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HomeMy WebLinkAboutCity Council Minutes 06/28/1976MINUTES OF MEETING OF CITY COUNCIL PETALUMA, CALIFORNIA JUNE 28, 1976 ADJOURNED MEETING An adjourned meeting of the Petaluma City Council was called to order by Mayor Helen Putnam at the hour of 7:35 p.m. ROLL CALL Present: Councilmen Brunner, Harberson., Hilligoss, Perry *, and Mayor Putnam. Absent:, Councilmen Cavanagh and Mattei. *Councilman Perry arrived at 7:40 p.m. APPROVAL OF MINUTES The minutes of the regular meeting of June 7; 1976, were approved as mailed. CONSENT CALENDAR A motion was made by Councilman Harberson, seconded by Councilman Brunner, to file the ABC applications and approve the resolutions on the Consent Calendar. Motion carried unanimously. Agenda Item #1 ABC application for person-to-person transfer, Gulliver's,' ABC APPLICATION -- 177 North McDowell Boulevard., from Leonard Fadeeff to (- GULL.IVER'S Cheryl and Jack Heringer,.for, on -sale general public premises and caterer's permit was approved. Ag enda Item #2 ABC application for Canton Restaurant, 154 Petaluma ABC APPLICATION-- Boulevard North, Kon Kok and Yuk Lan Chow, original on- CANTON.RESTAURANT sale beer and wine conditional permit was approved. Agenda Item #3 Resolution #7438 N.C.S. approving specifications and CALL FOR BIDS - -- calling for bids July 20, 1976, for public safety com- ��� / PUBLIC SAFETY munications center equipment was adopted. b COMMUNICATIONS CENTER EQUIPMENT . RES #7438 NCS Agenda Item #4 Resolution #7439 N.C.S. accepting completion of work ACCEPT PUBLIC required in parcel map subdivision.No. 88 - Sierra F/ IMPROVEMENTS— 1 National Bank, was adopted. / SIERRA BANK PROJECT RES #7439 NCS FINAL M & O'BUDGET Resolution #7440 N.C.S. approving and adopting a final FISCAL YEAR 1976 -77 Maintenance and Operations Budget for the estimated RES #7440 NCS amounts required to pay the maintenance and operations expenses for conducting the business of the City govern -� !� ment for the fiscal year July 1, 1976, to and including / June 30, 1977, was introduced by Councilman Hilligoss-, seconded by Councilman Perry, and adopted by 5 affirmative and 2 absentee votes. REPORT ON WORKER'S City Manager Robert Meyer reported to the Council the COMPENSATION Assistant City Manager and the Finance Director have f7 spent many months reviewing the feasibility of the City ,..3 5 becoming self - insured for worker's compensation coverage. He asked Assistant City Manager David Breninger to give his report.. . Mr. Breninger stated he and Mr. Scharer had very thoroughly investigated whether it would be more feasible to have the City remain with its present insurance carrier or to be legally "uninsured. ". Various cities in Sonoma County, as well . 814 June 28, 19.76 REPORT ON WORKER'S as the County itself, and other cities iii adjacent areas, C OMPENSATION have -gone to the "uninsured" plan._ Under the "uninsured" (Continued) plan a private firm provides the accounting work on c.laims.and. the City would have to set aside a certain reserve to es:tabl.sh a "pay as you go" basis. This, statistically, might seem the proper thing to do. However, Mr. Breninger .stated, in contacting some of the cities who had gone self - insured., he learned one of the problems was the determination of - whether a claim is a prior claim to be charged against State.Compensation Insurance Fund. Once cities have pulled out of State Fund, they are reluctant 'to pay prior claims. Mr. Breninger further stated there is some State legislation which is beginning to change the tide of the self - insurance program. The State of California Insurance Commission is beginning to look at the self - insurance programs to determine if all workers are receiving the benefits to which they are entitled under law. In some cases, the public agen- cies are - not . paying the medical 'ap_d hospital claims as they should.. Mr. Breninger also stated the courts, appear to be favoring employees in the matters of; worker's compensation, and the statutes of limitations are being eroded away, wherein. former employees who had pr ior claims are reopening cases and being awarded. settlements. The 'staff's reconLmenda:tion is that the City of Petaluma defer entering into a self- insurance program, as it would be necessary to have an in- house_staff member administer the program. Mr_.' Breninger stated it may be well to wait until such time as the City is prepared to add additional personnel to administer not only the worker's compensation insurance, but the general lia- bility insurance .for the City. Mr. John-'Scharer, the Finance Director, also stated it probably would be'well to wait until some'of the cities have reached the five -year pla -teau to determine th.e results of the cash flow of' premiums paid versus the losses. To this date, none of the cities of comparable size to Petaluma have been in the program for .more than a few 'years. At the'conciusi.on of the presentation, it was the concens.us of the City Council' to have a letter written to State Compensation Insurance Fund indicating the City would not ,withdraw in fiscal year 1976 - 77. CLAIMS & BILLS A motion to add this item to the agenda was made RES #7441 NCS Councilman Harberson, seconded by Councilman Brunner., and unanimously approved. Resolution #7441,N.C.S...approving claims and bills, #8616 to 468633, inclusive, - General City; and, #673 to 46691, inclusive, Water, approved for payment by the City Manager, was introduced by Councilman Perry, seconded by Councilman Hilligoss, and adopted by 5 affirmative and 2 absentee votes. APPROVE EMINENT � DOMAIN PROCEEDINGS LAKE -PROPERTY- SUNNYSLOPE ROAD RES 467442 NCS City Attorney Matthew Hudson advised the Council he has been unable to reach the owners of the property on Sunny - slope Road, as the Lake family lives in Guam. Contractor is presently working on the road for'the street widening project and has found the working drawings do not quite conform to the facts in the field. It is necessary to_. acquire a small portion of the Lake property and to move the fence back. In order to get immediate possession of the property, it is necessary go through the court proceedings. Mr. Hudson stated he was still hopeful of being able to acquire the property through negotiations, but asked the Council to approve the eminent domain proceedings in case they were needed. Resolution 467'442 N.C.S. decla public necessity, directing the acquiring of . fee title in real property for street widening purposes, and directing the City Attorney "to take such proceedings as are necessary.to acquire the real property (Lake), was introduced by Councilman Harberson, seconded by Councilman Perry, and approved by 5 affirmative..an.d 2.absemtee votes. 1 1 June 28, 1976 APPROVE CERTIFICATE City Attorney Matthew Hudson reported Manuel Pacheco owns OF COMPLIANCE-- property on Cherry Street which had been divided in the PACHECO PARCEL MAP past in such. a way that it did not conform to the Sub - F69,3 RES #7443 NCS division Map Act.. In order to finalize a loan to enable Mr. Pacheco to proceed with the project, he has run into some problems.. If the City Council would approve a certificate of..compliance,:this would act as interim measure to satisfy. the title company between. the present time and the time when the parcel map is approved by the City Engineer. Mr.. Hudson stated the parcels do not conform to the Subdivision Map Act and a. rather reverse type of action is needed in order to clear up the matter.. At the conclusion of his explanation, Resolution #7443 N.C.S. approving certi- ficate of'compli:ande (Pacheco'-Cherry Street) was introduced by Councilman Perry, seconded by Councilman Hilligoss, and approved by 5 affirmative and 2 absentee votes. HARBOR FEASIBILITY Community Development and Services Coordinator Frank-Gray F6' STUDY--APPROVE advised Phase II and Phase III of the Harbor Feasibility APPLICATION FOR Study had been completed by the contractor, and after his MARINA DEVELOPMENT review, it appears all of the data received conformed to LOAN the terms of the contract for the preparation of the RES.1#7444 NCS report.. The Council's decision this evening is whether or not to apply for the Department of Navigation and ..Ocean Development Loan for the construction of the project. Mr. Gray advised the Council must also accept the Environmental Impact Report.. If accepted by the Council, the Environmental Impact Report will be submitted 'to reviewing agenci.es, including ABAG and the Clearinghouse. He further :state.d even if the Council_ determines to apply for the loan, there are certain points in time when,a decision could be made, even if the funds were granted, not to accept the grant. Mr. Gray stated Mr. Jim Matsueda of DNOD has indicated the application should be filed by July ls.t. However, he would extend the .time one.more day,. if necessary. Mr. Gray then turned the meeting over to Mr. Morgan Noble, a partner in the firm of.Dames and Moore, the prime contractor for the Feasibility Study. Mr. Noble introduced members of. his team, Mt. John Moore who had done the engineering, Mr. Chris Go.ul:d Igilliams,'Kuebelbeek and Associates, Inc., who had done the Economic Feasibility section, an:d Walt Smith of Don Laidlaw Associates, who had prepared. the Environmental Impact Report. Mr. Noble indicated,, after having completed 'Phase II of the project, it is the feeling of " the engineers .th.e, project is a. good one and is even more feasible than indicated in Phrase I of their study. In the second phase of the Feasbility Report, emphasis was placed on the engineering for Configuration "A" of Site 1. The.second phase of the rep'ort,indicates the cost would be about $270,000 higher,. but it is the feeling of the consultants the income would more than justify the increased cost. Some of "the increase in the cost is due to additional - items, such as adock walkway around the project and surfacing of the storage ramp area which they felt should e City-operated and not be leased. Mr. Noble stated the entre' project now would be approximately $2.1.6 million; the City's reponsibility for" for off -site improvements would be just under $45,000. If the access road leading .to the launching ramp site is disallowed by the State in the loan, the.additional cost would_be $40,500, or a total of approximately $85,000 of construction cost. for the City to assume. Mr. Noble stated the way they are extending it, he felt this $40,500 would-be included in the loan. The other costs.the City would have to assume would be for the acquisition of land. Mr. Noble suggested t -he Council,shoul.d, in the "next two or three years, budget from $20,000 to to p the permits to be required. He stated they were unable to fix a value on, the land and show the assessed market value. Mr.: Noble then went on to review, by means of the viewfoil, the various plates contained in the Feasibility Report submitted to the City Council. Plate No. 4, the proposed marina development, Plate No. 6, the areas for expan- sion, Plate No. 5, which shows the existing ground elevation, the slope and the requirement for dredging. 3 �1 June 28, 1976 HARBOR FEASIBILITY Mr: Noble then went on to explain Plate No. 9, which is STUDY -- APPROVE the location of water samples and the total settling test APPLICATION FOR results. MARINA DEVELOPMENT LOAN ; referring to Plate No. 10, the time rate that settle- RES ��7444 NC merit occurs, Mr. Noble indicated under. certain conditions (Continued) --it may be necessary to dredge once every -four years.; however, it is their.opinion it would not have to be - - .dredged more often than once every eight years. This would fit in with the Corps of Engineers' maintenance program on the river. Mr. Noble then ,reviewed Table 10, Itemized Project Construction Cost, on Page 51 of the report. I3e pointed out the items for which the City.would have to assume responsibility. One is resurfacing Casa Grande Road in the amount of $20,397; the second is to extend the water main at a cost of $24,000; and, the third cost would be to purchase the land., estimated at $23,000. In. explaining :Table,ll, The Estimate of Leasee Development Cost, Mr. Noble stated construction costs were anticipated,for'1979. The total cost would depend upon what requirements the City would place on the leasee. Mr.' Noble then referred to :Table l2 on Page 53 of the Report which provides for reduction in th.e construction cost by.using alternative materials or reduction of` facilities. These items . could be used to reduce the total cost of the DNOD loan portion;. hoNSe.ver, it is the feeling of the consultants the project is feasible as outlined in,the report without depending upon these reductions. Mr. Chris Gould of the.`firm. of Williams, Kuebelbeek and Associates, Inc., then reported on, the o era cost for the proposed marina. The first phase in P cluded.a,preliminary tudy of the market demand, and preliminary conclusions regard in 'the financial feasibility. Since mid =May, the firm has completed a detailed financial analysis based on the engineering stiidies done by Dames and Moore. The Phase IL portion of -the project includes recommendations for develop- ment and.operation of the proposed project, the funding program projection of income and g expenses, e, and an overall de terminationoofrf�nancralfeasibilit MrGould stated the most appropriate - an repayment method ,.for developing,the.marina requires the City to assume responsibility for building the project and its operation. It i their recommendation the ancillary facilities be built by.the City and leased for operation. This has been the most successful method of operation for the majority of the marinas located in North- ern'Calif'ornia, and many of the smaller marinas in Southern California. Mr.. GouJ_d.fur.ther.s.tated he did not anticipate the City would have any problem . find ing people who were anxious and willing to operate the boat stores„ the restaurant; the coffee shop; and other facilities to be located at the project. Mr. Gould, stated their recommendation for-funding the project would'be the 30- year, percent. loans available from.-the Department of Navigation and Ocean . Development., The security for the loan is the income from the project. Delay for repayment of loan for the first.five years is permitted if the project does not .have the capability of repaym. Gould he felt ent of the loan. Mr it was important to point out there were a number of alternatives regarding the q ac uisition of the land. The City could purchase the land through negotiation or reach some type of trade agreem condemnation; and ent. It could be acquired by even a long -term lease would be.acceptable to the.State. Mr. Gould stated the operating income would be from the b "oat slips and the dry storage users, and from the land rent from long -term leases of the commercial concessions. Their firm feels the project is feasible, would. begin to generate revenue mme- diately, and at ,the third year, would be able to pay some of the debt service. They feel the project would meet the State's ,guidelines and the critical test of d. After the third being able to: obtain full sufficiency within a five -year perio year, the project would generate funds which could be held in reserve for main- , be held in reserve for capital expenditures, or tenance dredging. o f.the marina revert to the C Ly's General. Fund. w l 1 June 28, 1976 HARBOR FEASIBILITY STUDY - =APPROVE APPLICATION FOR MARINA DEVELOPMENT LOAN RES. X674 „44 NCS Frank Gray questioned whether or"not the surplus could be used to .repay the City for the initial expenses incurred, including the $35,000 for the feasibility study,'and =the other costs *f or the construction. Mr. Gould indicated °the surplus could be applied to these loans. (Continued) Phase III of the Feasibility Study, the Environmental Impact Report, had been prepared by Don Laidlaw and Associates, Santa Rosa, California. Mr. Walt Smith was present to review the Environmental Impact Report with the City Council. He stated there would be minor demands for sewer and water services in the area which would'be within the City's capacity to. service. These matters are described in great detail in the report. In relating to air quality, there.would be some minor adverse effects, and an additional impact on the level of traffic on Lakeville Highway. The marina would alter_ the filtration and shoaling patterns in the river and generate between 3,900 and 7,300 cubic yards in the basin. This would require dredging the basin every five to eight years. Mr. Smith als'o"stated the Sonoma County Water Agency expressed some concern regarding building additional dikes in the area with relation to the 100 -year flood condition around the site. Mr. Gray reminded the Council these same concerns..were expressed by the Sonoma County Water Agency when the City wanted to construct the spoils site for dredging. The matter had been resolved between U. S. Army Corps of Engineers and the Sonoma County Water Agency. Mr. Smith stated much of the information contained in the E.I.R. was given to them by the Corps of Engineers. Mr. Smith stated, in.their research for the report, they could determine no historic or archeological sites in the area. The change in land use would be from a marginal agricultural .land and the City dump site, to the marina. With respect to the tallow works being in proximity to the marina, he advised the wind patterns in the area, except on very rare occasions, would keep any odors emitting from the factory from penetrating the marina site.. In relating to social and economic_ impacts, Mr. Smith stated the project will provide jobs, not only short -term during the construction period, but long -term jobs as-the marina goes into operation. The marina will increase City revenues through the - leasi:ng fee per_berth,'taxes on the improvements, sales taxes, etc. Generally, the social economic effects are beneficial. At`the conclusion of Mr. Smith's review of the draft Environmental Impact Report, Mr. Noble stated the team had completed their responsibility in the preparation - of the Feasbility Report and the matter was then open for discussion by the City Council. Councilman Harberson-felt he would have'to disagree with having the City operate the storage ramp, preferring to have it leased to a private operator. He also stated he did not feel any item should be removed from the project which would lower the cost of the loan. A discussion was then held regarding the initial financing of the project and where and how the funds would be generated. Councilman Harberson stated he did not-foresee a surplus of from $45,000 to $85,000 to be used for.the initial public improvements the City would 'have to provide. Mr. Gray stated he was a little more conservative i.n his estimate for the initial cost and felt $100,000 to $150,000 would be a more realistic figure, the City would have'to invest before realizing any return on the project. The report will be reviewed by the Department of Navigation and Ocean Development and if it is as feasible as the report states., there should be sufficient surplus to pay the City back any money invested in the project. The marina could generate recreational benefits, as well as monetary benefits. City Manager Robert Meyer. stated the decision of where to utilize funds for the marina would be a matter of policy and a political decision to be.made by the City Council. One area which he suggested could be from the revenue sharing funds; however, the matter would have to.be resolved by how the Council places i,ts priorities on the expenditure of these funds. s�� 31,E June 28, 1976 HARBOR FEASIBILITY 'At.the conclusion of the discussion:, Resolution.#7444• STUDY -- APPROVE ;. N.C.S. of the City Council of the City of Petaluma, APPLT,CATION FOR approving the'ap.plication for a marina development loan MARINA DEVELOPMENT from California, mSDevelopnient introduced by Councilman Ocean , was re RES X67444 NCS, Brunner .seconded by.Councilman Perry, and adopted by -4 (Continued) affirmative and 2 absentee votes, and 1 abstentio. Councilman.Iilligoss abstained from voting: Conununi-ty Development and Services Coordinator Frank - Gray advised - the 'Council they would.need' to make a'motion to direct him to file a notice of completion with the State of'California on the draft E.I.R., and submit the.E.I.,R. to the various reviewing agencies'. A. motion was made.by.Councilman Perry, seconded by Councilman Brunner,'dErect'ing the Community De.velopment Services Coordinator to file a Notice .of Completion on the draft E.I.R. with the State of California. Motion carried by 4 affir -' mative,.2 votes, and . 1 abstention. Councilman Hilligoss abstained .from voting... ADJOURNMENT There being' n.o' further business to come before tle' ' Council, the meeting was adjourned at 9:45 p.m. A