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HomeMy WebLinkAboutMin 12-17-03 MINUTES OF THE UKIAH CITY COUNCIL REGULAR MEETING WEDNESDAY, DECEMBER 17, 2003 The Ukiah City Council met at a Regular Meeting on December 17, 2003, the notice for which had been legally noticed and posted, at 6:32 p.m. Roll was taken and the following Councilmembers were present: Rodin, Smith, Baldwin, and Mayor Larson. Councilmember absent: Andersen. Staff present: Administrative Analyst/Project Manager Burck, Community Development Director DeKnoblough, Finance Director Elton, Risk Manager/Budget Officer Harris, City Manager Horsley, Interim Public Utilities Director Kennedy, Acting City Attorney Marston, Fire Chief Latipow, Accounting Manager McCann, Electrical Distribution Engineer Sauers, Public Works Director/City Engineer Steele, Planning Director Stump, and Deputy City Clerk Ulvila. 2. PLEDGE OF ALLEGIANCE Administrative Analyst Ann Burck led the Pledge of Allegiance. 3. PRESENTATION/PROCLAMATION None. 4. APPROVAL OF MINUTES 4a. Regular Meetin~ Minutes of September '17, 2003 MIS Baldwin/Smith approving the Regular Meeting minutes of, September 17, 2003 as presented, and carried by a unanimous voice vote. 5. RIGHT TO APPEAL DECISION Mayor Larson read the appeal process. 6. CONSENT CALENDAR MIS Smith/Baldwin approving item "a" through "d" of the Consent Calendar as follows: a. Approved Disbursements for Month of November 2003; b. Approved Notice of Completion For Gobbi Street Class 2 Bike Lane From Orchard Avenue To Babcock Lane, Specification No. 03-06; c. Received Report Of Disposition Of Surplused Materials; d. Awarded Purchase Of Liquid Polymer To Polydyne Inc. In The Amount Of $7,500 Plus Tax, Bid Specification POLY-50. Motion carried by the following roll call vote: AYES: Councilmembers Rodin, Smith, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: Andersen 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward to address the City Council. Regular City Council Meeting December 17, 2003 Page 1 of 10 9. NEW BUSINESS 9a. Discussion and Possible Action Regarding The "City of Ukiah Busines~ Enhancement Program". City Manager Horsley advised that in early 2001 the City applied for and received a Jobs Housing Balance Program Grant from the State Department of Housing and Community Development (HCD) in the amount of $100,000. $25,000 of the grant funds were spent for the strategic plan, which the City Council adopted on January 15, 2003. The balance of $85,000 was allocated to implement the recommendations in the strategic plan. As part of that implementation, Applied Development Economics (ADE) was subsequently retained by the City to prepare the Business Enhancement Program. ADE conducted a series of business focus group sessions aimed at identifying policies and actions the City can take to improve the local business climate, thus aiding existing businesses as they expand, and also more effectively recruiting new businesses. Kathryn Studwell, Regional Development Strategist hired by ADE, provided a presentation to the City Council that included an overview of existing tensions that threaten prosperity in Ukiah. She advised that the economy needs from the community include housing for workers and speediness of government to process building permits, and the permit process in general. Wes Irvin discussed implementing measures to overcome massive constraints such as limited resources, declining civic budgets, no available staff, and many other priorities and crises. The City should look into annexing land for business and housing, staff a City business advocate, create an official business advisory committee, clarify permit and entitlement processes, update and upgrade the City's Website, and distribute brochures that promote the City of Ukiah. City Manager Horsley advised that water and housing directly affect businesses. Business groups would like to see more cooperation between the City and the County. She noted that Council has hired an annexation consultant to devise a tax sharing plan that will be reviewed by both the City and County. Staff will continue to work on brochures for recruitment of businesses. The City's Web site will be updated and upgraded in cooperation with EDFC, the County, and the Chamber of Commerce. She reported that the City would like to recruit a business advocate using grant funds to be employed for one year and she thought that a business advisory committee is a good idea. Councilmember Baldwin stated that there are many reasons to stress the quality of life in Ukiah and to promote Ukiah's talented community. Mayor Larson noted that, considering Ukiah's high unemployment rate, he felt that it is important that unemployed workers be retrained and their job skills upgraded. MIS Smith/Rodin accepting the report, directing Staff to submit it to HCD, and directing Staff to continue implementation of the recommendations contained therein, and carried by unanimous consent. Regular City Council Meeting December 17, 2003 Page 2 of 10 8. PUBLIC HEARING 8a. Introduction of Ordnance Amending The Airport Industrial Park Planned Development Ordinance By Establishing New Regulations For The 32-Acre Mixed-Use Area Planning Director Stump explained that at the Council meeting of December 3rd, a public hearing was conducted and the Planning commission's recommendations were discussed concerning revisions to the regulations of the Industrial Mixed-Use area in the Airport Industrial Park (ALP). The City Attorney has provided additional suggestions for the City Council to consider before introducing the Ordinance to amend the mixed-use regulations in the Airport Industrial Park Planned Development. He recommended Council conduct a public hearing to adopt the Mitigated Negative Declaration and introduce the Ordinance by title only. Public Hearing Opened: 7:26 p.m. No one came forward. Public Hearing Closed: 7:26 p.m. MIS Smith/Baldwin approving a Mitigated Negative Declaration for the Airport Industrial Park Planned Development Ordinance Amendment No. 03-46, carried by the following roll call vote: AYES: Councilmembers Rodin, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: Councilmember Andersen. MIS Baldwin/Smith introducing Ordinance by title only including the seven recommended changes submitted by the City attorney in the Memo from the Planning Department dated December 17. Councilmember Baldwin discussed the location of box stores in the City and questioned their compatibility of light manufacturing businesses with upscale hotels. Mayor Larson pointed out that this is the first time that a planned development has been amended in a non-project driven manner. Motion carried by the following roll call vote: AYES: Councilmembers Rodin, Smith, and Mayor Larson. NOES: Councilmember Baldwin. ABSTAIN: None. ABSENT: Councilmember Andersen. Deputy City Clerk Ulvila read the title of the Ordinance, "Ordinance of the City Council of the City of Ukiah amending the Airport Industrial Park Planned Development". MIS Smith/Rodin introducing Ordinance, and carried by the following roll call vote: AYES: Councilmembers Rodin, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: Councilmember Andersen. w NEW BUSINESS Report Regarding Potential Loss Of Vehicle License Fees And Impacts To The City Of Ukiah Budget Regular City Council Meeting December 17, 2003 Page 3 of 10 City Manager Horsley advised that the state legislators had originally agreed to raise the Vehicle License Fees (VLF) back to the rate it was about four years ago. However, when Governor Schwarzenegger came into office, one of his promises during his campaign was to repeal it, which he did. This is a problem because it is a mainstay of revenue to the cities and the counties. As of December, the City of Ukiah will have the potential loss of the VLF in the amount of $600,000 a year. She reported that other cities have a greater loss of revenue and are taking drastic measures, such as a disincorporating their city or declaring bankruptcy. She explained that Staff will come back to the Council to discuss the mid-year budget, Council goals, and potential saving and revenue. City Manager Horsley explained that even if the City took steps to reduce expenses, such as closing the swimming pool, closing the museum, closing down special programs such as youth sports, and street sweeping, the City would not be near reaching the amount of loss from the VLF. The City is already experiencing an economic slowdown. The state is now going to try to fix their woes by taking more money from cities. She has discussed the matter with the Police Chief and Fire Chief. Currently, there are three police officers on shift and she spoke to the Police Chief about having only two officers on shift. It was Police Chief Williams' opinion that it would be a concern of public safety in the community. She noted that 75%-80% of the General Fund is personnel costs. Council may need to look at increasing fees for certain services. The Regional Water Quality Control Board will begin charging the City an hourly rate for meeting with City Staff. A lot of the state's fees are doubling for permits as they are trying to cover their costs at the local level. She stated that as part of the information the City was given, a recent survey of police departments conducted by the California Police Chiefs Association showed that with only 60% of the departments reporting, 623 sworn positions have already been cut from local budgets and if the VLF backfill does not occur, another 729 police positions will be laid off statewide. She explained that she has put a hold on all General Fund positions at this time. Mayor Larson noted an impetus for this discussion is to begin creating more of a public awareness both locally and in Sacramento as to the direct affect it will have on the quality of life of the citizens and business owners in the City of Ukiah. The City is already putting a hold on any additional expenditures that are already budgeted and approved for this year. That money will not be spent until there is some reassurance that there is a revenue source to cover it. Mayor Larson noted that if on-going maintenance costs are not met, the City could be depleting assets that would not allow it to recover. Those things need to be discussed further. He would like to see, if and when the Council has to look at real cuts in expenditures, if there are some services the City provides that are funded out of dedicated revenues, similar to Gas Taxes being used only for streets Regular City Council Meeting December 17, 2003 Page 4 of 10 Councilmember Smith discussed getting the information to the public as soon as possible so the public will understand how it will affect the City's services. He thought it is a good idea to pursue a press release to inform the public. City Manager Horsley reported that the City employees are very concerned and many of them have taken on double duty since the City made cuts last time. They have been working a lot of hours and have been doing many things to provide services without showing any gaps. Whether it's having different hours at City Hall or whatever we have to do to try to make this work, raising revenues will be her first recommendation. John Latimore, 615 Spanish Canyon Drive, suggested that the Council consider another alternative in addition to the two suggested by the City Manager. Enhancing the economy and taking aggressive steps to do so will grow that economic engine. City Manager Horsley advised that the City Council has approved the downtown business plan and staff has budgeted for the improvement of the downtown State Street area. That is already in progress. James Mulheren stated that he enjoyed the earlier presentation to Council and noted that it was said that increasing tension threatens prosperity and quality of life. He liked Mr. Latimore's point about increasing the economy as opposed to stifling it and generating revenue from that. Mayor Larson explained that when that fee was reduced four years ago, the agreement was that if the state was unable to backfill or make up that loss to local government, the VLF tax would automatically be reinstated. City Manager Horsley advised that out of seven cents, the City of Ukiah gets one cent of the sales tax. Acting City Attorney Marston discussed the City's generation of revenue and the Revenue and Taxation Code. City Manager Horsley advised that it's easier to say that out of seven cents, the City of Ukiah gets one cent. Mayor Larson advised that there is an initiative in the process to draw the line at a constitutional amendment that would not allow the legislature to take any more locally generated revenues than are currently taken without a vote of the California electorate. City Manager Horsley explained that the League is requesting the City send its response to them concerning its potential loss. The response will also be sent to Ukiah's legislators. In January staff will bring to Council some short term and long term options. There was general discussion concerning the press release to the media. It was the consensus of the City Council that the City Manager should complete the questionnaire. There was a brief discussion concerning revisions to the sample Press Regular City Council Meeting December 17, 2003 Page 5 Of 10 Release so it would suit Ukiah more. It was also the consensus of the Council that Mayor Larson will review the Press Release and sign it. Councilmember Rodin will also assist with wording of the Press Release. The Press Release should include both the Mayor and City Manager's signature. Recessed: 8:12 pm Reconvened: 8:20 pm 9. NEW BUSINESS 9c. Status Report Regarding Ukiah's Water System Improvement Project Administrative Analyst/Project Engineer/Manager Burck provided an update to the City Council on the status of the Water System Improvement Project (Project). There are two main components of the water system improvement project. There is the addition of the storage tanks that are to be sited above the Golf Course and one that is proposed to be sited at the water treatment plant itself. Staff is suggesting that the project be separated into two parts. The first stage would be construction of the water tanks and stage two would be the upgrades to the water treatment plant itself. She reviewed the status of the City's water project and the deficiencies that were brought out in an audit conducted by the Department of Health Services. She also updated the Council on the status of the water system and discussed the current status of water source capacity for the City. She went on to discuss problems with the Ranney collector and decrease in capacity. A general discussion followed concerning the report and the condition of the water treatment plant. Administrative Analyst Burck discussed the status of the City's wells and noted that the data that is collected on the water to try to determine which wells were under the influence of surface water and which wells are not. Typically, one of the factors that are looked at is turbidity. It is staff's contention that well ~4 is not under the influence of surface water from the Russian River. She reiterated that the City's maximum source capacity was seen in August, was 6.57 million gallons. In the past 10 out of 11 years, that peak day has occurred either during the last two weeks of July or the first two weeks of August. That average value for the last 11 years was about 7.07 million gallons per day. Our demand exceeds our source capacity by about half a million gallons per day during that high demand period in July-August. The Stat's regulation allows you to meet you maximum day demand through a combination of your source capacity and your storage capacity. That is one of the reasons that they are requiring the City to add additional storage capacity is because the City is so short relative to our demand on our source capacity. The City also needs to quickly begin looking at alternate sources of water. One of the alternate sources is by reducing demand. One of the things that Staff feels would be a good measure to consider would be a voluntary Water Conservation Program for the last two weeks in July and the firs two weeks in August. Regular City Council Meeting December 17, 2003 Page 6 of 10 City Manager Horsley noted that the citizens of Ukiah have always been very quick to help out with reducing their water use whenever the City has asked them. The City would provide an educational program that would be sent with the billing statements and to remind them in July and August until the City finalizes and gets the construction on line and our water source is completed. Administrative Analyst Burck explained that if the project can be separated and accelerate construction of the tanks, the tentative schedule is to begin construction of the storage tanks in May and have them completed in October 2004. there will be three million gallons in Zone #1 and 315,000 gallons in Zone #2, for a 3.3 million gallon increase. She advised that the City does need a water Conservation program and it also needs to begin planning for recycled water use. A general discussion of the situation followed between Council and staff. Councilmember Baldwin noted that about six months ago, someone suggested that the Council discuss the idea of metering private wells in the City limits to monitor the potential impact on the City's well that is groundwater. He felt the City should be concerned about the creeks and how they impact the City's groundwater and if the Lorraine Street well is groundwater, we need to try to protect it. Mayor Larson assumed we would have to do some kind of financing. He discussed the possibility of having to do a staggered rate increase to cover the initial costs. There may also be additional costs in the future to procure water rights or through the development of additional storage facilities. Administrative Analyst Burck stated she will come back to the City Council for approval of a change order to the original consultant's contract to cover the additional cost of separating the project into two projects to allow the City to continue with the construction of the storage tanks as quickly as possible. She noted that in March 2004 staff will be bringing back to Council recommendations for a voluntary Water Conservation Program and ask people to participate during the last two weeks of July and the first two weeks of August. She advised that she met with Chris Pettigo a couple of weeks ago. He works for Reed Smith and is a sub-consultant helping the City to acquire grants and alternate sources of funding for the wastewater treatment plant project. He brought by a copy of the Congressional Record from the 108th Congress. It's the Congressional Appropriations Bill that has been passed by the House and it goes for a vote to the U.S. senate in January 2004, and hopefully is signed by the President. The City of Ukiah is on page H12733 as item #99. She noted the hard work of the Mayor and Councilmember Smith, as well as Senator Feinstein. 9. NEW BUSINESS 9d. Approval Of City Of Ukiah Electric Utility Renewable Portfolio Standard Electrical Distribution Engineer Sauers advised that Section 387 of the California Public Utilities Code (PUC) was amended by Senate Bill 1078 in September 2002 outlining a statewide goal and requirement of Investor Owned Utilities (IOU) to obtain Regular City Council Meeting December 17, 2003 Page 7 of 10 20% eligible renewable resources by 2017, and increasing current resources 1% annually until the goal is reached. As a municipal electric utility, the City of Ukiah is exempt from this resource requirement, however, municipalities are required to implement and enforce a local Renewable Portfolio Standard (RPS). They also want the City to report its power mix and any Public Benefit Funds that are paid out for renewable energy development. The City of Ukiah includes hydroelectric, geothermal, solar, wind, digester gas and tidal current in its definition of renewable energy. As noted, the City's power mix reflects over 75% total renewable resources and over 50% of state defined renewable resources. As required by SB 1078, the City of Ukiah Electric Utility recommends approval of a Renewable Portfolio Standard that outlines Ukiah's current power mix and commits to evaluating future resource investments for environmental as well as economic benefits, and annual reporting of the expenditures of public benefits funds for renewable energy resource development and descriptions of all energy efficiency and renewable generation programs to customers. Councilmember Rodin inquired about the table included in the Report and inquired as to why the percentages for real usage is going down and the forecasted years. Electrical Distribution Engineer Sauers explained that as the City's load increases that takes into consideration growth and how the City's load is going to grow. She went on to explain the table to Council. She explained that all of our energy is pooled and it's divided depending on the demand of the City. Therefore, some months we might actually receive more in hydroelectric and some months more in geothermal, etc. Mayor Larson explained that many IOU's are being required to become greener which makes the demand and the competition for renewable sources of production greater. We have a surplus as far as our mix in relation to the rest of the state. He inquired if there would be any benefit to the City in exploring becoming less renewable by selling off the green producing interests to someone who needs the credit. Electrical Distribution Engineer Sauers explained that because the City of Ukiah is so small our percentage ownership in each of these is small. Another issue is that the City would have to obtain the power from somewhere else. The City would have to consider possibly purchasing more coal or something else. Councilmember Smith explained that the IOU's have to meet the 20% by 2017. Our projections show that in the year 2017, the City will be at 80%. Councilmember Baldwin inquired if Ms. Sauers' staff has investigated the possibility of using the gas production at the sewage treatment plant to generate electricity. MIS Smith/Baldwin approving City of Ukiah Electric Utility Renewable Portfolio Standard and Authorizing Staff to submit it to the Northern California Power Agency (NCPA), carried by the following roll call vote: AYES: Councilmembers Rodin, Smith, Baldwin, and Mayor Larson. NOES: None. ABSTAIN: None. ABSENT: Andersen 10. COUNCIL REPORTS Regular City Council Meeting December 17, 2003 Page 8 of 10 Councilmember Rodin reported that she attend the Russian River Watershed Association meeting. She attended the Chamber of Commerce Board meeting this morning. They are looking into the Business Improvement District (BID) and it is now broken down from one Countywide BID to know there might be regional BID's that would contribute certain proportions to MCA. She also attended a meeting of the Guild. Councilmember Smith reported that he attended a meeting of the Main Street Program Board and they are planning a retreat during the month of January in order to outline some objectives for the coming year. One of the things they are working at is expanding the Main Street Sphere of Influence and recruiting new businesses in the district to become members of the Main Street Program. NCPA will be having their annual Strategic Workshop in January 21st and 22na and Councilmember Andersen, Councilmember Smith's alternate, and he will also be attending the Workshop. The purpose of the Workshop is to strategize for the Washington, D.C. trip. While in Washington, they will be meeting with Senator Diane Feinstein and he will take that opportunity to extend the City's appreciation and thanks for her including the City. Councilmember Baldwin reported that he attended a meeting of the Inland Water and Power Commission. He was appointed to a subcommittee that the City Manager has also been attending. Today he attended a rather lengthy meeting of the Ukiah Valley Sanitation District Board. The most interesting thing about the meeting, other than Ann Burck's very articulate report, was that Supervisor Delbar was not ready to support increased fees until he gains a greater understanding of why the City selected what appears to be the most expensive option in terms of designing firms. He noted that they briefly discussed the issue of the impact of septage on the project. He advised that during the next six weeks he hopes to bring an issue to the Council regarding lighting pollution. Mayor Larson explained that Planning Director Stump is also working on information concerning lighting and Councilmember Baldwin may want to contact him. He reported that he went to a Christmas tree lighting ceremony. He attended the Police Officers annual holiday dinner as well as the employee appreciation dinner. On Monday, he attended the Sun House Guild reception. Councilmember Rodin referred to information received in the mail concerning eminent domain and the Palace Hotel. She received a telephone message to have the matter included on the City Council agenda soon. Councilmember Smith advised that Heidi Meyer sent the information and she is affiliated with the Historical Society and she would like the City to do something about the Palace Hotel. City Manager Horsley explained that she will bring information to the Redevelopment Agency concerning the Palace Hotel 11. CITY MANAGER/CITY CLERK REPORTS Regular City Council Meeting December 17, 2003 Page 9 of 10 City Manager Horsley advised that the Police Department lost one of their clerks who went to another position in the City. They also just had a police officer move to Lake County. 12. CLOSED SESSION None. 13. ADJOURNMENT There being no futher business, the City council meeting was adjourned at 9:26 p.m. Marie Ulvila, Deputy City Clerk Regular City Council Meeting December 17, 2003 Page 10 of 10