HomeMy WebLinkAboutMinutes - October 3, 2001LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, OCTOBER 3, 2001
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of October 3, 2001 was called to order by Mayor
Nakanishi at 6:08 p.m.
Present: Council Members — Hitchcock (arrived at 6:09 p.m.), Howard, Pennino and Mayor
Nakanishi
Absent: Council Members — Land
Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston
C-2 ANNOUNCEMENT OF CLOSED SESSION
a) Actual litigation: Government Code §54956.9(a); one case; Foreman / Quenzer v. City of
Lodi et al., San Joaquin County Superior Court Case No. CV 009074
C-3 ADJOURN TO CLOSED SESSION
At 6:08 p.m., Mayor Nakanishi adjourned the meeting to a Closed Session to discuss the above
matter.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:05 p.m., Mayor Nakanishi reconvened the City Council meeting, and City Attorney Hays
disclosed the following action.
In regard to item C -2(a), the City Council authorized staff to negotiate a settlement in the case of
Foreman / Quenzer v. City of Lodi et al.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of October 3, 2001 was called to order by Mayor Nakanishi at
7:05 p.m.
Present: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Absent: Council Members — Land
Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston
B. INVOCATION
Mayor Nakanishi expressed thanks to First Baptist Church of Lodi, Spanish Ministry for its
participation in the Celebration on Central event.
The invocation was given by Pastor Steve Newman, First Baptist Church of Lodi.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Nakanishi.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 (a) Mayor Nakanishi presented a proclamation to Electric Utility Director Vallow proclaiming
the week of October 7 — 13, 2001 as "Public Power Week" in the City of Lodi. Sondra
Huff, Government Affairs Manager, reported that 350 elementary students are scheduled
to tour Electric Utility next Wednesday.
On behalf of Assembly Member Anthony Pescetti, John Beckman, Field Representative,
presented a resolution to the City in acknowledgment of the leadership it demonstrated
during the energy crisis.
Continued October 3, 2001
D-3 (a) Laura Heinitz, member of the Lodi Arts Commission, updated the City Council on the
activities and accomplishments of the Arts Commission.
D-3 (b) Animal Services Officer Terri Arbuckle provided a report on the first annual Mardi Paw
and Canine Festival, which will be held on October 6, 2001, from 10:00 a.m. until
2:00 p.m., at the Lodi Lake Youth Area. This event is a production of the Lodi Animal
Shelter Volunteers, and all funds raised benefit the animals at the Lodi Animal Shelter.
Ms. Arbuckle thanked Shelter Volunteer Daunis Bradshaw for her hard work in organizing
this event.
D-3 (c) Fire Chief Pretz reported that all proceeds from the FireWalker 5K event will go to the
New York firefighters. He introduced Monica Slingerman, San Joaquin County
Coordinator for Special Olympics, who announced the "Walk for the Gold" event, which
will be held October 13, 2001 at Lodi Lake.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Hitchcock, Pennino second, approved the following items hereinafter set forth
except those otherwise noted. The motion carried by the vote shown below:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
E-1 Claims were approved in the amount of $5,390,090.68.
E-2 The minutes of September 5, 2001 (Regular Meeting), September 18, 2001 (Shirtsleeve
Session), September 18, 2001 (Special Meeting), and September 25, 2001 (Shirtsleeve
Session) were approved as written.
E-3 "Receive PCE/TCE Report of Expenditures" was removed from the Consent Calendar
and discussed and acted upon under the Regular Calendar.
E-4 Approved the plans and specifications for bids for installation of Electric Utility
Substructures, Cherokee Lane and Sunwest Area, and authorized advertisement for bids.
E-5 Approved the plans and specifications for a one -yard front-end loader/tool carrier for the
Street Division, authorized advertisement for bids, and approved the funding source as
recommended by staff.
E-6 Adopted Resolution No. 2001-227 rejecting all bids, approving the revised specifications
for 2001-2002 City -Wide Handicap Ramp Retrofit Project, and authorizing
readvertisement for bids.
E-7 Adopted Resolution No. 2001-228 awarding the contract for Roget Park Site
Improvements, Phase I, to Berndt Tree Service, of Lodi, in the amount of $10,400, and
appropriated $12,000 for the project.
E-8 "Adopt resolution awarding contract for Outdoor Skate Park Facility, 1145 South Ham
Lane, to A.M. Stephens Construction Company, Inc., of Lodi ($222,150)" was removed
from the Consent Calendar and discussed and acted upon under the Regular
Calendar.
E-9 Accepted the improvements under the "Municipal Service Center (MSC) Reroof, 1331 S.
Ham Lane" contract, and approved the final Contract Change Orders.
E-10 "Adopt resolution opposing the Bay Area 2001 Ozone Attainment Plan due to lack of
mitigation of Bay Area air pollution blown to the Central Valley by prevailing winds" was
removed from the Consent Calendar and discussed and acted upon under the
Regular Calendar.
2
Continued October 3, 2001
E-11 "Adopt resolution authorizing the City Manager to amend the ground lease agreement
with the Lodi Boys and Girls Club dated December 15, 1993, to include the lease of an
additional 112' by 52' parcel of land located at Blakely Park, 1050 S. Stockton Street" was
removed from the Consent Calendar and discussed and acted upon under the
Regular Calendar.
E-12 "Adopt resolution approving installation of no -parking zones for left -turn pockets on Turner
Road, in the vicinity of California Street/Edgewood Drive" was removed from the
Consent Calendar and discussed and acted upon under the Regular Calendar.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
• Georgianna Reichelt introduced herself as the President of the Land Utilization Alliance,
based in Stockton. She attended a public meeting last week on the subject of the
Redevelopment Plan and Project Area Committee and stated that most of the individuals
in attendance were in opposition to the Plan. She believed that the citizens of Lodi have
not been fully informed about the potential negative consequences of redevelopment,
e.g., eminent domain, decreasing property values, creation of debt, etc. She learned at a
recent seminar that redevelopment is a government in itself that can borrow money
without the peoples' approval, which in her opinion, circumvents the right of voters to
control their tax dollars.
G. PUBLIC HEARINGS
G-1 Notice thereof having been published according to law, an affidavit of which publication is
on file in the office of the City Clerk, Mayor Nakanishi called for the Public Hearing to
consider the Technical Equipment Purchase Proposal for Local Law Enforcement Block
Grant Program.
Police Chief Adams reported that a portion of the City match for the Local Law
Enforcement Block Grant Program comes from the Police Department budget. This
Program is done every year, and as a result, the Department has over $1 million of
computer technology. Staff proposes to use the grant funds to upgrade software in their
existing computers.
In reply to Council Member Hitchcock, Chief Adams stated that the advisory board meets
once each year. The board consists of: Doctor Rich Ferrera, Associate Superintendent of
the School District; Robert Baysinger, Superior Court Judge; Patrick O'Hern, San Joaquin
County Deputy District Attorney; Richard Jones, President of the Lodi Boys and Girls
Club; Charles Mauch, Police Captain; Julie Wall, Investigations Secretary; and Chief
Adams, who serves in an advisory capacity.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Pennino second, adopted
Resolution No. 2001-229 authorizing the Lodi Police Department to purchase technical
equipment that would enhance hardware and software that is being used by law
enforcement personnel at the Lodi Police Department. The motion carried by the
following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
3
Continued October 3, 2001
G-2 Notice thereof having been published according to law, an affidavit of which publication is
on file in the office of the City Clerk, Mayor Nakanishi called for the Public Hearing to
consider adopting Resolution/Order to Vacate Pleasant Avenue, from Elm Street north to
the alley.
Public Works Director Prima explained that changes need to be made to a portion of the
street west of Pleasant Avenue to allow space for the Police building. The area includes
five lots, with four owners. Adjacent property owners have been notified and a number of
meetings have taken place with three of the property owners. The matter for Council
consideration tonight is whether the southern portion is necessary for public circulation;
staff has determined that it is not, and recommends that Council approve the
abandonment. Staff will return to Council in the future with a recommendation for
changes on the remaining half block of Pleasant Avenue.
Mayor Pro Tempore Pennino clarified that no decision is being made at this time
regarding the area north of the alleyway. He referenced a letter (filed) from Steven
Cottrell, and emphasized the need to address his concerns.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
MOTION:
Council Member Hitchcock made a motion, Howard second, to adopt Resolution No.
2001-230 vacating Pleasant Avenue, from Elm Street north to the alley.
DISCUSSION:
Mayor Pro Tempore Pennino suggested that when the section of street is closed off, it
should be enhanced, such as a cul-de-sac design with alley access and two-way traffic.
He was not in favor of making it one-way and forcing travelers to go in and out of the
alley.
Mr. Prima replied that staff would consider the suggestion and include it in their next
presentation to Council on the subject.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
G-3 Notice thereof having been published according to law, an affidavit of which publication is
on file in the office of the City Clerk, Mayor Nakanishi called for the Public Hearing to
consider updating Development Impact Fees for water, wastewater collection, storm
drainage, streets, police, fire, parks and recreation, and general City facilities, and
amending Title 15, Chapter 15.64 of the Lodi Municipal Code.
Public Works Director Prima explained that the development impact mitigation fees that
the City collects are used to offset the cost of providing public infrastructure that is not
provided as part of normal development improvements, e.g., traffic signals, storm drain
basins, new parks, etc. These are items related to growth, which developers are not
expected to build as part of their projects; however, they do cause an impact to the
community, and as such, they pay fees toward a fund used to help build these types of
facilities. The City has been collecting development impact fees since the early 1990s.
Staff is proposing a 30% increase to the impact fees and an annual adjustment
mechanism.
4
Continued October 3, 2001
Council Member Hitchcock pointed out that during discussions regarding the Public Art
Policy she asked whether it would become part of the development impact fee report, and
was told that it would be; however, it has not been included in the report.
Mr. Prima replied that the Public Art Policy was mentioned in the staff report for this item.
Council Member Hitchcock suggested that this item be deferred until the impact fee
update report includes a section on Public Art Policy.
At the request of Council Member Howard, Mr. Prima summarized the proposed
development impact fee update. Impact fees are charged per acre of development.
Residential acre equivalent is used to convert for commercial and industrial projects. The
current fee for residential development is approximately $40,000 per acre. Under the
proposal, this fee would increase to $52,000. Industrial fees would increase from $30,000
an acre to $41,000. Retail commercial would increase from $42,000 an acre to $56,500.
Hearing Opened to the Public
• Georgianna Reichelt stated that the City is charging impact fees for development
that should benefit general City facilities. She asked how streets, sewer, and
water lines have deteriorated to such an extent, if fees have been collected for
this purpose, and questioned where the money has been spent.
At the request of Mayor Nakanishi, Mr. Prima explained that the City cannot use
impact fees to correct existing deficiencies.
• Dennis Bennett of Bennett Development stated that he served on the committees
for the study of impact fees and the Public Art Policy. A thorough investigation
was done of the projects that would be funded by these fees, as well as a review
of applicable fees in surrounding communities and they found that the proposal
was fair. He explained that as density and land use goes up, the fee also
increases. There is no additional fee to developers for the Public Art Policy, as it
was included in the 30% increase. Mr. Bennett urged the Council to approve
staff's recommendation.
• Jeffery Kirst noted that he also served on both committees. He stated that the
development community wants development to pay its fair share for
infrastructure, to ensure that services are available as future growth occurs. He
informed the Council that a dozen or two residential parcels throughout the City
were formed or created prior to 1968. He requested that these parcels be
grandfathered in, and not required to pay impact fees.
At the request of Mr. Bennett, Mr. Prima explained that there are a number of
trigger dates for implementation. Overall, the new fees would go into effect 60
days from the date of adoption. Fees for water, sewer, streets, and drainage are
collected at the time of map filing. Fees for Police, Fire, Parks and Recreation,
and general City facilities are collected at the time of acceptance of
improvements. For projects that have a deferral under a public improvement
agreement, developers would have an additional year from the date of the
agreement under the old fee structure. There are a number of tentative maps
that have projects, which have already been approved. They would be granted
until January 1, 2003 under the old fee structure.
• Wilburt Ruhl stated that he was disappointed that no Council Members attended
the public meeting on the redevelopment plan last Tuesday. He distributed a
copy of "Redevelopment: The Unknown Government" filed) to Council Members.
Public Portion of Hearing Closed
5
Continued October 3, 2001
In reference to Mr. Kirst's request, Council Member Hitchcock stated that she was not in
favor of grandfathering in parcels created prior to 1968, noting that it still costs at today's
dollars to develop the property. She reiterated her statement that the Public Art Policy
was supposed to be included in the development impact fee update report and asked the
City Clerk to provide her with a copy of the video in which the Policy was discussed.
Mayor Pro Tempore Pennino agreed that the development impact fee update report
should include a section regarding the Public Art Policy.
Mayor Nakanishi felt that the documents as submitted were self-explanatory.
In response to Council Member Howard, Mr. Prima explained that the provision for the
automatic update was based on the construction cost index, which is published monthly.
Though the exact amount cannot be predicted, it has typically been 1% to 3%.
MOTION (#1):
Mayor Pro Tempore Pennino made a motion to adopt the resolution and introduce the
ordinance for the approval of the development impact fees, with the inclusion of a section
for the Public Art Policy.
DISCUSSION:
Public Works Director Prima pointed out that the resolution includes adoption of the
report, and for this reason, he recommended that Council defer action on the resolution
until the report is amended.
MOTION (#1) — AMENDED:
Mayor Pro Tempore Pennino amended his motion, Nakanishi second, to only introduce
the subject ordinance.
DISCUSSION:
Council Member Hitchcock stated that she would not vote in support of the motion, as she
preferred to see all the final documents prior to making a decision.
Council Member Howard concurred with Ms. Hitchcock.
VOTE:
The above motion failed by the following vote:
Ayes: Council Members — Pennino and Mayor Nakanishi
Noes: Council Members — Hitchcock and Howard
Absent: Council Members — Land
MOTION (#2) / VOTE:
Further, the City Council, on motion of Council Member Hitchcock, Howard second,
continued the subject Public Hearing to the regular City Council meeting of October 17,
2001. The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
RECESS
At 8:30 p.m., Mayor Nakanishi called for a recess, and the City Council meeting reconvened at
8:45 p.m.
6
Continued October 3, 2001
G. PUBLIC HEARINGS (Continued)
G-4 Notice thereof having been published according to law, an affidavit of which publication is
on file in the office of the City Clerk, Mayor Nakanishi called for the Public Hearing to
consider adopting resolution adjusting water and wastewater rates.
Public Works Director Prima reported that staff is recommending a rate increase to
maintain the Operating and Capital maintenance fund balance of 15%, as well as
$300,000 in water and $600,000 in sewer for Capital needs. Sufficient funds are needed
to begin a program to replace aging infrastructure. At the rate of funding proposed
(approximately $2 million a year) it would take a little over ten years to replace the 2"
water pipes. Clay sewer pipe was used in older sections of the City, and in the 1930s
concrete pipe was used, both of which need to be replaced. Under the program 10,000
feet of pipe per year on average would be taken out of the system and replaced. The
target level for funding, for the purpose of establishing rates, is based on an average
annual rate of replacing 1% of the system. Staff recommends establishing the rates now
to be in effect in January 2002, with a second increase in July 2002.
Council Member Howard clarified that water and wastewater pipe replacement would be
addressed at the same time.
At the request of Council Member Howard, Mr. Prima summarized the miscellaneous
charges referenced on page one of the staff report. The rate structure for wastewater
includes high-strength users, of which there are approximately twelve industries in the
City. Because of the nature of their waste, they are charged based on a combination of
flow, biochemical oxygen demand, and suspended solids. There are miscellaneous
construction charges for water as well.
In response to Council Member Hitchcock, Mr. Prima reported that the industry claims the
type of water and wastewater pipe used today will last 100 years. Lodi's soils are good in
terms of stability and are non -corrosive. Pipe replacement will be contracted, but design,
coordination, and valve operation will be done by the Public Works Department.
Senior Civil Engineer Charlie Swimley estimated that it would take three years to replace
pipe between Lodi Avenue, Kettleman Lane, Cherokee Lane, and Stockton Street.
Mr. Prima noted that the pipe replacement referred to by Mr. Swimley is only for the 2"
pipe. There are 6" and 8" pipes, which are not included in the program.
In reply to Council Member Hitchcock regarding an escalator cost, Mr. Prima stated that it
is far too uncertain for staff to recommend something today that should be done two years
from now. He stated that this issue was indirectly addressed, however, by establishing
and confirming a policy as to what the fund balance should be. This will be used as a
measure when the next two-year budget is developed. In the case of wastewater, a major
expansion and upgrade of White Slough is anticipated. It is unknown how that might
affect rates. Water supply issues might also have a significant impact on future water
rates.
Council Member Hitchcock asked how the $6 million was being accounted for that came
from the water fund to pay for attorney fees related to the PCEITCE issue. She
emphasized that this money should not be reflected in the water rates.
Mr. Prima confirmed that the $6 million was not going to be repaid through the rate
increase. He explained that the fund balance was significantly higher when the money
was deducted. Currently, the fund balance is close to what staff's recommended reserve
is.
7
Continued October 3, 2001
Hearing Opened to the Public
• Wilburt Ruhl stated that all utilities should go into the utility fund.
• Leo Vitale reported that today's newspaper indicated the rate increases would be
32% and 34%. He stated that it was unfair to base water rates on the number of
bedrooms in a home, rather than the number of persons living in a home.
Mr. Prima stated that for a two-bedroom home the rate would increase from
$10.38 to $12.98 in January and to $16.22 in July.
Mayor Nakanishi pointed out that water meters cost $1,000 each for purchase
and installation.
Mr. Vitale favored the use of water meters for equity purposes.
Council Member Hitchcock commented that if water meters were financed using
the same method as the 1% pipe replacement, then it would amount to only $10 a
year.
• Georgianna Reichelt stated that she worked with the press for 41 years, and
objected to an earlier inference that they could be influenced in their reporting.
She asked whether water rates collected for the past 20 years have been only for
usage and not used for Capital improvements.
Mayor Pro Tempore Pennino recommended that Ms. Reichelt review the City's
budget prior to making comments or allegations.
Ms. Reichelt countered that under the Brown Act the public has the right to make
any comments they wish. She stated that she had made a previous attempt to
get information pertaining to the meeting, but it was not available. Ms. Reichelt
reiterated her earlier comments in opposition to the Redevelopment Plan and
stated that it would negatively impact all taxpayers.
Mr. Prima clarified that there is a Capital Improvement Program in the
water/wastewater utilities. Capital maintenance has been done at White Slough,
and water wells and pipes have been replaced, typically at the time street projects
have been done.
Mayor Nakanishi stated that there is a lack of billions of dollars for infrastructure
improvements throughout the country. The program being proposed by Public
Works is a long-range infrastructure project. Infrastructure improvements are
often postponed so that rates can be kept at a minimum.
In reference to Ms. Reichelt's earlier comment regarding information related to
Council meetings, City Manager Flynn noted that agendas and meeting packets
are available for review in the Library and the City Clerk's Office.
Public Portion of Hearing Closed
Council Member Hitchcock stated that when the PCE/TCE settlements come through as
anticipated, the $6 million previously deducted from the water fund should be returned to
reduce rates. The general fund should not be subsidized any more than necessary with
in -lieu utility tax transfers; however, the utility transfers are needed to operate the City and
it represents services and jobs.
Discussion ensued regarding the percentage for in -lieu utility tax transfers. City Manager
Flynn clarified that the percentage for water is being decreased from 20% to 12%, sewer
from 17% to 12%, and electricity remains unchanged at 12%.
8
Continued October 3, 2001
Mayor Pro Tempore Pennino asked that the Finance Department give Ms. Reichelt and
Mr. Ruhl copies of the City's budget. He also noted that agendas and Council packets
are available on the City's web site, as well as in the City Clerk's Office on Friday before
each regular Council meeting. He reported that he spent one and a half hours today
reviewing the water and wastewater rates with Mr. Prima and the City Manager. He
asked that a ten-year financial model be developed for water, sewer, and electricity. He
explained that he was not in favor of water meters at this time because it would cost $5 to
$10 million, and this money would be better used in repairing infrastructure. The last time
water rates were increased was 1995, and wastewater in 1991. He asked that the
purpose of the increase be identified as "infrastructure replacement" on the customer
statements.
MOTION (#1) / VOTE:
The City Council, on motion of Council Member Hitchcock, Howard second, adopted
Resolution No. 2001-231, pursuant to Section 13.08.010 of the Lodi Municipal Code,
providing for and establishing rates to be charged for water service, and further directed
staff to:
• add a line item on the utility bills identifying the water cost increase with a description
specifying its purpose for infrastructure replacement;
• prepare a long-range, ten-year financial model spreadsheet identifying water, sewer,
and electric expenses, including the dollar amount for the utility user tax over this
period; and
• at the time of settlement related to the PCE/TCE issue, repay the water fund for the
previous $6 million expenditure, using the balance remaining after priority takes.
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
MOTION (#2) / VOTE:
The City Council, on motion of Council Member Howard, Hitchcock second, adopted
Resolution No. 2001-232, pursuant to Section 13.12.240 of the Lodi Municipal Code,
providing for and establishing rates to be charged for sewer services, and further directed
staff to:
• add a line item on the utility bills identifying the wastewater cost increase with a
description specifying its purpose for infrastructure replacement; and
• prepare a Tong -range, ten-year financial model spreadsheet identifying water, sewer,
and electric expenses, including the dollar amount for the utility user tax over this
period.
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
H. COMMUNICATIONS
H-1 Claims filed against the City of Lodi — None
H-2 Reports: Boards/Commissions/Task Forces/Committees — None
H-3 Appointments — None
H-4 Miscellaneous — None
9
Continued October 3, 2001
I. REGULAR CALENDAR
1-1 "Authorize the City of Lodi to participate with the Salvation Army in funding a new
homeless shelter at 622 N. Sacramento Street"
Community Development Director Bartlam described the Salvation Army's new homeless
shelter site. Acquisition will cost $440,000, renovation $245,000, and additional
furnishings and fixtures are estimated at $35,000. The Salvation Army has requested City
funding of $250,000 over a five-year period, which will be used toward renovation costs.
Staff believes this would be a good investment for the City from the standpoint of assisting
the homeless population, and furthering downtown revitalization goals by relocating the
shelter to a better -suited location. Funding sources could include Electric Utility Public
Benefits Program and funds from the Redevelopment Agency. If approved, staff would
annually bring back the matter for Council consideration of the form and method of
payment for the funds.
Mayor Pro Tempore Pennino commented that he met with Mr. Bartlam and the City
Manager today to discuss this issue. He supported the shelter relocation and City
funding; however, he felt that the wording regarding funding sources should be removed,
as it has not yet been decided. The Council should allocate the funds annually through
the budget process.
In response to Council Member Hitchcock, Mr. Bartlam explained that 20% of all
redevelopment increment generated by the agency must go toward low and moderate
income housing, for which the Salvation Army's project qualifies.
Council Member Hitchcock concurred with Mr. Pennino regarding elimination of the
wording and dollar amounts for funding sources.
City Manager Flynn explained that under redevelopment rules, debt must be incurred in
order to have a tax increment. Without debt there would be no tax increment for
repayment. By putting funding for the Salvation Army's project through the
redevelopment process, it allows the possibility for repayment of City funds — as opposed
to merely deducting $50,000 per year from the General Fund.
Mr. Bartlam noted that staff is also working on a State Emergency Shelter Grant on behalf
of the Salvation Army.
Council Member Hitchcock stated that money does not have to be borrowed to get the tax
increment.
Mr. Bartlam replied that borrowing money and incurring debt are not synonymous. In
redevelopment, debt is used as a financing tool. Increment cannot be obtained without
being active.
City Attorney Hays explained that the increment stays in the county's coffers until the City
makes a claim on the money, after having done something that creates a need for the
money to flow to it.
Mayor Nakanishi stated that he voted against redevelopment for the reasons being
discussed, i.e., redevelopment is debt.
Mayor Pro Tempore Pennino asked Mr. Prima to ensure that bus transit routes will
include the new Salvation Army shelter location.
10
Continued October 3, 2001
PUBLIC COMMENTS:
• Annette Murdaca stated that she has been working on Lodi House, a women's
homeless shelter, for the past three to four years. Lodi House is not able to
service the needs of women who need emergency overnight housing. The new
Salvation Army shelter will have space for women and children.
• Suzanne Clay, Executive Director of Lodi House, spoke in support of the
Salvation Army's new homeless shelter. She stated that Lodi House can only
service five families at a time for a two- to three- month program, but cannot
provide emergency shelter as the Salvation Army can.
• Janice Roth, Salvation Army Board Chairman, commented that the Salvation
Army depends on donations. Escrow on the new shelter is slated to close in
November.
• Kevin Woods, Director of the Salvation Army Archway Shelter, conveyed the
apologies of new Commanding Officers in Lodi, Captains Frank and Susan
Severs, who wished to attend tonight's meeting, but were called out of town.
Mr. Woods reported that the Archway Shelter served 6,500 meals last month.
They hope to expand programs with the new facility.
MOTION/ VOTE:
The City Council, on motion of Mayor Pro Tempore Pennino, Howard second, authorized
the City of Lodi to participate with the Salvation Army in funding a new homeless shelter
at 622 N. Sacramento Street in the amount of $250,000 over a five-year period, or less,
with the funding source to be determined each year during the budget process. The
above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
1-2 "Authorization for City Manager to enter into a professional services agreement for
appraisal of City facilities"
Deputy City Manager Keeter reported that the City needs to update its database of
assets, properties, and facilities for insurance purposes and in anticipation of financing
and refinancing certain projects.
In reply to Council Member Hitchcock, Ms. Keeter explained that the City needs to show
that it has a certain threshold of appraised assets prior to getting a bond. It is anticipated
that $35 million worth of appraised assets will be needed in order to finance and refinance
projects.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Pennino, Howard second, authorized
the City Manager to enter into a professional services agreement with MAXIMUS for
appraisal of City facilities. The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
RECESS
At 10:30 p.m., Mayor Nakanishi called for a recess, and the City Council meeting reconvened at
10:40 p.m.
11
Continued October 3, 2001
I. REGULAR CALENDAR (Continued)
E-3 "Receive PCEITCE Report of Expenditures"
In reference to earlier discussions, Council Member Hitchcock reported that the City's
debt management policies state that no more than 60% of all Capital projects will be
funded from long-term financing and direct debt will not exceed 2% of the City's assessed
valuation. Finance Director McAthie confirmed that 2% of the City's assessed valuation
only applies to general obligation bonds; however, this is not clearly specified in the
budget document. Ms. Hitchcock suggested that this be clarified for future reference
purposes.
In regard to Item E-3, Council Member Hitchcock stated that the public should be updated
at least semi-annually to review PCE/TCE expenditures, who the money went to, and
what sources it was taken from. She had contacted Deputy City Manager Keeter earlier
to request that City Attorney Hays would be prepared to discuss the terms of the
agreement for the Lehman Brothers financing.
City Attorney Hays stated that he had not been advised regarding Ms. Hitchcock's request
for a report on this subject.
Council Member Hitchcock suggested that the item be continued until the next regularly
scheduled City Council meeting and be placed under the Regular Calendar.
City Manager Flynn explained that the PCE/TCE report covers expenditures over five
fiscal years and reflects to which companies, corporations, and businesses the money
was spent. It lists nine separate firms in which the City has incurred expenses and made
reimbursements. The total expenditures over a five-year period has been $11 million, of
which $6.3 million was paid out of the City's water fund. The remainder of expenditures
has been the proceeds from the Certificate of Participation (COP). He reminded Council
that approximately one and a half years ago the City incurred an obligation in which it
obtained a $15 million COP, which is a revolving fund. It was set up so that the City could
incur expenditures on behalf of the PCE/TCE program, and as money came in, it would
be paid back into the fund. Staff believes the program will be successful and the water
fund will be repaid. Money will also be used to make changes in the City's water system
to ensure that the public has safe drinking water.
Council Member Hitchcock reiterated her desire for this item to be continued to the next
meeting for discussion of expenditures, financing, terms, etc.
MOTION:
Mayor Pro Tempore Pennino made a motion to receive the PCE/TCE Report of
Expenditures. The motion died for lack of a second.
E-8 "Adopt resolution awarding contract for Outdoor Skate Park Facility, 1145 South Ham
Lane, to A.M. Stephens Construction Company, Inc., of Lodi ($222,150)"
Council Member Hitchcock rioted that the Council received a "blue sheet" (filed) on this
item and asked that when information is presented to Council just prior to the start of the
meeting, the item should be pulled from Consent and considered under the Regular
Calendar.
City Manager Flynn explained that there had been an error in calculation, which was
reflected on the "blue sheet." The project estimate is $265,000; the Capital Improvement
Fund is $190,000 (not $216,000 as previously reported); the Public Benefits Program
lighting is $18,750; and the Electric Utility Capital, 75% of the lighting, is $56,250.
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Continued October 3, 2001
Discussion ensued regarding whether it was appropriate to fund $56,250 from Electric
Utility Capital. Council expressed concurrence to charge this amount to the General Fund
Capital Improvement instead.
In response to Council Member Hitchcock, City Attorney Hays reported that the Skate
Park lawsuit is pending. A meeting with the parties has been scheduled for October 12, in
accordance with the California Environmental Quality Act's mandatory settlement
requirement. Mr. Hays stated that the Council is not faced with an injunction not to move
forward on the project.
Council Member Hitchcock stated that had she been present, she would have voted
against moving forward on this project when the issue came before Council after the
lawsuit was filed.
MOTION:
Mayor Pro Tempore Pennino made a motion to adopt Resolution No. 2001-233 awarding
the contract for Outdoor Skate Park Facility, 1145 S. Ham Lane, to A.M. Stephens
Construction Company, Inc., of Lodi, in the amount of $222,147.60 and amend the
funding/appropriation request to deduct $56,250 from the General Fund portion of the
Capital Improvement Program, rather than from the Electric Utility Capital, as specified in
the amended Council Communication (filed).
DISCUSSION:
Mayor Pro Tempore Pennino stated that if Ms. Hitchcock's rationale were used in all
instances, every time a lawsuit was filed, the City would cease conducting its business.
VOTE:
Council Member Howard seconded the above motion, which carried by the following vote:
Ayes: Council Members — Howard, Land and Pennino
Noes: Council Members — Hitchcock
Absent: Council Members — Land
E-10 "Adopt resolution opposing the Bay Area 2001 Ozone Attainment Plan due to lack of
mitigation of Bay Area air pollution blown to the Central Valley by prevailing winds"
At the request of Council Member Hitchcock, Public Works Director Prima reported that
the City was asked by the San Joaquin Valley Air Pollution Control District to support its
opposition to the Bay Area 2001 Ozone Attainment Plan. It has been documented that a
substantial amount of air pollutants from the Bay Area move into the Central Valley from
the prevailing winds.
City Manager Flynn added that because Bay Area pollutants are being blown into the
Valley, their air quality tests better, and they do not have the same standards imposed on
them that the Central Valley is faced with.
MOTION:
Council Member Hitchcock made a motion, Nakanishi second, to adopt Resolution No.
2001-234 opposing the Bay Area 2001 Ozone Attainment Plan due to lack of mitigation of
Bay Area air pollution blown to the Central Valley by prevailing winds.
DISCUSSION:
Mayor Pro Tempore Pennino asked staff to find out whether San Joaquin County
Supervisor Jack Sieglock is in agreement with the request to oppose the Bay Area's Plan.
In the event he disagrees, the matter should be brought back to Council for further
discussion.
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Continued October 3, 2001
MOTION — AMENDED / VOTE:
The above motion was amended to further direct staff to obtain San Joaquin County
Supervisor Sieglock's concurrence and bring the item back to Council for reconsideration
should Supervisor Sieglock be in disagreement. The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council members — None
Absent: Council Members — Land
VOTE TO CONTINUE WITH THE REMAINDER OF THE MEETING
The City Council, on motion of Mayor Pro Tempore Pennino, Hitchcock second, voted to continue
with the remainder of the meeting following the 11:00 p.m. hour. The motion carried by the
following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council members — None
Absent: Council Members — Land
REGULAR CALENDAR (Continued)
E-11 "Adopt resolution authorizing the City Manager to amend the ground lease agreement
with the Lodi Boys and Girls Club dated December 15, 1993, to include the lease of an
additional 112' by 52' parcel of land located at Blakely Park, 1050 S. Stockton Street"
In reply to Mayor Pro Tempore Pennino, Deputy City Manager Keeter reported that she
contacted the Boys and Girls Club and confirmed that they had gone door to door
notifying residents on Poplar Street to Central Avenue, on Washington Street from
Watson Street to Kettleman Lane, and on the side streets to Central Avenue, regarding
their proposal for the property. Residents were very supportive of the proposal.
MOTION:
Mayor Pro Tempore Pennino made a motion to adopt Resolution No. 2001-235
authorizing the City Manager to amend the ground lease agreement with the Lodi Boys
and Girls Club dated December 15, 1993, to include the lease of an additional 112' by 52'
parcel of land located at Blakely Park, 1050 S. Stockton Street.
DISCUSSION:
Council Member Hitchcock stated that this item should not have been placed on the
consent calendar because it had not been previously discussed with Council. She asked
for a summary on the proposed amendment to the ground lease agreement.
Ms. Keeter stated that the Lodi Boys and Girls Club has a ground lease with the City of
Lodi. The City leases the ground to the Club, and the Club constructed the building.
They are proposing to submit an application through the Community Development Block
Grant Program to construct a concrete slab for the purpose of having an outdoor area for
tables, games, etc., equipment of which would be rolled back into the facility after hours.
Two underutilized horseshoe pits would be removed to make room for the concrete slab.
VOTE:
Council Member Hitchcock seconded the above motion, which carried by the following
vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
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Continued October 3, 2001
E-12 "Adopt resolution approving installation of no -parking zones for left -tum pockets on Turner
Road, in the vicinity of California Street/Edgewood Drive"
Mayor Pro Tempore Pennino referenced a letter Council received from Barbara Vallarino
(filed) requesting that the length of the transition area be decreased from 97 feet to 80
feet.
Council Member Hitchcock pointed out that this was another controversial item that
should not have been placed on the Consent Calendar and recommended that staff
review the guidelines for Consent Calendar items as submitted by the City Clerk at a
previous City Council meeting.
In response to Mayor Pro Tempore Pennino, Public Works Director Prima indicated that
Ms. Vallarino's request could be accommodated.
In reply to Council Member Howard, Mr. Prima stated that if the requested change were
made, it would need to be done on both sides of the street.
PUBLIC COMMENTS:
• Phillip Robertson agreed with Ms. Hitchcock that this item should not have been
placed on the Consent Calendar. He had been expecting to come to a public
hearing to discuss the issue, prior to it being brought to Council for a decision.
He stated that he has lived on Turner Road since August 1998 and has seen
several accidents. He believed that the speed limit is too high. Motorists
attempting to make a left turn are not correctly judging the speed of oncoming
traffic. Turn lanes will not solve the problem. The speed limit should be
decreased until such time as a traffic signal is installed.
In response to Mayor Nakanishi, Mr. Prima stated that staff is conducting a thorough
review of upcoming Capital needs and funding issues. There are many demands on the
street fund at this time. A traffic signal on this area of Turner Road could be three to
seven years away. Mr. Prima stated that decreasing the speed on Turner Road would not
change the accident pattern.
City Manager Flynn stated that staff would be bringing the street light issue back to
Council to provide an opportunity to change the priorities if desired.
MOTION:
Mayor Pro Tempore Pennino made a motion, Hitchcock second, to adopt Resolution No.
2001-236 approving installation of no -parking zones on Turner Road in the vicinity of
California Street/Edgewood Drive, to accommodate the installation of left -turn pockets,
and further direct staff to amend Exhibit A of the resolution to accommodate one parking
space in front of the property located at 419 W. Turner Road
DISCUSSION:
Council Member Hitchcock stated that staffs recommendation is reasonable in this
particular instance; however, she did not want to set a precedence of voting in favor of
similar matters in the future.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Pennino and Mayor Nakanishi
Noes: Council Members — None
Absent: Council Members — Land
15
Continued October 3, 2001
J. ORDINANCES
None
K. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
• Council Member Howard reported that she attended the Northern California Power Agency
(NCPA) conference last week and found it very interesting. There were a number of
representatives in attendance from throughout the state, individuals representing the power
exchange, and other municipally -owned power companies. Updates were given regarding the
Federal Energy Regulatory Commission, Pacific Gas and Electric, and Southern California
Edison. She thanked all representatives from NCPA for hosting the conference, as well as
local utility representatives.
• Council Member Hitchcock thanked the Council and staff for tonight's discussion. She stated
that public trust is built by openly discussing all issues.
• Mayor Pro Tempore Pennino noted that in the last budget, the Council approved additional
funding for increased Library hours of operation. It was his understanding that this was not
going to move forward, and he asked that the matter be placed on a future Council agenda to
explain why.
City Manager Flynn replied that there has been a delay due to the obligation to meet and
confer with the union regarding the change in hours of operation. Negotiations are currently in
progress.
Council Member Hitchcock noted that the addition of Library staff was contingent on the
increased hours of operation. The staff should not be added if the hours are not increased.
• Mayor Nakanishi reported that approximately ten months ago he attended a conference in
Reno on the subject of weapons of mass destruction. Since then he has been assured by the
City Manager, Chief of Police, and Fire Chief that the City of Lodi is prepared for such
incidents. An emergency preparedness program has been planned for April of next year.
L. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
• City Manager Flynn announced that it is Council Member Hitchcock's birthday tonight.
Council Member Hitchcock thanked her husband for the balloons and singing telegram
delivered earlier in the meeting.
City Manager Flynn thanked Council Member Howard for participating in the Celebration on
Central event, which took place last weekend. He also announced that $4 million was
received from the state today for the Police Department and it has been deposited in the
bank.
Discussion ensued regarding Council meeting dates for the months of November and
December. The consensus of the Council was to leave the regular meeting dates and times
unchanged as long as a quorum will be in attendance.
Mr. Flynn also provided the following information:
1. There was a recent article in the Wine Enthusiast that highlighted Lodi.
2. The ribbon cutting for Elm Street is scheduled for November 15.
3. Grass at the Katzakian Park has grown in and is being mowed.
4. Flu shots are available free of charge for City employees.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
11:43 p.m.
ATTEST:
Susan J. Blackston
City Clerk
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