CITY COUNCIL A G E N D A
MONDAY, APRIL 3, 2023
7:00 P.M. Regular Session
33 Church Street, Sutter Creek CA 95685
The Agenda can be found on the City’s Website: www.cityofsuttercreek.org
THE CITY OF SUTTER CREEK CITY COUNCIL MEETING WILL BE AVAILABLE VIA ZOOM AND IN PERSON.
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Meeting ID: 956 852 0224
Public comment will be accepted by email at [email protected]. All emails must be received prior to the start of the meeting.
Unless stated otherwise on the agenda, every item on the agenda is exempt from review under the California Environmental Quality Act (“CEQA”) per CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.
1. CLOSED SESSION-None
7:00 P.M. 2. CALL TO ORDER AND ESTABLISH A QUORUM FOR REGULAR MEETING
3. PLEDGE OF ALLEGIANCE TO THE FLAG
4. REPORT FROM CLOSED SESSION - None
5. PUBLIC FORUM
At this time, the public is permitted to address the City Council on items not appearing on the agenda.
Comments may not exceed 5 minutes. In accordance with State Law, however, no action or discussion may take place on any item not appearing on the posted agenda. The City Council may respond to statements made or questions asked or may request Staff to report back at a future meeting on the matter. The exceptions under which the City Council may discuss and/or take action on items not appearing on the agenda are contained in Government Code §54954.2. Public comment on any item listed below shall be limited to five minutes, unless additional time is permitted by the Mayor/Council.
1 6.
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APPROVAL OF MINUTES
A. City Council Minutes of March 20, 2023.
Recommendation: By motion approve minutes as presented.
7. *
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CONSENT AGENDA
Items listed on the consent agenda are considered routine and may be enacted in one motion.
Any item may be removed for discussion at the request of Council or the Public.
A. Budget Amendment #4 for FY 22-23.
Recommendation: Adopt Resolution 22-23-* authorizing budget amendment #4 to the fiscal year 2022-23 budget for storm damage projects.
B. Impact Fee ENR Adjustment
Recommendation: Direct staff to provide notice of a public hearing to hear public comments regarding a proposed impact fee adjustment to be effective July 1, 2023.
8. ORDINANCES & PUBLIC HEARING- None.
9. *
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ADMINISTRATIVE AGENDA
A. City Manager Recruitment
Recommendation: For discussion and staff direction.
B. Status of City/ARSA Operations Agreement and Relate Issues Recommendation: For discussion and staff direction
10. MAYOR AND COUNCIL MEMBER REPORTS
This section is to provide Council members an opportunity to present updates on their activities and to request items be placed on future agendas.
11. CITY MANAGER’S REPORT
This section is an opportunity to provide Council members with a brief status update on staff activities. No action is expected to be taken by the Council.
12. CITY ATTORNEY’S REPORT
This section provides an opportunity for the City Attorney to report on any activities or upcoming legislation of importance to the City. No action is expected to be taken by the Council
13. FUTURE AGENDA ITEMS
This section provides an opportunity for Council members to request items to be added to the agenda in the future with a majority Council vote.
14. INFORMATION/CORRESPONDENCE-None.
15. ADJOURNMENT
The next regularly scheduled meeting is MONDAY, APRIL 17th 7:00 P.M 2 CITY COUNCIL MINUTES
MONDAY, MARCH 20, 2023
THIS MEETING WAS CONDUCTED IN-PERSON AT 33 CHURCH STREET, THE PUBLIC WAS ABLE TO VIEW FROM HOME:
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Meeting ID: 956 852 0224
1. CLOSED SESSION-None
7:00 P.M. 2. CALL TO ORDER AND ESTABLISH A QUORUM FOR REGULAR MEETING Council members present:
Feist, Peters, Sierk, Swift and Gunselman
Staff Present:
Sandra Spelliscy, Interim City Manager
Derek Cole, City Attorney
Karen Darrow, City Clerk
Erin Ventura, Planning Consultant
Vicky Runquist, City Treasurer
3. PLEDGE OF ALLEGIANCE TO THE FLAG
4. INTRODUCTION OF INTERIM CITY MANAGER
Mayor Gunselman introduced Interim City Manager Sandra Spelliscy.
5. REPORT FROM CLOSED SESSION - None
6. PUBLIC FORUM
John Belloti of Sutter Creek noted his concern regarding the Flushing dam and flooding along the creek. He suggested that the city look into Executive Order N-4-23 that allows for special provisions for flood diversion.
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7. PRESENTATIONS
A. Erin Ventura- Overview of Planning Grants
Erin Ventura presented.
B. Tim Murphy- Sutter Creek Community Benefit Foundation update on the Historic Grammar School.
Tim Murphy presented.
8. CONSENT AGENDA
A. City Council Minutes of March 6, 2023 and March 14, 2023.
M/S Council member Peters/Sierk to approve the City Council Minutes of March 6, 2023, as amended.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
M/S Council member Swift/Peters to approve the City Council Minutes of March 14, 2023, as presented
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
B. Warrants
Recommendation: By motion approve warrants as presented.
M/S Council member Peters/Swift to approve the warrants, as presented.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
C. Final Map Cramer Hills
Recommendation: Adopt Resolution 22-23-* approving the Final Parcel Map 2861.
This item was pulled from the agenda. Council will submit comments relating to this item to Interim City Manager Spelliscy.
D. Planning Services contract with Hauge Brueck
Recommendation:
4 3
1) Adopt Resolution 22-23-33 entering into a contract with Hauge Brueck Associates, LLC (HBA) for on-call planning services and applicant reimbursable planning services.
M/S Council member Sierk/Peters to Adopt Resolution 22-23-33 entering into a contract with Hauge Brueck Associates, LLC (HBA) for on-call planning services and applicant reimbursable planning services, as amended.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
2) Adopt Resolution 22-23-34 extending the contract with Hauge Brueck Associates, LLC (HBA) for grant related planning work.
M/S Council member Swift/Peters to Adopt Resolution 22-23-34 extending the contract with Hauge Brueck Associates, LLC (HBA) for grant related planning work, as amended.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
E. Adopt Resolution 22-23-35 accepting and approving the General Plan 2022 Annual Progress Report
M/S Council member Peters/Swift to Adopt Resolution 22-23-35 accepting and approving the General Plan 2022 Annual Progress Report, as amended.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
9. INFORMATION/CORRESPONDENCE
A. Monthly Police Report
B. Monthly Public Works Report
C. Monthly Building Report
D. Treasurer’s Reports
E. Monthly Administrative Services Report
F. Monthly Finance Department Report
G. Monthly Engineer’s Report
H. Monthly Planning Report
I. City Park Water Usage
J. Public Communications
So noted.
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10. MAYOR AND COUNCIL MEMBER REPORTS
This section is to provide Council members an opportunity to present updates on their activities and to request items be placed on future agendas.
Council member Sierk reported that the Air District Board will meet tomorrow, there is a meeting to discuss the plans for a pedestrian and bike zone at ACTC, ACRA updated their website and there is a Marketing Committee meeting scheduled for Tuesday.
Council member Peters reported that there is a Regional Transportation Plan (RTP) workshop to begin the update process and another meeting in three weeks. He noted that ACTC staff explained that the 2015 and 2020 RTP was too complicated and that they have prioritized adopting clean and understandable objectives that include a list of projects this time around. He also noted that ARSA will meet on Wednesday.
Mayor Gunselman noted that the Finance Committee met and is working on suggestions for different reserve accounts and that PARS will be discussed at the next meeting. She also noted the Sutter Creek Community Benefit Foundation has started working on a new project that includes video segments of various historic sites around town that can be accessed through a QR system.
11. ORDINANCES & PUBLIC HEARING- None.
12. ADMINISTRATIVE AGENDA
A. Proposed City Council meeting calendar for 2023
Interim City Manager Spelliscy presented the meeting calendar.
B. Amador County Community Cleanup
Recommendation: Approve $1,000 to support County-wide clean-up day.
Michelle Gallaher, code enforcement officer with Amador County clarified that the cleanup would be held in the Kmart parking lot on June 17 and that a donation from the city would allow the residents of Sutter Creek to participate in the clean-up.
M/S Council member Sierk/Peters to Approve $1,000 to support County-wide clean-up day.
AYES: Feist, Peters, Sierk, Swift and Gunselman
NOES: None
ABSTAIN: None
ABSENT: None
MOTION CARRIED
13. FUTURE AGENDA ITEMS
Council member Sierk requested:
Cemetery Road update.
Council member Swift noted that the road will remain closed until the repair is made and the repair is the responsibility of the property owner.
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Council member Feist requested:
Farmer’s Market relocation
Payroll for Visitors Center
Terms of lease for the Grammar School
Mayor Gunselman requested:
Review of the ARSA O&M agreement.
14. CITY ATTORNEY’S REPORT- None.
15. CITY MANAGER’S REPORT
Interim City Manager Spelliscy noted that she has met with most of the staff and plans to meet with the rest. She will soon meet with each of the bargaining units, S.E.I.U. and the POA.
She reported that numerous concerns were received about the Flushing dam and that there is a quote from Campbell Construction for $45,000 to clean it this fall. She noted that there are grants that could provide funds for debris cleanup and maybe even dam removal.
Interim City Manager Spelliscy noted that she is working with IT to increase cyber security protections for the network and that they will begin migrating from Google to Microsoft Outlook for email. She also noted that staff will be working to post meeting recordings on the website.
16. ADJOURNMENT
The meeting was adjourned at 9:40 p.m.
_________________________________
Claire Gunselman, Mayor
___________________________________
Karen Darrow, City Clerk
7 18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-1655 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer ______________________________________________________________________________
STAFF REPORT
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
MEETING DATE: APRIL 3, 2023
FROM: JODI STENECK, ACCOUNTING SUPERVISOR
SUBJECT: BUDGET AMENDMENT #4 FOR FISCAL YEAR 2022-23
RECOMMENDATION:
On consent, adopt Resolution 23-23-* authorizing budget amendment #4 to the fiscal year 2022- 23 budget for storm damage projects.
BACKGROUND:
Council previously approved expenditures for the storm-related Eureka Road and Gold Strike Court repair projects in the amounts of $70,383 and $98,925, respectively. Approval of the resolution will conform the adopted FY2022-23 budget to those expenditures.
DISCUSSION:
None.
BUDGET IMPACT:
This budget amendment will reduce the amount in Fund 95 – General Operating Reserve from $249,255 to $79,947.
8 RESOLUTION 22-23-*
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUTTER CREEK APPROVING BUDGET AMENDMENT #4, FOR FISCAL YEAR 2022-23 FOR STORM DAMAGE PROJECTS.
WHEREAS, the City Council of the City of Sutter Creek adopted the 2022-2023 Annual Operating Budget; and
WHEREAS, said Budget allocated personnel equivalents, line-items expenses and transfers between funds for each operating department; and
WHEREAS, the City staff brought to the City Councils two storm damage projects; and WHEREAS, the City Council gave staff direction to move forward with both projects, on Gold Strike Court and Eureka Road; and
WHEREAS, City staff received bids on both projects and have secured contracts with Wunschel & Sons for the Eureka Road project and Campbell Construction for the Gold Strike Court project; and
WHEREAS, the Eureka Road project contract amount is $70,383 and the Gold Strike Court project contract amount is $98,925; and
WHEREAS, both projects are being submitted to FEMA, CalOES and CalTrans for reimbursements as appropriate; and
WHEREAS, the General Operating Reserve fund will be used to pay for the cost and all reimbursements received from FEMA, CalOES and CalTrans will be deposited into the Fund.
NOW THEREFORE BE IT RESOLVED, that the City Council hereby approves Budget Amendment #4 to the 2022-2023 Budget of $169,308 to be used out of Fund 95, which currently has a fund balance of $249,255.
Fund 22-23 Budget Amt. Amendment #4 Amended Budget
95 – General Operating Reserve $0 $169,308 $169,308
The foregoing resolution was duly passed and adopted at a regular meeting of the City Council of the City of Sutter Creek on the 3rd of April 2023, by the following vote:
9 AYES:
NOES:
ABSTAIN:
ABSENT:
THE CITY OF SUTTER CREEK
______________________________
Claire Gunselman, Mayor
ATTEST:
______________________________
Karen Darrow, City Clerk
10 18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-0639 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer
STAFF REPORT
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
MEETING DATE: APRIL 3, 2023
FROM: JODI STENECK, ACCOUNTING SUPERVISOR
SUBJECT: IMPACT FEE ENR ADJUSTMENT
RECOMMENDATION:
On consent, direct staff to provide notice of a public hearing to hear public comments regarding a proposed impact fee adjustment to be effective July 1, 2023. This item is not for approval of fees, but solely to direct staff to notice the public hearing regarding approval.
BACKGROUND:
Development impact fees are established in conformance with the requirements of Government Code Section 66000 (et seq.), referred to as the Mitigation Fee Act (MFA). Fees established under the MFA may be used to fund public facilities needed to serve new development. Impact fees are paid by developers for new development or for a change to a more intensive use (e.g., warehouse to office), typically at the time of building permit issuance. Impact fees cannot, however, be used to correct an existing public facility deficiency or for the ongoing operations and maintenance costs of these facilities.
The City of Sutter Creek adopted its Capital Facilities Fees Impact Fee Report in 2008. That report outlined the nexus for collecting fees at building permit issuance to offset the impacts that new development will have on the City’s infrastructure. Those fees are known as “brick and mortar” fees and are then used to construct the new infrastructure. The City’s adopted development impact fees include:
Police Capital Facilities Fee
This fee is collected to provide funding for the construction of a police station, police vehicles, parking facilities, communication systems, and equipment.
Fire Capital Facilities Fee
This fee is collected for construction of a new fire facility, fire trucks, a fire engine, and special equipment.
Item 7B
11 18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-0639 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer Historical Fee
This fee is collected to accumulate funds to be used in preserving historic structures in the City.
City Hall Capital Facilities Fee
This fee is collected to provide funding for the construction of a new city hall.
Corporation Yard Capital Facilities Fees
This fee is collected to provide funding for a fair-share portion of the cost to construct facilities for a new corporation yard.
Program Update Fee
This fee is collected for future updates of the Nexus Study to ensure that the facilities, costs, and fees in the Fee Program are current and accurate. A new study should be considered to reflect current infrastructure and facility needs.
Administration Capital Facilities Fee
This fee is collected for the administration of the CFF Program. This includes preparation of an Annual CFF Program Report, preparation of a Five-Year CFF Report, day-to-day management of the CFF Program including preparation of annual CIP budgets, CFF Program annual inflationary updates, land value analyses and updates and CFF Program Proformas.
Traffic Mitigation Fee
There are two traffic mitigation fees collected, one for local roads and the other for regional roads. The local fee is collected to offset the direct, indirect, and cumulative impacts of new development projects on the City of Sutter Creek’s road systems. The regional fee is collected for the Amador County Transportation Commission (ACTC).
Amador County Parks and Recreation Fee
This fee is collected to provide funding for park capital improvements. The Master Plan is currently being updated.
Once fees are adopted, they should be reviewed and adjusted annually, if necessary, to account for inflationary increases and decreases to ensure that the fees being collected are adequate to construct the facilities needed created by the impact. The fees were last updated July 1, 2022.
DISCUSSION:
To ensure that the capital facilities fees adequately cover new development’s share of the public facilities identified in the fee program, staff recommended that Council establish a process to annually adjust the development impact fees and to utilize the Engineering News RecordConstruction Cost Index as the inflation index for calculating this annual fee adjustment, which the Council approved.
12 18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-0639 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer Table A below shows the 2022 ENR increase of the fee program for all development. Staff is recommending that effective July 1, 2023, the impact fees for all development be increased as shown in Table A.
State law requires a minimum 60-day period prior to implementation of MFA fees after City Council adoption. Therefore, staff is recommending that the City Council direct staff to provide a notice of a public hearing to allow the public to provide comments on the proposed increase.
BUDGET IMPACT:
The purpose of the increase is to ensure that the fees keep pace with increase in capital costs. 13 18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-1655 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer ______________________________________________________________________________
STAFF REPORT
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
MEETING DATE: April 3, 2023
FROM: Sandra Spelliscy, Interim City Manager
SUBJECT: City Manager Recruitment
RECOMMENDATION:
• Appoint ad hoc Council Committee to assist ICM in recruitment process. • Direct staff on preferred alternative for recruitment method. • Direct staff to bring back proposed changes Chapter 2.06 of the Municipal Code to provide consistency and update as to best practices.
BACKGROUND:
The city has hired an interim city manager to manage day-to-day operations for the city and to act as the primary advisor to the Council. The Council desires to fill that role on a permanent basis as soon as practicable, and has asked the ICM to lead the recruitment process.
DISCUSSION:
There are three common methods for recruiting a chief executive of a municipality – in-house recruitment, utilizing an executive search firm, and a hybrid combination of the first two.
An in-house search is the least expensive option, but it is not without some costs. With an inhouse search, city staff, hopefully with the assistance of one or two council members, would put together the job description, job requirements and marketing materials for advertising the open position. The same group would also identify and arrange for placement of those materials on appropriate websites and other outlets for reaching potential candidates. Once the application period had closed, applications would be screened and an initial list of candidates would be created for virtual interviews. An interview schedule would be created and the interviews conducted and the candidates rated. This would likely involve 6-8 candidates.
Following initial interviews, a final list of interviewees would be chosen. This list usually consists of 3-4 candidates. If the reviewers have been unable to identify at least that many finalists, it may be advisable to reopen the recruitment and try to attract a wider pool of candidates.
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The finalists would be invited to Sutter Creek for a full-day of activities, including interviews by various panels and opportunities to visit the city and meet with interested residents.
Following the full-day screening, 1-3 final candidates would be recommended to the Council for a hiring decision.
If a conditional offer of employment is made and accepted, reference and background checks would be conducted. The City Attorney would then begin contract negotiations with the successful candidate with the intent to bring back a final contract for Council approval.
The process would be essentially the same if a search firm was engaged to do the work, although most search firms would add additional front-end work to analyze Council and community interests and to more fully engage the community in the selection process.
The entire process would likely take 4-5 months, with an additional 4-6 weeks after contract execution for the successful candidate to actually begin work.
A hybrid contract with a recruitment firm would have the firm do all of the work through the close of the application period, with the city taking on the responsibility for the remainder of the process such as screening, interviewing, etc. The advantage of this method is that the recruitment firm would take on the most difficult part of the process, which is actually identifying and recruiting highly-qualified applicants.
BUDGET IMPACT:
Estimated cost for in-house search is $2,000 - 3,000.
Estimated cost for hybrid option is $6,000 - $8,000.
Estimated cost for search firm option is $18,000 - $25,000.
ATTACMENTs:
Attachment A - Chapter 2.06 – Sutter Creek Municipal Code Attachment B - An Effective City Council Manager Relationship – Kevin Duggan, ICMA 15 Title 2 - ADMINISTRATION AND PERSONNEL
Chapter 2.06 CITY ADMINISTRATOR
Sutter Creek, California, Code of Ordinances Created: 2022-07-28 16:18:36 [EST] (Supp. No. 4)
Chapter 2.06 CITY ADMINISTRATOR
2.06.010 Office created.
The office of the city administrator of the city is created and established. In creating the office, the city council formally recognizes the city administrator as a city manager. The city administrator shall be appointed by the city council solely on the basis of his/her executive and administrative qualifications. He/she shall hold office for an indefinite term. Whenever a reference is made to "city administrator" or "city director," in this Code or in any other ordinance, resolution or action, that reference shall be deemed to mean "city manager" within the meaning or definition of said title as defined in California Government Code Title 4, Division 2, Chapter 4, Article 1 (Sections 34850, et seq.).
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
2.06.020 Administrative head of city.
The city administrator shall be the administrative head of the city government under the direction and control of the council, except as otherwise provided in this chapter. He/she shall have authority over all department heads, employees, and all noncontract and professional employees. (Ord. 273 (part), 1993; Ord. 284 (part), 1997)
2.06.030 Powers and duties.
The city administrator shall be responsible for the efficient administration of all the affairs of the city which are under his/her control. In addition to his/her general powers as administrative head and not as a limitation thereon, it shall be his/her duty and he/she shall have the powers set forth as follows:
A. Enforcement. It shall be the duty of the city administrator to enforce all laws and ordinances of the city to see that all franchises, contracts, permits and privileges granted by the city council are faithfully observed.
B. Authority Over Employees. It shall be the duty of the city administrator and he/she shall have the authority to control, order and give directions to all heads of departments and to subordinate officers, employees, and all noncontracted and professional employees of the city under his/her jurisdiction.
C. Administrative Reorganization of Offices. It shall be the duty and responsibility of the city administrator to conduct studies and effect such administrative reorganization of offices, positions or units as may be indicated in the interest of efficient, effective and economical conduct of the city's business.
D. Ordinances. It shall be the duty of the city administrator to recommend to the city council for adoption such measures and ordinances as he/she deems necessary.
E. Financial Reports. It shall be the duty of the city administrator to keep the city council at all times fully advised as to the financial condition and needs of the city.
F. Budget. It shall be the duty of the city administrator to prepare and submit the proposed annual budget to the city council. The administrator shall also propose an annual salary plan to the city council. The mayor shall appoint a member, members of the council or other(s) to negotiate salary and benefits with the various employees and or employee associations. Final approval of both budget and employee negotiations require majority approval of the entire city council.
16 Created: 2022-07-28 16:18:36 [EST]
(Supp. No. 4)
G. Purchasing Agent. It shall be the duty of the city administrator to oversee the purchase of all supplies for all department and divisions of the city. No expenditures shall be submitted or recommended to the city council except on report and approval of the city administrator.
H. Investigations and Complaints. It shall be the duty of the city manager to make investigations into the affairs of the city and any department or division thereof, and any contract or the proper performance of any obligations of the city. Further, it shall be the duty of the city administrator to investigate all complaints in relation to matters concerning the administration of the city government, unless the council delegates the investigation to another entity.
I. Have the same authority as the mayor, as convenience to the parties may dictate, to sign documents as specified in Section 40602 of the California Government Code whenever such documents have been approved by the city council for execution. Additionally, the city manager shall have the authority to sign on behalf of the city without council review, routine authorizations, applications, certifications subdivision improvement agreements, purchase orders, invoices, deed acceptances and other similar documents without council authorization so long as the execution is for the purpose of implementing an existing city policy, regulation, or approval. Only the city manager and the mayor shall be authorized to approve agreements on behalf of the city unless execution by another officer is expressly required by state or federal law.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997; Ord. 318 §1, 2006)
2.06.040 Additional agreements.
Nothing in this chapter shall be construed as a limitation on the power or authority of the city council to enter into any supplemental agreement with the city administrator delineating additional terms and conditions of employment not inconsistent with any provisions of this chapter. The positions of chief of police and city administrator are not to be considered incompatible.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997; Ord. 294A §1, 2003)
2.06.050 Meetings.
A. Attendance. The city administrator shall attend all meetings of the city council unless excused therefrom by the mayor or the city council, except when his/her removal is under consideration by the city council. The city administrator shall, if so directed by the city council, attend any or all meetings of the planning commission, or any other commissions, boards or committees created by the council. He/she shall inform such members of any matter being considered by the council and shall cooperate to the fullest extent with the members of all commissions, boards or committees appointed by the council.
B. Discussions. The city administrator may take part in council discussions, when directed by the council, but may not vote. He/she shall have the power to appear and address the council or any of its boards or commissions at any meeting.
C. Recommendations. The city administrator shall recommend to the city council for adoption of such measures and ordinances as he/she deems necessary, and shall make reports or suggestions as necessary or as requested by the city council.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
17 Created: 2022-07-28 16:18:36 [EST]
(Supp. No. 4)
2.06.060 Personnel.
A. Appointments. The city administrator shall select and recommend to the city council for appointment, qualified candidates to fill staff vacancies occurring within the city.
B. Dismissal. The city administrator may recommend to the city council the dismissal or suspension of any city employee with appropriate documentation.
C. Performance Evaluations. The city administrator is responsible to see that all city staff is evaluated at least annually. Draft department head evaluations will be prepared by the city administrator for review and approval by the city council. Department heads will evaluate their staff. The city administrator's performance will be evaluated by the council annually. The city administrator is responsible to audit and assure that all evaluations are consistent with the respective job descriptions as well as with all applicable city policies and procedures, and to conduct independent evaluations as he/she deems necessary. All evaluations will be discussed with the respective employees prior to becoming part of the personnel record.
D. General Supervision. The city administrator shall be responsible for the supervision of the day-to-day operations of the city, utilizing the appropriate department and shall supervise and direct the administration of computer and data processing, utility services, maintenance, fire, police, building, planning, museum and such other administrative services as may be placed under his/her jurisdiction by the city council.
E. Council-Administrator Relations. The city council and its formal committee members shall deal with the administrative services of the city through the city administrator, except for the purpose of inquiry. The city council or any committee thereof shall give directions and instruction to subordinates generally and with respect to new projects or additional duties through the city administrator. In the absence of the city administrator's attendance at duly convened meetings of city council, standing committees, directions and instructions can be given to subordinate city department heads, i.e., chief of police and director of public works. Copies of the directions and instructions will be provided to the city administrator within three working days.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
2.06.070 Expenses.
The city administrator shall be reimbursed for all actual and necessary expenses incurred by him/her in the performance of his/her official duties, including those incurred when traveling on business pertaining to the city.
The council may require pre-authorization of expenses.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
2.06.080 Compensation.
The salary and other benefits for the city administrator shall be established by the council and reviewed annually. Such salary and benefits are to be independent of any salary or benefits negotiated for the benefit of city employees.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
2.06.090 Removal.
The city administrator may be dismissed by the city council upon thirty (30) days prior written notice to him/her of dismissal. The removal of the city administrator shall be effected only by either a four-fifths vote 18 Created: 2022-07-28 16:18:36 [EST]
(Supp. No. 4)
(without cause) or a majority vote of the whole council as then constituted, convened in a regular council meeting, subject, however, to the following provisions:
A. Removal By Just Cause. "Just cause" is defined as any facts which, based on relevant circumstances, may be reasonably relied on by the employer in the exercise of reasonable discretion as a basis for disciplinary action. "Just cause" includes, but is not limited to:
1. Fraud in securing employment;
2. Incompetence;
3. Inefficiency;
4. Inexcusable neglect of duty;
5. Insubordination;
6. Dishonesty;
7. Being under the influence of alcohol or controlled substance while on duty;
8. Inexcusable absence without leave;
9. Conviction of a felony or conviction of a misdemeanor which is of such a nature as to adversely affect the employee's ability to perform the duties and responsibilities of the city administrator's position. A plea of guilty or a conviction following a plea of nolo contenders is deemed to be a conviction with the meaning of this section;
10. Unlawful discrimination including harassment, on the basis of race, religious creed, color, national origin, ancestry, physical handicap, marital status, sex, or age, against the public or other employees while acting in the capacity of a city administrator.
B. Hearing. Within seven days after the delivery to the city administrator of such notice of dismissal, he/she may, by written notification to the city clerk, request a hearing before the city council. Thereafter, the city council shall fix a time for the hearing which shall be held at its usual meeting place, but before the expiration of the thirty-day period, at which time the city administrator shall appear and be heard, with or without counsel.
C. Suspension Pending Hearing. After furnishing the city administrator with written notice of the intended removal the city council may suspend him/her from duty, but his/her compensation shall continue until the removal date set by the city council subsequent to the aforesaid hearing.
D. Resignation. The city administrator shall give the city council thirty days prior written notice of his/her intention to resign.
E. Exemption. The office of city administrator will not be represented by an association of, or an agent for, employees under his/her supervision.
(Ord. 273 (part), 1993; Ord. 284 (part), 1997)
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A Key Ingredient for Success: An Effective City Council/City Manager Relationship Kevin C. Duggan
ICMA West Coast Regional Director
Introduction
Mayors and councilmembers need to have effective working relationships with a number of key audiences in order to successfully undertake their responsibilities. These audiences include citizens/voters, community groups, the press, other governmental agencies, other elected officials, nonprofit organizations and many more. However, critical to a successful and satisfying career on the city council in a city council/city manager form of government is a successful and effective working relationship with the city manager. This article suggests the necessary ingredients for a mutually successful council/manager working relationship.
The City Council/City Manager Form of Local Government:
The "Council/Manager Plan" is designed for the elected city council to set policy direction as the direct representatives of the community with the city manager providing the professional expertise to manage the organization and carry out the council's direction. Policy direction is provided in a variety of ways, including through local laws/ordinances, planning policies (general plan and zoning), financial policies, the annual budget and capital improvement plan, the adoption of city council policies and through numerous other program directives.
The city manager is responsible for carrying out the council's policy direction through the day-to-day management of city functions, including the oversight of city operating departments. Key tasks associated with this role include the hiring and supervision of department heads, the implementation of the annual budget and the assurance of quality service delivery. This "plan" is predicated on the philosophy that elected representatives are better able to make community value judgments on behalf of residents and translate these values into policy direction—the "what" in city government. It is also based on the belief that professional staff are best able to determine the "how" of implementing policies and delivering day-to-day services due to their experience and training. Since both roles are closely related, it is the city manager's responsibility to coordinate between both realms to assure the effective delivery of services consistent with city council direction.
This is often referred to as the policy/administration dichotomy (the separation of these responsibilities)—which, oftentimes, has a good deal of "gray" on the boundaries.
When it works most effectively, the elected officials focus on the big picture of policy 20 - 2 -
development and minimize their role relating to administrative implementation while the staff works to avoid an undue influence on policy development while focusing on policy implementation and service delivery. While the line between the two can become blurred, the city council/city manager system is subject to failure if the line is disregarded.
If the city council and the city manager have an effective and mutually supportive working relationship, the likelihood of the policy and administrative roles being effectively coordinated increases significantly, resulting in a more successful city governance and management.
Among the issues to consider in trying to establish the best possible city council/city manager working relationship are the following:
• The relationship cannot be taken for granted and requires attention and work to establish and maintain. If not diligently pursued, it will not be accomplished. • The work of city councils is not easy! Not only do you confront the typical challenges of group decision-making, but the "group" in this case may not have a great deal in common. Also, the issues can be weighty and controversial. The decision-making is also done in public, often on TV or the Web, scrutinized by the public and press, and anyone can join in on the deliberations. • Among the factors that can get in the way of an effective relationship include:
— Not understanding/appreciating/respecting each other's roles. — Differing philosophies.
— Differing personalities.
— Challenging issues.
— External pressures from the media, community groups, employee organizations, etc.
• Fully appreciate that you need to establish a good working relationship with your fellow councilmembers and the city manager in order to maximize:
— Organizational performance.
— Organizational reputation.
— Value to the community.
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— Personal reputation.
— Community pride and confidence.
• Don't underestimate how important it is to a city manager to have a good working relationship with the city council. It has been reported that the relationship with the city council is the primary factor impacting a city manager's job satisfaction.
Among the reasons for this are the following:
— City councils are the source of formal performance feedback. Like almost everyone, positive feedback from supervisor(s) is very important. — City councils control the city manager's job security. — City councils determine the city manager's compensation. — City councils establish the city manager's "parameters of success." — City council support for the city manager, particularly during tough times, is of tremendous value.
Recommended Practices:
So while the stakes are high and the challenges significant, there are a variety of "best practices" and techniques that can improve the odds of your individual success as a mayor or councilmember, as well as the success of the city council and city as a whole.
The following are offered as ideas to consider in your efforts to establish and maintain a strong and effective working relationship with your city manager:
• Recognize that you are now "different" than before you were elected (and more than you may realize):
You are now viewed as a community/city leader and what you do and say can have a much greater impact. Your comments will now be viewed as representing "the city." What you do and say will also be more closely scrutinized. You should be aware that the city staff will view you much differently now that you are one of the organization's leaders. Even an offhand comment can be viewed as a directive for action. So even though you may not view yourself any differently than before you were elected, don't underestimate to what degree others are viewing you differently.
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• Understand and respect the city council/city manager plan of governance:
It is critical for you to understand why your city is organized under this plan of governance and how it should operate. It is important to understand and appreciate the distinction between policymaking and implementation and the different roles played by individual councilmembers, the city council as a whole, the city manager and the city staff.
• Allow time for you and the city manager to get to know each other and develop a working relationship:
Try not to overly rely on what you have heard from others regarding what it will be like to work with the manager—others' views may or may not be accurate.
Most city managers understand the need to work very hard to adjust to the issues, concerns and priorities of the new city council. Try to be open-minded to your ability to establish a productive and effective working relationship with the manager.
• City managers will do their best to carry out the policy direction of the city council (even when there is a major change in policy direction):
Professional city managers are committed to carry out the policy direction of the city council regardless if they personally agree or disagree with the policy as long as what they are asked to implement is:
— Legal.
— Ethical.
— Within their/the city's authority.
It is often misunderstood that when a city manager effectively implements a city council's policy, the manager personally agrees with the policy or can only implement city services consistent with that policy. City managers can change the organization's approach to an issue as may be directed by a new city council.
Avoid overly associating the city manager with the policies that the city has previously implemented at the direction of the previous council. • Take your role seriously, but not yourself:
This common advice is particularly important for mayors and councilmembers.
While you are doing important and serious work on behalf of the community, you will do it better and more effectively if you keep the normal "ups and downs" and "wins and losses" in perspective. You were elected to make tough decisions on 23 - 5 -
oftentimes controversial issues. It's a given that you will be criticized and there will be those who vehemently disagree with your decisions. That is unavoidable.
Develop a thick skin and do your best to not take personally the conflicts and disagreements that are a normal part of your new role. If you don't develop a thick skin, you will overreact to criticism.
Additionally, you are now part of an organization and will be blamed/criticized for the actions of the organization that you had nothing to do with. That is the reality of your new role and you should keep that in mind.
And remember, the city manager is not always to blame when things go wrong, though he/she should take appropriate responsibility for the organization's actions. It can be easy to focus your frustration on the city manager. You will be happier and more effective if you can experience the normal "ups and downs" of city life without needing to always find someone at fault.
Whatever the issue or encounter, try not to take it personally. Try to keep personal likes and dislikes out of the equation. Your fellow councilmembers and the city manager are not your family or personal friends; they are your "professional colleagues," and you need to work effectively with them even if you would not select them as friends.
Lastly, always "live to fight another day." There are always future issues to decide; focus on those versus the votes already taken. And always remember not to burn bridges due to a difficult defeat; you will need those "bridges" for future votes! • Appreciate the legitimate difference between the "community perspective" and the "professional/technical" perspective:
While you will primarily view issues from your perspective as a resident/citizen in a manner similar to the other residents of the community, the city staff will often have a more "technical/professional" perspective. What might make a great deal of sense to the staff looking at an issue from a purely "business" point of view may not be the right answer based on community perspectives and values. While the city manager will do his or her best to bridge the gap between the two points of view, it is very helpful for councilmembers to understand that while the staff should be sensitive to community values, they will often raise issues based on their professional training that can differ from a purely community values point of view.
An appreciation for these varied perspectives is critical to the council-staff relationship. That does not mean the one perspective is "right" while the other is "wrong"; but both parties should try to understand and appreciate the views of the other.
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• Don't fall into the trap of feeling you are VERY special:
While being elected to a city council is an honor bestowed upon you by the voters, keep that "honor" in perspective. Citizens view electing you as showing trust in your judgment in representing their interests in community decision-making.
They did not elect you because they felt you were personally deserving of special rights and privileges. Don't expect the city manager or staff to be able to assist you in ways outside your formal role on the city council. By and large, they will be required to treat you just the same as any other citizen on matters outside the realm of your official duties. Any compensation and "perks" of office should be visible and public.
• Professional city managers will not "play favorites":
Professional city managers will strive to have a positive working relationship with all the members of the city council regardless of personality, philosophy or positions on specific issues. They will also not let personal likes or dislikes affect how he or she interacts with councilmembers, and you should not expect the manager to act otherwise.
• It is critical to city managers to have clear policy direction:
The city manager and the city organization cannot carry out the policy direction of the city council if that direction is not clearly established. The clearer the direction, the more effectively the manager and staff can implement. Even when the council is split on an issue, the majority's will needs to be clearly stated. The manager should seek clarification from the city council when necessary. • Be sensitive to the need for city managers to sometimes tell you "what you don't want to hear":
One of the least favorite tasks for a city manager is to tell an individual councilmember or the council as a whole something they don't want to hear. This could range from a mistake the organization has made to informing a councilmember that something they want done (or want to do) cannot be done or is not appropriate. While city managers try to be as flexible as possible in meeting the needs of the city council, you will not be well served by a manager who will not tell you when something is not appropriate or cannot be achieved simply to avoid appearing uncooperative. While the manager needs to be clear why the request cannot be fulfilled, it is very helpful to understand the manager has a professional obligation to give you advice contrary to what you would like to hear when he/she is so required.
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• Why managers can't always do what you want them to do:
The manager can often be confronted with a situation of an individual councilmember wanting something done that is not consistent with the wishes of the city council. The manager needs to respond to the direction of the city council as a whole. While managers try to be as responsive as possible to the needs/desires of individual members, on matters of any consequence, the direction of the city council will often be required.
• Take your role to evaluate your city manager's performance seriously:
Like any other employee, the city manager benefits from regular and thoughtful performance evaluations. Performance evaluations are an important communication tool between the manager and council. Working for multiple individuals is challenging enough without clear and consistent feedback on performance. At least annual evaluations should be conducted. This provides the opportunity to communicate how the council views the manager's performance, including areas of strength and areas for potential additional emphasis. This is also the only opportunity for the council as a whole to provide this input in private. Use this valuable communication tool effectively. • Tolerance for organizational imperfection (mistakes!):
While no one likes mistakes, they are unavoidable in the context of organizational life. Cities are complex organizations dealing with a wide variety of services with unique and sometimes challenging clientele. It is not a matter of whether mistakes will be made, but when. It is critical as a leader of your city that you react to mistakes appropriately. While mistakes should be avoided to the greatest extent possible, overreacting can cause further damage. You should expect that mistakes will be addressed promptly, fully disclosed and that steps will be taken to avoid repeating the same mistakes again. You will need to trust the manager to follow up and effectively address the situation when organizational miscues occur. So, have high expectations but recognize that mistakes will occur, even in the best organizations and try not to overreact when they do.
• Support of reasonable risk-taking:
High-performing organizations will occasionally need to take "reasonable risks" in order to achieve community objectives. Sometimes these endeavors will not be successful. However, organizations that avoid ANY unnecessary risk are not likely to accomplish a great deal. While city councils need to be informed and concur that the risk being taken is reasonable for the potential benefit being gained, councils should also be understanding that projects and initiatives that have inherent unknowns may not always turn out as hoped. Intolerance for any 26 - 8 -
mistakes/risk will breed an overly conservative organization and will stifle creativity and flexibility and the benefits these values can bring. • Try to focus feedback on service quality, not individuals:
An ongoing challenge is the difficulty of reconciling the ultimate responsibility of the city council for city service quality versus the need to avoid interfering in the daily management of the organization. It is much better for the city council to communicate service level or quality concerns to the city manager versus performance judgments regarding individual staff members. It is particularly inappropriate for individual members or the council as a whole to try to direct the manager to hire, fire, or promote members of the city staff. • Don't expect managers to take sides in councilmember disputes:
Regardless of how they may personally feel, most city managers will avoid, at all costs, "taking sides" in disputes between councilmembers. While on occasion the manager might try to help reconcile councilmembers, don't expect the manager to take your side in a dispute with a fellow member. Even if they may agree with you, most managers will avoid taking part in public or private criticism of councilmembers unless professionally required to do so in extreme cases. • Don't jump to conclusions regarding citizen/customer feedback:
While it is your responsibility to be available to listen to citizen and customer feedback regarding the city organization, be careful not to jump to conclusions based on what you are told. Oftentimes an individual may sound completely sincere and credible while providing you an inaccurate account of their experience with the city organization. It is best to not jump to conclusions, one way or the other, until the manager is able to provide you a response to the concern. It is embarrassing to criticize staff for poor performance only to find out that the information you relied on was not accurate. At the same time, the manager needs to not be overly defensive regarding staff performance until he or she also has heard "both sides of the story."
• Don't expect the manager to exercise "political leadership":
While managers are inherently leaders of their organizations and, to varying degrees, in their communities, their role is not to be political leaders. That is, it is not intended for the manager to be "out front" on community policy issues. Sometimes city councils want managers to take leadership (advocate publicly) on controversial issues to avoid potential political consequences to themselves. While tempting, this is contrary to the intent of the council/manager plan under which the elected officials are to take the lead on purely policy matters. 27 - 9 -
• Disagree with the recommendation/don't attack the "messenger":
When dealing with a difficult issue at a council meeting, it can be tempting to not only disagree with the recommendation being presented, but to challenge/ discredit the manager or staff member presenting the recommendation. The best practice is to focus your comments on the recommendation, not the individual.
Having a policy discussion devolve into a personal attack is uncomfortable and embarrassing to everyone involved. Even if you are frustrated by the recommendation, it is poor form to attack the presenter. If you do have concerns regarding how a recommendation was developed or presented, that should be provided privately to the manager.
P.S.: Don't play "stump the staff" by trying to ask questions at the meeting that you think staff will have difficulty answering on the spot. It doesn't really make you look smarter, nor is it helpful to the deliberations to ask a question that cannot be answered. While staff members should work diligently to anticipate questions, it is not possible to anticipate all possible questions. If you really want the answer, get the question answered before the meeting or provide a heads up regarding what you will be asking.
• Conduct yourself at council meetings in a professional/businesslike manner:
Even on very controversial topics with greatly varying opinions, the council deliberation can be and should be "businesslike" and professional. While it may be more entertaining (possibly from a reality TV perspective) to see councilmembers and citizens yelling and having temper tantrums, it gets in the way of thoughtful deliberations and only tends to lower the respect for the council and city in the eyes of your constituents.
• Consider the use of council team-building and goal-setting workshops:
Recognizing the importance of both effective councilmember/councilmember and council/city manager working relationships, often an investment of time in teambuilding workshops is very worthwhile. These workshops allow for a thoughtful conversation of working relationships outside the context of discussing specific issues. These discussions can help create a better understanding of work styles and perspectives.
Additionally, recognizing that clear direction and priorities are critical for effective council/manager relations, goal-setting workshops can be very effective forums for establishing city council and organizational priorities. 28 - 10 -
• Have a clear understanding with the manager of the type and frequency of communication you prefer:
While a fundamental value of city managers is to provide regular and complete information equally to each councilmember, councilmembers can vary significantly regarding the type and frequency of contact with the manager they desire. While the manager will use written reports in one form or another as a base line of information to all the members, it is important for the manager to understand your preference for how information should be communicated, including the frequency of personal contact. While some members prefer regular "face-to-face" contact with the city manager, others prefer less time-intensive information-sharing methods.
While sharing the same information among all councilmembers, it is helpful for you and the manager to understand how much and what type of contact you prefer.
• Do your homework:
It takes time and effort to be a successful councilmember. It makes the manager's and staff's job a lot easier if you have reviewed the reports and related materials provided to you prior to the city council meeting. This facilitates efficient meetings, accelerates decision-making and gives the impression that staff and council are working well as a team. Additionally, it will avoid you appearing unprepared to your fellow councilmembers, the staff and your constituents. • Trust above all:
As in all relationships, the city council/manager relationship must be based on trust. Other potential obstacles such as differing personalities, styles, philosophies, etc., can be overcome if there is mutual trust. Without trust, little else will be successful. Both parties need to treat each other with respect and be truthful and forthcoming in their dealings.
• No Surprises:
Both the manager and council should do their best to make sure that important information is not first learned from others. While in this age of instant communication this is more difficult, and in some cases impossible, the parties should do their best to make sure that noteworthy information to which they are privy is not communicated to other organizational leaders by third parties (particularly the media). The manager needs to work hard to make sure that the council is not taken off guard while councilmembers should keep the city manager in the loop as well. "Surprises" can have a very negative impact on the working relationship in that it speaks directly to the trust issue. 29 - 11 -
• Work through the city manager to get things done:
While practice and philosophy can vary to some degree between cities, councilmembers should generally work through the city manager to obtain action by staff.
Individual councilmembers are not authorized to direct staff, though routine referral of citizen requests (or to simply request information) is sometimes appropriate depending on local practice. Coordinating through the manager will make sure the issue is sent to the right staff person for action and will allow the manager to confirm timely follow-up. This also helps the manager stay informed regarding issues of community concern.
• Council/Mayor Role:
It is also important to make sure there is clarity between the council, the manager and the mayor on respective roles. At times there can be a conflict between the role the mayor views themselves as playing and the expectations of the remainder of the council. It is difficult if the manager gets caught in a dispute over these respective roles. In particular, how the city manager relates to the mayor versus the other councilmembers needs to be clear.
• Don't blame the manager or staff for carrying out the direction of the city council:
The city manager and staff are required to faithfully carry out the direction of the city council, regardless if they did or did not recommend it and regardless if some councilmembers oppose it. Respect the staff for faithfully carrying out the will of the council, whether or not you share the view of the council majority. • If the council/manager relationship is not going well:
If you or the council are having difficulty with the city manager, try your best to resolve the issue. First of all, find an appropriate way to communicate the concerns. The manager can't respond if he/she is not aware of the concern. As noted earlier, try to obtain clear council consensus for the expectations for the manager and communicate those expectations clearly. Try to be optimistic regarding the possibility of the manager making adjustments to satisfy the concerns of the council and give sufficient time to do so. Additionally, provide the manager opportunities to respond to the feedback and communicate how he/she will address the concerns.
• If all else fails and there needs to be a "parting of the ways":
A forced separation of the manager is not a good experience for the council, the manager or the city. It can be costly, controversial and can cast everyone in a negative light. It can also erode citizen confidence in the city. Assuming all 30 - 12 -
reasonable steps have been taken to avoid a forced transition and recognizing a parting based on "irreconcilable differences" is always better than an "ugly, contested divorce" (in an "ugly divorce," both parties end up looking bad), keep the following in mind:
— Keep it professional.
— Don't unnecessarily damage the manager's reputation—it is not needed to make a change.
— Provide a reasonable period of time for the manager to find another position or provide reasonable severance—it takes time to find a manager's job. — Remember, how you handle the transition of the current manager will have an impact on the quality of the candidate pool for the next manager.
Summary/Concluding Thoughts:
An unstable council/manager relationship has negative consequences for the city council, the manager, the organization and the community. A positive and mutually supportive relationship will increase the odds of having a high-performing and successful city. The councilmembers and manager need to make creating, supporting and sustaining the relationship a high priority. If made a high priority, the odds of success are great.
Remember that your service on the city council is a unique honor that has been bestowed on you by your fellow citizens. While it is often a challenge, with inherent difficulties, someone needs to do it and your community has selected you for that responsibility. You have been selected to serve in a professional and honorable manner, during good times and bad. Your service on the city council will be over soon enough.
Conduct yourself in a manner that will allow you to look back with pride—not only for what you accomplished, but also the way in which you conducted yourself (which will likely be remembered the longest).
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______________________________________________________________________________
STAFF REPORT
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
MEETING DATE: April 3, 2023
FROM: Sandra Spelliscy, Interim City Manager
SUBJECT: ARSA/City Agreement, ARSA Administration and Related Issues RECOMMENDATION:
Discussion and possible action re: direction to staff.
BACKGROUND:
The Amador Regional Sanitation Authority (ARSA) is a Joint Powers Authority established by agreement in 1978. The original members of the JPA were Amador County, City of Jackson, City of Sutter Creek, and Amador City. The purpose of the JPA was to construct and operate an effluent outfall at the Sutter Creek Wastewater Treatment Plant that would carry treated wastewater for storage in the Preston/Henderson system owned by the State of California with eventual disposal by the City of Ione. The County’s participation in the system was limited to disposal from the unincorporated area of Martell.
The original agreement contemplated an expansion of the JPA to include upcountry areas such Pine Grove, Pioneer and Volcano, and also indicated an intent to form a special district from the membership of the JPA and to operate the disposal system under as such.
In 1982 the JPA agreement was amended to remove the City of Jackson from participation as it had constructed its own treatment and disposal facilities.
From 1978 until 2001 ARSA contracted with Amador County to operate the disposal system and provide staffing for ARSA’s administrative responsibilities. In 2001 the City and ARSA executed an agreement that provided that the City of Sutter Creek would assume the operations and staffing responsibilities for ARSA and the ARSA system. The main provisions of that agreement included the following.
• The city would undertake all ASRA operations;
• The city would use its own funds to pay for the labor and materials to operate the system, with reimbursements for those payments by ARSA;
• The city would hire a specific county employee as a city employee to operate the system, as well as utilize other city employees for ARSA purposes as needed; 32 2 [Type text]
• The city accepted liability for all damages and other costs caused by the city’s negligent operation of the system and would indemnify ARSA against claims for damages; • The Agreement was set to expire June 30, 2002, but would renew on a year-to-year basis each June 30 without the need for action by the parties; and, • The Agreement could be terminated at any time upon mutual consent of the parties or by either party without cause upon ninety days written notice.
There was no provision in the original agreement setting forth a process or notice schedule if one or both of the parties desired to modify the agreement.
The 2001 agreement remained in effect until 2016, when it was revised. The basic change created by the 2016 revision related to the appointment of an ARSA General Manager and how that position would be supervised. The operable language in the 2016 revision regarding that change is as follows.
…ARSA has determined to employ a city employee to serve as its general manager. The general terms of work and day-to-day supervision and direction shall be the responsibility of the City as employer. ARSA shall, however, have the right to provide direction to the employee and provide input of [sic] this employee’s performance to the City. ARSA shall retain the right, at its discretion, to utilize a city employee as its general manager or to cease the use of a city employee as its general manager upon written notification from ARSA to the City.
Former City Manager Amy Gedney served as ARSA General Manager from 2016 until February 24, 2023, when she resigned as city manager and therefore could no longer serve as ARSA GM pursuant to the terms of the revised agreement. On March 20, 2023, the city received an e-mail communication from ARSA General Counsel Frank Spelndorio notifying the city that pursuant to the 2016 revised agreement, ARSA was ceasing to use a city employee as its General Manager. At this time ARSA is operating without a General Manager, but three city employees continue to provide operational services and administrative and accounting support.
The ARSA Board intends to consider an item at its April 14 meeting appointing the Sutter Creek Interim City Manager as ARSA General Manager.
DISCUSSION:
The 2016 revised agreement was vague regarding the process that would be followed if ARSA determined not to utilize a city employee as GM. This was highlighted when Ms. Gedney resigned as City Manager but expressed an intent to continue as ARSA GM. The confusion regarding this situation highlighted the issue of the ARSA/City agreement as a whole, and some members of Council expressed an interest in reviewing the agreement to better understand its terms and to determine whether the agreement in its current form continues to serve the best interests of the city.
Related Issues
There are two other important issues arising out of the City/ARSA relationship as well. The first is that the city has an outstanding loan obligation to ARSA in the amount of $450,000 plus 33 3
interest. The loan was made by ARSA to the city in 2002 and amended in 2006 in order help the city secure an effluent spray easement on the Noble Ranch property. When conditions precedent in the loan agreement were not met by the city in 2007 and 2008, the loan became due and payable. Each year since ARSA has executed a one-year extension to the loan agreement to postpone the city’s payment obligation.
The loan has continued to accrue interest costs since 2008, which costs are now considerable.
The loan and interest repayment obligation has a significant negative impact on the city’s ability to borrow funds, and to plan responsibly for other pressing capital needs.
The other general issue regarding the ARSA/City relationship is the status of the JPA itself.
Since it was formed in 1978 the membership has changed substantially with the loss of the City of Jackson’s participation. Although the County remains a member, it has transferred the wastewater responsibilities of the Martell service area to the Amador Water Agency, which is not a member of the JPA. Sutter Creek ratepayers pay the overwhelming majority of the cost to operate the JPA and the disposal system, yet the city representatives are in the minority on the Governing Board. The city faces tremendous challenges to fund the capital needs of its own wastewater collection and treatment system, as well as support the operation and capital needs of a separate disposal system.
Sutter Creek employees operate and maintain the ARSA disposal system, as well as providing the administrative support for the JPA. Sutter Creek ratepayers are the backbone of the financing for the system. Forty-five years after the establishment of the JPA, it is probably time to take a fresh look at its purpose and viability under current conditions and circumstances.
Given that the ARSA/City agreement is set to automatically renew on June 30, time is of the essence if the Council wishes to revisit its provisions. Staff recommends that the Council direct staff to begin a process of consultations with ARSA and others regarding any necessary updates or changes to the agreement, as well as discussion regarding the status of the city’s outstanding loan obligation to ARSA, and the continued operation of the JPA going forward.
BUDGET IMPACT:
Unknown at this time.
ATTACHMENTS:
1. ARSA 1978 JPA Agreement
2. 1982 Amended JPA Agreement
3. 2001 Agreement between City and ARSA
4. 2016 Agreement between City and ARSA
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