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HomeMy WebLinkAboutmin 12-18-85267 RECESS: 8:07 P.M. The Council went into Closed Session at 8:20 p.m. The Council reconvened into open session at 9:00 p.m. NEW BUSINESS 10c. Discussion of Current Status of Financing and Completion - Lake Mendocino Project The City Manager made a presentation regarding the financing of the completion of the Lake Mendocino Hydroelectric Project. In that presentation he noted that the original bond issue for the project was $18,000,000. Between cost over-runs by Underground Construction Company and Tudor Engineering Company and attorneys fees and other costs incurred by the City that were not anticipated when the bonds were issued, the City has expended out of electrical fund reserves substantial sums in excess of the $18,000,000. He noted that the City cannot continue to finance the additional projected costs for completing the project without seeking some additional financing. He stated that the projected costs to complete the project over and above what the City has already spent is between $1,500,000 to $2,000,000. He explained that the City has reserved its rights to recover these excess costs from third parties, including Underground and Tudor, who may have legal liability for them, and that claims are being pursued against several insurance companies that have issued policies in connection with the project, but that a settlement of those claims against third parties or their insurance companies is not likely to occur before additional revenues are needed to complete the project. He then reviewed the projections prepared by Rauscher, Pierce, Refsnes, Inc., the municipal bond consultants that the City used in its initial $18,000,000 bond issuance, of the legal hurdles and costs that the City will confront in issuing completion bonds for the project in amounts varying from $2,000,000 to $3,000,000. Assuming that all legal requirements can be met, completion bonds could not be sold prior to some time in March 1986. The City Manager recommended pursuing the issuance of completion bonds in an amount in the range of $2,500,000. The City Manager further explained that substantial sums would be needed between now and the time that additional revenues could be realized from the issuance of completion bonds to complete the project, which on the current schedule is estimated to be completed in June of 1986. He recommended against the City attempting to continue paying for work on the project from the City's existing cashflow. He informed the Council that the Northern California Power Agency (NCPA) had some funds available which it could possibly loan the City on a short term basis and that this was the least costly and most readily available source of interim financing, pending issuance of completion bonds. He explained that some details of a short term loan from NCPA had to be negotiated and that NCPA's legal right to loan and the City's legal right to borrow the money had to be established, but that those matters could be resolved before the end of January, if the Council authorized staff to pursue this possibility. He recommended that the Council authorize staff to pursue the possibility of borrowing $1,000,000 from NCPA on a short term basis to provide cashflow until completion bonds can be issued for the project. M/S Hickey/Kier moved that the City Manager pursue issuance of up to $2,500,000 in completion bonds and take initial steps to borrow $1,000,000 from NCPA. Discussion followed. The motion was carried by the following roll call vote: AYES: Councilmembers Henderson, Kier, Hickey, Kelley, and Mayor Myers. NOES: None. Reg. Mtg. December 18, 1985 Page 5 268 ADJOURNMENT There being no further business, the meeting was adjourned at 9:15 p.m. Yvette S. Hayes City Clerk Reg. Mtg. December 18, 1985 Page 6 265 PUBLIC HEARING 8a. Review and Adoption of Urban Water Management Plan The City Manager introduced the Public Works Director. The Public Works Director stated that at its meeting of October 16, 1985, the City Council commissioned the engineering consulting firm of Kennedy/Jenks Engineers of San Francisco to prepare an Urban Water Management Plan, pursuant to Assembly Bill 797. The Deputy Director of Public Works addressed the Council and reported that the hearing was duly published in the local paper and posted at City Hall and appropriate local agencies. He introduced Thomas P. Patten and Mark S. Soldate, Project Manager and Engineer of the plan. They gave a presentation and summarized the report for Council. Councilmember Kier queried if a cost analysis was done on recommendations. their Mr. Patten stated no cost analysis had been done. Councilmember Kelley stated he liked the idea of using existing wells. He questioned if the implementation schedule will meet State guidelines. Councilmember Henderson asked if the projected water usage took into account future annexation areas and questioned water rights of the Russian River. The Public Works Director noted that some of the recommended projects have not been budgeted for this year and the report does not hold the City to any time line on the recommendations. PUBLIC HEARING OPENED: 7:39 P.M. No one present for comment. PUBLIC HEARING CLOSED: 7:40 P.M. M/S Kelley/Henderson to adopt the Urban Water Management Plan as submitted and authorized staff to submit the plan to the State Department of Water Resources. The motion was carried by the following roll call vote: AYES: Councilmembers Henderson, Kier, Hickey, Kelley, and Mayor Myers. NOES: None. NEW BUSINESS 10b. Renewal of Contract - City Attorney The City Manager stated he has reviewed the City Attorney's proposal and after looking at prevailing rates of other attorneys in the area he feels it is appropriate to grant the City Attorney his proposal. Councilmember Kier questioned retainer fees and post retainer fees. M/S Hickey/Henderson to adopt Resolution No. 86-26 which extends and revises the Ukiah City Attorney's contract. The motion was carried by the following roll call vote: AYES: Councilmembers Henderson, Kier, Hickey, Kelley, and Mayor Myers. NOES: None. 10c. Discussion of Current Status of Financing and Completion - Lake Mendocino Project To be discussed after closed session. COMMENTS FROM AUDIENCE None. Reg. Mtg. December 18, 1985 Page 3 266 CITY COUNCIL REPORTS Councilmember Henderson Attended board meeting of Mendocino Transit Authority in Fort Bragg today. MTA's insurance coverage was discussed. As of Friday midnight, they will be without insurance coverage. They are seeking to find another carrier but if one is not found, MTA must stop their bus services temporarily. Asked if the City would be interested in a MTA bus stop in front of the Civic Center on Oak Street. The City Manager will refer the matter to Mr. Lopes. The Grace Hudson Museum will be finished soon. She would like to give the Council a tour. WAPA granted the Energy Conservation Committee their cost/sharing proposal. Councilmember Kier Attending the Deep Pocket Hearing held in Ukiah. He noted the initiative will be on the ballot. Councilmember Hicke¥ NCPA is finalizing the refunding of outstanding bonds. The combination of interest and fees will be a $22 million savings to NCPA members. Reported on two drill rig accidents at the Geysers. Councilmember Kelley Request from neighbors on Morris Street, that an existing red zone be removed. The City Manager will refer this matter to the Traffic Engineering Committee. Submitted ambulance committee report. Matter will be agendized. Mayor Myers At the Sanitation Board meeting members referred Deerwood annexation to staff for direction for their February meeting. Received letter from George Gustafson requesting an extension of time on the School District's lease agreement at 445 South Dora Street. This matter will be agendized. Introduced Kathleen Stone from KUKI/KIAH. CLOSED SESSION The City Attorney recommended that Council go into Closed Session under the exception to the Brown Act, 54956.9, Subsection c., to discuss pending litigation of Underground Construction Company vs. Tudor Engineering, et al., Mendocino County Superior Court Case No. 50850. M/S Kier/Hickey to go into Closed Session to discuss the following: 1. Pending Litigation: Underground Construction Company vs. Tudor Engineering, et al. The motion was carried by the following roll call vote: AYES: Councilmembers Henderson, Kier, Hickey, Kelley, and Mayor Myers. NOES: None. Reg. Mtg. December 18, 1985 Page 4 263 MINUTES OF THE CITY COUNCIL OF THE CITY OF UKIAH - DECEMBER 18, 1985 The City Council convened in regular session at 6:30 p.m., in the Ukiah Unified School District Board Room. Roll was taken and the following Councilmembers were present: Henderson, Kier, Hickey, Kelley, and Mayor Myers. Staff present: City Manager Payne, City Attorney Rapport, Planning Director Harris, Public Works Director Pedroncelli, Finance Director Vara, Deputy Director of Public Works Goforth, and City Clerk Hayes. INVOCATION AND PLEDGE OF ALLEGIANCE Councilmember Henderson delivered the Invocation and the Public Works Director led the Pledge of Allegiance. APPROVAL/CORRECTION OF MINUTES Mayor Myers noted an addition on page 2, item 9b, add to the motion "no costs to be incurred by the City". Councilmember Henderson noted on page 3, fourth paragraph, the word permit changed to permanent. M/S Hickey/Henderson to approve the Minutes of December 4, 1985, Regular Meeting, as amended. The motion was carried by the following roll call vote: AYES: Councilmember Henderson, Kier, Hickey, and Mayor Myers. NOES: None. ABSTAIN: Councilmember Kelley. SPECIAL ORDER OF BUSINESS 5i. Presentation by Australian Exchange Student The Mayor reported that for the past two weeks two students from Australia have been visiting Ukiah High School. They have taken part in the Lions Youth Exchange. Judith Veal was introduced to the Council and gave a presentation to the Mayor. 5ii. Discussion with Architect, Victor Lopes - Yokayo Site Mr. Lopes reported on the demolition progress. Backfilling on the interior space will start within a week. Steel reinforcing of the south wall, as per Change Order No. 1, will begin. During the first or second week of January he will be meeting with Department Heads concerning the interior cabinetry designs. After these discussions have taken place, he would like to set up a special session with Council; this date may be set at the next City Council meeting. RIGHT TO APPEAL DECISION Mayor Myers reviewed Section 1094.6 of the Code of Civil Procedure regarding the appeal process. CONSENT CALENDAR M/S Henderson/Hickey to approve the Consent Calendar Items 7a, 7b, 7c, 7d, 7e, and 7f, as follows: 7a. Approved Payroll Warrants for December 18, 1985, #8423 to 8670, in the amount of $117,409.57. 7b. Approved General Warrants for December 18, 1985, #30328 to 30492, in the amount of $806,341.42. 7c. (i) Denied Claim for Damages, Holy Trinity Episcopal Church, and referred matter to insurance carrier. (ii) Denied Claim for Damages, Bobbie Brittain, and referred matter to Reg. Mtg. December 18, 1985 Page 1 264 insurance carrier. 7d. Approved a recommendation to LAFCO of a proposed annexation of a Haines parcel to Millview County Water District; all AWWA standards to be met and adequate water flow and fire hydrants for fire protection to be insured. 7e. Set January 15, 1986, as the date for formal acceptance of the Historical/Architectural Survey Report and recognition of the Committee members' efforts. 7f. Approved the Report of Administrative Actions and Proposals (R.A.A.P.) The motion was carried by the following roll call vote: AYES: Councilmembers Henderson, Kier, Hickey, Kelley, and Mayor Myers. NOES: None. PETITIONS AND COMMUNICATIONS 9a. Request from James P. Loehr Regarding Downtown Improvement District Committee Mr. James P. Loehr, 216 Perkins, was present to request that Council appoint members to the Downtown Improvement District Committee. The committee has consisted of Mike Rodgers, Kip Spencer, Mary Rhodes, Carole Jones, Bruce Poma, and himself. He noted they used to meet once a month, but because there has been a lack of enthusiasm committee members and meeting times have dwindled. The Improvement District receives $5,000 a year and would like some new ideas/input on how best to use the money. The City Manager commented on previous projects done by the Improvement District. He noted that the City has never previously appointed anyone to the Committee. Being a Special District, a committee could be appointed to assist them but legally he did not know if Council could appoint anyone to assume the responsibilities of the District. M/S Kier/Hickey refer the matter of researching the official legal structure of a Downtown Promotion Parking District and whether the Council may appoint members to the Committee to the City Attorney. The motion was carried by a unanimous voice vote. NEW BUSINESS 10a. Approval of Oak Street Widening Project The City Manager reported that in addition to the $2.4 million Civic Center reconstruction project, staff has reviewed the prospects of widening Oak Street. The street frontage is offset within the block from the north and the south and four power poles are set within the block, one of which lies in center of the entrance to the Civic Center. Staff recommends widening the street and relocating the pole lines underground as they would any other project before them. The City Manager noted that the project has not been budgeted this year but the plans would like to be coordinated with Victor Lopes and the Civic Center project. Councilmember Kier stated that those neighbors that would ultimately be affected by the proposed street widening should be notified. Councilmember Henderson asked if the improvement could come under SB300 Funds. The Public Works Director stated street widening and/or reconstruction could not be considered under SB300. It was Council's consensus to keep the neighbors apprised of the proposed street change. M/S Kier/Hickey approving conceptually the project of widening South Oak Street and authorize staff to proceed with plans and specifications for the construction. The motion was carried by a unanimous voice vote. Reg. Mtg. December 18, 1985 Page 2