Loading...
HomeMy WebLinkAboutMin 07-07-99(2)MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, July 7, 1999 The Ukiah City Council met at a Regular Meeting on July 7, 1999, the notice for which had been legally noticed and posted, at 6:37 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. Staff present: Public Utilities Director Barnes, Airport Manager Bua, 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, and City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Councilmember Smith led the Pledge of Allegiance. a. PRESENTATION: John and ~usan Mayginnis Regarding Community Air Ms. Terri Sands, representing Community Air, read a prepared statement by John and Susan Mayginnis who regretted that they were unable to attend the meeting. They thanked the City of Ukiah for its approval of daily scheduled air service for the regional community and look forward to utilizing a terminal soon for their passenger operations. They had planned to begin operations in April 1999 but due to financially related delays, they have had to postpone their starting date. The air operations in Ukiah are primary to them and will begin service about one month after Community Air begins its air operations. Their commitment to the community is still in tact and they welcome interested individuals to tour their facility. 4a. APPROVAL OF MINI, ITE~ - Amended Minutes of Regular Meeting of May 19, 1999 MIS LibbylAshiku to approve the minutes of the Regular Meeting of May 19, 1999 as amended. Mayor Mastin requested clarification concerning his discussion with Public Utilities Director Barnes, as noted in the minutes. Councilmember Libby advised that the discussion related to the utility rate reduction, and Mayor Mastin had asked Public Utilities Director Barnes what the average bill was per month. After Mr. Barnes replied, Mayor Mastin stated that the rate reduction would amount to approximately $1.91 per electric bill. Councilmember Ashiku inquired if the amendment was derived from the tape recording. City Clerk Ulvila confirmed that the amendment reflects the tape recording. Motion carried by the following roll call vote: AYES: Councilmembers Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: Councilmember July 7, 1999 Page 1 of 14 Smith. 4b. MINUTES - Special Meeting of June 2, 1999 Councilmember Libby recommended a correction on Page 6, the second paragraph beginning with "Public Utilities Director Bames", and that the second sentence should read "...operating expenses that goes to the General Fund". Discussion followed concerning operating expenses related to Franchise Fees and the General Fund. There was conflicting recollection of the discussion as noted in the minutes. Consensus of Council was to direct the City Clerk to listen to the tape recording and amend the minutes accordingly. Councilmember Libby recommended a correction on Page 13, concerning her vote on the motion related to denying direct access to the City of Ukiah's Electric System. She advised that her vote was "No", not "Abstain" as indicated in the minutes. Councilmember Libby referred to Page 18, regarding the vote at the top of the page, and inquired if Mayor Mastin voted "No" on the matter of the formation of the Parks, Recreation and Golf Commission. Mayor Mastin advised that he had cast a "Yes" vote on the Motion. Councilmember Ashiku recommended a correction to Page 22, last paragraph, requesting that the third sentence be deleted. MIS MastinlAshiku approving the minutes of June 2, 1999, with recommended corrections; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 4c. MINUTE~ - Special Meeting of June 16, 1999 MIS AshikulLibby approving the minutes of June 16, 1999; carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 5. RIGHT TO APPEAL DECISION Mayor Mastin reviewed the appeal process. 6. CONSENT CALENDAR Councilmember Ashiku advised of a potential conflict of interest concerning item #g on the Consent Calendar since it relates to a lease with his brother, Mark Ashiku. He left the meeting at 6:49 p.m. MIS Smith/Libby approving Items a-g of the Consent Calendar as follows: a. Received Report of the Acquisition of Services from Mike Brown Electric Co. in the Amount of $6,992 for the Replacement of Traffic Signal Detector Loops; July 7, 1999 Page 2 of 14 b. Awarded Bid for Various Pole and Pad Mount Transformers in the Amount of $66,975.49 as Summarized in Report; c. Approved Notice of Completion for Construction of ADA Curb Ramps, Phase 3, Specification No. 99-03; d. Authorized Execution of Amendment No. 3 to the Service Agreement for Juvenile Work Program at Ukiah Solid Waste Disposal Site; e. Adopted Ordinance No. 1021 Amending City of Ukiah Code Section 2605 - Area of District, Modifying the Boundaries of the City of Ukiah Downtown Parking and Business Improvement District; f. Rejected Claim for Damages Received From Crawford's VC;R and Referred to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; g. Approved Lease With Mark Ashiku for a Portion of the Ukiah Regional Airport for the Construction of a Single Aircraft Storage Hanger. The motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, and Mayor Mastin. NOES: None. ABSTAIN: None. ABSENT: Councilmember Ashiku. 6:50 p.m. - Councilmember Ashiku returned to the meeting. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEM~ No one came forward to address the Council. NEW BUSINESS 9a. Council Approval of Resolution Making Appointments to the Airport Commission and the Planning Commission Councilmember Ashiku drew attention to the number of qualified applicants for the Planning Commission vacancy and entertained the idea of increasing the Planning Commission from five to seven members. Discussion followed concerning the process of amending the Ordinance to increase the Planning Commission from five members to seven members. Having each Councilmember appoint a Planning Commissioner was also discussed. MIS Ashiku/Baldwin Nominating Judy Pruden to the Planning Commission, carried by the following roll call vote: AYES: Councilmembers Baldwin, Ashiku, and Mayor Mastin. NOES: Councilmembers Smith and Libby. ABSENT: None. ABSTAIN: None. Councilmembers Smith and Libby expressed a need to see a change in the Planning Commission. MIS AshikulSmith Nominating Allen Rogina to the Airport Commission, carried by the following roll call vote: AYES: Councilmembers Smith, Baldwin, Ashiku, and Mayor Mastin. NOES: Councilmember Libby. ABSENT: None. ABSTAIN: None. July 7, 1999 Page 3 of 14 9b. Authorize the Mayor to Execute Exhibit A, Revision 2 to Contract 92-SAO- ;~0058 Between the City_ of Ukiah and the Western Area Power Administration Public Utilities Director Barnes reported that in 1996 the City of Ukiah entered into an agreement with the Western Area Power Administration to reduce the City's Contract Rate of Delivery from 8.773 megawatts to 4.917 megawatts. As a consideration of this reduction, the City of Ukiah has first call on any excess energy available from Western and now has the right to call back the reduction by giving Western notice. This will allow the City the opportunity to sell geothermal energy. The City will replace the geothermal energy by calling back its lay-off to Western resulting in a savings to the City of Ukiah of approximately $120,000 during the July to December time period. He advised that the savings will be a reduction in the purchase cost that we pay Northern California Power Agency (NCPA) and will reflect a smaller power bill. Councilmember Ashiku commended Mr. Barnes for running the Electric Utility like a business, and through his efforts the City may achieve market by the year 2006 or sooner. MIS Ashiku/Smith authorizing the Mayor to Execute Exhibit A, Revision 2 to Contract 92- SAO-20058 between the City of Ukiah and the Western Area Power Administration, carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, ^shiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. PUBLIC HEARING 8a. Adoption of Resolution Revising Capital Improvement Fees for the Airport Industrial Park (ALP) - Continued from June 16, 1999 Public Works Director Kennedy reported that the Public Hearing has been continued from the June 16, 1999 City Council meeting. He introduced Steve Weinberger of Whitlock & Weinberger W-Trans who have been responsible for the completion of several reports that they prepared in support of Capital Improvement Fees as well as other projects for the City. Mr. Weinberger is an expert traffic engineer. He advised that staff is proposing a revision to the Capital Improvement Fees, which are currently imposed on vacant parcels of land within the Airport Industrial Park upon their development. He described the boundaries of the Airport Industrial Park, which consists of three portions: the Redwood Business Park, Airport Business Park, and the Norgard Vineyards. He explained that the Capital Improvement Fees are used to pay for proposed improvements to three intersections which will be impacted by development within the Park as described in the Environmental Impact Report, prepared for the Redwood Business Park and the Airport Business Park. Due to changed conditions, circumstances, and engineering assumptions, it is his recommendation that it is necessary to revise the current Capital Improvement Fee Schedule. He identified and discussed the five major changes: 1. Extend the widening of Talmage Road from the Highway 101 southbound off ramp to Airport Park Blvd. 2. Issues subject to compromise for the purpose of the settling of a legal dispute. He explained that Gary Ackerstrom has filed a Petition to a Writ of Mandate with the Mendocino County Superior Court and litigation is pending the outcome of this Public July 7, 1999 Page 4 of 14 Hearing. 3. More detailed analysis of developable lands within the Airport Business Park. 4. The City has completed a portion of Mitigation 2, as described on page 46 of the Redwood Business Park EIR. At a cost of $5,616, the City completed the signalization work necessary to create a second left turn lane on northbound Airport Park Boulevard. 5. Complete development within the Airport Industrial Park to occur in the year 2004 in lieu of the previous assumption of the year 2002. He continued with detailed discussion of each item and explained recommendations of Caltrans, Mr. Ackerstrom's concerns, and staff's analysis. Discussion followed concerning the proposed widening of Hastings Avenue at South State Street and the City's proposal to acquire the Lanz property at 1195 South State Street to accommodate the proposed widening. He discussed the appraisal of the property. In analysis of the property and in consideration of safety concerns, he recommended that the entire parcel be acquired and the existing structure be demolished. Additional information is needed in order to assess the current proposal to acquire only a portion of the property. He discussed acquisition cost, the estimated capital improvements and other contingencies involved in determining the future worth of the property. He explained that since the inception of the Airport Industrial Park Capital Improvement Fee, fees from five projects have been paid totaling $102,278.93. If the revised Capital Improvement Fees are adopted, the amount of $65,857.50 will need to be refunded to the respective developers. Interest on the amount refundable has also been included in the amount refundable. He explained that the law requires the City to reimburse the developers their money, including interest. A revised Resolution was distributed to Council in which Mr. Kennedy discussed recommended changes. Correspondence received from Mr. Ackerstrom was discussed as it relates to the project. Considerable discussion followed concerning traffic counts in the Airport Business Park area, which included Talmage Road and the saturation flow rate of 800 vehicles per day utilized in the level of service calculations for the Hastings and State intersection. It was his opinion that the proposal he submitted to Council cuts the estimated dollar amount too close and recommended Council direct staff to calculate other estimates, make necessary modifications, do not include mark up of land acquisition, set aside funds for legal fees, and make an allowance for relocation expenses. In response to an inquiry by Councilrnember Baldwin if $15,450 is sufficient to create another west bound lane from Highway 101 to Airport Park Boulevard on Talmage Road, Mr. Kennedy advised that this money is designated for the traffic signal loops. Councilmember Baldwin drew attention to the Hastings Avenue land acquisition and related costs of $3,300, as noted on page 6 of the Staff Report, whereas on page 4 it denotes a cost of $6,000. Mr. Kennedy explained that $6,000 relates to the cost of land July 7, 1999 Page 5 of 14 and $3,300 relates to legal fees and associated costs. Public Hearing Opened: 7:50 p.m. Gary Ackerstrom, representing Redwood Business Park, advised that the current Capital Improvement Fee prompted him to file suit. He explained that the biggest problem concerning the fees relates to Hastings Avenue and the consultant's calculations of the Level of Service (LOS). He discussed this in detail. When the LOS at Hastings Avenue was calculated, it was given a capacity of 800. He discussed the proposal of adding an additional lane, and noted that instead of revising the 800 calculation and upgrading it to 1700, which was used on other intersections, it was left at 800. He felt this represented an error which caused a need to add two more lanes and required acquiring the Lanz property. By not changing the 800 to 1700 due to the additional lanes, it compounded it into a half million dollar error. He discussed the Talmage Road/Airport Park Boulevard intersection. He noted Caltrans concern with west bound traffic on Talmage Road merging with south bound traffic on Highway 101 at the Talmage off ramp, prior to getting to the left hand turn lane at Airport Park Boulevard. He expressed concern that if traffic is allowed to progress in a widen stream to Airport Park Boulevard, it would be reintroducing that same motion as existed prior to Talmage Road being reconfigured. If the phasing of the signal is adjusted, an achievement of LOS "C" can be obtained, without any changes in configuration. This is one of the reasons why he felt the merge lane shown in the Capital Improvement Fee is advantageous to that which is being proposed on Talmage Road. He also expressed his concern with including some of the engineering fees and studies, which were flawed, causing him to file the law suit. He noted that the last traffic study was #6, the current proposal is version #9, and felt it is still not correct. Public Hearing Closed: 8:04 p.m Considerable discussion followed concerning the current Capital Improvement Fees compared to the proposed fees. Mr. Kennedy summarized that there are unknown factors concerning infrastructure improvements necessary for the build out of Airport Business Park. He was of the opinion that as the last few projects were built in the Park, there may be increased traffic compared to what was estimated, resulting in more delays at the impacted intersection. He advised that the law requires that if you build a project and have fees remaining, you must reimburse those fees to the current property owner, plus interest. Unfortunately, the reverse is not true. His biggest fear is that if the City under estimates or has less fees than what is needed, it cannot go back and reassess the property owner. In response to an inquiry by Councilmember Baldwin concerning the relevance to the ultimate built out in relation to what the City will have to construct anyway, Mr. Kennedy explained that if the area builds out sooner and completes all the improvements, the City will not have enough money. We need to wait until the year 2004 for the build out to be complete because we also need to accumulate $320,000 and its interest earned. The July 7, 1999 Page 6 of 14 objective is to have enough money accumulated when the Park is built out to complete the necessary improvements. Thera was discussion conceming many unknown cost factors related to the infrastructure of the streets involved in this matter. The matter of property acquisition and related costs was discussed at length. Caltrans recommendations related to the Wal-Mart EIR was also discussed. City Attomey Rapport advised that the City cannot use the off site Capital Improvement Fee to pay for improvements necessary after the built out occurs, however, the City could establish assessment districts. It is a different type of imposition charged on the property and collected through the property taxes. The assessment could be stopped by a majority protest and noted there are difficult procedures involved. Once a project is constructed and the capital improvement fees in affect at the time are paid by the developer, the City cannot go back and require the developer to pay more. Those fees are collected at the time the Building Permit is issued. Discussion ensued concerning the impact on taxpayers should the project assessment fall short of the actual cost for infrastructure improvements. Steve Weinberger, consultant with Whitlock and Weinberger W-Trans, discussed the impact fees for other cities and advised that the fees estimated for this project are Iow in comparison. He discussed his traffic analysis and related information concerning traffic trip counts. In discussion with Councilmembers, he provided information related to the Hastings Avenue improvements and expansion, and expressed his opinion that the Talmage Road/Airport Park Boulevard intersection estimated costs should be more conservative. He was of the opinion that, without adequate circulation, it would make the shopping center in Airport Business Park less attractive. City Attorney Rapport summarized Mr. Kennedy's concerns with the proposal before Council conceming the amount of money that is included for land acquisition, and whether the City would prefer a two lane or three lane project. The other issue of concern is that Mr. Kennedy feels there are insufficient funds for land acquisition and related costs. However, there is no evidence before Council on which to base a different figure. He concurred with Mr. Kennedy in that there is a potential for severance damage claims. He also discussed legal fees and related expenses, noting that the cost depends on the amount of opposition to the project. He discussed the full condemnation process and noted that additional funds should be allocated. On the other hand, if the proposal is under negotiation, the costs proposed could be adequate. Council and staff continued their discussion related to the City Attorney's observations on the matter. MIS AshikulSmith to refer the matter back to staff with direction to examine the concept of severance fees and fees associated with the land acquisition on Hastings Avenue, for July 7, 1999 Page 7 of 14 further analysis only, and for staff to provide a revised schedule. There was discussion of whether to continue the matter. City Attorney Rapport advised if the only revision to the proposal presented to Council at this hearing involves revising the estimate for land acquisition costs and legal fees, in order to obtain additional information to support a reliable figure, it was his opinion that the Public Hearing could be continued and allow the additional evidence to be presented at that time. Public Works Director Kennedy explained that he would like to work with the City Attorney concerning the matter. Mr. Rapport was of the opinion that a new appraisal would not be needed, however, staff may want to consult with the appraiser regarding a revision to the proposal of only taking a strip of the land, and how he would evaluate severance damages in that case. MIS AshikulSmith amending previous Motion to continue the Public Hearing to August 4, 1999 and directing Staff to provide additional information and to return to Council with a revised estimate, carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. Recessed: 8:35 p.m. Reconvened: 8:45 p.m. PUBLIC HEARING 8b. Consideration of Proposed Reduction to Certain Landfill Tipping Fees and Adoption of Resolution Revising Portions of Resolution No. 99-06 pertaining to Ti_oping Fees Charged for Com_oacted and Loose Refuse Delivered to the Ukiah Landfill Public Works Director Kennedy reported that staff is proposing a reduction in tipping fees at the Landfill to reflect a reduction in the Mendocino Solid Waste Management Authority's (MSWMA) Surcharge. Effective July 1, 1999, the City is seeing its second reduction in this Surcharge since July 1, 1998. Subsequent to the first reduction, all tipping fees charged for refuse landfilled at the Ukiah Landfill were reduced accordingly except for the commercial compacted rate of $63.00 per ton charged to the City of Ukiah's franchised collector and the loose rate of $12.65 per cubic yard charged to all customers within the "old service are." He reviewed tipping fees, compacted rates, and reduction in fees during the past three years. He recommended that the adjusted tipping fees be effective on August 1, 1999, in order to facilitate billing cycles. He referred to a modification to the Resolution, paragraph "B6" which should read $12.50 per "yard", not "ton". Public Hearing Opened: 8:52 p.m. July 7, 1999 Page 8 of 14 No comments received. Public Hearing Closed: 8:52 p.m. MIS Baldwin/Ashiku adopting Resolution No. 2000-01 revising portions of Resolution No. 99-06 pertaining to Tipping Fees charged for compacted and loose refuse delivered to the Ukiah Landfill. In response to an inquiry by Councilmember Libby if the reduction is equivalent to approximately $10,000 per year, Mr. Kennedy responded affirmatively and explained that the reduction is to the City's hauler on an average of 10,000 tons per year by Solid Waste Systems. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None PUBLIC HEARING 8c. Adoption of Resolution Establishing the ~chedule of Fees and Rates for Garbage and Recycling Collection ~ervices; Revision to Garbac~e and -- Recycling Collection ~ervice Agreement; and One-Time Payment to ~;olid Wastes Systems Assistant City Manager Flad explained that the contract between the City of Ukiah and the Solid Wastes Systems calls for automatic rate increases for Consumer Price Index (CPI) increases, based on 75% of the CPI increase each year, in addition to a rate review every three years. It has now been three years since the last rate review. City staff and two Councilmembers have been meeting with Jim Salyers and John Warren over the past six months reviewing their financial audit, City's operations, and the operations of Solid Waste Systems. A recommendation of a 2.98% increase of both residential and commercial rates was recommended by the negotiation team. Additionally, a lump sum in the amount of $71,373.52 was recommended to be paid to Solid Waste Systems as a one-time payment. Staff is also requesting authorization to begin a Pilot Program for the commercial billing process to be taken over by Solid Waste Systems. He discussed consumer use of garbage cans and the increased trend to recycle more. He provided an overview of the proposed increase in garbage and recycling service rates. The proposed rate adjustment and payment have been determined to be an essential and equitable way of asking all customers to share in meeting the City's contractual obligation with it's solid waste collection service provider, and in managing the issues of escalated solid waste and recycling costs. He reported that residential and commercial rates within Ukiah remain the lowest in the County and well below the County-wide average collection rate. He advised that the proposed debris box increase is recommended in order to cover the contractor's equipment and operating costs. He recommended that a 2.98% increase be made to all residential and commercial garbage and recycling collection rates effective July 18, 1999, in addition to a payment to Solid Wastes Systems, Inc., from the Disposal Site Operations Fund in the amount of $71,373.52. He discussed the matter. He discussed rate reduction components and rate corrections. July 7, 1999 Page 9 of 14 City Manager Horsley commended staff for their research and the development of solutions on the matter. With regard to the Pilot Program for billing services, she felt customers will find a more immediate response to their complaints and concerns under the Pilot Program. Public Hearing Opened: 9:02 p.m. No comments received. Public Hearing Closed: 9:02 p.m. Discussion of the contract and analysis followed. Staff and Council reviewed the City's billing system with regard to garbage collection and benefits to customer service. In response to an inquiry by Councilmember Libby concerning the increase rate in dollars, Mr. Elton advised that the CPI of 2.33% generates $3,486 per month. He discussed the process used to determine that amount. He advised that the Franchise and Billing Fee of .7% amounts to $1,047.54, and the 1.36% Third Year Renewed Rate amounts to $2,035.08. The 1.41% will be subtracted, amounting to $2,169. It was noted that these figures also reflect the Tipping Fee reduction. The total equals $4,400.61. MIS AshikulSmith Adopting Resolution No. 2000-02 establishing the schedule of Fees and Rates for Garbage and Recycling Collection Services for the 1999~2000 Fiscal Year; establishing a Pilot Program for Solid Wastes Systems Administration of the Billing and Collection of Commercial Accounts; authorizing a one-time payment to Solid Wastes Systems; authorize payment in the amount of $71,373.52 to Solid Wastes Systems, Inc. from the Disposal Site Operations Fund (Fund No. 660), and to authorize the City Manager and City Attorney to revise the contract with Solid Wastes Systems, Inc., establishing a pilot program for Solid Wastes Systems administration of the billing and collection for commercial accounts; carried by the following roll call vote: AYES: Councilmembers Smith, Baldwin, Ashiku, and Mayor Mastin. NOES: Councilmember Libby. ABSENT: None. ABSTAIN: None. Councilmember Libby stated for the Record that a vote for an increase in garbage rates would be a vote for an increase in the Franchise and Billing Fee, which she objected. Therefore, she cast a "No" vote on the Motion. NEW BUSINESS 9c. Approval of Use of Community Development Commission {Fund #335) Monies for Low Interest Housing Loans and Corresponding Budget Amendment Risk Manager/Budget Officer Harris discussed the proposal from Rural Communities Housing Development Corporation (RCHDC) for use of Fund #335. Money in this fund are repayments for rehabilitation loans which were originally secured through a Community Development Block Grant Program (CDBG) in the 1980's. In 1997, RCHDC was granted a $106,000 loan to help with property purchase and infrastructure improvements on the Doolan Creek Project. That was a two-year loan which is to be repaid this year. After July 7, 1999 Page 10 of 14 repayment of the loan, RCHDC would like to utilize $80,000 for second loans to the same home owners in that project to further assist them to qualify for the Federal Housing and Urban Development Department (HUD) funds that are part of this project. The use of funds in that matter are very consistent with the reuse requirements for CDBG. He discussed the loan payments, interest rate, the criteria for qualification, and the terms of the loan. Because staff did not know the specifics of the proposal when the Fiscal Year Budget 1999/2000 was approved, he is recommending a Budget Amendment, and noted that the Revenue should be $109,180 instead of $80,000 which is noted in the Staff Report recommendation. He advised that there is still a considerable fund balance to accommodate the proposal. No General Fund monies are involved with this proposal. In response to an inquiry by Councilmember Baldwin concerning deed restrictions on the loans, Mr. Dwayne Hill, Executive Director of RCHDC, advised that the families can sell their home any time they want, to whomever and at the price of their choosing. However, U.S. Department of Agriculture (USDA) takes back a portion of the profit that the family makes from the sale of the home in order to repay the government subsidies and other costs which the government has invested in the development. In response to an inquiry by Councilmember Libby concerning the balance in the fund once the loan payment is made, Mr. Harris advised that there would be approximately $60,000 remaining in the fund. He advised that in addition to RCHDC's loan, there are some minor individual loans which are being repaid as rehabilitation loans, totaling approximately $4,000 annually. MIS Libby/Ashiku approving use of $109,180 of Fund #335 for Low and Moderate Income Housing Loans, authorize City Manager to execute necessary loan documents, and approve amendment to 1999/00 budget increasing Revenue Accounts 335.0700.503.XXX and Expenditure, Account 335.4710.680.000 by $80,000 each, carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 9d. Adootion of Resolution in ~upport of the "Fair Competition and Taxpayers Savings Act" Initiative and Legislation Public Works Director Kennedy advised that the Taxpayers for Fair Competition are asking the City to support their continued battle against the Public Engineers in California Government (PECG). Of particular concem to cities, counties, and special districts is that it could roll over into their projects that utilize Gas Tax Funds. He expressed his opposition to State Engineers designing the City's projects. He discussed a recent Supreme Court ruling that the California State Constitution does not allow state government to contract with private design firms to do state projects. Taxpayers for Fair Competition are attempting to change the Supreme Court opinion by either laws or the initiative process. By adopting the letter of support, Council would be indicating their supportive of "The Fair Competition and Taxpayers Savings Act" and it would authorize the Director of Public Works/City Engineer to sign the letter of support and to act as the City's contact person concerning the pending initiative and legislation. July 7, 1999 Page 11 of 14 MIS AshikulLibby adopting Resolution No. 2000-03 in support of "The Fair competition and Taxpayers Savings Act" initiative and legislation. Councilmember Baldwin expressed his dismay at not receiving information concerning both sides of the issue. For that reason, he will abstain from voting on the matter. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: Councilmember Baldwin. 9e. Ado_r)tion of Resolution Approving Administering Agency - State Master Agreement for Federal-Aid Projects, and Approve Budget Amendment in the Amount of $212,000 Public Works Director Kennedy advised that last year the City of Ukiah received notice that its candidate project for federal funding under the Hazard Elimination Safety (HES) Program of the Federal Highway Transportation Act was selected for funding in the 1999/2000 program year. The City's candidate HES project is the Traffic Signalization Upgrade for the Gobbi Street and State Street intersection. Funding in the amount of $212,000 for preliminary engineering design and inspection was approved by the state. Authorization to proceed with the preliminary engineering phase has been given and federal funds up to a maximum of $18,500 are available for reimbursement for this phase of the work. He requested a Budget Amendment in the amount of $212,000 and explained that he did not include the amount in the 1999/2000 Budget. He noted that the project is 100% federally funded. MIS Baldwin/Smith adopting Resolution No. 2000-04 approving and authorizing the execution of the Administering Agency-State Agreement for Federal-Aid Projects, Agreement No. 01-5049; and approving amendments to the 1999/2000 budget increasing revenue Account No. 250.0600.488.01, and expenditure Account No. 250.9815.800.01 by $212,000 each. Discussion followed concerning the steps which need to be taken in order to receive reimbursement. Motion carried by the following roll call vote: AYES' Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None. 9f. Approve ~ole ~ource Procurement and Award Construction Contract to URETEK USA, Inc., For the Completion of the Repair to ~tate Street at a Compensation Not to Exceed $26,000 Public Works Director Kennedy advised that Staff is requesting a Sole Source Procurement and the award of a construction contract to Uretek USA, Inc. For the completion of the repair work to State Street from Henry Street to Low Gap Road. It is proposed that the undersealment not completed in the previous work be performed on a time and expense basis not to exceed $25,550 utilizing the unit prices of $6.40 per pound July 7, 1999 Page 12 of 14 of URETEK undersealment polyurethane and $595 per day for traffic control. He described the process involved to complete the project. An estimated $26,000 of undersealing remains to be completed, which is included in the current budget. Discussion followed concerning the process of filling in cavities under the roadway. MIS Ashiku/Baldwin approving Sole Source Procurement and award construction contract to Uretek USA, Inc., for the completion of the repair to State Street at a compensation not to exceed $26,000. In response to an inquiry by Councilmember Libby concerning negotiating with the contractor on the project to reduce the cost, Mr. Kennedy advised that he returned to Council twice to receive approval for additional funds for the project, and was able to obtain the lower price for the project. He discussed traffic control procedures and noted that by having the contractor provide traffic control, it freed the City of liability and of utilizing existing staff for the project when they are needed elsewhere. He discussed the contractor's work hours to accommodate businesses. Liability insurance and other issues were discussed. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN' None. 9g. Approval of Employment Agreement with Landfill Employees for ~;taff Retention Throuah Scheduled Closure Date of Ukiah Landfill -- City Manager Horsley advised that the matter is scheduled for Closed Session, however, Council has the option to resolve the matter at this time. She advised that there are at least seven employees involved. MIS Ashiku/Baldwin approving Employment Agreement with Landfill Employees, carried by the following roll call vote: AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES' None. ABSENT: None. ABSTAIN: None 9h. Approval of ~ettlement Agreement between Redwood Business Park and the City of Ukiah No action taken. 10. CITY COUNCIL REPORTS Councilmember Smith reported attending the meeting of the Main Street Program on July 1, 1999 and they are thrilled with their agreement with the City. They are proceeding with the process of selecting a new Executive Director. The Treasurer's Report indicated a net income of $5,424.74 for the year ending July 1, 1999. Councilmember Libby reported attending the Ukiah Unified School District Site Committee meeting and Assemblywoman Virginia Strom-Martin was in attendance. They are continuing their pursuit of funding for the school site. She also attended a presentation July 7, 1999 Page 13 of 14 of awards and reception hosted by Senator Chesbro for students in Mendocino County who were picked to go to an art academy. Councilmember Baldwin had nothing to report. Councilmember Ashiku had nothing to report. Mayor Mastin reported that he also received a invitation to the awards presentation that Councilmember Libby attended. He also attended the School Site Committee meeting but left when he realized there was a quorum of Councilmembers present. He discussed the Commission Appreciation event at Todd Grove Park which was enjoyed by those attending. 11. CITY MANAGER/DIRECTOR REPORTS City Manager Horsley reported that Kristy Kelly was thrilled that Council decided not to pursue the flag project and to allocate that money toward community based organizations. 9:45 Adjourned to closed session. 12. CLOSED SESSION a. G.C. §54957.6 -Conference With Labor Negotiator Employee Unit: Fire Unit Negotiator: Candace Horsley No action taken. b. G.C. §54957,6 -Conference With Labor Negotiator Employee Unit: Police Unit Negotiator: Candace Horsley No action taken. c. G.C, §54957,6 -Conference With Labor Negotiator Employee Unit: Miscellaneous Unit Negotiator: Candace Horsley Matter discussed in open session, Item #9g. d. G.C. §54956.9(b)(1) -Conference With Legal Counsel Regarding Pending Litigation - Existing Litigation - 2 matters; Redwood Business Park v. City of Ukiah, Mendocino County Superior Court Case No. 77517 and Redwood Business Park v. City of Ukiah, Mendocino County Superior Court Case No. 77252 No action taken. 13. ADJOURNMENT There being no further business, the meeting was adjourned at 11:40 p.m. Marie Ulvila, City Clerk July 7, 1999 Page 14 of 14