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HomeMy WebLinkAboutMinutes - April 18, 2006 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, APRIL 18, 2006 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, April 18, 2006, commencing at 7:01 a.m. A. ROLL CALL Present: Council Members — Beckman, Hansen, Johnson, Mounce, and Mayor Hitchcock Absent: Council Members — None Also Present: City Manager King, City Attorney Schwabauer, and Deputy City Clerk Perrin B. TOPIC(S) B-1 "Discuss 'Project Opportunity,' a review of City -owned property, its use, and productivity" City Manager King stated that the City of Lodi owns over 1,400 acres (most of which is at the White Slough Water Pollution Control Facility) and 118 parcels throughout the City. In reviewing the City's real estate assets, staff looked at the properties that deliver service to the public (i.e. fire stations, parks, etc.), as well as other properties that may not have a specific purpose or that may not be developed for a period of time. Fire Chief Pretz reported that this property survey (filed) is an outgrowth of the City Manager's work plan, which should be reviewed to determine if properties are at their most productive use, if changes are necessary, or whether the City should continue to own the property or sell it and use the proceeds to further the City's agenda on a number of projects. Chief Pretz reviewed the top 11 properties as identified by staff. 1119 — 1120 Awani Drive — This property was an old city dump, which was originally owned by the City, sold, and then re -purchased by the City. An environmental review is necessary in order to determine what is on the property and whether or not it may be developed. Mayor Pro Tempore Johnson commented that, when the Parks and Recreation Master Plan was discussed, this property was considered to be another access point to the river, and it was vehemently fought by the neighbors. 2 E. Lodi Avenue — This is the Maple Square property, which has future plans for the front- end of the right of way to be part of the under or overpass over the railroad tracks. The possibility exists to sell off or otherwise develop the back half of that acreage, which is approximately 0.62 acres. 22 E. Locust Street and 111 N. Stockton Street — These properties were acquired as part of the proposed indoor sports complex and, with the creation of the Grape Bowl Ad Hoc Committee, may be better suited to go onto or be built in conjunction with the Grape Bowl property. Additionally, the City has not yet acquired all of the necessary properties required for the sports complex. 100 E. Pine Street — This is the New Shanghai building, which currently houses Lodi Adopt - A -Child. This is an appropriate use for the property; however, there may be a better place to house Adopt -A -Child (e.g. the parking structure) in order to turn this facility into a different type of rental space. 275 Culbertson Drive — This is a 1.13 -acre property for a future neighborhood park; however, it has great potential for other uses. Continued April 18, 2006 500 S. Guild — This 9 -acre site was considered as a possible location for the new animal shelter and Electric Utility headquarters. It would appear that this project will not be developed in the near future and is an asset that is not being used. City Manager King stated that this 9 -acre property would be the site to seriously consider whether or not the City uses it for generation of cash. The prospect of developing this property for Electric Utility purposes is not anticipated in the near future, and it presents the least amount cf challenges of all the properties. During the budget process, staff will present issues associated with Electric Utility that the City continues to struggle with. Council Member Hansen stated that, when the City was in a better financial condition, the animal shelter was the number one priority on the capital projects list. The cost of the animal shelter was reduced because the City had the land for it. He expressed concern about selling the property and suggested that the City hold onto a couple of acres for the future animal shelter, to which Mr. King replied that the City could easily do so and still be able to generate interest in the development community. 705 E. Lodi Avenue — This 1.01 -acre site is where Fire Station 2 is currently located. Chief Pretz explained the "triple flip" concept that involves the San Joaquin County Mosquito and Vector Control District, which presently has a lease at White Slough that it would like enhanced. In order to do that, the Mosquito District would abandon or trade its long-term lease at White Slough for the property it owns on Beckman Road. The City would make the swap and sell the Fire Station 2 property to the highest bidder, using the money to off- set costs of rebuilding Fire Station 2 on the Beckman Road property. Council Member Mounce expressed support for this concept as it would solve a number of problems facing the City. In response to Council Member Hansen, Public Works Director Prima explained that the property leased by the Mosquito District is south of the plant and consists of a series of small ponds used to raise mosquito fish, in addition to a small trailer used as an office. The Mosquito District is interested in a long-term lease and in developing the property to be similar to that on the Beckman Road site. The City cannot sell the land as it would have to de -annex it. The proposal does not conflict or overlap with the potential future power generation plant. Mayor Pro Tempore Johnson stated that this idea is worth being explored; however, he stated that he would like to see profits from the sale of property also be reserved for the Parks and Recreation Department, which has been struggling for years. Mayor Hitchcock questioned if any of the park properties were purchased with impact fees, because if they are not used for parks, the City should reimburse those impact fees. City Manager King responded that there are surplus procedures in place. If the Council declares property as surplus, the Planning Q)mmission has to concur that the surplus procedure would be consistent with the General Plan. Typically, the City would obtain an appraisal for the property and, with the exception of park land, make the land available at market price for development of low-income housing or for park purposes. If there is no interest in buying the property at the appraised price, it would then be put out for a formal bid process. Land originally dedicated as park land is different, because the Cty is primarily obligated to find replacement park land, for which there are specific procedures. In reply to Mayor Hitchcock, City Attorney Schwabauer stated that impact fees can only be used for items within the impact fee program and would need to be returned. 903 W. Turner Road — This parcel is 12.75 acres of undeveloped area west of Lodi Lake. It is used occasionally as a parking lot, but it was purchased as part of a grant for future expansion of Lodi Lake and the properties surrounding it. 2 Continued April 18, 2006 Mayor Pro Tempore Johnson questioned what the time line is in looking A this list of properties, to which Chief Pretz responded that a reasonable time frame would be 20 years; however, due to the City's financial constraints, it might be more realistic to forecast out 5 years. Mr. Johnson suggested that the City revisit the capital projects "wish list" to determine what is current, timely, and needed. In regard to the Turner Road property, Mr. Johnson cautioned that it be studied carefully, as the loss of land would prevent future expansion of the Lake. He suggested that future development agreements or a partial sale of the property could help fund enhancements needed at Lodi Lake. City Manager King stated that the City could lease two or three acres of this property for commercial development for a longer period of time, and the revenue from that lease could be dedicated to the maintenance of Lodi Lake. Future City Councils would still have the asset to develop and expand. In response to the 2229 Tienda Drive property, which is 8.03 acres of undeveloped park, Mr. Johnson stated that this property was a gift from the Roget Family to be used for park purposes. He questioned if the property would be returned to the Roget Family if it was not used for park purposes, to which City Attorney Schwabauer responded that he was unsure whether or not the Roget Family restricted the gift in that way; however, he would look into the matter. Chief Pretz added that there is a portion of the Roget property that the City used impact fees to purchase, and any disposition would not necessarily involve the gifted portion. Century Boulevard at Stockton Street — This area is a right of way and has been difficult to maintain. A portion of it is a future right of way for Century Boulevard crossing the railroad tracks; although, it is unknown when this will occur. In response to Mayor Pro Tempore Johnson, Mr. Prima responded that the plan is to have Century Boulevard run as an east -west thoroughfare; however, it is unlikely that it will be extended through as an at -grade crossing. The railroads oppose at -grade crossings on a main -line track, and the California Public Utilities Commission is very reluctant to approve it. Mayor Hitchcock questioned what the plan was for the property on Lockeford Street, which was not on staff's condensed list, as it was purchased with no plan in mind. Chief Pretz responded that, in earlier discussions, the area from Turner Road south to Lockeford Street, between Stockton Street and an eastern boundary, was included as one large parcel. It was decided not to include it on the list because the Grape Bowl Ad Hoc Committee is currently reviewing options for the area. Mayor Hitchcock expressed her preference that, if Council is going to consider selling properties, it should review the entire list, and the area surrounding the Grape Bowl should be included in the discussions. Chief Pretz stated that Council also has redevelopment options, without eminent domain, as a means to acquire needed property. The San Joaquin Council of Governments Multi -Species Habitat Conservation and Open Space Technical Advisory Committee approached staff about the concept of conservation easements. There are 400 to 500 acres in the southern boundary of White Slough, which the City could sell the easement rights to and allow for the land to be kept under its current use in perpetuity (i.e. the City could not develop it). Council Member Hansen stated that the county is in desperate need to meet certain requirements in terms of endangered species, and selling the easement rights to the county would generate significant revenue for the City. There are a lot of ramifications that would need to be examined, and he hoped that this could be done without jeopardizing the future of White Slough. Continued April 18, 2006 Mayor Pro Tempore Johnson requested that Council be provided with information on the possible costs and how the figure of $10,000 per acre compares with what others are paying elsewhere. Council Member Beckman stated that for the last two years he has attended the San Joaquin Council of Governments Multi -Species Habitat Conservation and Open Space Technical Advisory Committee meetings, and he was shocked to see the $10,000 figure, because it was very high compared to other easements it has purchased. In 20 years, easements will be as high as $30,000 per acre. Mr. Beckman stated he would be in favor of this; however, he would like a very clear understanding of how long the City will be able to discharge effluent on land. If the state suddenly puts restrictions on discharging, the City will own a large piece of land that it cannot use, and once those easements are in place, it cannot be undone. Council Member Mounce questioned if the developers of the Lowe's project purchased and set aside land as part of its mitigation plan and, if so, where it is located. City Attorney Schwabauer stated that cne of the stipulations in the settlement agreement with Lodi First was that it would be "prime agricultural land'; however, the area immediately surrounding Lodi did not fit the statutory definition, and Lowe's purchased the land south of Elk Grove. Mayor Hitchcock stated that she preferred the City property list to be all of those that are not being utilized for their intended purpose, including the source of money that paid for them to help determine if there are gifts, donations, or restrictions. Council Member Hansen preferred that the matter not be revisited until the City has funding to build the capital projects on the "wish list." C. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. D. ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at 8:25 a.m. ATTEST: Jennifer M. Perrin Deputy City Clerk 0 AGENDA ITEM g" I CITY OF LODI COUNCIL COMMUNICATION ' TM AGENDA TITLE: Discuss Project Opportunity, A Review of City -Owned Property, its Use and Productivity MEETING DATE: April 18, 2006 PREPARED BY: Michael E. Pretz, Fire Chief and Blair King, City Manager RECOMMENDED ACTION: Review the use and productivity of the City's real estate portfolio to ensure an appropriate return is being realized in public services or financially; and, discuss potential use, development, or disposition of identified underutilized property. BACKGROUND INFORMATION: The City of Lodi is a large property owner. Staff has conducted a preliminary review to identify City property that could be considered under-utilized. The City of Lodi owns 118 parcels ranging in size from .01 acres to over 1,000 acres for a total real estate portfolio of 1,400 acres (for the sake of comparison, General Mills owns 75 acres in Lodi). The majority of these parcels include parks, pump stations, electric utility sub -stations, fire stations and miscellaneous properties used in conducting City business. (See attached inventory list.) This real estate represents a significant investment in public assets. The City Council and staff have a fiduciary responsibility to ensure that real property assets are serving the best interest of the public. An important constituent of providing City services is City ownership of real estate. However, publicly -owned property is not taxed, (unless a tenant pays possessory interest tax or a utility pays an in -lieu tax), and is typically "dead weight" on the tax roles. In some cases, the City properties are serving a public benefit by housing a community program or service. In those cases, the Council may want to verify that this is consistent with the Council desires. Also, there are properties being banked for a future use. The Council should re -affirm the use for which the property is being banked, check the time horizon or practicality of development and confirm its desire to bank the property or explore temporary uses. APPROVED: Blair King, City Manager City staff has reviewed City -owned property and has identified several parcels that could be looked at more closely and/or concepts that deserve more scrutiny. The following 11 properties have been identified for initial review at the Shirtsleeve session; they are intended to initiate the discussion: Address 1. 1119-1120 Awani Drive 2. 2 East Lodi Avenue 3. 22 East Locust Street 4. 100 East Pine Street Parcel Size 3.65 acres - vacant 0.62 acres 0.79 acres 0.31 acres 5. 275 Culbertson Drive 1.13 acres 6. 500 South Guild Avenue 9.09 acres 7. 705 East Lodi Avenue 1.01 acres 8. 903 West Turner Road 12.75 acres 9. 2229 Tienda Drive 8.03 acres 10. Century Blvd. at Stockton St. 3.06 acres 11. 111 N. Stockton St. 0.62 acres Parcel Description The property is an old city dump site and will need an environmental review in order to determine proper disposition. Currently Leased Acquired as part of the indoor Sports Arena. New Shanghi Building - currently houses Adopt -A - Child offices. Neighborhood Park Future EUD/Animal Shelter Fire Station #2 Undeveloped area west of Lodi Lake. Undeveloped Park Century Park Right of Way Parks and Recreation Annex This listing is not exhaustive and staff will continue to review all properties from the full property list to provide Council a more comprehensive report of property utilization. CONCEPTS: Part and parcel of examining the productivity of our real estate assets is looking at concepts for leveraging the city holdings to improve services or increase revenues or improve the tax base. The following are concepts intended to maximize the value of the city's assets. Accepting Conservation Easements at White Slough: An intriguing idea concerning the ability of the City to use White Slough property for future conservation easements is currently being researched. The San Joaquin COG Multi -Species Habitat Conservation and Open Space Technical Advisory Committee have inquired into the City's interest to sell development easements to the San Joaquin Council of Governments for White Slough agriculture land. Staff will continue research and discussion with the technical Advisory Committee. Fire Station Two Triple Flip: In addition to the conservation easements discussion, City staff members have been involved in informal and indirect conversations with Mosquito and Vector Control District personnel to consider a possible land swap of their Beckman Road property for additional property at White Slough. The District already leases property at White Slough. The Beckman Road property is well situated for relocating Fire Station #2. The current Fire Station #2 site would then be sold to pay for a new Fire Station. Downtown Hotel Feasibility: City staff is continuing evaluation of specific City -owned downtown properties as possible sites for a downtown hotel. A Shirtsleeve presentation is proposed within the next two months to discuss this concept. FISCAL IMPACT: Undetermined revenues could be realized depending upon Council direction. For example, if the City were to sell development rights on 500 acres at White Slough for $10,000 per acre in exchange for conservation easements, the City could realize $5 million in revenue. (A conservation easement is a public easement that limits the development of the property. If it is the City's intention to not develop the property there is little risk from this type of transaction.) . Another example would be that a new 75 -room high-end hotel on City -owned property could potentially bring in $150,000 - $200,000 annually in new Transient Occupancy Tax revenue, plus possessory interest tax, and new sales tax. In addition to these direct revenues, there would be a ripple effect resulting in derivative revenues to the City and other businesses in the downtown. However, these fiscal impacts are unknown and merely speculative. FUNDING: Not Applicable Ci 91 Michael E. Pretz, Fird Chief Attachment Blair King, Ci Manager City Owned Parcels APN Num. Dir Street Str. Acres Actual City Use 01523013 2101 W TURNER RD 1.81 McLane Substation, Well 7 01523015 903 W TURNER RD 12.75 Lodi Lake (westside) 01548013 1036 WOODHAVEN LN 0.02 Sewer Lift Station 01553056 2735 W TURNER RD 4.66 Katzakian Park 02704036 619 S LOWER SAC RD 0.01 future Tokay St. R/W 02710101 520 S LOWER SAC RD 0.14 Well 13 02714030 356 S SHADY ACRES DR 0.13 Well 9, Shady Acres SD Pump Station 02726008 2204 GRENOBLE DR 0.10 Pedestrian Walkway 02731010 2017 W VINE ST 0.14 Well 17 02741004 2229 TIENDA DR 8.03 Roget Park 02908206 401 N MILLS AV 0.14 Well 02917010 831 N LOWER SAC RD 0.07 Well 15 02921052 180 N LOWER SAC RD 0.55 Fire Station 4 02938011 0 20.94 Petersen Park, E -Basin, Sewer Lift Sta. 02941002 2206 W OXFORD WY 13.15 Glaves Park, B-1 Basin, Well 14 02952043 144 BOXWOOD CT 0.04 Pedestrian Walkway @ LSR/WID 03104004 1426 W CARDINAL ST 2.37 Kofu Park (Northwest por.) 03104021 1145 S HAM LN 21.49 Kofu Park, Municipal Service Center 03104024 2000 TIENDA DR 0.05 Sewer Lift Station 03114035 503 W VINE ST 0.18 Legion Park (Southeast por.) 03304022 1824 W TOKAY ST 11.99 Vinewood Park, B-2 Basin 03308043 835 S HUTCHINS ST 5.52 Legion Park (North por.) 03517408 1324 HOLLY DR 0.27 Candy Cane Park 03719025 125 S HUTCHINS ST 10.08 Hutchins Street Square, Well 3 03721014 11 N HUTCHINS ST 1.87 Emerson Park 03727016 303 W ELM ST 0.23 Police Bldg. (portion) 03727038 310 W ELM ST 0.97 Public Parking Lot, Court 1 03727046 215 W ELM ST 0.66 Police Bldg. (portion) 03728015 305 W PINE ST 0.39 Carnegie Forum 03902010 1101 W TURNER RD 0.71 Lodi Lake (along Laurel Ave.) 03910020 0 51.88 Lodi Lake 03938028 838 N HAM LN 0.10 Pedestrian Walkway 04111018 600 N PLEASANT AV 0.98 VanBuskirk Park 04116405 13 E PEFORCE AV 0.05 Alley 04122002 217 E LOCKEFORD ST 1.36 Parking Lot, Vacant (S/Armory) 04123039 333 N WASHINGTON ST 3.17 Armory Park, Armory 04124027 221 E LAWRENCE AV 15.24 Grape Bowl 04124028 350 N WASHINGTON ST 10.20 Lawrence Park, Zupo Field 04124041 401 N STOCKTON ST 7.53 Softball Complex 04125038 1119 AWANI DR 3.00 Scenic Overlook (por.) 04131055 407 E TURNER RD 0.05 Sewer Lift Station 04141001 1120 AWANI DR 0.65 Scenic Overlook (por.) 04146039 412 YOKUTS DR 0.04 Sewer Lift Station Access 04302109 201 W LOCUST ST 1.25 Library 04302213 215 W ELM ST 1.01 Police Bldg. (portion) 04302302 114 W LOCKEFORD ST 0.01 Well 04302610 11 W ELM ST 0.20 Public Parking Lot (Portion) 04302612 17 W ELM ST 0.16 Public Parking Lot (Portion) 04303109 210 W ELM ST 1.50 Public Safety Bldg., Parking Lot 04303111 221 W PINE ST 1.50 City Hall, Parking Lot 04303401 10 S CHURCH ST 0.43 Downtown Parking Lot #1 (por.) 04303409 30 S CHURCH ST 0.31 Downtown Parking Lot #2 04303707 50 N SACRAMENTO ST 1.32 Lodi Station Parking Structure 04303708 1 S SACRAMENTO ST 1.00 Lodi Station (por.) 4/12/2006 Page 1 of 3 CityParcels.xls City Owned Parcels APN Num. Dir Street Str. Acres Actual City Use 04303709 24 S SACRAMENTO ST 1.91 Lodi Station (por.) 04304304 114 W OAK ST 0.31 Downtown Parking Lot #3 04304313 117 W WALNUT ST 0.25 Downtown Parking Lot #4 (por.) 04304314 140 S CHURCH ST 0.13 Downtown Parking Lot #4 (por.) 04304315 120 S CHURCH ST 0.07 Downtown Parking Lot #4 (por.) 04304411 219 S SCHOOL ST 0.04 Abandoned Well #3 (fut. PCE cleanup site) 04304520 107 S SACRAMENTO ST 0.00 Electric Vault 04304703 112 S SACRAMENTO ST 0.01 Electric Vault ?? 04304705 6 E OAK ST 0.18 Lodi Station (por.) 04304707 8 E OAK ST 0.21 Lodi Station (por.) 04307201 100 E PINE ST 0.31 Old Shanghai (Adopt -A -Child lease) 04308204 22 E LOCUST ST 0.79 Vacant (acquired for Indoor Sports Facility) 04308407 111 N STOCKTON ST 0.62 Park & Recreation Annex 04308408 122 N MAIN ST 0.02 Park & Recreation Corp Yard, Water Tank 04308410 122 N MAIN ST 0.00 Park & Recreation Corp Yard, Water Tank 04308411 125 N STOCKTON ST 1.22 Park & Recreation Office 04308601 208 E LOCUST ST 2.64 Hale Park 04320228 543 E LOCUST ST 0.39 Kilellea Substation 04323006 705 E LODI AV 1.01 Fire Station 2, Well 1 04530033 1330 S SACRAMENTO ST 0.01 Industrial Wastewater Lift Station 04531001 2 E LODI AV 0.62 Maple Street Square (leased to AA group) 04710001 1050 S STOCKTON ST 8.96 Blakely Park, Well 6 04902014 824 E TURNER RD 0.35 Well 11 04904038 77 S CLUFF AV 0.14 Cluff SD Pump Station 04912031 6013 E ST RT 12 HY 0.04 Abandoned Well #11 04913002 18021 N KENNISON LN 0.16 Abandoned Well #10 04913047 17700 N GUILD AV 0.08 Abandoned Well #1 OR 04918028 515 N CLUFF AV 0.05 Sewer Lift Station 04925013 1215 E THURMAN ST 8.10 Reid Industrial Substation 04925061 500 S GUILD AV 9.09 Future EUD/Animal Shelter Yard 04925083 930 S BECKMAN RD 28.33 Pixley Park, C -Basin 05512003 12001 N THORNTON RD 158.57 Wastewater Treatment Plant (por.) 05512008 11889 N THORNTON RD 12.64 Wastewater Treatment Plant (por.) 05512011 0 N THORNTON RD 235.73 Wastewater Treatment Plant (por.) 05513004 12299 N THORNTON RD 65.65 Wastewater Treatment Plant (por.) 05513013 12351 N THORNTON RD 58.88 Wastewater Treatment Plant (por.) 05513016 0 160.00 Wastewater Treatment Plant (por.) 05515014 12919 N THORNTON RD 2.00 Wastewater Treatment Plant (vacant por.) 05515015 12849 N THORNTON RD 10.30 Wastewater Treatment Plant (por.) 05515017 12905 N THORNTON RD 6.20 Wastewater Treatment Plant (vacant por.) 05515029 0 225.35 Wastewater Treatment Plant (por.) 05519001 11839 N THORNTON RD 99.15 Wastewater Treatment Plant (por.) 05803010 2800 W KETTLEMAN LN 4.10 Future Elec. Substation, Well 05810020 1520 E HARNEY LN 0.30 Sewer Lift Station 05816053 2126 W KETTLEMAN LN 0.07 Well 20 (por.) 05816088 2126 W KETTLEMAN LN 0.05 Well 20 (por.) 05823023 0 1.98 DeBenedetti Park, G -Basin, Fut. Well 05823024 2350 S LOWER SAC RD 45.96 DeBenedetti Park, G -Basin, Fut. Well 05851061 1811 LEXINGTON DR 2.66 Neighborhood Park (Century Meadows) 06010006 1426 W CENTURY BL 16.63 Beckman Park, Fire Sta. 3, A-2 Basin, Well 16 06012307 2238 W NEWBURY Cl 0.04 Pedestrian Walkway 06013049 2184 NEWBURY Cl 3.69 Century Park 06021011 1105 W BRADFORD Cl 0.05 Pedestrian Walkway 06022025 1012 W WIMBLEDON DR 0.05 Pedestrian Walkway 4/12/2006 Page 2 of 3 CityParcels.xls City Owned Parcels APN Num. Dir Street Str. Acres Actual City Use 06024002 601 E HARNEY LN 0.07 Well 19 06202041 1420 S HUTCHINS ST 0.01 Well 12 06206001 1408 S STOCKTON ST 0.09 Well 06215031 334 W LAMBERT CT 0.01 Landscape Strip 06215032 335 W LAMBERT CT 0.01 Landscape Strip 06222016 200 W CENTURY BL 0.11 Well 18 06228002 2101 S STOCKTON ST 21.00 Salas Park, D -Basin 06229019 2001 S CHEROKEE LN 0.29 Well 22 06229036 275 CULBERTSON DR 1.13 Neighborhood Park 06241027 2459 MAGGIO CI 0.09 Well 23 06264034 2449 SAN MARTINO WY 0.76 Harney/99 widening RM 119 Parcels 1,422 Acres 4/12/2006 Page 3 of 3 CityParcels.xls Under Utilized City Parcels M:\OPEN\EXHIBITS\06X012.dwg, Layoud, 4/12/2006 8:26:59 AM, jpizzo