HomeMy WebLinkAboutMin 11-03-99MINUTES OF THE UKIAH CITY COUNCIL
Regular Meeting
Wednesday, November 3, 1999
The Ukiah City Council met at a Regular Meeting on November 3, 1999, the notice for
which had been legally noticed and posted, at 6:30 p.m. in the Civic Center Council
Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following
Councilmembers were present: Smith, Libby, Baldwin, Ashiku (arrived at 6:33 p.m.) and
Mayor Mastin. Staff present: Public Utilities Director Barnes, Finance Director Elton,
Assistant City Manager Flad, Risk Manager/Budget Officer Harris, MIS Coordinator
Klingbeil, City Attorney Rapport, Planning Director Sawyer, Deputy Public Works Director
Seanor, Senior Planner Stump, and City Clerk Ulvila.
2. PLEDGE OF ALLEGIANCE
City Clerk Ulvila led the Pledge of Allegiance.
APPROVAL OF MINUTES:
3a. Regular Meeting of October 20, 1999
Councilmember Libby noted a correction to page 5 of 16, Item 8e, first paragraph to
read: "Councilmember Libby advised of a possible conflict of interest regarding the matter
since her residence is located within 2,500 feet of the project."
City Clerk Ulvila noted a correction to page 13 of 16, first paragraph regarding the vote
on approval of the October 6, 1999 minutes, that the Motion should read: "MIS
Baldwin/Ashiku approving the Minutes of the Regular Meeting of October 6, 1999 as
presented; carried by the following roll call vote: AYES: Councilmembers Smith, Baldwin,
Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: Councilmember
Libby."
MIS Smith/Libby approving the Minutes of the Regular Meeting of October 20, 1999 as
corrected; carried by the following roll call vote: AYES: Councilmembers Smith, Libby,
Baldwin, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: Councilmember
Ashiku
4. RIGHT TO APPEAL DECISION
Mayor Mastin read the appeal process.
.5. CONSENT CALENDAR
MIS Smith/Libby approving Items a through c of the Consent Calendar as follows:
a. Rejected Claim for Damages Received From Lorelei Goodin and Referred to the Joint
Powers Authority, Redwood Empire Municipal Insurance Fund;
b. Received Notification to Council of Completion of Emergency Replacement of the
Sewer Main on East Gobbi Street Within the Ukiah Valley Sanitation District;
c. Approved Notice of Completion for Street Striping 1999, Specification No. 99-10.
The Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby,
Baldwin, Ashiku, and Mayor Mastin. NOES: None. ABSENT: None. ABSTAIN: None.
November 3, 1999
Page 1 of 12
6. AUDIENCE COMMENTS ON NON-AGENDA ITEM~;
Mary Hiatt, proprietor of Wildberger's Market, located at the corner of Standley and School
Streets, advised that she has received an eviction notice effective November 15, 1999.
She has no rental or lease agreement with her landlord and is concerned that the building
will deteriorate or be demolished by the current owners upon her absence. The grocery
store has been in operation for 102 years and has historical significance. She made an
emotional plea to the City Council to consider designating the building as an historical
landmark and to take into consideration eminent domain proceedings. She also suggested
the City could pursue Redevelopment funding to acquire the building. If the City could
purchase the property, they could then lease it to someone who would continue operation
of the grocery business. She noted that the store is one of only a few "mom and pop"
stores left in the community.
There was an exchange of dialog between Council and Ms. Hiatt concerning the status of
the building and options available to the City.
Joseph Bishop spoke in support of Ms. Hiatt's plea to Council of preserving the building
as a grocery store. He was of the opinion that the current owners will allow the structure
to become another Palace Hotel and deteriorate further.
Consensus of Council directed Staff to look into the matter of Wildberger's Market and
provide Council with options available, including those with the Ukiah Redevelopment
Agency, with regard to the historical significance of the structure, eminent domain
proceedings, and the option of the City purchasing the property and that Staff report back
to Council at their next meeting.
UNFINISHED BUSINESS
7a. Adoption of Ordinance Amending Airport Industrial Park Planned
Development
Senior Planner Stump advised that on October 20, 1999, the City Council considered a
number of proposed amendments to the Airport Industrial Park Planned Development
Ordinance, and after conducting a Public Hearing and discussing the matter at length,
voted 4-1 to introduce the Ordinance. He discussed the modifications directed by Council,
as noted in the Staff Report and recommended adoption of the Ordinance.
MIRC Ashiku/Libby adopting Ordinance No. 1024, Amending the Airport Industrial Park
Planned Development; carried by the following roll call vote: AYES: Councilmembers
Smith, Libby, Ashiku, and Mayor Mastin. NOES: Councilmember Baldwin. ABSENT:
None. ABSTAIN: None.
9b. Approval of Stock Transfer - ,~olid Waste Systems, Inc,
City Attomey Rapport advised that James and Deana Ratto, owners of controlling stock
in Solid Waste Systems, Inc., are reorganizing their business interests for estate planning
purposes which involves creating a holding company called the Ratto Group. The Ratto
Group will exchange its stock for the stock of all the companies that the Ratto's currently
own, including Solid Waste Systems, Inc. Under the franchise agreement, if there is a
November 3, 1999
Page 2 of 12
transfer of a controlling interest in the stock of Solid Waste Systems, Inc., it requires City
Council approval. The reorganization will not change the control of Solid Waste Systems,
Inc. and the Ratto's will continue to hold all of the voting stock of the Ratto Group. The
Ratto's will retain control of Solid Waste Systems, Inc. but will no longer own the stock
directly. Because the matter does not result in a change of control, Mr. Rapport
recommended Council approve the transfer based on the accuracy of the representations
in the letters from the attorney representing the Ratto's, Mr. Williams, and that any future
stock transfer would result in a change in ownership, would also require Council' approval.
With regarding to liability, he advised that Solid Waste Systems, Inc. will remain a
corporation and is still separately liable for its debts, as it is now. The transfer will not
change Solid Waste Systems, Inc. and it will remain a corporation that has a contract with
the City to act as the City's franchise waste hauler. The stockholders are not liable for the
debts of the corporation. He explained that the Ratto's will retain personal title to all the
voting stock in the holding company according to their attorney. He continued with a
discussion of possible purposes of establishing a living trust.
Jim Saylors, president of Solid Waste Systems, Inc., advised that, to his knowledge, there
are is no pending litigation against the Ratto's at this time. He explained that the purpose
of the beneficial family trust is based on estate planning for the Ratto family assets.
MIRC Baldwin/Ashiku approving the reorganization based on the accuracy of
representations in the letters dated October 18 and 28, 1999 from the attorney R. Richard
Williams, representing the Ratto's, and that any future stock transfer resulting in a change
in ownership would also require Council approval, and authorizing the City Attorney to
notify the Ratto's of Council's approval on the matter; carried by the following roll call vote:
AYES: Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None.
ABSENT: None. ABSTAIN: None.
PUBLIC HEARING
8a. A_o_olication to Demolish a Residential ,~tructure and Barn Over 50 Years Old
Located at 595 Brush ~treet
Planning Director Sawyer advised that the owner of a vacant single family residential
structure and barn located at the 595 Brush Street have applied for a Demolition Permit.
Findings of the Demolition Permit Review Committee found that neither structure is
historically or architecturally significant. Based upon that recommendation, staff is
recommending Council approval on the Demolition Permit.
7:02 p.m. - Public Hearing Opened.
No one came forward.
7:02 p.m. - Public Hearing Closed.
Mr. Sawyer explained that the original Demolition Permit application was amended to
include the barn, due to an oversight by the applicant. There had been some confusion
as to whether the applicant wanted to demolish one or both structures, therefore two
meetings of the Demolition Permit Review Committee were held. The applicant would like
to have both structures burned by the Fire Department.
November 3, 1999
Page 3 of 12
MIRC Smith/Ashiku approving Demolition Permit of a residential structure and barn over
50 years old located at 595 Brush Street; carried by the following roll call vote: AYES:
Councilmembers Smith, Libby, Baldwin, Ashiku, and Mayor Mastin. NOES: None.
ABSENT: None. ABSTAIN: None.
7b. Receipt and Discussion of Ci _tywide Hardware/TechnoloQv Needs Assessment
__
and Plan
Finance Director Elton advised the Citywide Hardware/Technology Needs Assessment
and Plan (Report) is the result of a contract issued in June of this year to Integrated
Technology Partners (ITP). This report contains the framework in which the City's internal
and external communications will be based. He introduced Paulette Klingbeil, who is the
staff person responsible for coordination of this project and who will be the key person
charged with implementing this plan. He also introduced Bryan Morgan, President of ITP.
Bryan Morgan, President of ITP, advised that ITP's initial concept was to come to the City
without any idea of what the City has and to interview people from different departments,
in order to compile a plan. He referred to the Report section that summarized needs
assessment by Department. They realized that the plan would be very huge if they
addressed every issue of each Department. He and his team compiled over-all concepts
and five plans that are tied into each other and independent of each other as well.
The vision of the City should be to provide a high level of service to residents of the City
of Ukiah. This would be accomplished by creating a seamless network of communications,
telecommunications, etc. in order to talk to any Department without any barriers. Upon
interviewing the Departments, ITP found that the City, at this time, does not have any
major infrastructure. He discussed the nine remote areas of computers, which are not
connected to the main site and cannot communicate with each other. In the Fire, Police,
Dispatch, and Administration sections of City Hall, each have individual networks of their
own, but are not tied to each other and cannot share information. This is a major structure
flaw. ITP also found that the City's Internet activity is through dial up modems which are
spotted throughout the Administrative building and the Fire and Police Departments.
ITP found that the aging AS/400 has an outdated billing system. The system works but
does not have the Windows type interface which is more intuitive and user friendly to staff.
The existing AS/400 has served the City since its procurement in 1991 and has had a hard
drive failure. There is no centralized information system for the whole City. Networks
have been established in the Fire, Police and Dispatch Departments, however, they are
not centralized with the Administrative building of City Hall. He discussed the five plans:
Plan I: Create an infrastructure which will connect all computers to each other.
Plan 2: Replace the aging AS/400 with new technology and application architecture
AS/400.
Plan 3: Combine all servers in the Administration building into one room to form a
Central Data Center.
Plan 4: Acquire software that completely integrates all financial applications and all
municipality management applications under the A$/400 platform.
Plan 5: Move all servers from Police/Fire/Dispatch to a Central Data Center and connect
major wire closets with fiber optics to form a high-speed backbone.
November 3, 1999
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A dialog followed between Mr. Morgan, Council, and staff concerning the costs associated
with each Plan and how the over-all Plan can be completed in phases. Discussion of a
local area network which may include the Airport, Golf Course, and other remote locations
followed. It was noted by Mr. Morgan that each site would cost approximately $39 to
maintain access on a monthly basis. He continued with discussion of associated .costs for
establishing remote communications. Mr. Morgan estimated that the hardware should last
about five years.
Mr. Elton pointed out that the $315 monthly maintenance cost would be less than what the
City is currently paying. He discussed savings by going to a lower cost maintenance
system. The savings recovered in five years would amount to more than half the cost of
the AS/400.
Councilmember Ashiku felt it is important to have the ability of automated meter reading
applications for the City's Public Utilities Department. He inquired about reliability of
systems when acquiring new hardware.
Mr. Morgan explained that the support fee is built into the overall cost. The software is
written for A$/400 only. Discussion continued concerning costs associated with Plan 5 -
Special Systems. The Plan itself was discussed and it was noted that it is important that
the Police and Fire Departments do hot have interruptions.
Police Sergeant Dewey responded to an inquiry by Mayor Mastin concerning the
availability of using approved COPS grant funds to cover some of the costs associated
with Plan 5, by stating Council may chose to use a portion of those funds to support Police
services. He discussed the costs associated with a fire wall for the Central Data Center
and that it could be monitored in-house, thereby reducing costs.
Information Systems Coordinator Klingbeil explained that the cost estimates supplied
by ITP are strictly retail prices and may be significantly reduced when the City issues a
Request For Proposal (RFP) for the product. She noted that implementation of Plan 1, 2
and 4 would begin immediately. An RFP would be issued for those plans and the results
would be presented to Council for approval. She advised that it is their intention to leave
Plans 3 and 5 to the end until additional space in the new building and Central Data
Center is constructed.
Mr. Elton advised that he would like to have all five Plans identified, and hardware and
software purchased by the end of this fiscal year, although it is unknown if it will be
feasible until the RFP process and evaluations of the proposals have been made. He
noted that the Equipment Fund and Billing Collection Fund in the budget allocated
$750,000.
Police Sergeant Dewey advised that the County recently made upgrades in their system
and has chosen HTE as their vendor. The Court House is migrating to the HTE system
and noted the Sheriff's Department has been running the system for nearly 10 years. He
explained that at the last Council meeting a review and decision was made by Council to
go forward with three Police Department grant projects. These grants will assist to create
November 3, 1999
Page 5 of 12
a platform for the City to share information with County agencies and throughout the state.
He discussed the similarity of the County's operations to the City and noted they have
several AS/400's.
There was discussion of page 14 of the Executive Overview portion of the Report which
lists Pacific Bell's frame relay and communication costs. Further discussion was had
concerning the costs associated with reducing the number of remote locations for Internet
connections within the City. Staff noted the importance of reviewing each vendor and
providing them with the City's specific requirements in order to meet the City's needs.
Councilmember Ashiku felt it is very important to address issues related to utilities and
develop a vision for the future.
Consensus of Council accepted the Citywide Hardware/Technology Needs Assessment
and Plan.
8:00 p.m. - Recessed
8:05 p.m. - Reconvened.
NEW BUSINESS
9a. Adoption of Resolution Authorizing a HOME Application for First Time Home
Buyers Program and Approval of Budget Amendment
Risk Manager/Budget Officer Harris advised that the Community Development
Commission of Mendocino County (CDC) is requesting City assistance to institute a Down
Payment Assistance Program within the City. CDC has successfully conducted a similar
program in the unincorporated area and has noted there is a market within the
incorporated cities. The program will provide Iow interest deferred "second" mortgages for
11-13 families to a maximum of $30,000 each, on a home that would not exceed $123,000
inside the City limits. Primary funding is secured from the Federal Housing and Urban
Development (HUD)"Home Investment Partnerships Program" (HOME) grant administered
by the California Department of Housing and Community Development (HCD). This grant
covers 75% of the mortgage with the remaining 25% covered by a local match of funds.
Five percent administration costs are also included in the federal funding. Staff is
recommending Council approve a Budget Amendment to allow a local match of funds to
meet the grant requirements. CDC is proposing that they do all the administrative
activities for the HOME Program. As indicated in the Staff Report, the matter has been
discussed at the Low and Moderate Income Housing Advisory Committee and also the
Ukiah Redevelopment Agency of having a First Time Home Buyers Assistance Program.
There is $300,000 in funds from HUD and $75,000 local matching funds to provide those
second mortgages in this Program. As noted in the Staff Report, both the Savings Bank
and Humboldt Bank have indicated their willingness to participate in the program. The
loans will be 30-year deferred loans. Interest would be applied each year and at the end
of the 30 year time frame, they would begin to pay off the loan. The loan would have to
be repaid at the time of sale of the property, unless a qualified person was able to assume
the loan. He explained that this Program would not deplete all the funds in Fund 335,
Community Development Fund for the City, and noted there is approximately $20,000-
$30,000 remaining in the fund that can be utilized for similar programs or for other
November 3, 1999
Page 6 of 12
purposes.
He reported that the rural Community Housing Development Corporation is repaying their
$106,000 loan, with interest, which is provided in the cash flow of Fund 335. The funds
would be necessary as the loans are made. The City is the applicant, although CDC has
compiled all the documents necessary to apply for the grant. He extended his appreciation
to the CDC staff for their help.
Roy Tindle, Mendocino County Community Development Commission (CDC) Manager,
thanked Mr. Harris for his support of the project. When CDC presented this program to
the Board of Supervisors two years ago, it was the desire of the Board that this be a
County-wide program. However, CDC was prohibited by the State of implementing a
County-wide program at that time. He discussed some of the programs they are
attempting to develop in order to encourage more home ownership within Mendocino
County. CDC is working towards having the purchase price limits increased.
MIRC AshikulSmith adopting Resolution No. 2000-18 authorizing the submittal of an
application to the California State Department of Housing and Community Development
for funding under the Home Investment Partnerships Program; the execution of a Standard
Agreement if selected for such funding and any amendments thereto; and any related
documents necessary to participate in the Home Investment Partnerships Program.
Councilmember Libby advised that she is prepared to vote for the project, however, she
expressed her concern with where this will lead because it is unknown what we are starting
and it may be something that will grow much bigger. The loans won't begin to be repaid
for 30 years, and she personally did not feel that City government should be in the
mortgage business. However, she will vote in favor of the proposal because there is
money available for the Program at this time.
Councilmember Baldwin inquired if there is any provision to keep the housing stock
within the Iow income range when the borrower sells the property.
Mr. Harris responded that the loan would need to be repaid upon the sale of the property,
unless a qualified buyer assumed the loan, then the loan would be retained.
Mr. Tindle advised that, as indicated by letters from the Savings Bank and Humboldt Bank,
that the loans must meet usual credit underwriting criteria. One of the benefits of the
Program to the City is that not only the loan amount but the City's matching funds will
accrue interest when repaid back to the City, and the money will accumulate. He stated
that average home ownership is seven years.
City Attomey Rapport advised that he represents a number of Indian Housing Authorities
that have programs similar to the HOME Program, and that work in a similar way. The
provision' that requires the loan to be repaid if the home sells to a non-low income family,
is the mechanism that HUD commonly uses to make them affordable. When the money
is repaid, it can then be used to make a loan to someone else. The other affect of allowing
the property to appreciate and allowing the Iow income family that purchased the home
November 3, 1999
Page 7 of 12
reap the benefit of the equity increase is that you are helping that family stop being Iow
income. One of the goals of the program is to address the condition of poverty.
Councilmember Libby inquired if the home is sold to a Iow income family prior to the 30-
year time limit, what the status of the loan would be at that time.
Mr. Harris explained that the loan would be due at the time of sale whether or not the
family is Iow income. However, if the family is qualified and can assume the loan, they
would then be purchasing the first and second mortgage under the existing conditions.
Mr. Tindle stated that the loan is assumable if the home is purchased by another Iow
income person that qualifies. However, since it is the City's program, the City could
impose a condition that the loan not be assumable in order to recapture the funds. It
would be the recommendation of CDC that the loan would be assumable by a qualified Iow
income person. He noted that the 30-year time schedule would begin with the first owners.
He assumed the new owner would begin a new 30-year mortgage. He felt they would only
assume the loan on a 30-year term and rarely would the bank assume their first mortgage.
The bank would most likely rewrite the first mortgage, but they would assume CDC's loan
for the remaining term of the original loan.
City Attorney Rapport noted that the City would probably have to agree to subordinate
the second mortgage to the first mortgage in order for it to have senior status.
Mr. Tindle noted that typically in the case of home improvement loans that CDC has made,
they have only made agreements to subordinate under those terms that the loan is
assumed by a qualified Iow income household so the acceleration clause would be the
City's protection.
Helen Miller, Community Development Commission, advised that the first mortgages that
CDC has been running from their program are all fixed. Fixed loans are not assumable.
Therefore, the first mortgage would not be assumable.
Mayor Mastin noted that the community benefits from the pride of home ownership and
felt it is a wonderful program.
Motion carried by the following roll call vote: AYES: Councilmembers Smith, Libby,
Baldwin, Ashiku, and Mayor Mastin. NOES' None. ABSENT: None. ABSTAIN' None.
9c. Discussion Regarding Nomination of Councilmember for Possible
Appointment to the California Coastal Commission
Mayor Mastin advised that he requested this matter be included on the Agenda, since he
is Chairman of the City Select Committee for Mendocino County. A letter from the
Governor's office was included in the Council Packet which requests discussion and
nomination of a Councilmember for possible appointment to the California Coastal
Commission as the North Coast Regional representative. The Select Committee will be
meeting next week to forward recommendations for possible candidates for this position.
November 3, 1999
Page 8 of' 12
Discussion on the matter followed, with a consensus of Council in agreement that the
nominee should be someone from a coastal community in Mendocino County. No
nominations were made by Council.
10. CITY COUNCIL REPORTS
Councilmember Smith reported attending a meeting of the Mendocino County Health
Planning Council and initiating a Barrier Awareness Day. They will ask various prominent
members of the community to participate in either a wheel chair or blind folded practices.
No date has been set at this time.
He referred to the letter from the League of California Cities soliciting volunteers for Policy
Committee appointments for the year 2000. He would like to be considered for
appointment to the Employer Relations Committee since he has an interest in this area
with his own employment.
Mayor Mastin noted that these appointments do not require Council action, however, a
letter of support could be submitted to the League with his signature.
Discussion followed concerning the matter of Councilmember Libby's Council Packet being
removed from her doorstep by unknown person(s), and the delivery process for packets.
Those Councilmembers who prefer that their packets be placed in a specific location
should advise the City Clerk. Councilmember Smith advised that he will be on vacation
through November 15, 1999, and would appreciate his packet being held until he returns.
Councilmember Libby reported that she attended a meeting of the Economic
Development and Financing Corporation (EDFC) in Willits. A Trade Fair in Santa Clara
is planned for this weekend, the purpose of which is to attract businesses to Mendocino
County. EDFC approved their audit and are setting goals for the next year. This year, all
their money will be taken up in loans so they will not have much excess money.
She attended a MCOG meeting and reported that on the SB45 funding, the City was one
out of four cities that will receive funding. On the LTF 2% funding, we were one of two that
had applications approved and Ukiah will be receiving $12,161, about $5,000 less than
what was applied for. On the bicycle/pedestrian SB45 funds, the City of Ukiah will be
receiving the full amount that we applied for. She continued with discussion of the TEA
funding and explained that she was originally given the impression, and also when the
matter was heard before Council, that MCOG wanted to be able to spread the funds into
more than one jurisdiction. Therefore, the City kept down the cost of its project. There is
approximately $1.8 million for the two cycles that include this year and the year 2000.
Funding for this year was estimated at $900,000. The County applied for funding of $1.4
million, which would have depleted funding for this year as well as most of the funding for
the year 2000. There were not enough votes to decline funding of the County's $1.4
million project. ,She is confident that the City will receive its funding, however, the down
side is that MCOG will go into the second cycle (2000-2001) in order to fund all the
projects that were recommended by TAC including the $1.4 million that the County has
requested. Besides going into the second cycle, MCOG will be taking $259,000 that was
set aside for NCR& and placing the money into the two cycle funding. She also reported
November 3, 1999
Page 9 of 12
that instead of an 12% match, it will now be a 20% match. Instead of getting $236,000 we
will now receive approximately $220,800. She reported that she made it clear to MCOG
there is a need for changes in the way things are done and will be recommending the
matter go back to TAC for review and to clarify how projects are chosen. Had it been
known that funding from two cycles would be used, the City may have requested a larger
portion of funding, rather than scaling down its projects.
Assistant City Manager Flad advised that the funding allocation for Ukiah is for the
planting of trees along State Street and the trees on Main Street. He discussed the MCOG
meeting and the difficult task of selecting projects for funding. The $1.4 million project
submitted by the County is for the Mendocino County Museum in Willits. He was of the
opinion that such a large project deviates from the original goal of spending only $900,000
on a project. On a positive note, the process will probably be changed the next time
around, possibly designating a funding cap per project. He explained that MCOG adopted
the State process and there was not much review of its shortcomings. The next MCOG
meeting is scheduled for December 6, 1999 and direction was given to staff to put together
the details of how to fund four different projects. As long as staff can work out the details,
the City's project will be funded. He thanked Supervisory Shoemaker and Councilmember
Libby for supporting the City's project and developing a creative way to fund most of the
projects.
Councilmember Libby reported that the City's project is the only project that would
qualified to go for lapse in TEA funds, which encompasses those counties that have not
used all their funding. MCOG will be trying to obtain those funds from other counties for
the Ukiah project. If they were able to accomplish this, then instead of $200,000 left, there
may be $400,000 remaining for second cycle funding.
Mr. Flad advised that the Ukiah Depot project was also recommended for funding from
2002 STIP funding.
Councilmember Smith also reported that he attended a portion of the MCOG meeting.
He was happy to hear of commitments for refining the selection process.
Councilmember Baldwin inquired about negotiations with the cable franchise for the City.
Mr. Flad advised that the County is the lead agency and he will inquire as to the next
scheduled meeting. The franchise agreement lapses in December 2000.
Councilmember Ashiku reported attending a NCPA meeting in Roseville last week and
they voted to support the geothermal bond escrow account, which funded approximately
$900,000 out of reserves to set an escrow account to offset a bond due in 2008. The
interest on the escrow account offsets some of NCPA's cost in a significant way. They did
not support the debt swap which was proposed by NCPA where there was a fixed/variable
interest rate swap that was set up and NCPA had approximately $7.5 million that would be
subjected to that swap. In reading the resolution, it allowed a variable rate up to 20%. The
fixed rate that NCPA would enter into the agreement was set at 6% for a 15 year term. He
expressed concerns that the variable rate is currently at the bottom of its curve, and that
November 3, 1999
Page 10 of 12
the amount of gain for the City was Iow, considering the risks. It could also be extremely
adverse since there was a time limit placed on it and it would be difficult for the City to
mitigate or reverse out the swap. He did not support the resolution and with negotiations
with Palo Alto and Santa Clara, they agreed to modify the resolution to allow the City to
perhaps lay off its portion in order to allow the resolution to go forward. He argued that if
it's such a good deal those cities should have no problem going back to a city's council to
pickup the City of Ukiah's percentage. However, those cities indicated they didn't want
to go back to their councils for approval. The city of Healdsburg was represented at the
meeting and advised that they would not do that with their city's debt or the City's portion
of NCPA's debt. He will be asking Council for further direction on the matter and a Special
Meeting may need to be called prior to the next NCPA meeting because this is a $107
million financing project and all of the participants are eager to go forward. This is also the
final round of financial instruments that NCPA can use to mitigate some of the costs of
their debt.
Mayor Mastin reminded Council to recycle envelopes provided by staff. He reported that
MTA met on October 28, 1999, and they discussed canceling the evening Dial-A-Ride in
Fort Bragg due to Iow ridership. He discussed the ridership in the Fort Bragg area. MTA
discussed expanding the fixed route service in Fort Bragg to pick up the slack, however,
it was staff's opinion that the fixed route service needs even more riders because it costs
less to ride. MTA did include the matter on the Unmet Transit Needs List for consideration
in'the future. MTA discussed the Ukiah Transit Center and depot property and feel they
are close to making a deal on the property. He discussed the purchase agreement which
included five items MTA had questions about. The matter will be discussed again at
NCRA's next board meeting. If approved, MTA has been given direction to go forward with
the agreement. One item still in question is the federal money MTA plans to use to
purchase the property. He noted they must have a project first, before they can apply for
the federal funds and will provide documentation that has the Mendocino Transit Authority
designated for funding.
He reported that MSWMA met today and received from the Integrated Management Board
a recycling grant of approximately $90,000 to assist in putting into place an Oil Recycling
Program. Their current oil recycling program will be expanded to locations in the County.
One of the locations will be at Noyo Harbor where they will recycle oil filters and oil from
boats which is currently under the jurisdiction of the Harbor District, in exchange for the
Harbor District maintaining recycling and garbage bins on Noyo Beach. MSWMA also
discussed transfer stations around the County, notably those in Ukiah and Willits. Jerry
Ward has been granted a Use Permit by the City of Willits for their transfer station. The
EIR for the Ukiah transfer station will not be recirculated and it will probably go to the
Mendocino County Planning Commission in January 2000. He had a discussion with
Supervisor Delbar concerning fast tracking the project and was informed it is currently
being fast tracked for the County. MSWMA will be pursuing the matter further. He
reported on a discussion with Supervisor Delbar concerning various rates, concluding that
the rate is estimated at $50. Supervisor Delbar stated that he will be supporting the
cheapest price and that he would prefer to go elsewhere if a better deal can be found,
which includes the Willits transfer station. With Mr. Ward and Willits City Manager Gordon
Logan in the audience at that time, they displayed serious concern with Mr. Delbar's
statements.
November 3, 1999
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Councilmember Ashiku reported on his discussion with Supervisor Delbar regarding a
transfer station, and Mr. Delbar indicated that he supported the concept of the Taylor Drive
project in Ukiah but advised Mr. Ashiku there are other options available that are viable.
Mr. Ashiku questioned their sincerity in pursuing the matter when it reaches the Board of
Supervisors.
Mayor Mastin advised that at the League of California Cities breakfast meeting, the
Redwood Empire Division had asked for an individual to be on the annual Program
Planning Commission. Both he and City Manager Horsley thought Councilmember Libby
would be interested since she had expressed interest in the League committees. The
Program Planning Commission would have two meetings, both in Anaheim, since that is
where the annual conference will be located next year. He provided Councilmember Libby
with the information on the matter. He discussed other cities in the Redwood Empire
Division.
He reminded Council that tomorrow night between 4:00 and 8:00 p.m. the downtown winter
market begins. Many stores and restaurants in the downtown area will be staying open
later. The downtown trolley should be running soon.
City Clerk Ulvila reported that she will not be attending the Council meetings through the
month of December in order to devote time to Records Retention. Deputy City Clerk
Yoast is scheduled to take the minutes of the Council meetings during her absence. She
has been meeting with City Departments for the purpose of revising the existing 1980
Records Retention Schedule. Proposed revisions to the schedule will be presented to
Council for approval.
11. CITY MANAGER/DIRECTOR REPORTS
Assistant City Manager Flad reported that City Manager Horsley is scheduled to return
from vacation on November 15. He will be joining Madeline Holtcamp at the Trade Fair
in Santa Clara for the purpose of recruiting businesses to the area.
12. CLOSED SESSION
None.'
13. ADJOURNMENT
There being no further business, the meeting was adjourned at 9:02 p.m.
Marie Ulvila, City Clerk
November 3, 1999
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