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HomeMy WebLinkAboutMin 06-09-04 (spec.)MINUTES OF THE UKIAH CITY COUNCIL Special Joint Meeting of the Ukiah City Council And Ukiah Valley Sanitation District Wednesday, June 9, 2004 The Ukiah City Council met at a Special Joint Meeting with the Ukiah Valley Sanitation District (UVSD) on June 9, 2004, the notice for which had been legally noticed and posted, at 4:00 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Rodin, Andersen, Baldwin, and Mayor Larson. Councilmember absent: Smith. Staff present: Water-Utilities/Project Engineer Burck, Wastewater Treatment Manager Gall, City Manager Horsley, Public Utilities Consultant Kennedy, City Attorney Rapport, Public Utilities Director Ziemianek, and Deputy City Clerk Ulvila. Ukiah Valley Sanitation District Board Members present: Shoemaker, Baldwin, and Chairman Delbar. Ukiah Valley Sanitation District Secretary Rau was also present. 1. JOINT MEETING BETWEEN THE UKIAH VALLEY SANITATION DISTRICT AND THE UKIAH CITY COUNCIL: a. Discussion and Possible Action Relative to a Recommendation for the Establishment of a Fair Share Allocation of the Remaining Capacity at the Waste Water Treatment Plant Created by the CEPT Program Interim Public Utilities Consultant Kennedy provided a historical overview of the Wastewater Treatment Plant (WWTP) capacity, noting that additional capacity has been realized on an interim basis at the City's WW'I'P with the implementation of the Chemical Enhancement to the Primary Treatment (CEP'I') Program. He noted that the CEPT program was interim and has been recommended for discontinuation upon completion of the capacity and rehabilitation improvements. He further described that staff is recommended that the City/District limit new connections in order to remain in compliance with the Waste Discharge Permit requirements. He proceeded to describe aspects of the CEPT program, the number of ESSU's currently available, as well as future predictions associated with ESSU's. He noted that the basis upon staff's proposed maximum values; the "split" of the available ESSU's would be 23% (City) and 77% (District). Discussion ensued with members of the District and City Council commenting regarding the following: · Staff's growth projections based upon current market conditions; · The proposed ESSU split between the City and the District; · Potential conflicts considering current development within the City limits, as well as within the District's jurisdiction; · Fair share allocation of the projected ESSU's, procedural and legal elements associated with one agency reaching the fair share of the ESSU's and staff's recommended "self- imposed" moratorium; · Other methods to consider regarding the distribution of ESSU's; · Impacts and elements associated with potential future annexation. Mr. Kennedy noted that the 1995 "Participation Agreement" between the City of Ukiah and the Ukiah Valley Sanitation District (District) does not specifically authorize the City or District to limit Special Joint Meeting of Ukiah City Council and Ukiah Valley Sanitation District June 9, 2004 the number of connections to each other's collection system, noting that should either party choose to implement a limitation of available ESSU's for either entity, an amendment to the Participation Agreement will be required. It was the consensus of the City Council and the District to direct staff to present the recommendations of the City/District to City/District Counsel for review and preparation of an amended Participation Agreement between the City and the District for a fair share allocation of the remaining capacity at the WWTP providing for the split of 77/23% (as proposed by staff). Further, directing that City/District Counsel(s) prepare provisions within the amended agreement to address the event of one agency reaching their maximum ESSU's (the agreement may come back to the table for renegotiation). Further, said amended agreement is to be presented to the City/District for review and consideration in the near future. b. Discussion and Possible Action Regarding Various Issues Pertaining to Proposed Sewer Connection Fees that are Needed to Fund the Contemplated Capacity Improvements to the Waste Water Treatment Plant Interim Public Utilities Consultant Kennedy provided an overview of the topic, reporting that the City and District have recently adopted revised fee structures related to connection fees. Discussion ensued regarding variations between the two fee structures, with Director Shoemaker noting the desire for consistent fee structures for each agency (City/District). Discussion continued regarding current committed ESSU's within the District and the City, clarification regarding hotel/motel connection fees with the District vs. the City, the potential to address commercial connection fees within the District, the process utilized in preparing for and considering fees (suggesting joint meetings prior to assessing and adopting fees), and related matters. Mr. Kennedy inquired regarding the District's previous request for a value engineering study (which was requested as a result of the District's concerns regarding the costs associated with the contemplated capacity improvements to the WWTP), and the timelines leading up the WWTP Upgrade project. Director Delbar expressed concern regarding insufficient District involvement with the WWTP Upgrade project; specifically the award of the project to the contract, with resulting discussion ensuing regarding aspects related to a potential value engineering study, costs projections associated with such a study (roughly estimated at $55,000-$65,000), the request for proposal process utilized in awarding the contract, and staff's process utilized in selecting and awarding the contract. Responding to Director Delbar's inquiry, Public Utilities Department Water-Utilities/Project Engineer Burck provided clarification regarding the bid selection process. Further discussion followed regarding the advantages and disadvantages associated with a potential value engineer/peer review, concerns and clarification regarding the District's insufficient review of the project, aspects associated with sharing of the costs related to the proposed value engineering study, timing issues related to the project and potential impacts Special Joint Meeting of Ukiah City Council and Ukiah Valley Sanitation District June 9, 2004 resulting from conducting a value engineering study, the desire to continue the design phase of the project parallel with the value engineering study, and related matters. It was the consensus of the City Council and the District to direct staff to proceed with conducting a value engineering study, moving forward with the RFP process, parallel to the design of the project, with the cost share of the study to be determined within the overall costs of the project. c. Discussion and Possible Action Regarding the City of Ukiah/Ukiah Valley Sanitation District Participation Agreement Interim Public Utilities Consultant Kennedy and City Manager Horsley commented regarding the various aspects of the current City/District Participation Agreements, and providing clarification regarding various cost sharing elements contained within the joint Participation Agreement. City Attorney Rapport suggested that based upon criteria contained Participation Agreement, a separate agreement be agreed upon to apportionment for costs associated with the VWVTP Upgrade project. within the current address the cost Discussion ensued regarding the connection fees, the current cost sharing apportionment established between the District and the City, the formula utilized in determining the cost apportionment contained within the current Agreement, as well as that proposed under the fair share allocation discussion, and related matters. Recessed: 4:55 p.m. Reconvened: 4:59 p.m. Director Delbar expressed concern regarding the discussion related to the cost apportionment, noting that District Counsel was unable to be present, recommending that City/District Counsels be directed to work in collaboration to develop proposed amendments to the joint Participation Agreement for review at the June meeting of the City/District, during which time the budget will also be discussed. City Manager Horsley provided further clarification regarding the basis for the fee structure contained within the Participation Agreement and aspects related to the Bonding process utilized in funding the WVVTP Upgrade project. It was the consensus of the City Council/District to direct City/District Counsel(s) to develop proposed amendments to the joint Participation Agreement, including proposed cost apportionment, for joint review at the next meeting of the City/District budget will also be discussed. It was the consensus of the District to schedule a joint meeting between the District and the City Council for June 30, 2004, commencing at 3:00 p.m. for the purpose of discussion and review of the District budget. m OTHER BUSINESS: Special Joint Meeting of Ukiah City Council and Ukiah Valley Sanitation District June 9, 2004 None. a. Public Expression None b. Announcements/Other Business City Manager Horsley requested that the City Council remain in session after adjourning from the Joint Meeting with the UVSD, to consider another matter unrelated to the UVSD. c. Set the Next Meeting of the Ukiah Valley Sanitation District It was the general consensus of the District to schedule the next meeting of the District on June 23, 2004 to discuss various aspects related to the District budget (review draft budget prior to June 30, 2004, Joint City/District meeting), as well as review the draft amendments to the City/District Participation Agreement. d. Adjournment Mayor Larson adjourned the meeting at 5:08 p.m. Marie Ulvila, Deputy City Clerk Special Joint Meeting of Ukiah City Council and Ukiah Valley Sanitation District June 9, 2004