HomeMy WebLinkAboutMinutes - October 16, 2002LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, OCTOBER 16, 2002
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of October 16, 2002 was called to order by Mayor
Pennino at 6:18 p.m.
Present: Council Members — Hitchcock, Howard, Land, and Mayor Pennino
Absent: Council Members — Nakanishi
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; City of Lodi vs. Williams -
Anderson, et at , San Joaquin County Superior Court Case No. CV 426433
C-3 ADJOURN TO CLOSED SESSION
At 6:18 p.m., Mayor Pennino adjourned the meeting to a Closed Session to discuss the above
matter.
The Closed Session adjourned at 6:40 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:02 p.m., Mayor Pennino reconvened the City Council meeting, and City Attorney Hays
disclosed the following action.
In regard to Item C-2 (a), there was no reportable action taken by the City Council.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of October 16, 2002 was called to order by Mayor Pennino at
7:02 p.m.
Present: Council Members — Hitchcock, Howard, Land, Nakanishi, and Mayor Pennino
Absent: Council Members — None
Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston
B. INVOCATION
The invocation was given by Natalie Reyes, representative of the Baha'i.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Pennino.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 (a) Mayor Pennino presented the Community Improvement Award to Community
Improvement Manager Joseph Wood on behalf of Anthony and Denise Mora in
recognition of the improvements they made to the property located at 405 %z E. Elm
Street.
D-2 (a) Mayor Pennino presented a proclamation to Lodian and breast cancer survivor, Beverly
Lacy, and Marsha Fitzgerald, representing the American Cancer Society, in honor of the
October 20, 2002 6'h annual Making Strides Against Breast Cancer walk.
D-2 (b) Mayor Pennino presented a proclamation to Tamma Adamek, Community Chairperson,
representing the Women's Center of San Joaquin, proclaiming the month of October
2002 as "Domestic Violence Awareness Month" in the City of Lodi.
Continued October 16, 2002
D-2 (c) Mayor Pennino presented a proclamation to Tea Silvestre, City of Lodi Arts Coordinator,
proclaiming the month of October 2002 as "National Arts and Humanities Month" in the
City of Lodi.
ADDED Mayor Pennino presented a proclamation to Paula Beck, President of the Business and
Professional Women's Association, proclaiming October 14 to 18, 2002 as National
Business and Professional Women's Week in the City of Lodi.
D-3 (a) Mayor Pennino presented the TOPPS (Targeted Opportunities to Prevention Pollution in
San Joaquin County) Environmental Excellence Award for 2001 to Kathy Grant and
student representatives of the City of Lodi's "Storm Drain Detective" Program.
D-3 (b) Katie Wagenman, member of the Greater Lodi Area Youth Commission, acknowledged
the Teen of the Month, Meghan Cook from Lodi High School, and reported on the
commission's activities and accomplishments.
D-3 (c) John Stroh, Manager of the San Joaquin County Mosquito & Vector Control District,
reported that the West Nile Virus is a mosquito -borne disease that has the ability to
migrate rapidly. It is anticipated that the virus will reach San Joaquin County next year.
The District has worked with the San Joaquin County Agricultural Commissioner in
developing a response plan for the anticipated arrival of Africanized honey bees migrating
north from southern California. Measure R, which is on the November 5 ballot, is the
District's proposed special tax designed on a per parcel basis for taxable parcels only. If
approved by the voters it will be used for continued operations with regard to District
services, as well as enhancing the surveillance and control programs.
Council Member Land noted that he spent an hour with Jack Fiori (Lodi's appointed
representative to the District) discussing Measure R. Mr. Fiori also provided him with a
copy of the District's budget. Most of the increase in the budget was due to liability and
workers compensation insurance and the cost of chemicals. He voiced support for
Measure R.
Mayor Pro Tempore Hitchcock stated that the tax only amounts to $3.89 a year per
parcel, which is a small amount for the benefits the District provides. She reported that
the District has not had an increase in twenty years and suggested that the Mayor sign a
letter on behalf of the Council in support of Measure R.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Mayor Pro Tempore Hitchcock, Land second, unanimously approved the following items
hereinafter set forth except those otherwise noted:
E-1 Claims were approved in the amount of $6,083,607.77 and $3,378,693.37.
E-2 The minutes of September 4, 2002 (Regular Meeting), September 10, 2002 (Shirtsleeve
Session), September 17, 2002 (Shirtsleeve Session), September 17, 2002 (Special
Meeting), September 18, 2002 (Regular Meeting) as amended, September 24, 2002
(Shirtsleeve Session), September 24, 2002 (Special Meeting), October 1, 2002
(Shirtsleeve Session), October 1, 2002 (Special Meeting), October 2, 2002 (Regular
Meeting), October 8, 2002 (Shirtsleeve Session), and October 8, 2002 (Special Meeting)
were approved as written.
E-3 Received the report of the sale of surplus vehicles.
E-4 Approved of the disposal of surplus Motorola Minitor Pagers and Chargers.
E-5 Approved specifications for 20,000 feet of #1/0 underground triplex conductor for the
Electric Utility Department and authorized advertisement for bids.
2
Continued October 16, 2002
E-6 Approved the specifications for 20,000 feet of #2/0 jacketed 15kV concentric neutral
underground electrical cable and authorized advertisement for bids.
E-7 Approved the preparation and distribution of a request for proposals for security services
at Hutchins Street Square and authorized advertisement for bids.
E-8 Adopted Resolution No. 2002-197 awarding the bid for the purchase of 25 Holophane
PrismasphereO globe -style luminaires to the low bidder, Wille Electric Supply Company,
of Stockton, in the amount of $13,499.73.
E-9 "Adopt resolution awarding the contract for installation of streetlights on Streetlight
Completion Project Phase III to Clayborn Contracting Group, Inc. ($662,259)" was
removed from the Consent Calendar and discussed and acted upon under the
Regular Calendar
E-10 Accepted the improvements under the "Hale Park Court Resurfacing, 209 East Locust
Street" contract.
E-11 Accepted the improvements under the "California Army National Guard Building Retrofit
Work, 333 North Washington Street' contract and directed the City Engineer to file a
Notice of Completion with the County Recorder's office.
E-12 Accepted the improvements under contract for landscape and irrigation installation on the
South Hutchins Street median.
E-13 Accepted the improvements under the "Reroof Project, 100 East Pine Street (New
Shanghai Building)" contract, for removal and installation of built-up and tile roofing,
including gutter replacement.
E-14 Adopted Resolution No. 2002-198 accepting the improvements under the "Asbestos
Abatement, 100 East Pine Street" contract, and, in accordance with the Contract Change
Order Policy, notification of change orders approved by the City Manager for this project,
and appropriating $20,880 additional funds for the project.
E-15 Accepted the improvements under the 'White Slough Control Building Reroof, 12751
North Thornton Road" contract, for the removal of the existing built-up roofing, and
installation of new single -ply roof system.
E-16 Adopted Resolution No. 2002-199 accepting the development improvements for Century
Meadows Three, Unit No. 5, Tract No. 2976.
E-17 Adopted Resolution No. 2002-200 accepting the development improvements for Arcadia
Place, Tract No. 3147.
E-18 Adopted Resolution No. 2002-201 accepting a portion of the development improvements
for Tienda Place, Unit No. 1, Tract No. 3141.
E-19 Approved the final map for Tienda Place, Unit No. 2, Tract No. 3198, and directed the City
Manger and City Clerk to execute the Improvement Agreement and map on behalf of the
City.
E-20 Adopted Resolution No. 2002-202 approving the applications for two Transportation
Planning Grants from the California Department of Transportation (Caltrans) for the Lodi
Avenue Community Enhancement Project and the Central Avenue/Tokay Street Corridor
Bike and Ped Circulation Enhancement Project and coordinating efforts to submit
applications with the San Joaquin Council of Governments for Transit Grants from
Caltrans; and adopted Resolution No. 2002-203 supporting the application for a REMOVE
grant from the San Joaquin Valley Air Pollution Control District to construct a Park -and -
Ride Lot.
Continued October 16, 2002
E-21 "Adopt resolution providing financial support for San Joaquin County's Recycling Market
Development Zone ($1,533 per year)" was removed from the Consent Calendar and
discussed and acted upon under the Regular Calendar.
E-22 "Adopt resolution authorizing additional City participation in the cost of the Harney Lane
Lift Station Project, and further appropriating funds for the project; and adopt resolution
certifying the Negative Declaration as adequate environmental documentation for the
Harney Lane Lift Station Project' was removed from the Consent Calendar and
discussed and acted upon under the Regular Calendar.
E-23 Authorized the City Manager to sign the service/maintenance agreement for current police
computerized information systems with Data 911 and authorized payment using funds
previously approved in the 2002-03 police budget ($44,502.40).
E-24 Adopted Resolution No. 2002-204 accepting funds from the State Citizens Option for
Public Safety (COPS) Grant and accepting State Supplemental Law Enforcement
Services Fund (AB 1584 COPS Frontline), estimated at $117,987.
E-25 Adopted Resolution No. 2002-205 approving the destruction of certain records retained by
the Public Works Department.
E-26 Approved year 2002 amendments to Conflict of Interest Code for publication and public
comments (Government Code §87306.5).
E-27 Adopted the following resolutions authorizing the City Manager to provide funding for the
Public Benefit Programs shown below:
• Resolution No. 2002-206 for Valley Industries Lighting Retrofit/Demand-side
Management Project in the amount of $39,794; and
• Resolution No. 2002-207 for the Right Way/Old Farmers & Merchants Bank building
Demand-side Management Project in the amount of $7,619.83.
E-28 Set public hearing for November 6, 2002 to consider the Planning Commission's
recommendation of approval to the City Council for a General Plan Amendment and
Prezoning for 1243, 1301, 1335, and 1477 East Harney Lane; the General Plan
Amendment is from PR, Planned Residential to LDR, Low Density Residential, and the
Prezoning from San Joaquin County AU -20 to R-2, Single Family Residential; the request
also includes a recommendation that the City Council certify Negative Declaration
ND -02-04 as adequate environmental documentation for the project and initiate
annexation of the properties into the City.
E-29 Set public hearing for November 6, 2002 to consider the Planning Commission's
recommendation of approval to the City Council for an Annexation, General Plan
Amendment, and Prezoning for 13814 Lower Sacramento Road and a four -acre portion of
302 East Highway 12; the General Plan Amendment for 13814 Lower Sacramento Road
is from PR, Planned Residential to LDR, Low Density Residential, and the prezoning from
R -VL (County), Residential Very Low Density to R -LD, Residential Low Density; the
General Plan Amendment for 302 East Highway 12 is from PR, Planned Residential to
PQP, Public/Quasi Public, and the prezoning from AU -20 (County), Agriculture -Urban
Reserve to PUB, Public; the request also includes a recommendation that the City
Council certify Negative Declaration ND -02-07 as adequate environmental documentation
for this project.
E-30 Set public hearing for November 6, 2002 to consider the appeal of Ann Cerney regarding
the decision of the Planning Commission to approve a 33 -unit low density residential
Development Plan and recommend that Council: 1) certify Negative Declaration ND -02-05
as adequate environmental documentation for the project on 5.68 acres located at the
southwest corner of the intersection of Lower Sacramento Road and Taylor Road, and 2)
adopt the 2002 Growth Management Allocations.
4
Continued October I6, 2002
E-31 Set public hearing for November 6, 2002 to consider adopting the 2001 California
Building, Plumbing, Mechanical, Electrical, and Fire Codes.
E-32 Adopted Resolution No. 2002-208 authorizing the City Manager to execute a contract with
Lodi Tokay Rotary Club for the Lodi Kids' Night Out; and appropriated $18,000 for the
event.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
• Tony Alegre, President of Boosters of Boys and Girls Sports (BOBS), commended the City for
its part in the renovation at Zupo Field. He presented a check in the amount of $8,000 to the
City on behalf of the BOBS. He noted that the BOBS also donated over $1,500 in services
toward the Zupo Field project. He thanked the Mayor his work in providing programs for the
youth of the community, and reported that 5,000 youth each month participate in sports
programs.
Parks and Recreation Director Baltz reported that the BOBS is also considering replacing the
scoreboard with a wireless system, which has a value of several thousand dollars. He
acknowledged Mr. Alegre for providing trucks at no cost to the City for three days of work
removing sod.
Camille Green urged Council Members, City staff, and concerned citizens to attend a
conference on October 19 in San Jose, which will cover the topic of California redevelopment
agencies' waste of public money by the billions, destroyed neighborhoods, displaced
homeowners, and the shutting down of small businesses. Sponsors of the conference are the
Municipal Officials for Redevelopment Reform. She expressed concern about private
meetings taking place between property owners that had protested the Redevelopment Plan
and City staff who verbally promised funds from the Redevelopment Agency if they would no
longer oppose the implementation of the Plan in Lodi. She viewed such an act as criminal
and suggested that the matter be placed on a future Council agenda for discussion.
Mayor Pennino informed Ms. Green that the City Manager would be attending the conference
on behalf of the City.
Council Member Land explained to Ms. Green that under the Redevelopment Plan 20% of the
funds collected must be used for affordable housing. Staff was merely informing the property
owners what was available to them.
John Johnson thanked the City for the improvements to Zupo Field and the BOBS for its
contribution. He hoped that the City would be able to find money in the budget to maintain the
field. He asked: 1) how much has been allocated for the design of the proposed indoor sports
center, the aquatics facility, and DeBenedetti Park; and 2) if the plans for these three projects
were completed, could they be funded today or even within the next two years. He stated that
if the answer to the second question is no, then as a taxpayer he would urge the Council to
stop the design work, as there is no reason to spend $2.5 million on design without knowing
how to pay for the projects. He thought that plans for the pool were supposed to be on this
Council agenda, but the item had been removed.
Mayor Pennino replied that the plans for the aquatics facility would be on the next Council
agenda.
Council Member Howard responded that it would be a mistake to stop the design process
because having project designs complete increases the likelihood of obtaining funding. She
cited the current Library as an example. Although there was questionable funding on the
project, the design phase proceeded, and when the State allocated monies to be used for
libraries it gave priority to cities that had a design in progress. In addition, Parks and
Recreation has been allocated funding from Proposition 12. In answer to Mr. Johnson's
second question, she stated that if all three projects came before Council at the same time for
construction next year it would not be feasible; however, planning to build them over a series
of years is reasonable.
5
Continued October l6, 2002
Mayor Pro Tempore Hitchcock shared Mr. Johnson's concerns, although she could also see
the merits of moving ahead and having plans in place should funding become available. She
asked Mr. Johnson if he believed the design work should be discontinued now because in
several years there may be different needs, which could substantially change the plans.
Mr. Johnson used the analogy of someone designing a house without knowing how to pay for
it, which he felt was illogical.
Mayor Pro Tempore Hitchcock commented that a recreation bond measure could be another
avenue for funding the projects.
Mayor Pennino expressed his optimism that the projects will be built. He noted that according
to a timeline spreadsheet he created, the projects progression continue to coincide with his
projections.
Council Member Land recalled that financing the new police building was also uncertain
initially; however, the design phase moved forward, funds were set aside in anticipation of
debt financing, and an opportunity arose when the State had surplus funds, out of which the
City was successful in obtaining $4 million for development of the project. In addition, it had
originally been estimated at $25 million and through value engineering the project decreased
to $17 million.
In answer to Mr. Johnson's first question, Parks and Recreation Director Baltz reported the
following:
➢ $574,536 has been allocated, appropriated, and authorized by Council for the design of
DeBenedetti Park — $246,180 has been expended to date and $100,000 worth of invoices
are anticipated to arrive soon;
➢ $542,180 has been authorized and allocated for the design of the Aquatics Complex —
$117,959 has been expended to date;
➢ $1,029,329 has been authorized and allocated for the design of the Indoor Sports Center
— $166,789 has been expended to date. In addition there have been some expenses
associated with soil testing, public meetings, and property acquisition, which totals over
$123,000.
Council Member Howard noted that the project design percentage, generally between 6% to
9%, is part of the projected cost of the projects.
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 Pennino called for the continued Public
Hearing to consider appeal from Neumiller & Beardslee, on behalf of Legends Unlimited,
regarding the Planning Commission's decision to revoke Use Permit No. 99-02 for
Legends Unlimited.
Mayor Pennino announced that a letter had been received from Neumiller & Beardslee
(filed) requesting that the subject public hearing be continued to the regular City Council
meeting of December 18, 2002.
MOTION:
Council Member Howard made a motion, Land second, to continue the public hearing to
December 18, 2002 to consider appeal from Neumiller & Beardslee, on behalf of Legends
Unlimited, regarding the Planning Commission's decision to revoke Use Permit No. 99-02
for Legends Unlimited.
211
Continued October 16, 2002
DISCUSSION:
At the request of Mayor Pro Tempore Hitchcock, Community Development Director
Bartlam reported that the sale of Legends Unlimited is now in escrow and the business
has closed its doors. The transfer of the alcoholic beverage license will be completed
within 60 days, at which time the new owners will have the benefit of the license. Mr.
Bartlam expected that by mid-December this appeal will be withdrawn because there will
be new owners of the business. The conditions under which the Use Permit was granted
a number of years ago will be transferred to the new owners.
VOTE:
The above motion carried by a unanimous vote.
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 Pennino called for the Public Hearing to
consider Reimbursement Agreement #RA -02-02 for public improvements constructed
with the Sunwest Marketplace Shopping Center.
Sharon Welch, Senior Civil Engineer for Development Services, explained that the
purpose for the public hearing is to consider a reimbursement agreement request from
the developer of the Sunwest Marketplace Shopping Center. The improvement for which
reimbursement has been requested includes underground utilities, water, sewer, and
storm drain extensions across Lower Sacramento Road to serve the property to the west.
Also a portion of the cost is for the installation of a traffic signal to provide traffic control at
the driveway entrances to the Sunwest Marketplace Shopping Center, as well as the
proposed Vintners Square Shopping Center on the west. The Sunwest project also built
out the intersection at Kettleman Lane and Lower Sacramento Road to its ultimate
configuration. In conjunction with the intersection work, as well as the traffic signal to the
north, some roadway widening on the west side of Lower Sacramento Road and the north
and south sides of Kettleman Lane was required to complete the project. Affected
property owners have been notified and no responses were received.
Hearing Opened to the Public
None.
Public Portion of Hearina Closed
MOTION / VOTE:
The City Council, on motion of Council Member Nakanishi, Land second, unanimously
approved the Reimbursement Agreement #RA -02-02 for public improvements in Lower
Sacramento Road and Kettleman Lane, and associated public utilities constructed with
the Sunwest Marketplace shopping center.
RECESS
At 8:15 p.m., Mayor Pennino called for a recess and the City Council meeting reconvened at 8:30
p.m.
G. PUBLIC HEARINGS (Continued)
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 Pennino called for the Public Hearing to
consider electric rate changes for all classes excluding Residential SHARE Program and
Residential Medical Rider due to California Independent System Operator (CAISO)
charges.
City Manager Flynn explained that the action requested under this item is to introduce the
ordinance, which if approved, will come back to Council for adoption on November 6. He
reported that staff has been working on this matter for three months looking at all options
Continued October 16, 2002
and ways to reduce costs of the Utility, however, there have been significant increases
associated with power. He stated that Electric Utility Director Vallow and his staff have
done an outstanding job to ensure that citizens of Lodi get the best rates possible.
Mr. Vallow explained that electric rates need to be restructured to meet the base rate
change of approximately 4.6%, which is primarily due to increased transmission costs.
The Utility now goes through the California Independent System Operator (CAISO) for
transmission services. He stated that the Market Cost Adjustment (MCA) is also being
restructured and the majority of customers will see a rate reduction in the next six months.
The action requested under this item is critical to an upcoming bond transaction that is
intended to save a considerable amount of money. He stated that most fixed-income
seniors will be eligible for an additional discount of 5%. Most commercial rates will not
increase this fiscal year. The largest customer's rates may increase up to 10%. Mr.
Vallow reported the Utility has cut its operating costs for the third year in a row and are
operating with two crews, rather than the four budgeted. Management staffing is 30%
lower than budgeted.
There are two components to rates: 1) base rates, which cover ordinary recurring utility
costs, and 2) the MCA, which covers extraordinary costs associated with bulk power
purchases. Base rates need to increase primarily due to the CAISO. The MCA is
decreasing to partially offset the base rate increase. The MCA change will be brought
back to Council at the time of final action on the rate ordinance. The savings from the
Calpine contract restructuring has already been budgeted, so the magnitude of the rate
increase is not as great as it otherwise would have been. He reported that the new
transmission costs are $2 million more annually than the Utility had paid before. The
initiation fee is $1.5 million this year. Residential customers are consuming 34% of the
electricity and paying 40% of the cost. Small and medium commercial businesses are
consuming 35% of the electricity and paying 39% of the cost, while larger businesses are
consuming 29% of the energy and paying 19% of the cost.
Mr. Vallow reported that over a period of two months the Home Comfort Discount
program returned $340,000 back to rate payers. Included in the proposal before Council
is a rate reduction for 62% of customers from zero to 2%. Individuals 65 years or older on
fixed incomes of $45,000 or less a year qualify for an additional 5% discount. There will
be no change in rates for small to medium customers. Rates for G-2 and large industrial
customers will increase 10%. Mr. Vallow stated that Lodi's electric rates continue to be
substantially below the PG&E benchmark.
In answer to Council Member Howard, Mr. Vallow stated that contract customers include
Apache Plastics, Fairmont Signs, Cottage Bakery, and Lodi Memorial Hospital. The Utility
has extended contract rates in the past to businesses that were expanding. He estimated
that the number of customers taking advantage of low-income programs has doubled and
it represents approximately 1.5% of total revenue.
Boris Prokop, consultant from Borismetrics, added that in fiscal year 2002 the various
discounts for medical rider income, etc. totaled $400,000 in revenue, while the overall
revenue from the rest of the residential customers was approximately $15 million.
In reply to Mayor Pro Tempore Hitchcock, Mr. Vallow stated that the proposed rate
increase should recover $1.7 million annually.
Mayor Pro Tempore Hitchcock stated that the in -lieu utility tax transfer to the general fund
had been projected at $4 million a year since 1994. Since then it has increased to $5.5
million. She pointed out that there would be less of a rate increase needed if the extra
$1.5 million was not being transferred and expressed support for keeping the in -lieu utility
tax transfer at a flat $4 million a year.
Mayor Pennino suggested that the in -lieu utility tax transfer policy be considered during
the 2003-05 budget discussions.
8
Continued October I6, 2002
Council Member Nakanishi concurred with Ms. Hitchcock noting that, in essence, the City
is receiving dividends from the Utility of $1.8 million a quarter. He expressed opposition
to rate increases and suggested that the Utility decrease the in -lieu transfer and cut other
costs such as the $4 million street light program and bring a revised proposal back to
Council at its next meeting.
Mr. Vallow replied that many programs, such as the street light project, are fully funded
with capital dollars in an escrow account. He emphasized that the rate proposal will not
affect 80% of the Utility's customers.
Council Member Land commented that the State did not handle the electric crisis in an
appropriate manner and they are forcing the City to be part of the CAISO. PG&E owes
Lodi millions of dollars through its bankruptcy and left the City without any choice other
than to raise rates. He expressed support for considering an in -lieu transfer policy
change and suggested decreasing the percentage from 12% to 11% for two years. In
addition, he stated that Electric Utility should eliminate the practice of sponsorships and
advertising in the newspaper. He asked what effect it would have on the re -issuance of
the bond if Council did not approve the rate increase proposal.
Mr. Vallow replied that it is beneficial to show rating agencies that the City is making
concerted efforts to cover costs. Not approving the rate increase proposal could result in
$250,000 to $500,000 a year in additional costs.
Mayor Pennino stated that he spent a great deal of time with staff reviewing the rate
increase proposal and he was convinced that it was needed. He agreed that the in -lieu
transfer policy should be revisited and suggested that Council direct the City Manager to
determine the impact a decrease would make on the general fund and bring back his
findings to Council, noting that it could be considered immediately, as well as during the
2003-05 budget discussions. He recalled that Council voted 3-2 on January 2, 2002,
(Pennino and Hitchcock dissenting), to make the $900,000 in -lieu transfer to the general
fund. He reported that the transfer has never been made, and it needs to occur as was
voted on.
In response to Council Member Land's earlier comments, City Manager Flynn reminded
the Council and public that PG&E is a very important utility to the State. They provide
Lodi's gas services and do an outstanding job. He stated that part of the reason it is in
financial difficulty is due to Public Utility Commission policies, which forced it to sell power
at a cost less than what it was buying it for. PG&E does owe Lodi $3.2 million and if the
City were able to recover the money, it could likely recommend further rate cuts.
In answer to Council Member Howard, Mayor Pennino stated that he no longer has a
conflict of interest on electric issues as a PG&E employee because deregulation has
ended. In addition, he has a ruling from the Fair Political Practices Commission, which
states that he can participate in rate discussions.
Council Member Nakanishi indicated that he would like to make a motion that Council
reconsider the $900,000 in -lieu transfer.
Following confirmation from the City Attorney, Mayor Pennino stated that an item to
reconsider the matter can be placed on a future agenda if requested. Council Member
Nakanishi asked that it be done.
In reply to Mayor Pro Tempore Hitchcock, Mr. Vallow explained that the Purchase Power
Cost Adjustment (PPCA) is similar to the MCA, although it has an automatic feature. He
stated that the Utility is not using it.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
W
Continued October 16, 2002
MOTION:
Council Member Land made a motion, Howard second, to introduce Ordinance No. 1718
approving the revision to the electric rate changes for all classes excluding Residential
SHARE Program and Residential Medical Rider due to CAISO charges, to become
effective December 6, 2002.
DISCUSSION:
Mayor Pennino gave direction to staff to bring back the in -lieu transfer matter for
reconsideration, as was previously requested by Council Member Nakanishi. In addition,
he asked that the policy issue on the in -lieu transfer amount to the general fund be
brought to Council for consideration.
Mayor Pro Tempore Hitchcock expressed opposition to the motion, as she preferred that
the matter be postponed to allow staff an opportunity to bring back a revised rate structure
based on a decrease in the in -lieu transfer to the general fund as has been discussed.
City Manager Flynn warned that if Council does not approve this item it will negatively
affect the City's presentation to the rating agencies tomorrow, the result of which could be
increased costs that will, in turn, drive rates up.
Mr. Vallow added that should the Council decide to decrease the in -lieu transfer, it would
be reflected through lowering of the MCA, not the base rates.
Council Member Land urged Ms. Hitchcock to vote in favor of the motion for the reason
expressed by Mr. Flynn.
City Attorney Hays reminded Council that at a past meeting it authorized staff to make
arrangements to buyout the Calpine agreement, which presents an opportunity for the
City to save $2 million. The item now under consideration addresses the City's costs and
recognizes the reduction that will be accomplished through the Calpine transaction. In
order to complete that transaction it is necessary to do the financing that has been
discussed this evening. If the City does not move forward to accomplish the financing as
planned, the end result would be that a rate increase of greater magnitude would need to
be put in place to meet the costs under the current Calpine agreement.
Mayor Pro Tempore Hitchcock expressed displeasure that a month ago during a
presentation by Electric Utility Director Vallow, Council voiced concern about the in -lieu
transfer to the general fund, and now one day before the transaction is to take place
Council is not presented with options.
Council Member Howard expressed support for the motion. She believed that the base
rate increase was justified. When Council originally considered an electric rate increase
she agreed with staff's recommendation that businesses would not be charged first. As
costs are becoming more expensive, it is important that rate payers participate fairly and
equally, which she believed this rate increase proposal accomplishes.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Howard, Land, and Mayor Pennino
Noes: Council Members — Hitchcock and Nakanishi
Absent: Council Members — None
H. COMMUNICATIONS
H-1 Claims filed against the City of Lodi — None
H-2 The following reports were presented to the City Council:
a) Planning Commission report of August 14, 2002
b) Planning Commission report of September 12, 2002
C) Planning Commission report of September 25, 2002
10
Continued October 16, 2002
H-3 Appointments — None
H-4 Miscellaneous
a) City Clerk Blackston presented the cumulative Monthly Protocol Account Report
through September 30, 2002.
REGULAR CALENDAR
1-1 "Approve plans and specifications and authorize advertisement for bids for the new
Animal Services Facility, 500 South Guild Avenue"
City Manager Flynn explained that this project has been brought forward because it is at a
point where it can go to bid and it is within the funding limits that have been set aside.
The City does not currently have $11 million for DeBenedetti Park, $9 million for the
indoor sports center, nor enough money to fully fund the aquatics facility. Study on
renovations to the old public safety building have just begun. He outlined the following
funding issues:
➢ The City has received $12 million in Certificates of Participation.
➢ $4 million was received from the State toward the new police building.
➢ $4.5 million has been set aside.
➢ General facility impact fees total $1.1 million, of which $300,000 is available for the
proposed projects.
➢ The public safety building is $13 million, and $3.9 million has been set aside for
design.
Public Works Director Prima recalled that in June, Council approved the concept level
plans for the new animal shelter. Under consideration at this time is a request for
authorization to complete the plan and go out to bid. The plan presented this evening is
identical to what Council viewed in June, with the minor addition of a janitor's closet.
Mayor Pennino noted that Council has received phone calls from various veterinarians in
the community who would like to view the drawings.
Mr. Prima replied that the plans have been available for viewing since last June, and
development of the project had been ongoing for one year prior to that.
PUBLIC COMMENTS:
• Tony Alegre, representing the Boosters of Boys and Girls Sports, stated that if future
funding is uncertain, Council should remove this item from its agenda and prioritize all
the proposed projects.
Mayor Pennino noted that delays are due in part to the fact that land has not yet been
annexed or purchased for the aquatics facility, nor has all the land been acquired that
is needed for the indoor sports center.
Mr. Flynn pointed out that included in funding considerations is whether or not to
continue to set aside $1.5 million for financing given the future economic uncertainty.
If a measure to raise taxes to finance recreation projects is to be considered, it is
important to have conceptual designs of the projects completed for marketing
purposes. He noted that in addition to the proposed recreation projects is remodeling
of the old public safety building, the fire house, and the civic center parking structure.
Mayor Pennino stated that the City's general fund will be reviewed at the next regular
meeting.
• John Johnson, representing the Lodi Sports Foundation, commented that he sent an
e-mail message to Council on this topic (filed). He likened this situation to a horse
race, i.e. whichever project that was ready to go to Council first got funded. He
recalled that DeBenedetti Park was supposed to be done in 1990, the indoor sports
center in 1994, and Swimming Pool Task Force was appointed in 2000. He stated
that when Council originally prioritized projects the indoor sports center was on the list
11
Continued October 16, 2002
and the animal shelter was not, and it was later reversed when the list was revised.
Mr. Johnson recommended two options: 1) Table this item and prioritize all the
proposed projects; or 2) Take the $4 million that would be used for the new animal
shelter, stop design on the indoor sports center, scale back the DeBenedetti Park
design so that it is just a drainage basin, and build the aquatics facility with the
resultant $5 million. He noted that the Lodi Sports Foundation recommends option
one.
Mr. Johnson believed that if Council spends $4 million on the new animal shelter, that
none of the other recreational projects would be completed. He pointed out that if
Council is considering a tax measure to fund the proposed projects, it would be
advantageous to include the animal shelter in the group of projects so that a larger
community base would vote in favor of it.
Mayor Pro Tempore Hitchcock recalled that 15 years ago the animal shelter
expansion was listed on the impact fee report. She noted that a Council meeting had
been scheduled previously with the intent of prioritizing the proposed projects, but it
was decided not to do it, which she believed to be a mistake.
• Kathy Harring introduced herself as a volunteer of Animal Friends Connection (AFC).
She believed the public would be willing to subsidize recreation facilities, but they
would not contribute toward the welfare of homeless animals. She urged Council to
vote in favor of this item, as she felt that most animal shelters are "houses of death"
She quoted, "the morality of a community can be judged on how it treats is most
defenseless members."
• John Griffin supported the City constructing a functional animal shelter; however, he
believed what was being recommended was extravagant, particularly when
considering the current economic conditions. He suggested that the project be
scaled back and use remaining funds for youth recreation facilities. He asked Council
if the proposed projects will be funded and built within the next two to four years.
Mayor Pennino replied that Council is supportive of the proposed projects and is
moving forward with them. He warned Mr. Griffin about suggesting that the project be
scaled back, as the same argument could be made for all of the projects.
Bob Johnson, Chairman of the Parks and Recreation Commission, stated that he has
toured the current animal shelter and agrees that it needs help. In reference to
Ms. Hitchcock's comment about the previous Council meeting that had been
scheduled for the purpose of prioritizing projects, he noted that at that meeting the
Mayor presented a spreadsheet he had created, and during discussion he stated that
all the projects could be paid for out of the general fund over the next several years.
Contrary to that statement, at yesterday's Shirtsleeve Session the City Manager
expressed concern about the City's revenues. In addition, it appears that other
projects are now being discussed that will likely push the recreation projects "off the
chart," e.g. remodeling the old public safety building, the fire station, and civic center
parking structure. He believed it would be prudent for Council to put everything on
hold until the financing direction is determined. He reported that a premier builder in
the community had informed him that a nice custom home could be built for $110 a
square foot. He asked why the animal shelter facility costs twice that amount.
• Jane Neilson stated that she represents a German shepherd rescue group. Since the
summer of 2002 the group has found homes for 80 dogs from the shelter. She urged
Council to approve this item, as the current shelter is much too small.
• Sue Pixler recalled that at the special Council meeting on June 4, which was
scheduled to prioritize projects it was pointed out by Mr. Prima and Mr. Flynn that staff
cannot handle supervising all the major capital projects at the same time. In addition,
the School District is currently involved in several construction projects, and the
12
Continued October 16, 2002
community does not have enough local contractors to accommodate all the projects
at once, the end result of which would be higher costs. She objected to the
competition that has surfaced between the recreation projects and the animal shelter.
She emphasized that the animal shelter is a public safety function mandated under
State law. In response to Mr. B. Johnson's inquiry about square footage cost
differences she explained that public construction projects have substantially different
code requirements to adhere to than do private home constructions.
Council Member Nakanishi stated that he has always supported the animal shelter
project; however, he had been under the impression that there was consensus from
the stakeholders. During the past two days he has received phone calls from local
veterinarians who believe the design of the shelter is excessive.
Ms. Pixler reported that the Animal Shelter Task Force held well over 30 meetings
over the past two years, all of which were open and noticed under the Brown Act
regulations. One year ago all the local veterinarians were invited to a meeting, at
which the new animal shelter concept plans and services were discussed. She was
surprised to hear there was concern now, because at the meeting it was agreed to go
forward with the plan as presented. She believed fear of competition is unfounded,
as the shelter treatment room was designed to handle only shelter animals.
Barbara Steinheimer introduced herself as a member of the Animal Shelter Task
Force and AFC. Goals of the AFC include: 1) finding homes for homeless dogs and
cats in San Joaquin County; 2) educating the community; and 3) to get as many
animals spayed and neutered as possible. She explained that AFC has a partnership
with the Lodi Animal Shelter. The Maddies Fund grant can only be spent toward
costs of adopting, spaying, and neutering animals. Much of the money goes toward
people hired to run the program. AFC does not have funds to contribute toward the
construction of the animal shelter.
Council Member Howard questioned whether AFC is considering building its own
shelter facility. She expressed concern about the potential of having two animal
services structures in the same community. She asked whether it would be feasible
for AFC to work out of the new animal shelter and pool its resources, skills, and
staffing services, since its goals are very similar to the shelter's.
Ms. Steinheimer reported that AFC has approximately $31,000 in a building fund, and
confirmed that they would never be in competition with Lodi Animal Shelter. She
believed it would be feasible for AFC to operate out of the new animal shelter facility.
She urged Council to vote in favor of this item.
• Dr. Beth Klapstein, President of the Northern San Joaquin Veterinary Medical
Association, read a letter from California Veterinary Medical Association President
Dick Schumacher into the record:
"Over the past few years there has been a wonderful collaboration taking place in
your community between the local veterinarians, animal care givers, and
representatives from Maddies fund. This cooperative effort has been applauded
and is recognized on a national level as well as throughout the entire state of
California. Your community is one that is looked upon as a highly successful
model of how the veterinarians and local animal care givers can work together in
order to accomplish the goal to reduce the pet overpopulation program. The main
attribute of this type of program is the effective utilization of the current
veterinarian delivery system. When veterinarians and animal shelters work
together to provide the veterinary care for their community and the shelter
animals, it helps reduce the public funds that are necessary to build and develop
publicly owned veterinary hospitals. This in turn promotes the spirit of
cooperation as opposed to competition and will ultimately benefit the animals in
the community."
13
Continued October 16, 2002
Dr. Klapstein stated that everyone agrees that the new animal shelter needs a
medical treatment area and that all shelter animals need to be spayed or neutered
before, or soon after, being adopted. The concern that has been raised is whether
there is a need for a surgical suite dedicated to shelter animals when there are so
many facilities already available in the community. She stated that when performing
spay or neuter surgery on an animal, other issues can arise such as hernias or
growth of dew claws, which can be surgically addresses at the same time. If done at
the shelter, a decision would have to be made to either perform the surgical
correction or opt to have the animal undergo another surgical procedure at a later
time, which presents a dilemma.
Mayor Pennino suggested that if Council approves this item, that recommendations
on policies be developed through a collaborative effort of interested parties and staff.
Should changes be necessary, a change order for the surgery room could be brought
forward at a later time. He stated that it is Council's desire not to compete with the
private sector veterinary community.
Dr. Klapstein indicated that the veterinary community would also like to work with the
Task Force on the design of entire facility and the ability to staff it.
Council Member Land questioned whether the euthanasia holding room, euthanasia
room, and euthanasia garden were all really necessary. In reference to the extent of
the surgery and adjacent rooms, he commented that he was not in favor of
government being in competition with local businesses.
In answer to Mayor Pro Tempore Hitchcock, Dr. Klapstein explained that the Animal
Shelter currently works with local veterinarians and transports animals needing
treatment to their facilities. She warned that it would be very expensive to have an
equipped surgical facility and not fully utilize it.
Dr. Richard Turner stated that there were a lot of concerns raised at the meeting last
November between the Task Force and local veterinarians, which have never been
addressed. He felt it would have been appropriate for the Task Force to have called
the ten local veterinarians to invite them to subsequent meetings to review the Shelter
plans and discuss services. He acknowledged the competent staff at the Animal
Shelter and believed it to be one of the best operated facilities in the state. Dr. Turner
read a portion of a memorandum (filed) signed by nine local veterinarians into the
record:
"The Lodi veterinary community feels we have had inadequate time to respond to
the final form of the blueprints for the new animal control facility. Everyone
agrees we need a new facility, but we feel we can help to improve the efficiency
of the plan, address concerns of the veterinary community, and help reduce the
expenditures of the project."
Dr. Turner reported that a colleague in Manteca had a private veterinary hospital
constructed for $140 per square foot, which is considerably less than the new animal
shelter square foot cost. He stated that local veterinarians are willing to donate their
time to work with the Task Force in refining the animal shelter plan. He expressed
concern that if the Council approves the $4 million plan as proposed tonight, no
further consideration will be made to decrease the size, scope, or cost of the project.
Donna Swinney strongly encouraged Council to vote in favor of this item, as a great
deal of effort went into the project and it is important to consider long-term planning
so that the Animal Shelter will meet the needs of the community for many years to
come.
14
Continued October 16, 2002
Dr. Elaine Dornton stated that she is a veterinarian from the Lodi Veterinary Hospital
and also serves on the Animal Shelter Task Force. She reported that until this
morning she had not received a single phone call from a veterinarian during the two
years that the Task Force was working on this project. She had sent notification to
local veterinarians letting them know she was serving on the Task Force and
welcomed questions and had also informed them that there were plans to have a
room in the shelter designated for veterinary medical care. It was her opinion at the
meeting last year with the veterinarians that they were satisfied with the plan as
presented. She reported that the City currently pays $750 a month to have animals
spayed and neutered. Only two veterinary clinics perform those services for the City,
so they would be the only ones who could potentially lose business by the shelter
performing the surgeries on site. She stated that veterinary input in the design of the
facility was contributed by herself, Dr. Rich Bockman, Janet Foley with University of
California, Davis, and Dr. Harris. In answer to questions regarding the necessity for
the euthanasia holding area and room, she stated that before the animal shelter staff
were trained, it was a task she performed and it often resulted in piles of dead dogs
waist high. She urged Council to approve the animal shelter plans, as she believed
that any subsequent changes would not affect the overall concept of the design.
In response to Mayor Pro Tempore Hitchcock, Dr. Dornton reported the State
mandates that prompt veterinary care be available to shelters, but they do no require
that they have a surgical facility on site. Ideally, the Animal Shelter would contract
with local veterinarians to provide services at the facility on certain days of the week.
She confirmed that there were no plans to have a veterinary clinic that would service
the public for spaying and neutering animals.
Council Member Nakanishi preferred that the matter be tabled to the next regularly
scheduled City Council meeting, to allow adequate time for the veterinarians to fully
review the new animal shelter plans and discuss their concerns with the Task Force.
Dr. Dornton countered that the removal of one room from the shelter plan would not
provide a significant cost savings to the overall project. She stated that the Task
Force studied every shelter from San Francisco to Lake Tahoe looking for the best
ideas and the plan presented is the least costly of any one of comparable size in the
area.
Mr. Prima confirmed that the architect and others spent a great deal of time looking at
other shelters before deciding on the proposed plan. In answer to questions related
to square footage cost, he explained that designing public facilities to last 30 years or
more cannot be compared to designing a private commercial facility.
• Gary Wiman, Construction Project Manager, explained that the animal shelter has
been designed for future growth and it would have been irresponsible to do otherwise.
At this time there is no equipment or staff included for the surgery room.
Council Member Howard believed that the project could be improved by allowing
veterinarian input. Appropriate modifications could then be made and the plan
brought back to Council in December, which would still allow the project to go out to
bid in January as planned.
Dr. Lisa Stoops, owner of the Animal Hospital, believed that major changes need to
be made to the plans. She equated the current concept as a "Taj Mahal." Operating,
staffing, and cleaning a 19,857 square foot facility will be very expensive and disease
control would be made difficult. She stated that the City pays only $750 per month to
spay and neuter animals because of its high euthanasia rate. If that practice is
discontinued the amount of surgeries and cost to spay and neuter animals will
increase substantially. Staff that is trained to provide treatment to the animals and
perform surgeries would need to be hired.
15
Continued October 16, 2002
In answer to questions posed by Council Member Land, Dr. Stoops stated that she
had attended the meeting with the veterinarians and Task Force. Concerns were
raised about the surgery area; however, there was no resolution reached at that
meeting. She had learned about the first meeting by being called and had assumed
she would be contacted similarly for future meetings.
Terri Arbuckle, Animal Services Officer, commented that she wished the veterinarians
would have expressed their concerns earlier. She reported that the Task Force has
worked very hard, done hours of research, conducted numerous meetings, and
followed Brown Act notification requirements. She explained that non-profit groups
such as AFC cannot pick up stray animals. The State requires that stray animals
remain at an animal shelter for six days before they are allowed to be taken out or
adopted. In reference to questions about the design of the euthanasia room and
surrounding areas, Officer Arbuckle explained that the process of euthanizing animals
is very stressful and emotional for staff. Over 1,000 animals were euthanized last
year. She stated that 49 cats had to be euthanized in one day for population control
and in these situations, an adequate amount of space is needed. The euthanasia
garden area was designed so that animal shelter staff would have a window to look
out of when performing this task. She reported that the cost to the taxpayers for
animal euthanasia in the year 2000 was $57,000. Locker rooms were added to the
shelter design so that animal control officers would be able to change clothes after
picking up decomposing animals. She emphasized that the current facility is greatly
inadequate and was not built to allow for the many State mandates that now exist.
Council Member Land expressed his disappointment that the veterinary community
did not stay involved throughout the development of the plan.
• Police Chief Adams asked Council to trust the Task Force that it appointed. They
worked diligently on the plan and followed all procedures as requested. On June 19
the Council voted in favor of proceeding with the design as presented. The only
difference since that time was the addition of a small janitor's closet. He urged
Council to approve the plans, and promised that he would work with the veterinarians
and Task Force on issues of concern to reach as much consensus as possible.
Linda Hansen, Animal Shelter Task Force member, noted that she lives across the
street from Dr. Turner so she found it quite surprising that he had not communicated
his concerns earlier. She was shocked that veterinarians were only now coming
forward when the Task Force had held regular meetings for the past two years and
was insulted that the Council would consider revisiting the entire design of the shelter.
The Council appointed Task Force made educated and informed decisions. They
toured shelters all over northern California. Recently Ms. Arbuckle and architect
George Miers went to southern California to look at specific heating and ventilation
requirements that a shelter had. The animal shelter plan as submitted is a design
with integrity that will accommodate the needs of staff and volunteers for many years
in the future. She felt that the only issue that should be open to debate at this time is
the medical room and the Task Force invites input from veterinarians on policies and
how it should be staffed. In answer to Council Member Nakanishi's inquiry
questioning the need for urgency, Ms. Hansen replied that animals are dying. There
is an urgent need to move the project forward to make room for animals so that it is
not necessary to keep killing.
• Parks and Recreation Director Baltz encouraged Council to consider the short- and
long-term impacts that approving this item may have on the recreation projects. Over
the past year and half expectations of the recreation community have been raised
and a great deal of work has gone into the design work.
Continued October 16, 2002
MOTION:
Council Member Land made a motion, Hitchcock second, to approve the plans and
specifications for the new Animal Services Facility, 500 South Guild Avenue, and
authorized advertisement for bids.
DISCUSSION:
Mayor Pro Tempore Hitchcock stated that she would like to see as much money as
possible from development impact fees put toward the animal shelter so that funds will
still be available for DeBenedetti Park. She noted that she still has not received an
answer on what has happened to all the development impact fees, or seen an accounting
as she had requested.
Council Member Howard believed that with further communication and input from the
veterinary community, information regarding operational costs, plans for hiring additional
staff, and a five-year projection — an improved plan could be finalized in a short amount of
time and still have the project ready to go out to bid in January. She emphasized that she
was not against the animal shelter; however, the motion does not support the opportunity
to produce modifications based on discussions that have taken place this evening.
Mayor Pennino recalled that in June he tried to get the Council to agree to downsize the
project and attempt to get public funding for the project, but he was not successful in
doing so. Policies need to be developed for the animal shelter services, particularly as
they relate to the surgery room. He expressed support and commitment for the recreation
projects and stated that he would work hard to get funding for them.
Council Member Nakanishi stated that he was in favor of the animal shelter; however,
with a $3.9 million project it is important to consider both sides. He explained that he
would be voting no because he needs more information.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Land, and Mayor Pennino
Noes: Council Members — Howard and Nakanishi
Absent: Council Members — None
VOTE TO CONTINUE WITH THE REMAINDER OF THE MEETING
The City Council, on motion of Council Member Land, Howard second, unanimously voted to
continue with the remainder of the meeting following the 11:00 p.m. hour.
REGULAR CALENDAR (Continued)
1-2 "Adopt resolution authorizing work to begin to convert the manual winch system in the
Hutchins Street Square (HSS) Performing Arts Theater to an electrical system (to be paid
for by the HSS Foundation) and approve the HSS Foundation's request that this
contribution be considered half of the $150,000 fiscal year 2003-04 regular donation"
Dennis Bennett explained that converting from a manual winch to electric system would
allow for more performances at the Hutchins Street Square (HSS) Performing Arts
Theater. The HSS Foundation has made the following cash contributions toward debt
reduction for the bonds that were sold:
➢ 1997-98 — $150,000
➢ 1998-99 — $150,000
➢ 1999-00 — $300,000
➢ 2000-01 — $150,000
➢ 2001-02 — $150,000
Mr. Bennett stated that in addition, the Foundation has contributed toward the following
capital improvements: $7,024 for musicians' busts; $12,892 for the new reader board; and
17
Continued October I6, 2002
$37,634 for the chandelier in the rotunda. Bids to replace the manual winches with
electric, range from approximately $85,000 to $125,000. He requested that the City
reduce the $150,000 cash contribution by $75,000 so that the money could be utilized to
purchase the electric winches. Mr. Bennett noted that it had intended to make the request
for 2002-03; however, he agreed to 2003-04 as stated on the agenda and staff report.
Kevin Cruz, Technician Manager, reported that electric winches will provide labor savings,
faster turnaround of events, and will enhance the ability to handle a broader scope of
productions. It is proposed to remove 8 of 14 line sets and replace with them with a
motorized winch system.
Community Center Director Lange reported that HSS had Chicago booked for an event,
but were unable to meet its requirements to fly sets because of the current hand crank
winches.
Council Member Howard noted that this request should be budgeted for as part of a
capital or operating expense. While the $150,000 a year that the Foundation gives is
helpful toward paying off the debt, the City annually pays a principal payment of between
$310,000 to $605,000, and in addition the City pays $480,000 annually toward HSS. She
commented that other requests that were made mid-cycle for the budget were not brought
before Council, so it was interesting that this one had.
MOTION:
Council Member Land made a motion, Nakanishi second, to adopt Resolution No.
2002-209 authorizing the work to begin to convert the manual winch system in the HSS
Performing Arts Theater to an electrical system (to be paid for by the HSS Foundation)
and approved the HSS Foundation's request that this contribution be considered half of
the $150,000 fiscal year 2003-04 regulation donation.
DISCUSSION:
Mayor Pro Tempore Hitchcock agreed with Ms. Howard comments; however, she
believed it to be worthy of an exception to maximize the resources available to the newly
hired Technician Manager.
VOTE:
The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Land, Nakanishi, and Mayor Pennino
Noes: Council Members — Howard
Absent: Council Members — None
1-3 "Adopt resolution approving new classification and salary range for Assistant City
Manager" was pulled from the agenda.
E-9 "Adopt resolution awarding the contract for installation of streetlights on Streetlight
Completion Project Phase III to Clayborn Contracting Group, Inc. ($662,259)"
At the request of Mayor Pro Tempore Hitchcock, Electric Utility Engineering and
Operations Manager Hans Hansen reviewed the map as presented in the staff report
noting that the area surrounds California Street north of the railroad track to Turner Road
and an area south of Lockeford Street towards Oak Street, stretching from Hutchins to
Sunset Avenue.
John Simler, Electrical Estimator, added that the lower portion is on Pine Street. The
entire area will be lit once this phase is complete.
Mr. Hansen reported that this project will have 450 lights and should be completed in six
months. Residents will be notified before the work begins.
18
Continued October 16, 2002
Council Member Nakanishi stated that City Manager Flynn and Electric Utility Director
Vallow have done an excellent job for the Utility. The $662,000 from the Electric Utility for
street lights is not paid by tax dollars.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Hitchcock, Howard second,
unanimously adopted Resolution No. 2002-210 awarding the contract for installation of
streetlights on Streetlight Completion Project Phase III to the low bidder, Clayborn
Contracting Group, Inc., of Auburn, CA, in the amount of $662,259.
E-21 "Adopt resolution providing financial support for San Joaquin County's Recycling Market
Development Zone ($1,533 per year)"
Council Member Land stated that based on the report this appears to be a request for a
donation to the Stockton Chamber of Commerce to promote the Stockton area. He
asked where Lodi has benefited from the Recycling Market Development Zone in the
past.
Public Works Director Prima replied that he had been ensured an effort would be made to
work with Lodi businesses. He suggested that the item be delayed until a presentation
can be made at a future meeting.
MOTION / VOTE:
The City Council, on motion of Council Member Nakanishi, Land second, unanimously
tabled the matter regarding the financial support for San Joaquin County's Recycling
Market Development Zone.
E-22 "Adopt resolution authorizing additional City participation in the cost of the Harney Lane
Lift Station Project, and further appropriating funds for the project; and adopt resolution
certifying the Negative Declaration as adequate environmental documentation for the
Harney Lane Lift Station Project"
Mayor Pro Tempore Hitchcock noted that this request appears to be a departure from the
City's standard development agreement.
Public Works Director Prima replied that sanitary sewer lift stations have been handled in
a variety of ways in the past.
Wally Sandelin, City Engineer, reported that the lift station project was originally
envisioned in the 1991 impact fee program. At that time the source of funding was not
specified. It may have been anticipated through inter -fund borrowing that the City would
had enough cash available to build it and that fees would be collected; that no longer
appears to be the case. In 1996 the Council chose to modify the services for that lift
station, and bring in the area generally south of Harney Lane. Those areas were
apportioned a cost share of the lift station. Under current activity that is occurring, staff
anticipates that Century Meadows 1 will be the first project. It would carry the burden for
all of the properties north of Harney Lane. The properties south of Harney Lane have
paid their share of the construction costs of the lift station. Staff is requesting that
Council consider City participation in a proportionate share of the cost of the lift station for
properties generally to the west of the Luckey Annexation on the premise that those are
fractured parcels not likely to develop for 10 to 15 years. Normally the life of the
reimbursement agreement that would be entered into with the developer that builds a
major City facility is 15 years. Staff thought this would be one way to dilute the cost
obligation imposed on one project when soon to follow would be Century Meadows 2, 3,
the Luckey annexation, and the Lackyard and Nepote annexations. Staff determined
there was rationale for the City to take on $393,000 of the project understanding that the
City in the past actions had already appropriated $27,000 for design and $120,000 for
reimbursement for facilities already constructed by the Century Meadows 3 developer.
Those were improvements not associated with the lift station improvements, but they had
19
Continued October 16, 2002
to go in by virtue of their location on Mills Avenue. Alternative two would limit the City
participation to the current funds allocated of $165,000. Alternative three would impose
the entire cost of the lift station on the Century Meadow 1 developer. Staff recommends
alternative one on the premise of its fairness to the developers involved in these relatively
small residential projects.
Mayor Pro Tempore Hitchcock opposed the recommendation because of the precedence
it sets. She did not believe the City had the money and did not want to borrow it from
another account, as it may delay another project.
Mr. Sandelin replied that he modeled the recommendation off what was done on the
Tienda/Kettleman Lane lift station, where the City funded the project and waited for
reimbursement. He acknowledged, however, that the term of the reimbursement period
in this case is much further out.
PUBLIC COMMENTS:
• David Williams stated that he is working with Dr. Kesler on Century Meadows 1. The
first phase is for 57 lots and he felt that the project was not large enough to pay for
the lift station alone.
MOTION #1 /VOTE:
The City Council, on motion of Council Member Howard, Hitchcock second, unanimously
adopted Resolution No. 2002-211 certifying the Negative Declaration as adequate
environmental documentation for the Harney Lane Lift Station Project.
In reply to Mayor Pennino, Mr. Sandelin stated that there could be a fourth alternative that
would spread the $620,000 burden more evenly across Century Meadows 1, 2, and 3,
which are all prepared to begin construction.
Mr. Prima suggested that if Council is not comfortable approving the recommendation,
that the matter be sent back to staff for more work.
MOTION #2:
Mayor Pro Tempore Hitchcock made a motion, Howard second, to deny the request to
authorize additional City participation over and above the actual City's general cost of the
Harney Lane Lift Station Project.
DISCUSSION:
Council Member Nakanishi stated that he preferred to table the item, rather than deny it.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Pennino
Noes: Council Members — Nakanishi
Absent: Council Members — None
J. ORDINANCES — None
K. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
• Council Member Howard asked that the loan request from Lodi Adopt -A -Child be brought
before Council for consideration. She noted that Council received a letter from Hughson
Ambulance Service requesting that the City use a request for proposal (RFP) process for
paramedic training, rather than having an exclusive arrangement with American Medical
Response.
City Attorney Hays confirmed that Zone 4 is not an exclusive area and he has advised the City
Manager and Fire Chief that the appropriate action would be to move forward with an RFP.
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Continued October 16, 2002
Council Member Howard also made the following comments:
➢ She wished to ensure that the City moved forward with establishing the Emergency
Medical Services Coordinator position.
➢ She thanked representatives of Electric Utility for Public Power Week, and in particular
Mel Grandi and the many lineman that were present.
➢ She enjoyed the pumpkin festival at Phillips Farms.
➢ A ribbon cutting recently took place for the Twin Arbor Athletic Club's new Kids Club that
is staffed by MaryAnn Porterfield.
• Council Member Nakanishi stated that he looked forward to attending the Mayor's State of the
City Address this Friday.
• Mayor Pro Tempore Hitchcock also requested that Lodi Adopt -A -Child's loan request be
brought forward to Council, as well as the requests from the Salvation Army and the
Downtown Lodi Business Partnership. She requested to be informed of the balance of the
City's contingency fund. She thanked Electric Utility for coordinating Public Power Week.
She reported that Susan Newman, the Assistant Secretary from the United States
Department of Education would be visiting Clairmont Elementary School, as well as a school
in the Stockton Unified School District, and will be speaking at the University of the Pacific on
October 24.
• Mayor Pennino looked forward to the State of the City Address and congratulated
Ms. Hitchcock for being elected President of the League of California Cities Central Valley
Division.
L. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
• City Manager Flynn announced the following birthdays:
➢ Jackie Taylor — October 22
➢ Janet Hamilton — October 31
Cynthia Haynes — September 5
In addition, he reported that the skate park would be having a special Halloween event
sponsored by a church and there would be live music between 6:00 to 8:00 p.m.
Council Member Howard reported that representatives from Bethel Church will be notifying
surrounding residents about the event.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
1:04 a.m., Thursday, October 17, 2002.
ATTEST:
Susan J. Blackston
City Clerk
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