HomeMy WebLinkAboutMinutes - November 3, 2004LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, NOVEMBER 3, 2004
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of November 3, 2004, was called to order by Mayor
Hansen at 5:11 p.m.
Present: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Absent: Council Members — Beckman
Also Present: Interim City Manager Keeter, City Attorney Schwabauer, and City Clerk Blackston
C-2 ANNOUNCEMENT OF CLOSED SESSION
a) Conference with Labor Negotiators, Human Resources Director Joanne Narloch and Rick
Bolanos, regarding Police Officers Association of Lodi and Lodi Police Dispatchers
Association pursuant to Government Code §54957.6
b) 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
C) 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
d) 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
e) Conference with legal counsel — initiation of litigation: Government Code §54956.9(c); two
cases
f) 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
g) Actual litigation: Government Code §54956.9(a); one case; City of Lodi. a California
Municipal Corporation. and Lodi Financing Corporation. a California nonprofit corporation v.
Lehman Brothers. Inc. and US Bank National Association, United States District Court,
Eastern District of California, Case No. CIV. S-04-0606 MCE-KJM
h) Actual litigation: Government Code §54956.9(a); one case; Lehman Brothers Inc.. v. City of
Lodi and Lodi Financing Corporation, United States District Court, Eastern District of
California Case No. CIV -S-04-0850 FCD/JFM
i) 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
j) Actual Litigation: Government Code §54956.9(a); one case; City of Lodi v. City of Stockton,
et al., San Joaquin County Superior Court, Stockton Branch, Case No. CV024720
k) Actual Litigation: Government Code §54956.9(a); one case; City of Stockton v. City of Lodi,
San Joaquin County Superior Court, Stockton Branch, Case No. CV024859
1) Actual Litigation: Government Code §54956.9(a); one case; Stockton Family Farmers
Coalition v. City of Lodi, et al., San Joaquin County Superior Court, Stockton Branch, Case
No. CV024860
C-3 ADJOURN TO CLOSED SESSION
At 5:11 p.m., Mayor Hansen adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 7:05 p.m.
Continued November 3, 2004
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:08 p.m., Mayor Hansen reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions:
In regard to Item G2 (a), on a vote of 3-1 with Council Member Hitchcock dissenting, Council gave
direction to its labor negotiators.
In regard to Items C-2 (b), (d), (e), (f), (g), (h), and (i), no reportable action was taken.
In regard to Item C-2 (c), (j), (k), and (1), settlement direction was sought and obtained.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of November 3, 2004, was called to order by Mayor Hansen at
7:08 p.m.
Present: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Absent: Council Members — Beckman
Also Present: Interim City Manager Keeter, City Attorney Schwabauer, and City Clerk Blackston
B. INVOCATION
The invocation was given by Pastor Steve Newman, First Baptist Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Hansen.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 (a) Mayor Hansen presented a proclamation to Captain Frank Severs with the Lodi Salvation
Army proclaiming Thursday, November 18, 2004, as "Feed Lodi Thursday," to be held in
conjunction with the "Feed America Thursday" program.
D-3 (a) Tiffani Fink, Transportation Manager, gave a presentation to the City Council regarding
transit services for the Holiday season.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Land, Howard second, approved the following items hereinafter set forth except
those otherwise noted by the vote shown below:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members — None
Absent: Council Members — Beckman
E-1 Claims were approved in the amount of $3,764,748.80.
E-2 The minutes of October 12, 2004 (Shirtsleeve Session), October 12, 2004 (Special
Meeting), October 19, 2004 (Shirtsleeve Session), October 19, 2004 (Special Meeting),
October 26, 2004 (Shirtsleeve Session), and October 26, 2004 (Special Meeting) were
approved as written.
E-3 Adopted Resolution No. 2004-226 approving the City of Lodi annual investment policy and
internal control guidelines.
E-4 Adopted Resolution No. 2004-227 approving the specifications, authorizing advertisement
for bids for Maintenance of Landscape Areas for 2005, and authorizing the City Manager to
award or reject the contracts up to $150,000.
2
Continued November 3, 2004
E-5 Adopted Resolution No. 2004-228 awarding the purchase of 20,000 feet of #1/0 and 40,000
feet of #350 kcmil 600 -volt underground triplex to the low bidder, Pirelli Power Cables and
Systems, of Lexington, SC, in the amount of $92,263.96.
E-6 Adopted Resolution No. 2004-229 awarding he purchase of 40,000 feet of #1/0 medium -
voltage EPR -insulated underground conductor to the low bidder, The Okonite Company, of
San Ramon, CA, in the amount of $57,064.40.
E-7 Adopted Resolution No. 2004-230 awarding the purchase of 288 watt-hour meters to the low
bidder, Sensus Metering Systems, of Raleigh, NC, in the amount of $8,921.70.
E-8 Adopted Resolution No. 2004-231 awarding the design and construction contract for the
Municipal Service Center Public Works Locker Room Expansion Project to Diede
Construction and appropriated funds in the amount of $155,000.
E-9 Adopted Resolution No. 2004-232 approving the final map and Improvement Agreement for
Mills Avenue Single -Family Homes, Tract No. 3441, and directed the City Manager and City
Clerk to execute the improvement agreement and map on behalf of the City.
E-10 Adopted Resolution No. 2004-233 authorizing the following actions for the Century
Meadows One, Unit No. 3, subdivision:
1. Approving the final map and improvement agreement for Century Meadows One,
Unit No. 3, Tract No. 3289, and directing the City Manager and City Clerk to
execute the improvement agreement and map on behalf of the City;
2. Approving the no -parking zone installation on the north side of Harney Lane from
Poppy Drive to 800 feet east of Poppy Drive; and
3. Appropriating funds in the amount of $22,000 for applicable reimbursements.
E-11 Adopted Resolution of Vacation No. 2004-234 of a surplus portion of Woodhaven Lane at
1245 Woodhaven Lane frontage.
E-12 "Adopt resolution authorizing the City Manager to execute a professional services
agreement with Robert E. Lamb, Inc., of Valley Forge, PA, for architectural/engineering
services for the Operations Center and appropriate funds in an amount not to exceed
$24,000 by a transfer from the Distribution System Improvement business unit to the
business unit' was removed from the Consent Calendar and discussed and acted upon
following approval of the Consent Calendar.
E-13 Adopted Resolution No. 2004-235 authorizing the City Manager to enter into a professional
services agreement with Power Engineers, Inc., of Hailey, ID, for performing the "Arc Flash
Study" at Henning, Industrial, Killelea, and McLane Substations in the amount of $11,330.
E-14 Set public hearing for November 17, 2004, to consider a development agreement between
the City of Lodi and GFLIP III, L.P., relating to the development known as Electronic
Display Sign to be located at 1251 South Beckman Road, Lodi.
ACTION ON ITEM REMOVED FROM THE CONSENT CALENDAR
E-12 "Adopt resolution authorizing the City Manager to execute a professional services
agreement with Robert E. Lamb, Inc., of Valley Forge, PA, for architectural/engineering
services for the Operations Center and appropriate funds in an amount not to exceed
$24,000 by a transfer from the Distribution System Improvement business unit to the
business unit'
Continued November 3, 2004
Hans Hansen, Manager of Engineering and Operations, reported that an ergonomic study
was conducted in December 2003 in response to submittal of neck and back injury claims
by some Electric Utility employees.
Interim City Manager Keeter stated that the cost of the modifications would come back to
Council for final approval.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Hansen second, adopted
Resolution No. 2004-236 authorizing the City Manager to execute a professional services
agreement with Robert E. Lamb, Inc., of Valley Forge, PA, for architectural/engineering
services for the Operations Center and appropriating funds in an amount not to exceed
$24,000 by a transfer from the Distribution System Improvement business unit to the
business unit. The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members — None
Absent: Council Members — Beckman
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
00 Tyler Rothermel distributed written material to Council (filed). He spoke in support of allowing
BMX bikes at the Kofu Skate Park. He stated that the "skate light" material on the ramps was
endorsed for BMX bikes and some of the ramps are actually too large for skate boards. He
noted that the city of Oroville allows bikes, skateboards, and roller blades at its skate park. He
asked that Council place this matter on its next agenda.
Interim City Manager Keeter reported that staff had considered allowing BMX bikes in the skate
park; however, it chose to reopen the park with in-line skaters and skate boarders only and to
later evaluate the possibility of incorporating BMX bikes.
In reply to Council Member Hitchcock, City Attorney Schwabauer stated that the legislation that
provides cities with limited immunity for the operation of skate parks only applies to children
over 14 years of age. He noted there does exist a hazardous recreational activity immunity that
cities have, which is independent of the limited skate park immunity, and he indicated that he
would analyze it.
Council Members Land and Howard expressed support for allowing BMX bikes in the skate park
if it does not increase the City's risk.
Mayor Hansen stated that staff would look into the matter and contact Mr. Rothermel.
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 Hansen called for the public hearing to consider
adopting Resolution/Order to Vacate a surplus portion of Maxwell Street.
Public Works Director Prima reported that Maxwell Street off of Stockton Street was
originally developed as a cul-de-sac and was later extended south. The property owner has
requested that the City abandon a piece of the right of way. Mr. Prima confirmed that the
City would retain an easement for the utilities.
Hearing Opened to the Public
None.
Public Portion of Hearing Closed
0
Continued November 3, 2004
MOTION / VOTE:
The City Council, on motion of Mayor Hansen, Land second, adopted Resolution No. 2004-
237 vacating a portion of Maxwell Street by the following vote:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members — None
Absent: Council Members — Beckman
G-2 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office cf the City Clerk, Mayor Hansen called for the public hearing to consider
unmet transit needs in Lodi.
Tiffani Fink, Transportation Manager, noted that the public hearing to consider unmet transit
needs is an annual requirement of the Transportation Development Act. Ms. Fink reported
that she had not received any comments from other meetings held on this topic. Only one
comment (via telephone) has been received thus far asking for late night service. She
introduced Sarkes Khachek and Michael Swearingen of the San Joaquin Council of
Governments (SJCOG) who oversee the unmet transit needs process countywide.
Mr. Khachek reported that SJCOG staff conducts public outreach to all local social service
agencies in the county. In addition, comments can be submitted via internet, mail, or
telephone. The comment period began last month and continues to January 27. He stated
that no unmet transit needs comments have been received concerning Lodi.
Hearina Opened to the Public
None.
Public Portion of Hearina Closed
MOTION / VOTE:
There was no Council action taken on this matter.
NOTE: Items G-3 and 1-1 were discussed and considered simultaneously.
G-3 Notice thereof having been published according to law, an affidavit of which publication is
AND on file in the office of the City Clerk, Mayor Hansen called for the public hearing to
1-1 consider resolution adopting amended Impact Mitigation Fees for Storm Drainage, Streets
and Road, and Parks and Recreation AND "Adopt resolution approving Impact Mitigation
Fee Program Annual Report for fiscal year 2003-04"
Interim City Manager Keeter suggested that Council consider Items G-3 and 1-1
simultaneously.
Public Works Director Prima noted that Council has received a "blue sheet' resolution on
this item (filed). He explained that the impact fee program, which began in the early 1990s,
has a number of mechanisms to update the fees. Recently the City adopted a mechanism
in which the fees are automatically updated annually based on the Engineering
Construction Cost Index. The program also contemplates that there be additional
adjustments based on other major events. Mr. Prima reported that the price of land has
increased considerably over what is in the fee program. This primarily affects storm
drainage because of the provision for storm drain basins and parks, which are large, land -
intensive areas. Mr. Prima suggested that a targeted update be done based on that
element alone. He explained that a major overhaul of the fee program would be a significant
effort and he preferred that it be done in conjunction with the General Plan update.
Continued November 3, 2004
In reference to Item 1-1, Wally Sandelin, City Engineer, explained that the fund balance on
Exhibit A (filed) of the staff report entitled, "Impact Mitigation Fee Program Fiscal Year
2003-04 Annual Report," refers to cash and also includes loans to other funds. He noted
that investment revenues are the interest earned from bank accounts. Service charges are
the fees paid by developers into the funds. Total capital expenditures for 2003-04 was
$450,000. "Other Sources (Uses)" details transfers between funds to other accounts. The
fee amount reflects the indexing that occurs annually on January 1. In July, a 12%
adjustment to the Streets and Roads fee program was adopted. The adjustment was not
reflected in the fee amount lines shown on Exhibit A. There are currently three active loans
in the fee program: 1) a loan from the Parks and Recreation Fund to the Streets Fund for
construction cost associated with Lower Sacramento Road between Kettleman Lane and
Turner Road; 2) a loan from the Water Impact Fee Fund to the Fire Fund for construction of
Fire Station 4, and 3) a loan with the San Joaquin County Council of Governments (SJCOG)
for work done at the interchange of Kettleman Lane and Highway 99. The repayment of the
Fire loan to the Water Fund is based upon the available fund balance at the end of each
fiscal year. There are adjustments based upon land costs and adjustments to project
costs based on Engineering News Record (ENR) indexing, as well as subtracting expenses
if there are any.
In reference to Item G-3, Exhibit G (filed), Mr. Sandelin reported that it lists projects for the
Storm Drainage Program. He stated that after researching trends, raw land purchases, and
working with the development community, consensus was reached by all that it was
appropriate to use the now current land cost of $200,000 per acre. There are two projects
that remain in the fee program that are affected by the purchase cost of land: 1) F -Basin
and park — west of Lower Sacramento Road, north of Kettleman Lane, and 2) I -Basin and
park — west of Lower Sacramento Road, south of Kettleman Lane. The new project cost
(as of June 30, 2004) is nearly $6.5 million. After applying the methodology to the F- and (-
Basin projects, the new project cost in the storm drainage program is $20.6 million.
In reference to Item 1-1, Exhibit A, Mr. Sandelin noted that the Storm Drainage fund balance
in the Annual Report is $1.8 million. The net fees required to build the projects in the
program, divided by the expected development, yields a fee of $16,218 per acre, which is a
32% increase over the current fee (as shown on Attachment 1 for Item G-3).
Council Member Hitchcock asked how staff arrived at $200,000 an acre, to which
Mr. Sandelin replied that the development community provided staff with a list of actual
closed sales. The reported average by the development community was $168,000.
Agreement was reached that $200,000 would be appropriate at this time and that the land
cost issue would be revisited on a regular basis in the future.
In response to Council Member Hitchcock, Mr. Prima stated that the fees were adequate
given the project costs that were used to make assumptions and the level of development
planned for. He reported that Fire Stations 3 and 4 would serve the majority of the West-
side area.
Ms. Keeter commented that Fire Station 5 and possibly 6 would be considered in the
upcoming General Plan update.
Mr. Sandelin reviewed San Joaquin Partnership's comparison of fees. He stated that even
with the adjustments being suggested now, Lodi would probably be below the median.
Mr. Sandelin stated that, in response to some comments from the development
community, an additional change was made with respect to Katzakian Park. There was a
residual dollar amount of $988,000 that was transferred into the DeBenedetti Park program.
He explained that this was done because, as staff went through the design exercise, it
realized that the funds in the fee program were not sufficient to construct the projects
conceived thus far. Referencing Item G-3, Attachment 1, he stated that the proposed
n
Continued November 3, 2004
amended fee for Parks and Recreation is 17% higher, most of which is attributed to land
cost. He stated that no adjustments to reflect land prices were made in the Streets and
Roads fee program. It was updated to a June 30 date to reflect two projects staff
recommends be added to the Streets and Roads program, i.e. 1) Lower Sacramento Road
— Mettler Road to the Harney Curve and 2) a share of State Highway improvements as the
City's participation in a Regional Traffic Impact Fee.
Mr. Prima recalled that a few months ago a letter was received from SJCOG requesting that
cities adopt a regional transportation fee. The Measure K program includes a goal to have
a regional fee program in place. The State Transportation Improvement Program, which has
been relied on to fund freeway projects, is nearly non-existent. The Federal portion of the
funding is now renewed and SJCOG is going through a process to look at how it is going to
allocate those funds. SJCOG is recommending that the major funding source, the Surface
Transportation Program, be held back by SJCOG for use on freeways. Mr. Prima noted
that in staff's September ieport to Council it was proposed that Lodi take the lead in its
position that the Regional Fee should cover state highways only. Other significant
roadways that are needed should be funded through agreements between the County and
affected cities. Mr. Prima stated that because of SJCOG's reestablishment of the Policy
Committee, staff is now recommending that Lodi not adopt the full regional fee; however,
staff does believe that the Lower Sacramento Road fee is appropriate. Staff suggests that
Council adopt a fee ($909 per acre) that includes Lower Sacramento Road, down to Mettler
Road, just south of Armstrong. Mr. Prima explained that because it is not a new fee, i.e.
staff is modifying existing fees, it could be applied to all the projects in progress if the
Council chose to do so. He referenced the "blue sheet" resolution for Item G3 (filed),
noting that section 3 discusses implementation. He explained that the way the City
collects fees for projects that have a subdivision map, is that there is an epprovement
agreement, which provides that they pay the fees that are in effect at the time they paid
them. If fees are not paid before January 1, then the ENR Index adjustment would be
added to the previous fees. If there is a completed application, then the City would give
them one more year to complete their project and get the fees paid under the current
schedule in addition to the ENR index.
City Attorney Schwabauer stated that, in California, vested rights are only acquired on the
project approval and actual commencement of construction. The City is well within its
rights to apply any increase in fees up to the point that construction has begun. State law
only requires that cities exempt projects that have both received the project approval and
have begun construction.
RECESS
At 8:53 p.m., Mayor Hansen called for a recess, and the City Council meeting reconvened at
9:03 p.m.
G. PUBLIC HEARINGS (Continued)
G-3 Hearing Opened to the Public
(Cont'd.)
co Victor DeMelo, Director of Development, reported that Browman Development Company
has been working on the "4 -Corners" project for two and a half years and is now within
30 days of going before the Planning Commission. It has invested hundreds of
thousands of dollars into the project for the Environmental Impact Report processing,
on plans and specifications, time, and overhead. He stated that his company was in
agreement with the resolution staff is presenting to Council. He commented that the
fee increase would have a devastating blow to the project. He reported that
construction costs have increased and design guidelines changed a year ago, which
delayed the project over four months. Waiting for the results of Measure R, the
citizen's initiative, also delayed the project. A number of leases have dready been
signed based on the existing fee structure.
7
Continued November 3, 2004
City Attorney Schwabauer stated that in order for Browman Development Company to
have a vested right, where the City could not constitutionally impose these increased
fees, is if it had project approval and had begun construction.
Mr. DeMelo requested that the timeframes as established remain in effect.
00 Kevin Sharrar, Executive Director of the Building Industry Association of the Delta,
addressed the issue of affordable housing. He reported that h years past 50,000
condominiums were built annually in California. It has decreased to less than 5,000 per
year today because builders cannot obtain adequate insurance. It is difficult to find
consultants that carry the needed errors and omissions insurance. Apartments have
an added challenge because builders have little confidence that they will be able to get
through the process, due to resistance from communities. He stated that San Joaquin
County has become a bedroom community to the East Bay. Supply cannot keep up
due in part to the lack of availability of land and infrastructure. In reference to staffs fee
proposal, Mr. Sharrar agreed that Lodi should not adopt a Regional Transportation
Impact Fee tonight. He believed that the implementation proposal before Council was
fair.
oo Jeffrey Kirst pointed out that Lodi is different in that it has a growth management plan
that starts well before the tentative map stage. The planning and conditional approvals
start with the growth management plan that is filed in May, meted out in September,
and then confirmed by Council. There were projects that were approved at the growth
management session recently and with those a completed development application
was filed. He asked for clarification that those projects were included in this
discussion.
Mr. Prima recalled that projects "in progress" have dealt with tentative map approval or
a building permit. His belief was that it would be the development allocations.
Mr. Kirst stated that almost all of the conditions of approval for a tentative map are
included in the growth management approval process. Public Works and the
Community Development Department give their approvals as a conditional approval of
growth management. Mr. Kirst noted that he was ready to file a tentative map as soon
as Council approves growth allocations. He asked for clarification of the meaning of "a
completed development application" under section three of the proposed resolution for
Item G3. He noted that City staff will not accept a tentative map until the growth
allocations are completed.
Mr. Schwabauer agreed that the matter should be further defined in the resolution. He
stated that for purposes of vesting considerations it would be the map; however, the
Council can set the standard at whatever it wishes.
Council Member Hitchcock pointed out that often times when allocations are made the
projects are not built for years.
Mr. Kirst agreed; however, he noted that the proposed resolution has a sunset date of
December 31, 2005. Mr. Kirst stated that he had approval from the Planning
Commission for growth allocations that must be confirmed by the Council, after which
he can file a tentative map. He anticipated that fees would be paid in May and the
project would be completed in the summer of 2005.
00 Dennis Bennett spoke on the subject of affordable housing, noting that it is virtually
impossible to obtain liability insurance. He pointed out that when the supply of any
product is so rapidly diminished the price escalates. The limitation of development has
encumbered the ability to raise enough money in a timely manner to supply the
Continued November 3, 2004
infrastructure. He stated that Lodi does not sell enough building permits or collect
enough impact fees to ever complete its "wish list" of projects and this would always be
the case as long as only 270 homes are built per year. He asserted that the whole
equation is flawed and did not believe it could ever be resolved under the present
system. Mr. Kirst reported that staff's recommendation has met with the approval of
the building industry and he encouraged Council to adopt the resolution.
Public Portion of Hearina Closed
Mr. Schwabauer offered the following amendments to the resolution for Item G-3, in
accordance with Mr. Kirst's request:
Section 3, paragraph 2, b) the project proponent filed a "completed development
application" prior to November 3, 2004. A development application shall be deemed
complete for purposes of this resolution upon receipt of its growth management
allocation from the Planning Commission.
Section 3, paragraph 3, The exemption from the increased fee amounts imposed by this
Resolution shall ewe -exp only apply to the extent that the fees are actually paid by
December 31, 2005.
Council Member Hitchcock suggested that "construction started" by December 31, 2005,
would be more appropriate.
Mr. Prima explained that in some processes construction can begin before paying fees.
For projects involving a map, the final map normally comes to Council for approval along
with an improvement agreement. Improvement agreements specify what work will be done
and fees are paid before the improvements are accepted. For typical residential
subdivisions, developers have been working for months before they pay the fees.
#G-3 MOTION / VOTE:
The City Council, on motion of Council Member Land, Hansen second, adopted Resolution
No. 2004-238 amending Impact Mitigation Fees for Storm Drainage, Streets and Roads,
and Parks and Recreation as amended by the City Attorney. The motion carried by the
following vote:
Ayes: Council Members - Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members - None
Absent: Council Members - Beckman
#I-1 MOTION/ VOTE:
The City Council, on motion of Council Member Land, Hansen second, adopted Resolution
No. 2004-239 approving the Impact Mitigation Fee Program Annual Report for fiscal year
2003-04 by the following vote:
Ayes: Council Members - Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members - None
Absent: Council Members - Beckman
H. COMMUNICATIONS
H-1 Claims filed against the City of Lodi - None
H-2 Reports: Boards/Commissions/Task Forces/Committees - None
E
Continued November 3, 2004
H-3
H-4
The following postings/appointments were made:
a) The City Council, on motion of Council Member Land, Hansen second, directed the
City Clerk to post for the following vacancy and expiring terms by the vote shown
below:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members — None
Absent: Council Members — Beckman
Senior Citizens Commission
Cynthia Winegarden Term to expire December 31, 2004
Perry Schimke Term to expire December 31, 2004
Parks and Recreation Commission
Scott Davis Term to expire December 31, 2004
Miscellaneous — None
REGULAR CALENDAR
1-2 "Adopt resolution authorizing the City Manager to execute park purchase and construction
agreement with FCB Building Partners I, L.P., for the acquisition of the park site and
construction of the park improvements for Century Meadows Park and appropriate funds
($24,000)"
Wally Sandelin, City Engineer, explained that the matter under consideration is a
neighborhood park serving areas bounded by the canal, Lower Sacramento Road, Harney
Lane, and Century Boulevard. Housing in the area is mostly being built by FCB Building
Partners. On December 18, 2002, Council entered into a park acquisition agreement with
the subdivider reserving br future development the three -acre site within the subdivision.
The developer has built the park frontage improvements on both sides of the park and the
Park Impact Fee Program has reimbursed the developer for those costs. The developer is
passing over to the City the basic land costs that were paid for the 2.99 acre park property.
The park purchase agreement allows for reasonable costs for taxes at 1%, 5.25% carry on
the interest, and four and a half cents per square foot for ongoing maintenance for three
years. The total project cost based on the bid project to date is $1,040,000. The
agreement provides for fee credits turned back to the developer to offset those costs for
$1,016,000. The staff report for this item requests a $24,000 appropriation. The developer
has agreed to provide construction administration services to the City for the construction
period at no cost and has agreed to maintain the park for seven months. The Parks and
Recreation Commission has concurred with the acquisition and construction agreement.
Council Member Hitchcock expressed concern about the price of the land.
Mr. Sandelin replied that the most recent comp was $316,000 ter acre; however, the
average over the last couple of years was $168,000. It was agreed that $200,000 was mid-
range in the marketplace.
MOTION / VOTE:
The City Council, on motion of Mayor Hansen, Howard second, adopted Resolution
No. 2004-240 authorizing the City Manager to execute park purchase and construction
agreement with FCB Building Partners I, L.P., for the acquisition of the park site and
construction of the park improvements for Century Meadows Park and appropriated funds in
the amount of $24,000. The motion carried by the following vote:
Ayes: Council Members — Hitchcock, Howard, Land, and Mayor Hansen
Noes: Council Members — None
Absent: Council Members — Beckman
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Continued November 3, 2004
1-3 "Approve expenses incurred by outside counsel/consultants relative to the Environmental
Abatement Program litigation and other various cases being handled by outside counsel
($313,455.17) and approval of Special Allocation covering general litigation matter expenses
($4,413.66)" was pulled from the agenda pursuant to staff's request.
1-4 "Discussion and update regarding fiscal year 2005-06 budget process"
Interim City Manager Keeter reported that Department Heads have been asked for ideas on
revenue enhancements and expenditure reductions for 2005-06. An in-house survey has
been developed as a way to get feedback from City employees. She reminded Council that
two years ago Council was presented with five scenarios related to the budget, and during
the last budget cycle, there were three phases of reductions.
Mayor Hansen asked if the $1 million General Plan update was factored into the 2004-05
Financial Plan and Summary, submitted as Exhibit A (filed) to the staff report.
Finance Director Krueger replied that it would require an additional staff member in the
Planning Division of Community Development to manage the process. He anticipated that
impact mitigation fees would pay for the General Plan update.
Ms. Keeter stated that mid -year budget adjustments would be brought to Council in
January. In addition there would be a recommendation to authorize the hiring of a Planner
who would prepare a Request for Proposals for a consultant. The Planner would then
oversee the General Plan update process.
Council Member Hitchcock asked that Council receive budget spreadsheets in hard copy
form for future meetings.
Mr. Krueger reported that as of June 30, 2004 the City had a $1.3 million structural deficit.
He cautioned that it could be $1.7 million by now. He stated that this was caused by
allowing revenues to get out of balance with expenditures. He explained that it is in the
structure of the way the City does business, i.e. the level of services it provides, programs it
offers, and what is received in reimbursement for those services. He reported that
expenditures in 2001-02 exceeded revenues. "Transfers In and Transfers Out" was used to
balance the budget. Mr. Krueger stated that his goal was to have enough money in reserve
that the City could weather temporary downturns in the future. Core level programs will
need to be identified and less important services may have to be reconsidered within the
framework of the current economic situation. Approximately 80% of $33,589,000 in the
General Fund is for personnel and benefits. He explained that Exhibits B-1 to B-7 (filed)
outline departmental programs, expenditure and revenue trends, and costs funded with
General Fund revenue. Mr. Krueger concluded that the way to resolve the structural deficit
is to deal with those programs that are funded with general revenues.
NOTE: Council Member Howard left the meeting at 10:50 p.m.
Council Member Hitchcock noted that the spreadsheet information only goes back four
years. She had heard that the City's budget doubled in the past ten years and asked to be
provided with budget information over a longer period of time.
Mr. Krueger emphasized the importance of recovering the cost of services transfer amount
as much as possible. It appears that the cost allocation plan has not kept up with actual
trends and expenditures. There may be areas in the cost allocation plan that need to be
reduced as well, such as Information Systems, which is recovering more than what it costs
to provide services. Fees also need to be reviewed to ensure they are as up to date as
possible. In Parks and Recreation and the Community Center, Mr. Krueger recommended
that fees be increased where program costs exceed revenues.
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Continued November 3, 2004
Council Member Hitchcock noted that it is taking an extended amount of time to get
projects through the plan check process in the Community Development Department, due
to vacancies. She felt that there should be some expectation that fees are equivalent to a
certain level of service. She suggested that vacant positions be considered on a case by
case basis and a policy call made on priorities, rather than allowing attrition to occur
randomly.
Mr. Krueger reported that total expenditures for 2004-05 is $34,490,000. Direct revenue for
all departments in the General Fund is $4.5 million. The City is recovering just under $6
million from utility departments and transportation funds and is funding $24 million from
general revenues. He outlined the following scenarios to reduce expenditures, from which
he recommended "B":
A. Apply the $1.3 million deficit across the board to all departments, which would result in
a 3.9% reduction in expenditures.
B. Spread the $1.3 million expenditure reduction to all departments based on their share
of that net cost, which would result in a 5.62% reduction.
C. Have no reductions to public safety and increase budget cuts to all remaining
departments.
D. Apply only half the reduction to public safety and spread the remaining amount to all
other departments.
E. In this scenario the $1.3 million target becomes $1 million after taking revenues into
account that would be generated as a result of program expenditures.
Mayor Hansen stated that, when possible, he wanted the City to increase revenues within
the parameters that it has to operate. He acknowledged that expenses would also have to
be cut. He indicated that budget cuts should be done across the board in an equitable
manner. He posed the question to Council as to how committed it was to get the City into
a sound fiscal reserve. Policies, procedures, and philosophies need to be reconsidered so
that the City can weather most situations it is confronted with in years to come. He
suggested that becoming a Charter City might be beneficial in regard to maintaining a
policy for fund balance reserve.
Council Member Hitchcock voiced support for the Charter City concept if it were primarily
for financial constraints.
Mr. Krueger reported that he attended an economic forecast meeting recently, at which it
was mentioned that the largest risk is associated with gasoline prices. He warned that if
prices escalated drastically it would impact the City's sales tax revenues because there
would be fewer large vehicles sold.
Mr. Krueger commented that ideas for reductions include having employees pay their own
share of Public Employees' Retirement System costs and capping the health insurance
benefits. He believed that the City was nearing the end of the duration of having the hiring
freeze be a viable option for continued use. He stated that priorities for each department
would be established and staff would return to Council with policy recommendations. He
hoped to have the 2005-06 budget prepared by April or May. He suggested that a budget
advisory committee be appointed to get input from community leaders.
Ms. Keeter noted that staff would not be recommending that the Economic Development
Coordinator position be reinstituted. A "team Lodi" concept is being developed, which
Ms. Keeter stated Council would be informed of at a later date.
PUBLIC COMMENTS:
0o Judy Steinke of American Federation of State, County, and Municipal Employees, who
represented Lodi General Services and Maintenance & Operators employees, offered
assistance in regard to the upcoming budget process. She expressed hope that cuts
would be shared equitably amongst departments and that Council would consider
raising revenue as well.
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Continued November 3, 2004
Council Member Hitchcock concurred that budget cuts should be done in an equitable
manner across all departments. In regard to raising revenue, she doubted that any Council
Members would be in favor of placing a sales tax increase measure on a future ballot.
MOTION / VOTE:
There was no Council action taken on this matter.
J. ORDINANCES
None.
K. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Land thanked Bob Johnson, Steve Jarrett, JoAnne Mounce, Stephen Mackey,
and Dixon Flynn for their hard work during the recent City Council campaign. He congratulated
Bob Johnson and JoAnne Mounce.
oo Mayor Hansen and Council Member Hitchcock also congratulated Council Members Elect
Johnson and Mounce.
L. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo Interim City Manager Keeter commented that she would send communication out tomorrow to
Council Members Elect with a list of topics on which to begin briefing them. She announced
that Veterans Day observance would occur on November 11.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
11:52 p.m.
ATTEST:
Susan J. Blackston
City Clerk
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