. Discussion among Council and staff continued with regard to the Redwood Empire Division appointment process to the League of California Cities' Policy Committee. It was noted that there are approximately 12 Committees with the membership rotating each year. Councilmember Libby advised that at the last meeting she expressed an interest in being appointed to the Ukiah Unified School District Site Selection Committee. She requested the Mayor to reconsider his recommendation of appointing Councilmember Ashiku to that committee. Mayor Mastin advised that Councilmember Ashiku had previously reported that the Site Selection Committee and the Recreation Center Group are related to each other. Councilmember Ashiku had no objection to Councilmember Libby's request, however, he emphasized that he wants to see the Recreation Center Group continue to gain interest. He felt that the two committees are related to each other and he did not recommend they be split among Councilmembers. It was his desire that Councilmember Libby make a commitment to working with the Marvin Trotter to bring the Recreation Center to fruition. Councilmember Baldwin queried Councilmember Libby concerning her perspective on the Recreation Center. Councilmember Libby advised that she needs to obtain additional information on the project, but sees a need for a Recreation Center and she would like to help the project progress. City Manager Horsley advised that she will provide Councilmember Libby with information concerning the two committees. Councilmember Ashiku discussed the possibility of forming a sub-committee for concerns related to the City's utility billing, since Council frequently revisits utility related issues. He felt the new Councilmembers would benefit from meeting with Public Utilities Director Barnes. Mayor Mastin recommended the matter be agendized to allow further discussion and to establish parameters and direction. City Manager Horsley noted that the committee could be set up similar to the Solid Waste Sub-Committee so that when a major issue is coming before Council, the sub-committee would gather additional information and report back to Council. Discussion continued regarding whether to have a sub-committee, workshops, or training sessions throughout the year. Mayor Mastin discussed Councilmember Smith's appointment as an Alternate to MCOG and recommended that Councilmembers Libby and Smith meet with Kristy Kelly to obtain background on the committee. Consensus of Council was to approve the City Council Assignment Sheet for Committees, June 16, 1999 Page 8 of 16 as presented by Mayor Mastin, and making appointment of Councilmember Libby to the Recreation Center Group and the Ukiah Unified School District Site Selection Committee. 9d. Consideration and Approval of Replanting Program for Seminary_ Avenue Medians Community Services Director DeKnoblough advised that at the May 5, 1999 meeting, Council requested a replanting program for the Seminary Avenue median strips prior to approving the removal of the declining Deodora Cedars. He reported meeting with Tom Fracd3ia of Creative Designs to prepare a conceptual plan, based on what is known to be working in the downtown area, and focusing on a Iow maintenance program to minimize water consumption. Mr. Fracchia has submitted a plan which dots the medians with Chinese Pistache trees and colorful shrubs. All the shrubs included in the plan have long lasting spring and summer blooms and are limited in height to three to four feet. Mayor Mastin requested the Chinese Pistache tree not be used in this area, as there is an abundance of these trees throughout the City. He noted that if disease strikes, we would need to replace all the trees. He recommended changing the type of trees being planted to provide variety. City Manager Horsley advised that the City's Urban Forest Plan identifies a variety of trees which can be used throughout the City. Mr. DeKnoblough discussed working with Assistant City Manager Flad and arborist, John Phillips, concerning tree recommendations that would provide shading, color, and a good canopy. He discussed the types of shrubs recommended. It was noted by the City Manager that Chinese Pastiche trees have been planted along School Street. Councilmember Ashiku inquired if the conceptual landscaping plan is consistent with the original historical garden planted in that location. Mr. DeKnoblough reported that there was a heavy concentration of annual plantings at that location which were maintained by Mr. Purdy. Due to the amount of water consumption and labor that would need to be applied to the area, it is not feasible to duplicate the landscaping. Councilmember Libby inquired if Council voted to have the existing trees removed. City Manager Horsley advised that Council approved having the existing trees removed, only after a landscaping plan is been approved. After a brief discussion, Council concurred with the City Manager's recollection of the vote on tree removal. Mr. DeKnoblough advised that should Council approve the conceptual landscaping plan, staff would then develop a final plan which would be reviewed by the Parks, Recreation and Golf Commission and be returned to the Council for approval. City Manager Horsley reported, in response to Councilmember Baldwin's inquiry concerning funding of the project, that the City has already received a check for the funding. Councilmember Libby noted that she has always thought of Seminary Avenue as Christmas Tree Lane and it is difficult to let go of traditions. She felt the landscaping plan would give the street a new look. Mr. DeKnoblough, in response to an inquiry by Mayor Mastin concerning plant setbacks from the curb, advised that an allowance will be made to accommodate car doors opening. MIS AshikulLibby to approve the conceptual landscaping plan for Seminary Avenue. June 16, 1999 Page 9 of 16 Councilmember Baldwin noted that if the City could save trees similar to what is being implemented in Oaxaca, Mexico. This is why he is will vote against the project. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku (reluctantly), and Mayor Mastin (reluctantly). NOES: Councilmember Baldwin. ABSENT: None. ABSTAIN' None. 9e. Ap_oroval of Consulting Services Contract with Intec~rated Technolo(~v -- Partners for the Ci _tywide Hardware/Technology Needs Assessment and Plan and Corresponding Budget Amendment MIS Coordinator Klingbeil advised that bids were solicited for consulting services to provide a Citywide Hardware Technology Needs Assessment and Plan. Three bids were received and, after careful consideration and review, it was determined that Integrated Technology Partners (ITP) could best provide the City with the services required and at the same time, provide those services for a fair and reasonable fee. She requested Council approve the contract to ITP, authorize the City Manager to execute the agreement, and approve a budget amendment in the amount of $15,200 to cover the consulting fees. Mayor Mastin noted that several years ago, the City undertook a similar process r&lative to the hardware needs of the City. There was discussion at that time to linking Councilmembers home computers to the City's document imaging and computer systems. Ms. Klingbeil advised that discussions with the consultant will include developing some remote access to City Hall (wide area networking) and, if it is developed for the City's other outside locations, it would be feasible to add Councilmembers or other City employees who need to work at home. Councilmember Baldwin inquired if the budget amendment requested is an emergency item and why was it not included in the budget. Finance Director Elton reported that at the time the budget was prepared, staff was unsure as to how or when the City would proceed with this project. Subsequent to that time, the utility billing software vendor had given the City notice that they would no longer support the City's software. During the year, staff looked into the matter of Y2K compliant software and options available to the City. He noted that there was discussion during the budget hearings of a need to improve computer technology within the City. He reported that some work was completed in 1994/95 which resulted in the network that is currently located in the north wing of the administration building. There were conceptual ideas of expanding the system throughout the entire building, however, it was not developed beyond.that point. In the subsequent 4 % years, technology has changed, and the remaining parts of that plan are no longer applicable to the current state of technology. Ci~ Manager Horsley advised that when a computer person was hired in 1994 there were approximately six employees with PC's in the City. Today, almost all employees in City Hall have their own PC's. Ms. Klingbeil noted that the City currently has approximately 120 PC's. Councilmember Baldwin noted how rapidly PC's become obsolete. He inquired as to the process for purchasing the computer components necessary and how to confirm the consultant's proposal. It is his hope that the City can look at this proposal not from the viewpoint of what staff wants/ He inquired if the citizens will benefit from the City's investment in new technology and advised he is a skeptic. Finance Director Elton discussed the bids received and noted that ITP's proposed consulting fee is $95 per hour. According to the agreement, the consultant is precluded from selling the City any hardware or software. He advised that staff would like the tools to do their job in the modern world. Currently the City has difficulty communicating with the City Attorney because of outdated technology. He discussed the status of the PC's June 16, 1999 Page 10 of 16 and noted that to date three versions of Pentium have gone obsolete. He reported that the largest challenge is to ensure that all the computers, hardware, and software are compatible. He noted the daily care and maintenance of the current computers is a full time job assigned to Ms. Klingbeil. To supervise the purchase, specifications, installation, and other work associated with the project would require additional assistance. City Manager Horsley noted that once the computer system is assembled and implemented, staff can then maintain the system. She discussed the lack of Email and Internet capacity at individual workstations. Councilmember Smith noted that, according to the staff report, at the February 17, 1999 City Council meeting, there was a presentation regarding the need to do an assessment, and was approved by the City Council at that time. Since that time, staff has received responses from the Request for Quotation. He questioned why Council is now debating the issue of having a Needs Assessment when it has already been approved in February. He felt it is time to go forward with the project. Councilmember Libby confirmed that Council had previously approved the Needs Assessment. Councilmember Smith noted that once the Needs Assessment is completed, Council and staff can then determine whether to approve the expenditure. Councilmember Ashiku was of the opinion that the citizens expect the City to operate as an efficient business and with the City's technology updated into the next century, it should mean greater efficiency, happier staff, better productivity, less cost to the taxpayers in the long run, and greater communication with other staff members and agencies. He felt it is time for the City to move forward with the proposal. MIS AshikulSmith to award the consulting service contract to Integrated Technology Partners (ITP) for Citywide Hardware/Technology Needs Assessment and Plan, and authorize the City Manager to execute the agreement. Councilmember Baldwin discussed the City's phone system and his frustration in connecting to a specific employee. He discussed how technology changes rapidly and becomes obsolete, and that staff is constantly in need of learning new systems as they are updated. It is his hope that Council will look at the Plan in terms of how any citizen will benefit from the Plan. City Manager Horsley felt that an important benefit to citizens is that it will increase the public's ability to Email City staff. ,She reported receiving several citizen complaints regarding the City's lack of Email capacity. Motion carried by the following roll call vote: AYES: Councilmember Smith, Libby, Ashiku, and Mayor Mastin. NOES: Councilmember Baldwin. ABSENT: None. ABSTAIN: None. MIS AshikulSmith to approve budget amendment to the 1998/99 budget-increasing account #100.1965.250.000 by $15,200 for Citywide Hardware/Technology Needs Assessment and Plan; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku, and Mayor Mastin. NOES: Councilmember Baldwin. ABSENT: None. ABSTAIN: None. Recessed: 8:23 p.m. Reconvened: 8:33 p.m. 10. NEW BUSINESS 10a. Report on City of Ukiah Low Income Energy Assistance Programs Customer Service Supervisor Archibald advised that this matter is being presented in response to Council's request for information regarding the City of Ukiah's Low Income Assistance Programs. The Programs were designed in response to SB 1890 which June 16, 1999 Page 11 of 16 established the Public Benefits Charge. One of the uses for this money is assistance to electric customers with Iow and moderate incomes. Customers have received benefits since November 1998, and since that time an increasing number of customers are being helped. In the first six months of the City of Ukiah's Low Income Program, the 229 households assisted represents more than four times the number of households assisted in the entire calendar year of 1997. The reason for the success of these Programs include more generous eligibility criteria and increased marketing to potential eligible citizens. Additional promotional activities are also under way. Finance Director Elton reviewed the basic eligibility criteria for the two programs. The Temporary Assistance Program is available for Iow income households that receive a notice of impending termination of electric service due to nonpayment of their bill. The Senior Discount Rate is available to seniors who are at least 62 years of age, whose total household income is within the income guidelines, and the service has to be in the name of the senior citizen. The eligibility levels for both programs is based on the net household income compared to 150% of the Federal Poverty Level. Staff has developed additional information related to Iow income households in Ukiah. The sources of these statistics were obtained from the 1990 Census, the 1999 North Coast Almanac, and the Salvation Army. From these statistics various interpretations or calculations were made to develop staff's statistics. He discussed wage eligibility levels. The statistics developed from the assistance provided to seniors during the month of May 1999, revealed that the average bill for 105 senior customers was $32.64, and 62% of the 105 customers had bills which were less than the average bill. This concluded that almost half of the customers assisted received a discount greater than 25% of their bill. If it is the intent of Council to have these Programs continue for an extended period of time, additional considerations need to be addressed. One area of consideration is the relationship of the benefits of eligible households to the funds available through the Public Benefits Charge. The charts which were distributed to Council provide projections that make two assumptions on the potential for the continuation of the Program with the existing funding that is scheduled for four years. He presented the charts to emphasis the idea that, since it is unknown what the ultimate demand will be for the Program, or if there will be any changes to the Program, the length of time that it can function is unknown. There are no statistics that can be referenced to determine what will happen in the future. The statistics available for Iow to moderate income households in Ukiah are not readily available. Based on this information, he recommended consideration of the viability of the Assistance Program be included during discussions of potential changes. He also recommended that before making any changes to the Program, it be allowed to continue as initially implemented in order to asses a full year's activity which will include the results of the increase and expanded marketing activity before making any changes to the Program. Councilmember Ashiku inquired when the AB 1890 expires, should the utility not have the ability to absorb the 2.8% fee, could the City lawfully be able to collect the money on the utility bills. Consideration should be made if the City lacks the ability to collect the funds. Acting City Attorney Johnson advised that he is unfamiliar with AB 1890 but will research Councilmember Ashiku's question. Councilmember Baldwin questioned if the City is committed to continuing the program after AB 1890 expires. He inquired how it would impact the debt reduction and banking program with regard to paying off the City's debts. Finance Director Elton advised that he discussed the matter with Public Utilities Director Barnes. He advised that the cessation of the 2.5% set aside funds was included in the plan that was presented at the recent Electric Utility Workshop. That money was included in the calculation as part of the funds that would be available for rate reduction. If that money were not made available for rate reduction but continued to be funneled into some type of assistance program, it would only serve to reduce the amount of money available June 16, 1999 Page 12 of 16 for rate reduction and thereby likely extending the date at which the City could reach market. Mayor Mastin was of the opinion that if the City only collected the funds through the year 2001, and if the Program was targeted to end when the City goes to market rate, that at that time the average electric bill will be approximately half of the existing bill. If that is the case, Council may determine at that time that no further assistance is necessary. City Manager Horsley was of the opinion that there will always be a need to provide assistance to some customers, especially those that lose their jobs or who are unable to pay their bills at all. She discussed staff providing payment arrangements for those customers who are unemployed and discussed application through the Assistance Program to help them with their bill. She advised this Program is offered once a year, whereas the REACH Program is offered once every two years. Finance Director Elton added that those individuals who qualify have to reach the point of receiving notice that their service is about to be terminated due to nonpayment. Councilmember Baldwin felt it is important to provide assistance to customers who are struggling, financially, and felt there should be maximum use of the funds to provide relief to those customers, and, if necessary, continue the program after the expiration date of the State mandate. He encouraged staff to research ways in which the City could maximize the current fund. He recommended research that focused on households with an annual income of $24,000 per year and to consider pursuing a series of rate reductions to those customers with a subsidy, such as 10% or 15%. However, it may be easier to provide a flat dollar rebate to the customers. Consideration of a two-tiered system, with up to $15,000 annual income qualifying for one level of subsidy, and then $15,000-$24,000 would qualify for another level of subsidy. If staff could provide this report by October 1999, it would give Council an opportunity to make the necessary changes to aid those customers needing assistance the most. Finance Director Elton advised that one of the difficulties of providing a report that includes information concerning the number of potential households, is the lack of data available. Staff was only able to find one source of data that indicated how many households in 1996 had income of less than $15,000. Mayor Mastin recommended staff contact the Ukiah Food Bank since they deal with a similar type of guideline for participants in their program. It was his understanding that they have the criteria broken down by City/County residence. This may provide the City with information concerning those individuals who are already participating in an assistance program. Finance Director Elton advised that with the short turn around for their current report, they did not have adequate time to complete an exhaustive study and search out other possible sources of statistics. City Manager Horsley advised that staff has inquired with the Dept. Of Social Services and Mendocin0 Private Industry Council (MPIC) for sources of data. Councilmember Ashiku felt that perhaps the question of the City's ability to lawfully charge a Benefits Charge after the expiration of AB 1890, should be researched. He noted that it has been suggested at this meeting that, in the future rather than continue to deposit some of the reserves into savings, perhaps 2.8% not be banked. He questioned whether this amount can lawfully be charged. Public Utilities Director Bames estimated them would be a delay of three to four months if the City continued to set aside 2.8% for Iow income assistance after the January 2002 expiration date. Mayor Mastin was of the opinion that if AB 1890 sunsets at 2001 for 2.8%, and the City June 16, 1999 Page 13 of 16 is entitled to collect an amount, the City could set the amount at a rate of its choosing depending on the needs of the existing program and the existing rate structure. Councilmember Baldwin recommended staff return with their report at Council's first meeting in October of 1999 concerning the feasibility of the City of Ukiah Rate Relief Program for all households reporting $20,000 yearly income or less. The rate of assistance could be at 5%, 10%, or 15% levels of reduction. This report should consider issues of cost associated with billing software, administrative staffing, and the impact of continuing this program beyond the State mandated date of January 2002. The option of a dollar rebate as opposed to one based on percentage should also be considered. Consideration of a two tiered rebate program for those households up to $15,000 and those between $15,000 and $24,000 should also be considered. This pertains only to the revenue collected under the Public Benefits Charge program. He anticipated that the new program would have an eligibility application process similar to the current program. He also encouraged the continuance of the Emergency Relief Program. He discussed the possibility of charging an administrative fee in association with the screening of applicants. Finance Director Elton reported that the City presently pays the Salvation Army an administrative fee for processing applications for assistance. Consensus of Council was to direct staff to pursue Councilmember Baldwin's recommendations with regard to research and the monitoring the assistance programs of the City, and to report back to the Council next Fall. Councilmember Ashiku suggested the appropriateness of forming a sub-committee consisting of two Councilmembers and staff to study the issue. Noting their interest in rate relief to customers, he inquired if Councilmembers Baldwin and Libby would consider serving on such a committee. City Manager Horsley advised that staff will pursue Councilmember Baldwin's recommendations. Councilmember Baldwin and Libby expressed interest in serving on such a committee. Mayor Mastin suggested that the committee be an informal ad-hoc committee that would meet with staff regarding this specific issue. 10b. Adoption of Resolutions Approving Agency-~tate Master Agreement for ~itate Funded Projects and Program ~upplements for the 1998 ~TIP Augmentation Projects Public Works Director Kennedy reported that effective May 17, 1999, the City's funding allocation request to the State Department of Transportation has been approved for its two 1998 STIP Augmentation Projects. Upon receipt of the funding allocation approval, a Notice Requesting Bids was prepared, mailed, and published. Bid openings for both projects have been set for July 14, 1999. The proposed projects are rehabilitation of local streets for a total estimated cost of $970,770. In order for the City to receive reimbursement for these funds, it is necessary for the City to enter into an agreement with the State. The Master Agreement and the Project Specific Program Supplement have not been received by staff as yet. He reported that the Master Agreement the State will provide the City should be very similar to the sample included in the Staff Report. He advised that Council's options regarding this matter consist of 1 ) Table the matter until the July 7, 1999 Council meeting when all documents have been received by staff, or 2) Adopt the Resolution approving the Agreement and authorize the Mayor to execute both the Master and Program Supplement pending staff's review of the documents. He reported that the State has very strict guidelines regarding how to proceed with this project and the Agreement will require the City to following those procedures. It will be his responsibility to ensure compliance of this project. He reported that this Agreement is non- negotiable, and the specific condition of the State Department of Transportation is that the City accept the State funds and abide by their guidelines. He anticipated receiving the June 16, 1999 Page 14 of 16 Agreements this week and stressed that time is of the essence. He anticipates award of the contract on July 21, 1999. Reimbursement of these funds will not occur until such time as the Agreeme.nt is signed by both the City and the State. He advised that he is anxious to receive Council's approval by July 7, 1999. MIS Ashiku/Baldwin adopting Resolution 99-47, approving and authorizing the execution of the Administering Agency -State Master Agreement No. 000049 for State Funded Projects; carried by the following roll call vote: AYES: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. MIS Ashiku/Baldwin adopting Resolution 99-48, approving and authorizing the execution of Program Supplement Numbers 0045 and 0046 to the Master Agreement No. 000049 for State Funding between the City of Ukiah (Administering Agency and the State Department of Transportation, pending staff's review of the documents; carried by the following roll call vote: AYES: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 11. CITY COUNCIL REPORTS Councilmember Smith had nothing to report. Councilmember Libby reported attending a meeting of MCOG and the Mendocino County Services Authority for Freeway Emergencies (SAFE). MCOG received the SAFE Call Box Program and adopted the SAFE implementation plan. This will be a five-year project and provides that 36 Call Boxes be installed. She reported that the Regional Transportation Planning Agency's budget was approved for 1999/2000 in addition to the establishment of the local process for the Transportation Enhancement Program. She attended the Sun House Guild fund-raiser for their new wing. She was also present for the Chamber of Commerce Community Champion Awards luncheon, which was very well attended. Today she attended a meeting of the Chamber of Commerce and reported they are working on the Fourth of July fireworks celebration. She advised that she is looking forward to participating in the Police Department Ride-Along Program this week. Councilmember Baldwin reported attending the Mendocino County Inland Water and Power Commission meeting along with Public Utility Director Barnes, City Manager Horsley, and Mayor Mastin this week. The Commission discussed what the Federal Energy Regulatory Commission (FERC) will do with the Potter Valley rate of diversion from the Eel River to the Russian River. Anew environmental impact statement may be reissued due to a controversy and a new proposal. The Commission discussed the possibility of buying the P.G.&E. Power Plant. They also discussed Park-Steiner's idea of a multi-million dollar canal around the north side of Lake Mendocino. This matter is losing support because the ranchers of Potter Valley are extremely concerned about the re-introduction of an endangered species into Potter Valley creeks. The project is very costly and if the da, m is raised, it will become more costly. He reported that effort to raise the level of the dam and increase the capacity of Lake Mendocino is gaining favor among the Commissioners. He recommended the matter be agendized for Council's consideration within the next 90 days in order to provide direction to him with regard to voting on whether to raise the level of Lake Mendocino. Councilmember Ashiku reported that LAFCO won't be meeting until August. Mayor Mastin reported that the first Concert in the Park had a record crowd, the band was great, and the weather perfect. He attended the California Conservation Corp Open House with City Manager Horsley and Community Services Director DeKnoblough. The Open House was to celebrate their salmon restoration program. 11. CITY MANAGER/DIRECTOR REPORTS City Manager Horsley reported that Executive Assistant Karen Yoast has been organizing June 16, 1999 Page 15 of 16 the Bar-B-Que in appreciation of all the Committees and Commissions of the City. She inquired of Council concerning their guest list. She advised that she has "Concerts in the Park" posters for each Councilmember. All of the old posters are being framed for posterity. She advised that Assemblywoman Strom-Martin will be in Ukiah visiting the Wards school site on June 18, 1999. Adjourned at 9:15 p.m. 12. CLOSED SESSION a. G.C. §54956.9{b){1)- Conference With Legal Counsel Regardin? Pending Litigation - Existing Litigation - 2 matters; Redwood Business Park v, City of Ukiah, Mendocino County Superior Court Case No, 77517 Redwood Business Park v, City of Ukiah. Mendocino County Superior Court Case No, 77252 No Action Taken. 12b. G.C. §54956,8 - Conference With Real Property Negotiator Assessor Parcel No. 180-110-06 Owner: Various Parties 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 11:12 p.m. to June 22, 1999 at 10:00 a.m. for the 1999/2000 Budget Hearing. Marie Ulvila, City Clerk June 16, 1999 Page 16 of 16