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HomeMy WebLinkAboutMinutes 11/03/1997IVovember 3, 1997 Vo1.31, Page 153 i Ii~IINU'I'ES z OF A ItEG~1I.A~t 1VgEE~'ING s P~TAI.UNIA CI'I'Y CO~JNCII. a 1VIONI)E1~', NOVEMBER 3, 1997 s ROLL Ct~I,L 3:00 u.m. s Present: Read, Keller, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss ~ Absent: Stompe s PUBLIC C'OMIVIEN'I' 9 Bryant Moynihan - representing the Chamber of Commerce - said the Chamber of Commerce io is eager and ready to work with the Petaluma Community Development Commission on the ~i Economic Vision for Petaluma. They have been working with the City of San Rafael and its i2 Chamber of Commerce who have successfully begun an economic vision for their city. is Robert Eiler, who is on the faculty at Sonoma State, will work with students from that ia university on this program for the City. He noted the data gathering is quite time consuming is and the students have already done some related work on this. i6 Jeff Harriman, representing the Downtown Association, invited the Council to a party for the i~ COTS "New Children's Playground Project" and the Downtown Association "Foot Patrol is Officer Project." Tickets are $25 per person. Rai~le tickets are also available. 19 CO~JNCIL COMIVIENT zo PT - Thanked the Chamber of Commerce for putting this proposal together. She would be Zi happy to participate: ~Vhen the last proposal comes in and the topic is on the agenda for the 22 Petaluma Community Development Commission, she would like to have all the consultants z3 present so the Council could meet them and hear their presentations. za DK - VVould also like to meet the consultants on the Petaluma Commuruty Development as Commission Project Area Alternative Analysis. I~e would like to see the components on a 26 sustainable commuruty strengthened. Thanked Jim Webb for his many years of service to the 2~ City of Peta-uma. za NR - Congratulations to Pat Parks as the new Police Chief. Regarding the economic viability av meetings she has been talking to Mayor A1 Boro of San Rafael about their successful efforts. so She attended the Sonoma County meeting on the same subject. A lot of information has si already been gathered. 3z MM - He has a copy of a proposed ordinance on lead paints which he would like the City to 33 adopt. T'his was passed on to the City Manager. 34 ~~~~ES ss The minutes of the September 22 meeting were approved as subrrutted. 'The Council asked 36 why the minutes were verbatim. The City Clerk noted that she does not have the knowledge 3~ or the expertise to shorten the experts' testimony on wastewater details. Key to abbrevrations: JH-i~ice Mayor Jane I-Iamilton, NR-Councilmember Nancy Reacl PH-MayorM. PatriciaHilligoss, MS-CouncilmemberMaryStompe DK Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee Page 154, Vol. 31 November 3, 1997 i The minutes of the October 6 meeting were approved as conected. z Page 8 Line 10 - Add the public hearing was opened and no one wished to speak so the 3 hearing was closed. a Page 9, Line 14, change the date to October 9. s The minutes of the October 20 meeting were approved as corrected 6 Page 5, Line 13 and those following: Councilwoman Torliatt would like the following ~ amendments made: On Line 16 - reword, "second language. the lessons began in May to an s enthusiastic class of 35 adults living in the 74 unit family complex in I'etaluma. This is a call 9 by the residents because 38% of the families speak at home a language that is not English. ~o And, Lynn McKenna the service coordinator put this program together and I thought it was i i really commendable that Eden Housing is trying to help people use English as a second ia language. So I wanted to commend her for putting that program together. Also through is Califorrua Healthy Cities Project it states that Pasadena received an award for perfoxmance ~a based budget. So Y would like to see the Council get a copy af that or if we could have one is available since when we were going through our budget we had indicated to staff we would i6 look to changing the format of our budget and that we might want to go toward this type of a ~~ budget, so if Pasadena has received an award for it I'd like to have here so we would review ~a it. Also, Pamela Tuft the 1'lanrung Directo'r had sent a letter t~ Linda Buffo that the Council i9 was cc'd on regarding a public outreach program to inform all property owners and business zo owners of the existing regulations to govern signs and sidewalk encroachments in the 2i downtown area. I am interested in this, Pamela, and I am looking forward to it coming back 22 to the Council so we can not have our encroachments out of cantrol as people were saying. g ~3 that is something that I would like to see agendized and brought back, as well as we received za a letter from the beautification Chair of the Downtown Association regarding the poorly zs maintained news racks in the downtown area so I'd like to se~ that maybe all rolled into one 26 and I also received a complaint that a lot of the garbage in the downtown area is not being z~ picked up on a regular basis. I would like to have staff look into that and make sure that I 2a know when we were talking about our budget for the downtown area that we were going to 29 increase the pick-up service down there and I think that was one of the things that was 1eft on so VVarren's desk. Maybe at that point in time as well as we wei-e looking recycling containers 3i in the downtown as part of our contract that we signed up with Waste 1Vlanagement which I sz did not vote in favor of, but I wanted to make sure tfiat vve get what we are paying for and 33 I'd like to see that happen. 34 Page 7, Lines 5- 7- Change Councilwoman Torliatt's comments to read: "I just want to 3s state for the record g am going to be voting `no' on this issue. VVhen it came before Council 36 initially a the afternoon session not the last meeting but the prior meeting it was a four/three 3~ vote that it passed. It wasn't a unanimous vote and I voted `no' at that point in time. I think 3s there was an issue regarding foreclosures on the property and if the assessment doesn't get 39 paid and how the city would have to get involved with that I'm not in favor of that. I sat on ao the Planning Commission at the time that this development went through the process and at ai that point in time a lot of the issues that we dealt with were the fact that the improvements aa were in place at that time and we were going to have to use a lot of those improvements 43 because the deveYopment wouldn't be financable. Key to abbreviatrons: JH-I,ice Mayor Jane Hamilton, NR-Councilmember Nancy IZead PH-MayorM. PatriciaHilligoss, MS-CouncilmemberMaryStompe DK Councrlmember David Keller°, FT-Councilmernber Pamela Torliatt MM-Councilmember Matt Maguire CWt1C - Citizens WastewaterAdvisory Committee I~Iovember 3, 1997 `Io1.31, Page 155 i Then I hear eoming back to us at the first meeting when we discussed this bond issue that z most of the public improvements were taken out. So I have some bad tvstory I guess with 3 this project in respect to that. I also think that the Council should just look at policy wise a whether or not we are going to be looking at bonding residential developments because I s believe this is basically precedent setting as far as residential development m this quantity et 6 cetera. We've done two before, one is Corona Ely which is a huge development and this ~s a ~ small parcel compared to the Corona Ely so I think that the Council should initiate some sort a of policy regarding tl~us type of bonding, financing, since it has been so controversial. 9 Page 9, Line 3S - Councilwoman Stompe FAXed t}us correction: at the end of the line, add io the policy assumes corruption and purushes the volunteers in our community. (there is an ii anow that appears to come from other writing that is not visible) City spent approximately i2 $3,000 to have the Code of Ethics reviewed by legal staff because of the rarrufications the is proposed code would have had on City employees. 14 PRESENTATION is I,ouise Beranti, President of the Petaluma Garden Club, presented Bill Brady who described i6 the Lavatera `bicolor' which is the flower the Petaluma Garden Club recommended be i~ adopted as the City Flower. Mr. ~rady noted the flower is in the mallow family. It came is from the Mediterranean area to the Channel Islands. From there it naturalized along the i9 coast of California. It is now a`hybridized' weed as are many flowers. It is hardy, blooms ao throughout the year, is lavender on lavender. It grows to a good height. 21 CONSEN'I' CAI.El~TI)AR z2 The following items which are noncontroversial and which have been reviewed by the City zs Council and staff were enacted by one motion which was introduced by DK and seconded by 24 NR. 2s Ayes: Read, Keller, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss 26 Noes: None 2~ Absent: Stompe 28 ItESO. 97-2971VCS 29 CI,AINIS ANID BII,I,S so Resolution 97- NCS approving Claims and Bills #68564 to #68843. 31 ~SO. 97-298 NCS 3z RESIGNA'I'ION ~ISTORYCAY./CiTL'I'UR.AI. ss Izesolution 97-298 NCS accepting the resignation of Jim Webb from the ~Iistorical and 34 Cultural Preservation Committee (Heritage Homes Representative). 35 ~SOe 97-299 NCS 36 ST~E~' CLOSURE 3~ Resolution 97-299 NCS approving street closure November 11 for Veterans' Day Parade. Key to abbreviations: JH-i~ice Mayor Jane Hamilton, NR-Councilmem8er Naney Read PH-Mayor M. Patricia Hilligoss, MS-Councilmember Mary Stompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee Page 156, Vol. 31 November 3, 1997 i ~tES~.I. 97-300 NCS 2 API'ROPRIAT~ON5I,INII'I° 3 Resolution 97-300 NCS approving the appropriations limit for 1997-98 at $44,699,477. This a action is the result of legislation a number of years ago, often referred to as SB-4. s Government Code §7902 (Statutes 1980, Chapter 1205 §2) outlines the formula for 6 deterrrurung the appropriations liTrut. The 1997-98 appropriations which are subject to this ~ appropriations limit is $14,1162,472. s Ii~SOm 97-301 NCS 9 MOU ITNI'I' 3 C'LERICAL io Resolution 97-301 NCS approving the Memorandum of Understanding for Unit 3- Clerical. ii ItESO. 97-302 NC5 iz IiR0~1 ~JNYT° 7 F~ is Resolution 97-302 NCS approving the Memorandum of Understanding for Unit 7- Fire. ia ***** End of Consent Calendar **'k** is I~SO. 97-303 NCS i6 GRADING PRIOIt TO FINAI~ MAP- WII,I.OW GLEN i~ Resolution 97-303 NCS approving grading prior to final map for Willow Glen Subdivision is which is located easterly of Sonoma 1Viountain Parkway just past Alderwood Subdivision and ~9 Washington Creek. After some discussion about whether or not approving tlus activity 2o shortly before the rainy season is a good idea, staff was asked to bring back to the Council Zi the opportunity to discuss and most likely change this develo~ment pattern. Introduced by z2 NIt, seconded by 1VI1VI. 23 Ayes; Read, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss 2a Noes: Keller 25 Absent: Stompe 26 CLOSED SESSIOI~1 2~ The City Council recessed to Closed Session for: Za Conference with real estate negotiator pursuant (Jenr~ufer ~arcett) to Government Code 29 §54956.8 to discuss property at 4104 Lakeville Highway (AP 068-010-026 and 017-170- 30 002) to discuss price and terms of payment; and, 3i Conference with legal counsel on anticipated litigation - initiation - pursuant to Government 32 Code §54945.9(c) - 1 matter; and, 33 Conference with legal counsel on anticipated litigation - significant exposure to litigation 3a pursuant to Government Code §54956.9(b) - 1 matter; and, Key to abbreviations: JH-Vice Mayor Jane Hamilton, NR-Councilmember Nancy Read PH-Mayor M. Patricia Hilligoss, ri~1S-Councilme»iber Mary Stompe DK- Councilmember David Keller, PT-Councilmember Pamela TorPiatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee November 3, 1997 Vo1.31, Page 157 i Conference with legal counsel on existing litigation pursuant to Government Code 2§54956.9(a)Press I~emocrat vs. City of Petaluma, Superior Court Case 216071 s Conference on Public Employment pursuant to Government Code §54957 to review City a Manager applications with Ralph Freedman, of Ralph Anderson Associates. 5 AI),TOUI~N to dinner 6 12ECONVEN~ 7:00 p.mo ~ Present: Read, Keller, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss s Absent: Stompe 9 PLEDGE OF AI,I~EGIANCE io F'ormer Councilwoman Bonnie Nelson led the Pledge of Allegiance to the flag. 11 MOMENT OF SILENCE 12 CLOSEID SESSION ItEPOR'T i3 Mayor Hilligoss said with respect to the pending case entitled Press Democrat vs. City of ia Petaluma, the City Council discussed with the City Attorney, the appeal by the Press is Democrat of the Sonoma County Superior Court's decision in favor of the City regarding the i6 Press Democrat's request for Wastewater Facility Pricing Information. There was nothing to i~ report as to the other closed session items. The City Council narrowed down the candidates is for City Manager to seven. 19 PUBg.IC COIVIMENT zo Robert Maser - Neighbors for a Better Petaluma - At the Planning Commission they were Zi given ampYe time to represent their thoughts about the Hillside Village EIR. ~-Ie asked that a2 when it comes before the City Council on November 17, they be given adequate time to Zs address the issue to the City Council. aa JH noted that it has been the City Council's policy to allow people the time they need. zs Victor Chechanover - urged the City Council to look into the wholesale purchase of 26 electricity for the residents of the City. ~Ie hopes in the next water billing we can have some 2~ news about this. za MM - we are looking at that, for the city to pool and resell to individual homes. 2v I~K - when will we change the billing format? 3o David Spilman, Finance Director - that is coming on line now. 3i COZJNCIL COI~YMEN'r sz DK - at this point he would like to have the dates of the meetings on the new sewer plant 33 printed in the water bills so that customers would not have to read the newspaper to know 3a when the meetings are scheduled. This would give them more opportunity to participate. ss JH - Congratulations and Welcome to Pat Parks. She is thrilled to have him working with 36 the community. Key to abbreviations: JH-Vice Mayor Jane Hamilton, NR-Councilmember Nancy Read PH-Mayor M. Patricia Hilligoss, MS-Councilmember Mary Stompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee Page 158, Vol. 31 November 3, 1997 i PT - she reiterated the Congratulations. 2 IVIlVI - read a letter from Supervisor Harberson about I,afferty Ranch. ~Ie noted the EIIZ on 3 Lafferty Ranch is currently in the works. The search for a regional park for the south county a is ongoing, although he has not been able to find a property owner willing to sell to the s County. MM was not pleased with the wording of the letter. He said it is time for this City 6 Council to find out what he is doing. ~Ie asked the citizens to call or write Supervisor ~ Harberson, to express their feelings and to out what he is doing. s PT - we invited him to speak with the constituency. He has nat entertained that option. She v would encourage him to come down and speak to his constituency and to the Council. ~o DK - it a lousy excuse to be presented at this body and we get a memo saying he doesn't i i have time in November. He has distributed to the Council a copy of a study from the Texas ~z Transportation Institute about gridlock and ways to reduce gridlock of the roadways. It is is going to take a comprehensive effort to work on congestion reduction. ICey portions of the ia report are on the Internet at http://tti.tamu.edu/mobility. ~s NR - attended the Public LTtility Commission hearing on rail, the Northwest Pacific and the i6 Northcoast Rail Authority's joint meeting. She would still request that the City Council take ~~ an action to write to the Joint Powers Authority to please make sure that our asset isn't is leveraged against bailing out part of the rail. She would like it to be an agenda item soon. i9 Received phone calls regarding the activities at Helen Putnam Plaza and she would like to zo discuss that soon. zi MM - we should just direct staff to write the letter. It was a unarumous nodding of heads zz (Stompe absent) to ask staff to write a letter on railroad use of the area surrounding the zs Depot. Za ~SO. 97-303 NCE ~s COPS UNIVERSAI. ~-IIRING GRAN~' zs Resolution 97-303 NCS authorizing the City of Petaluma Police Department to seek a I'olice a~ Officer position to continue the DARE program and when school is not in session to continue 2s to address the problems and concerns in the Downtown Area. 'Plus program must be given z9 by a sworn police officer. The Council heard the newly appointed Police Chief Pat Parks ask so for authority to apply for COPS grants to assist with the DARE program and increased 3i downtown security. The Petaluma Drug Abuse Resistance Education (D.A:R.E.) program sa has been expanded into two separate new schools. This expansion, coupled with the current 33 workload, necessitates assigning an additional officer on a part-time basis to teach the 34 program. The schools have agreed to help finance the costs af providing these services. In 3s addition, there has been increasing pressure from the downtown merchants to hire Police 36 O~icers to work downtown because of problerns associated with youth and young adults. 3~ This additional officer would work in both areas, DARE and Downtown. The annual funding 3s would be $25,000 from COPS Universal Hiring [funding period 3 years]; P.C.D.C. $25,000 39 [fi~nding period - ongoing]; Petaluma Schools $12,000 [funding period - ongoing]; and ao Petaluma Health Care Distnct $10,000 [funding period - 3 years]. Key to abbreviations: JH-Vice Mayor Jane Hamiltorr, NR-Councilmember Nancy Reac1 PH-MayorM. PatriciaHilligoss, h~IS-CouncilmemberMaryStompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee November 3, 1997 Vo1.31, Page 159 i It was noted the problem, that arose in Putnam Plaza some time ago, has escalated again. 2 The City Council heard Linda Buffo of the Downtown Association tell about the variety of 3 illegal encounters citizens have had with the people who are now frequenting the Plaza. The a Council also heard from a local business person who said that some merchants have been s vandalized when the people who frequent the Plaza learned the merchant had reported to the 6 Police. The sidewalks are being defaced with unacceptable language. Businesses are again ~ having problems in that customers simply will not pass between the people in the Plaza and s the businesses. People are also being pan-handled in the Plaza. The City Council also heard s that some of these individuals also have scanners, so they can monitor the Police activity; and io they know when the officers are on their way to the Plaza. There has been an arson fire in i i the dumpster boxes. They tag spray people's properties. They urinate in the alley so much i2 that the area smells of it. Photographs were circulated to the City Council showing some of is the damage and rubbish. ia Elizabeth Vathinger moved here in 1975. She supports increased Police patrols in the is downtown. Her mother is afraid to go downtown because of verbal assaults, drugs, and so i6 on. i~ Victor Chechanover - in general the Petaluma Police say it is a successful program. In most is programs there is a follow-up study. How many of you saw the article the other day showing ~9 the use of drugs by children has increased. DARE is supposed to be targeted to 12 year zo olds. He urged the Council to look into the DARE program to see that the money is being zi used effectively. I3e still can't figure out why two patrol cars are needed to come to a fender a2 bender. I-ie urged the Council to take a firm stand. 23 Council comments: za JH - asked the City Manager to find out about the dumpster pick-up schedule and the trash 2s pick-up. She noted that it is a disgusting clutter. We need better coordination. Persons z6 should communicate with whomever needs to be communicated with. We need to know a~ what needs to be done to keep the area clean. Contact Waste Management. This is a gaping 2s hole. We were promised some of these tlungs were to be taken care of by them. DK maybe 29 the dumpster lids can be Yocked. VVe need to have consideration of more frequent pick-ups in 3o the downtown area. What would it take to have street sweeping on the route? PT° - Besides 3i the foregoing, what is the schedule for sidewalk clearung downtown.? As far as the garbage 3z goes, the container, that does not belong Yo the Empire Waste company for pick-up, should 33 be removed. It is of utmost importance to cYean this up now. \1Ve need to talk to the school 3a district to determine who should be in school. ]VI~ - we have a clear and present danger at 3s Putnam Plaza. She wants to see th~s corrected now. T'he Downtown Merchants are 36 encouraged to voice their concerns to us. VVe need to get phone calls early on.. The s~ responsibility is ours and I accept that responsibility. 3s City Manager Beatty said something will be on the 17th agenda on the subject. Resolution 39 97-303 NCS was introduced by MM and seconded by JH. ao Ayes: Read, Keller, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss ai Noes: None aa Absent: Stompe Key to abbreviations: JH-i~ice Mayor Jane Hamilton, NR-Councilmember Nancy Read PH-Mayor~Y~I. PatriciaHilligoss, MS-CouncilrnemberMaryStompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee Page 160, Vol. 31 Novem~er 3, 1997 i 12ES0, 97-3041VCS z DOMES'TIC VIOLENCE G~tAN'I° 3 Resolution 97-304 NCS authorizing the City of Petaluma Police Department to seek a a Domestic Violence grant funded by the Petaluma Health Care District. Domestic Violence s has had a significant impact on police workload and on the commuruty. The Petaluma I3ealth 6 Care District is interested in funding multi-year projects to improve community health. The ~ Police Department is proposing that an application be subrrutted to them for $50,000 - s $60,000 per year for 3 years to be applied toward hiring an officer to work on domestic 9 violence. Domestic violence arrests are up 30%. The City is taking a very strong stance on io the problem, the most aggressive stance in the county. ~i Kay Russo spoke in support of this funding effort. She is a member of the giCz Domestic is Violence Committee. This is not just husbands battering wives; it is also child abuse, any i3 kind of family abuse. As a wife of a police officer, she mentioned this is one of the most ia dangerous situations for police officers. She encouraged the Council to support this Police is Department request. i6 Resolution 97-304 NCS was introduced by MM and seconded by 7H. i7 Ayes: Read, Keller, Torliatt, Maguire, Vice Mayor Hamilton, Mayor Hilligoss is Noes: None i9 Absent: Stompe Zo CAD STA'I'US ItEPOR'~ zi Police Chief Parks noted that progress is being made, alfhough with the number of az jurisdictions involved, it has been slower than they had hoped. A contract has been sent to a3 the firm who will be the "Integrator" which is IBM. Five percent has been set aside to have za someone available to give them `professional advice.' ~Ie will continue to keep the Council Zs informed of the progress. z6 DISC~JSSION OF FAI2NK~PF ~POR'I' 2~ John Farnkopf was retained to advise the City Council how the proposed wastewater zs privatization contract can be amended in order to assure that the rate the City's sewer z9 ratepayers will be paying will be as reasonable as possible. I~e said there is a lot of vagueness so to the agreement and suggested there needs to be more clarity that will come with the si negotiation process. The report presented to the City Council by Mr. Farnkopf made the 3z following suggestions: 33 > Types of Service Fees - The City convert the method for deternuning the Company's 34 compensation from an indexed service fee to a service fee that is derived on a cost-plus ~s basis. 36 > Initial Construction Costs - Since the shift to cost-plus compensation requires verification s~ of the costs comprising the "FC 1" or "fixed amount reflecting the capital investment 3s relative to the Company's provision of treatment capacity," any other costs, such as 39 contingencies for risk, should be excluded from FC 1. Key to abbreviations: JH-Vice Mayor Jane Hamilton, NR-Councilrnember Nancy Read . PN-Mayor M. Patricia Hilligoss, h~IS-Councilmem8er Mary Stompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee November 3, 1997 Vo1.31, Page 161 i> Expansion Construction Costs - Because of the combined risks of cost estimation 2 inaccuracies and arbitrary rates of return, it is recommended that the costs of expansiog s should be treated in the same way as other City capitaY projects, pursuant to Section 7.4 , a amended as necessary. And - to minimize the cost and exposure to rate payers, they s recommended that the City plan on financing as much of the cost of the expansion from 6 its own sources, preferable through revenue from capacity charges. ~> Itenewal and Replacement Costs - T'he cost of renewals and replacements should be a explicitly identified and included in the cost-plus budget for FC2. (FC2 is the Fixed Cost s reflecting fixed operations, administrative and maintenance costs, including Industrial Pre- io treatment and Pollution Prevention Programs.) ii > Operating Costs - Inde~cing - As part of the determination of the cost-plus budget there i2 should be a"balancing account" mechanism that would reconcile projected costs to actual is costs. ia > Cost Adjustments - 1. Section §5.52 should be expanded to specify exactly how budget is costs would be reconciled to actual costs. 2. The City negotiate the Agreement i6 concurrently with the pending analysis of the Petaluma Public Utilities Commission to i~ assure that the Agreement reflects the rate-making requirements of the Commission and ia that it does not impose an unjustifiably high cost of regulation on the City and Company. i9 3. The period of time between reviews should be determined at the time that the City zo considers the formation of a Petaluma Public Utilities Commission. For purposes of Zi negotiating the Agreement, it is recommended the use of three one-year review periods za for the first three reviews with an option at the City's sole discretion of extending the z3 period to a longer period at any time thereafter. za His specificrecommendations were: zs Capital Costs - z6 > Clearly define FC1 - Any costs other than the initial cost of debt ancY equity financing for a7 the construction of the treatment facility should be expressly excluded from FC 1. (FC 1 is Zs the fixed amount reflecting capital investment relative to the Company's provision of z9 treatment capacity.) 30 > 7Creat expansion costs the same as subsequent capital projects - The capital cost of s~ expanding the treatment facility should be treated as a City capital project pursuant to s2 Section §7.4. 33 > F'inancing the cost of expansion - To minimize the cost to rate payers, the City should sa consider financing as much of the cost of expansion as possible from its own sources. 3s Such sources could include revenue from capacity charges paid by future new customers 36 paid at the time of connection. 3~ > Explicit compensation for renewa-s and replacements - The cost of renewals and 3s replacements should be excluded from FC1, if it is not already, and explicitly added to 39 FC2. (FC2 is the amount "to reflect fixed operations, administrative and maintenance ao costs, including Industrial Pretreatment and Pollution Prevention Programs." ai Operating Costs - Key to abbreviations: .1H-Vice hlayor Jane Hamilton, NR-Councilmember Nancy Read PH-MayorM. PatriciaHilligoss, MS-CouncilmemberMaryS°tompe DK- Councilmember David Keller, PT-Counci/member Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citrzens WastewaterAdvisory Committee Page 162, Vol. 31 November 3, 1997 i> Convert from indexed to cost-based component fees - The component fees for operations z should be derived frorn a detailed budget of costs that are projected using forecasting 3 techniques that are appropriate to Yhe individual cost. The component fees could a effectively be preserved as subtotals of budgeted costs. s> Clearly specify cost reconciliation analysis -§5.5.2 should provide additional specific 6 language and examples explaining exactly how the reconciliation should be made between ~ budgeted and actual costs. s> Introduce a balancing account - The provision for ±25% "true up" should be replaced 9 with a procedure whereby the reconciliation retroactively reimburses prior years' io variances from actual costs. i i Procedural Conditions i2 > Petaluma Public Utilities Commission formation - We recommend that the City negotiate i3 the Agreement concurrently with the pending analysis of the Petaluma Public Utilities ia Commission to assure that the agreement reflects the rate-making requirements of the is Commission and that it does not impose an unjustifiably high cost of regulation on the i6 City and Company. i~ > Compensation review period - The period of time between cost reviews should be is deternuned at the time that the City considers the formation of Petaluma Utilities i9 Commission. For purposes of negotiating the Agreement, we recommend the use of zo three annual review periods with an option at the City's sole discretion of extending the 2i review period any time thereafter. zz Council discussion: z3 PT - who wrote the agreement and how was the index fee chosen? She wants more za information on the commission. What risks will be held by campany and what risks will be Zs held by the City? 26 Response - Pat Gallagher, of Camp Dresser & McKee. Pat Gallagher noted this is common z~ practice. 2s DK - noted that Chandler, Arizona, is only privately owned plant and he would like to see 29 information from another such plant. 3o Mr. Farnkopf suggested having retroactive adjustments - compare the vision with reality and si true the two up for the following year. This would minimize risk built into the fee and 3z gninimize profi~. 33 MM - would like to see a compilation of what the risks are in order to develop a dollar value. 34 ~-Ie prefers not completely discarding putting the risk on the connpanies. Some of these issues 3s will be discussed at the CWAC meetmg tomorrow. 36 PT - the public is going to have a harsh reality when the sewage rates substantially increase. 3~ We have been budgeting incorrectly and not setting aside funds. Key to abbreviations: JH-I~ice Mayor.Iane Hamilton, NR-Councilmember IVancy Read PH-Mayor M. Patricia Hilligoss, IY~IS CouncilmemberMary Stompe DK- Councilmember David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire, CWAC - Citizens WastewaterAdvisory Committee 1Vovember 3, 1997 Vo1.31, Page 163 i DK - there are not a lot of connection fees in the fund are there? Response -$500,000. DK - z the Connection fees were supposed to be the funding source for the sewer plant. It is an s issue of bad management. When we set the connection fees, a substantial portion should be ~ held in reserve. s J~I - vvants input from CWAC on the Farnkopf repor~. 6 City Engineer Tom Hargis noted the CWAC will be meeting again ~n November 18 at 2:00 7 p.m. s STAFF AND I~IAISON ~PO~t'TS 9 NR the next meeting of the Mayors and Councilmembers Working Group is in Santa Rosa.. io City Manager Beatty asked the Council if they wished to add some off-Monday meetings in ii order to accomplish some of the time consuming agenda items. There was no agreement on iz free dates. No extra meetings were added. 13 AI)JOU1tN ia At 10:05 p.m. the meeting was adjourned is 16 ! 17 ~___~~'V ~ - ~ , , / 18 19 `IVY. Patricia Hilligoss, Mayor Zo ATTEST: 21 22 23 2a Patricia E. Bernard, City Clerk Key to abbreviations: .IH-Vice Mayor Jane Hamilton, NR-Councilmember Nancy Reacl PH-MayorM. PatriciaHillrgoss, MS-CouncilmemberMaryStompe DK- Counci/member David Keller, PT-Councilmember Pamela Torliatt MM-Councilmember Matt Maguire CWAC - Citizens WastewaterAdvisory Committee