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HomeMy WebLinkAboutMin 04-18-01MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, April 18, 2001 The Ukiah City Council met at a Regular Meeting on April 18, 2001, the notice for which had been legally noticed and posted, at 6:30 p.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. Roll was taken and the following Councilmembers were present: Larson, Smith, Libby, Baldwin (6:32 p.m.), and Mayor Ashiku. Staff present: Customer Service Supervisor Archibald, Public Utility Director Barnes, Administrative Analyst Burke, Community Services Director DeKnoblough, Police Administrative Captain Dewey, Finance Director Elton, Assistant City Manager Fierro, Wastewater Treatment Plant Supervisor Gall, Interim Fire Chief Grebil, Risk Manager/Budget Officer Harris, City Manager Horsley, City Attorney Rapport, Deputy Public Works Director Seanor, Planning Director Stump, Police Chief Williams, and City Clerk Ulvila. Mayor Ashiku, on behalf of the City Council, congratulated Mark Hedges, Ukiah Daily Journal reporter, on his engagement and wedding this weekend. Urgency Item: M/S Smith/Larson to include the item on the Agenda, carried by unanimous consent. Councilmember Baldwin absent. 2. PLEDGE OF ALLEGIANCE Mayor Ashiku led the Pledge of Allegiance. 3. PROCLAMATIONS 3a. Workers Memorial Day in the City of Ukiah -April 28, 2001 Mayor Ashiku read a Proclamation designating April 28, 2001 as Workers Memorial Day in the City of Ukiah in recognition of workers killed, injured, and disabled on the job. Terry Poplawski, President of the National Letter Carriers (NALC)), accepted the Proclamation, and thanked the City for co-sponsoring this event. 3. PROCLAMATIONS 3b. National Association of Letter Carriers (NALC) National Food Drive Day in Ukiah Mayor Ashiku read a Proclamation designating May 12, 2001 as NALC National Food Drive Day in Ukiah and urged all citizens to take part by placing a food donation by their mailbox on Saturday, May 12 so a letter carrier can pick it up and deliver it to the Food Bank. Terry Poplawski accepted the Proclamation on behalf of NALC and thanked Council. 4. MINUTES 4a. Regular Meeting of March 21,2001 City Clerk Ulvila advised that the March 21,2001minutes have not been completed and will be scheduled on the next agenda. Regular Meeting April 18, 2001 Page 1 of 13 5. RIGHT TO APPEAL DECISION Mayor Ashiku read the appeal process. 6. CONSENT CALENDAR M/S Larson/Libby approving items a through h of the Consent Calendar as follows: a. Approved Disbursements for Month of March 2001; b. Received Notification to Council Regarding the Award of Bid for 5,021 ft. of 4/0 AWG Aluminum, 15 KV, XLPE Insulated, Non-Jacketed, Concentric Neutral, Single Conductor Cable to Champion Wire & Cable in the Amount of $6,285.79; c. Awarded Bid for Purchase of a Patrol Vehicle in the Amount of $24,599.30 to Esposti Auto Dealers; d. Awarded Bid for Power Pole Inspection and Treatment Contract to Osmose, inc. In the Amount of $20,000; e. Awarded Bid for Purchase of Desktop Computers, Computer Servers and Software to Dell Computer Corporation in the Amount of $59,832.80; f. Adopted Resolution No. 2001-51 Approving the Parcel Map for Minor Subdivision 00- 43 and Accepting on Behalf of the Public the Public Utility Easements Offered for Public Use; g. Approved Assistance to Firefighters Grant Program - Designating the City Manager as the Authorized Representative; h. Approved Letter of Support for the Mendocino County Youth Project's Grant Application for Funds from the Department of Health and Human Services. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward to address Council. 8. NEW BUSINESS Sa. Approval of Agreement with Ukiah Community Center for Ground Lease of a Portion of Assessor's Parcel Nos. 002-281-27 and 15 in Order to Operate a Community Garden and Authorization of City Manager to Execute Agreement Community Services Director DeKnoblough explained that the Ukiah Community Center (UCC) has been acting as lead agency for the Mendocino County Hunger Task Force (HTF). The HTF identified community gardening as a key activity that would directly address the issue of alleviating hunger and nutrition through personal food production and direct distribution. Staff was approached by Laura Golina de Lovato, Executive Director of the Community Center, about identifying sites and ways in which the City of Ukiah can participate in this effort. He discussed the property located behind the Museum parking lots. UCC has submitted a formal proposal for use of the site as a garden. The UCC would work with the Food Bank, Plowshares and several other community individuals and groups to work in the garden. The homeowners in the Cleveland Lane area are interested in developing a pocket park on Regular Meeting April 18, 2001 Page 2 of 13 the property fronting Cleveland Lane and are also interested in participating in the garden project. The proposed Lease provides for a month-to-month occupancy and staff recommends approval of the lease and the garden project. Miles Gorden, 731 Grove Avenue, discussed his involvement with the project and with working with organizations that need to provide food to the needy. He discussed contributions by local businesses for soil, mulch, and other materials for the garden as well as for creek improvements. Scoff B. Smith, Jr., 806 Grove Avenue, discussed his work with organic farms in Berkeley and how the concept of a community garden can develop to other areas of the City. He explained that he is very impressed with the leadership taken by UCC for this project and is confident the project will succeed. Mr. Garcia, Ukiah, through the assistance of an interpreter, advised that he lives in the area and plans to be involved in the garden and park project. He expressed the need for a place for children to go to a park. He went on a field trip to Berkeley to see the community garden and was impressed with it. Maria Conception Vasgo, through the assistance of an interpreter, #10 Olga Place, which is located next to abandoned property proposed for the project. She is supportive the project and felt the project brings the neighborhood and community together. City Manager Horsley explained that the City owns the property and would like to coordinate anything that happens in that area with the Sun House Guild because it was the Guild that first planted and built the gardens and park area. Discussion followed concerning the site's proximity to the tennis courts and the railroad tracks. There was further discussion of the development of the pocket park area and it was noted that more activity and programs in the area should minimize negative activities. The Community Policing Program and Ukiah Police Department are conducting patrol and enforcement for the garden site and through the property extending to Cleveland Lane. Planned development of a gravel road to provide patrol access was discussed. Laura Golino DeLovato, Executive Director of the Ukiah Community Center (UCC), explained that UCC previously received $1,000 grant from the City of Ukiah for this garden project. Councilmember Larson advised that his business is located across from Clay Street and he is very familiar with the area. Things have improved over the years and the proposed project will add to the type of activity to deter people from nonproductive activity in the area. He felt it would have a positive affect on the area. M/S Smith/Larson approving ground lease with Ukiah Community Center for a portion of Assessor's Parcel No. 002-281-27 and 15 and authorizing the City Manager to execute Agreement. Regular Meeting April 18, 2001 Page 3 of 13 Discussion followed concerning the project not requiring the review of the Planning Commission for the proposed project. However, should there be a proposal to construct structures, the proposal would then go before the Planning Commission. Councilmember Baldwin expressed his concern that if there is a housing crisis in the future, that Council determines some way to continue the garden project and possibly relocate it to another area of the City. He is supportive of the project. Mayor Ashiku thanked the public for their support to build a better community. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None 8. NEW BUSINESS Bb. Presentation to Council Relative to the Planned Expansion of the Wastewater Treatment Plant Public Utility Director Barnes explained that the purpose of the presentation is to familiarize the Council with the City's current Wastewater Treatment Plant (WVVTP) and to demonstrate the need for expansion and rehabilitation of the facilities. The WWTP currently provides wastewater treatment service for 75% of the City of Ukiah and provides wastewater service for Ukiah Valley Sanitation District (UVSD) that includes the remaining 25% of Ukiah, Mendocino College, Vichy Springs, El Dorado Estates, and other areas contiguous to the City of Ukiah. The WWTP was constructed at the current location in 1958 and he discussed improvements made through the years 1995. The Ukiah WWTP operates under permit from the California Regional Water Quality Control Board. He discussed the process flow at the WWTP and advised that the influent flow is at capacity and increasing and discussed age-related capacity issues and design problems. He explained permit violations regarding WWTP requirements and performance. Things necessary to improve, repair, and increase the capacity of the WWTP were identified as the headworks replacement needed with 25 MGD peak capacity, the need to increase ADWF capacity from 2.8 MGD to 3.6 MGD with the primary sedimentation tanks, increase flow to trickling filter #1 and upgrade with mechanical distributor, equalize influent flow to the secondary sedimentation tanks, a new solids contact aerator is needed to augment BOD capacity of trickling filters and improvement performance of AWT facility, and the need to expand the chlorination facility with larger pumps and replacement of the AWT pump pad. Staff is also considering repairs needed to the existing digester, which are the original equipment, by replacing the covers and exterior insulation. Most of the original valves and internal plumbing in the digesters are no longer operable. He discussed storage for the increase flow in the percolation ponds. There are numerous cracks in the AW'F backwash basin concrete walls. He discussed future capacity concerns, as noted in the staff report. Another project that is Regular Meeting April 18, 2001 Page 4 of 13 under consideration to be included in this project is West-side Relief Sewer which would extend from Ford Road to the VVVVTP and is needed to prevent sanitary sewer overflows during peak wet weather flows and to provide adequate capacity for any future expansion of sewer system or changes in regulations. It is anticipated that construction would begin in March 2003 and be completed within 24 months. He advised that an important negotiation is that this will be an expansion to increase capacity. The capacity will come from new hookups and most of those hookups would occur outside the City in the UVSD area. He discussed the requirements of the City's permit related to maximum capacity. This year the City contracted with the firm of Kennedy Jenks to provide a preliminary study of what needs to be done. He discussed the preliminary cost of the proposed improvements. Excluding the West-Side Relief Sewer cost of $9 million, the plant expansion amounts to approximately $14.4 million. This does not include engineering costs for design of project. Discussion followed concerning wintertime flow rates that come from intrusion from ground water or rainwater coming from open drains. Councilmember Larson expressed his concern with customers allowing rainwater to get into the sewer system from drains. He felt the VVVVTP is in need of repair to meet the needs of current users, and expansion to meet the possible needs of future users. He inquired about the cost of the expansion, how much of the cost will be borne by current or future ratepayers. Mr. Barnes explained that an estimate will be prepared of the processing costs of removing the suspended solids, which will probably affect everyone, but the cost of the expansion, such as the primary sedimentation tanks and other things that are attributed strictly to the capacity, would most likely be put into a capital improvement fee. When a new customer hooks up, they will be required to pay this fee. The current customers will not have be pay for this expansion. Councilmember Libby inquired as to how much money has been set aside for this project. Mr. Barnes did not think money has been set aside for the proposed new plant construction, however, funds have been set aside for the loan for the AVVT project. City Attorney Rapport advised that Proposition 218 might not apply to the sewer treatment plant. If it did, we would have to have a rate study in order to increase capital improvement fees, which would involve identifying the costs for the project. He explained that there is some obligation to develop some factual record to have a fee increase and that the preliminary Kennedy Jenks study would be adequate. Mayor Ashiku discussed sump pumps and roof drains, and the possibility of requiring an inspection report that certifies that there is no rain, gutter, or basement water going into the Regular Meeting April 18, 2001 Page 5 of 13 sanitary sewer, when a home is resold. Mr. Barnes advised that no inspection is required during real estate sales of laterals or main lines going from the house to the manhole. The ordinance states that the sewer lateral to the main is not the City's responsibility, but rather the property owner's. There was further discussion of this matter with regards to requiring inspection that there is no infiltration from any intentional source, during property transactions. City Attorney Rapport advised that the City already prohibits discharges into the sewer system. He discussed letting realtors know that this ordinance exists, so that when they are involved in a sale, they are not at risk of perpetuating a violation. The City could also adopt an additional ordinance that would require some disclosure and perhaps an inspection. Discussion followed concerning a proposed ordinance and other alternatives available to provide enforcement. It was noted that such an ordinance would solve a problem for the City; however, it would not affect those in the UVSD. Councilmember Baldwin expressed concern with the staff report regarding future capacity concerns related to reduction or elimination of affluent discharge into the river. Wastewater Treatment Plan Supervisor Gall explained that there has been talk about tightening restrictions. Currently, the City is limited to 1% discharge into the flow of the river. Councilmember Baldwin inquired if there is concern with the amount of fresh water available for new water hookups for new homes and the availability of water for new development, in terms of how much we want to expand the plant. Mr. Barnes explained that they are not requesting capacity for any major developments; however. Staff has not prepared a land analysis of the probability of vacant or available land being developed to determine what the waste disposal would be. The City will inform the Board of our preliminary plan. The next step will be to go to the final design and then apply for the State Revolving Loan Fund to pay for the progress. He discussed the process for getting on the list for the State Revolving Loan Funds. Councilmember Larson inquired about the relationship between the District and the City and inquired if the City is required to take all the sewage produced in the District and treat it, and if the City could require a moratorium on new hookups from the District if the City reaches capacity. Mr. Barnes explained that the agreement with the District does not allow the City to say that the District cannot approve a new development within the District, unless they are going to pay for the expansion. Regular Meeting April 18, 2001 Page 6 of 13 City Attorney Rapport advised that he would need to review the agreement before advising Council concerning this matter. Consensus of Council received the presentation relative to the planned expansion of the Wastewater Treatment Plant. Recessed: 8:14 p.m. Reconvened: 8:25 p.m. 8. NEW BUSINESS 8c. Approval of City Participation in Nissan North America, Inc. Electric Vehicle Municipal Pilot Program to Lease Four Hypermini Electric Vehicles Police Administrative Captain Dewey explained that in the Fiscal Year 2000/01 Budget, the City Council approved funds from the Public Benefits Fund set aside from Electric Revenues for the purchase of an alternative fuel source vehicle for Parking Enforcement within the Parking District. Staff was informed of the proposed pilot program by which the City is eligible to lease vehicles directly from Nissan North America, Inc., for $1,138 per year per vehicle. Nissan requires that participation be for a three-year period, that the City operates a minimum of three vehicles, and that the City would provide maintain the mechanics of the vehicle and Nissan would maintain all the electrical components of the vehicle. Two vehicles would be used for the Parking Enforcement Officers and the electric Meter Maid Program would use the other two vehicles. Each municipality is reporting about a $1 per day in operating costs for the vehicle, excluding the lease. City Manager Horsley explained that the City built an electric car recharging facility and was asked by MCOG to participate in the use of vehicles, and this continues our progress with the electric vehicle program. Mr. DeKnoblough advised that there will be an initial cost outlay for the City to install additional charging stations and it can be minimized by the location. This is a reimbursable cost from Nissan as part of the lease. Captain Dewey explained that it is estimated that the vehicles would average 25-30 miles for one charge. M/S Baldwin/Smith approving agreement with Nissan North America, Inc. for a three year lease of four Hypermini Electric Vehicles and authorizing the City Manager to execute the agreement; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None 8. NEW BUSINESS 8d. Authorize the Mayor to Execute Amendment No. 2 to License No. DACW05-3-96- 543 Between the Department of the Army, Corp of Engineers and the City of Ukiah, and Authorize Payment of the Annual Facilities Rental Fee of $260.00 Public Utility Director Barnes advised that Amendment No. 2 presented to Council is a continual extension of a lease agreement the City has with the Army Corp of Engineers Regular Meeting April 18, 2001 Page 7 of 13 that provides the City access to some sites on Corp property. The City of Ukiah was issued a License by the Department of the Army for the use of the entrance road and for the water supply system used for the dissolve oxygen monitoring system at the Lake Mendocino Hydro Plant. Amendment No. 2 will extend the License for an additional five- year period. The rental payment for the five-year term of this Amendment is $260. He recommended Council approve the extension of the Lease and payment of the rental fee for five years at $260. M/S Larson/Baldwin authorizing the Mayor to execute Amendment No. 2 License No. DACW05-3-96-543 between the Department of Army, Corp of Engineers and the City of Ukiah and authorizing payment of the Annual Facilities Rental Fee of $260; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None 8. NEW BUSINESS 8e. Development of a Policy for the City of Ukiah Relative to Power Grid Support and Rolling Blackouts Public Utility Director Barnes advised that the City of Ukiah over the past several months participated in requests to reduce load issued by the California Independent System Operator (CAISO) in order to meet production to load shortage due to lack of generation. We have met this obligation by operating City owned generation located at various City facilities. However, extensive outages are being forecasted for this summer that could require the City of Ukiah to curtail more load than can be achieved by shedding only City facilities. In summary, the seven-point strategy basically states that we will support and participate in any system problems or shortages that are a result of operating outages and that we will do what we can to assist the current request to reduce load, except the blackout of our customers. He felt that our obligation is to our customers first and if P.G.&E. has not be able to maintain the amount of reserves they are required to make their system reliable, that our customers should not be affected. Coucilmember Larson noted that when the City sheds load, we shut down City facilities and go onto a generator and it costs us money. He inquired if those costs could be calculated and if there is any means to recover the costs from those responsible for our needing to shed load. Mr. Barnes explained that the actual costs would include fuel cost and the run hours and maintenance on the generator. City Attorney Rapport explained the City has the legal authority to provide electric service outside its City Limits, both based on the state constitution and by statute. The courts appear to say that the City has to meet its own needs for electricity first, and can only use surplus power outside the City. Further discussion on the matter followed with regard to the City's obligation to serve its customers and rolling blackouts. There was discussion concerning energy conservation programs and staff making announcements to the media to alert customers. Regular Meeting April 18, 2001 Page 8 of 13 Councilmember Libby inquired if a "yes" vote concerning the seven-point strategy means that we would give staff the authority to spend money for what staff perceives as a need for more generation without Council's review. Mr. Barnes' response was "no". He explained that additional generation is not the issue. Councilmember Libby inquired if we are going to give staff the authority to cast votes on investments with NCPA without Council oversight and approval. Mr. Barnes replied that Council has already given him the authority since staff is an alternate commissioner to the NCPA to vote on those issues that are brought before the Commission when he is representing the City at the meetings. Councilmember Libby noted that we could have multi-million dollar investments with NCP^ and inquired why they would not come before Council for a vote. Mr. Barnes explained that once the Commission has approved it, typically those investments have to come before the City Council for approval. He noted that there are no major expenditures that happen at NCPA. As an alternate commissioner, if NCPA were to propose a project, he could vote "yes" that the City wants to go forward with that project, but he would still have to bring it back to Council for approval of expenditure of those funds. Mayor Ashiku requested that Public Utilities Director Barnes provide Council with a memo detailing of some of the things that have occurred at the Utility Directors meeting relative to California's energy situation. M/S Smith/Baldwin directing Staff to follow the principals outlined in the Staff Report when dealing with requests for load shedding. Councilmember Baldwin noted how supportive the community and City Council are for a publicly owned power utility and it is obvious that it is more responsive to the community. Councilmember Libby stated that, in her opinion, this is the most politically worded piece of material that has seen come before Council during her tenure. She expressed her concern what a "yes" vote would mean because of the ambiguous wording. She referred to articles in the local newspapers. She advised that the format presented to Council is unclear to her and she cannot vote for it unless it is presented in a manner that defines the objective. Mayor Ashiku took issue with Councilmember Libby's statements referring to Ukiah and NCPA into the profiteering that was reported in the newspapers regarding other municipalities. The article did not mention NCPA or NCPA cities and he felt that municipal power sources have been responsible and handled our resources in a publicly responsible fashion. He explained that he asked Director Barnes specifically about the seven items Regular Meeting April 18, 2001 Page 9 of 13 proposed because they are part of NCPA policy. He further noted that Council was provided a copy of the NCPA policy recently. Mr. Barnes explained that the only reason why staff put these items together is because this is the policy being followed by NCPA and wants direction by Council if they would like to adhere to those policies. We will do everything we are obligated to under our contracts with P.G.&E. and with CAISO to be sure we have enough reserves. Mayor Ashiku explained that Council should be concerned about the decisions that staff is making relative to this utility and how it participates in various interconnection agreements, state orders, and any lawful order that comes forth because the policy that is implemented by our Utility Director becomes the ultimate responsibility of the City Council. He noted that this is a very difficult time for the state of California and what we do as a City regarding our energy policy does affect the rest of the state to some extent, so we want to be responsible participants and protect our customers. Councilmember Larson felt this policy allows the flexibility for staff to cooperated with the other utilities and ISO and to continue to provide a minimal amount of service to as many customers as possible, while not letting the system fail. He compared it to the mutual aid agreements the City currently has with surround fire, sheriff, and CHP departments, Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Baldwin, and Mayor Ashiku. NOES: Councilmember Libby (as the policy is written). ABSENT: None. ABSTAIN: None 8. NEW BUSINESS 8f. Appointment of Committee to Review Bankinq Services Finance Director Elton advised that staff is preparing to solicit proposals for banking services. This item is brought to the Council to specify the members of staff and Council to the ad hoc committee to review the banking proposals. He reviewed several options available, as described in the Staff Report. City Manager Horsley advised that the City did this six years ago, and the recommended action is the same as presented previously. Staff provided three options available for the composition of the committee. Councilmember Libby recommended that the Investment Oversight Committee should review the banking services. Discussion of the matter followed with regard to including the Assistant City Manager on the committee. M/S Libby/Ashiku that the Investment Oversight Committee, along with the Assistant City Manager, review the banking service proposals and present a recommendation to the Council; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. Regular Meeting April 18, 2001 Page 10 of 13 8. NEW BUSINESS 8g. Discussion and Consideration of City Seal City Clerk Ulvila explained that the City Clerk's office is in need of purchasing a new embosser of the City Seal since the present embosser does not make a clear imprint. Staff conducted historical research of the City Seal with local historian, Judy Pruden. The attachments provided in the Staff Report include newspaper articles regarding the City Seal, which is a shaggy dog. The matter is being brought before Council for consideration of an appropriate design to represent the City Ukiah City Seal. Considerable discussion followed concerning various designs for the City Seal. It was noted that the City's logo of an oak tree has been in use since 1986. There was further discussion of the designs of the oak tree compared to the historical nature of the shaggy dog. Those Councilmembers in favor of the oak tree were of the opinion that it would provide a more "serious" look to City documents and an upgrade is needed. It would also coincide with the oak tree logo on City vehicles. M/S Smith/Baldwin directing staff that the oak tree be the City Seal, as depicted in the City's logo, and to delete the Latin wording, incorporate the wording "We Are Here To Serve" and "Incorporated March 8, 1876", and add stars on the City Seal. Further discussion followed concerning the designs. Motion carried by the following roll call vote: AYES: Councilmembers Smith, Baldwin, and Mayor Ashiku. NOES: Councilmembers Larson and Libby. ABSENT: None. ABSTAIN: None. 8. NEW BUSINESS 8h. Set Dates and Times for Fiscal Year 2001-2002 Budget Hearing Risk Manager/Budget Officer Harris explained that, historically, the annual budget hearing has been held during the last week in June to meet the adoption deadline of June 30. He recommended the dates of June 26 and 27 be set as the dates and that the regularly scheduled joint meeting with the Ukiah Valley Sanitation District be set for 3:00 p.m. Wednesday, June 27. In the past, the budget has been considered and adopted within two days. The Redevelopment Agency hearing would be scheduled to follow the District meeting. Discussion followed concerning the time to conduct the meetings. Consensus of Council was to set the dates of June 26 and 27, 2001, beginning at 8:00 a.m. on Tuesday, June 26 and proceeding to June 27 until completed. The starting time on June 27th will be determined at the end of the session on June 26th. 8. NEW BUSINESS 8i. Discussion of Possible Cancellation of May 2, 2001 City Council Meetinq City Manager Horsley explained that, after polling each of the Directors relative to any Regular Meeting April 18, 2001 Page 11 of 13 critical items of business for their Departments, it was determined there were no pending business items for the May 2, 2001 City Council meeting. Also Mayor Ashiku and Councilmember Smith will be out of town that day. There was a brief discussion of the current meeting's lengthy agenda. Consensus of Council was to cancel the May 2, 2001 Council meeting. 8. NEW BUSINESS 8j. Adoption of Resolution Approving Memorandum of Understanding for Employee Bargaining Unit - Electric Unit City Manager Horsley advised that she received notification today that the Electric Unit ratified the offer and it is no different that what Council reviewed at the last meeting. M/S Larson/Smith adopting Resolution 2001-52, adopting Memorandum of Understanding between the City of Ukiah and the Electric Unit, IBEW Local Union 1245; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Baldwin, and Mayor Ashiku. NOES: Councilmember Libby. ABSENT: None. ABSTAIN: None. 8. NEW BUSINESS 8k. Adoption of Resolution Authorizing Subordination Agreement and Signatories for Esperanza Ford, 225 Arlin_qton Risk Manager/Budget Officer Harris explained that Esperanza Ford, who owns property at 225 Arlington is requesting the City to subordinate her current loan so she can refinance the property. One of the requirements stipulates that if it is refinanced, the loan must be paid off. In the past, the City has subordinated, in the spirit of Iow and moderate income. Ms. Ford, who meets the Iow to moderate income levels of the original grant program, is requesting the City to retain $10,000 of the original loan in the "second" position, repaying $8,000 to the City as part of the refinancing. M/S Smith/Ashiku adopting Resolution 2001-53 approving Subordination Agreement and authorizing signatory to Agreement for Esperanza Ford, 225 Arlington, Ukiah; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 81. Ur_clencv Item City Attorney Rapport explained that when Rural Communities Housing Corporation (RCHDC) first proposed a subdivision and development of a Iow income housing project on Gibson Street, as part of the subdivision they were required to execute agreements for themselves, any subsequent purchasers of any of the parcels in the City, which obligates them to maintain the sewer line which will serve that project, and also to maintain the private street that provides access to Gibson Street. Under the City Code, that maintenance obligation is required to be secured by a lien on the property. At the time they signed the agreements and were recorded, the HUD attorney in San Francisco approved those agreements and advised that Department of Housing and Regular Meeting April 18, 2001 Page 12 of 13 Urban Development (HUD) was willing to make the loan for the purchase of the property and construction of the project, not withstanding existence of these liens. They have now reconsidered and have a concern about having the lien on the property. Escrow is suppose to close on RCHDC on April 27, 2001 and there would not be enough time to go through that process before escrow closes, and there is also a risk that HUD would not make the money available for the project, and the property would essentially be lost at that point. In order to facilitate this project moving forward, staff is proposing that we subordinate the lien (not remove it from the agreements) but subordinate it to the deeds of trust that HUD will obtain when they make the loans. There was a brief discussion concerning the matter. M/S Smith/Baldwin approving subordinating the lien under the maintenance agreements to the US Dept. of Housing and Urban Development (HUD) purchase money loans and to authorize the City Manager to execute a subordination agreement; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None 9. COUNCIL REPORTS Councilmember Smith reported that Council should have received the MTA letter from the General Manager to the Mendocino Council of Governments regarding the claim for funds. At a previous meeting he had reported that the Main Street Program had completed the tree lighting installation. He reminded Council of the vandalism that occurred at that location this past week. 10. CITY MANAGER/CITY CLERK/DIRECTOR REPORTS City Manager Horsley reported that the City's Web Page is being extended and updated with Public Utilities, Public Works, and the Recreation Departments information. Councilmember Smith noted that in viewing the Chamber of Commerce's Web page, there is a link to the City that lists former Councilmembers. City Manager Horsley advised that she would look into the matter. She distributed a letter that was sent to Solid Waste Systems today. 11.CLOSED SESSION a. C.C. §54957.6 - Conference with Labor Negotiator Employee Negotiations: Electric Unit Labor Negotiator: Candace Horsley No Closed Session needed. 12.ADJOURNMENT There being no further business, the City Council meeting was adjourned at 9:40 p.m. Marie Ulvila, City Clerk Regular Meeting April 18, 2001 Page 13 of 13