RIO DELL CITY COUNCIL

STUDY SESSION

REGULAR MEETING

DECEMBER 6, 2011

MINUTES

The Study Session/Regular Meeting of the Rio Dell City Council was called to order at 5:30 p.m. by Mayor Woodall.

ROLL CALL: Present: Mayor Woodall, Councilmembers Marks, Thompson and Wilson

Absent: Councilmember Leonard (excused)

Others Present: City Manager Henrickson and City Clerk Dunham

Finance Director Beauchaine (arrived at 6:30 p.m.)

Absent: Chief of Police Hill, Community Development Director Caldwell,

Water Superintendent Jensen and Wastewater Superintendent

Chicora (excused)

STUDY SESSIONS/PUBLIC HEARINGS – 5:30 p.m.

Interview (2) Applicants for Planning Commission Vacancy

Mayor Woodall announced the names of the two applicants being considered for the vacant position on the Planning Commission and reviewed the procedure for appointment.

Each of the applicants was asked to provide a short presentation on their background and explain why they were interested in serving on the Planning Commission.

Billy Joe Long was the first applicant to be introduced. He began by stating that he grew up in Rio Dell, moved away for 10 years, graduated from college and recently moved back with his wife and 3 children and is interested in the ideas for development of the City and would like to become more involved in the process. He said although he doesn’t really know what being a Commissioner entails; he is a quick learner and great at research. In response to Council’s questions, he said the two convictions he would not compromise on were his family and his faith. He thanked the Council for allowing him the opportunity to be considered for the appointment.

The next applicant was Nick Angeloff who began by stating that he has lived in Rio Dell for 9 years, graduated from Humboldt State University as an Archaeologist and is currently employed as the CEO of the Wiyot Tribe. When asked what his vision was for Rio Dell he responded by stating that his vision is to spur the economy to increase revenue for the City and to get some sort of small industry going in addition to the Rio Dell Plaza. He said if the City is successful in development of the Rio Dell Plaza, the next step is to find a way to get travelers off the highway and into the downtown area. He spoke in favor of restoring rail service so our children will have opportunities in various industries.

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He than

CEREMONIAL

Proclamation in Recognition of Human Rights Awareness Month

Mayor Woodall read the proclamation in recognition of Human Rights Awareness Month and presented it to Ms. Cheryl Siedner, a Commissioner on the Humboldt County Human Rights Commission. She thanked the Council and said her role on the Commission is to listen to people’s needs and try to make sure they get the correct information and to basically give a voice to those who don’t have a voice.

Councilmember Thompson expressed concern about the United Nations and said he would like to see them take a stand and speak out more on Human Rights; Ms. Siedner said she had previously worked with the United Nations regarding Native American Rights and noted there is a contact number for information on the United Nations website. She commented that not every community has a Human Rights Commission and that the local Human Rights Commission focuses on local issues such as rent controls, discrimination in regard to disabilities or gender and other related matters.

Presentation of Plaque to David E. Martinek in Appreciation for 19 Years of Service as City Attorney

Mayor Woodall announced that Mr. Martinek was not available to receive the plaque this evening but the plaque is being presented to him in appreciation and sincere thanks for his loyal and dedicated service to the City of Rio Dell as City Attorney from 1992-2011.

PUBLIC PRESENTATIONS

Nick Angeloff addressed the Council at the request of Bill Bertain and asked that the Council consider placing an item on the next agenda supporting the Humboldt Bay Alternative Rail Route Study. He said there are currently $259,000 in ISTEA funds under consideration by the Humboldt Bay Harbor, Recreation and Conservation District and that he and others feel analyzing an east-west alternative rail route connecting Humboldt Bay to the national rail network is an appropriate use for the funds. He said they were asked to come back to the District in 10 days showing public support for the proposed use of the funds.

City Manager Henrickson advised Mr. Angeloff to get the information to the City Clerk by December 14th for placement on the December 20th City Council agenda.

Deborah Bare addressed the Council regarding the Rio Dell Plaza Project and stated that stores are closing in the Redwood Village Shopping Center, in downtown Fortuna and the Bayshore Mall and said in speaking to local business owners downtown, the feeling is that the project will put them out of business. She wanted to know what the current plan is for the development. Mayor Woodall pointed out that the project is still in the planning stages and the City has simply

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presented an option agreement to the owner for consideration at this time. She said if the option agreement is approved, there will be plenty of opportunity for public comment regarding the project.

CONSENT CALENDAR

Mayor Woodall announced the items to be approved on the consent calendar and asked the staff, the public and the Council members if there was anyone who wished to have any item removed from the consent calendar for separate discussion.

Motion was made by Thompson/Marks to approve the consent calendar including approval of minutes of the November 15, 2011 Regular meeting; and approval of minutes of the November 22, 2011 Special meeting. Motion carried 4-0.

SPECIAL CALL ITEMS

Approve Appointment of Applicant to the Planning Commission to fill the Unexpired Term Ending December 31, 2012

Mayor Woodall stated the two applicants for the vacant seat on the Planning Commission were interviewed at 5:30 p.m.; now is the time for the Council to vote to approve the appointment of one of the applicants.

Councilmember Marks stated that she felt that both were excellent candidates and hoped that the person that is not selected tonight will come back when another position becomes available.

Councilmembers were asked to vote by written ballot for the applicant of their choice; ballots were then passed to the City Clerk to tally. The City Clerk announced there was a tie vote with each candidate receiving two votes. As a result, the Council directed staff to bring the matter back to the Council at the next regular meeting on December 20, 2011 for a re-vote with a full Council.

ORDINANCES/SPECIAL RESOLUTIONS

Public Hearing/Adopt Ordinance No. 278-2011 Establishing Flag Lot Regulations, Section 17.25.090 and Amending Section 17.10.010, Definitions, to Include “Flag Lot: of the Rio Dell Municipal Code

City Manager Henrickson stated this ordinance was introduced at the November 15, 2011 regular meeting and as recommended, changes the regulations so flag lots will only be allowed in residential zones where topographic conditions do not allow for the conventional subdivision of the parcel.

Mayor Woodall opened the public hearing at 6:50 p.m. to receive public comment on the proposed ordinance. There being no public comment, the public hearing closed.

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Councilmember Marks asked if this ordinance also amends parking regulations; City Manager Henrickson stated this ordinance only pertains to flag lots; parking regulations will be presented at a later date.

Motion was made by Marks/Thompson to approve Ordinance No. 278-2011 Establishing Flag Lot Regulations, Section 17.25.090 and Amending Section 17.10.010 of the Rio Dell Municipal Code, Definitions, to include “Flag Lot”. Motion carried 4-0.

Public Hearing/Adopt Ordinance No. 279-2011 Repealing Existing Chapters 17.25 (General Provisions and Exceptions), 17.30 (Amendments, Variances, Use Permits and Nonconforming Uses) and 17.35 (Outdoor Advertising) and Adopting New Chapters 17.25 (Regulations for the Combining Zones, 17.30 (General Provisions and Exceptions) and 17.35 (amendments, Variances and Use Permits) of the Rio Dell Municipal Code

City Manager Henrickson stated this ordinance was also introduced at the November 15, 2011 regular meeting and is basically a house cleaning item since staff discovered there are a number of General Provisions and Exceptions found in Chapter 17.25 of the RDMC that are not in alphabetical order, as well as some other formatting inconsistencies that need to be corrected.

Mayor Woodall opened the public hearing at 6:54 p.m. to receive public comment on the proposed ordinance. There being no public comment, the public hearing closed.

Motion was made by Wilson/Thompson to approve Ordinance 279-2011Repealing Existing Chapters 17.25 (General Provisions and Exceptions), 17.30 (Amendments, Variances, Use Permits and Nonconforming Uses) and 17.35 (Outdoor Advertising) and Adopting New Chapters 17.25 (Regulations for the Combining Zones, 17.30 (General Provisions and Exceptions) and 17.35 (Amendments, Variances and Use Permits) of the Rio Dell Municipal Code. Motion carried 4-0.

Approve Resolution No. 1137-2011 Authorizing the Closure of Funds 25 Traffic Safety, 37 CDBG, 41 COPS, 42 LLEGB, 51 Sewer Reserve, and 96 HOME

Finance Director Beauchaine stated as part of the year-end process, the Finance Department prepares the City’s Financial Statements for audit which includes the closure of any unused funds. This year staff identified 6 funds to be closed as outlined in the resolution. She reviewed each of the funds to be closed and the reason for the closure.

Finance Director Beauchaine said Fund 37 (CDBG) has been carrying an un-reconciled cash balance since the City’s Audits were re-established in 2005; in 2006 the CDBG Program Income (PT) balance was reconciled and approved by the State CDBG Program and moved to a separate Fund 39. In 2010 the City’s CDBG Rehabilitation and Street Paving Grant was closed and signed off by the CDBG Program staff. She said these activities have allowed the isolation of the remaining un-reconciled balance, and staff in concurrence with the auditors is recommending that the remaining balance of $592,618.95 be transferred to unrestricted General Fund Reserves.

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Mayor Woodall asked if that amount has been audited and approved for transfer; Beauchaine stated the fund will be audited this year and the auditors have concurred with the transfer of funds.

Councilmember Marks asked how close staff was to having all funds reconciled; Beauchaine said she had been working on this process with the City’s auditors for 6 years and this is the end of the un-reconciled funds. She said shown now is a clean balance sheet.

Motion was made by Thompson/Wilson to approve Resolution No. 1137-2011 Authorizing the Closure of Funds 25 Traffic Safety, 37 CDBG, 41 COPS, 42 LLEBG, 51 Sewer Reserve, and 96 HOME. Motion carried 4-0.

Approve Resolution No. 1138-2011 Reconciling Budget Amendment for FY 2010-2011

Finance Director Beauchaine stated this item also relates to the year-end process and includes evaluation of the budget and any additional reconciling amendments necessary. This year staff identified 8 funds in need of adjustment, each categorized as an Operating Adjustment, a Capital Adjustment or a Depreciation Adjustment. She said the total Operating Budget Adjustment recommended is $35,839; total Capital Budget Adjustment recommended is $865,764.00 to cover planning and design costs for the upcoming Sewer Project since these expenditures were not included in the original budget and expected to be financed and repaid during the 2010-2011 Fiscal Year; and the total Depreciation Budget Adjustment recommended is $214,736.00.

Finance Director Beauchaine said as she continues to close out the year, it is likely there will be additional adjustments needed and as a result, an additional amendment will be brought before the Council.

Councilmember Marks asked what the $865,764.00 included under Capital Adjustment; Beauchaine said it consisted of $388,377.00 for Sewer Capital, $304,265.00 for Sewer Debt Service, and $173,122.00 for STIP-Streets.

Motion was made by Thompson/Wilson to approve Resolution No. 1138-2011 Fiscal Year 2010-2011 Reconciling Budget Amendment. Motion carried 4-0.

REPORTS/STAFF COMMUNICATIONS

Finance Director Beauchaine reported on recent activities in the Finance Department and reported she would be bringing forward on the next agenda updated budget reports which will show revenues exceeding initial projections by 13% and expenditures reported at 94%.

City Manager Henrickson announced Chief Hill was away at POST training and Community Development Director Caldwell was out ill.

COUNCIL REPORTS/COMMUNICATIONS

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Councilmember Wilson stated that in the event that the Option Agreement is approved and plans for the Rio Dell Plaza moves forward, he would like to see the creation of a community committee and encourage public participation.

An unidentified member of the audience asked the Council what the process is for getting the Rio Dell Plaza on an agenda; Mayor Woodall explained that if the Option Agreement is exercised, the matter will be on future agendas in which public comment will be welcomed.

ANNOUNCEMENT OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS:

Conference with City Manager – Existing Litigation: 2 Cases (Pursuant to Government Code Section 54956.9(a) 1) Mercer Fraser Company vs. City of Rio Dell; 2) Joseph Baratti vs. City of Rio Dell

Closed Session Concerning Labor Negotiations with Labor Negotiator; the City’s Designated Representative City Manager Ron Henrickson (Pursuant to Government Code Section 54957.6) Concerning Rio Dell Police Officers Association, Rio Dell Employees Association, and Contract Employees

Mayor Woodall announced the Council would be adjourning to closed session to discuss the above matters and asked for public comment. There being no public comment, the Council adjourned to closed session at 7:22 p.m.

The meeting reconvened at 8:40 p.m. Mayor announced there was no reportable action taken in closed session.

ADJOURNMENT

There being no further business to discuss, the meeting adjourned at 8:41 p.m. to the December 20, 2011 Regular meeting.

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Julie Woodall, Mayor

Attest:

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Karen Dunham, City Clerk