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HomeMy WebLinkAboutMin 11-05-03 MINUTES OF THE UKIAH CITY COUNCIL REGULAR MEETING WEDNESDAY, NOVEMBER 5, 2003 The Ukiah City Council met at a Regular Meeting on November 5, 2003, the notice for which had been legally noticed and posted, at 6:30 p.m. Roll was taken and the following Councilmembers were present: Rodin, Andersen, Smith, Baldwin, and Mayor Larson. Staff present: Administrative Analyst Burck, Community Services Director DeKnoblough, Police Administrative Captain Dewey, Finance Director Elton, Wastewater Treatment Plant Supervisor Gall, Risk Manager/Budget Officer Harris, City Manager Horsley, City Attorney Rapport, Community Services Supervisor Sangiacomo, Planning Director Stump, Police Chief Williams, and Deputy City Clerk Ulvila. 1A-3 Mayor Larson advised that there is a request from Staff to place an urgency item on the agenda. The need to take action came to the attention of the City subsequent to the agenda being posted. The Urgency Item involves "Adoption of Resolution Adopting a Memorandum of Understanding between the City of Ukiah the Management Unit". 1A-9 M/S Smith/Rodin to add urgency item of "Approval of Management Unit Memorandum of Understanding", to the Agenda as item "10e" and also as a Closed Session item, and carried by a unanimous voice vote of the Council. 1A-14 2. PLEDGE OF ALLEGIANCE Matt Froneburger led the Pledge of Allegiance. Mayor Larson called for a minute of silence in recognition of those firefighters who lost their lives fighting fires in Southern California. He noted that the City flags are flying at half-mast in their honor. 1A-38 3. PRESENTATION/PROCLAMATION 3a. Presentation by Amy O'Gorman~ Representative of the League of California Cities Amy O'Gorman presented a Power Point presentation and discussed the Local Taxpayers and Public Safety Protection Act, a ballot initiative, which ensures voter control over local tax dollars for public health, safety and other essential local services. For more than a decade, the State legislature has been taking away increasing amounts of tax dollars that cities use to provide essential services. This has forced cities to either raise local fees or taxes to maintain services, or cut back on critically needed services including police, fire, emergency and public health care, roads, parks, libraries, and water delivery. She discussed the Vehicle License Fee (VLF) and that the state has deferred $360 million of VLF backfill money, without interest, until 2006. There was also $135 million "one time" shift of Redevelopment Agencies funds. She discussed the Bradley Burns Regular City Council Meeting November 5, 2003 Page 1 of 17 Sales & Use Tax that will begin July 1, 2004 in which the state will take 1/2 cent of local sales and use tax to finance $10.7 billion in deficit bonds. The initiative proposed by the League of California Cities would require voter approval, by a majority of the electorate, before a proposed state law may take effect that reduces the sales tax, property tax and/or VLF funds of cities, counties and special districts. It will ensure that local tax dollars are available to fund local services, and clarify that it is the State's duty to reimburse cities for all state mandated programs. The initiative will not raise taxes, will not increase funding to local government, will not reduce funding that schools receive from local property taxes or funding that schools receive from the State, and will not reduce funding for other State programs. 1A-154 3. PRESENTATION/PROCLAMATION 3b. Proclamation: Community and Regional Planning Day in Ukiah- Councilmember Rodin Councilmember Rodin read a Proclamation designating November 8, 2003 as Community and Regional Planning Day in Ukiah in conjunction with the worldwide celebration of World Town Planning Day. Planning Director Stump accepted the proclamation. 1A-188 4. APPROVAL OF MINUTES 4a. Regular Meetin,q Minutes of August 207 2003 Councilmember Rodin drew attention to page five, second to last paragraph and recommended it read as follows, "Councilmember Rodin was of the option that no further regulations are needed with regard to leaf blowers and other loud noises, and that common courteousness is what is needed from neighbors". M/S Andersen/Baldwin approving the minutes of the Regular Meeting of August 20, 2003 as amended, carried by a unanimous all "AYE" voice vote of the City Council. 1A-200 5. RIGHT TO APPEAL DECISION Mayor Larson read the appeal process. 1A-206 6. CONSENT CALENDAR M/S Baldwin/Smith approving item "a" through "g" of the Consent Calendar as follows: a. Authorized Expenditure Of $23,638 For Environmental Compliance Services At The Ukiah Solid Waste Disposal Site; b. Rejected Claims For Damages Received From Joseph And Sandra Talamo And Melvin And Adella Quinliven And Referred To Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Received Report Of Emergency AcquisitiOn Of Services From Granite Construction Company For The Grinding And Paving Of A Section Of Mill Street; Regular City Council Meeting November 5, 2003 Page 2 of 17 d. Awarded Purchase Of Mobile Storage System For The Grace Hudson Museum To Systems Concepts, Inc. In The Amount Of $27,616; e. Awarded Bid For Replacement/New Computer Equipment And Printers From Dell Marketing L.P. In The Amount Of $28,788.10; f. Authorized Sole Source Procurement For Police Transcription Services From Transpositions Not To Exceed $20,000; g. Adopted Resolution 2004-13 Approving The Application For Grant Funds From The Per Capita Grant Program Under The California Clean Water, Clean Air, Safe Neighborhood Parks, And Coastal Protection Act Of 2002. Motion carried by the following roll call vote: AYES: Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 1A-227 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward to address the City Council. 1A-235 8, PUBLIC HEARING Sa, Notification Of Award Of Federal Law Enforcement Block Grant~ Discussion Of Fund AIIocation~ And Approval Of Budget Amendment Police Chief Williams explained that the Police Department received a block grant in the amount of $17,434. This block grant requires a City Match of $1,937. This grant has been used to pay for transcription services for the Department and it is their desire to continue that service for the coming year for an amount not to exceed $20,000. Public Hearing Opened: 6:52 p.m. No one came forward. Public Hearing Closed: 6:52 p.m. M/S Rodin/Baldwin Approving the Officer Transcription Project at a total cost of $20,000 as expenditure for the 2003/04 Local Law Enforcement Block Grant and approval of amendment to the 2003/04 budget reducing grant revenue in account 207.0900.488.002 from $30,000 to $17,434, increasing miscellaneous revenue (local match) in account 207.0900.905.000 to $1,937, and increasing expenditures in account 207.2001.250.000 to $20,000 for Officer Transcription Project; carried by the following roll call vote: AYES: Councilmembers Rodin Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 1A-287 8. PUBLIC HEARING 8b. Consider Increases In Sewer Connection Fees To Finance Improvements At The Ukiah Wastewater Treatment Plant Project Engineer Burck advised that Brown and Caldwell have completed the Connection Fee Analysis and has determined that current sewer connection fees do not provide sufficient revenue to cover the cost of increasing plant capacity for new customers. She reviewed the project milestones and summarized the work completed on the Connection Fee Analysis by Brown and Caldwell. On the basis of the Regular City Council Meeting November 5, 2003 Page 3 of 17 Connection Fee Analysis, staff is recommending the connection fee be increased to $8,759. If the connection fee is less than $8,759, then the capacity cost will have to be subsidized by existing users, people who have already paid for their share of capacity. The total cost of the project is estimated at $64.6 million, and the projected number of new sewer units that the City would be adding the capacity for is 2,349 connections. The cost to increase capacity for these new connections is $20.6 million. Traditionally, capacity costs are recovered from connection fees of future users. The reason for needing to increase the fees now is because the City has already begun incurring expenses on this project. The less revenue available from fees and charges, the more money the City will need to borrow. That would mean a higher financing cost for this project. Tim Banyai, Assistant Project Manager and Principal Engineer for Brown and Caldwell, discussed Brown and Caldwell's Connection Fee Analysis and explained how they arrived at the new connection fee number. Councilmember Baldwin stated he is under the impression that a year ago Brown and Caldwell estimated the whole project costs would be $34 and $45 million. He inquired as to why "other costs" total another $20 million. Mr. Banyai explained that the number was probably taken from the proposal that included only the construction cost estimate. In their proposal they included figures for estimated construction costs of $35 to $45 million. He explained that 32% of the project is due to growth. Eric Wahlberg, Ph.D., P.E., Project Manager and V.P. Process Optimization for Brown and Caldwell, advised that the average dry weather flow (ADWF) capacity has to be increased from 2.37 mgd (million gallons a day) to 3.01 mgd in order to get where the population is now. In addition, the recommended project is needed to meet the regulatory requirements that they foresee in the next 20 years in terms of Biochemical Oxygen Demand in 5 days (BOD5), Total Suspended Solids ('I'SS), and coliform limits. The No Growth Project would not allow any more new connections to the treatment plant. If that were the case and if a change in ordinance were made to allow those people that wanted to build in the service area, and construct septic tanks, the City would risk surface water contamination from leach fields. In terms of No Project, there would be no new connections. The permit violations would initiate a Cease and Desist Order; the State would take control of the WWTP improvements. Also this could result in fines and possibly imprisonment. Discussion followed with regard to obtaining grant funds for the project. The condition of the current wastewater treatment facilities was discussed with regard to the necessary upgrades needed. It was noted by staff that the plant is currently experiencing a high infiltration problem. Government mandates were also discussed. Discussion continued with regard to the maximum number of new connections for the wastewater treatment plant and its capacity. User fees were also discussed at length. Regular City Council Meeting November 5, 2003 Page 4 of 17 Councilmember Andersen was of the opinion that the City should be careful about fees for quality affordable housing projects. Councilmember Baldwin requested Staff investigate fees charged by other jurisdictions. Public Hearing Opened: 7:50 p.m. James Ward, Dan Obergen, and Jeff Trouette, were of the opinion that an $8,000 connection fee would place a hardship on contractors. Public Hearing Closed at: 8:06 p.m. City Attorney Rapport advised that there is concern about people who have gone through the entire Planning process and have invested in their project and are close to construction who are now suddenly hit with this higher fee without warning. This amendment would protect them and would prevent people from rushing in between now and February 3rd to try to prepay the $1,000 fee to avoid paying the higher fee. City Manager Horsley responded to an audience comment concerning what staff should have known years ago, by saying that staff could not have foreseen the changes in state law and requirements of the wastewater treatment plants. The fact that the City may not be able to release to the river or that it may not be able to have percolating ponds was not in most peoples' minds years ago. Mayor Larson inquired if the connection fee could be amortized over an extended period of time and incorporated into the monthly bill. This would be an option to paying the entire costs all at once. Also, if, in the future, the City realizes that it can create more connections than anticipated and have more money than anticipated, would the City be able to provide a rebate to the developers. City Attorney Rapport advised that both of Mayor Larson's inquiries would be possible and didn't know of any state law or City code provision that would prevent it. However, it would take some additional rule making by the City Council. Discussion continued with regard to the proposal to increase the connection fee and how it would affect developers. There was discussion concerning how other jurisdictions base their fee, such as on the amount of water used per household. Councilmember Baldwin was of the opinion that if the connection fee were based on the number of toilets per household, that would be a built in encouragement for more affordable units. He inquired if the City could legally provide for a lower rate for public housing and affordable units that would remain below market value. Councilmember Andersen inquired if staff has explored the issue of a transfer fee when property changes owners, such as a connection fee. He stated it is his opinion that the City should be taxing transfer of property. The whole point is to meet the Regular City Council Meeting November 5, 2003 Page 5 of 17 capacity limits that the state requires, but also provide clean water into the Russian River. Ms. Burck explained that if a person sells a house and another person buys it, they are in affect buying not just the house, but also the connection that the previous person paid for. Councilmember Andersen inquired about what would happen if the City Council approved the proposal and the Sanitation District decides that it is too high? Ms. Burck explained that the Sanitation District would have to make up the difference in their monthly user charges. The amount of money is the same and they are attempting to make it as fair and equitable as possible so that the expense of the plant that is being incurred to add capacity is borne by the people who will benefit from it. City Attorney Rapport explained that there are potential legal problems with trying to impose a connection fee on a transfer of property. It may not be classified legally as a connection fee but considered a tax and the process for imposing that kind of assessment, and in either case, may require a very different procedure than the ones being used to adopt this connection fee. City Manager Horsley summarized that Council has expressed the following concern: 1) Regarding a possible transfer tax when homes are sold; 2) Determine the fee by the number of fixtures within the house or module; 3) Connection fee amortized over time into monthly fees; 4) If too much money is collected, is there a possibility for rebates and how would that be done; 4) Refine and encourage affordable housing; and 5) Provide a discount for Iow income housing developments. Director Stump advised that there is a fee on the building permit application based on the number of fixtures and that money goes to the utility. Since the fee structure is currently in place, there could be some modification that would help the Council modify its action if Council adopts the Ordinance at this meeting. Councilmember Baldwin thought that staff could use this data to calculate a varied rate structure, based on the number of toilets in the new dwellings. Councilmember Andersen discussed ways in which the census data and a GIS system could break down the information geographically. He expressed his concern with the data reporting that there would be only 1% increase in growth of sewage per year. He suggested staff explore what other jurisdictions have done and felt there is more work to be done. Councilmember Smith suggested that, instead of adopting the Ordinance, Council direct staff to bring the Ordinance back in a couple months and after the Sanitation District has had an opportunity to review it. The information requested by Councilmembers Baldwin and Andersen could be presented to Council at that time. Regular City Council Meeting November 5, 2003 Page 6 of 17 Mayor Larson was of the opinion that the longer the City puts this off, the more expensive the connection fee could become. A program could be established to amortize those fees so Iow income-housing developers can continue to build and spread those costs out. He was supportive of adopting the Ordinance as presented with the recommendations that further analysis be obtained. Councilmember Baldwin expressed the need to create a process so that this fee does not apply to Iow-income housing that is going to be constructed. Units that are guaranteed by law to always remain below market value, the fee should be cut in half or more for such units. M/S Andersen/Smith to delay the implementation of the Ordinance for two months and to be agendized at the second meeting in January, for Staff to return to Council at that time with an Ordinance that incorporates affordable housing elements and an analysis and study of connection fees based on the number of fixtures as well as other items listed by the City Manager, and not adopt the Ordinance at this time. City Attorney Rapport expressed his concern that if Council continues to go the way they are going and prepayments are permitted, there could be a stampede of people coming to City Hall and prepaying fees. If Council does pass the motion, that it should also consider a motion that would instruct Staff not to accept prepayment of fees and to only allow for the payment of connection fees where they are actually issuing a building permit. City Manager Horsley explained that there should be an exception for those that have gone through the process and have been approved by Planning as amended by the City Attorney in the proposal. M/S Andersen/Smith amending the motion to incorporate the issues expressed by the City Manager and City Attorney. Mayor Larson discussed finding a way to lower an affordable housing connection to $4,000 and if it would mean increasing the non-affordable housing connections to $12,000. Motion carried by the following roll call vote: AYES: Councilmembers Andersen, Smith, and Baldwin. NOES: Councilmember Rodin and Mayor Larson. ABSTAIN: None. ABSENT: None. Recessed: 8:55 p.m. Reconvened: 9:07 p.m. 3A-46 9. UNFINISHED BUSINESS 9a. Discussion of Improvements To Thomas PlaT~ It was the consensus of the City Council to continue the matter to the next meeting. 3A-55 Regular City Council Meeting November 5, 2003 Page 7 of 17 9. UNFINISHED BUSINESS 9b. i. Adoption of Ordinance Adopting Chapter 8.C of Division I Of the ~kiah City Code Imposing A Transactions And Use Tax To Be Administered By The State Board Of Equalization City Manager Horsley explained that the State Board of Equalization (SBOE) contacted the City regarding the sales tax measure. They sent their model Ordinance to the City Attorney, who revised it for the City of Ukiah's use. If this measure is approved in the election, the City is then required to enter into two contracts with the SBOE; one to set up the new sales tax, and the other for on going administration and a fee with them. Also included for Council's review is a resolution calling for a special municipal election, consolidating the municipality with the presidential primary and presenting ballot measures to the voters. The measure regarding the City Clerk can be adopted by a simple majority of the voters, while the sales tax measure would require a two-thirds vote. City Attorney Rapport requested changes be made to subsection "B" on page 2 to read, "The first measure shall be considered and approved." The second sentence in that paragraph should read, "The second measure shall be considered and approved by two-thirds majority vote." Also under the third "C" should read, "The second measure __ form ..." with everything else remaining the same? He also observed on page 3, paragraph five; it should state "November 14, 2003." The Resolution would state exactly what the measures would say, would call for the election, and authorize the City and County to enter into an agreement that would allow the County to conduct the election on behalf of the City. He explained that the Ordinance is written so that it could be incorporated into the City Code and it amends the Code to add a new "Chapter 8C". He referred to page 5 of the Ordinance and noted the City has discretion, "Article 3 Permissible Uses of Transaction and Use Tax, Section 1746" includes the expenditure plan. The measure would impose a one half percent sales tax in addition to the 7.25% that's currently charged in the City. There is no termination date and the way the Ordinance is currently written, it's an on- going tax increase. Discussion continued with regard to the increase in costs for retirement, pension, and salaries, as well as maintaining the level of service that public safety, both police and fire, provide. It was noted that the way in which the Ordinance is written, it does provide some flexibility to the City depending on unforeseen circumstances in the future. Educating the voters on the City's budget situation was seen as a prime necessity to the passage of the measure. A brief discussion followed with regard to specifying the number of new officers the proceeds from the tax would provide. Staff continued to discuss the status with State possibly taking the Vehicle License Fee (VLF) away from cities and also pending changes to the Public Employees Retirement System (PERS). It is estimated that the revenue from the one-half cent sales tax increase would generate $1.3 million. Councilmember Smith was of the opinion that the Expenditure Plan should be more specific relative to the additional law enforcement officers and their support equipment. Regular City Council Meeting November 5, 2003 Page 8 of 17 He felt the City is mainly asking the public to approve the measure mainly for additional Police services. Mayor Larson proposed an amendment to paragraph "A" of the Expenditure Plan following the first sentence to read, "The City shall provide for a minimum of one additional patrol officer per shift." City Attorney Rapport proposed an amendment to page 6 at the end of the first line where it says, "maintain public safety services at the level available in the City in the 2003/2004 fiscal year." After some discussion among Council and Staff, it was determined that the amendment should be located after the comma and state, "with an additional three public safety officers assigned to patrol duty." Kevin Jennings, a member of the Ukiah Fire Department, expressed his concern that discussions have mainly focused on the Police service, while there is also a need for additional medics and Fire Department personnel. Emmett Jones, an accountant, suggested that the measure include hours per year so that the commander would have the flexibility to cover the City. Jim Mulheren, business owner, suggested that instead of trying to discourage businesses inside the City limits by increasing the sales tax that would drive customers outside the City, encourage businesses to expand within the City limits and generate new revenue. John McCowen advised that he is more concerned with a future ballot measure to solve the problem of the elected mayor equals the appointed Councilmember. He identified the need for more bilingual police officers. City Attorney Rapport reiterated that the Ordinance, as written, would allow the use of the proceeds from the tax to be used by Police and Fire Departments and medical services. Councilmember Andersen advised that he would feel more comfortable to not include the language concerning the additional police officers in the Ordinance. He expressed his concern with tying the hands of this Council or any future Councils around that particular promise. Discussion continued with regard to the City Attorney preparing an impartial analysis of the Ordinance. Creating an Expenditure Plan for the tax revenue was discussed. Discussion followed with regard to the difficulty of anticipating revenue, especially in light of the VLF funds and State cuts. Possible consequences of the ballot measure failing were addressed. Upon the recommendation by City Attorney Rapport, it was the consensus of the City Council to adjourn this meeting to Monday, November 17, 2003 at 3:00 p.m. Regular City Council Meeting November 5, 2003 Page 9 of 17 City Attorney Rapport explained that Council would not be able to adopt the Resolution at this time because "Attachment 1" to the Resolution is the Ordinance. 3B-190 9, UNFINISHED BUSINESS 9b. ,'i. Adoption of Resolution Calling For A Special Municipal Election For Two Ballot Measures City Attorney Rapport advised that the Council couldn't adopt the Resolution until the Ordinance is completed. The Ordinance is an attachment to the Resolution. It was the consensus of the City Council to continue the matter to Monday, November 17th at 3:00 p.m. 3B- 8. PUBLIC HEARING 8c. Adoption of Revised Community Development Block Grant Program Income Reuse Plan Risk Manager/Budget Officer Harris advised that this matter is a continued Public Hearing from the October 15th City Council meeting to allow staff the opportunity to finalize revisions to the Community Development Block Grant (CDBG) Program Income Reuse Plan. The revisions are to allow the City to utilize the grant repayments to assist Iow and moderate-income persons participating in a first time homebuyers program. He advised that the previous Reuse Plan indicated that 100% would be allocated for business expansion. Public Hearing Opened: 9:12 p.m. No one came forward. Public Hearing Closed: 9:12 p.m. M/S Smith/Andersen adopting CDBG Program Income Reuse Plan; carried by the following roll call vote: AYES: Councilmembers Rodin Andersen, Smith, Baldwin, and Mayor Larson. NOES' None. ABSTAIN: None. ABSENT: None. 3B-200 9. UNFINISHED BUSINESS 9d. A~3~3roval of Brown and Caldwell's Design Proposal For The Wastewater Treatment Plant Improvement Project Project Engineer/Manager Burck advised that at the September 3, 2003 Council meeting, a summary of the technical memoranda and design proposal prepared by Brown and Caldwell was distributed to the City Councilmembers. At this time, the City Council approval for Brown and Caldwell's design proposal is being requested to proceed with the construction drawings and to complete the environmental Initial Study. Dr. Erick Wahlberg reviewed their design proposal and presented the results of the Plant Optimization Study. He discussed the goals of the Wastewater Treatment Plant Improvement Project and noted it is needed because the plant is at capacity and that it has violated its NPDES permit on occasion. The plant has old and outdated equipment and it lacks redundancy for key process units. They have concluded that chemically Regular City Council Meeting November 5, 2003 Page 10 of 17 enhanced primary treatment can increase the capacity by as much as 15%-20%. On the safe side, they recommend that the City allow 10% more connections during the interim period. This amounts to approximately 750 connections. Removal of the percolation function is a major problem for the City because it will have to find an alternative affluent disposal to a rather significant degree. They are working with Ms. Burck and Supervisor Gall to set up a workshop with the Regional Board that should include Councilmembers to discuss delaying that permit change for as long as possible. They have also recommended that, in anticipation of this, the City develop a recycled water master plan. They recommend that the City develop a collection system master plan to identify I and I rehabilitation efforts. Wastewater Treatment Plant Supervisor Gall discussed the changes at the plant over the past few years. M/S Baldwin/Rodin approving the Waste Water Treatment Plant Improvement Project Design as proposed by Brown and Caldwell, carried by the following roll call vote: AYES: Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 10. NEW BUSINESS 10a. Discussion and Possible Action Concernin_a Providin.q Water to Property Outside the City Limits Planning Director Stump advised that Rural Communities Housing Development Corporation (RCHDC) recently approached Staff to discuss the possibility of the City providing water for a large affordable housing project outside the City limits, located in the Brush Street Triangle, and providing an Out Of Service Agreement. Staff indicated that Council's current policy is to not serve property outside the City Limits unless it was first annexed to the City. RCHDC agreed that they would allow City input in the planning and design of this project, knowing that the Council is concerned about the future designs of projects located in the Brush Street Triangle. Staff met with the County's planning staff and they agreed with allowing the City to play a major role in shaping the site planning and architecture of the project. City Manager Horsley distributed a letter from Frank McMichael, Executive Officer of Local Agency Formation Commission (LAFCO), in which he outlined the requirements the City would need to meet if it wanted to annex any property to the City or out-of-area service agreement for property outside the boundaries of the City. Director Stump advised that options available to the City Council regarding RCHDCs request are 1) Council could consider providing water to the future affordable housing project with an out-of-area service agreement if LAFCO approves it, and 2) Predicate this commitment with the provision that RCHDC commit to working closely with City Staff on site planning and design issues. John Mayfield and Rosaline Petersen spoke to the issue. Dwayne Hill, representing RCHDC, discussed the proposed project and noted that it is an opportunity for RCHDC to provide affordable housing in the Ukiah community. It is Regular City Council Meeting November 5, 2003 Page 11 of 17 his understanding that RCHDC would need to submit an application for annexation and is supportive of Staff's recommendations. He discussed negotiations with the seller of the property and that they are under a strict timeline. If the City does not agree to provide the project water, their deal may fail. He explained that they have discussed the project with Ray Hall and other County officials. Councilmember Baldwin inquired if RCHDC has submitted an application for water service with Millview County Water District or the Flood Control District. Mr. Hill stated that Millview is not interested in serving the project area. Bill Randolph was of the opinion that the project should be a planned development project. He urged the City not to change its policy on serving out-of-service area. Emmett Jones, accountant, spoke in support of the proposal. City Attorney Rapport explained that if the City Council wants to substantially preserve its policy, it could make the approval contingent on LAFCOs approval and the tax sharing agreement. Councilmember Baldwin was of the opinion that the City should leverage to the benefit of the residents of Ukiah for the creek and open space. The process of annexation needs to be initiated. Councilmember Andersen was of the opinion that it is worth reviewing the out-of- service policy concerning the issue of affordable housing. M/S Baldwin/Rodin approving the project contingent on the applicant placing an application on file with LAFCO for annexation, a tax sharing agreement with the County, and City of Ukiah design oversight, including the issue of recreational and the creek. Mr. Hill advised that RCHDC is agreeable to the conditions. Motion carried by the following roll call vote: AYES: Andersen, Smith, Baldwin, and Mayor Larson. NOES: ABSENT: None. Councilmembers Rodin, None. ABSTAIN: None. Recessed: 11:55 p.m. Reconvened: 12:05: a.m. 10. NEW BUSINESS 4B-222 10C. Status Report Regarding Efforts to Establish An Emergency Winter Homeless Shelter Planning Director Stump advised that staff has been working with the Methodist Church on Pine Street about a possible temporary winter homeless shelter this year. They were able to determine a maximum occupancy of about 86 persons. There are Regular City Council Meeting November 5, 2003 Page 12 of 17 Fire Code requirements such as smoke detectors and extinguishers that they are willing to provide and the project is moving in a positive direction. Director Stump advised that they are currently developing their Operation and Management Plan and a Use Permit application. Staff wants to provide ample notice to the neighborhood in that area and the project is tentatively set to go before the Planning Commission on November 19th. The church and support groups have conducted some outreach with the neighborhood and support has been positive. 4B-258 9. 9C. UNFINISHED BUSINESS Discussion and Consideration of Inland Water and Power Commission JPA - Continued Item City Manager Horsley advised that she distributed to Council a communication that she received this afternoon from Roland Sanford that discusses the Council's issue of concern in which they thought there could be some changes to the MOU wording to allow for third party litigations. He stated that they thought that this was in fact possible and supplied revisions to that language. Mayor Larson inquired if they reflect the County Counsel's recommendation in his memo and if this is an unofficial draft proposal. City Attorney Rapport responded affirmatively, stating that it is the County Counsel's recommendation. He explained that he has a concern with the County Counsel's proposal in that it applies to any litigation or any administrative proceedings. It's unclear to him what the words "between any commission members or any other party" means in that proposed language. If it would, the modification does not completely address the concern he had which is that one of the primary purposes of the Commission is to act as a spokesperson or spokes organization for inland water interests and provide a unified voice in dealing with outside agencies. He prepared a modification to that proposal from County Counsel that would add a sentence to that language to try to address that concern. His concern for Revised VII.F. states "F. The Commission shall not have the power to participate, by intervention or otherwise, in litigation or administrative hearings between any Commission member or members and any other party without the consent of that Commission member or members. This prohibition does not apply to administrative proceedings or legal actions arising out of those proceedings that concern water within the Eel River Watershed, the Russian River Watershed, or Potter Valley Project, except for proceedings between any member and another party respecting the members water or contract rights related to its water, unless the member consents to the Commission's participation." His concern is that the language without the modification would give any member the ability to veto the Commission's participation in a proceeding that would be of general interest to the Commission. Regular City Council Meeting November 5, 2003 Page 13 of 17 Mayor Larson polled Council with regard to the recommendation by the City Attorney and there was unanimous consensus that this was an acceptable change to the language proposed by County Counsel. Mayor Larson advised that he attended a committee meeting of the IWPC and he asked the question about what they are trying to hang on to with the Right of First Refusal and what is the protection they are asking for. He received the sense that people didn't want to be prevented from participating or relinquishing power. He thought that what they are really asking for is for the right to participate in projects. He asked them if they would be satisfied in relinquishing Right of First Refusal as an agency as long as individual members were guaranteed some right to participate in any project that any other member or the agency itself proposes or explores. He suggested that language is needed that is both legal and an explanation of the concept. City Manager Horsley explained that it was her opinion that the IWPC is very open to Mayor Larson's suggestions. They wanted to be able to participate if there was excess water in a project and to be able to participate in a project. Discussion followed with regard to the Right of First Refusal. There was also discussion regarding the matter of if there is excess water, offering it to other members of the JPA first. It was suggested that there has to be some motivation for some agencies to partner and share and to enter into some productive agreements. Councilmember Rodin thought it's a good idea and worth proposing to the County and it should be called the Right of First Participation. Discussion followed with regard to what participation means in terms of disclosure. He expressed his personal opinions concerning the matter and felt that the majority of opinions among the agencies lean towards to legal guarantees. The City Council confirmed that they were in agreement. However, Councilmember Baldwin stated that he is not in consensus if it's just to make everything voluntary. He thought that it has to be legal; otherwise he saw no reason for participating in the JPA. Richard Shoemaker, Chairman of the Mendocino County Board of Supervisors, reported on the Board of Supervisors' actions at their Tuesday meeting. The Mendocino County Water Agency Water Agency took the following actions on the IWPC agreement. They approved typo corrections on the JPA and they approved the added language that was characterized by Mr. Rossman in his letter as "feel good language". They also approved the revised wording supplied by County Counsel in the section that the City Council discussed at the current meeting. They Agency approved the deletions throughout the agreement referencing and giving the Right of First Refusal to the IWPC and they made no alterations to that language or those deletions. Rosalind Peterson, Redwood Valley, stated that since the City Council hasn't seen the exact document they are considering approving, she recommended that they take some time to look at the document and see what the County has crossed out and changed. Regular City Council Meeting November 5, 2003 Page 14 of 17 Councilmember Baldwin spoke in regard to Mayor Larson's proposal for the participation, he would be glad to present that opinion if he had it in writing and understood it better. He felt that cooperation as opposed to competition is what the whole concept of the IWPC is about. Mayor Larson stated that he is willing to put it to a vote that the City's agreement or the acceptance of the proposed amendments with the only condition being acceptance of the additional language from the City Attorney. Councilmember Baldwin reminded Council of what Antonio Rossman wrote, that it would place any project in competition with any individual other project, including an IWPC project. The Right of First Refusal has the effective result of eliminating such competition because the Commission's fundamental purpose is stated as one of a united, coordinated, orderly, positively, and more effective means protecting and enhancing the County's water resources. The amendment can be seen as weakening this intent. Councilmember Rodin was of the opinion that we might as well propose the Right of First Participation instead of excising the Right of First Refusal language. M/S Andersen/Larson approving the County's recommendation regarding the Right of First Refusal with the caveat that the Right of First Participation be evaluated and considered by all parties to the JPA as substitute language. Discussion followed with regard to the pending motion. Motion carried by the following roll Andersen, Smith, and Mayor Larson. None. ABSENT: None. call vote: AYES: Councilmembers Rodin, NOES: Councilmember Baldwin. ABSTAIN: 9. UNFINISHED BUSINESS 9e. Approval of The Railroad Depot Pocket Park Plan Community Services Supervisor Sangiacomo advised that the City secured an agreement with the railroad to use a portion of depot land. The current proposal is for the City to install street trees along the Perkins Street frontage and construct a small pocket park on the triangular piece east of the railroad tracks, between Perkins Street and Gibson Creek. It is estimated that the landscape and asphalt portion of the project would cost approximately $25,000. The monument sign will be an additional cost of $5,000 to $15,000 depending upon the design. The City applied for a grant with the California Conservation Corps (CCC) for $5,000 in matching labor. He proposed that the Redevelopment Agency fund the project through the Capital Improvement Streetscape account. A budget amendment has been submitted to the Redevelopment Agency for consideration pending Council's approval of the design plan. Discussion followed with regard to the design of the pocket park as well as the possibility of locating a skatepark near the area and the need for additional parking. Regular City Council Meeting November 5, 2003 Page 15 of 17 M/S Smith/Andersen Approving the Railroad Depot Pocket Park plan, carried by the following roll call vote: AYES: Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 10. NEW BUSINESS 10b. Approval of Amendment to Solid Waste Management Authority Ground Lease~ Allowing Expansion of Hazmat Receiving Hours and Renewal of a One-Year Lease City Manager Horsley advised that Mendocino Solid Waste Management Authority (MSWMA) currently has a five-year lease with the City, which will expire in October 2005. She discussed the request to extend the lease to 2006 at which time it becomes County property and allow receipt of public for hazardous waste dropped off at certain times on Tuesdays and the second Saturday of every month. Councilmember Andersen was of the opinion that the extension of the lease with MSWMA is very good for Ukiah residents. M/S Andersen/Smith Approving modifications to MSWMA lease, as described in the Staff Report, carried by the following roll call vote: AYES: Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 9. UNFINISHED BUSINESS 9f. Discussion and Possible Action Regarding Mendocino County Office Of Education's Proposal to Purchase City Pror~ertv City Manager Horsley advised that this item would be discussed in Closed Session. 10. NEW BUSINESS 10d. Consideration and Cancellation of November 19 City Council Meeting It was noted that the City Council would be a meeting on November 17th. It was the Consensus of the City Council to approve cancellation of the November 19, 2003 City Council meeting. 11. COUNCIL REPORTS None. 12. CITY MANGER/CITY CLERK REPORTS None. Adjourned to Ukiah Redevelopment Agency: 1:10 a.m. Reconvened: 1:12 a.m. Adjourned to Closed Session: 1:12 a.m. 13. CLOSED SESSION a. Government Code ~54956.8 Conference With Real Property Negotiator Property: 1041 Low Gap Road, A.P.N. 001-020-09 Owner: City of Ukiah Regular City Council Meeting November 5, 2003 Page 16 of 17 Negotiating Parties: City of Ukiah/Mendocino County Office of Education Under Negotiation: Price and Terms of Payment b. Government Code ~54956.8 Conference With Real Property Ne_clotiator Property: Assessor's Parcel No. 002-232-12 Negotiating Parties: City of Ukiah/North Coast Railroad Authority Under Negotiation: Price and Terms of Payment c. Conference with Labor Negotiator G.C. §54957.6 City Designated Representative: Candace Horsley, City Manager Employee Organization: Management Unit Reconvened: 1:55 a.m. 10e. Urgency Item: Adoption of Resolution Adopting a Memorandum of Understanding between the City of Ukiah the Management Unit". M/S Smith/Baldwin Approving Memorandum of Understanding with the Management Unit, carried by the following roll call vote: AYES: Councilmembers Rodin, Andersen, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: None. 14. ADJOURNMENT There being no further business, the City Council meeting was adjourned at 1:56 a.m. Marie Ulvila, Deputy City Clerk Regular City Council Meeting November 5, 2003 Page 17 of 17