HomeMy WebLinkAboutMinutes - May 21, 2003LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MAY 21, 2003
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of May 21, 2003, was called to order by Mayor Pro
Tempore Howard at 6:18 p.m.
Present: Council Members — Beckman, Hansen, Howard, and Land
Absent: Council Members — Mayor Hitchcock
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; Albert v. City of Lodi et aL,
U.S. District Court, Eastern District, Case No. CIV S-00-2752 LKK PAN
C-3 ADJOURN TO CLOSED SESSION
At 6:18 p.m., Mayor Pro Tempore Howard adjourned the meeting to a Closed Session to discuss
the above matter.
The Closed Session adjourned at 6:43 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:01 p.m., Mayor Pro Tempore Howard reconvened the City Council meeting, and City Attorney
Hays disclosed the following action.
In regard to Item C-2 (a), Council provided direction on how to proceed.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of May 21, 2003, was called to order by Mayor Pro Tempore
Howard at 7:01 p.m.
Present: Council Members — Beckman, Hansen, Howard, and Land
Absent: Council Members— Mayor Hitchcock
Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston
B. INVOCATION
The invocation was given by Pastor Jimmy McClelland, New Hope Free Will Baptist Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Pro Tempore Howard.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 (a) Fire Chief Pretz presented the 2002 "Firefighter of the Year" award to Fire Captain Ron
Penix.
Mayor Pro Tempore Howard presented a proclamation to Fire Captain Ron Penix
announcing Saturday, May 31, 2003, as the date of the "Firefighter Muscular Dystrophy
Association Fundraiser" (Fill the Boot campaign) in the City of Lodi.
D-2 Proclamations — None
D-3 (a) Ricky Gill, member of the Greater Lodi Area Youth Commission, acknowledged the Teen
of the Month, Tran Nguyen from Tokay High School. Tran Nguyen was unable to attend
the meeting due to another commitment.
D-3 (b) Cynthia Haynes, Community Promotions Coordinator, announced the Lodi Chamber of
Commerce Small Business Committee's 2nd Annual "Small Business Showcase 2003"
Continued May 21, 2003
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Land, Beckman second, approved the following items hereinafter set forth
except those otherwise noted by the vote shown below:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
E-1 Claims were approved in the amount of $3,226,737.86.
E-2 The minutes of April 16, 2003 (Regular Meeting), April 29, 2003 (Shirtsleeve Session),
April 30, 2003 (Special Meeting), May 6, 2003 (Shirtsleeve Session), and May 6, 2003
(Special Meeting) were approved as written.
E-3 "Accept the quarterly investment account report as required by law SB564" was removed
from the Consent Calendar and discussed and acted upon following approval of
the Consent Calendar.
E-4 Approved the plans and specifications for the Lodi Avenue Overlay Project (Ham Lane to
UPRR) and authorized advertisement for bids.
E-5 Approved the specifications for 2003 Handicap Ramp Retrofit Project and authorized
advertisement for bids.
E-6 Approved the specifications for 24,000 feet of #1/0 underground triplex and 28,000 feet of
#350 kcmil 600 -volt underground triplex and authorized advertisement for bids.
E-7 Approved the specifications for a supply contract for various items of overhead and
underground distribution hardware for fiscal year 2003-05 and authorized advertisement
for bids.
E-8 Approved the specifications for fiscal year 2003-04 estimated requirements for post -top
globe -style luminaires and Lodi Replica concrete streetlight standards.
E-9 Authorized the Electric Utility Department and Finance Department's Purchasing Division
to advertise for bids as necessary to meet the Electric Utility Department's requirements
for polemount and padmount transformers through the fiscal year ending June 30, 2005.
E-10 Adopted Resolution No. 2003-85 awarding the bid for the purchase of twenty 3-phase
sectionalizing module enclosures to the low bidder, Wesco Distribution, of San Francisco,
in the amount of $11,390.90.
E-11 Adopted Resolution No. 2003-86 authorizing the purchase of nine 15kV liquid insulated
vacuum switchgears, as a sole source purchase, from Trayer Engineering Corporation, of
San Francisco, in the amount of $201,235.24.
E-12 Adopted Resolution No. 2003-87 awarding the contract for the White Slough Water
Pollution Control Facility Aeration Blower Replacement to Hibon, Inc., of Quebec,
Canada, in the amount of $222,000 and authorizing use of Public Benefit Funds in the
amount of $20,000; and appropriated funds in accordance with staff recommendation.
Mayor Pro Tempore Howard noted that Council received a blue sheet on Item E-12 (filed).
E-13 Received report on Contract Change Orders for the Police Department Facility, 215 West
Elm Street.
E-14 Adopted Resolution No. 2003-88 authorizing destruction of City Attorney records listed
below in excess of two years of age:
• Closed litigation files in excess of two or more years
• Miscellaneous memoranda and correspondence for years 1995-2001
• Miscellaneous claim files for years 1995-2001
2
Continued May 21, 2003
E-15 Approved placement of memorial plaque at Vinewood Park for Christine R. Scott.
E-16 Authorized request for proposals for remittance processing system that would streamline
the handling of bill payments to the City.
ACTION ON ITEM REMOVED FROM CONSENT CALENDAR
E-3 "Accept the quarterly investment account report as required by law SB564"
NOTE: Due to a potential conflict of interest stemming from his employment with Farmers
and Merchants Bank, Council Member Land abstained from discussion and voting on this
matter.
MOTION / VOTE:
The City Council, on motion of Council Member Beckman, Hansen second, accepted the
quarterly investment account report as required by law SB564. The motion carried by the
following vote:
Ayes: Council Members — Beckman, Hansen, and Howard
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
Abstain: Council Members — Land
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
• Steve Jarrett introduced himself as the pastor of New Hope Community Church and read the
following statement signed by senior pastors from Century Assembly Church, Bear Creek
Community Church, Harvest Bible Church, Temple Baptist Church, New Hope Community
Church, Lodi Avenue Baptist Church, First Baptist Church, and the director of Christian
Community Concerns (filed):
To the members of the Lodi City Council and senior staff i stand before you this evening
with a proclamation for encouraging and informing the Council and staff that together we
can stand, fight, and win the current attack upon the values of our great community. In
2000 the then current City Council saw the wisdom and benefit to our community of
passing City ordinance 1696 part 6, which protected the values of our community. This
ordinance came into existence by the leadership shown by Ken Owen of Christian
Community Concerns and the strong urging and support of many of Lodi's Christian
leaders and the congregations they serve. It has taken three years for the ordinance to
start to have the desired impact of the regulating of the owners and employees of
establishments that commerce in adult sexually -oriented businesses. Because this
ordinance is being effective in this regulation, a current owner has filed a lawsuit against
the City of Lodi in federal court claiming first amendment rights violations. it has
distressed Christian Community Concerns as well as the Christian Leadership in this city
that quotes attributed to the City Attorney belies an attitude of immediate defeat and
retreat from the values we as a city wish to maintain. To refresh your memory the
ordinance that was passed by the City Council was fashioned after a very similar
ordinance that has been in place for the City of Modesto for many years. it was
represented to us that their ordinance had survived court challenges. When news of the
filing of the lawsuit against the city reached Ken Owen he asked the Pacific Justice
Institute to look at Lodi's ordinance. They verbally told Mr. Owen that the ordinance, in its
original form, was totally defensible. They will soon be forwarding a written legal opinion.
We strongly, and we emphasize the term strongly, urge the Council to stay the course
and fight the battle to maintain the values the citizens of Lodi hold dear. if ever there was
a legal battle to take head on, using all the resources available to the city and with a City
Attorney's office eager for the fight and confident of victory, this is that battle. We want to
assure you that the Christian leadership represented by their signatures below, are not
afraid of the federal court and are ready do all they can within their scope, their influence,
and their resources, to ensure that every action possible is taken, by you the Council and
City Attorney's Office in the defense of this ordinance. Thank you for your time and we
thank you for your effort that will come in this area that is so important to our community's
way of life.
Continued May 21, 2003
Council Member Land stated that he believed in the ordinance, the need to defend it, and
looked forward to the written legal opinion.
Pastor Jarrett stated that they had resources for legal assistance available to the City at no
cost.
• Eileen St. Yves stated that she read an article in The Record today regarding Code
Enforcement officers who made an inspection of property that turned out to be unnecessary.
She stated that a petty disagreement between two neighbors allowed this to happen. It put a
strain on the party who was investigated. The complainant was guaranteed anonymity. She
asked what is done about individuals who make false claims, take up City time and money,
and put others in a negative position without justification.
Council Member Beckman replied that Code Enforcement has the right to conduct searches
and citizens have a right to refuse. The particular citizen referred to in the article allowed the
Code Enforcement Officers onto his property to conduct the search.
Ms. St. Yves noted that if a citizen refuses the request, Code Enforcement may obtain a
search warrant.
Council Member Hansen commented that from the Police Department's perspective if
someone makes a false claim and it causes time and expense, there is a process that can be
used to try and recover the costs. He noted that it is a criminal violation to report a crime that
has not occurred.
• Arthur Price stated that his home is in an area being developed, to the west on Mills Avenue is
Century Meadows and on the south is Mainstreet. He reported that the sewers in the area are
24 inches wide and 11 inches high with a 30 degree slant down to a 14 inch diameter pipe.
He believed it to be an attractive nuisance and danger to neighborhood children. He noted
that older sewer drains have a metal bar across them approximately five inches from the
ground and suggested that the newer models be retrofitted accordingly.
City Manager Flynn indicated that he would look into the matter.
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 Pro Tempore Howard called for the public
hearing to consider the Planning Commission's recommendation of approval of the
request of Gary E. Hansen, Don and Nancy Miller, and J. Jeffrey Kirst for an Annexation,
General Plan Amendment, and Prezoning at 13669 North Cherokee Lane; 1443, 4071,
4145, and 4219 East Harney Lane; the request also includes a recommendation to certify
Negative Declaration ND -02-11 as adequate environmental documentation for this
project.
Community Development Director Bartlam reported that there are three property owners
that have requested to change the City's general plan and zoning in preparation of
annexation of two properties. He noted that a third property has already been annexed.
The first property is just over 18 acres and is located on the northwest corner of Harney
Lane and the Cherokee Lane frontage to Highway 99. The second property, owned by
Jeffery Kirst, is much smaller and is located on west Harney Lane. Mr. Bartlam explained
that the first step in the annexation process is to amend the general plan from the Citys
planned residential designation and provide for direction for a zoning designation, which in
this case it is suggested to go from planned residential to medium -density residential.
Medium -density residential is a designation that allows 7 to 20 units per acre. The
second property on west Harney Lane would go from planned residential to low -
residential density, which is the designation for the surrounding properties. This site
currently has a single-family residence on it and has some potential to subdivide the back
property to gain additional single-family lots. Mr. Bartlam asked that Council amend the
general plan and provide zoning for the three properties and initiate annexation for the two
parcels that are southeast of the existing City limits.
4
Continued May 21, 2003
In reply to Council Member Hansen, Mr. Bartlam explained that medium -density
residential provides for a broad variety of housing type's potential, including apartments.
In this case there is some ability to transition from the single-family residential that exists
off of Richards Ranch.
Hearina Ovened to the Public
• Jeffery Kirst stated that he had purchased the property after finding out that the
previous owner had not lived in the property for six years nor had received any
notices about the previous annexations. Mr. Kirst stated that he was the developer of
the property surrounding the rest of the southeast Lodi project that is also under
consideration tonight. He believed it to be a good transition for the surrounding area
and recommended approval.
• Steve Pechin stated that he represents Gary Hansen who has an interest in the
property at the corner of Harney Lane and Cherokee Lane frontage road and
recommended Council approval of the requests being made. He noted that he plans
to submit a development plan prior to the May 31 deadline for the growth
management allocations. He stated that it is a medium -density project that has a
buffer at the transition area of Tradewind Drive into this project.
Public Portion of Hearina Closed
MOTION #1 /VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, adopted
Resolution No. 2003-89 entitled, "A Resolution of the Lodi City Council Amending the
Land Use Element of the Lodi General Plan by Redesignating the 19.44 Acres Located at
13669 North Cherokee Lane; 4071, 4145, and 4219 East Harney Lane; and 1443 East
Harney Lane (APN 062-290-14, 17, 37, and 38 and APN 058-230-17) from PR, Planned
Residential to MDR, Medium Density Residential and LDR, Low Density Residential."
The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
MOTION #2 / VOTE:
The City Council, on motion of Council Member Beckman, Land second, introduced
Ordinance No. 1731 entitled, "An Ordinance of the Lodi City Council Amending the Official
District Map of the City of Lodi and Thereby Prezoning the Parcels Located at 13669
North Cherokee Lane; 4071, 4145, and 4219 East Harney Lane; and 1443 East Harney
Lane (APN 062-290-14, 17, 37, and 38 and APN 058-230-17) from San Joaquin County
RL, Residential Low Density and AU -20 Agriculture Urban Reserve to R-2, Single Family
Residential." The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
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 Pro Tempore Howard called for the public
hearing to consider the appeal of Juan Diaz of a Planning Commission approval of a Use
Permit to establish a Type #20 Off -Sale Beer and Wine liquor license at 725 S. Cherokee
Lane with the condition that the applicant transfer an existing license from within Lodi to
the proposed location.
Community Development Director Bartlam explained that Juan Diaz is appealing a
condition the Planning Commission placed on the approval of his request for a Use
Permit to establish an off -sale beer and wine liquor license at his market, La Capilla, on
the corner of Harold and Cherokee Lane. The condition placed on the approval was that
Mr. Diaz acquire an existing license from Lodi.
Continued May 21, 2003
Mr. Bartlam reported that the state provides guidelines to local jurisdictions for purposes
of determining concentration, i.e. how many licenses may or may not be needed for a
given population. It is done on a census tract basis of 2,500 per license. The state
suggests that Lodi should have 24 licenses; however, it currently has 54. There are two
licenses owned by the AM PM markets that were recently closed, but they have not been
surrendered and they are not interested in selling them. Consequently, Mr. Diaz is in the
position of not being able to find a license within the City. Staff now suggests as an
alternative that the City maintain a cap of 54 on the licenses, allow Mr. Diaz to acquire a
license from elsewhere in the county, and deduct one of the AM PM licenses from the
total number.
Mr. Bartlam stated that there are three other prospective applicants: 1) a large
supermarket, which will be under construction this summer where the Tokay Bowl used to
be; 2) the Econo gas station at Beckman and Victor Roads; and 3) a new gas station
being proposed at the corner of Harney Lane and Stockton Street.
Council Member Beckman expressed support for granting Mr. Diaz' appeal; however, he
was hesitant about setting a cap on the number of licenses as he believed that business
owners should be given the freedom and latitude to be successful.
Council Member Hansen noted that Lodi's DUI (driving under the influence) statistics are
high. The number of licenses has a direct correlation to the ability of people to get
alcohol, consume it, and be out in public. He was in favor of granting Mr. Diaz' appeal
because of the two licenses that give the flexibility of doing so, and was also in favor of
limiting the number of off -sale beer and wine licenses that can be purchased in Lodi.
City Manager Flynn pointed out that there is an issue of property rights for two parties:
1) the business owner and his ability to compete; and 2) residential neighbors on the east
side. He recalled that a few years ago a concern was expressed about an over
concentration of liquor licenses on the east side and the negative effect it had on the
community.
Council Member Beckman stated that he would be open to looking at more evenly
dispersing the licenses.
Hearing Opened to the Public
• Juan Diaz stated that he was told by an individual in the Community Development
Department (who has since retired) that he would be able to sell beer and wine from
his business because it had formerly been a bar. Mr. Diaz worked for a year
remodeling the building, after which time he attempted to get a beer and wine license.
Aldee Market was willing to sell him its license for $3,000. He then met with
Community Development Director Bartlam and Mike Smith regarding the matter, and
Mr. Bartlam stated that he would not allow Mr. Diaz to have a beer and wine license
because there were already too many in the area. Mr. Diaz noted that Starr Market
was open at this time, and he alleged that it was selling alcohol to minors. Mr. Diaz
continued to work on repairs to the building for a time, at the conclusion of which Starr
Market closed and its liquor license became available. Mr. Diaz approached Mr.
Bartlam again with a request to purchase a license and was again denied on the
same grounds as previously noted. Mr. Diaz felt that he was misled by the
Community Development Department and implied that Mr. Bartlam was treating him
unfairly because he had allowed other businesses on Cherokee Lane to get licenses.
Mr. Diaz stated that he pursued the matter after hearing that Food for Less would be
opening near his market, and he was told that because it was a larger business it
would be allowed to get a liquor license. He complained that every time he has gone
to the City for advice, each person he speaks to gives him a different answer.
Continued May 21, 2003
Council Member Land expressed support for Mr. Diaz' request, noting that he
understood how there could have been a misunderstanding.
In answer to Council Member Land, Mr. Bartlam explained that the state's guideline is
that there should not be in excess of one license per 2,500 people. He suggested
that if Council set a cap at 54 now, each time Lodi's population grew by 2,500 one
more license would be added to the cap.
Mr. Diaz reported that he was told by the Department of Alcoholic Beverage Control
today that based upon his census tract they would not allow him to purchase a new
license; however, he could transfer one within San Joaquin County to Lodi.
Mr. Bartlam stated that the census tract where his business is located should have no
more than seven licenses, and it currently has 12.
In reply to Council Member Land, City Attorney Hays advised Council that it has two
actions to take regarding this matter: 1) decide on the appeal of Mr. Diaz; and
2) consider whether or not to establish an off -sale beer and wine liquor license cap for
the City.
Public Portion of Hearina Closed
MOTION #1 /VOTE:
The City Council, on motion of Council Member Beckman, Land second, affirmed the
Planning Commission's approval of a Use Permit to establish a Type #20 Off -Sale Beer
and Wine liquor license at 725 S. Cherokee Lane without the condition that the applicant
transfer an existing license from within Lodi to the proposed location. The motion carried
by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
Council Member Beckman was opposed to establishing a cap and preferred that each
request for a license be considered on a case by case basis as is currently done.
In reply to Council Member Hansen, Mr. Bartlam stated that without any further direction
from Council he would recommend against any off -sale licenses and let applicants make
their appeals through the Planning Commission and Council. He would make this
recommendation based on what he believes is an over concentration of licenses.
Mr. Bartlam noted that what would likely occur under this situation is that the value of the
current licenses would increase and the ability for someone to obtain a license would be
based upon how much they were willing to pay. He commented that the market sets the
price for the commodity.
Mayor Pro Tempore Howard favored setting a cap at 54, noting that transfers and
exchanging of licenses would continue to happen and the cap would foster competition.
Council Member Hansen stated that he supported allowing people to develop their
properties. As a compromise he offered "grandfathering in" the three businesses that
Mr. Bartlam noted earlier were interested in obtaining licenses, and then set the cap at 57.
MOTION #2:
Council Member Hansen made a motion to establish a cap of off -sale beer and wine
liquor licenses in the City of Lodi at 57. The motion died for lack of a second.
7
Continued May 21, 2003
MOTION #3:
Council Member Land made a motion, Howard second, to set the cap of off -sale beer and
wine liquor licenses in the City of Lodi at 54 and increase the number by one each time
the population increases by 2,500.
DISCUSSION:
Council Member Hansen warned that if another business obtains the one remaining off -
sale liquor license in the City before the San Miguel market on Cherokee Lane has an
opportunity to apply, it will eliminate its ability to sell liquor from the store.
Mayor Pro Tempore Howard acknowledged Mr. Hansen's concern; however, she believed
that there were an adequate number of facilities in the area that could offer the sale of
liquor to customers.
VOTE:
The above motion failed by the following tie vote:
Ayes: Council Members — Howard and Land
Noes: Council Members — Beckman and Hansen
Absent: Council Members — Mayor Hitchcock
Mayor Pro Tempore Howard suggested that the topic of establishing a cap on the off -sale
beer and wine liquor licenses in the City of Lodi be tabled for further discussion when five
Council Members are present.
Mr. Bartlam recommended that the topic be discussed at a Shirtsleeve Session.
Council Member Hansen agreed, noting that it would allow more opportunity for input from
the community.
H. COMMUNICATIONS
H-1 Claims filed against the City of Lodi — None
H-2 Reports: Boards/Commissions/Task Forces/Committees — None
H-3 The following postings/appointments were made:
a) The City Council, on motion of Council Member Land, Beckman second, directed
the City Clerk to post for the following vacancies by the vote shown below:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
Lodi Arts Commission
Edie Van Noy Term to expire July 1, 2004
Jennifer Walth Term to expire July 1, 2005
H-4 Miscellaneous
a) City Clerk Blackston presented the cumulative Monthly Protocol Account Report
through April 30, 2003.
RECESS
At 8:42 p.m., Mayor Pro Tempore Howard called for a recess, and the City Council meeting
reconvened at 8:53 p.m.
8
Continued May 21, 2003
REGULAR CALENDAR
1-1 "State Budget update"
City Manager Flynn presented the following information from the Governor's Budget May
Revision (filed):
2002-03
➢ The proposal to eliminate the Vehicle License Fee (VLF) backfill was deleted from the
Governor's budget for the current fiscal year;
➢ Reduce grants to the Public Library Foundation of $15.8 million;
➢ Transfer of Redevelopment Agency housing funds of $500 million;
➢ Reduction of state highway account funding for streets and roads of $9 million;
➢ The legislature has already adopted reverting flood control subventions;
2003-04
➢ Reinstate the VLF backfill effective July 1, which is worth $2.9 million to cities;
➢ Deleted the Williamson Act, which would have cost local government $39 million;
➢ Eliminate the booking fee, which will cost cities $40 million;
➢ Defer payments for mandates, which was worth $770 million in the original proposal;
➢ Transferring redevelopment property tax to schools of $250 million;
➢ Continue to recommend undesignated fees from counties to courts, which is a
reduction of $31 million;
➢ Reduce correction law enforcement payments of $62 million;
➢ Reduce grants to libraries $14.8 million;
➢ Reduction to Public Library Foundation of $12.1 million;
➢ Suspend transfer of sales tax on gas to transportation infrastructure funds, which is a
reduction to local government of $1 billion;
➢ Cancel the general fund loan repayments to transportation congestion relief fund of
$500 million;
➢ Realign health and social services, which will cost local governments $6 billion;
Mr. Flynn reported that the League of California Cities has expressed a position of
support to providing local revenues if there is an amendment to the State Constitution, i.e.
that the State would not be able to touch local property tax, sales tax, VLF, and all locally
approved tax revenues unless the Governor declares a fiscal state of emergency and the
legislature approves such action by at least a two-thirds vote. Mr. Flynn stated that the
measure authorizing the seizure of local tax funds provides for its full reimbursement in
the next fiscal year.
Council Member Hansen noted that the City does not pay booking fees because it has a
type one jail facility, so that particular impact would not affect Lodi. He noted that
because of the way the City has operated and its financial management, it appears that
the upcoming budget impact may not be as devastating as some had feared.
Mr. Flynn agreed; however, he explained that the primary reason for that is because of
the State's proposal next year to borrow $10.2 billion in order to "bridge the gap."
Council Member Beckman distributed a copy of Schedule 6 entitled Summary of State
Population, Employees, and Expenditures (filed). He reported that he has compared the
State's and Lodi's budgets over the past ten years and noted that Lodi's budget reflects a
similar trend. Over the last ten years the State has grown on average 1.3% in population
per year, and Lodi has grown 1.3%. State expenditures have risen at a rate of 8.3%
every year for the past ten years, while Lodi's has increased 5.8%. Page D-5 of Lodi's
2003-05 budget shows that expenditures will grow by 10.4% in the 1" year and 6.3% in
the 2"d year. The Fire Department's budget will increase at a rate of 21 % in the 13t year
LCC
Continued May 21, 2003
and 17% in the 2nd year. Mr. Beckman questioned the need for purchasing another fire
engine, in light of the Fire Chief's recent comments that having uniformed on -duty
firefighters in attendance during Council meetings would not jeopardize the coverage to
the City. Page B-11 of the budget indicates that the City should maintain at least 15% of
operating expenditures in the general fund, which is considered the minimum level
necessary to maintain the City's credit worthiness, adequately provide for economic
uncertainties, contingencies for unforeseen operation or capital needs, and cash flow
requirements. However, according to the proposed budget the City's reserves will be
14.5% in the 1$' year and 12.5% in the 2"d year. Page B-16 stipulates that all requests for
additional regular positions (e.g. firefighters and paramedics) will include an evaluation of
the necessity and ability of private industry to provide the proposed services.
Mr. Beckman stated that due to the Fire Chief's comments regarding coverage of the City,
he could not see the necessity. Paramedics are already being provided to the City at no
cost by private industry. Mr. Beckman stated that he was shocked by the Fire
Department's proposal to charge a first responder fee to offset the paramedic cost, which
in essence charges a private business entity in the community $478,000 a year for the
City to have the privilege of competing with them.
Council Member Hansen replied that he did not dispute the figures quoted by
Mr. Beckman; however, he objected to how they were interpreted. He believed that the
City has been fiscally conservative and in the long run would have a balanced budget and
the necessary reserves to operate. He noted that before he and Mr. Beckman were
elected the City Council adopted a plan in terms of service from the Fire Department. In
reference to the first responder fee, he stated that the issue is whether or not the Fire
Department responds first and begins work that the paramedics would have done if they
had arrived first to the call. He stated that the first responder fee is an established
practice in other communities. He noted that the proposed budget allows the City to
continue to provide the level of service that the community has come to expect and still
have a 14.5% reserve, which he believed to be very good.
MOTION/ VOTE:
There was no Council action necessary on this matter.
1-2 "Authorization to write off uncollectible Business Improvement District assessments in the
amount of $6,469.15"
City Manager Flynn noted that a blue sheet has been distributed regarding this item
(filed).
Kevin Bell, Finance Technician, provided the following summary of actions taken to date
related to the downtown Lodi Business Improvement District (BID) assessments:
➢ 2000-02 assessments were billed by the Downtown Lodi Business Partnership
(DLBP) and late charges were applied on the delinquent accounts;
➢ At the December 18, 2002 Council meeting the DLBP delinquent accounts were
turned over to the City for collection;
➢ Between December 18 and January 10 there was e-mail correspondence between
the Finance Director and the DLBP for clarification and correction of account
information;
➢ January 10 — letters were sent to delinquent accounts according to the information
submitted by the DLBP and there was some return mail a few days later;
➢ January 21 — updated the City Manager's Office with the status of the DLBP mailing
and correspondence;
In January and February there were some payments received on the past due
accounts;
➢ May 9 — began reviewing and researching the delinquent assessments, and
documented the uncollectible accounts;
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Continued May 21, 2003
➢ May 15 — submitted the staff report requesting authorization to write off uncollectible
accounts and delivered a copy to the DLBP;
➢ May 20 — received an e-mail from the DLBP with additional information, followed up
on that information, and deemed accounts uncollectible for the following reasons:
8 — internal bad debt accounts
2 — unable to identify proper ownership
6 — invalid mailing or business address
14 — lack of current utility services
8 — no valid business tax service on file
2 — bankruptcy or deceased
In reference to Exhibit A of the staff report, Mr. Bell reported that he completed additional
analysis and found the following:
➢ Item 3 was uncollectible due to current bad debt, invalid address, lack of current utility
services, and no valid business tax certificate;
➢ Item 6 — the location in question was a museum, not a business. Donations were
received for admission and no retail sales were conducted. Per Lodi Municipal Code
Section 3.01.040 under the definition of business, the activity of voluntary donation
would not be considered a business transaction and therefore the location would be
exempt from both business tax and BID assessment.
➢ Item 7 — the previous owner is currently disputing the amount of the assessment with
the DLBP, and for this reason, Mr. Bell recommended that Council eliminate this item
from the uncollectible BID assessments and amend the total amount to $6,069.95.
In reference to the museum, Lew VanBuskirk explained that the criteria for billing the
assessment is that they must be licensed. He noted that the City had not billed them for a
license. He stated that if they were a non-profit agency as they claimed to be, then that
would be a legitimate write-off.
Council Member Beckman questioned the write off of $1,200, to which Mr. Bell explained
that it involved a change of ownership that took place in 2002. The new owner took over
ownership near the first of June, so they would be exempt from the assessment fees for
that year. He explained that it is a debt of the owner, not the business.
City Attorney Hays recalled that when the district was formed the City made a conscious
decision to make the assessments individual debts, rather than placing liens on the
properties.
MOTION / VOTE:
The City Council, on motion of Council Member Land, Beckman second, directed the
Finance Director to write off uncollectible BID Assessments in the amount of $6,069.95.
The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
1-3 "Council direction regarding request for advance payment of uncollected/delinquent 2003
assessments to the Downtown Lodi Business Partnership ($5,000)"
Janet Hamilton, Management Analyst II, reported that on May 12 the City received a letter
from the Downtown Lodi Business Partnership (DLBP) requesting a $5,000 advance on
the uncollected delinquent assessments for 2003. The Finance Department to date has
billed $34,300 to the businesses and collected and turned over to the DLBP $25,600.
This leaves a balance of $8,700 in uncollected fees. According to the ordinance the City
will bill and collect the assessment fees at no charge to the area and forward all collected
funds to the area within 30 days of such collections. Staff is requesting direction from
Council, because granting the DLBP the uncollected assessments would be an exception
to the ordinance.
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Continued May 21, 2003
Lew VanBuskirk explained that the DLBP is making the request because of the slow
collection process and cash flow difficulties that the DLBP is currently experiencing.
Council Member Beckman noted that the City provides billing and collection of the
assessments without charge to the DLBP, and in addition to that, the DLBP is now asking
the City to front money that at some point it may have to write off as uncollectible.
Mr. VanBuskirk acknowledged this possibility.
In answer to Council Member Hansen, Finance Director McAthie reported that staff has
just begun analyzing the current assessments that are delinquent and could not comment
on whether the accounts would be 100% recoverable. She stated that business licenses
are issued January 1, but the assessments are not delinquent until April.
Council Members Hansen and Land suggested that an amendment to the ordinance be
considered, which would make the business licenses and BID assessments due at the
same time.
Council Member Land was not in favor of advancing payment to the DLBP.
Mr. VanBuskirk recalled that the DLBP typically billed $34,000 to $35,000 and collected
$30,000 to $31,000. The remaining balance had been delinquencies and penalties since
the year 2000. He reported that it is against state law to tie the assessment to business
licenses. He explained that there are two types of BIDs: 1) business based, and 2)
property based. With property based assessments liens can be placed on the property,
which is advantageous to the collection process. To change from the current business
based BID it would require dissolving the district and creating a property based district
through a vote of the property owners. Mr. VanBuskirk stated that this is the first year that
the DLBP has been in as tight a budget situation since he became the Executive Director
in 1999. He explained that past events have caused the budget shortfall.
City Manager Flynn commented that a lot of communities bill the business license tax and
the BID assessments at the same time.
Mayor Pro Tempore Howard was opposed to advancing the money, noting that it would
be an advance of money that the City may not be able to collect and giving it to the DLBP
risk free.
Mr. Flynn suggested that Council consider a compromise of advancing the $5,000 from
next year's contribution to the DLBP of $47,000, leaving a balance due them of $42,000.
Council Member Land replied that he would be willing to entertain the idea at the time the
2003-05 budget is being considered.
Mayor Pro Tempore Howard was not in favor of Mr. Flynn's suggestion.
MOTION / VOTE:
The City Council, on motion of Council Member Land, Beckman second, denied the
request for advance payment of uncollected/delinquent 2003 assessments to the
Downtown Lodi Business Partnership in the amount of $5,000. The motion carried by the
following vote:
Ayes: Council Members — Beckman, Howard, and Land
Noes: Council Members — Hansen
Absent: Council Members — Mayor Hitchcock
NOTE: The remaining Regular Calendar items were heard and discussed out of order.
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Continued May 21, 2003
1-5 "Adopt resolution approving the Grape Bowl rental agreement with the Lodi Chamber of
Commerce"
City Manager Flynn noted that a blue sheet has been distributed to Council regarding this
item (filed).
Parks and Recreation Director Baltz reported that a request from the Chamber of
Commerce had been received to rent the Grape Bowl facility for a music concert on
August 21. He noted that a concert had not been held at the Grape Bowl for well over ten
years. The Chamber hopes to attract 8,000 people to the event. The agreement states
that City services will be paid by the lessee and concessions will be shared between the
Chamber and various non-profit organizations. The security, restrooms, and crowd
control issues are to be handled by the lessee. The rental fees and percentage issues
are to be negotiated.
Pat Patrick, Executive Director of the Chamber of Commerce, distributed a summary
sheet related to the Grape Bowl rental agreement fees (filed). He noted that the contract
asked for a rental fee of $5,000, 3% gross of the gate, and a $2,000 maintenance deposit.
In total the City fees amount to $15,053, which expressed as a percent of the Chamber's
projected net on the concert is 38%. Mr. Patrick believed this to be excessive. He asked
Council to consider the following amendment to the agreement: $5,000 rental, $3,160
Police, $393 Fire, and $300 maintenance deposit. He recommended that Council
reconsider its Grape Bowl schedule and fees, noting that the current prices are too high
for the venue. He pointed out that there are not adequate restrooms or concessions at
the facility. There is no power generation, garbage containers, or maintenance staff that
comes with the proposed $5,000 rental fee. The Chamber will have to build a stage, as
well as pay up to $2,000 to put the venue on ticketmaster.com. Mr. Patrick believed that
the rental fee, without a percentage of the gate, would be an adequate charge for use of
the Grape Bowl facility.
Discussion ensued regarding the proposed amendments to the rental agreement.
Council Members Land and Hansen agreed that the Parks and Recreation Commission
should review the Grape Bowl fee schedule.
MOTION:
Council Member Hansen made a motion, Land second, to adopt Resolution No. 2003-90
approving the Grape Bowl rental agreement with the Lodi Chamber of Commerce to
include the following fees.
Rental Fee $5,000
Police $3,160
Fire $ 393
Maintenance Deposit $1,000
$9,553
DISCUSSION:
Mayor Pro Tempore Howard noted that in the future she would prefer that Council
establish a percentage and be confident in the fact that the City should receive some
funds from the events that are held at the facility.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
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Continued May 21, 2003
1-7 "Adopt resolution approving the Voluntary Time Off Program for fiscal year 2003-04"
Human Resources Director Narloch reported that the Voluntary Time Off (VTO) program
is a collaborate effort to introduce a leave without pay program in the City as a method of
reducing City costs during a budget crisis time. The main objective with the program is to
assist the City in offsetting future layoffs and other types of reductions. She commented
that it should not be construed as a lack of work on the part of the positions that
participate. If there were no savings as a result of any of the requests to take time off, the
leave would be denied.
City Manager Flynn estimated that the savings from the VTO program could range from
$50,000 to $1 million. The program allows employees to buy leave. An employee who
bought 12 days of leave in a year would save the City 5% of his/her compensation cost.
An incentive has been included in the program, wherein employees who take six days
VTO will be given one additional day and those who take 12 days VTO will be given 14.
The program has been called "Grandi" leave as a way to recognize it and separately
identify it in the payroll system. He stated that VTO cannot be cashed out and it will stay
on the books as long as the individual is an employee with the City, or until they use it.
Mayor Pro Tempore Howard clarified that employees have through the month of June to
establish how many days of VTO they would like to take. If the program is successful,
Ms. Howard stated that she would like to leave it open at the end of the year for further
implementation.
MOTION:
Council Member Hansen made a motion, Beckman second, to adopt Resolution No.
2003-91 approving the Voluntary Time Off Program for fiscal year 2003-04; to review the
program, and if successful, continue for fiscal year 2004-05.
DISCUSSION:
City Manager Flynn noted that as a contingency in the future, if the City were to have
larger cuts in revenue than anticipated or extraordinary costs arise, he may return to
Council with a recommendation for mandatory leave without pay. He stated that
mandatory leave of one day a month would save the general fund $1.1 million. He
pointed out that anyone signing up for the VTO program will be offered the incentive days;
however, if a mandatory program were instituted the incentive would be eliminated.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
1-8 "Adopt resolution authorizing the City Manager to execute the contract for Transit
Operations Services for Dial -A -Ride and Fixed Route (approximately $1,700,000)°
City Manager Flynn noted that a blue sheet has been distributed to Council regarding this
item (filed).
Public Works Director Prima reported that three bids were received for transit operations
services. Tiffani Fink, Transportation Manager, held a review panel with outside entities
to assist the City in evaluating the bids. Staff recommends that Council award the bid for
transit operation services for Dial -A -Ride and Grapeline to MV Transportation of Fairfield.
Ms. Fink recalled that she came to Council in February with the Request for Proposal
(RFP) for this service. At that time comments were made by Council Members of
additional things that they wanted considered, which were added to the RFP. Ms. Fink
reviewed the following key items that were included in the MV Transportation proposal:
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Continued May 21, 2003
➢ Recording of receptionist to monitor customer service. The tapes will be held for six
months and on demand of the City will be turned over to Ms. Fink for review;
➢ Door hanger policy — If MV shows up for transport and no one is home, a note will be
left to let the resident know that they were there;
➢ Missed trip policy — A letter of apology would be sent to the rider and a free trip
offered;
➢ Employee incentive program — A $200 cash incentive is offered to employees who go
a year without receiving any complaints;
➢ MV will retain as many current employees as possible and will match their salary and
benefits.
Council Member Hansen noted that recording dispatcher's phone conversations also
serves to protect them if someone makes a false accusation. He commented that MV
Transportation has other vehicles available should a need arise temporarily, which he
believed would be beneficial in ensuring that time delays are kept to a minimum.
Mayor Pro Tempore Howard reported that she spent over an hour at City Hall today
reviewing all three proposals.
In reply to Mayor Pro Tempore Howard, Keith Whalen, Vice President of MV
Transportation, stated that the bilingual abilities of the existing staff would be continued,
as they intend to retain as many of the existing personnel as possible. In addition, if
needed, MV has the ability to utilize the services of an entrepreneurial agency that
provides translation for 50 different languages. MV conducts a quarterly survey of riders
to assess their satisfaction level. The local manager will remain in contact with
passengers and solicit first-hand comments. Comment cards are also located in the
vehicles. Mr. Whalen reported that a manual dispatching system with computer
assistance is used. The Route Match System is an enhancement available for an
additional cost that would fully automate the dispatching system.
Mayor Pro Tempore Howard noted that she received a call from a citizen who cautioned
that it is important to look for additional costs and not merely select the lowest bid.
Mr. Whalen replied that MV Transportation stands behind the prices submitted.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, adopted
Resolution No. 2003-92 authorizing the City Manager to execute the contract for Transit
Operations Services for Dial -A -Ride and Fixed Route with MV Transportations, of
Fairfield, CA, in the amount of $4,997,089. The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
1-4 "Adopt resolution amending Traffic Resolution 97-148 approving the conversion from
angle parking to parallel parking on the west side of Central Avenue from Flora Street
south to the alley"
Public Works Director Prima reported that this request came from the residences in front
of the half block being affected. There was one business that objected, so the conversion
from angle parking to parallel was scaled back to just the north half of the block.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, adopted
Resolution No. 2003-93 amending Section 4 of Traffic Resolution 97-148 by approving
the conversion from angle parking to parallel parking on the west side of Central Avenue
from Flora Street south to the alley. The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
15
Continued May 21, 2003
1-6 "Adopt resolution opposing AB1221 (Steinberg) regarding property and sales tax shifts"
City Manager Flynn explained that AB 1221 is a redistribution of sales tax and property
tax. The City would give up half of its sales tax in exchange for an equal amount of
property tax, which would create a new base for the City in the future. Over the next five
years the impact to the City would be $3 million. A number of cities throughout California
have taken a strong opposition to the bill. Mr. Flynn believed that the bill encourages
urban sprawl in the San Joaquin Valley because it promotes housing development without
any consideration as to what is happening to the agricultural base.
Council Member Beckman did not believe it was appropriate for Council to expend
resources by frequently supporting or opposing state bills and did not feel that this
particular topic warranted such action.
Council Member Hansen disagreed and countered that potentially losing $3 million
justifies a resolution by Council in opposition. He pointed out that the League of California
Cities has encouraged cities to send a united voice to its legislators in Sacramento.
Council Member Land concurred with Mr. Hansen.
MOTION / VOTE:
The City Council, on motion of Council Member Land, Hansen second, adopted
Resolution No. 2003-94 opposing Assembly Bill 1221 (Steinberg and Campbell) regarding
property and sales tax shifts. The motion carried by the following vote:
Ayes: Council Members — Hansen, Howard, and Land
Noes: Council Members — Beckman
Absent: Council Members — Mayor Hitchcock
1-9 "Adopt resolution authorizing the City Manager to execute an agreement among the cities
of Lathrop, Lodi, Manteca, Tracy, Ripon, and San Joaquin County providing for voluntary
cost sharing for programs required in the National Pollutant Discharge Elimination System
Phase II Permit"
Public Works Director Prima reported that small cities in the county, as well as the County
itself now fall into the Storm Water Permit Program. The proposed agreement states that.
it is the intent of the participants to work together and split the cost on specific activities
such as training, printing brochures, and creating a website.
MOTION / VOTE:
The City Council, on motion of Council Member Beckman, Hansen second, adopted
Resolution No. 2003-95 authorizing the City Manager to execute the agreement among
the cities of Lathrop, Lodi, Manteca, Tracy, Ripon, and San Joaquin County providing for
voluntary cost sharing for programs required in the National Pollutant Discharge
Elimination System Phase II Permit required by the Regional Water Quality Control
Board. The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Howard, and Land
Noes: Council Members — None
Absent: Council Members — Mayor Hitchcock
ORDINANCES
None.
K. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
Council Member Land announced that the Lodi Theater Group is auditioning age groups of 8
to 20 years for its Summer Musical Theater Experience production of Brigadoon on July 18,
19, and 20. On June 3 the Housing Authority is conducting a free workshop for landlords. It
will explain the benefits of the new allocation of Housing Choice Vouchers for Section 8, which
helps low- and moderate -income individuals pay for their rent. It includes guaranteed rent
payments up to 60 days on vacant apartments. The Housing Authority will conduct
inspections on properties, as well as prescreen tenants.
16
Continued May 21, 2003
• Mayor Pro Tempore Howard thanked Hans Hansen, Manager of Engineering and Operations
at Electric Utility, for spending a half hour showing her around the storage area so that she
could see first hand the supplies that were being requested on the Consent Calendar of
tonight's agenda. She also thanked the Lodi Lake docents and Storm Drain Detectives who
sponsored a program on May 12 at the Library regarding the Mokelumne River. An East Bay
Utility District engineer gave a presentation on the Pen Mine cleanup. Ms. Howard recognized
all those involved in the Public Works Department and noted that it is Public Works Week.
L. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
• City Manager Flynn commented that Public Works provided an excellent program this
afternoon for its employees.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
11:04 p.m.
ATTEST:
Susan J. Blackston
City Clerk
17