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HomeMy WebLinkAboutMin 12-05-01MINUTES OF THE UKIAH CITY COUNCIL Regular Meeting Wednesday, December 5, 2001 The Ukiah City Council met at a Regular Meeting on December 5, 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, and Mayor Ashiku (arrived at 7:40 p.m.). Staff present: Public Utilities Director Barnes, Administrative Analysis Burck, Community Services Director DeKnoblough, Finance Director Elton, Assistant City Manager Fierro, City Manager Horsley, City Attorney Rapport, Community Services Supervisor Sangiacomo, Planning Director Stump, Battalion Chief/Fire Marshal Yates, and City Clerk UIvila. 2. PLEDGE OF ALLEGIANCE Councilmember Libby led the Pledge of Allegiance. 3. INTRODUCTIONS 3a. Fire Department Career Employees Battalion Chief/Fire Marshal Yates introduced Fire Department Career Employees for the "B" shift of Mark Hilliker (Fire Captain/Shift Commander for "B" Shift), Michael Hamilton (Fire Apparatus Engineer/Paramedic), Darrell "Charlie" Miller (Firefighter/Paramedic), Jonathan Lemke (Firefighter/Paramedic), and Jared Apperson (Firefighter/Paramedic). 4. APPROVAL OF MINUTES 4a. Regular Meeting of October 3, 2001 Councilmember Smith noted a typographical error on page 11; the first paragraph should read "Discussion followed related to the terrain of the City owned property where the fish hatchery once stood." City Attorney Rapport recommended the following changes to the minutes beginning with the second paragraph on page 5, the second sentence should read "Jim Ronco, title officer for First American Title, conducted additional research and found some documents that cause him to have an "unqualified" opinion that he is not sure if the documents that were found would change his legal analysis." This amendment incorporates sentences two and three. Sentence five should read "The deeds and the documents that Mr. Behnke provided answer a question he had concerning the property. The seventh sentence should read "The additional documents that he viewed showed that in 1897 the Crockets that owned the parcel that Mr. Nix now owns, granted the road right-of-way to the City and atthe same time they granted the ownership of the fish hatchery." The tenth sentence should read "There was some expression in that earlier deed that the use of the parcel is to be for a fish hatchery." He also recommended a correction on page 5, third paragraph, the fourth sentence should read "To know what the City's liability would be, we would need to know what the character Regular Meeting December 5, 2001 Page 1 of 17 of the use was from 1930 to the early 1990's when the City again allowed that road to be gated." M/S Smith/Larson approving the minutes of the Regular Meeting of October 3, 2001, as amended, carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Vice-Mayor Baldwin. NOES: None. ABSENT: Mayor Ashiku. ABSTAIN: None. 4. APPROVAL OF MINUTES 4b. Regular Meeting of October 17, 2001 Vice-Mayor Baldwin recommended a correction on page 24, fifth paragraph beginning with "Councilmember Baldwin", the second sentence should read, "He stated there is a potential that the noise from off-road vehicles in the hills could affect the neighborhood and stated new noises are not addressed in the mitigation measures." City Attorney Rapport recommended corrections on page 23, third paragraph, the third sentence should read "There are restrictions on the Tentative Map prohibiting any development other than the five lots in the proposed subdivision from having the right to use the access road to other property and this factor is addressed in the mitigation measures." The fifth sentence should read "Probable future projects means projects already in the permit process or those foreseeable projects understood to be in the permit process at some point in the future, and CEQA requires such projects be reviewed." The last sentences should be combined to read, "There has been no evidence presented that any probable future projects exist for this particular project. Growth Inducement is not part of a Cumulative Impact Analysis." He also recommended corrections on page 23, seventh paragraph, to read, "City Attorney Rapport stated the intent of the condition was to prevent the property owners from modifying the deed restriction measure without City Council approval." Vice-Mayor Baldwin recommended a correction on page 25, first sentence to read "Councilmember Baldwin noted the project photographs demonstrate that the slopes throughout the entire western hills that are part of the City were generally the same slopes depicted and, therefore application of concepts of Cumulative Impacts and Growth Inducement indicate it is not too steep to build elsewhere." City Attorney Rapport recommended corrections to page 27, fourth paragraph, the first sentence should read "City Attorney Rapport commented he is not prepared to elaborate on the question proposed, but stated based upon the distance from Mr. Ashiku's property to the subject property, there is little likelihood that his project would have a financial impact on Mr. Ashiku's property. The third sentence should read, "He stated the project is allowed under the current zoning and the applicants are subdividing the property in accordance with the provisions outlined in the Subdivision Ordinance". The fourth sentence should read "However, an exception would have to be granted for the road because it does not meet the 20-foot road width requirement". Regular Meeting December 5, 2001 Page 2 of 17 He also recommended a correction to page 27, fifth paragraph beginning with "Mr. Stump", the second sentence should read "He noted there are several exceptions to the Subdivision Ordinance that make this project unique and he identified some of these exceptions." Councilmember Libby requested that she receive a copy of the minutes with all corrections before they are posted on the City's Web site. M/S Smith/Larson approving the minutes of the Regular Meeting of October 17, 2001, as amended, carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Vice-Mayor Baldwin. NOES: None. ABSENT: Mayor Ashiku. ABSTAIN: None. 4. APPROVAL OF MINUTES 4c. Regular Meeting of November 7, 2001 It was noted that the draft minutes of November 7, 2001 would be presented to Council at their next meeting. 5. RIGHT TO APPEAL DECISION Vice-Mayor Baldwin read the appeal process. 6. CONSENT CALENDAR City Manager Horsley advised that, upon request by the applicant, staff recommends item 6b be removed from the Consent Calendar. M/S Libby/Smith approving items a, c, and d of the Consent Calendar as follows: a. Rejected Claim for Damages Received from North Haven School and Referred to Joint Powers Authority, Redwood Empire Municipal Insurance Fund; c. Considered and Approved Revised Response to the Mendocino County Grand Jury Report and Authorized the Mayor to Execute Letter of Response; d. Received Notification to Council Regarding Acquisition of Airport Entrance Directory Signs From Paramount Signs in the Amount of $9,654.45. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Vice-Mayor Baldwin. NOES: None. ABSENT: Mayor Ashiku. ABSTAIN: None. A brief discussion followed concerning the removal of item 6b from the Consent Calendar. It was noted by staff that the item is being removed from the agenda. 7. AUDIENCE COMMENTS ON NON-AGENDA ITEMS No one came forward to address Council. 9. UNFINISHED BUSINESS 9a. Adoption of Ukiah Utilities Demand-side Ener_~v Mana_clement Pro.(Iram Proposal Public Utilities Director Barnes advised that the City Council recently approved using a Regular Meeting December 5, 2001 Page 3 of 17 portion of the Public Benefits Charge to fund demand-side energy management and new investments in renewable energy sources and technologies, in addition to increased funding for Ukiah C.A.R.E.S. At that time, Council requested that staff develop a program for the energy conservation portion of those funds in a manner that would take into consideration the customers ability to pay relative to the amount of rebates for that conservation program. City Manager Horsley advised that the financial analysis on the C.A.R.E.S. Program was added as an informational item for Council and was based on the request to include an annual gross pay for single and married individuals. Staff plans to return in March with a bi-annual discussion of the C.A.R.E.S. program. Administrative Analyst Burck explained that staff is proposing rebates on appliances and weatherization supplies to improve energy efficiency of the City's utility customers. She discussed the two levels to the rebate program. One rebate would be based on Iow- income criteria with a maximum rebate per appliance of $200 at a total maximum rebate per customer service address of $600 for the Iow-income portion of the rebate. The second level of rebates would be available to all Ukiah electric utility customers but at a lower rebate level of $100 maximum rebate per appliance, and a total possible rebate per customer service address of $300. Staff estimates the expenses to administer this program would be approximately $25,000 per year. She discussed proposed guidelines for the rebate program. She explained that an approved dealer would be one that is willing to participate in the program. Every appliance dealer in Ukiah would be contacted and asked to participate in the program, including local dealers or suppliers of photovoltaic systems will also be notified. Discussion followed regarding the program and it was noted that a landlord would be considered a single household and therefore would only be allowed the maximum rebate for a single household, rather than for each unit in an apartment complex. Staff further explained that the program could be structured so that customers would be required to show proof that the old appliance has been removed and not in use and recycling is encouraged. It was noted by staff that consideration should be given to making an agreement with the appliance dealers that they not attempt to resell the old appliance. Councilmember Libby inquired if the program would include rebates to commercial units for such things as water heaters or weather stripping. In response to an inquiry by Councilmember Libby with regard to rebates for commercial users, Ms. Burck explained that it was her understanding that the City Council requested a residential rebate program, however, a commercial rebate program could be developed. The proposal before Council is for residential units only. Discussion followed concerning the program and it was the consensus of Council that the Regular Meeting December 5, 2001 Page 4 of 17 program specifies that it pertain to an "Ukiah residential utility customers with an active residential utility account." There was a brief discussion concerning expanding the program to include both residential and commercial customers, however, it was noted that there is a limited amount of funds available, and Council's priority concern should be the residential units. M/S Larson/Smith adopting Ukiah Utilities Demand-side Energy Management Program, with the amendment to Section D, Energy Efficiency Program Guidelines, to reflect the requirement for proof that the old appliance has been decommissioned. Councilmember Libby commented that she had hoped there would be a consensus of Council to expand the program to all utility customers because they are all paying the same rates. Discussion of the matter continued. Councilmember Larson felt Council should look at ways to assist small businesses with a rebate program or conservation incentives. Councilmember Libby requested that in March, staff provide Council with a recommendation for allocating additional funds from Public Benefits for a similar type program for businesses. Vice-Mayor Baldwin stated he would like to see more of the money go toward making the rates more progressive. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, and Vice-Baldwin. NOES: None. ABSENT: Mayor Ashiku. ABSTAIN: None. 8. PUBLIC HEARING 8a. Approval of Application to Demolish Three Structures Over 50 Years Old Located at 509 Low Gap Road 7:10 p.m. - Councilmember Libby recused herself from the meeting concerning this matter because her residence is within 300 feet of the project. Planning Director Stump reported that the owner of the property located at 509 Low Gap Road has applied for Demolition Permit to demolish three structures on the site. Demolition of the structures is necessary as the first step in developing the site with an apartment complex conditionally approved by the City Council in 1999. On November 7, 2001, the City Demolition Permit Review Committee considered the application and unanimously found that none of the criteria in the UMC applied, and therefore the structures are not historically or architecturally significant. Public Hearing Opened: 7:18 p.m. Regular Meeting December 5, 2001 Page 5 of 17 No comments received. Public Hearing Closed: 7:18 p.m. M/S Smith/Larson approving the Demolition Permit for the three structures located at 509 Low Gap Road. Vice-Mayor Baldwin explained that he noticed in the report from the Demolition Permit Review Committee that it was stated that the matter would come before Council as a Consent Calendar item. Mr. Stump explained that the UMC was amended recently that changed that provision and requires a public hearing. M/S Smith/Larson amending the motion that it be based on the findings that none of the structures have historical or architectural significance. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Vice- Mayor Baldwin. NOES: None. ABSENT: Councilmember Libby and Mayor Ashiku. ABSTAIN: None. 7:20 p.m. - Councilmember Libby returned to the meeting. 8. PUBLIC HEARING 8b. Acceptance of Final Report and Closeout of the City of Ukiah's Community Development Block Grant Program Economic Development Plannin.q/'rechnical Assistance Project: Feasibility Study for Revolving Low Fund and Airport Business Plan, Grant g99-EDBG-658 Assistant City Manager Fierro advised the City was awarded a grant for $35,000 (#99- EDBG-658) from the State of California Community Development Block Grant (CDBG) program to conduct a study to research Ukiah's business climate given the recent decline of the timber industry. Wes Irvin, Senior Associate with Applied Development Economics (ADE), explained that in 1999 ADE assisted the City in obtaining a Planning and Technical Assistance Grant. The grant covered the topics of: 1) updating economic and demographic information for the City, 2) recommend an industrial attraction strategy for the City to implement, 3) a revolving loan program study needs assessment, and 4) an analysis of the City acquired "Langley property" located at the southern end of Airport Park Boulevard that consists of 19 acres. He noted that the City applied for, and received, the augmentation to its revolving loan program. There was analysis of the Langley property and it was found to have 8.8 acres of buildable land for industrial and commercial uses. The property currently does not have infrastructure to serve the parcels and it is ADE's estimation that improvements to the site would cost about $1.1 million, in addition to soil work that may be needed. The property in its current unimproved state is probably worth $700,00 to $800,000. If it were improved, it Regular Meeting December 5, 2001 Page 6 of 17 would probably be worth $2 to $3 million. It is ADE's recommendation that the City market the property in conjunction with the development now going on at Airport Park Boulevard and not limit development to industrial but allow commercial and other types of uses consistent with how that area is currently being developed. Vice-Mayor Baldwin noted that ADE uses the term "Airport Business Park" and "Airport Industrial Park" interchangeably and inquired why. The same applies to the targeted uses for the property of commercial and industrial and he was unsure if they are compatible. Mr. Irvin advised that it could be assumed that the titles are interchangeable. Public Hearing Opened: 7:25 p.m. Judy Pruden, Ukiah, stated that the City's document is very good and is money well spent. She recommended Council accept the document. Public Hearing Closed: 7:27 p.m. M/S Larson/Libby accepting the Feasibility Study for Revolving Loan Fund and Airport Business Plan that was authored by Applied Development Economics, and formally close out CDBG Grant 399-EDBG-658; carried by an all AYE voice vote by Councilmembers present, with Mayor Ashiku absent. 8. PUBLIC HEARING 8c. Acceptance of Final Report and Closeout of the City of Ukiah's Community Development Block Grant Program Economic Development Plannin_~/ Technical Assistance Project: Palace Hotel Re-Use Study, Grant #00-EDBG- 727 Assistant City Manager Fierro advised that employees of the firm of Applied Development Economics (ADE), who completed the study, and Mogavero Nodestine Associates, an architectural firm that worked with ADE on this project, would provide an overview of the project to Council. Wes Irvin, Senior Associate with ADE, and Project Manager on this project, explained that ADE came before Council in April 2001 and presented their Demand Analysis and provided a brief overview of their conclusion through a slide presentation of their scope of work. They reviewed background information on the Palace Hotel, record measurements and drawings were taken, structural Building Code and compliance review was made that included surveys inside and outside the structure, they studied the options for reuse that included interviews with community members, and develop design alternatives and the costs associated with the renovation, developed an implementation plan and final report. This project did not include any detailed or destructive testing for structural and seismic analysis due to lack of money in their budget. However, a structural assessment was completed in 1999 that was useful in the preparation of this report. Regular Meeting December 5, 2001 Page 7 of 17 He advised that the City has applied for and received a grant for $20,000 under the Downtown Rebound Program in order to complete a more detailed seismic analysis of the structure and it should be completed early next year. Key factors in deciding the options for reuse would be the demand for the use, the building size and condition, parking requirements, the compatibility of that use with the building and its existing configuration, and the consistency of that use with City goals and objectives. The potential reuse options that they concentrated on were housing and ground floor commercial use. The building consists of approximately 60,000 sq. ft. of usable space, and as such, there was not enough demand for a single use to fill the building. ADE recommended a multi-use design, which would include market rate condominiums, a full service restaurant, selected areas of specialty retail on the ground floor, a 25-room boutique hotel geared towards sophisticated business and leisure travelers, and offices for business interests. He noted that since the building takes the entire site, parking was not possible to incorporate into this mix. Jeff Lehigh, employed with the firm of Mogavero Nodestine Associates, explained that his firm worked on the plan, obtain as-built plans, and obtained a cost estimate for the conceptual reuse plan for the building. Through the use of slides, he presented visuals of the floor plans. The project would be constructed in four phases, with the restaurant, seismic, and code requirements being accomplished in the first phase. The second phase would include the boutique hotel and the third phase would be the housing. The final phase would be the tenant improvements and buildout for retail space on the ground floor. Councilmember Libby inquired as to the location of parking for the structure. Mr. Lehigh explained that the building takes up the entire lot and therefore the parking would need to be addressed separately. It most likely would consist of on-street parking, rented parking in the nearby parking lots, or the owner would need to acquire a site nearby or create a parking lot. In response to a question from the audience regarding whether the housing would be Iow-income or up-scale housing, he responded that they looked at the demand and availability of Iow-income housing, and it was concluded that there is no shortage of Iow-income housing in Ukiah. A member of the consultant team advised that they felt it important that all of the uses within the hotel be compatible with each other and felt that Iow-income housing with an upscale hotel and restaurant would not be compatible. 7:40 p.m. - Mayor Ashiku arrived at the meeting. Mr. Lehigh explained that they assessed the feasibility of renovation and determined that the cost would be approximately $4.5 million, of which $1.5 million includes seismic and retrofitting that would need to occur at the beginning of the process. He felt it is a risky commercial investment from a private standpoint and public subsidies would be important. The cost to demolish the Palace Hotel and construct a new building would be approximately $1.1 million and it would cost approximately $3.5 million to construct a 30,000 sq. ft., three-story building with 50% lot coverage. He explained that the owner's Regular Meeting December 5, 2001 Page 8 of 17 options are to rebuild the structure and operate it immediately, to rebuild in phases and operate it over time, to rebuild and sell it after it is fully operational, to sell it as is (the current assessed value is $165,000 for the land and the building has no assessed value), the owner could take partners to spread the risk, obtain subsidies to limit the risk, or walk away from the project (which is not recommended). The City's two main options are 1 ) to promote and commit to assist with renovation, and 2) to allow the building to be demolished and install a new use on site. The owner's choices and resources dramatically impact what the City's options are and visa versa. He continued to discussed details of these options with Council that included the option of using Redevelopment Funds. The City should continue to work closely with the owner to define the building's future and recommend some sort of subsidies be found or developed. Meanwhile, it would not hurt to issue a call for developers to find out how much demand there would be for a raw site in the downtown area. Another issue to consider is parking. ADE strongly recommends that the building be sealed and weatherized so degradation to the structure ceases to continue. The uses proposed by ADE will provide about 65 employees once the building is fully occupied. City Manager Horsley recommend that since the owner of the property is not in attendance at this meeting, that Council approve a letter be sent requesting she attend a Council meeting so that Council can discuss the matter with her. The City has stepped forward and obtained two grants, had the study performed, and now the owner needs to address Council at a meeting about her intentions for the site so that the City has a clear picture before it makes a decision as to whether or not the City should become involved with the property. Councilmember Smith recommended the letter state that the meeting takes place as soon as possible. Discussion followed concerning the need to establish a time frame, goals, and certain criteria before Council takes action regarding the property. Public Hearing Opened: 8:44 p.m. Mary Lindley, Ukiah, inquired about the disposition of the garage beneath the hotel and explained that there were gas pumps and a number of parking areas at that location. She did not want to see the structure abandoned if it is to be refurbished again. Aileen Brown, Ukiah, advised that she represents the Savings Bank of Mendocino County and has had an opportunity to read the report. She noted their concern for parking in the area because the Savings Bank's parking lot is used by patrons of the Post Office and other surrounding businesses due to the lack of adequate parking. The Savings Bank is also concerned with asbestos in the building and noted estimated costs for its removal. The Savings Bank is also concerned about the use of public funds for this project. She noted that the owner has not kept the building clean. While this plan looks good, she Regular Meeting December 5, 2001 Page 9 of 17 questioned how feasible it really is. Judy Pruden, Ukiah, complimented Advanced Development Economics on their study. She advised that the parking garage was located at the former site of the Mendocino Book Company on North School Street and was enclosed some years ago. The basement is a small area and before 1929 it had some oil cisterns in it then the Palace Hotel was converted to natural gas in the 1970's. She advised that he extensive research on the matter revealed there are no buried tanks on site. She felt that asbestos, unless it is friable, is not an issue. She noted that structures in the Downtown Parking District are not required to provide additional parking for a project. She has been a strong advocate that the City acquire property on Smith Street to construct a second story parking garage over the top of Henry Street and she strongly urged the City Council/Ukiah Redevelopment Agency to consider a two-story parking garage to increase parking in the downtown area. She recommended that Council accept the Block Grant as being very thorough. Chet Collins, Ukiah, advised that there is a parking lot north of the public library on North Main Street that could also be used for parking in the downtown area. Charles Mannon, President of the Savings Bank of Mendocino County and an Ukiah resident, stated that Council is attempting to save a decrepit old hotel that has provided nothing but blight in the downtown area for the past 15 years. He voiced his opposition to the City using public funds to obtain reports for a business owner who doesn't even attend Council's meetings. Mayor Ashiku called to Mr. Mannon's attention that the City is moving forward to provide a level of due process for the owner to ensure that if the City decides to pursue demolition of the building or condemnation of the property, the City will have information concerning its options. City Manager Horsley explained that the City couldn't condemn a building unless there is a health or safety reason. The study has provided options to Council and has also given it a timeline. Linda McClure, Ukiah, advised that she is not convinced that there isn't a need for Iow- income housing. Public Hearing Closed: 8:45 p.m. Mayor Ashiku referred to a tour of the structure that he took with Councilmember Smith last year and at that time the owner promised them that there would be some decisive action taken to secure the building. City Manager Horsley explained that many improvements were made to the structure such as installing plywood over broken windows and dismantled the sagging awning. They also hired a maintenance firm in Ukiah for the City to contact regarding maintenance Regular Meeting December 5, 2001 Page l0 of 17 issues. The owner has met with this group several times as the study progressed. Mr. Irvin explained that the owner attended three meetings and was interested and took the information they provided to her. However, they have not seen any outcome from the meetings with her. He reminded Council that the owner provided the funds for the matching cash for the grant. Assistant City Manager Fierro confirmed that Questex, the partnership that owns the Palace Hotel, did provide approximately $4,300 towards the study. Discussion continued with regard to broken windows in the building and maintenance neglect. It was noted that the building would continue in its present state of decay unless there is a firm commitment and immediate decisive action on the part of the owner. Council was in agreement concerning the importance of establishing a short-term timeframe for the property owner to respond. There was discussion relative to the preparation of the seismic study and it was felt that the study is very important because it may provide more information that could be relevant to taking further action regarding the building. It was also noted that cooperation is needed from the property owner for the seismic study. The seismic study is scheduled to be completed in the spring of 2002. Councilmember Libby inquired if accepting this report would that mean support of any of the options or would it just acknowledge that the report has been completed. City Attorney Rapport advised that accepting the study does not commit Council to do anything but just that the final study has been presented to Council. Councilmember Libby explained that, based on the structural report, she felt a public safety issue exists. She was of the opinion that there is a need for Council to take action immediately and that the seismic study should assist them in their decision. She was not supportive of the City using public or grant funds and felt the City needs to put extreme pressure on the owners to do something. She discussed the need for permanent parking for those using the Palace Hotel as a residence. Judy Pruden, in response to an inquiry by Councilmember Baldwin regarding tax benefits to an individual who owns a historic building, responded that there is a 20% tax credit that the building is eligible for because it is on the National Register. She also noted the availability of facade easement dedications and relief for seismic retrofit in terms of not increasing taxes. She referred to the State Historical Building Code as a performance code that the owner is required to use and eases some of the burdens of renovation and rehabilitation. Finally, she noted that should the owner dedicate the building to a local public agency, it would bring the owner a tax break. Councilmember Baldwin noted that the greatest deficiency he identified in the report was Regular Meeting December 5, 2001 Page ]! of ]7 the lack of parking. He was of the opinion that the City should continue to work on the possible renovation of the Palace Hotel. He requested staff advise him of the last date in which to place this item as a referendum to the voters in the March election. Mr. Irvin, in response to an inquiry by Councilmember Larson with regard to the return on the investment if the building were to be demolished and a smaller building constructed, explained that it is possible that there would be higher revenues. ADE used market rates to fill the building as renovated; therefore, market rates for similar uses would also apply to a new 30,000 sq. ft. building. He also explained that if a private concern purchased the property or was given the property, and paid for the demolition and construction of a new building, it may be just as risky of an investment. Councilmember Libby noted that the $4.5 million is only a preliminary cost and anticipated the cost to increase after a more in-depth seismic report is completed. M/S Smith/Larson accepting the Final Report and formally Close Out of the City of Ukiah's Community Development Block Grant Program Economic Development Planning/Technical Assistance Project for the Palace Hotel Re-Use Study, Grant #00-EDBG-727, with instructions to staff to prepare a letter to the owners of the Palace Hotel property as soon as possible inviting them to a meeting to discuss their intentions relative to the property; carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. Recessed: 8:30 p.m. Reconvened: 8:40 p.m. 8. PUBLIC HEARING 8d. Adoption of Resolution Establishing Schedule of Fees and Rates for Garbage and Recycling Collection Service and Approval of 9% CPI Increase For the 2001/2002 Fiscal Year Finance Director Elton advised that this action is to formally implement the garbage rates consistent with what Council previously considered as part of the Transfer Station and single-stream garbage pick up and implementation plans. Reducing the cost to customers who dispose of less garbage retains the concept of promoting conservation by reducing the cost for customers who dispose of less garbage. The proposed rates are based on cost per gallon in various ranges and there will be no increase to the residential rate unless the container size changes. All customers experiencing a cost increase have the potential for reducing their cost if they recycle more and reduce the size of the container they use for garbage disposal. City Manager Horsley emphasized that there is a 0% increase for the annual CPI increase. It also includes the cost for the co-mingled recycling program that is being implemented in January 2002 whereby customers will receive new containers for both recyclables and their garbage. She thanked the members of the Waste Committee and Solid Waste Systems, Inc. for working with the City regarding these rates and being able to Regular Meeting December 5, 2001 Page 12 of 17 implement this program at this time. Public Hearing Opened: 8:44 p.m. No one came forward. Public Hearing Closed: 8:45 p.m. M/S Larson/Smith adopting Resolution 2002-22, Establishing Schedule of Fees for Garbage and Recycling Collection Services for the 2001/2002 Fiscal Year. Councilmember Libby inquired if there would be any hidden costs in the ratepayers' bills and if their bills will remain the same for a 32-gallon container. Mr. Elton explained that there would be no change in the cost for a 32-gallon container. However, if their container size increases, they will have an increase in cost. He continued to discuss container sizes and noted that if more recyclables are taken out of the waste stream, their container size could possibly be reduced. City Manager Horsley explained that Solid Waste Systems, Inc. will provide the containers to customers and they will have automated bins. She emphasized that educational materials are being prepared by Solid Waste Systems and will be distributed to customers upon distribution of the new containers. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 10. NEW BUSINESS 10a. Consideration of Observatory Park Conceptual Design and Authorization to Proceed with Bid Requests Community Services Director DeKnoblough advised that one of the primary budget goals of the Community Services Department for fiscal year 2001/02 is to complete the improvements to Observatory Park and open the park to the public. Staff has completed a conceptual design, and partial improvements to the park including installation of turf and irrigation. In order to proceed with improvements in time for the spring season, staff is requesting Council's approval of the conceptual design as well as the inclusion of recently requested elements, which have not been previously discussed. In adopting the currently budget, Council designated $20,000 of Park Development Funds for construction of park improvements. Community Services Supervisor Sangiacomo discussed the conceptual design included with the Staff Report. The site consists of approximately 3 acres with frontage on both Luce Street and Observatory Avenue. The property is both historic and special in that only five such International Latitude Observatory sites exist around the world. The City recently applied for a Park Bond Grant for the purpose of restoring the buildings and surrounding Regular Meeting December 5, 2001 Page 13 of 17 park area. Should the City receive the Park Bond Grant, staff would return the item to the Council with recommendations at that time. The main idea is to create a passive park with limited parking along the street. The interior of the park is currently turf and the second phase of the conceptual plan consists of implementing a path around the park and a perimeter landscape. In addition, staff has worked with a number of representatives from the neighborhood that have suggested interactive elements within the park. Staff is working with Mendocino County Agricultural Department and Mendocino College to have plant identification throughout the park. Another focus of the landscape around the perimeter will focus on native plants species and to provide additional visual barriers or privacy to the neighbors as well. Mr. DeKnoblough explained that during one of the community meetings, several neighbors expressed concern with the loss of privacy, while others found the view of the park pleasing. He recommended that rather than install a solid wall fence, that staff utilizes the existing three foot high chain link fence for security and have it bordered with landscaping which would create a pedestrian barrier. Another request was for a labyrinth in the park and he expressed some concern with the cost and maintenance of a labyrinth as opposed to a traditional perimeter path. He advised that there was also a request from the neighborhood meetings for a memorial bench and tree program. This would be a way for the City to fund park furniture and would provide a sense of community. Another element that was requested was a peace pole. He noted that no such fixture exists in the City's park system. A suggestion was made to have the word "peace" inscribed on the pole in the four languages of the other observatory sites so that it ties the pole back to the observatory facility. Martin Bradley, Ukiah, stated he is pleased to see the City recognizing the International Latitude of the Observatory Avenue property and at preserving it. He expressed his interest in the preservation of the park and establishing an international peace pole inscribed in four languages. He recommended Council's approval on the conceptual designs mentioned. Mr. Sangiacomo responded to an inquiry by Councilmember Baldwin concerning the passiveness of the park, and advised that the park would contain a large turf area that could be used by the neighborhood for sports activities. He discussed the possibility of landscaping around markers so as not harm those using the area. Consensus of Council was very supportive of the conceptual plan, the peace pole, and many expressed support for the memorial benches. There was some discussion concerning sponsorship of benches in the park by local organizations. Councilmember Libby suggested that a continuous bench be constructed around the large oak tree in the park. Regular Meeting December 5, 2001 Page 14 of 17 Kristy Kelly, Ukiah, discussed the construction of a labyrinth and explained that there is a person in Philo who has built many labyrinths. When she last spoke to him a couple years ago, he quoted her a price of $1,500 for designing and organizing such a project. He also suggested soliciting volunteers to help with the construction that entails moving earth around (berms). Discussion continued with regard to constructing a labyrinth in the park. M/S Baldwin/Ashiku approving the conceptual design of Observatory Park improvements and authorizing staff to proceed with Request for Bids to include a peace pole, memorial benches, and to obtain further analysis for construction of a labyrinth. Councilmember Libby suggested that staff obtain a cost analysis for the construction of a continuous bench around the oak tree. Motion carried by the following roll call vote: AYES: Councilmembers Larson, Smith, Libby, Baldwin, and Mayor Ashiku. NOES: None. ABSENT: None. ABSTAIN: None. 10. NEW BUSINESS 10b. Consideration of Resolution Calling on the State of California to Take Certain Actions to Effectively Reduce Lifter on Highway 101 and Throughout the State Highway System (Councilmember Baldwin) Vice-Mayor Baldwin explained that he provided a letter to Council stating his views about extreme littering along Ukiah's Highway 101 corridor and atthe North State Street entrance to the City. He recommended that Council consider adopting a Resolution that could be sent to other jurisdictions and the State of California. He felt the situation is extremely bad and the Adopt-A-Highway program is not working. Councilmember Baldwin presented Council with a video of litter in the local area. He recommended that the state take over the Adopt-A-Highway program and use a tax to fund it. It was his personal estimate that approximately 80% of the litter is derived from fast food establishments. Councilmember Smith advised that he is supportive of a resolution, however, he could not support terminating the Adopt-A-Highway program. He felt a resolution would put the state on alert that Council has concerns about the matter. Discussion followed concerning the two resolutions contained in Councilmember Baldwin's report. There was further discussion concerning the effectiveness of the Adopt-A-Highway program. The difficulty of litter enforcement was noted. Councilmember Libby noted that there are laws against littering and she could not support imposing a tax on selected businesses because Councilmember Baldwin thinks they contribute to the litter problem. She felt it makes more sense to have the sponsor of an Adopt-A-Highway section clean the area up more than four times each year. She also Regular Meeting December 5, 2001 Page 15 of 17 noted that County prisoners also clean up along the highways. Mayor Ashiku was of the opinion that we need to deal with cleaning up the waste problem and educating the public on the issue. He voiced his support of adopting a resolution if the tax on fast food were to be eliminated, and to call for some amendment to the Adopt-A- Highway program to make it more effective. If the sponsor of an Adopt-A-Highway section does not keep their section clean, they should pay for the privilege of having their advertisement on the highway. Discussion continued with regard to revising a resolution and directing staff to provide Council information on the Adopt-A-Highway program. There was discussion of the lack of education to children with regard to littering. It was the consensus of Council that Councilmember Baldwin would rewrite the resolution incorporating the suggestions of Council. 11. COUNCIL REPORTS Councilmember Larson reported that he attended the Police Department dinner. He also attended a JPA meeting and it was decided to pursue adoption by their members and the District of the JPA agreement with no set timeframe for implementation. They will be reviewing the JPA contract for the last time on December 12, 2001 and then it would go to the City Council for adoption, implementing the JPA and making a statement that there would be consolidation of the fire departments with no set schedule for the actual consolidation of services until some problems are worked out. He attended a MSWMA meeting and sat in the negotiations with the Fire Employees union arbitration. He explained that Councilmembers should h'ave received information concerning a sales tax survey that was conducted in Lake County by Dow and Associates who manage MCOG. Some very positive results were received regarding voter support for a $0.25 sales tax increase specifically targeted for the maintenance of roads. Ukiah may be asked what it might want to see in such a survey because the survey would be Countywide but would also be City specific. The goal is to get a ballot measure on the November ballot. The City is also being asked to provide support for ACA4 that is going to be Proposition 42 on the November election. It will be a constitutional amendment requiring the state to spend the sales tax that's collected from gas sales on roads for transit purposes. Councilmember Libby reported that she attended the Police Department Christmas Party. She attended the grand opening of the Orchard Inn. She felt it should be noted that she had a formal complaint by the owner pertaining to a Planning Commissioner. When he had to appear before a Commission for his project, he felt they were very rude to him. Councilmember Baldwin reported that his wife became a citizen of the United States yesterday. He attended the JPA Fire District meeting and felt it was very positive. Regular Meeting December 5, 2001 Page 16 of 17 Mayor Ashiku reported he attended the Orchard Inn/Best Western Motel grand opening. Mayor Ashiku announced that NCPA will hold their annual meeting in Sacramento around January 22, 2002 and encouraged Councilmembers to attend. 12. CITY MANAGER/CITY CLERK/DIRECTOR REPORTS City Manager Horsley reported that December 7 is the City Employee's Christmas Party and 185 people have signed up to attend. Council will present pins for service to employees and the two Employees of the Year will be announced. She reminded Council of the clean heating in the Ukiah Valley and Council commissioned a piece on clean burning of wood stoves when she distributed to Council. The Economic Development Brochure has finally been completed and she thanked Assistant City Manager Fierro for his work on the brochure. She also displayed the City's tourism brochure to Council. She reported that she received a call regarding the Martin Luther King Day celebration and their request for funding. Discussion followed concerning the need to have an application and information from those organizations that request funding from the City. 13. CLOSED SESSION None. 14. ADJOURNMENT There being no further business, the City Council meeting was adjourned at 10:23 p.m. Marie Ulvila, City Clerk Cathy Elawadly, Recording Secretary Regular Meeting December 5, 2001 Page 17 of 17