HomeMy WebLinkAboutMinutes - May 4, 2005LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MAY 4, 2005
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of May 4, 2005, was called to order by Mayor Beckman
at 5:30 p.m.
Present: Council Members — Hansen, Hitchcock, Johnson, Mounce, and Mayor Beckman
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Blackston
C-2 ANNOUNCEMENT OF CLOSED SESSION
a) Prospective acquisition of real property located at 13786 N. Lower Sacramento Road
(APN 058-230-04), Lodi, California, for right-of-way; the negotiating parties are Tokay
Development, Greg Kubota, and City of Lodi; Government Code §54956.8
b) Actual litigation: Government Code §54956.9(a); one case; People of the State of
California: and the City of Lodi. California v. M & P Investments, et al.; United States
District Court, Eastern District of California, Case No. CIV -S-00-2441 FCD JFM
C) Actual litigation: Government Code §54956.9(a); one case; Hartford Accident and Indemnity
Company, et al. v. City of Lodi, et al., Superior Court, County of San Francisco, Case
No. 323658
d) Conference with legal counsel — initiation of litigation: Government Code §54956.9(c); two
cases
e) Conference with legal counsel — anticipated litigation — significant exposure to litigation
pursuant to subdivision (b) of Section 54956.9; one case; pursuant to Government Code
§54956.9(b)(3)(A) facts, due to not being known to potential plaintiffs, shall not be disclosed
f) Actual litigation: Government Code §54956.9(a); one case; Fireman's Fund Insurance
Company v. City of Lodi, et al.. United States District Court, Eastern District of California
Case No. CIV -S-98-1489 FCD JFM
g) Actual litigation: Government Code §54956.9(a); one case; City of Lodi v. Michael C.
Donovan, an individual: Envision Law Group. LLP, et al., San Joaquin County Superior
Court, Case No. CV025569
h) Actual litigation: Government Code §54956.9(a); one case; Environmental Forensic
Investigations. Inc. v. City of Lodi, San Joaquin County Superior Court,
Case No. CV -024899
i) Actual litigation: Government Code §54956.9(a); one case; Farr Associates v. City of Lodi,
San Joaquin County Superior Court, Case No. CV -025075
j) Actual Litigation: Government Code §54956.9(a); one case; Magellan Environmental. Inc. v.
City of Lodi, San Joaquin County Superior Court, Case No. CV -024898
C-3 ADJOURN TO CLOSED SESSION
At 5:30 p.m., Mayor Beckman adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 6:57 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:01 p.m., Mayor Beckman reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions.
In regard to Items C-2 (a), (b), (h), and Q), negotiating direction was received.
Items C-2 (c), (d), (e), (f), (g), and (i) were not discussed.
Continued May 4, 2005
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of May 4, 2005, was called to order by Mayor Beckman at
7:01 p.m.
Present: Council Members — Hansen, Hitchcock, Johnson, Mounce, and Mayor Beckman
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Blackston
B. INVOCATION
The invocation was given by Pastor Michael Malone, Ebenezer Congregational Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Beckman.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 (a) Mayor Beckman presented a proclamation to Mark Chandler, Executive Director of the
Lodi -Woodbridge Winegrape Commission, proclaiming the month of May 2005 as "Zinfandel
Month" in the City of Lodi.
D-2 (b) Mayor Beckman presented a proclamation to Brad Jones, Veteran Representative with the
Employment Development Department, proclaiming the month of May 2005 as "Veteran
Appreciation Month" in the City of Lodi.
D-2 (c) Mayor Beckman presented a proclamation to Senior Civil Engineer, Charlie Swimley,
proclaiming the week of May 15 — 21, 2005, as "National Public Works Week" in the City of
Lodi.
D-2 (d) Mayor Beckman presented a proclamation to Police Chief Adams proclaiming the month of
May 2005 as `Peace Officer Memorial Month" in the City of Lodi.
D-3 (a) Police Chief Adams and Assistant Animal Services Officer, Janette deJong, reported that
$500 was donated to People Assisting Lodi Shelter (PALS) from Lodi High School Senior,
Francesca Stonum, for the purchase of animal health care equipment.
D-3 (b) Janet Hamilton, Management Analyst, gave a presentation regarding the Celebration on
Central event to be held on Sunday, May 15, 2005.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Hansen, Beckman second, unanimously approved the following items hereinafter
set forth except those otherwise noted:
E-1 Claims were approved in the amount of $2,655,445.08.
E-2 The minutes of March 8, 2005 (Shirtsleeve Session), March 8, 2005 (Special Meeting), April
5, 2005 (Shirtsleeve Session), April 5, 2005 (Special Meeting), April 12, 2005 (Shirtsleeve
Session), and April 12, 2005 (Special Meeting) were approved as written.
E-3 Received the report of the sale of scrap metal in the amount of $3,270.44.
2
Continued May 4, 2005
E-4 Approved the plans and specifications and authorized advertisement for bids for one digital
micro -ohmmeter.
E-5 Approved the specifications and authorized advertisement for bids for Maintenance of Lodi
Consolidated Landscape Assessment District 2003-1 for Fiscal Year 2005-06.
E-6 Adopted Resolution No. 2005-84 approving the specifications, authorizing advertisement for
bids for sodium hydroxide for the White Slough Water Pollution Control Facility, Fiscal Year
2005-06, and authorizing the City Manager to award or reject bids.
E-7 Adopted Resolution No. 2005-85 authorizing the City Manager to purchase 384 solid-state
meters with Interval Data Module R300 from Itron, Inc., of Spokane, Washington, in the
amount of $32,500.
E-8 Adopted Resolution No. 2005-86 awarding the sole -source bid for the purchase and
installation of Fire Department radio base station emergency alerting system to Delta
Wireless, Inc., of Stockton, in the amount of $31,929.24.
E-9 Adopted Resolution No. 2005-87 authorizing MapGuide and AutoCad Software Subscription
Renewals for Public Works Engineering Division from DLT Solutions, Inc., for $6,354.02,
including tax, and appropriating funds.
E-10 Accepted improvements under "Blakely Park/Enze Pool Plastering Project, 1050 S.
Stockton Street" contract.
E-11 Adopted Resolution No. 2005-88 approving the encroachment/maintenance agreement for
public walkway at Ellerth E. Larson Elementary School, 2375 Giannoni Way, and directed
the City Manager and City Clerk to execute the agreement on behalf of the City.
E-12 Authorized the City Manager to execute agreement with Lodi Unified School District to
equally share salary and benefit expenses for four School Resource Officers.
E-13 Adopted Resolution No. 2005-89 approving consulting services agreement with
Borismetrics, Inc. in the amount of $40,000 to provide professional services to the Electric
Utility Department through June 30, 2006.
E-14 "Authorize the City Manager to execute a contract transferring responsibility for the Viacom
Outdoor (highway billboard) lease agreement from the City of Lodi to the Lodi -Woodbridge
Winegrape Commission" was removed from the Consent Calendar and discussed and
acted upon following approval of the Consent Calendar.
E-15 "Adopt resolution approving professional services agreement with LSA Associates, Inc. for
planning services for various planning functions in the Community Development Department
and authorize the City Manager to sign the agreement in the amount of $8,100 per month
for 90 hours of guaranteed service and, if required, time and material costs of additional
service" was removed from the Consent Calendar and discussed and acted upon
following approval of the Consent Calendar.
E-16 Adopted Resolution No. 2005-90 approving Traffic Signal and Lighting Agreement
amendment for maintenance and electrical energy cost sharing at Westgate Drive and
Highway 12 and Cherokee Lane and Harney Lane and authorizing the City Manager to
execute the amendment and future amendments.
E-17 "Adopt resolution approving pedestrian safety improvements on Tokay Street at Virginia
Avenue and appropriating funds ($3,000)" was removed from the Consent Calendar and
discussed and acted upon following approval of the Consent Calendar.
Continued May 4, 2005
E-18 Adopted Resolution No. 2005-91 approving agreement for Property Tax Allocation Upon
Annexation with County of San Joaquin and agreement for the Administration of the County
Facilities Fee Program with County of San Joaquin and authorizing the Mayor and the City
Manager to execute the agreements on behalf of the City.
E-19 Set public hearing for May 18, 2005, to consider the appeal from Lowe's HIW, Inc.,
regarding the Planning Commission's decision of April 13, 2005, pertaining to the
application of design standards for Large Retail Establishments to its Lodi store.
E-20 Set public hearing for June 1, 2005, to consider adopting the 2004 California Electrical
Code.
E-21 Set public hearing for June 1, 2005, to consider resolution establishing an area of benefit
and reimbursable costs ($30,000) for acquisition of property located at 14320 North Lower
Sacramento Road (APN 058-140-13).
E-22 Set public hearing for June 1, 2005, to adopt by resolution the 2005-06 Financial Plan and
Budget and the 2005-06 Appropriations Spending Limit.
ACTION ON ITEMS REMOVED FROM THE CONSENT CALENDAR
E-14 "Authorize the City Manager to execute a contract transferring responsibility for the Viacom
Outdoor (highway billboard) lease agreement from the City of Lodi to the Lodi -Woodbridge
Winegrape Commission"
In response to Council Member Hansen, Mark Chandler, Executive Director of the Lodi -
Woodbridge Winegrape Commission, stated that the Commission has a long-term contract
with the Sacramento airport for advertising signs. In reference to the highway billboards, he
felt that they were valuable enough to warrant continuation of the contracts and the
Commission would take over payment until the City is in a better financial condition.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
authorized the City Manager to execute a contract transferring responsibility for the Viacom
Outdoor (highway billboard) lease agreement from the City of Lodi to the
Lodi -Woodbridge Winegrape Commission
E-15 "Adopt resolution approving professional services agreement with LSA Associates, Inc. for
planning services for various planning functions in the Community Development Department
and authorize the City Manager to sign the agreement in the amount of $8,100 per month
for 90 hours of guaranteed service and, if required, time and material costs of additional
service"
Council Member Johnson noted that one of the individuals that the City is hiring has very
limited experience and questioned whether this would be the best person to work the front
desk in Community Development.
City Manager King replied that this person was identified as being compatible with existing
staff. Current staff had hoped to work on more complex projects and have a contract
employee help with the lighter work. He suggested that it proceed as planned and, if not
acceptable, a change can be made later.
Mayor Pro Tempore Hitchcock asked whether hiring an interim Community Development
Director had been considered, to which Mr. King answered in the affirmative; however, he
felt the approach taken would be more advantageous.
0
Continued May 4, 2005
MOTION / VOTE:
The City Council, on motion of Mayor Beckman, Mounce second, unanimously adopted
Resolution No. 2005-92 approving professional services agreement with LSA Associates,
Inc. for planning services for various planning functions in the Community Development
Department and authorizing the City Manager to sign the agreement in the amount of
$8,100 per month for 90 hours of guaranteed service and, if required, time and material
costs of additional service.
E-17 "Adopt resolution approving pedestrian safety improvements on Tokay Street at Virginia
Avenue and appropriating funds ($3,000)"
In reply to Council Member Mounce, Public Works Director Prima explained that a portion
of Transportation Development Act funding is earmarked for pedestrian and bicycle related
improvements.
Council Member Mounce stated that she had received several calls from people
complaining that there was not enough traffic control for children walking to school.
Mr. Prima pointed out that the cost to the traveling public of a stop sign would be that they
must stop 24 hours a day even when no one is in the crosswalk. The solutions selected for
intersections are site specific.
MOTION / VOTE:
The City Council, on motion of Council Member Mounce, Beckman second, unanimously
adopted Resolution No. 2005-93 approving pedestrian safety improvements on Tokay Street
at Virginia Avenue and appropriating funds in the amount of $3,000.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Hansen reported that he had traveled to Washington D.C. twice in the past
three months on behalf of the City to deal with energy issues and will be returning again in July.
He attended the Northern California Power Agency and the Northwestern Power Association
meeting in Washington D.C. on April 24. He stated that Congress passed an energy bill that
has been debated for over a decade. It has moved to the Senate and the goal is to have the
energy bill on the President's desk by September. Congressman Pombo has been very helpful
to Lodi regarding this matter. Mr. Hansen explained that the Federal and State government
have oversight of Lodi Electric Utility, which will increase the cost to consumers. Federal
energy legislation goals include: 1) developing a workable regional wholesale market; 2)
accountability and cost control for the Independent System Operator (ISO); 3) long-term
transmission rights at predictable rates; 4) ensure that pre-existing transmission rights are
respected; and 5) development of a transmission facility. He explained that new facilities are
not being developed because there is so much regulation that no one can afford it. In addition,
staff is working on reliability standards, consumer protections, and hydropower licensing
process reforms.
oo Council Member Mounce announced that Sue Thomas passed away recently and expressed
her condolences to the family. She noted that Ms. Thomas was civic minded, very active in the
community, and would be greatly missed. She welcomed newly appointed Wade Heath to the
Lodi Improvement Committee. She thanked Community Improvement Manager Joseph Wood
and Police Volunteer Supervisor Jeannie Biskup for their work with the Police Partners and the
new program, which assists Code Enforcement. Last Friday, Ms. Mounce welcomed the Good
Sam "Samboree" (recreational vehicle club) attendees at the Grape Festival grounds and on
Sunday she volunteered at the Street Fair.
Continued May 4, 2005
oo Council Member Johnson asked when the Council will receive a report on the San Joaquin
Council of Governments "One Voice" event, to which Council Member Hansen reported that it
would take place at the next Council meeting.
00 Mayor Pro Tempore Hitchcock stated that she would be attending the "National Day of Prayer"
tomorrow evening and invited others to do so as well.
00 Mayor Beckman reported that he had spoken with representatives of the County and Stockton
regarding reviving the Greenbelt 2x2x2 Committee and expected that a meeting would be
scheduled in the near future. It is desired that Community Development Directors and City
Managers from Lodi, Stockton, and the County also participate on the Committee.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
None.
PUBLIC HEARINGS
1-1 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office of the City Clerk, Mayor Beckman called for the public hearing to consider
and adopt resolution revising Community Development Department fees.
Community Improvement Manager, Joseph Wood, reported that the Community
Development Department is being transitioned away from General Fund reliance by
establishing a special revenue fund where fees generated will be directed toward supporting
the Department's activities. The Planning Division is 70% fee based, which for the coming
year equates to $350,000 in fees. The bes represent "fully loaded" costs, e.g. salaries,
overhead, vehicle maintenance, internal services, etc. He recalled that the Department's
proposed fee adjustments were outlined at the March 1 Shirtsleeve Session. Since that
time, staff determined that there was a need for an additional fee in the zoning plan check
category. It was originally proposed that a $350 fee would be charged for residential plan
check, which would have applied to new construction of a single-family dwelling as well as
additions, patio covers, etc. This has now been adjusted to $350 for commercial/industrial
plan check, $100 for residential plan check, and $50 for review of an addition or accessory
structure. In the Building and Safety Division, the valuation table has changed for cost per
square foot for single-family residence. There will be no change in commercial valuations;
however, a decrease in permit fees for residential will equate to a $100,000 reduction and a
fund reserve of 10%. In the Community Improvement Division, the existing fee schedule
identifies a non-compliance inspection fee of $100 for the second inspection and $300 for
the third and subsequent inspections. This involves Housing and Dangerous Building Code
cases where a permit is necessary for corrections. The fee now proposed for reinspections
will be increased from $40 an hour to $100 an hour, which represents the "fully loaded"
cost. In summary, there will be $175,000 increase in revenue in the Planning Division, a
$100,000 decrease in revenue in the Building Division, and in the Community Improvement
Division there will be an increase of $4,500 to $7,000 annually due to the code compliance
permit fee.
In response to Council inquiries, Mr. Wood reported that the Department's transition to the
special revenue fund would be monitored closely to make sure revenues are in line with
staffs projections. The ratios established for each division are: 1) 90% for the Building
Division; 2) 70% for the Planning Division, and 3) 30% for Community Improvement. In
reference to Code Enforcement, a proposal for new penalty fees will be brought to Council
in the future and is not associated with the code compliance permit fee.
Hearing Opened to the Public
oo Ann Cerney stated that she perceives this as a form of taxation by fees. She
expressed support for the tiered fees related to plan check for commercial, residential,
and accessory structures. She encouraged Council to make decisions as
comprehensively as possible and to consider overall costs and less obvious expenses
that are incurred as part of development activities.
3
Continued May 4, 2005
Public Portion of Hearing Closed
Council Member Hansen commented that the County is considering an agricultural
mitigation fee and he suggested that Lodi might want to do likewise, to which Mayor
Beckman concurred.
MOTION:
Council Member Hansen made a motion, Beckman second, to adopt Resolution No. 2005-
94 approving fee increases and establishing new fees for various City services and
programs currently offered by the Community Development Department.
DISCUSSION:
Mayor Pro Tempore Hitchcock expressed concern regarding changing fees based on the
number of applications received and hoped that the use of contract employees is adjusted
according to the workload.
VOTE:
The above motion carried by a unanimous vote.
J. COMMUNICATIONS
J-1 On recommendation of the City's contract administrator and Human Resources staff, the
City Council, on motion of Mayor Beckman, Hitchcock second, unanimously rejected the
following claims:
a) Catherine Conrado, date of loss 12/2/04
b) Sanborn Chevrolet, date of loss 3/11/05
J-2 The following postings/appointments were made:
a) The City Council, on motion of Mayor Beckman, Mounce second, unanimously
directed the City Clerk to post for the following expiring terms:
Greater Lodi Area Youth Commission
Student Appointees:
Ricky Gill
Term to expire August 30, 2005
Gabi del Castillo
Term to expire August 30, 2005
Elisa Villarreal
Term to expire August 30, 2005
Brent Dutra
Term to expire August 30, 2005
b) The City Council, on motion of Mayor Pro Tempore Hitchcock, Beckman second,
unanimously made the following appointment:
Lodi Arts Commission
Donald Rosebaugh Term to expire July 1, 2006
J-3 Miscellaneous — None
K. REGULAR CALENDAR
K-1 "Adopt resolution authorizing fie City Manager to enter into a retainer fee agreement with
Wilcox, Miller & Nelson for the recruitment of a Community Development Director ($9,200)"
City Manager King recommended that the City engage the services of an executive
recruiting firm to assist with the development of an applicant pool for the position of
Community Development Director. He stated that recruitment of qualified candidates is
becoming more competitive and candidates tend to lean toward entities that have the
credibility that an executive recruiting firm provides. Human Resources received five
7
Continued May 4, 2005
proposals from executive recruiting firms, and it is recommended that Wilcox, Miller &
Nelson be retained for a fee of $9,200. Mr. King acknowledged that two of the firms
solicited had placed him in previous positions and he confirmed that he had no professional
relationship with the firm of Wilcox, Miller & Nelson.
In answer to Mayor Pro Tempore Hitchcock, Mr. King explained that a neutral third party
provides information to applicants, makes them feel comfortable, and increases the
propensity of selective candidates submitting an application.
Kirk Evans, Risk Manager, added that the firm will also prepare a professional brochure,
distribute it throughout the state, and make calls to prospects who they feel would be well
suited for the position.
Council Member Johnson questioned whether the firm should also be retained to conduct
background checks and screen the applications.
Mr. King explained that there were three stages to the recruitment process: 1) development
of the candidate pool, 2) interview process, and 3) background check. The firm will provide
a tiered list of applicants ranked by qualifications. He anticipated conducting a multiple
panel interview process with the top candidates, from which the City Manager would make
the final selection from the highest ranked two or three individuals.
Council Member Mounce felt that City staff was capable of handling the recruitment for this
position. Ms. Mounce stated that she was pleased with Mr. King; however, she was
disappointed with the recruitment process and tactics undertaken to fill the City Manager
position. For this reason, Ms. Mounce stated that she would not support this request.
Council Member Hansen noted that background checks are more difficult today and
suggested that it might be beneficial to have a professional firm handle the process.
MOTION/ VOTE:
The City Council, on motion of Mayor Pro Tempore Hitchcock, Beckman second, adopted
Resolution No. 2005-95 authorizing the City Manager to enter into a retainer fee agreement
with Wilcox, Miller & Nelson for the recruitment of a Community Development Director in
the amount of $9,200. The motion carried by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Johnson, and Mayor Beckman
Noes: Council Members — Mounce
Absent: Council Members — None
K-2 "Adopt resolution authorizing the City Manager to execute a reimbursement agreement with
Frontier Community Builders for outside planning services related to the Westside and
Southwest Gateway Annexation projects and associated development applications"
City Manager King explained that this is an advance agreement to provide for an outside
planning service to process an application related to the Westside and Southwest Gateway
annexation projects. The application proposal pending before the City involves a variety of
different elements including an annexation, growth allocation, and land use entitlements.
Mr. King stated that it would be difficult for staff to process the application in a timely
manner given the requirements of the Permit Streamlining Act, while maintaining an
adequate workforce to provide for day-to-day development activities that come forward. The
proposed agreement states that the applicant will pay the City's cost to hire an outside
planning firm. The City retains control of the planner, the work, the selection, and the work
product. The agreement contains two components: 1) planning work and 2) legal service.
A reserve fund with no less than $30,000 will be maintained by Frontier Community Builders
throughout the duration of the agreement.
Continued May 4, 2005
Mayor Pro Tempore Hitchcock expressed concern that these projects were being fast
tracked. She pointed out that the General Plan needs to be updated and the Environmental
Impact Report (EIR) was done in 1989. She felt that the City has changed so dramatically
since that time that the documents were no longer valid. She was fearful that huge
mistakes might be made in this process without having the expertise of a Community
Development Director.
Mr. King noted that staff had not yet determined what the appropriate level of environmental
documentation should be for the project and further analysis would be required to determine
if the initial study was adequate.
Council Member Mounce agreed with Ms. Hitchcock, stating that the EIR is inadequate,
there is no plan for a greenbelt or how to pay for it, and low-income housing needs to be
addressed. She preferred that the General Plan update be completed before a decision is
made to annex 500 acres of farmland.
Mr. King explained that the land in question is currently contained in the City's General
Plan and sphere of influence. The City has accepted the application and has an obligation
to respond.
Council Member Hansen pointed out that approving this request does not approve the
project.
Mayor Beckman asked that the topic of an agricultural mitigation fee be placed on an
agenda in the near future for discussion. He noted that the project proponents may also
end up paying regional transportation impact fees and agricultural mitigation fees.
MOTION:
Council Member Hansen made a motion, Beckman second, to adopt Resolution No. 2005-
96 authorizing the City Manager to execute a reimbursement agreement with Frontier
Community Builders for outside planning services related to the Westside and Southwest
Gateway Annexation projects and associated development applications.
DISCUSSION:
In answer to Council Member Johnson, City Attorney Schwabauer reported that he drafted
the proposed agreement and assured Council that it does not grant any entitlements.
Council Member Mounce stated that though she was not in support of the project as she
currently understood it, she would support the motion so that taxpayers would not be
further burdened for the cost of planning services.
PUBLIC COMMENTS:
oo Ann Cerney stated that she was speaking on behalf of herself and Citizens for Open
Government. She felt that the City was not ready to take action on this matter and
believed there was a reasonable basis to put the land use project in abeyance without
violating the Permit Streamlining Act.
Mayor Pro Tempore Hitchcock questioned the necessity for this action because authority
now exists to hire contract employees when necessary and to charge Community
Development fees to cover costs.
VOTE:
The motion carried by the following vote:
Ayes: Council Members — Hansen, Johnson, and Mayor Beckman
Noes: Council Members — Hitchcock and Mounce
Absent: Council Members — None
E
Continued May 4, 2005
K-3 "Adopt resolution approving professional services agreement with LSA Associates, Inc. for
processing Frontiers Community Builders Development land use applications and related
annexations and authorize the City Manager to sign the agreement ($84,348)"
City Manager King recommended that Council approve the agreement with LSA Associates
to process the land use applications.
PUBLIC COMMENTS:
oo Ann Cerney commented that issues related to affordable housing have not been
addressed. In addition, she noted that this matter had not been considered by the
Planning Commission.
Mayor Beckman distributed to Council a copy of the League of California Cities President's
Message, which stated that the number one goal is to expand the housing supply and
affordability (filed).
Mayor Pro Tempore Hitchcock did not believe that the proposed projects would provide
affordable housing.
MOTION / VOTE:
The City Council, on motion of Council Member Johnson, Beckman second, adopted
Resolution No. 2005-97 approving professional services agreement with LSA Associates,
Inc. for processing Frontiers Community Builders Development land use applications and
related annexations in the amount of $84,348 and authorizing the City Manager to sign the
agreement. The motion carried by the following vote:
Ayes: Council Members — Hansen, Johnson, and Mayor Beckman
Noes: Council Members — Hitchcock and Mounce
Absent: Council Members — None
RECESS
At 9:19 p.m., Mayor Beckman called for a recess, and the City Council meeting reconvened at 9:30
p.m.
K. REGULAR CALENDAR (Continued)
K-4 "Presentation of the City Manager's Recommended Draft Fiscal Year 2005-06 Budget and
Financial Plan"
City Manager King reported that the 2005-06 Budget and Financial Plan would be
distributed to Council within the next day cr two. He stated that the principle objective of
this year's budget was to stabilize the General Fund and not further deplete reserves. Staff
intends to maintain the current level of services to the public, though responsiveness and
quality of services may be reduced. A framework was established to meet the goal of a
minimum 15% (of operating costs) reserve standard for the General Fund and all utilities.
The "All Funds" expenditure is $158,365,000. Electric Utility accounts for 41% of the
expenditures, while the General Fund amounts to 28%. Human Resources has been
eliminated as a department and is now a division of the City Manager's Office. It is
recommended that five contract positions be added as full-time authorized positions. It is
proposed that the General Fund budget in 2005-06 be $43,843,000 (for expenditures and
revenues). This is $4.5 million higher than the 2004-05 expenditure budget; however, if the
transfers to other funds ($3.6 million) were removed, the increase to expenditures would
amount to only 2.6%. The General Fund balance projected for June 30, 2005, is
$1,565,100 of unrestricted, undesignated money. The same amount or more is projected
for the end of the 2005-06 fiscal year. Tax revenue represents the most significant portion
of the budget. There has been an increase in property tax and a decrease in sales tax.
The State is holding back one-quarter of Lodi's sales tax and reimbursing the City the same
10
Continued May 4, 2005
amount with property tax, which is to allow the State to sell financial recovery bonds. Staff
will track the true property and sales tax independently. There is an overall increase in
General Fund revenue of 14%. In 2004-05, actual revenues are projected to exceed the
original budget projection by nearly $2 million. Revenues are projected to increase in 2005-
06 by $5.5 million over 2004-05 figures. The Police Department accounts for 30% of
General Fund expenditures, and Fire Department expenditures amount to 18%. The
category of "Non -Departmental" is where transfers from the General Fund to other
departments are accounted for. It is recommended to maintain 29 vacant positions through
2006-07, which represents 8% of the workforce. In 2004-05, the General Fund expenditure
attributed to the Community Development Department amounted to $633,000, and in 2005-
06 the projected amount is $350,000. The Library has a $757,000 reserve, which amounts
to 47% of its operating costs. For this reason, it is proposed that 2005-06 General Fund
expenditures toward the Library remain consistent with the 2004-05 level. 2005-06
Community Promotions funding will also remain consistent with 2004-05 levels, with the
exception of funding for outdoor billboards. The Voluntary Time Off program will be
terminated, as it is accumulating an unfunded liability. The General Fund will be paying
$1.7 million in debt service. Personnel costs represent 30% of the entire City budget and
77% of the General Fund budget. Of personnel costs, benefits represent 38%, retirement
15%, and health insurance 12%. Expenditures for the Water Utility in 2005-06 are
projected at $8,053,070, with unrestricted, undesignated funds at the end of the fiscal year
being $269,000. The Wastewater Utility is projected to have an unrestricted, undesignated
fund balance of just oaer $2 million at the end of this year. Wastewater Utility expenditures
will total $16,644,000. Electric Utility is anticipated to have an unrestricted, undesignated
fund balance of $6 million. Included in that amount is money being returned from the
General Fund that was borrowed from Electric Utility. Due to the cost of bulk power
purchases, it is anticipated that the Electric Utility will be in a deficit position at the end of
fiscal year 2005-06 in the amount of $2,198,000. In 2004-05, the City budgeted
$32,650,000 to purchase bulk power; however, actual expenditures were $36,730,000. In
2005-06, bulk power purchases are budgeted at $41,000,000.
In answer to Council inquiries, Mr. King reported that the transfer includes an in -lieu transfer
and a direct transfer for services, which are made throughout the year. He explained that
when the budget was prepared for 2004-05 there was an amount estimated for service
charges and transfers from capital reserve that was offset against expenses. There was an
amount budgeted under Other Sources and Uses of $3,026,350.
In reference to the $3,026,350 Other Sources and Uses amount, Electric Utility Director
Vallow stated that there were "a lot of pieces to it and some made sense and others did
not."
Finance Director Krueger explained that $1.4 million (of the $3,026,350 Other Sources and
Uses amount) was related to capitalization of workforce type activities, $2 million of the
amount was related to an adjustment for fuel cost, which may have been anticipated
revenue increases, and $300,000 was an allocation of the total amount of loss associated
with the Vehicle License Fee take away by the State.
Council Member Johnson expressed disappointment with the information provided thus far
related to Electric Utility's financial situation and looked forward to getting a complete
explanation in the future.
Mr. King outlined the following future issues:
➢ Work on General Fund reserve goals;
➢ Pay attention to maintenance and replacement and bring to Council a plan on how to
address future maintenance;
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Continued May 4, 2005
➢ If the housing market should drop, Proposition A provides for an appeals method — this
will be tracked and monitored; and
➢ A new Governmental Accounting Standard Board rule requires that cities accrue retiree
health care costs, which is presently a developing unfunded liability.
Mayor Pro Tempore Hitchcock stated that she would like to see the difference between
revenues and expenses applied to the 15% reserve.
MOTION / VOTE:
There was no Council action taken on this matter.
K-5 "Approve expenses incurred by outside counsel relative to the Environmental Abatement
Program litigation ($223,644.83)"
City Attorney Schwabauer reviewed invoices as detailed in the staff report (filed).
MOTION / VOTE:
The City Council, rn motion of Council Member Hansen, Mounce second, unanimously
approved the expenses incurred by outside counsel, Folger, Levin & Kahn, relative to the
Environmental Abatement Program litigation in the amount of $223,644.83, as detailed
below:
Folger Levin & Kahn - Invoices Distribution
Total Distribution
Matter Invoice Date Description Amount 171399.7323 183453.7323
No. No.
2002 87116 02/28/05 City of Lodi v Lehman 13,581.32 6,790.66 6,790.66
(2,437.50) (1,218.75)
2003 87117 02/28/05 Farr Associates v 2,540.42 1,270.21
City of Lodi
2005 87118 02/28/05 Environmental Forensic 14,448.50 7,224.25
v City of Lodi
2006 87067 02/28/05 Magellan Env. v 1,995.00 997.50
City of Lodi
8002 87119 02/28/05 People v M&P
Investments
8003 87120 02/28/05 Hartford Insurance
Coverage Litigation
8006 87121 02/28/05 Fireman's Fund/
Unigard Appeal
8007 87122 02/28/05 Regulatory Agency
Orders
108,378.97 54,189.49
(6,414.00) (3,207.00)
37,511.73 18,755.87
41,172.18 20, 586.09
4,190.97 2,095.49
(1,218.75)
1,270.21
7,224.25
997.50
54,189.49
(3,207.00)
18, 755.87
20,586.09
2,095.49
8008 87072 02/28/05 Envision Law Group 9,072.24 4,536.12 4,536.12
(395.00) (197.50) (197.50)
23.644.83 111.822.42 111.822.4
12
Continued May 4, 2005
L. ORDINANCES
None.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
10:57 p.m.
ATTEST:
Susan J. Blackston
City Clerk
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