HomeMy WebLinkAboutMin 08-20-82178
MINUTES OF THE CITY COUNCIL OF THE CITY
OF UKIAH - AUGUST 20, 1982
The City Council of the City of Ukiah met in special joint session with
Ukiah Valley Sanitation District. Councilmembers present: Feibusch,
Kelley, Hickey, Riley. Councilmembers absent: Myers. Staff present:
Kruth, Brosig, Beard, Melvin. District Board members Riley, Hamburg and
DeVall were present. Secretary Jenny Goodacre was present to record the
action of the Ukiah Valley Sanitation District.
Public Works Director reviewed for Council and Board members the history of
the relationship between the City and District. He pointed out that the
financing of the plant by the City is through revenue bonds whereas the
District financing is general obligation bonds. He reviewed the District's
1982-83 budget, quarterly accounting ending March 31, 1982, justification
from Director of Finance of the billing costs, 1966 request for increase in
charge by City to District for billing and collecting District sewer
service charges, study of City and District growth, gross and net revenues,
maintenance and operation, population growth, gallonage and costs. He
stated the total City area now served is 2,000 acres and the District
serves 3,300 acres.
In answer to a question regarding computer time, Finance Director stated
there is considerable preliminary work before work is done on the computer.
Computer time is based on $25.00/hour. Discussion was had regarding
contracting the billing service out.
M/S: Hickey/Riley to adopt Resolution No. 83-13 establishing sewer service
charges.
Discussion followed regarding projected ratio for plant costs and the need
to update the criteria.
Motion failed by the following roll call vote: AYES: Hickey, Riley NOES:
Feibusch, Kelley ABSENT: Myers
Discussion was had regarding staff preparing an alternate method of
assessing the District and City.
Discussion was had whether the rate increase was short or long term.
Public Works Director stated the proposed rate increase would carry the
City through the first year of operation but pointed out that he could not
project future wages, cost of power or cost of chlorine, which are
significant costs.
Discussion of rate increase to provide for capital improvement reserve;
there is no specified reserve for emergencies or major breakdowns. Public
Works Director did not feel reserves necessary for breakdowns in sewer
truck lines as problems, if they were to occur, would be with the treatment
plant itself. He further stated the City does not set up a specific
reserve but has general reserves for its overall operation. He stated the
rate increase under consideration is due to the plant improvements due to
increased cost of operating the plant and the local contribution share of
$600,000, estimated to be $119,000.
Mayor Riley made a motion to adopt the resolution and to add a No. 6 that
rate increase be reconsidered after three months during which time staff
will prepare a reexamination of the relationship between the City and
District in terms of rates. Motion dies for lack of a second.
Discussion followed regarding deficit budget. Public Works Director
pointed out that the City is carrying the District's local share right now
although the District has advanced a portion of their share. Suggested
review of two contract items: 1) billing at 20% charge reasonable or
Adj .Meeting
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should it be modified? 2) is the cost sharing between City and District
equitable under the present procedure or is there a need for a new formula?
Suggestion that rate increase be approved tentatively while continuing to
negotiate with the District as the City must pay for its local share of the
plant improvements.
M/S: Riley/Hickey to adopt Resolution No. 83-13 establishing sewer service
charges.
Motion failed by the following roll call vote: AYES: Hickey, Riley NOES:
Feibusch, Kelley ABSENT: Myers
Councilmember Kelley stated he would reconsider his vote as he felt the
decision regarding the plant improvements were made prior to his sitting on
the Council.
Motion carried by the following roll call vote: AYES: Kelley, Hickey,
Riley NOES: Feibusch ABSENT: Myers
Mayor Riley directed staff to address the following in their analysis and
recommendation: population figures, the number of hookups and type of
hookups, including the miles of lines.
ADJOURNMENT - 3:40 P.M. - to August 27, 1982 at 3 P.M., Housing Element.
Mary Melvin
Deputy City Clerk
Adj. Meet ing
8/20/82
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