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HomeMy WebLinkAboutMin 08-23-95MINUTES OF THE CITY COUNCIL OF THE CITY OF UKIAH - August 23, 1995 The City Council convened in a regular adjourned meeting, of which the agenda was legally noticed and posted, at 4:30 p.m. Roll was taken and the following Councilmembers were present: Mastin, Shoemaker and Mayor Schneiter. Absent: Councilmembers Malone and Wattenburger. Staff present: City Treasurer Coyne, Interim City Manager Horsley, City Attorney Rapport, City Engineer/Public Works Director Kennedy, Public Utility Director Barnes, and Executive Assistant Yoast. Mayor Schneiter announced there has been an urgent item of Council business which arose after the close of the agenda, and as requested by the City Treasurer, Council needs to take action to add this matter to the agenda under the New Business portion of this agenda. M/S Schneiter/Mastin to add this urgent matter to this agenda under New Business as Item 5c. The motion was carried by a unanimous voice vote of all AYE. Councilmembers Malone and Wattenburger were absent. 2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward. Mayor Schneiter reviewed Government Code Section 1094.6 of the California Code of Civil Procedures regarding the appeal process. CONSENT CALENDAR 3a. Cancellation of Previous Awarded Contract and Approval of Sodium Hy4roxi4e Bi4 for the Water Treatment Plant and Award to Jones Chemical in the Amount of $334.25 M/S Shoemaker/Mastin to release Jones Chemical Company from the obligation to supply product at a unit price of $334.25 per dry ton and to bill the company the increase incurred by awarding the bid to the next lowest bidder, Sierra Chemical Company, at a unit price of $368.05 per dry ton. The motion was carried by the following roll call vote: AYES: Councilmembers Mastin, Shoemaker and Mayor Schneiter. NOES: None. Absent: Councilmembers Malone and Wattenburger. UNFINISHED BUSINESS 4a. Award of Contract for Hydroseeding at the Ukiah Soli4 Waste Site in the Amount of $12,250 for the Application of a Lime Matte Erosion Control Blanket at Ukiah Landfill The City Engineer reported to Council regarding the question of Metamorphis Hydroseeding Inc. being a sole source supplier and composition of the seeding material. Councilmember Shoemaker stated he would like to see staff conduct an open bid process next year for this same material. M/S Shoemaker/Mastin to award the contract to Metamorphis Hydroseeding Inc. in the amount of $12,250 for the application of Poz-o-cap erosion control matte at the Ukiah Landfill. The motion was carried by the following roll call vote: AYES: Councilmembers Mastin, Shoemaker and Mayor Schneiter. NOES: None. Absent: Councilmembers Malone and Wattenburger. NEW BUSINES~ Sa. Award of Contract to Conduct a Feasibility Study for VOC Remediation at the Ukiah Solid Waste Site The City Engineer/Public Works Director reported the North Coast Regional Water Quality Control Board (NCRWQCB), through the issuance of Waste Discharge requirements Order No. 94-123, has Reg. Adj. Mtg. August 23, 1995 Page 1 294 directed the City to perform an engineering feasibility study and to implement volatile organic compounds (VOC) corrective action measures within specific time frames. He explained 33 requests for proposals were sent with 10 proposals received. He reported on the top five ranking consultants and the evaluation for the top three consultant companies. He reviewed cost factors and the possibility of. altering the change of scope of services pending further discussions with the NCRWQCB and possible negotiations with the top consultants. Council queried staff regarding how VOC's are detected, how the landfill's past three years of monitoring found no detectable VOC's, how volatile compounds degrade naturally, how reduced leachate is due to increased capping of the landfill and compaction, the previous results of monitoring specific test wells, depths of monitoring wells, and Government Code Section 4526 regarding selection of professional services. The City Engineer/Public Works Director noted a change in recommendation to authorize the City Manager to negotiate a contract and service agreement with Dames and Moore and to approve expenditure of funds for engineering of a mitigation system if needed, in an amount not to exceed $20,000. This amount will come from the set aside funds for cleanup mitigation, and to be used for Phase II of Task iii, which is the leachate extraction work. Councilmember Mastin indicated his discomfort with the shallowness of the monitoring wells which are 20 feet below the garbage level. It is his hope that a consultant will look into this matter thoroughly. The City Engineer/Public Works Director reported on depths of existing monitoring wells and the proposed services by each consultant company, along with their respective bids and detail of hours required. M/S Schneiter/Shoemaker to authorize the City Manager, in conjunction with the City Attorney and City Engineer/Public Works Director, to negotiate a service agreement with Dames and Moore Company. The motion was carried by the following roll call vote: AYES: Councilmembers Mastin, Shoemaker and Mayor Schneiter. NOES: None. Absent: Councilmembers Malone and Wattenburger. 5b. Consideration of Banner Pole System for State Street and Award of Bid to Wipf Construction for an Amount Not to Exceed $2,000, for Installation of Footings The Interim City Manager reported on the need to install a pole system on State Street for hanging banners which are requested by the public. She indicated this will include removing the facade attachment from the side of McNabs Mens Ware. M/S Mastin/Shoemaker to approve the revised banner pole program and authorize the Interim City Manager to execute the contract with Wipf Construction to install banner poles in an amount not to exceed $2,000. The motion was carried by the following roll call vote: AYES: Councilmembers Mastin, Shoemaker and Mayor Schneiter. NOES: None. Absent: Councilmembers Malone and Wattenburger. 5c. City Treasurer Report Concerning City Investments The City Treasurer requested that his August 18, 1995 report to the City Council be entered into the record in its entirety. He noted he is requesting the City Council to approve the sale of liquid assets as listed in the investment portfolio, in which he is recommending, except for one exception, the same recommendation received from Chandler and Associates. Discussion ensued regarding the reasoning behind the one exception by the City Treasurer to not sell the one investment at this time, and the legal authority to whom the responsibility of selling these investments belongs to, and how the selling process is implemented for the best possible price. Reg. Adj. Mtg. August 23, 1995 Page 2 Councilmember Shoemaker stated his concern that we have not fully discussed strategies to approach the original sellers regarding these investments, and time frames which may affect the final outcome. The City Treasurer stated these investments are subject to a great deal of volatility and price or possible loss on the portfolio. He explained the current weekly trend. Mayor Schneiter read a letter received from John McCowen to the Council into the record. Mayor Schneiter stated that the advice and opinion which was contracted for from Chandler and Associates is consistent with the City Treasurer's recommendation, with one exception, and he feels we should take this professional advice. Discussion ensued regarding the duration of the investments, analysis and the possibility of losses in respect to interest rates, and the legal possibility of reimbursement. Councilmember Shoemaker stated his concerns that he prefers holding onto these investments, to not realize a loss at this time, and still recuperate. Mayor Schneiter stated that having a poorly rated portfolio could jeopardize our future ability for bond issues in areas surrounding NCPA and the City's, and he would like to initiate compliance at this time. The City Treasurer stated that our portfolio, in its current form, is so bad there is a chance that Standard and Poor's and Moody's will not even give us a rating. He urged the Council to authorize the sale of these investments so that efforts may be initiated to develop a good portfolio. Councilmember Shoemaker indicated his concern that he has never seen the revenue generated by these particular investments, which may reduce the apparent loss of millions, and he would like this information. He also indicated he would have liked to have seen results of negotiations with the brokers who sold us these investments originally. As he does not have this information, he is uncomfortable making this decision tonight, which will result in the loss of approximately a million dollars. Richard Johnson, Publisher of Mendocino Country Environmentalist, office located in Talmage, stated he viewed a television show regarding derivatives, which was informative, and showed him they are mysterious and unsecure. He indicated that many governmental agencies have been burned by these types of investments offered by the investment professionals. He stated that billions of dollars have been lost by governments, with no information regarding where the money went. He further stated in the future this will be viewed as the biggest scam perpetrated on governmental agencies ever. Although it is easy to blame certain prior officials, it appears to be time to take responsibility to cut the losses at this time and follow the experts advise. Councilmember Mastin indicated he is also uncomfortable with having to take this action, but he firmly believes that the buck stops with the Council and he is willing to make this difficult decision to correct errors of the past. Councilmember Shoemaker stated he would like further information concerning the probable cash flow needs of the City of Ukiah for the future. M/S Schneiter/Mastin to follow the action suggested by the City Treasurer and agree that he begin to sell the investments as he described in the report to the Council. Discussion ensued regarding the past years's cash flow needs, and how the City Treasurer assisted the City Manager in the development 295 Reg. Adj. Mtg. August 23, 1995 Page 3 of the 1995/96 budget regarding cash flow needs. Mayor Schneiter called for the question. The motion was carried by the following roll call vote: AYES: Councilmembers Mastin and Mayor Schneiter. NOES: Councilmember Shoemaker. Absent: Councilmembers Malone and Wattenburger. Mayor Schneiter thanked the City Treasurer for this information, knowing that the City Treasurer has the ability and responsibility of selling these investments even without Council authorization. He indicated he would like a full report as to the results of this sale. Gordon Johnson, reporter for KZYX, questioned if anyone has talked to the District Attorney regarding this violation of the Government Code and possible criminal action? Mayor Schneiter thanked Mr. Johnson for his comment. ADJOURNMEN? There being no further business, the meeting was adjourned at 5:55 p.m. · ,/ . o / ' CCMIN.207 /~ , //. ./ / / ," .31~/ / / /- / Karen yOast, Ex~cuti~et Assistant ~ // ~ -- / 297 Reg. Adj. Mtg. August 23, 1995 Page 4