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HomeMy WebLinkAboutMinutes - October 22, 1952186 CITY COUNCIL CITY OF LODI COUNCIL CHAMBERS, CITY HALL OCTOBER 22, 1952 Pursuant to the adjournment taken from its regular meet- ing of October 15, 1952, the City Council of the City of Lodi met at 5:00 p.m. of Wednesday, October 22, 1952; Councilmen Preszler, Richey, 'Zinn, Robinson and Haskell (Mayor) were present; none absent. Minutes of the previous meeting of October 5, 1952, were approved as written and mailed. COT. IUNICATIONS From Lodi Aerie No. $35 of the Fraternal Order of Eagles commending the City Council on the selection of Police Chief Hunt and urging that EAGLES COM24END consideration be given to the suggestions con - COUNCIL ON cerning a traffic squad and the distinctive SELECTION OF marking of Police Department vehicles made by POLICE CHIEF Chief Hunt. City Manager Weller stated that he had already discussed this matter with Chief Hunt and that he intended to cooperate with the Chief in establishing any improvements which appear desirable and practical. Albert McDonald, Chairman of the Citizens Com- mittee Against Mass Fluoridation of Lodi City Water Supply, read a resolution of this group calling for a display of a can of sodium fluo- ride along with a medical description of the material in the City Hall lobby along with the City's unlabled water display. Councilman Robinson stated that he did not believe that A petition from residents in the vicinity of Rush, Central and Washington streets requesting a new alley or resurfacing of the old alley PETITION between Central and Washington. City Manager REQUESTING Weller stated that a check with the City En - ALLEY gineer revealed that this alley would be con- I:YiPROVR,IENT sidered along with the other alleys in this area in the resurfacing program. He stated that he doubted that this alley would be in- cluded in the program this year; however, it would receive attention as far as patching and maintenance are concerned. Letter from the Placerville Chamber of Commerce relative to a trans -Sierra all-weather highway. TRANS -SIERRA This letter duplicated a letter received from HIGWdAY the City of Auburn. The City Manager was asked to reply that the Council had already adopted a resolution on this subject. From Clarence E. Ridley, Executive Director of LETTER FROM the International City Managers' Association, C. E. RIDLEY expressing his opposition to Proposition No. 10. From State Division of Parks and Beaches report- ing that the State Park Commission authorized LODI LAKE PARK the appraisal of Lodi Lake Park at its meeting of October 10. A resolution from the City Council of the City of Richmond expressing opposition to the pro - STATE -WIDE posal of the County Supervisors Association for SALES TAX a State-wide city and county sales tax. On the motion of Councilman Rinn the matter was tabled. PUBLIC HEARINGS Albert McDonald, Chairman of the Citizens Com- mittee Against Mass Fluoridation of Lodi City Water Supply, read a resolution of this group calling for a display of a can of sodium fluo- ride along with a medical description of the material in the City Hall lobby along with the City's unlabled water display. Councilman Robinson stated that he did not believe that Minutes of Oct. 22, 1952 continued 137 the display should be of just any can of sodium fluoride, but that he would recommend a display of the substance which will be used to fluoridate the Lodi water. Mayor Haskell expressed his PROTEST disappointment in the attitude of the McDonald WATER group in opposing the action of the Council in DISPLAY setting up this display of unlabled bottles of water, one containing one part per million of fluoride. This action, he said, was taken in the best of faith, believing that people wishing to make an unbiased comparison of the two samples of water should be given the opportunity. He pointed out that one need not taste the water if he did not so desire. Councilman Richey defended the Council's display as an excellent opportunity for the individual to sample and reach his own decision. Councilman Robinson moved, Preszler second, that the City Manager be authorized to display a sample of the fluoride material with an analysis thereof for the benefit of those who are interested. The motion was defeated by the following vote: AYES: Councilmen Robinson and Preszler NOES: Councilmen Rinn, Richey and haskell Continuance of the present display was then approved by a unanimous vote. The Council was presented with a petition signed by residents of Loma Drive calling the attention PETITION of the members of the Council to poor condition REQUESTS of pavement on Loma Drive and asking that neces- REPAIR OF sary action be taken to effect the necessary re- LOMA DRIVE pairs. Mayor Haskell accepted the petition and asked for time for consultation with the City '"'anager and City Engineer. At the order of Mayor Haskell a public hearing was then held on the application of Thomas C. Gholson, operator of the Veteran Cab Co., for an additional APPROVE taxi cab stand in front of his place of business TAXI CAB at 33 North Sacramento Street. No objections STAND were voiced. After determining that there were no objections presented in the report of the Chief of Police, Councilman Rinn moved, Preszler second, that the request be granted. The motion passed. REPORTS OF THE CITY MANAGER The City Manager presented specifications for the purchase of concrete pipe to be used in the SPECIFICATIONS sanitary sewer construction in Century Nlanor and CONCRETE PIPE Lorre Village. The estimated cost of the pipe is $7572. On the motion of Councilman Rinn, Pres- zler second, the specifications were adopted. The draft copy of the contract to implement the policy relative to the extension of utility facilities to subdivisions as discussed at the previous meeting was presented. Mayor Haskell briefed the other members of the Council and the audience on the background of the problem and the tentative policy that had been discussed up to this point. After getting a general agreement of the policy up to the point of establishing the UTILITY amount of refund..and the rate of depreciation to EXTENSION be charged, the Council then discussed these mat - POLICY ters. Councilman Robinson stated that he felt that a refund of approximately 50% would.be more reasonable than the suggested 60%, or specifi- cally, $3.50 refund per connection rather than 44.20. After a short discussion it was agreed 1.38 Pinutes of Oct. 22, 1952 continued to refund at the rate of 4-3.50 per connection. On the motion of Councilman Robinson a depreciation rate of 10% was established; such depreciation charge to commence at the termination of a base period which is arrived at by determining the costs of installation per lot in the subdivision and then calculating the minimum time required to refund said amount at 43.50 per month. This shall be expressed at the next higher year. It was unanimously agreed that the refunds should be in the form of quarterly payments. Mayor Haskell pointed out that the contract contained AUTHORIZE provisions which enabled the City to repay the CONTRACT subdivider earlier than specified if it is the desire of the City to do so. The contract au- thorized is essentially as follows: A G R E E N1 E N T THIS AGREEMENT made and entered into this day of , 19_, between the CITY OF LODI, a municipal cor- poration of the State of California, hereinafter called First Party, and of California, hereinafter called Second Party, W I T N E S S E T H: WHEREAS, Second Party contemplates the subdivision and improvement of a certain tract of land known as and W'H'EREAS, Second Party is desirous of having First Party lay and install the necessary water, electricity, and sanitary sewer utilities to and.within said subdivision; and WHEREA3, the parties hereto are mutually desirous of pro- viding for the manner and method of paying the cost of instal- ling said utilities; NO:1, THEREFORE, in consideration of the mutual covenants and conditions herein contained, the.parties hereto do hereby mutually covenant and agree as follows: First Party covenants and agrees to bring to and install within Second Party's subdivision the necessary water, electri- city, and sanitary sewer lines, the installation within said subdivision to be within the easements provided for utilities as shown upon said subdivision map. It is expressly understood and agreed that this agreement does.not contemplate nor cover the connections from these utility services to the improvements to be erected within said subdivision, but only covers the main lines and laterals to the subdivision and within said subdivi- sion easements. II Second Party does hereby pay to First Party the sum of 4 to cover the estimated cost, as computed by First Party, of installing said utilities. In the event that the actual cost of installing said utilities exceeds the amount of this deposit, then and in that event, Second Party covenants and agrees to pay to First Party within sixty days after receipt of a written demand, a sum sufficient to pay the difference between the amount deposited and the actual cost of the instal- lations. in the event/that the actual cost of the installation of the utilities is less than the amount deposited herewith, then and in that event, First Party covenants and agrees to refund the difference to the Second Party within sixty days after the date the utilities have been installed. 119 9 Minutes of Oct. 22, 1952, continued. III First Party agrees to refund to Second Party the amount of money deposited with First Party at the rate of :3.50 per month, payable quarterly, for each connection made to all the utilities within the subdivision. For the purposes of compu- tation, the number of connections in place and in use as of the end of each quarter shall be the basis upon which the re- fund for that quarter shall be made. Said payments shall con- tinue until the entire amount of deposit paid by Second Party to First Party has been refunded to Second Party, subject, however, to the conditions hereinafter contained in paragraph IV. It is expressly understood and agreed that the obligation of First Party to repay Second Party shall not include the payment of any interest whatsoever. For the reason that First Party is making payments to Second Party from revenue derived solely from the use of the utilities installed in Second Party's subdivision, it is mutually understood and agreed that First Party shall be under no obliga- tion to commence payments to Second Party unless and until the utilities are not only connected to the improvement in the sub- division but also that the improvement is used and occupied. IV in the event that at the end of years from (six months from date) , Second Party has not been repaid the deposit in full, then and in that event, and commencing with the year and annually thereafter, First Party shall charge an annual depreciation of ten per cent on the balani e of prin- cipal then remaining due and owing to Second Party, and the amount due Second Party shall be reduced accordingly by this amount of depreciation, as of the start of said year and continuing annually thereafter. In other words, commencing with the said year, the obligation of First Party to repay Second Party shall be reduced in an amount computed at the rate of ten per cent on the amount of principal due and owing each year commencing with the year. V Nothing in this agreement shall be construed as preventing First Party, at its option, from repaying Second Party at a faster rate than the amount provided for herein. IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first hereinabove written. CITY OF LODI By Mayor Attest: First Party City Clerk Second Party Councilman Rinn moved, Richey second, that the policy as implemented by the abode contract be adopted to apply in all subdivisions or develop- ments of a residential nature for the extension of utilities up to the subdivision or development and into the easements which are cleared by the developer. The motion was adopted by a unanimous vote. Claims in the amount of .88 ,495.51 were arproved CLAI:S for payment on the motion of Councilman Richey, Preszler second. 140 Minutes of October 22, 1952 continued Councilman Preszler recommended that one or two police patrolmen be put on foot in the central business district, explaining that he felt that better police coverage would be achieved in this DISCUSS manner. He further suggested that better cover - POLICE age would be achieved by instituting one man ORGANIZATION Datrols rather than the two man patrols we have at present. Councilman Robinson suggested that some steps be taken to reduce the double parking on the streets in the business district. It was agreed that these matters should be left for the Chief of Police to consider. Mr. Weller then read a letter to the Council which REPORT ON he had prepared exp4&ining the effects of the PUC DECISION recent decision of the Public Utilities Commission on the Cit- of Lodi. The lettar as read a^pears as follows: moved the adortion of Resolution RES. m1704 No. 1704 declaring the intention of the City INT. TJ ANNE{ Council to annex to the City of Lodi the 104 LAWRENCE acre tract to be known as the Lawrence Ranch RANCH Addition. The date for public hearing was set ADDITION for Friday, November 21, 1952 at 12 o'clock noon in the City Council Chambers of the City Hall. The motion passed. The City Manager presented a petition calling for the annexation to the City of approximately RIECK 11 acres which lie north of the 40th Addition and PETITION west of Hutchins Street. The petition was re - PRESENTED ferred to the City Planning Commission on the motion of Councilman Rinn, Richey second. Mr. Weller presented the informal bids received for AWARD tl-e audit of the City's accounts. Councilman AUDIT Richey moved, second Robinson', to award contract to the low bidder, Lyman Straine & Company. The motion carried. A request from Walter Smith for overwidth drive- ways at the drive-in market under construction APPROVE at the corner of Kettleman Lane and South Hutch - OVER -WIDTH ins Street was presented. Councilman Preszler DRIVEWAY moved, Richey second, that the request be granted for the construction of a driveway on Kettleman Lane up to 40 feet and two driveways on Hutchins Street of widths up to 18 and 22 feet with the understanding that such widths will be cut down if possible. The motion carried. A recommendation from Police Chief Hunt relating to the traffic problem at Needham School was pre- sented. Chief Hunt recommended as follows: 1. That the curb be painted yellow for about 150 feet south from Church Street entrance NEEDHAM of the school SCHOOL 2. That a "No Parking" area be established TRAFFIC in front of the center and south entrances on Pleasant Avenue. The recommendations of the Police Chief were adopted on the motion of Councilman Richey, seconded by Councilman Robinson. To a question by Mayor Haskell relative to the installation of traffic signals at the corner of TRAFFIC School and Pine Streets and at the corner of Oak SIGNALS and School Streets, City Manager Weller replied that some cDnfusion had developed in the ordering of the equipment; however, it was now straightened out and the order had been placed. Councilman Preszler recommended that one or two police patrolmen be put on foot in the central business district, explaining that he felt that better police coverage would be achieved in this DISCUSS manner. He further suggested that better cover - POLICE age would be achieved by instituting one man ORGANIZATION Datrols rather than the two man patrols we have at present. Councilman Robinson suggested that some steps be taken to reduce the double parking on the streets in the business district. It was agreed that these matters should be left for the Chief of Police to consider. Mr. Weller then read a letter to the Council which REPORT ON he had prepared exp4&ining the effects of the PUC DECISION recent decision of the Public Utilities Commission on the Cit- of Lodi. The lettar as read a^pears as follows: iL:inutes of Jct. 22, 1952 continued "To the Honorable :Mayor and iv.embers of the City Council Gentlemen: "You will recall that on July 18, 1952, the Pacific Gas & Electric Company filed an application before the State Public Utilities Commission for permission to increase electric rates by approximately Q37,650,000 per year. Subsequently, in Aug- ust, the Company filed supplemental requests which raised the total increase sought to about �45,704,OOC, based on estimated 1952 sales. "As a part of the proposed increase, the Company proposed that eates be raised approximately 18�% in the case of all special contract resale customers with the exception of Redding. In addition to ourselves, this portion of the application would have applied to the cities of Biggs, Gridley, Roseville, healdsburg, Ukiah, Santa Clara, Alameda and Palo Alto, and to the Sacramento Municipal Utility District and the Plumas- Sierra Rural Electrification District. At the then -existing rate of kwh consumption, this proposal would have cost the City of Lodi approximately 08,000 per year. In addition, the Company sought inclusion of the so-called 'fuel -oil clause' in its resale contracts. This is a kind of escalator pro- vision related to the cost of fuel for diesel electric gen- eration. Its effect in dollars and cents is difficult to estimate because it varies with the market price, but with fuel oil at $2.20 - by no means an impossible figure - the clause would have cost us an additional sum of about 422,000 per year at then -existing rates of kwh consumption. The total impact of the Company proposal to Lodi could therefore have been measured not unreasonably at about w60,000 per year. Bearing in mind that our power bills increase at the rate of about 8% per year, it is obvious that the increase proposed would have amounted to a staggering sum by the end of the present contract period in September of 1954. Similar figures, of course, were applicable to the other public agencies in this consumer group. "It seemed to me that the Company's application for an increase in rates for customers served under contract was arbitrary and that if it were approved by unilateral petition, it would remove all value from such contracts. "In July, 1951, I therefore circularized the cities of Biggs, Gridley, Healdsburg, Ukiah, Roseville, Santa Clara, Alameda and Palo Alto and the Plumas-Sierra District for the purpose of suggesting a meeting to discuss the Company appli- cation. This meeting was held and it was decided to present joint opposition to the increase before the Commission. "Considerable preliminary work was done in assembling pertinent data and we engaged ,"•lr. David I. Wendel of the firm of Glickman, Orr & Heuring, Oakland, to advise on legal details of Commission formality and presentation. Protests on behalf of each agency were then filed with.the Commission. "The case we submitted was based in general on the follow- ing points: 1. The City of Redding was entitled to its exemption by reason of the availability of competitive electric power through the Bureau of Reclamation. installation at Shasta and Keswick Dams. However, all of the protesting public agencies with the exception of Healdsburg and Ukiah were also in the area to be served by the so-called 'wheeling agreement' and were accordingly equally eligible to obtain competitive power. For this reason we contended that all protesting agencies excepting Healdsburg and Ukiah should receiire treatment on an equal basis with Redding. 141 s � 9 Minutes of Oct. 22, 1952 continued 2. The cities of Healdsburg and Ukiah presently were paying contract rates for electric power which were approxi- mately 15% above those paid by other agencies. Cost of service to the Company for these two customers did not appear reasonably to be any higher and we accordingly asked that the discrimina- tion against these cities be removed in the future. 3. We contended that the proposed insertion of the fuel oil clause constituted an essential and fundamental change in our existing contracts, that it was in any case inequitable and that it should not be permitted by the Commis- sion. 4. Each of us had signed contracts for periods of five years with the Company, under which specific rates for electricity were stipulated. These rates were a basic part of the contract and should not be modified except by mutual consent, even admitting the authority of the Commission to intervene on its own initiative. "On February 7, 1952, the Company moved for an interim increase pending final judgment on the case. We opposed this motion, along with other protestants, and on April 8 the Com- mission denied it. In the light of the decision finally handed down by the Commission, I believe that our protest weighed heavily in the rejection of interim relief. "A total of 36 days of hearings were held before the Com- mission between November 7, 1951, and July 25, 1952. Due to the complexities of the case, the Commission decision was not handed down until October 15, 1952. "Under this decision, as you no doubt know, a general increase to other consumers of approximately 12% was granted. �Iith respect to the four points raised by our group, these were the Commission rulings: 1. On our objection to special treatment for Red- ding: The Commission ruled that Redding in the future would be considered on an equal basis with other special contract resale customers. 2. On our objection to differential rates for Healds- burg and Ukiah: The Commission ruled that these cities would in the future be considered on an equal basis. 3. On our objection to the fuel oil clause: The Commission ruled that this clause v.would not be inserted. 4. On our contention that existing contracts should not be amended except by mutual consent: The Commission ruled that our present contracts would not be disturbed and that present rates would be continued. "However, at the same time the Commission established a new filed tariff, Schedule "R", approximately 25% higher than our existing contract rates. This schedule will be the basis for future contracts. The decision reads, in part: 'It is the Commission's opinion that the present resale Schedules P-6 and P-31 (ours) would create unreasonable burdens upon other customers if continued in the future at present rate levels.... (Nie are) of the opinion that an opportunity should be afforded the parties to renegotiate these contracts, should (the parties) so determine.' In other words, the Commission consideres our present rates too low, offers the opportunity for renegotiation between the Company and the customer, but does not compel it. "I feel that our group has in this case won a very sub- stantial victory. The decision establishes, at the very least, an extreme reluctance on the part of the Commission to inter- fere with a bilateral contract entered into for a term of Minutes of Oct. 22, 1952, continued 143 years in good faith. It eliminates the threat of the inequit- able and random effect of the fuel oil clause. It removes basic inequities in the treatment of the various special con- tract resale customers. And, finally, it saves our rate -payers a very large sum of money. At present levels of consumption, the continuation of our contract rate would mean a saving of at least .*140,000 from November of this year through Septem- ber, 1954. Our costs for legal representation and preparation of exhibits, pro -rated among the cooperating agencies on the basis of the number of electric meters in use, aggregated 4426.06. I believe that this had been money well spent. Respectfully submitted, H. D. WELLER City Manager" A motion expressing the appreciation of the City Council on behalf of the citizens of Lodi to CITY MANAGER City b'Ianager Weller for his efforts in opposing COY11ENDED the increase in the rates for electricity re- quested by the P. G. do E., and commending him for the notable success achieved by his efforts, was made by Councilman Rinn, Preszler second. The motion carried unanimously. Councilman Rinn moved,Robinson second, that the City Clerk be directed to write a letter of COUNTY CLERK appreciation to County Clerk R. E. Graham for THANKED the aid extended by him to the City Clerk in preparation of the fluoridation question for the consolidated election to be held November 4. The motion was passed with a unanimous vote. On the motion of Councilman Robinson, Rinn RES. #1705 second, Resolution 1705 endorsing the passage ENDORSES of the bond issues for the County Court House COUNTY COURT and Jail and proposing a joint city -county com- HOUSE BONDS mittee to study sites for the location of the Court House was adopted. ORDINANCE NO. 467, "APPROVING THE ANNEXATION OF LOWE'S ADDITION TO THE CITY OF LODI AND DECLARING THAT THE SAME IS ANNEXED TO AND MADE PART OF THE CITY OF LODI", having been introduced after pub- lic hearing on October 1, 1952, was brought up ORD. NO. 467 for passage on motion of Councilman Richey, Rinn ADOPTED second, second reading omitted by unanimous con- sent, after reading by title,and them passed, adopted and ordered to print by the following vote: AYES: Councilmen, Preszler, Richey, Rinn, Robinson and naskell NOES: Councilmen, None ABSENT: None Mayor Haskell then signed Ordinance No. 467 in approval thereof. ORDINANCE NO. 468, "APPROVING THE ANNEXATION OF 45TH ADDITION, LOTS 41 THROUGH 46 OF THE GERARD TRACT, TO THE CITY OF LODI AND DECLARING THAT THE SAI�iE IS ANNEXED TO AND MADE A PART OF THE CITY OF LODI", having been introduced after public hearing on October 1, 1952, was brought up for passage on ORD. NO. 468 motion. of Councilman Preszler, Rinn second, second ADOFTED reading omitted by unanimous consent, after reading - by title, and then passed, adopted and ordered to print by the following vote: AYES: Councilmen, Preszler, Richey, Rinn, Robinson and haskell NOES: Councilmen, None ABSENT: None ."•',ayor Haskell then signed Ordinance No. 468 in approval thereof. 144 �'inutes of Oct. 22, 1952, continued The Council then discussed the advisability of accepting the well in the Lowe's Addition offered by J. J. Mangusto. Councilman Robinson urged that the City either accept this well or ACCEPTANCE OF request another more suitable site from the MATER WELL developer. City Manager Meller stated that the _ DI30USSED present well could not be used by the City in its present condition. Councilman Rinn stated that he felt that the City should get some sort of well site because such a site will be needed. On the suggestion of Mayor Haskell it was agreed that the City Manager be instructed to determine the needs of the City from the Superintendent of Utilities before further action is taken. The meeting was adjourned at 10:55 o'clock p.m. on the motion of Councilman Rinn. Attest: , I I �( Cit Clerk