HomeMy WebLinkAboutMinutes - May 3, 2006LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MAY 3, 2006
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of May 3, 2006, was called to order by Mayor Hitchcock at
7:08 p.m.
Present: Council Members — Beckman, Hansen, Johnson, Mounce, and Mayor Hitchcock
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Blackston
B. INVOCATION
The invocation was given by Reverend David Hill, Grace Presbyterian Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Hitchcock.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 (a) Fire Chief Pretz presented the "Firefighter of the Year 2005" plaque to Firefighter Michael
Alegre II.
D-2 (a) Mayor Hitchcock presented a proclamation to Mark Chandler, representing the Lodi -
Woodbridge Winegrape Commission, proclaiming the month of May 2006 as "Zinfandel
Month" in the City of Lodi.
D-2 (b) Mayor Hitchcock presented a proclamation to Darlene DeMarco, E.D., and Vanessa
Garner, Executive Assistant, representing the American Lung Association, proclaiming the
month of May 2006 as the American Lung Association's "Clean Air Month" in the City of
Lodi.
D-2 (c) Mayor Hitchcock proclaimed the month d: May 2006 as Veteran Appreciation Month" in
the City of Lodi. Representatives were unable to attend the meeting to accept the
proclamation.
D-2 (d) Mayor Hitchcock presented a proclamation to Police Chief Adams proclaiming the month of
May 2006 as "Peace Officer Memorial Month" in the City of Lodi.
D-2 (e) Mayor Hitchcock presented a proclamation to Wally Sandelin, City Engineer, proclaiming
the week of May 21 — 27, 2006, as "National Public Works Week" in the City of Lodi.
D-3 (a) City Clerk Blackston gave an update on the Centennial activities being planned for 2006.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Beckman, Mounce second, unanimously approved the following items hereinafter
set forth:
E-1 Claims were approved in the amount of $2,223,745.24.
E-2 The minutes of February 28, 2006 (Shirtsleeve Session), March 14, 2006 (Shirtsleeve
Session), March 14, 2006 (Special Joint Meeting w/Lodi Budget/Finance Committee),
March 28, 2006 (Shirtsleeve Session), March 28, 2006 (Special Meeting), April 4, 2006
(Shirtsleeve Session), and April 5, 2006 (Regular Meeting) were approved as written.
Continued May 3, 2006
E-3 Authorized advertisement for bids for the sale of surplus overhead all aluminum conductor
and related material.
E-4 Adopted Resolution No. 2006-71 awarding the contract for Playground Improvements at
Peterson Park "West' Playground, 199 Evergreen Drive, to A.M. Stephens Construction, of
Lodi, in the amount of $86,978.
E-5 Adopted Resolution No. 2006-72 awarding the bid for the purchase of White Slough Water
Pollution Control Facility telephone system replacement from AT&T (SBC), of Stockton,
under the terms of the State of California CALNET contract in the amount of $44,000.
E-6 Adopted Resolution No. 2006-73 approving pedestrian safety improvements on Lockeford
Street at Orange Avenue and on Ham Lane at Kirkwood Drive with funds provided by the
Lodi Unified School District for the benefit of Washington and Lakewood Elementary
Schools.
E-7 Accepted improvements under "Lockeford Street Water Main (Church Street to Sacramento
Street) and Olive Court Water Main Replacement (Pleasant Avenue to Church Street)
Project' contract.
E-8 Adopted Resolution No. 2006-74 authorizing the City Manager to execute Contract Change
Order with Western Water Constructors, Inc., of Santa Rosa, for payment of services for
work associated with emergency repair of 48 -inch domestic sewer outfall pipe at White
Slough Water Pollution Control Facility and appropriating $88,000.
E-9 Adopted Resolution No. 2006-75 approving improvement deferral agreement for 1243 East
Harney Lane and authorizing the City Manager and City Clerk to execute the agreement on
behalf of the City.
E-10 Adopted Resolution No. 2006-76 approving the master lease agreement between the City of
Lodi and Lodi Grape Festival and National Wine Show Association for use of various festival
ground facilities that will serve both indoor and outdoor recreational programs, which will run
for the period July 1, 2006 to June 30, 2011, at a lease rate of $20,000 per year.
E-11 Adopted Resolution No. 2006-77 authorizing transfer of $202,200 in Community
Development Block Grant funds from project 02-07 Housing Assistance Programs to project
05-02 LOEL Senior Housing Acquisition Project.
E-12 Re -set public hearing for June 7, 2006, to consider adopting resolution implementing
previously authorized Consumer Price Index -based water and wastewater rates.
COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
00 Mary Hoff stated that property owners surrounding the proposed Delta College satellite campus
site on east Victor Road were shocked to read about it in the newspaper with no forewarning.
The land has always been zoned AG -40. The levee recently broke near the proposed campus
site and half of the 168 acres is underwater. The river is wildlife sanctuary and yet they are
planning on putting a police academy and shooting range in the area. She requested that this
matter be placed on a future agenda so that residents can express their concerns.
Mayor Hitchcock explained that the satellite campus project is only in an exploration stage at
this point and that the appropriate body for concerned residents to address would be the Delta
College Board of Trustees, as the City of Lodi does not have any authority or jurisdiction over
the matter.
W
Continued May 3, 2006
Council Member Hansen stated that an Environmental Impact Report would be done on the
project and public input would be sought at that time.
oo Sandy Marchland expressed concern about the increased traffic, crime, etc. that this project
would bring to the area. She asked Council to consider other options that would not have such
a huge impact on the condensed amount of people in a small area.
00 Lori Ferdun pointed out that the area for the proposed college campus has grape vineyards that
would have to be torn out. Ms. Ferdun's property was in the middle of the proposed site. She
urged Council to consider Armstrong Road or property at White Slough instead. She read in
The Record newspaper that Council Member Hansen stated her family was posturing for more
money, which Ms. Ferdun stated was untrue and asserted that there was no amount of money
that Delta could offer her to move as they could not replace her home or environment. She felt
that the property owners should have been made aware of the proposal before it was published
in the newspaper. She asked that the matter be scheduled on a future agenda and that Delta
College representatives be in attendance.
co Terry Fena commented that the project hinges on the annexation of the property into the City of
Lodi and it providing services. Delta College has addressed the Council on the matter. Council
Members Hansen and Johnson serve on the Delta College Task Force and have expressed their
willingness to support the project. For this reason, he felt that they should abstain from further
City business regarding the matter due to a conflict of interest. He asked that the matter be
placed on a future agenda and that residents be notified in advance of any future proposed
action between the City and Delta College.
Mayor Hitchcock explained that no property will be annexed until the owners request it. The
selection of the property will be Delta College's decision. Delta College will be going through a
due diligence period for the next six months and holding public meetings. If the project
proceeds, it will eventually be brought back to the City Council.
0o Ann Cerney pointed out that there had been an investment of City personnel into this issue and
she supported the request of property owners to be heard when the matter comes before
Council.
00 Kathy Grant invited Council and the public to attend the Lower Mokelumne River Stewardship
Committee open house on May 10.
00 Ray Golub stated that his property is adjacent to and has been impacted by the Lower
Sacramento Road widening project. He submitted 27 pages of information and photos (filed).
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
co Council Member Hansen reported that he attended a conference in Washington D.C., April 23
to 26, sponsored by the Northern California Power Agency and Northwestern Public Power
Agency. Meeting topics included:
1) The California Information Systems Operation and the fact that it does not address issues
related to municipal utilities;
2) The Central Valley Project, which is a series of dams from which the City receives some of
its electricity. Congress was to review and eliminate some of the environmental acts and
regulations that were enacted in 1970; however, it has failed to do so. The cost of the
restrictions amount to $70 million, and it is hoped to get them reduced to $50 million;
3) Security issues related to dams, of which the cost would be passed on to municipal- and
investor-owned utilities. It is desired that dams be identified that are deemed to be
essential facilities.
0o Council Member Mounce stated that she recently asked Central Valley Waste Services
(CVWS) to address the issue of garbage in alleys. CVWS sends letters to property owners
who are creating problems; however, many are absentee owners so nothing is accomplished.
Drivers take photos of garage left on sidewalks, curbs, and alleys, and Ms. Mounce suggested
Continued May 3, 2006
that a partnership be created between CVWS and the Code Enforcement Division of the
Community Development Department. She asked that a Shirtsleeve Session be scheduled to
discuss the matter. She recalled previously requesting that a policy be developed to address
catering trucks and unlicensed vendors. She thanked the students of Vineyard Christian Middle
School who sent letters promising to work with the neighbors surrounding the school.
00 Mayor Pro Tempore Johnson reported that he and City Manager King attended the quarterly
dinner meeting of the Central Valley Division of the League of California Cities. He encouraged
all Council Members to get involved with the League on a local level as there is a vast wealth of
knowledge within the group.
0o Council Member Beckman stated that the San Joaquin Council of Governments (SJCOG) is
preparing a summary of the One Voice trip to Washington D.C. and, when completed, he will
present the report to Council.
00 Mayor Hitchcock reported that she recently participated in a SJCOG meeting, at which a
unanimous vote in support of Measure K (half cent sales tax dedicated to transportation) took
place.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
None.
PUBLIC HEARINGS
None.
J. COMMUNICATIONS
J-1 Claims filed against the City of Lodi — None
J-2 The following postings/appointments were made:
a) The City Council, on motion of Council Member Beckman, Mounce second,
unanimously directed the City Clerk to post for the following vacancy:
Lodi Animal Shelter Task Force
Barbara Steinheimer Unspecified term limit
J-3 Miscellaneous — None
K. REGULAR CALENDAR
K-1 "Adopt resolution amending Public Works Department engineering fees for various
development services; amending Community Improvement fees for administrative
procedures; and amending Planning fees to add pre -development review and hourly
charges"
Community Development Director Hatch explained that, in an effort to recover costs for
Public Works services in its Engineering Division, staff is recommending that engineering
fees be amended for annexation, development plan review, tentative and parcel map review,
condominium conversion review, and site and architectural plan and building permit review.
Public Works conducted an analysis of the personnel time and associated costs with
regard to the review of applications and proposals. The proposed fee schedule is listed on
Exhibit B of the staff report (filed). The rate was based upon the average application review
time. It is a "fully loaded" time that includes salary, benefits, and proportionate hourly share
of overhead associated with the engineering function. Exhibit D (filed) shows the fully
loaded hourly rate for Public Works staff. Staff recommends that a time and material
charge be imposed on larger projects. The flat fee would be used on standard projects;
however, time would be recorded and charged for projects that involve extensive
al
Continued May 3, 2006
environmental review or analysis of subdivision maps, annexations, etc. Community
Development fees are listed on Exhibits E, F, and G (filed). Community Development will
track time for larger projects and bill in addition to the set fee. There are two new additions
and procedures proposed: 1) predevelopment review in which staff would meet with an
interested party, perform an initial evaluation, conduct a fatal flaw analysis of the proposal,
and provide initial recommendations, and 2) a new fee is proposed for non-residential
condominium conversion.
Council Member Hansen noted that Exhibit B states, "These fees shall be adjusted
annually by inflation based on the Consumer Price Index (CPI)."
Mr. Hatch explained that the resolution states that the engineering fees will be subject to
an annual adjustment; however, it does not include planning or community improvement
fees. When there is a change in the salary structure, staff will reflect the change in the
hourly rates and return to Council for approval.
Wally Sandelin, City Engineer, stated that there is a cutoff on residential projects at 75
units, which is about 15 acres. Staff will continue to monitor time and cost to ensure the
CPI increase is adequate.
Mayor Hitchcock emphasized the importance of full cost recovery because these services
are for the benefit of profit making individuals and organizations.
Mr. Hatch replied that staff is committed to having the fees be the true and actual cost of
processing development applications.
In response to Mayor Pro Tempore Johnson, Mr. Hatch explained that simple projects such
as a home occupation do not have an hourly rate added to them. Most minor
improvements do not go before the Site Plan and Architectural Review Committee. The
fees are to cover actual costs; there is no provision to make a profit as is seen with
consultant fees.
PUBLIC COMMENTS:
oo Ann Cerney hoped that when fees are paid for predevelopment review, it becomes
public information, to which Mr. Hatch confirmed that it would.
MOTION/ VOTE:
The City Council, on motion cf Council Member Beckman, Hansen second, unanimously
adopted Resolution No. 2006-78 amending Public Works Department engineering fees for
various development services; amending Community Improvement fees for administrative
procedures; and amending Planning fees to add pre -development review and hourly
charges.
RECESS
At 8:50 p.m., Mayor Hitchcock called for a recess, and the City Council meeting reconvened at 9:00
p.m.
K. REGULAR CALENDAR (Continued)
K-2 "Adopt resolution authorizing the City Manager to execute professional services agreement
with Fehr & Peers Transportation Consultants, of Walnut Creek, for preparation of Travel
Demand Forecasting Model for General Plan update and appropriating funds ($160,000)"
Wally Sandelin, City Engineer, reported that the last traffic model was prepared in 1990 in
conjunction with the current general plan. Staff is requesting that Council approve
preparation of a new model for existing conditions with the intent to accelerate the general
plan process.
5
Continued May 3, 2006
In response to questions posed by Mayor Hitchcock, Community Development Director
Hatch explained that staff compiled a list of requirements for the general plan update, which
was mailed to 24 consultant firms. In the responses, there were two traffic engineers that
virtually all the consultants used. The seven responses to the Request for Qualifications
that were received were reviewed by staff, and three firms were selected that were most
responsive. Each of the three firms listed Fehr & Peers Transportation Consultants. By
taking the recommended action under this item, fiscal efficiency will be achieved by not
paying a 10% to 15% markup for the master consultant to work with the traffic engineer.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
adopted Resolution No. 2006-79 authorizing the City Manager to execute professional
services agreement with Fehr & Peers Transportation Consultants, of Walnut Creek, for
preparation of Travel Demand Forecasting Model for General Plan update and appropriating
funds in the amount of $160,000.
NOTE: The following item was discussed out of order.
K-7 "Adopt resolution approving artwork for elevated water tank and appropriating funds for
artwork application ($30,000)"
Public Works Director Prima reported that Council previously authorized staff to work with
the Public Art Advisory Board to solicit proposals for an artwork project on the water tank.
Originally, the artist proposed to use applied vinyl; however, there were concerns of
longevity. Paint will last approximately 15 years and cost $46,000 for the public art portion
of the project. The entire water tank will be painted at a cost of $49,000, which will be
deducted from the Water Fund. The project will be completed this summer.
Council Member Hansen asked that "incorporated 1906" be large enough so it is clearly
visible.
MOTION:
Council Member Mounce made a motion, Beckman second, to adopt Resolution No. 2006-
80 approving artwork for elevated water tank and appropriating funds in the amount of
$46,000 for artwork application.
DISCUSSION:
Mayor Hitchcock stated that she would support the proposal only because it is the City's
Centennial year. She expressed concern due to the high cost of the project. She recalled
that when the Public Art Policy was created, the 2% was not funded, so it takes money for
which impact fees were contributed.
PUBLIC COMMENTS:
0o Sara Costa stated that she sent letters to every Mayor over the past seven years,
hoping to generate interest in this project. She thanked Council Member Beckman for
responding last year and thanked Council for its support.
Mr. Prima confirmed that when the Public Art Policy was originally adopted the
decision was to take 2% out of impact fees for the Art Fund. The money is transferred,
so there is now a separate fund for the art program. When staff brought forward the
sewer fees earlier this year, the art piece was separated out and voted on as a
surcharge. Staff will be coming back to Council on the remaining seven impact fees.
Con
Continued May 3, 2006
00 Ray Golub mentioned that during the summer of 2000 he crossed the United States on
a bicycle, riding a total of 4,300 miles. In every town he headed to, his inspiration was
looking at the water towers, as they exemplified home and a Pace to rest and be
welcomed. He stated that Sign Tech, a company in Sacramento, does the vinyl
application of artwork.
VOTE:
The above motion carried by a unanimous vote.
K-3 "Adopt resolution complying with the order of the San Joaquin County Superior Court dated
February 10, 2006, to vacate approval of the resolutions regarding the Lodi Shopping
Center: a) certification of Environmental Impact Report 03-01 (SC#2003042113); b) approval
of Use Permit U-02-12; and c) approval of Tentative Parcel Map 03-P-001; and adopt
resolution authorizing the City Manager to execute two agreements to prepare
Environmental Impact Report amendments for the Lodi Shopping Center: one with Pacific
Municipal Consultants for $72,000 and one with Bay Area Economics for $46,075"
Community Development Director Hatch recalled that the Planning Commission and
Council evaluated and certified the Environmental Impact Report (EIR) and approved a use
permit for the Lodi Shopping Center project, which includes a Super Wal-Mart store. The
City's approvals, specifically the certification of the EIR, were challenged in Superior Court,
and on December 19, 2005, the court found the EIR to be deficient. On February 10, 2006,
the City was ordered to vacate the approvals. Two resolutions are presented to Council for
adoption: 1) to vacate the approvals and comply with the court order, and 2) authorize the
City Manager to enter into agreements to prepare the updated and revised EIR.
NOTE: Council Member Beckman recused himself due to a conflict of interest regarding
the Wal-Mart project and vacated his seat at the dais at 9:34 p.m.
Bert Verrips, Project Manager for Pacific Municipal Consultants (PMC), acknowledged that
his firm was involved in preparing the original EIR. A downtown study was prepared prior to
PMC being hired; however, they used the study in the EIR. Bay Area Economics will
prepare the economic impacts analysis needed due to the Court's decision.
Mayor Hitchcock expressed concern about the two-month timeframe to complete the
economic impact analysis.
Mr. Hatch assured Ms. Hitchcock that staff also wants a thorough and complete analysis
that can withstand additional litigation.
Mr. Verrips explained that an economic impact analysis normally take two months to
complete if there is adequate staff devoted to it. The EIR process is, essentially, being
started over again. The California Environmental Quality Act process involves many reviews
and takes a minimum of nine months to complete in the best of circumstances.
PUBLIC COMMENTS:
0o Ann Cerney spoke on her behalf as well as Citizens for Open Government and stated
that the City should start from scratch and prepare a complete EIR.
MOTION #1 / VOTE:
The City Council, on motion of Council Member Hansen, Johnson second, adopted
Resolution No. 2006-81 complying with the order of the San Joaquin County Superior Court
dated February 10, 2006, to vacate approval of the resolutions regarding the Lodi Shopping
Center: a) certification of Environmental Impact Report 03-01 (SC#2003042113); b) approval
7
Continued May 3, 2006
of Use Permit UO2-12; and c) approval of Tentative Parcel Map 03-P-001. The motion
carried by the following vote:
Ayes: Council Members — Hansen, Johnson, Mounce, and Mayor Hitchcock
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — Beckman
MOTION #2 / VOTE:
The City Council, on motion of Council Member Hansen, Johnson second, adopted
Resolution No. 2006-82 authorizing the City Manager to execute two agreements to prepare
Environmental Impact Report amendments for the Lodi Shopping Center: one with Pacific
Municipal Consultants for $72,000 and one with Bay Area Economics for $46,075. The
motion carried by the following vote:
Ayes: Council Members — Hansen, Johnson, Mounce, and Mayor Hitchcock
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — Beckman
NOTE: Council Member Beckman returned to the dais at 9:49 p.m.
K-4 "Authorization to fill a previously `frozen' Junior/Assistant/Associate Planner position in the
Community Development Department"
City Manager King reported that there were four planner positions in the Community
Development Department: City Planner, Planner Manager/Senior Planner; and two planners
at either the junior, assistant, or associate planner level. There are two planner position
vacancies and enough money in the budget to fill both positions. Staff is currently engaged
in a recruitment to fill the positions.
MOTION:
Council Member Beckman made a motion, Johnson second, to authorize the City Manager
to fill a previously "frozen" Junior/Assistant/Associate Planner position in the Community
Development Department.
DISCUSSION:
Council Member Mounce pointed out that if there was a backlog of work then the
community would grow slower, which she was in favor of.
VOTE:
The motion carried by the following vote:
Ayes: Council Members — Beckman, Hansen, Johnson, and Mayor Hitchcock
Noes: Council Members — Mounce
Absent: Council Members — None
K-5 "Authorize the City Manager to execute fee adjustment agreement for Vintage Oaks
Subdivision" was pulled from the agenda pursuant to the request of the applicant.
K-6 "Authorize the City Manager and City Attorney to enter into negotiations with San Joaquin
County for provision of domestic wastewater treatment services for County Service Area 31
(Flag City) and proceed on necessary studies"
Public Works Director Prima reported that the County has again returned to the City and
asked for serious consideration of connecting the Flag City development to the Qty's
wastewater treatment plant. To do so would require an amendment to the Municipal Code.
Staff is asking Council for authorization to enter into negotiations with the County. The cost
Continued May 3, 2006
of evaluating the impacts would be borne by the County. He reviewed points to address in
the agreement as was outlined in the staff report (filed). Depending on the actual flow and
strength, the surcharge revenue to the General Fund would be approximately $100,000 per
year.
Deputy City Attorney Magdich referenced Dateline Builders v. Santa Rosa, in which the
court determined that the city could decide not to provide sewer service to a particular
builder because it did not comport with the plan. She mentioned that this may be an
opportunity for the City to consider the corridor between Lodi and Interstate 5. It is within
the City's police power to use this means (in terms of sewer service) for planning and
growth.
City Manager King acknowledged that one of the major benefits in providing sewer service
would be the ability to control the area. Issues to discuss with the County include the
regional presence that is undercutting the tax base in Lodi, the two hotels in Flag City are
not paying the 3% Lodi Tourism Business Improvement District assessment, and yet they
are benefiting from it.
In reply to Mayor Pro Tempore Johnson, Mr. King explained that the County could consider
expanding the area to improve the economies of scale or to get domestic wastewater
service from Lodi or Stockton for County Service Area 31.
PUBLIC COMMENTS
oo Tom Flinn, San Joaquin County Public Works Director, recalled that when Flag City
was first developed it was authorized to discharge to the Delta. That ability is being
eliminated over time. Flag City is three quarters built out at this time. He noted that it
is the gateway to Lodi and by working cooperatively its appearance could be improved,
which would benefit both parties. He estimated the cost of sewer treatment plant
upgrades as required by the state to be $10 million to $12 million.
Council Member Hansen expressed an interest in exploring the issue of the corridor
from Highway 12 at Lower Sacramento Road west to Interstate 5.
Council Member Beckman suggested that the additional effluent be used to irrigate
landscaping and further enhance the aesthetic quality of the area.
Mayor Pro Tempore Johnson asked whether the seven mile sewer line would be
discussed during negotiations, to which Mr. King replied that he would rather focus
initially only on Flag City and if possible would get a broader understanding.
oo Ann Cerney felt the City was placing a lot of weight on what could be accomplished in
regard to control of the area, based on the limited legal authority of just one case. She
saw a trend of matters coming to the Council that have a distinct land use character;
however, they were not previously reviewed or discussed by the Planning Commission,
and the California Environmental Quality Review has not been discussed at all.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Beckman second, unanimously
authorized the City Manager and City Attorney to enter into negotiations with San Joaquin
County for provision of domestic wastewater treatment services for County Service Area 31
(Flag City), proceed on necessary studies, and return to Council with a response by July
31, 2006.
K-8 "Adopt resolution authorizing the City Manager to cancel the original plan of reconstructing
Killelea Substation and installing two 60kV power circuit breakers at Industrial Substation;
to implement the scaled-back rehabilitation project of Killelea Substation; to have Power
Engineers, Inc., of Hailey, ID, re -scope, re-engineer, and re -design the scaled-back project;
and to negotiate its construction with Rosendin Electric, Inc., of San Jose, CA
($3,479,110)"
I
Continued May 3, 2006
Electric Utility Director Morrow recalled that Council had previously approved the demolition
and reconstruction of the existing Killelea substation. On December 21, a contract with
Rosendin Electric was approved. Mr. Morrow stated that a scaled-back rehabilitation of the
substation could save $3 million and achieve 85% to 90% of the benefits. Redesign and
renegotiation of the contract would need to be accomplished as well as returning to Council
with the amended contract. He estimated that the project could be complete by summer
2007. He stated that there are currently no reliability issues or problems at the Killelea
substation. It is an old substation, and spare parts for the electronics are becoming more
difficult to acquire. The scaled-back proposal will include complete replacement of all the
electronics, as well as state of the art switchgear and communication devices. The
transformers and 60 Kv breakers could easily be added later as necessary. The
transformers are relatively lowly loaded and there is no new capacity being added to the
substation. He believed the scaled-back rehabilitation would be adequate for the next 10 to
15 years.
In reply to Council Member Mounce, Mr. Morrow stated that aesthetically it will look like a
new substation. Some of the overhead equipment will be put inside a control building.
Deputy City Attorney Magdich confirmed that it would be necessary to remove a vacant
house. She initiated negotiations with the property owner's attorney and an assessment
has been done on the property. The next step in the process will be to have an updated
appraisal done.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
adopted Resolution No. 2006-83 authorizing the City Manager to cancel the original plan of
reconstructing Killelea Substation and installing two 60kV power circuit breakers at
Industrial Substation; to implement the scaled-back rehabilitation project of Killelea
Substation; to have Power Engineers, hc., of Hailey, ID, re -scope, re-engineer, and re-
design the scaled-back project; and to negotiate its construction with Rosendin Electric,
Inc., of San Jose, CA, in the amount of $3,479,110.
VOTE TO CONTINUE WITH THE REMAINDER OF THE MEETING
The City Council, on motion of Mayor Pro Tempore Johnson, Hansen second, unanimously voted to
continue with the remainder of the meeting following the 11:00 p.m. hour.
K. REGULAR CALENDAR (Continued)
K-9 "Receive information regarding transfer of funds to the Electric Utility Capital Outlay Fund
161 ($2,000,000)"
City Manager King recalled that in 1999 when the Electric Utility capital bond was approved
the official statement had a long list of capital expenditures on which the money could be
spent. When the Council entered into the indenture, it authorized the expenditure of the
bond proceeds on those items. He reported that in the absence of any extraordinary
infusion of cash, the cash balance at the end of this fiscal year will be insufficient to provide
coverage for the obligation of the debt service. Staff will be using $1,485,000 to $2 million of
bond proceeds to offset the cost of capital projects that are contained in the 2005-06
budget.
In reply to Mayor Hitchcock, Electric Utility Director Morrow stated that next year the Utility
will have 12 months of rate increase revenue and there will be a slight decrease in the
projections of power costs. He believed it would not be necessary next year to use bond
proceeds for operating expenses.
MOTION / VOTE:
There was no Council action taken on this matter.
10
Continued May 3, 2006
K-10 "Adopt resolution authorizing the City Manager to execute Task Order with Treadwell &
Rollo for PCE Central Plume Remediation Phase I Dual Phase (Soil Vapor and
Groundwater) Extraction Project ($302,000) and revising hourly rates"
Public Works Director Prima described the dual phase (soil vapor and groundwater)
extraction process. Treadwell & Rollo believes that the cleanup can be done at a lower
cost by doing a series of these types of wells in the central plume source area. The
proposed scope of work includes design and installation of one such well to verify the
design criteria and cost estimates prior to installing a full system. In addition, Treadwell &
Rollo has requested that the master agreement, first entered into in 2004, be revised to
update some of the hourly rates.
MOTION / VOTE:
The City Council, on motion of Mayor Hitchcock, Mounce second, unanimously adopted
Resolution No. 2006-84 authorizing the City Manager to execute Task Order with Treadwell
& Rollo for PCE Central Plume Remediation Phase I Dual Phase (Soil Vapor and
Groundwater) Extraction Project ($302,000) and revising hourly rates.
L. ORDINANCES
None.
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
11:14 p.m.
ATTEST:
Susan J. Blackston
City Clerk
11