HomeMy WebLinkAboutMinutes - June 15, 2005LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, JUNE 15, 2005
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of June 15, 2005, was called to order by Mayor Beckman
at 6:00 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) 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
b) 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
C) 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
d) 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
e) 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
C-3 ADJOURN TO CLOSED SESSION
At 6:00 p.m., Mayor Beckman adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 6:40 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:00 p.m., Mayor Beckman reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions.
In regard to Item C-2 (a), (b), (c), and (d), Council approved the Folger, Levin & Kahn litigation
budget for the period of July through December 2005 in an amount up to $2.1 million.
In regard to Item C-2 (e), Council approved a limited waiver of the closed session privilege on an as
needed remedy basis, giving the City Attorney authority to handle it as necessary, to litigate the
case against Michael Donovan and Envision Law Group.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of June 15, 2005, was called to order by Mayor Beckman at 7:00
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
Continued June 15, 2005
B. INVOCATION
The invocation was given by Reverend Richard Matters, St. John the Baptist Episcopal Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Beckman.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 Proclamations — None
D-3 (a) Pam Bechill, representing the Lodi Area All Veterans Plaza Foundation, presented a check
in the amount of $10,000 to Mayor Beckman on behalf of the City toward the quarterly
payment on loan from the City of Lodi. She noted that this was the tenth payment making
a total contribution to date of $100,000.
D-3 (b) John Ledbetter, Chairman of the Hutchins Street Square Foundation, presented a monetary
gift of $100,000 to Mayor Beckman on behalf of the City toward payment of the Hutchins
Street Square Performing Arts Center. In addition, he presented a check for $25,000 as the
Foundation's share of the administration at the Square. He reported that the membership
program has grown to 280 single and family memberships and five corporate members.
Over 6,000 bricks have been sold, raising over $300,000. Mr. Ledbetter reviewed upcoming
events and projects.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Mayor Pro Tempore Hitchcock, Mounce second, unanimously approved the following items
hereinafter set forth:
E-1 Claims were approved in the amount of $1,777,952.28.
E-2 The minutes of April 20, 2005 (Regular Meeting), May 10, 2005 (Shirtsleeve Meeting), May
24, 2005 (Shirtsleeve Session), and May 31, 2005 (Shirtsleeve Session) were approved as
written.
E-3 Authorized the City Manager to approve inventory replenishment orders in excess of $5,000
for Water and Wastewater utility maintenance and repair items purchased during July 2005.
E-4 Adopted Resolution No. 2005-118 authorizing the submittal of two Safe Route to School
grant applications in the total amount of $197,000 to the California Department of
Transportation.
E-5 Adopted Resolution No. 2005-119 authorizing the City Manager to execute a cooperative
agreement with San Joaquin Council of Governments for the City of Lodi Grapeline Express
operating services for fiscal years 2005-06 to 2007-08.
E-6 Accepted the memorial bench and plaque donation for Vinewood Dog Park from Yvonne
Perrin in honor of Jerry Perrin.
E-7 Authorized funds from the Protocol Account and directed the City Clerk to coordinate the
Council -hosted reception honoring members of all City Council -appointed boards,
commissions, committees, and task force groups for an approximate amount of $2,400.
2
Continued June 15, 2005
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Hansen stated that he was adamantly opposed to the recent proposal to build
an Indian gaming casino on the outskirts of Lodi. He was disappointed at the poor turnout last
night at the Veterans Plaza event and hoped that more people would participate in the future.
00 Mayor Pro Tempore Hitchcock commended Community Center Director Silvestre and the Arts
Commission for the excellent Art on the Square event and expressed her surprise that more
people did not attend the free event.
00 In reference to the Indian gaming casino proposal, Council Member Johnson stated that
because of the City's current financial situation, any meaningful opportunity to legitimately raise
revenue should be considered.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo City Manager King reported that the City is currently accepting applications for the position of
Community Development Director. It is being advertised through print publications, on-line, and
direct mail. The closing date for applications is July 8, and Mr. King expected to have
applications presented to him by the executive search firm on July 12. He stated that on June
13 a meeting took place with representatives of the Department of Justice, the FBI, Police Chief
Adams, Police Captain Manetti, and himself to discuss issues related to the ongoing
investigation effecting Lodi. He thanked law enforcement officials for their diligence and the
work they are doing on behalf of protecting the country and citizens.
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 continued public hearing to
adopt by resolution the 2005-06 Financial Plan and Budget and the 2005-06 Appropriations
Spending Limit.
City Manager King recalled that presentations regarding the 2005-06 Financial Plan and
Budget were heard at the meetings of May 4, May 11, May 18, May 24, and June 1. He
recommended that Council approve the budget as presented.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
Mayor Beckman stated that he would like to remove all the vacant positions from the
budget.
Council Member Hansen preferred to leave the vacant positions in the budget, as he felt it
gave the City Manager the flexibility he needs. He asked the City Manager to explain why
it is necessary to make a transfer from the Rate Stabilization Fund to the Electric Revenue
Fund.
Mr. King explained that when the City issued its previous bonds there was money held in
reserve to protect against rate fluctuations. The cost of bulk power purchases has
increased during the course of 2004-05. The transfer is being recommended in order to
provide for the coverage factor. It will also help to postpone any liquidity or cash needs the
City may have with regard to Electric Utility. It will be necessary to replenish the reserve;
however, the transfer is needed now to ensure the Utility avoids a technical default based
upon what was told to investors of the 1999-2002 bonds.
Continued June 15, 2005
Finance Director Krueger reported that the Rate Stabilization Fund was established several
years ago and now has a balance of $6.3 million. After the transfer, the Fund will have a
remaining balance of $1.8 million. In reference to the proposed overall budget total,
Mr. Krueger explained that adjustments were made since the original amount was
submitted to Council and the correct figure is $159,133,460.
Mayor Pro Tempore Hitchcock stated that the best argument against eliminating vacant
positions from the budget is that they occurred through attrition rather than through
prioritization. Leaving the positions in the budget allows the City Manager flexibility to
make determinations for filling positions based on what is most important to efficiently and
effectively run the City.
In answer to Council Member Johnson, Mr. King stated that the Council does not have to
approve filling an authorized unfilled position.
Council Member Johnson stated that he was not in support of removing vacant positions
from the budget. He asked whether the City can use money dedicated to infrastructure
replacement, toward the Environmental Abatement Program (EAP).
City Attorney Schwabauer answered in the affirmative and noted that the EAP is a program
within the water/wastewater accounts. Staff will be recommending that the monies be paid
back to the infrastructure replacement account.
Council Member Mounce asked that Council be provided with accountings of what money is
taken from the infrastructure program to fund the EAP. She wanted to ensure that the
infrastructure program continues and funding is monitored.
MOTION #1 / VOTE:
The City Council, on motion of Council Member Hansen, Johnson second, unanimously
adopted Resolution No. 2005-120 adopting the 2005-06 Operating and Capital Improvement
Budget for the fiscal year beginning July 1, 2005 and ending June 30, 2006, with the
exclusion of the Lodi Conference and Visitors Bureau element, and further epproving the
2005-06 Appropriation Spending Limit.
NOTE: Due to a potential conflict of interest stemming from his wife's employment with the
Lodi Conference and Visitors Bureau, Mayor Beckman abstained from discussion and
voting on this matter and vacated his seat at dais at 7:45 p.m.
MOTION #2 / VOTE:
The City Council, on motion of Council Member Mounce, Johnson second, adopted
Resolution No. 2005-121 approving funding in the amount of $123,500 to the Lodi
Conference and Visitors Bureau for fiscal year 2005-06. The motion carried by the following
vote:
Ayes: Council Members — Hansen, Hitchcock, Johnson, and Mounce
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — Mayor Beckman
Mayor Beckman returned to his seat at 7:46 p.m.
1-2 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office of the City Clerk, Mayor Beckman called for the public hearing to consider
resolutions adopting Final Engineer's Annual Levy Report for Lodi Consolidated Landscape
Maintenance Assessment District Iib. 2003-1, Fiscal Year 2005-06, and ordering the levy
and collection of assessments.
al
Continued June 15, 2005
Public Works Director Prima reported that, over the past two years, seven zones of Lodi
Consolidated Landscape Maintenance Assessment District No. 2003-1 were formed. The
scope of maintenance activities funded by the District include: 1) landscape and irrigation,
2) masonry block walls, 3) street parkway trees, and 4) public park areas. It is
recommended that Council approve the Final Engineer's Report and order the levy and
collection of the assessments.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
adopted the following resolutions:
00 Resolution No. 2005-122 approving the Final Engineer's Annual Levy Report for the Lodi
Consolidated Landscape Maintenance District No. 2003-1, fiscal year 2005-06; and
00 Resolution No. 2005-123 ordering the levy and collection of assessments within the
Lodi Consolidated Landscape Maintenance District No. 2003-1, fiscal year 2005-06.
1-3 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office of the City Clerk, Mayor Beckman called for the public hearing to consider
Reimbursement Agreement RA -05-01 establishing an area of benefit and reimbursable
costs for public improvements for Legacy Estates, Unit No. 1, Tract No. 3260.
Public Works Director Prima reported that the developer, FCB Building Partners, for the
Legacy Estates project installed a pipeline in Harney Lane that serves its project and was
oversized to serve properties to the west. When those properties develop and connect to
the sewer they will pay back their prorated share of the portion of this project.
In answer to Council Member Mounce, Mr. Prima confirmed that Henderson Village was not
included in this assessment.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
adopted Resolution No. 2005-124 establishing an area of benefit and reimbursable costs for
public improvements for Legacy Estates, Unit No. 1, Tract No. 3260.
J. COMMUNICATIONS
J-1 On recommendation of the City's contract administrator and Human Resources staff, the
City Council, (n motion of Mayor Beckman, Mounce second, unanimously rejected the
following claims:
a) The Salvation Army, date of loss 2/5/04
b) Town & Country Park Association, date of loss 12/25/03
5
Continued June 15, 2005
J-2 The following postings/appointments were made:
a) The City Council, on motion of Mayor Beckman, Mounce second, pulled Item
J -2a, "Post for vacancy on the Lodi Animal Shelter Task Force," from the agenda.
Note: This item was subsequently continued to July 6, 2005.
b) The City Council, on motion of Council Member Mounce, Johnson second,
unanimously made the following appointments:
Lodi Arts Commission
Judy Bader
Term to expire July 1, 2008
Rick Buchler
Term to expire July 1, 2008
John Callahan
Term to expire July 1, 2008
Cynthia Inman
Term to expire July 1, 2008
Lodi Improvement Committee
Brad Eilert
Term to expire March 1, 2007
Planning Commission
William Cummins
Term to expire June 30, 2009
Doug Kuehne
Term to expire June 30, 2009
Mayor Pro Tempore Hitchcock stated that former Planning Commissioners Dave
Phillips and Tim Mattheis did an excellent job on the Commission. As the action
this evening eliminated Dave Phillips from the Greenbelt Task Force,
Ms. Hitchcock asked that Planning Commissioner Gina Moran be appointed to fill
the vacancy.
J-3 Miscellaneous
a) City Clerk Blackston presented the cumulative Monthly Protocol Account Report
through May 31, 2005.
K. REGULAR CALENDAR
K-1 "Adopt resolution ratifying the San Joaquin Council of Government's Annual Financial Plan
for fiscal year 2005-06"
Steve Dial, Director of Administration/Chief Financial Officer of the San Joaquin Council of
Governments (SJCOG), reported that its 2005-06 annual financial plan totals $5.2 million,
which is a 16% increase over its 2004-05 budget. There is no increase in SJCOG staff;
however, consultant services for engineering, planning, and legal services was increased
nearly 42%. SJCOG is anticipating a $300,000 project to do a feasibility study on State
Route 130, which would connect the west side of the San Joaquin Valley at 1-5 into the
Santa Clara Valley area.
MOTION/ VOTE:
The City Council, on motion of Council Member Mounce, Beckman second, unanimously
adopted Resolution No. 2005-125 ratifying SJCOG's Annual Financial Plan for fiscal year
2005-06.
K-2 "Consider approval of street closures on Rose Street between Oak Street and Walnut
Street and on Walnut Street between Rose Street and the Hutchins Street Square Parking
Lot and the use of the park area at Hutchins Street Square for the Family Faith Festival"
Public Works Director Prima reported that a request was received from Cheryl Biddle
McLachlan to close Rose Street between Oak and Walnut Streets and Walnut Street
between Rose Street and the Hutchins Street Square parking lot, and to have use of the
park area on the west side of Hutchins Street Square for the Family Faith Festival on
August 7. Mr. Prima noted that the City does not have a formal policy on street closures.
He recommended that the ten conditions listed in the staff report (filed) be included if the
request is approved.
Con
Continued June 15, 2005
PUBLIC COMMENTS:
co Cheryl Biddle McLachlan stated that the band would be located on the stage of the
lawn area and the music would end at 9:30 p.m. She noted that the Family Faith
Festival event had been held in downtown Lodi for the past three years and had drawn
as many as 15,000 people over the course of the day. The relocation request is being
made to allow more room for the concert, and because it is a summer event the grass
location is cooler than the street area downtown. Ms. McLachlan reported that she
spoke with 30 of the 44 residents surrounding the Hutchins Street Square location and
29 signed a petition of support to have the event at that location. Most of the residents
have alley access, so the street closure would not prevent them from getting in and out
of their property. She estimated that there would be 2,000 people per hour with 3,000
attendees at the stage area when the band is playing.
Community Center Director Silvestre reported that, typically, events at the Square
attract 3,000 to 5,000 people over the course of a day and it has been an impact to the
neighborhood. There are 200 parking spaces at the Square.
Mayor Beckman and Mayor Pro Tempore Hitchcock expressed concern about parking
and suggested that a shuttle be provided to and from the downtown parking garage.
In response to Council Member Johnson, Ms. McLachlan stated that she did not
believe the event would require both street closures.
Council Member Johnson suggested that the Square be filled before the streets were
closed and, if necessary, close Walnut Street so it impacts the residents the least, to
which Ms. McLachlan agreed.
00 Pastor Steve Jarrett spoke in support of the event and commented that it is recognized
nationally. He guaranteed Council that those involved in the Festival would make it a
positive community event.
Mayor Pro Tempore Hitchcock agreed that it would be preferable to close off Walnut Street
between Rose and Hutchins Streets.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Hitchcock, Beckman second,
unanimously approved street closures as requested with conditions as recommended by
staff (outlined in staff report) and to encourage Family Faith Festival organizers to arrange
the event so that only Walnut Street is closed.
City Manager King mentioned that staff would be drafting a policy for future Council
consideration related to a fee for renting the grounds of Hutchins Street Square, because
such events prevent the rental of the rest of the facility.
Mayor Pro Tempore Hitchcock suggested that a limitation on how many times per year
such events can be held at the Square also be included in the policy.
K-3 "Authorize the City Manager to execute Industrial Waste Connection Memorandum of
Understanding with Van Ruiten Family Winery as Downtown revitalization business
attraction incentive"
City Manager King stated that in the Downtown Revitalization Plan there is a lot of
discussion about selecting the right tenant mix of businesses fiat would attract people,
and to provide incentives to businesses to locate downtown. City staff involved with
economic development have formed a close association with wine industry representatives.
The proposed Memorandum of Understanding (MOU) was developed to create an incentive
for the Van Ruiten Family Winery to locate a tasting room in downtown Lodi. The Winery,
7
Continued June 15, 2005
which is outside the City limits, would obtain a discharge permit from the City with various
discharge limitations and conditions and would pay 150% of the standard rate for industrial
discharge, amounting to approximately $4,100 annually.
Public Works Director Prima noted that the winery industry is struggling with wastewater
requirements being imposed by be %gional Board. In this proposal, the Van Ruiten
Winery would be able to dispose of its winery waste, approximately one million gallons a
year, through the City's industrial waste line. He reported that the City now receives well
over 200 million gallons a year of industrial waste from businesses in the community and
processes 6.5 million gallons a day from the rest of the City. The Van Ruiten Winery would
bear the cost of the connection, the capacity fee for hooking up, and ongoing service
charges. The Lodi Municipal Code currently prohibits wastewater service to facilities or
properties outside the city limits. An amendment would be necessary to allow industrial
waste connections under limited circumstances. He noted that the pipeline from the City to
White Slough crosses the Van Ruiten property, so there would be no extension of public
utilities. There would be a private connection from the Van Ruiten facility to the pipeline
that exists now. There would not be domestic service. Mr. Prima stated that, commonly,
when sewer service is provided outside corporate boundaries the property owner signs a
pre -annexation agreement.
PUBLIC COMMENTS:
oo Ann Cerney commented that this issue was not considered by the Planning
Commission. She suggested that the environmental review process be applied to this
matter. She felt that any kind of infrastructure change, which indicates the intention of
the City to further develop the area, was a growth inducing factor.
Mr. King responded that the MOU acknowledges that the California Environmental
Quality Act may require environmental review of the project. He countered
Ms. Cerney's statement by saying that when a City provides infrastructure it has the
ability to control growth. He added that this has been realized in other areas of the
state where the control of infrastructure is secondary to zoning regulations.
00 Pat Patrick, President of the Lodi Chamber of Commerce, estimated that 500 wine
tasters visit the Lodi area each weekend. The Lodi Wine Country Marketing Committee
is working on directional signage, with the Lodi Arch logo that will be placed at various
intersections around the greenbelt area. He believed that a tasting room downtown
would promote the development of fine dining.
00 Mary Wallace, President of the Downtown Lodi Business Partnership (DLPB), reported
that the downtown area is fragile and businesses are leaving. The DLBP has partnered
with others to try and make Lodi a destination place. She felt that it was an excellent
idea to have tasting rooms in the downtown area.
00 Mark Chandler, Executive Director of the Lodi-Winegrape Commission, spoke in
support of the proposal and felt that its approval would be another demonstration of
Council's commitment to economic development.
Mayor Pro Tempore Hitchcock expressed concerns that the proposal is growth
inducing and sets a precedent for providing wastewater service outside the city limits.
She reported that the Greenbelt Task Force has been working on ideas to preserve
open space and agri-business in the Armstrong Road area. There is the possibility of a
specific planned annexation that could provide wastewater services to promote wineries
in the area. She was in favor of a tasting room in the downtown area and opposed to
the options listed in Section 3, f, ii) of the agreement.
Mayor Beckman asked how many wastewater customers there were now outside of the
city limits, to which Mr. Prima answered that there were none.
Continued June 15, 2005
In response to Council Member Hansen regarding the "precedent" issue, City Attorney
Schwabauer explained that Council can set the goals of the program, such as to
preserve open space and the wine grape industry around Lodi. This would be a
defensible goal and other projects, e.g. a County residential housing subdivision, would
not be consistent with it. In addition, because Van Ruiten Winery would have a
business in the downtown area, its waste is to serve a use within the City.
oo Mark Fedorchak, President of the Van Ruiten Winery, confirmed that its intention
was to create a downtown presence consistent with the MOU and to have a tasting
bar, wine tasting room sales, and wine -related merchandise such as cookbooks,
and culinary demonstrations. He felt that a tasting room is the missing piece in
the downtown area to attract more wine -oriented culinary type activities and to
make a positive statement about Lodi as a destination point.
Mr. King noted that the Van Ruiten's are considering teaming up with other
wineries for this tasting room.
Following discussion, it was agreed to make the following amendments to the MOU:
➢ Section 3, e - Non -Assignment: Winery may not sell capacity or accept wastewater
from other locations ` .9i+hnl i+ +hc cvorccc WFmttoo anAseAt of the -G4.
➢ Section 3, f, ii) -As ;_aA alte-Ma-five to opening a tasting roe I Y, at its Option,
Fastablishmap shall inah-de restauFants, win@ bars, and retail astablishmepts se lin-
t WIP19-
(Note: With deletion of all further references to this subsection.)
➢ Section 3, f, iii) - If this condition cannot be met within eighteen twelve months of
connection, Winery shall pay an annual downtown development and promotional in -lieu
fee in the amount of $40,000.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
authorized the City Manager to execute Industrial Waste Connection MOU, as amended,
with Van Ruiten Family Winery as Downtown revitalization business attraction incentive.
RECESS
At 9:40 p.m., Mayor Beckman called for a recess, and the City Council meeting reconvened at 9:51
p.m.
REGULAR CALENDAR (Continued)
K-4 "Adopt resolution transferring $4,500,000 from the Rate Stabilization Fund to the Electric
Revenue Fund and establishing a timeline to replenish the Rate Stabilization Fund"
Finance Director Krueger reported that there was a $4.5 million budget deficit in Electric
Utility due to bulk power purchases. The proposed resolution is intended to solve the deficit
and ensure the Utility is in compliance with debt service coverage requirements. The City
covenanted that it had 110% of its debt service covered with revenues versus expenditures.
This action will convey to rating agencies that the City intends to maintain a healthy rate
stabilization fund. A rate study will be completed by December 31, 2005.
In answer to questions posed by Mayor Pro Tempore Hitchcock, Mr. Krueger reported that
the Rate Stabilization Fund has been in existence for about ten years. Approximately four
years ago, it had a balance of "a couple million dollars." As a result of bond transactions,
the City replenished the fund up to $6 million. Over time, it earned interest and is now at
$6.3 million. City Manager King explained that staff felt it was appropriate that Council take
affirmative action to transfer the funds. He acknowledged that transfers were made in the
9
Continued June 15, 2005
past that did not involve Council action. He stated that the action being requested tonight
was developed in consultation with a financial advisor and bond counsel. Electric Utility
Director Vallow recalled that when he first began employment with Lodi he discovered that
there was $15 million to $17 million belonging to the City at the Northern California Power
Agency. Within the next two years, the money was brought into the City and placed in the
Operating account and the Rate Stabilization Fund. Due to the energy crisis, the funds
were drawn down. At the time of the 2002 Series A and B offering, the City took the four-
year liquidity facility amounting to $8.2 million, which was placed in the Operating account
and Rate Stabilization Fund. On June 30, 2005, the final installment of $1.1 million will be
made toward paying back the $8.2 million.
Mayor Pro Tempore Hitchcock asked whether the Rate Stabilization Fund was used for any
other purpose other than what it was intended for, to which Mr. Krueger replied that he did
not know. Ms. Hitchcock suggested that a written restriction be implemented so that use
is limited only to rate stabilization purposes.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
adopted Resolution No. 2005-126 transferring $4,500,000 from the Rate Stabilization Fund
to the Electric Revenue Fund and establishing a timeline to replenish the Rate Stabilization
Fund.
K-5 "Introduce ordinance amending Title 2, 'Administration and Personnel,' of the Lodi Municipal
Code by adding Chapters 2.13 and 2.14 relating to the City Clerk and City Attorney"
City Attorney Schwabauer reported that the proposed ordinance clarifies that the City
Attorney and City Clerk are to report directly to the Council without filter.
Mayor Beckman recalled that there was a problem previously with the former City Manager
and City Attorney not understanding that they both independently had a specific duty and
responsibility to come directly to Council with their ideas, concerns, and recommendations.
He felt that the Code amendment was beneficial to clarify the matter.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Hitchcock, Beckman second,
unanimously introduced Ordinance No. 1762 amending Title 2, "Administration and
Personnel," of the Lodi Municipal Code by adding Chapters 2.13 and 2.14 relating to the
City Clerk and City Attorney.
K-6 "Approve expenses incurred by outside counsel/consultants relative to the Environmental
Abatement Program litigation and other various cases being handled by outside counsel
($199,915.09), and approve Special Allocation covering general litigation matter expenses
($5,559.70)"
City Attorney Schwabauer reviewed invoices as detailed in the staff report (filed).
MOTION / VOTE:
The City Council, on motion of Council Member Mounce, Beckman second, unanimously
approved expenses incurred by outside counsel/consultants relative to the Environmental
Abatement Program litigation and other various cases being handled by outside counsel in
the amount of $199,915.09, and approved Special Allocation covering general litigation
matter expenses in the amount of $5,559.70, as detailed below:
10
Continued June 15, 2005
Folger Levin & Kahn - Invoices Distribution
City of Lodi
2006 87351 03/31/05 Magellan Env. v City of Lodi
8001 87347 03/31/05 General Advice -Environ Matters
8002 87375 03/31/05 People v M&P Investments
8003 87352 03/31/05 Hartford Insurance Coverage
6,999.48
Litigation
8004 87349 03/31/05 People v Randtron
8006 87348 03/31/05 Fireman's Fund/Unigard Appeal
8007 87313 03/31/05 Regulatory Agency Orders
8008 87314 03/31/05 Envision Law Group
926.80 463.40
463.40
2,265.93 1,132.97
Total Distribution
Matter
Invoice
Date Description
Amount 171399.7323 183453.7323
No.
No.
20,499.45
20,499.45
2002
87350
03/31/05 City of Lodi v Lehman
2,302.10 1,151.05 1,151.05
2003
87354
03/31/05 Farr Associates v City of Lodi
761.50 380.75
380.75
Environmental Forensics v
2005
87353
03/31/05 Environmental Forensic v
6,486.59 3,243.30 3,243.30
City of Lodi
2006 87351 03/31/05 Magellan Env. v City of Lodi
8001 87347 03/31/05 General Advice -Environ Matters
8002 87375 03/31/05 People v M&P Investments
8003 87352 03/31/05 Hartford Insurance Coverage
6,999.48
Litigation
8004 87349 03/31/05 People v Randtron
8006 87348 03/31/05 Fireman's Fund/Unigard Appeal
8007 87313 03/31/05 Regulatory Agency Orders
8008 87314 03/31/05 Envision Law Group
926.80 463.40
463.40
2,265.93 1,132.97
1,132.97
112,073.76 56,036.88
56,036.88
(5,003.00) (2,501.50)
(2,501.50)
13,998.96
6,999.48
1,863.50
931.75
931.75
12,255.98
6,127.99
6,127.99
1,125.70
562.85
562.85
40,998.90
20,499.45
20,499.45
(235.00)
(117.50)
(117.50)
189,821.72
94,910.86
94.910.86
Kronick Moskovitz Tiedemann & Girard - Invoices Distribution
Invoice Date Description
220031 04/25/05 On -Site Litigation Support
220032 04/25/05 General advice
220032 04/25/05 Rogers v SJC
220032 04/25/05 Phelps v City of Lodi
220032 04/25/05 Sphere of Influence -
White Slough
220032 04/25/05 City of Lodi v City of Stockton
220032 04/25/05 Stockton Family Farmers Coal.
220032 04/25/05 City of Stockton v City of Lodi
220032 04/25/05 Lodi First v City of Lodi
220032 04/25/05 Citizens for Open Govt. v
City of Lodi
Total Distribution
Amount 100351.7323 171399.7323 183453.7323
1,375.00 687.50 687.50
1,297.68 1,297.68
252.49 252.49 - -
662.57 662.57 - -
437.39 218.69 218.70
440.02 220.01 220.01
38.86 19.43 19.43
19.00 - 9.50 9.50
1,248.96 1,248.96
2.098.00 2.098.00
7,869.97 5,559.70 1,155.13 1,155.14
*Requires Special Allocation for payment from General Fund ($5,559.70).
11
JAMS
Total
Distribution
Invoice
Date Description
Amount
171399.7323 183453.7323
No.
0000989807-100
04/2005 Mediation Services
275.00
137.50 137.50
Environmental Forensics v
City of Lodi
0000991228-110
04/2005 Mediation Services
1.948.40
974.20 974.20
M & P Investments
2,223.40
11
Continued June 15, 2005
L. ORDINANCES
L-1 Following reading of the title of Ordinance No. 1760 entitled, 'An Ordinance of the City
Council of the City of Lodi Amending Lodi Municipal Code Title 2 — Administration and
Personnel Chapter 2.44 by Repealing in its Entirety Section 2.44.030 Relating to Maximum
Age," having been introduced at a regular meeting of the Lodi City Council held June 1,
2005, the City Council, on motion of Mayor Beckman, Hitchcock second, waived reading of
the ordinance in full and adopted and ordered it to print by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Johnson, Mounce, and Mayor Beckman
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — None
L-2 Following reading of the title of Ordinance No. 1761 entitled, "An Ordinance Adopting the
'2004 California Electrical Code,' Which Code Regulates the Installation, Alteration, or
Addition of Electrical Wiring, Devices, Appliances, or Equipment in the City of Lodi; and
Repealing and Re -Enacting Sections 15.16.010 Through 15.16.030 of the Codes of the City
of Lodi, and All Other Ordinances and Parts of Ordinances in Conflict Therewith," having
been introduced at a regular meeting of the Lodi City Council held June 1, 2005, the City
Council, on motion of Mayor Beckman, Mounce second, waived reading of the ordinance in
full and adopted and ordered it to print by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Johnson, Mounce, and Mayor Beckman
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — None
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
10:18 p.m.
ATTEST:
Susan J. Blackston
City Clerk
12