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HomeMy WebLinkAboutMin 09-19-01MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, September 19, 2001 The Ukiah City Council met at a Regular Meeting on September 19, 2001, the notice for which had been legally noticed and posted, at 5:02 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 (arrived at 5:45 p.m.), and Mayor Ashiku. Staff present: Customer Services Supervisor Archibald, Public Utility Director Barnes, Community Services Director DeKnoblough, Police Captain Dewey, Finance Director Elton, Assistant City Manager Fierro, City Manager Horsley, City Attorney Rapport, Community Services Supervisor Sangiacomo, Deputy Public Works Director Seanor, Public Works Director/City Engineer Steele, Planning Director Stump, Police Chief Williams, and City Clerk Ulvila. Adjourned to Closed Session: 5:03 p.m. CLOSED SESSION a. Conference with Legal Counsel - Anticipated Litigation Significant exposure to litigation pursuant to subdivision (b) of Government Code Section 54956.9 (1 case) Reconvened: 6:30 p.m. 3. PLEDGE OF ALLEGIANCE Councilmember Baldwin led the Pledge of Allegiance. 4. PRESENTATION 4a. Presentation Regarding the Status of the Mendocino County American Red Cross Leslie Kershaw, Chairperson of the Board of Directors of the Mendocino Chapter of the American Red Cross, discussed the status and goals of the local Chapter of the American Red Cross have set since last meeting in August with the City Council. They have completed a plan for both debt reduction and reorganization. She discussed the inflexible costs of doing business as a Chartered Chapter compared to a Service Delivery Unit. She stated that at the September 4, 2001 meeting, the Board voted to voluntarily dissolve the local Chapter and that their vision for the Mendocino County Red Cross as a Service Delivery Unit (SDU) which will provide the same level of services, at a lower cost. She continued to discuss the benefits of a SDU and services they will continue to provide. She thanked Council for being a major supporter of the American Red Cross in the community. The Board requests that the City Council give final approval to waive the rent debt of $7,430. With the waiver of the rent debt by the City, the organization would be in a better financial position. Councilmember Libby asked that Council waive the back payments to help the Red Cross get up to date in their rent. She felt that under these times of national crisis, this is a small part that the City can play. She recommended the matter be agendized at the October 3, 2001 meeting for consideration. Regular Meeting September 19, 2001 Page 1 of 16 Mayor Ashiku thanked the Chapter for their efforts. 5. MINUTES 5a. Regular Meeting of July 18, 2001 Councilmember Libby noted a correction to page 1, last paragraph, the second line should read "misinformation, and therefore the resolution was a little different than what Council had approved ." Discussion followed concerning the use of the word "process" rather than "resolution" as requested by Councilmember Libby. It was noted that at that time, Council was discussing the process by which the interviews were conducted and applications were received. City Manager Horsley recalled that her Agenda Summary Report referred to both the process and the resolution as incorrect based on Council action. She recommended that the draft minutes use the wording "process and resolution". Councilmember Libby also recommended a correction to page 2, top of the page should read: "from two different meetings concerning discussions on this issue, in order to have the amended resolution clarified by Council." Some members of Council noted that the word "them" refers to the minutes, not the resolution. City Manager Horsley recommended a correction to page 11, last paragraph, should read: "Mayor Ashiku was of the opinion that the proposed ordinances does not address the original concerns of Council and should center on the downtown commercial area of the City. Issues such as trash being kept out of sight, weed abatement, graffiti, and businesses that close down but leave unsightly and blighted si.qns should be addressed." Additionally, there was direction at the end of discussion that should be included in the minutes and she recommended wording of "Direction was provided to staff to revise the draft ordinance to be less subjective, less knit picky, and less vague. In addition, staff was directed to revise it to address "big picture" nuisances only and to schedule the new draft for a Planning Commission workshop process." This occurred towards the end of discussion and should be included in the minutes regarding that issue. M/S Smith/Larson approving the Regular Meeting minutes of July 18, 2001, as corrected; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 5. MINUTES 5b. Regular Meeting of August 1,2001 Councilmember Libby recommended a correction to page 2, under Unfinished Business, item 7a, that the statement "City Manager Horsley recommended this matter be continued since Councilmember Libby, who requested this matter, is absent." is incorrect. She did not request it. The statement should read: "City Manager Horsley recommended this matter be continued since Councilmember Libby requested to be present when this issue was addressed." Regular Meeting September 19, 2001 Page 2 of 16 Discussion followed concerning the request as to whether Councilmember Libby requested the matter be placed on the agenda. There was also discussion as to the City Manager's statement at the meeting. Councilmember Libby requested this correction because the statement in the draft minutes is incorrect. M/S Larson/Baldwin approving the Regular Meeting minutes of August 1,2001, as corrected; carried by the following roll call vote: AYES: Councilmembers Larson, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: Councilmembers Smith and Libby. 6. RIGHT TO APPEAL DECISION Mayor Ashiku read the appeal process. 7. CONSENT CALENDAR M/S Larson/Smith approving items a through f of the Consent Calendar as follows: a. Approved Disbursements for Month of August 2001; b. Received Notification to Council Relative to the Purchase of Two Inflatable Dams From Superior Dam, LLC in an Amount not to Exceed $36,849.46; c. Adopted Resolution No. 2002-10 approving and Authorizing the Execution of Program Supplement No. M002 to Administering Agency- State Agreement for Federal Aid Projects No. 01-5049; d. Awarded Bid for Purchase of Five Detective Vehicles in the Amount of $85,065 to Northlake Ford-Mercury; e. Awarded Professional Consulting Services Agreement on a Time-And-Expense Basis, to Rau and Associates, Inc., to Verify the In-Place Condition of the Existing Foundation Layer at the Ukiah Solid Waste Disposal Site; f. Authorized Sole Source Procurement by Execution of Amendment to Consulting Services Agreement With T. M. Herman and Associates, in the Amount Not to Exceed $10,000, to Provide Professional Land Surveying Services; Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 8. AUDIENCE COMMENTS ON NON-AGENDA ITEMS Scott B. Smith, Jr. discussed the Community Garden Project on Cleveland Lane and problems associated with people taking the food that is grown there. He invited Council to tour the garden. He drew attention to the Mendocino Rangers Volunteers and the work they do to combat drugs manufactured in forest areas. Lorie Leaf, 1105 Clay St., Ukiah, addressed Council regarding barking dogs in her neighborhood. She would like the Mendocino County Animal Control to have jurisdiction within the City Limits. She felt it should be a priority for the City to be financially responsible to the County to pay for this service so that the appropriate agency can respond to this problem in a timely manner. Councilmembers Baldwin and Larson noted that the main compliant they receive from Regular Meeting September 19, 2001 Page 3 of 16 residents concerns barking dogs. 9. PUBLIC HEARING (7:00 P.M.) 9a. Adoption of Resolution Adjusting Fees for the Ukiah Municipal Golf Course Community Services Director DeKnoblough advised that the Parks, Recreation, and Golf Commission (Commission) has discussed an adjusted fee schedule for the Ukiah Municipal Golf Course during its regular meetings of July 17 and August 21, and at a special meeting of September 11. In addition to the Commission meetings, staff held a public workshop in the Council Chambers on September 4, which was attended by members of the Men's Golf Club and the Women's Golf Club. He advised that the fee increases have been discussed at both the Men's and Women's Golf Club meetings at various times and that this Public Hearing was noticed appropriately in the newspaper and postings of the Commission meetings have been posted at the Golf Course Pro Shop so that golfers would be aware of the various meetings. The purpose of the fee adjustment is to offset annual operational deficits, which have resulted in a loss of approximately $210,000 over three years. In order to eliminate the budget deficit and reverse the downward trend in reserves, the Commission has proposed not only an immediate adjustment to the fee schedule but also an incremental cost of living increase, based upon the Consumer Price Index (CPI), each year through 2006 to offset inflation. He continued to discuss the Commission's efforts to establish a schedule that would not exceed the affordability factor while raising the revenue to balance the budget. The Parks, Recreation, and Golf Commission and staff discussed concerns regarding the increasing disparity between the annual members and daily ratepayers, maintaining a fair and equitable fee schedule, and being able to provide affordability for those Iow-income golfers so that they can play during the weekdays. The Commission's vote on the proposed fee adjustments was unanimous in favor of the proposal. Community Services Supervisor Sangiacomo stated that the golfing community should have been aware of all these issues well ahead of time because these discussions started on July 17, 2001 and all of the meetings have been properly noticed. Director DeKnoblough discussed the percentage of Golf Course income that comes from the annual fees as well as revenues from other golfing fees. Councilmember Libby inquired as to what items could be cut from the Golf Course budget if Council does not approve the proposed rate increases. Director DeKnoblough explained that some maintenance activities could be cut, as well as contractual services for tree improvements and aeration. A significant impact to the budget would be to lay off personnel from work. Public Hearing Opened: 7:26 p.m. Joe Chiles, Ukiah, explained that he pays an annual fee. He stated that the proposal hasn't been presented before the Men's Golf Club membership and he requested Council postpone the decision until the Men's Golf Club meets next week so they will have time to consider the Regular Meeting September 19, 2001 Page 4 of 16 matter. He discussed and recommended increasing rates for out of town players. It was his opinion that part of the Bed Tax from the City and Council could be allocated toward operational expenses at the Golf Course. Public Hearing Closed: 7:35 p.m. Councilmember Baldwin inquired as to the number of times the Parks, Recreation, and Golf Commission considered this matter. Director DeKnoblough discussed the various meeting dates of the Commission and pointed out that at the August meeting of the Men's Club, they had the original resolution that was composed by the Commission. The only difference between the proposed resolution before Council and that resolution was the change it~ the Monday through Friday status. The original resolution included Fridays, weekends, and the junior rates. He noted that the Men's Golf Club is favorable to the Monday through Friday rates, which is a response to their concerns. Councilmember Smith inquired if there has been any consideration for out of area rates, as recommended by Mr. Chiles earlier in the meeting. City Manager Horsley explained that the City used to have an out of area rate and then it was lowered based upon requests, and later eliminated. The problem is that Ukiah is rather isolated versus a destination like the coast where there are many tourists. It was found that play increased when they lowered, and then eliminated the out of town rate. M/S Baldwin/Ashiku adopting Resolution 2002-11, Adjusting fees for the Ukiah Municipal Golf Course. Councilmember Libby expressed concern with increasing the fees for the Junior Golf Program and it was her opinion that for the amount of money the increase would generate, it would not make much of a difference. She is not supportive of increasing the rates for the Junior Golf Program but supports the other proposed rate increases. Director DeKnoblough explained that the Commission felt many families could afford the increased rates and it may be possible to establish scholarships for lower income players. Councilmember Smith voiced his support of the proposed resolution and recommended the Commission look into some of the issues that Mr. Chiles presented relative to other sources of income for the Ukiah Municipal Golf Course. Councilmember Libby made a motion to amend the motion that there be no increase in the Junior Golf Program rates. Motion died for lack of second. Mayor Ashiku recalled that staff previously advised Council concerning the importance of moving forward with a thorough analysis of the Golf Course. He noted the Golf Course is very well maintained and if maintenance is curtailed, then revenues would decrease. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Baldwin, Regular Meeting September 19, 2001 Page 5 of 16 and Mayor Ashiku. NOES: Councilmember Libby. ABSENT: None. ABSTAIN: None. 10. NEW BUSINESS 10a. Adopt Resolution Amending Transfer Station Contract with Solid Waste Systems City Manager Horsley advised that Solid Waste Systems, Inc. (SWS) has built a Transfer Station and commenced operations. They have also provided the off site improvements. There was a substantial increase and additional costs for the off site improvements which was allowed in the contract. The contract provided for construction costs to be covered with the initial ten-year term of the Transfer Station and the second ten-year term, if the contract was extended, would not include a construction component in the Tipping Fee. Another key element is quantity of garbage that is processed by the Transfer Station. The facility has been designed to accommodate all inland Mendocino County garbage. The City is the only government entity to commit to using the facility so far and has a signed contract with SWS. Staff and the Solid Waste subcommittee have met with SWS over some of the increased costs and other issues that have come to light. She recommended to Council a proposal to have an amendment to the contract with SWS that would include 12 items, as noted in the Staff Report. City Attorney Rapport explained that the motion should be to direct staff to bring back a contract that meets those criteria. Paul Caylor, Mendocino County Solid Waste Division Director, noted that the proposed resolution talks about an agreement between Solid Waste Systems, Inc. and the County. The County has in the past given 15-year flow control commitments, however flow control comes with other rights for approval and certain provisions within the agreement. He inquired if Council is going to consider an exchange for that 15-year flow control agreement, allowing the County to have rights under the City's agreement with SWS. City Manager Horsley explained that she would appreciate Council allowing staff to meet with County staff to determine if there are appropriate changes in order to meet both parties' terms and goals. Mr. Caylor explained that the contract has a very specific clause regarding change of transportation from truck to rail haul. If this project goes forward, and if sometime in the future the City decides to go to rail haul, he felt the Board of Supervisors would have an interest in being involved. He noted that if the County is to approve 15 years of flow control, the City should allow for negotiation of rights under the agreement between the City and SWS. Mayor Ashiku felt it would be more appropriate for Mr. Oaylor to discuss his concerns with staff on the matter. He explained that Council could take Mr. Caylor's concerns into consideration. M/S Ashiku/Smith directing the City Attorney to review items 1-12 as proposed in the Staff Report, to amend the contract and bring the results back to Council for review and approval with the appropriate resolution, and that Staff continue to negotiate with the County and Solid Waste Systems, Inc. for the interim contract. Councilmember Larson recommended staff report to Council regarding the County's Regular Meeting September 19, 2001 Page 6 of 16 concerns specifically in terms of issues they may have with the contract that may directly affect the City's intent, which is to properly amortize this project and spread the burden not only on City residents, but also on all the users or potential users. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. Recessed: 7:55 p.m. Reconvened: 8:04 p.m. 10. NEW BUSINESS 10b. Discussion of City Policy Regarding Annexation and Delivery of Water Outside the City Limits City Manager Horsley advised that the City Council directed staff to meet with Mendocino County representatives regarding the Brush Street Triangle (Triangle) mitigations contained in the EIR that was performed by the City's consultants. During the meeting, the (Chief Administrative Officer CAO) raised a very pertinent issue and that was "If we're going to be participating in the cost for mitigations and other expenses, we really aren't interested in putting a lot of time, effort, or money forward if the City is going to require that the property owners annex before they receive City water, that is if it turns out that City water is the only water that's available." She felt this is something that needs to be discussed because of current policy, and that in the past the City has provided water to the Brush Street Triangle area and have asked the property owners to sign an agreement that if the City ever asked them to annex, they would annex. There are several hurdles to annexation that include not only that the property owners agree, but also LAFCO requires that we have a tax sharing agreement with the County. The City hopes the bridge will be in place by next year linking Orchard Avenue to Brush Street, and so the potential for development in that area is very high. Water is something that will be needed in this area. She has notified property owners, Dan Thomas, as well as Jim Anderson, CAO for the County, and discussed this issue. The issues revolve around development in the area and not only the mitigations but also what discretionary review would be required as well as the types of requirements that would be imposed on developers within the Triangle. As a result of discussions with the County, she thought that the County has agreed to pass an ordinance that would require discretionary review and the implementation of the mitigations as proposed in the EIR. It was their understanding in the meeting that discretionary review would not be required. Planning Director Stump stated that in terms of future development and discretionary review, the County does not require discretionary review in the Triangle for many types of development. This has concerned City staff and led to staff's discussions to obtain some assurance of mitigation measures. The County had indicated that they would be prepared to perhaps pursue the adoption of a resolution or ordinance that would require at least CEQA review of any ministerial or building permit. He was not sure if that would fulfill Council's concern about design review and some other things that could be achieved through a true discretionary review process. He thought staff is close to finding the mechanisms that would work for both the City and the County. Regular Meeting September 19, 2001 Page 7 of 16 Mayor Ashiku explained that he was told before that they could develop their own water resource and that they weren't very concerned about it. His concern about changing the policy and requiring annexation, if it was the City's desire to have such a project annexed, is that if we extend into that service area we're agreeing to provide water to an unknown size of project, costing our citizens opportunity in the future to utilize that resource which we've committed elsewhere without any direct reimbursement to the citizens or our treasury. He would have a hard time committing to a project of that magnitude without having control over it. Councilmember Larson stated that the traffic impacts, increased law enforcement costs, and fire protection costs that we would assume through our service agreements with the other Districts would be an impact on us that would not be addressed financially. Annexation is the logical land use policy here and water is a component of it. If we are going to allocate water to a project, he would like to see what the project is and what value it brings to the community, both in terms of City revenues and community service. He felt he would not support any water contracts that don't involve probable or necessary annexation. At the very least, discretionary review is vital to maintain our community development plan that has been worked on so hard. It was his opinion that the County needs to be participatory in this. This ceased to progress due to a committee that couldn't seem to come to some resolution about a revenue sharing agreement. He felt that's where it needs to be resumed on a government level. Councilmember Libby was of the belief that annexation is the best answer to this matter. She felt that the City has been holding these property owners hostage for them to develop this land because two jurisdictions have not been able to work out their differences. She would like to see the City and County earnestly work something out together to make this work. Considerable discussion followed concerning the issue of development in the Triangle and whether to require annexation prior to providing water service outside the service area. There was also discussion concerning LAFCO's involvement in the annexation process. Councilmember Baldwin was of the opinion that we have to look after the best interest of the majority of the citizens of Ukiah and there may be immense negative impacts from full development in the Triangle. We should not give up the control we currently have and we should look toward annexation. Mayor Ashiku stated that no one is deprived of an opportunity to develop their property and owners can apply for building permits at the present time. Council has given staff direction to work out a mitigation program that would satisfy the impacts of building that bridge. Jim Andersen, Mendocino County Administrative Officer (CAO), stated that he appreciates City staff talking with the County. He came away from the meeting with something markedly different than what has been presented to Council at this meeting. The last time they were here, the direction of the Council was to look at the mitigations that would be necessary in order to consider approving the EIR that had been done for the area, to look at what is a reasonable cost sharing for those mitigations, to look at the issue of continuity of design for the Ukiah Valley, and then return to Council with that information. In the meeting with staff he thought there was an understanding by all parties that if the City Regular Meeting September 19, 2001 Page 8 of 16 were to proceed with certification of the EIR, the mitigations outlined in the EIR would have to be addressed. His comments to the City representative were that the ratio would be determined by the availability of water. But if you look at the development that's anticipated in the EIR, from a moderate to large level, development can only be supported if water is available. From the perspective of the County, when talking about the mitigations and the ratio, or the share of cost in those mitigations, water is a key variable that goes into that equation. The extent to which water is available certainly provides more options with regard to development in that area. With regard to discretionary review or CEQA, it has been the position of the County that as development occurs on the 90 acres, the County would have discretionary review and subject any of the projects to the CEQA process. Aisc, as development occurred, County staff would recommend to the Board of Supervisors that the cumulative impacts of development on the 90 acres would be considered when looking at the cost of the off site improvements. For the record he stated that the County is interested in intelligent and proper planning and development of the valley like the Ukiah City Council. As far as design standards, he thought that from a staff standpoint, they have discussed the fact that the City has worked on actual commercial design standards for the City of Ukiah. Looking at those design standards and possibly applying them to development in the Brush Street area is something they would be willing to consider and potentially propose to the Board of Supervisors. He was of the opinion that annexation was not discussed much when he spoke with City staff. However, the County is very open to discussions of annexation and tax sharing agreements. The Board is looking at updating its General Plan and the extent to which an annexation or tax sharing agreements may be appropriate for proper planning for Mendocino County, is something they have not ruled out at the staff level. Councilmember Larson inquired if Mr. Andersen was suggesting that the County adopt the City's Design Guidelines. Mr. Andersen stated that it has been discussed at the staff level but not with the Board of Supervisors. Discussion continued with regard to a tax revenue sharing agreement and the issue of annexation. Water resources and services were addressed. Dan Thomas, representing Marino and Company, one of the property owners of the property in question, stated that his company has had an application since 1995 to annex property and nothing has been done during that time. He thought that the property owners are stuck between these two government entities. As a majority property owner in that area, he controls annexation and has been trying to get the City and the County together since 1995 to no avail. With regards to the EIR and construction in the 90 acres, he did not think anyone knows what's going to happen there in the next 10 or 15 years. He discussed the City's 20-year plan and changing zoning to meet the needs of the community. The Agenda Summary Report comes as a complete surprise to him in regards to the County's oversight in development of the 90 acres. It was his understanding that when the City approved the EIR for the bridge, they identified mitigations. The basis for that EIR was a reasonable attempt at defining what would occur in Regular Meeting September 19, 2001 Page 9 of 16 the 90 acres. It was his belief that there was an attempt to assess what the mitigations would be for development of that land. In the original EIR, the City required that it would oversee the procedure regarding the County's review. He felt that the correct way is through CEQA. The compromise between all parties during discussions was that the County would generate a special overlaying district of 90 acres that would impose CEQA guidelines on the 90 acres and there would be discretionary review. The last he heard, everyone was happy with that concept. It's been a very frustrating experience for him to try to get the two entities together. Mayor Ashiku discussed his previous conversations with Mr. Thomas regarding construction of the bridge and the advantages of being in the City. Previously, Mr. Thomas had indicated to him that he wasn't dependent on the City's water or utilities. It now comes as a surprise to him that water is needed for this project. City Manager Horsley explained that there are two issues. One is that the bridge is going to be built and the water issue is not associated with that project. The second issue is, when we talk about discretionary review, we are not talking about the CEQA mitigation process. Planning Director Stump stated he was confused about Mr. Andersen's comments in which he indicated discretionary review would occur but it is his recollection that at the last meeting they had, it was clear the County was not contemplating an overlay zoning district or discretionary review but rather adopting some sort of resolution that would require CEQA review on building permits, which is a very unusual procedure. They were willing to listen but there was no commitment to an overlay zoning district or discretionary review. At that meeting he had asked "Don't you want to have control over projects through the discretionary review process?" He thought it crucial for any jurisdiction that is entertaining major development, that they have discretionary review. City Attorney Rapport discussed the confusion that might be occurring with regard to the meaning of discretionary review. He detailed the discretionary review process. City Manager Horsley stated that Director Stump specifically asked, "Are you saying you don't want discretionary review" and Ray Hall said "no". There may have been miscommunications regarding this matter. M/S Baldwin/Ashiku that property owners must annex into the City prior to receiving water service by the City. Further discussion followed concerning the motion and adhering to the current policy. Councilmember Libby was of the opinion that issues could be worked out between the City and County with further discussions. City Attorney Rapport explained that the informal policy previously adopted by Council requires a majority vote of Council in order to hook up to water service outside the City limits. He continued to discuss how the LAFCO law has changed since this policy was put into place. The City has discretion as to extending its water boundaries. Regular Meeting September 19, 2001 Page 10 of 16 There was some discussion concerning Mr. Thomas' application to LAFCO in 1995 for annexation that has resulted in no action. M/S Councilmember Baldwin/Ashiku calling for the question. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Baldwin, and Mayor Ashiku. NOES: Councilmembers Smith and Libby. ABSENT: None. ABSTAIN: None. 10. NEW BUSINESS 10c. Presentation of Programs Eligible to Utilize Money in the Public Benefits Fund Customer Service Supervisor Archibald provided Council with an updated report on the Public Benefit Fund. She explained that the report demonstrates that the Ukiah CARES program, the Electric Vehicle lease program, the Photovoltaic rebates, an Energy Conservation Program, and a one-time geothermal project expansion are possible within the projected resources of the Public Benefits Fund. She discussed various assumptions that were made by staff in developing this report. At the end of ten years, an ending fund balance of $170,670 is projected for the Public Benefits Fund. The actual amount available for additional adjustments to the programs provided will depend upon actual participation and expenses of approved programs. Up until this year, Ukiah CARES was the only substantial program within this fund. Currently the CARES program provides relief to about 532 Iow and moderate-income families for the electric charges on their City bills in the form of monthly discounts and Temporary Emergency Assistance. These benefits were most recently increased in March of 2001. The current participation will cost the program approximately $161,000 a year. She continued to discuss the overall results of the programs over the ten-year period that total $4.8 million. Public Utilities Director Barnes discussed the proposed one-time geothermal project expansion. He noted that there has been an increase in steam production and the project would provide more generation to the City. Upon questioning by Coucilmember Baldwin with regard to why staff is proposing more than five times the residential photovoltaic rebates, Mr. Barnes explained that it has to do with the potential size of the system, which is usually 3Kw for residential use. Councilmember Libby inquired as to the percentage of generation that we obtain from the Geysers. She also inquired if we did not take the money out of the reserve fund, how would we pay for the program. Director Barnes responded that the percentage of generation is about 25-30%. He explained that it would have to be paid out of generation costs and the generation cost would increase. He continued to discuss the photovoltaic rebate, noting that it could be generation that the City would use. Discussion followed relative to the photovoltaic rebate and purchasing the power. Supervisor Archibald discussed details of each of the four scenarios presented for the CARES program. She explained that if Council wishes to include providing additional relief to Regular Meeting September 19, 2001 Page 11 of 16 housing subsidized families, staff would recommend providing either Temporary Emergency Assistance or Monthly Discounts at a lesser rate for families not receiving allowances. Families that already receive other monthly subsidies may benefit more from obtaining relief that would pay up to $150 of electric bills each year. Implementing either Emergency Assistance of Monthly Discounts will provide much needed relief to a higher segment of Ukiah's Iow to moderate-income community and have remaining funds available in the Public Benefits Fund for other programs the Council may have under consideration. Councilmember Baldwin was supportive of Scenario #2 and an increase in eligibility levels. Supervisor Archibald continued to explain the process by which an individual would need to follow in order to be considered for the program. She noted that the Salvation Army reviews their application and makes the determination as far as eligibility for the total household. Councilmember Libby was of the opinion that Council needed to decide whether to fund $950,000 for the geothermal expansion out of the Public Benefits Program. If not, then that money could be allocated elsewhere. Councilmember Baldwin inquired as to the policy or income guidelines in order to assist someone in purchasing a new refrigerator. Supervisor Archibald explained that an Energy Conservation Program can take many forms and may not necessarily require that the applicant fall within certain income guidelines, however, they might be able to receive rebates in the event they purchase a new refrigerator that is more energy efficient. Director Barnes explained that most are rebates given on the efficiency rating of the appliance, with no income level considered. Discussion followed regarding an Energy Conservation Program and if it's worth expanding the CARES program for. Administrative costs were noted. Mayor Ashiku stated that Energy Conservation Programs are important because it will save us in the long run of having the potential requirement for expansion of additional generation resources. Even though it will cost personnel to administer the program, it should not be a deterrent if it will provide some long-range benefits. Councilmember Larson felt there might be simple rebate programs that the City could administer and wouldn't need a full time staff person. It was his opinion that the Public Benefits Fund should be subsidize Iow income people for the electricity bills to offset the high cost of energy and to provide conservation measures to reduce our peak demand and need to purchase electricity, especially at higher rates during peak periods. He discussed installing solar panels in Section 8 housing units so that those individuals would not pay for electricity and the City would be generating electricity for the City. It may be a good use of both conservation and public subsidies for people who really need them. He did not feel the City should subsidize large corporations, but would prefer that a certain amount of this program be used to emphasis investment in local production of electricity like the solar interconnections. Regular Meeting September 19, 2001 Page 12 of 16 He would be supportive of those funds going toward people of Iow and moderate-income status. Mayor Ashiku referred to Scenario #1 of the Staff Report with regard to rebates on solar energy, and was very supportive of this $3 per watt rebate. Councilmember Baldwin explained that he previously had asked that this item be scheduled for Council to consider an increase in the CARES program. He was supportive of Scenario #2 and to keep the Emergency Assistance at its current level of $300 maximum, while increasing eligibility to 170% of the Federal Guidelines. In order to finance those changes, he recommended reducing the Energy Conservation Fund to $50,000, incorporating an economic need factor, and reducing the commercial photovoltaic fund to $70,000 per year. Council discussed whether the amount of the rebate would need to be adjusted, and whether or not to adjust the commercial photovoltaic fund. Motion Baldwin Approving Scenario #2 for the CARES program, keeping the Emergency Assist at the current $300 maximum level, while increasing eligibility levels to 170% of the federal guidelines, reducing the Conservation Program to a $150,000 level, and asking staff to consider some kind of need related benefits. Motion died for lack of second. Councilmember Libby stated she would like to know what 170% of the guidelines amounts to and the amount of income being considered. M/S Baldwin/Ashiku approving Scenario #2 of the CARES program with the amendments of keeping the Emergency Assistance at the current $300 maximum level, and funding that increase by reducing the Conservation Program from $85,000 to $50,000 per year. A brief discussion followed with regard to staff working out the formula for other aspects such as the changes in wattage from 120 to 150 for seniors, etc. City Manager Horsley felt there is a need to institute limits on the Photovoltaic Program so as not to exceed the funding in case there is an abundance of applications. There was discussion concerning the establishment of the Conservation Program. Director Barnes stated that staff interrupts the motion to mean that Council authorizes staff to come up with a program to utilize $50,000 and will report to Council with a program to match that funding. Consensus of Council approved the motion. Council thanked staff for their work on the project and providing information to Council. 10. 10d. NEW BUSINESS Request for Funding of Park Design Trip to Redding and Chico, California and Ashland, Oregon (Vice-Mayor Baldwin) Regular Meeting September 19, 2001 Page 13 of 16 Vice-Mayor Baldwin discussed touring parks in Redding and Chico, California and Ashland, Oregon. He suggested allocating $3,000 to send two Parks staff, two Councilmembers, and one City Planner on a three-day trip visiting these communities as Council considers what should be done with the 35 acres at the eastern portion of Gobbi Street. It would inspire Council to not settle for mediocrity in developing the 35 acres. Discussion followed relevant to the conception plan for the Riverside Park and approved fencing for the park. There was also discussion regarding obtaining grants for funding improvements to the Park. Uses in the surrounding area of the park were noted. City Manager Horsley noted that all of the money allocated for the League Conference has been refunded, so there would be funds available for such a venture. Consensus of Council was that $2,000 maximum be allocated toward traveling to these cities to look at park designs. 10. NEW BUSINESS 10e. Approval of Conflict Waiver Under Rules of Professional Responsibility City Attorney Rapport advised that he sent a letter to all five of his clients and has received signed consent from everyone except the City of Ukiah. He explained that he has been requested to assist Gary Weatherford, the City's water rights attorney, in responding to the Mendocino Russian River Flood Control and Water Conservation Improvement District ("District") letter of July 23, 2001, which was discussed at the City Council's September 5 meeting. Under the Rules of Professional Responsibility administered by the State Bar, if a lawyer represents more than one client and those clients could have potential conflicting interest, the lawyer is required to disclose the representation of those clients and explain the nature of the potential conflict. If the client consents with the representation, the lawyer can represent one or more of those clients who have that potentially conflicting interest. All of the entities, including the City, have independent lawyers who are water rights experts who handle those issues for those clients. In this case, Gary Weatherford, who is the City's water rights lawyer, is based in San Francisco and felt that it would be helpful for him to have a local lawyer who is familiar with what's going on locally and who is physically present in the County to assist him in responding to this issue involving the Flood Control District. Before he did anything, he called all of his other clients to find out if they would have any objection to him doing this and none of them did. Councilmember Larson inquired if this would limit his representation of the other clients. City Attorney Rapport explained that this is asking all the clients whether he can represent the City, specifically in assisting Mr. Weatherford in responding to the Flood Control District's letter. He further explained that he would not be doing the same things for the other agencies as he plans to do for the City because those agencies are relying on their own independent lawyers. However, he will be able to continue representing them in issues other than water rights. M/S Larson/Smith approving waiver for David Rapport under Rules Responsibility and authorize Mayor to sign the letter waiving the conflict. Regular Meeting September 19, 2001 Page 14 of 16 of Professional Councilmember Baldwin noted that it seems as though Redwood Valley does pose a potential threat considering their needs and their demands for project water, and that it is in conflict with the City's potential needs. He felt that would create the greatest potential conflict. Discussion followed concerning the situation with Redwood Valley County Water District with regard to the availability of surplus water for Redwood Valley. City Attorney Rapport continued to explain the situation with Redwood Valley and noted that their water rights lawyer, Paul Minasian, was of the opinion that this would not pose a conflict for Redwood Valley. He did not see how it could be adverse to the City since his attorney client relationship that he will have in doing this work is with the City, so his obligation would be to represent the City's interests. Mayor Ashiku stated that Gary Weatherford is defining our whole strategy in this water crisis. Mr. Rapport will coordinate at a local level but thus far has not provided any advise. City Attorney Rapport stated that he is not the author of the City's response to the letter, but merely trying to work with Mr. Weathe#ord to help him implement his recommendations and participate in discussions. Mr. Weatherford will be providing the analysis. He continued to discuss the water situation with Redwood Valley. Councilmember Libby noted there is a perception by some of the public of a conflict of interest because Mr. Rapport is associated with the other water entities. City Attorney Rapport stated that he has not provided advice to the City regarding water issues. He explained that this was all started because the City's water lawyer asked him to get involved. Mayor Ashiku was of the opinion that M r. Rapport has clarified what the conflicts could be and has provided Council with information concerning the issue. Councilmember Larson was of the opinion that although the issue of public perception may be real, there is the fact that all five agencies are on record that they do not have a problem with the waiver. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, and Mayor Ashiku. NOES: Councilmember Baldwin. ABSENT: None. ABSTAIN: None. 11.COUNCIL REPORTS Councilmember Larson reported that the League of California Cities did not have a meeting. He explained that MCOG announced the STIP funding allocations and they were slightly increased. Ukiah's share of the non-competitive funds will be $850,000 to $950,000, which is better than what was expected. The competitive portion of the funds will be distributed shortly. He inquired of Council regarding their opinion of whether we ought to support additional funding for the Willits Bypass that is called for out of this STIP allocation. He has serious reservations about it. It amounts to approximately $3 million of the $19 million STIP funding. If Regular Meeting September 19, 2001 Page 15 of 16 a majority of the Council would like to discuss it further, the matter should be agendized at a future Council meeting. He is getting prepared to meet with the Ukiah Players Theater and the Skateboard Committee. He received a letter today from one of their Board members and them may be some problems associated with that project. Councilmember Smith reported that there was no legislative meeting of the League. Next week he will be attending the NCPA annual meeting. He had reported at the last Council meeting that he would not be attending tonight's meeting because he was to attend a business conference for his employer in Riverside. However, when he saw the interest on the agenda of the Gibson Creek issue, he canceled his trip. 12.CITY MANAGER/CITY CLERK/DIRECTOR REPORTS City Manager Horsley reported that Phil Dow overestimated what would be needed for the Willits Bypass additional monies and so there were additional funds over what was estimated before to be available to the cities. They went back to the projects that were submitted and TAC has approved the City's Gobbi Street/Oak Manor Project. Whether we get the SAFE funds or not, it looks like we will be able to do the project if MCOG approves it. She noted that staff is still looking at replacing the Council's chairs. She distributed a letter to Council regarding an Anton Stadium game and they are asking the leaders of the City of Ukiah to be there to honor our fallen Americans. Adjourned to Closed Session: 10:30 p.m, 13. CLOSED SESSION a. G.C. §54957.6 - Conference with Labor Neqotiator Employee Negotiations: Fire Unit Labor Negotiator: Candace Horsley No action taken. b. Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to subdivision (c) of Government Code Section 54956.9 (1 Case) No action taken. Reconvened at 12:14 a.m, 14. ADJOURNMENT There being no further business, the City Council meeting was adjourned at 12:15 a.m. Marie Ulvila, City Clerk Regular Meeting September 19, 2001 Page 16 of 16