HomeMy WebLinkAboutMinutes - February 7, 2007LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, FEBRUARY 7, 2007
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of February 7, 2007, was called to order by Mayor
Johnson at 5:15 p.m.
Present: Council Members — Hansen, Hitchcock, Katzakian, Mounce, and Mayor Johnson
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
C-2 ANNOUNCEMENT OF CLOSED SESSION
a) Conference with Blair King, City Manager, and Jim Krueger, Deputy City Manager (Acting
Labor Negotiators), regarding Lodi City Mid -Management Association, Maintenance and
Operators, and General Services groups pursuant to Government Code §54957.6
b) Actual Litigation: Government Code §54956.9(a); One Case; Hartford Accident and
Indemnity Company, et al. v. City of Lodi, et al., Superior Court, County of San Francisco,
Case No. 323658
C) 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) Review of Council Appointees — City Manager, City Attorney, and City Clerk — pursuant to
Government Code §54957
e) Actual Litigation: Government Code §54956.9(a); One Case; Catherine Conrado v. City of
Lodi. Bozant Katzakian, et al. and related cross -action. Bozant Katzakian v. City of Lodi.
A.M. Stephens Construction, et al., San Joaquin County Superior Court Case
No. CV027055
f) Prospective Acquisition of Real Property Located at 200 North Beckman Road, Lodi, CA
(APN 049-050-31), for Office, Public Safety Purposes; the Negotiating Parties are the
Mosquito Abatement District and City of Lodi; Government Code §54956.8
g) Prospective Acquisition of Real Property Located at 212 West Pine Street, Lodi, CA
(APN 043-032-03), for Office Purposes; the Negotiating Parties are the Beckman Capitol
Corporation and City of Lodi; Government Code §54956.8
C-3 ADJOURN TO CLOSED SESSION
At 5:15 p.m., Mayor Johnson adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 7:00 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:09 p.m., Mayor Johnson reconvened the City Council meeting, and the Mayor and City
Attorney Schwabauer disclosed the following actions.
Items C-2 (a), C-2 (d), C-2 (f), and C-2 (g) were discussion only; no action was taken.
In regard to Items C-2 (b) and G2 (c), the City Council approved the recommended budget of $1.861
million.
In regard to Item G2 (e), the City Council approved the following settlement amounts: $22,500 for
Bozant Katzakian; $22,500 for A.M. Stephens Construction Company; and $10,000 for the City of
Lodi.
Continued February 7, 2007
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of February 7, 2007, was called to order by Mayor Johnson at
7:09 p.m.
Present: Council Members — Hansen, Hitchcock, Katzakian, Mounce, and Mayor Johnson
Absent: Council Members — None
Also Present: City Manager King, City Attorney Schwabauer, and City Clerk Johl
B. INVOCATION
The invocation was given by Barbara Taylor representing the Lodi Police Chaplains.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Johnson.
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 Proclamations — None
D-3 Presentations — None
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Council Member Hitchcock, Mounce second, unanimously approved the following items hereinafter
set forth except those otherwise noted:
E-1 Claims were approved in the amount of $3,820,687.64.
E-2 The minutes of January 16, 2007 (Shirtsleeve Session), January 17, 2007 (Regular
Meeting), January 23, 2007 (Shirtsleeve Session), January 23, 2007 (Special Meeting), and
January 30, 2007 (Shirtsleeve Session) were approved as written.
E-3 Adopted Resolution No. 2007-14 authorizing the City Manager to purchase 384 solid-state
meters with Interval Data Module R300 from Itron, Inc., of Spokane, Washington, in the
amount not to exceed $33,000.
E-4 Adopted Resolution No. 2007-15 authorizing the City Manager to execute Change Order for
the Bus Shelter and Amenities Project for ten additional bus shelters and benches with LNI
Custom Manufacturing in the amount of $60,000.
E-5 Accepted improvements under "Municipal Service Center Additional Compressed Natural
Gas Installation Project' contract.
E-6 Adopted Resolution No. 2007-16 authorizing the City Manager to execute a contract for
professional services to Municipal Compliance Consultants, of Woodland, for code
enforcement services.
E-7 "Adopt Resolution Authorizing the City Manager b Execute a Contract for Professional
Services to Pacific Municipal Consultants for Community Development Block Grant
Program Administration Services" was removed from the Consent Calendar and
discussed and acted upon following approval of the Consent Calendar.
2
Continued February 7, 2007
E-8 Authorized the City Attorney to issue "comfort letter" to Rivergate Partners, L.P. in
connection with the potential sale of the former Cottage Bakery restaurant bcated at
203 South School Street.
E-9 Adopted Resolution No. 2007-17 amending the Fire Mid -Management Statement of
Benefits.
E-10 Appointed Janet Hamilton, Management Analyst, as alternate for California Transit
Insurance Pool.
E-11 "Authorize Hourly Billing Rate Increases for Legal Services Provided under Agreement with
Folger, Levin & Kahn, LLP, to be Effective January 1, 2007" was removed from the
Consent Calendar and discussed and acted upon following approval of the Consent
Calendar.
E-12 Adopted Resolution No. 2007-18 increasing the assessment rates by 20% for the
Downtown Lodi Business Partnership.
E-13 Adopted Resolution No. 2007-19 revising the current code enforcement abatement fee
schedule.
E-14 "Appointment of Two Firms (Lamont Services, Inc. and Fieldman Rolapp and Co.) to Provide
Various Financial Advisory Services Palated to the Issuance of Debt and Other Financial
Activities for the City of Lodi" was removed from the Consent Calendar and discussed
and acted upon following approval of the Consent Calendar.
E-15 "Repeal and Reenact Resolution Authorizing the City Manager to Execute a Termination of
the 2003 Swap Agreements at the Time Market Conditions are Deemed Favorable at a Cost
Not to Exceed $150,000" was removed from the Consent Calendar and discussed and
acted upon following approval of the Consent Calendar.
E-16 Set public hearing for February 21, 2007, for 2006-07 Federal Program of Transit Projects
Lodi Urbanized Area.
ACTION ON ITEMS REMOVED FROM CONSENT CALENDAR
E-7 "Adopt Resolution Authorizing the City Manager to Execute a Contract for Professional
Services to Pacific Municipal Consultants for Community Development Block Grant
Program Administration Services"
Council Member Hansen pulled this item for further discussion.
In response to Council Member Hansen, Community Development Director Hatch stated
the justification of the $90 per hour amount is based on the proposed consultant's expertise
in Community Development Block Grant (CDBG) program administration and the part-time
basis on which the services are to be provided. He stated there are relatively few
consultants that specialize in this field and even fewer who work on a flexible schedule. Mr.
Hatch stated the department fell behind with existing staff and workload, the City is under
Federal mandates, and this is the only option unless a bigger net of location can be cast.
MOTION:
Council Member Hansen made a motion, Mounce second, to adopt Resolution
No. 2007-20 authorizing the City Manager to execute a contract for professional services to
Pacific Municipal Consultants for CDBG Program administration services.
3
Continued February 7, 2007
DISCUSSION:
Council Member Hitchcock stated she would not support the motion based on her concerns
that the services were provided in-house and a need to review the entire budget when filling
positions.
In response to Mayor Johnson, Mr. Hatch stated a CDBG program administrator can be
home grown over the course of time after a full recruitment, but the biggest challenge
seems to be that a full-time person is not needed.
Council Member Hansen stated that due to previous difficulties with administering the
program, he will continue to support the motion.
In response to Council Member Hitchcock, Mr. Hatch stated Mr. Wood was working on the
CDBG program and vvll continue to supervise the consultant. Mr. Hatch stated Mr. Wood
continues to have a heavy workload and expertise in the area is needed.
In response to Mayor Johnson, Mr. Hatch stated the CDBG program administration costs,
including the consultant fees, are covered by CDBG funds.
Mayor Pro Tempore Mounce thanked staff for bringing the matter forward quickly in light of
the auditor's concerns regarding the same.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hansen, Katzakian, Mounce, and Mayor Johnson
Noes: Council Members — Hitchcock
Absent: Council Members — None
E-11 "Authorize Hourly Billing Rate Increases for Legal Services Provided under Agreement with
Folger, Levin & Kahn, LLP, to be Effective January 1, 2007"
Council Member Hitchcock pulled this item for further discussion.
City Attorney Schwabauer confirmed the fees for Folger, Levin & Kahn have been stagnant
for two years. Mr. Schwabauer discussed the two billing and payment options that are
available to the City when invoices are received. He also reviewed the newly proposed rates
and stated the proposed increases are reasonable according to industry standards.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
authorized hourly billing rate hcreases for legal services p'ovided ander agreement with
Folger, Levin & Kahn, LLP, to be effective January 1, 2007.
E-14 "Appointment of Two Firms (Lamont Services, Inc. and Fieldman Rolapp and Co.) to Provide
Various Financial Advisory Services Related to the Issuance of Debt and Other Financial
Activities for the City of Lodi"
Council Member Hansen pulled this item for further discussion.
In response to Council Member Hansen, Deputy City Manager Krueger stated two different
firms are proposed because they each have different areas of expertise and he does not
anticipate any issue regarding selecting the two firms. He stated Lamont Services has
more of a national presence, while Fieldman Rolapp and Company is strong statewide.
Council Member Hitchcock requested a presentation on the item.
0
Continued February 7, 2007
Deputy City Manager Krueger made a presentation regarding the proposed appointment of
two firms in connection with financial services for the issuance of debt and other financial
activities for the City. Topics of discussion included the selection process, the need to
engage financial advisory services, review of financial services agreements, firm
qualifications and references, specialization of each firm, and the future process regarding
the same.
In response to Council Member Hitchcock, Mr. Krueger stated any costs over $20,000 will
come back to the Council for approval. Mr. Krueger stated bond proceeds are typically used
to service some payments.
Discussion ensued between Council Member Hitchcock, Deputy City Manager Krueger,
and City Manager King regarding in-house bond services, the need for specialists to
perform bond services, market information accessibility, long-term arrangements, role of
financial advisors, investment bankers and underwriters, and checks and balances
regarding the same.
In response to Council Member Hansen, Mr. Krueger stated he does not anticipate a
negative affect down the road from reviewing firms providing financial services every year or
two.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Hitchcock second, unanimously
appointed two firms (Lamont Services, Inc. and Fieldman Rolapp and Co.) to provide various
financial advisory services related to the issuance of debt and other financial activities for
the City of Lodi.
E-15 "Repeal and Reenact Resolution Authorizing the City Manager to Execute a Termination of
the 2003 Swap Agreements at the Time Market Conditions are Deemed Favorable at a Cost
Not to Exceed $150,000"
Council Member Hitchcock pulled this item for further discussion and a presentation.
City Manager King provided a brief presentation regarding the potential termination of the
Swap Agreements when market conditions are favorable. Topics of discussion included the
original creation of the agreement, self -balancing index bond issues at variable rates, rating
downgrades, benefits versus risks, financial advisor opinions, market conditions, and
Citicorp's potential to make money at the beginning and end of the deal.
In response to Council Member Hitchcock, Mr. King stated the only risk is being
downgraded in ratings. He stated the market value will dictate the exact amount owed,
which could be anywhere from $100,000 to over $1 million. Mr. Krueger stated Svap
Agreements a'e intertwined with long-term and short-term interest rates, causing the net
cost of the agreement to the City to go up over time, and interest rate fluctuation may
cause additional risk.
In response to Council Member Hansen, Mr. Krueger stated this will be one more plus in
terms of bond agencies to show the City's long-term financial strength.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Hansen second, unanimously
adopted Resolution No. 2007-21 repealing Resolution No. 2006-219 and authorizing the City
Manager to execute a termination of the 2003 Swap Agreements at the time market
conditions are deemed favorable at a cost not to exceed $150,000.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None
Continued February 7, 2007
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
00 Mayor Pro Tempore Mounce reported on her attendance at an event at the Women's Center
and thanked the family of Phoebe Watts for the Foundation's endowment.
oo Council Member Hansen reported on various citizen complaints brought to the City Manager's
attention during the course of the week; Northern California Power Agency events including
Roseville's withdrawal from the power pool, the approval of the Phase II agreement, and review
of the budget; and San Joaquin Council of Governments activity including an increase to Lodi's
Dial -A -Ride program for $300,000, requests for 1-5 widening, Highway 99 widening, renewal of
Measure K funds, and meeting with Andrew Chesley regarding Highway 12.
00 Mayor Johnson reported on the request for appointment to the San Joaquin County Rail
Commission and the reasons for the same. He also requested staff bring back the discussion of
possibilities regarding a redevelopment agency for the future.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo City Manager King stated the citizen requests referenced by Council Member Hansen were
forwarded to the various departments for information, response, and/or handling.
RECESS
At 8:17 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened at
8:27 p.m.
PUBLIC HEARINGS
1-1 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office of the City Clerk, Mayor Johnson called for the public hearing to consider
adopting a resolution to amend the Electric Utility Department Rules and Regulations No.
15 to assess a Transmission and Substation System Charge on new developments outside
existing City limits as of August 1, 2006.
City Manager King briefly introduced the subject matter.
Electric Utility Director Morrow provided an overview of the proposed transmission and
substation system charge assessment. Topics of discussion included substation fee
survey, background information, substations, electric systems, staff recommendation,
customer impact, and calculations.
In response to Council Member Hansen, Mr. Morrow stated that, while without growth there
would not be a need for a new substation to come on line in approximately 2011, there has
been a concern regarding the reliability cf the current system for some time. Discussion
ensued between Mr. Morrow and Council Member Hansen regarding alignment with the new
Lodi project, amount of growth by the projected date, project building when scale amount is
reached, and current funds helping to offset the project at the time it is built.
Discussion ensued between Council Member Hitchcock and Mr. Morrow regarding growth
benefits and burdens on current ratepayers, fee collection and account maintenance, bond
financing, sources of capital, Producer Price Index applicability, and periodical review.
In response to Mayor Pro Tempore Mounce, City Manager King stated the current
development projects are covered because the development agreements contain provisions
regarding agreement to pay related costs if the City Council approves a resolution regarding
the same.
Mayor Pro Tempore Mounce stated she encouraged the City Council to consider restrictive
funds to ensure funds are specifically utilized for this purpose.
3
Continued February 7, 2007
In response to Mayor Johnson, Mr. Morrow stated the proposed power lines to the west are
contemplated in this substation.
Hearing Opened to the Public
oo Alexandra Barns spoke of her concerns regarding costs associated with the new
substation, slow growth objective, and energy procurement.
00 Ryan Riley spoke of his concerns regarding affects on agriculture in connection with
the new substation.
oo Ann Cerney spoke of her concerns regarding costs and formula assessment on large
developers.
Public Portion of Hearing Closed
In response to Council Member Hitchcock, Mr. King stated the question of Certificates of
Participation paying for transmissions to the west is being debated now. He stated one
thought is to keep revenues available, and the other is to pay down the loan to reduce debt
service. Council Member Hitchcock stated the funds should be used for these two purposes
only.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Hansen second, unanimously
adopted Resolution No. 2007-22 amending the Electric Utility Department Rules and
Regulations No. 15 to aBsess a Transmission and Substation System Charge on new
developments outside existing City limits as of August 1, 2006.
1-2 Notice thereof having been published according to law, an affidavit of which publication is on
file in the office of the City Clerk, Mayor Johnson called for the public hearing to consider
adopting a resolution amending the San Joaquin County Multi -Species Habitat Conservation
and Open Space Plan development fees.
City Manager King briefly introduced the subject matter.
Steve Dial, Deputy Executive Director/Chief Financial Officer for San Joaquin Council of
Governments, provided an overview of the proposed fee and distributed related
documentation, including a copy of the presentation given to the Board. Topics of
discussion included historical background of fee, fee connection with index, 2001
implementation, mitigation requirements, financial sustainability, committee efforts and
process, and recommendations.
Discussion ensued between Council Member Hitchcock and Mr. Dial regarding increasing
the proposed fee, the categories associated with development land, 86% of developed land
falling within the under $13,000 category, purpose to mitigate development, potential of
100,000 acres of land in San Joaquin County, land prices, previous purchases, species
protection, and the reasonableness of the proposed fee.
Hearing Opened to the Public
oo Ann Carney spoke of her concerns regarding the ability to purchase only remote land
with the proposed fee.
Public Portion of Hearing Closed
MOTION:
Council Member Hansen made a motion, Mounce second, to adopt Resolution
No. 2007-23 anending the San Joaquin County Multi -Species Habitat Conservation and
Open Space Plan development fees.
7
Continued February 7, 2007
J.
(:4
DISCUSSION:
Council Member Hansen stated much work and analyzing was done to arrive at the $13,000
amount and stated he would support the same.
Council Member Hitchcock stated she would reluctantly support the motion because she
anticipates significant increases at a later date.
VOTE:
The above motion carried by a unanimous vote.
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 Hansen, Mounce second,
unanimously made the following appointments:
Greater Lodi Area Youth Commission
(Adult Advisors)
Roger Khan
Isaac Morales
Library Board of Trustees
Robert Emmer
Lodi Senior Citizens Commission
Kathryn Siddle
Term to expire May 31, 2010
Term to expire May 31, 2008
Term to expire June 30, 2010
Term to expire December 31, 2010
San Joaquin Valley Unified Air Pollution Control District Citizens Advisory
Committee
Wade Broughton, Primary Member Term to expire January 31, 2010
Randall Blank, Alternate Member Term to expire January 31, 2010
b) The City Council, on motion of Mayor Johnson, Mounce second, unanimously
directed the City Clerk to post for the following expiring terms:
Lodi Improvement Committee
Brad Eilert Term to expire March 1, 2007
Joseph Spinelli Term to expire March 1, 2007
Sunil Yadav Term to expire March 1, 2007
J-3 Miscellaneous — None
REGULAR CALENDAR
K-1 "Mid -Year Budget Review and Adopt Resolution Revising 2006-07 Budget Appropriations"
Deputy City Manager Krueger provided an overview of the mid -year budget review, the three
budget adjustments regarding the general fund, and the one budget adjustment regarding
the Community Development fund.
Economic Development Coordinator
Council Member Hansen stated he is in favor of the Economic Development Coordinator
position because it was previously eliminated out of necessity and with reluctance, there
are residual negative impacts on the City and other departments, most cities in the County
have a similar position, the job description needs are important to the City for a better
financial position, and there are benefits to starting the recruitment now.
Continued February 7, 2007
Council Member Hitchcock stated she is not in favor of the position because of concerns
regarding personnel and program costs, position relationship to the Lodi wine and tourist
industry, history of the position in the City, the need for the position, connection with the
General Plan, and comparisons with other positions and needs of the City.
Mayor Pro Tempore Mounce stated the %n Joaquin Partnership, Lodi Conference and
Visitors Center, and Chamber of Commerce do a good job, Lodi does not have the same
land opportunities as other communities, and comparisons with other vacant positions in
the City is needed.
Council Member Hansen stated the position benefits the City and he recalled previously the
position brought businesses to Lodi that would not have come otherwise. He stated the
Council previously expressed concerns regarding the Partnership and the position is
needed for the long-term financial well being of the City.
Mayor Johnson stated he has mixed feelings regarding the position because, while he is
concerned about the timing of the position, there is opportunity to work on in -fill projects,
retain businesses, General Plan development, and commercial property opportunities.
Council Member Hitchcock stated, if the Council is going to proceed, established goals and
contract personnel should be considered.
Council Member Katzakian stated the position is important because the City gets a sales
person for the new retail areas, including Reynolds Ranch.
City Manager King stated the position is important to the City and requires the Council's
support. He stated he did not anticipate resistance to the position and would like to
withdraw the request at this time. Discussion ensued between Council Member Hansen,
Council Member Hitchcock, and Mayor Johnson regarding the same. City Manager King
withdrew the request to fill the position for Economic Development Coordinator.
Low -Income Discounts
Deputy City Manager Krueger provided an overview of the low-income discounts and
Measure J. Mr. Krueger stated the options for low-income discount continuance are funding
from the general fund, funding in some other way, or reducing the amount of the discount.
Mayor Pro Tempore Mounce stated the voters spoke loudly to discontinue the program and
the Council must uphold that opinion.
Council Member Hansen stated he agreed and the voters' intent would not be supported if
the discount was funded from the general fund. He stated there must be proper education if
the matter is put on the ballot again.
Council Member Hitchcock stated she concurred with Council Member Hansen and Mayor
Pro Tempore Mounce.
Discussion ensued between Council Member Hitchcock, City Manager King, and City
Attorney Schwabauer regarding implementing a program similar to the one in place prior to
Proposition 218 or renewing the same. Public Works Director Prima stated the prior
program was restrictive and about 200 to 300 discounts were given. City Attorney
Schwabauer stated the old program cannot be continued because it was replaced by the
new one and is subject to Proposition 218. Mr. Schwabauer also provided an analysis of
Proposition 218 and its application to water and wastewater funds in relation to legitimate
costs of service and stated the courts do not generally favor cities in these matters.
Mayor Pro Tempore Mounce suggested a share program regarding electric utilities as an
alternative.
7
Continued February 7, 2007
MOTION #1 / VOTE:
The City Council, on motion of Mayor Johnson, Hansen second, unanimously voted to not
approve the budget increase in connection with the low-income discounts.
Art Grant
City Manager King provided an overview of the administration of the art grant program and
timing of grant award. Mr. King recommended the proposed budget increase to align the
program administration cycle with when the grants are awarded.
MOTION #2 / VOTE:
The City Council, on motion of Council Member Hitchcock, Hansen second, voted to
approve the arts grant as submitted. The motion carried by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Katzakian, and Mayor Johnson
Noes: Council Members — Mounce
Absent: Council Members — None
Permit Technician Position
Deputy City Manager Krueger provided an overview of the proposed permit technician
position for the Community Development Department as outlined in the staff report. Specific
topics of discussion included filling the position at temporary and full-time status, personnel
costs, and training.
MOTION #3:
Council Member Hansen made a motion, Johnson second, to approve the proposed permit
technician position in the Community Development Department.
DISCUSSION:
Council Member Hitchcock stated she would not be supporting the position because she
would like to see the entire picture for vacant positions as a part of the budget.
VOTE:
The above motion carried by the following vote:
Ayes: Council Members — Hansen, Katzakian, and Mayor Johnson
Noes: Council Members — Hitchcock and Mounce
Absent: Council Members — None
Reallocation of Transfers
Deputy City Manager Krueger provided an overview of the proposed reallocation of transfers
as listed in the staff report.
MOTION #4 / VOTE:
The City Council, on motion of Council Member Hitchcock, Hansen second, unanimously
approved the reallocation of transfers as submitted.
MOTION #5 / VOTE:
The City Council, on motion of Mayor Johnson, Katzakian second, adopted Resolution No.
2007-24 revising tie adopted 2006-07 Operating and Capital Improvement Budget for the
fiscal year beginning July 1, 2006 and ending June 30, 2007, incorporating the four actions
taken above. The motion carried by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Katzakian, and Mayor Johnson
Noes: Council Members — Mounce
Absent: Council Members — None
10
Continued February 7, 2007
K-2 "Adopt Resolution Reducing the Electric Utility Fund Payment In -Lieu of Taxes Amount as
Previously Established at 12% to an Amount Established by Formula"
City Manager King provided a brief overview of the subject matter.
Deputy City Manager Krueger provided a presentation regarding the proposed reduction of
the electric utility fund payment in -lieu of taxes amount. Specific topics of discussion
included the history of the pilot program, general fund absorption, reduction of revenues with
favorable results, and staffs recommendation to formalize the same in a policy.
In response to Council Member Hansen, Mr. Krueger stated, after the policy is enacted, the
Council can reduce the flat amount if things improve or make other adjustments at a later
date as necessary.
In response to Council Member Hitchcock, Electric Utility Director Morrow and City
Manager King provided an overview of the formula, the changes based on the number of
customers, and percentage increases.
In response to Council Member Hitchcock, Mr. Morrow stated the number next year will be
about 10.3% and drop about 1/10 of a percent per year thereafter, which is within industry
standards. He stated the policy is a positive step to show fiscal stability.
Discussion ensued between Council Member Hitchcock, City Manager King, and
Mr. Morrow regarding market cost analysis and its affect on base amounts.
PUBLIC COMMENTS:
oo Ann Cerney spoke regarding her concern about what the $5 million figure is based on
and its applicability to Proposition 13.
In response to Council Member Hitchcock, Mr. Morrow stated the dollar figure is based on
the difference in previous percentage and growth amounts.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
adopted Resolution No. 2007-25 reducing the electric utility fund payment in -lieu of taxes
amount as previously established at 12% to an amount established by formula.
K-3 "Select Two Council Members to Participate in Community Center Director Interviews"
MOTION / VOTE:
No action was taken on this matter; Council concurred in selecting Mayor Johnson and
Council Member Hansen to participate in the Community Center Director interviews.
K-4 "Direct Staff to Seek Real Estate Appraisals for Certain Parcels as Listed in Project
Opportunity — A Review of Cit.�40wned Property, and Direct Staff to Secure Bids for Sale of
9.09 Acres at 500 South Guild Avenue and Negotiate the Sale of Conservation Easements
for Undetermined White Slough Property"
City Manager King provided an overview of the subject matter of surplus property. Specific
topics of discussion included the 17% of City -owned property, tax rolls, review of real estate
assets, the lack of existing uses on current properties for consideration, the process for
selling property at market value after appraisals are completed, and the recommendation for
the proposed three properties.
11
Continued February 7, 2007
In response to Council Member Hansen, Mr. King stated the 1,400 acres does include
White Slough.
Fire Chief Pretz, as the lead on Project Opportunity, provided an overview of the properties
located at 1119 to 1120 Awani Drive, 217 East Lockeford Street, and the Century Boulevard
right of way.
City Manager King stated the 500 South Guild Avenue appraisal came in at $2.5 million. He
stated staff is requesting permission to market and provided the timeline for sale and
escrow. Mr. King stated there are a variety of options for the proceeds including the electric
utility reserve build up and the conservation easement at White Slough.
Council Member Hitchcock stated the cost per acre seems less than it should be and the
Guild Avenue property should not be sold.
In response to Council Member Hitchcock, Chief Pretz stated the Awani Drive property has
no relation to Roget Park.
Chief Pretz and Mr. King stated they will be working with the City Attorney on the process.
They stated the goal is to get favorable appraisals and sell the properties based on the
highest bids. Chief Pretz stated they do not have specific offers at this time, just interest in
purchasing.
In response to Council Member Hansen, Public Works Director Prima stated future
improvements do not include the Century Boulevard extension.
Discussion ensued between Council Member Hansen, Mayor Johnson, and Council
Member Hitchcock regarding the appraisal by Swanberg, inclusion of the Maple Street
property, underpass concerns, and other properties that are on the list. Council Member
Hitchcock stated she would like to see the other properties on the list.
PUBLIC COMMENTS:
oo Ann Cerney spoke of her concerns regarding the conservation easement and California
Environmental Quality Act applicability. She also requested the matter be discussed
after additional information regarding the same is provided to the public.
Mayor Pro Tempore Mounce stated she could support the first two, but she suggested
bringing back the White Slough property.
In response to Council Member Hansen, Mr. Prima stated the existing use of the White
Slough property in connection with the conservation easement will continue in perpetuity.
MOTION #1 / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
directed staff to seek real estate appraisals for 1119 to 1120 Awani Drive (3.65 acres).
MOTION #2 / VOTE:
The City Council, on motion of Mayor Johnson, Hansen second, unanimously directed staff
to seek real estate appraisals for 217 East Lockeford Street (1.36 acres).
MOTION #3 / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
directed staff to seek real estate appraisals for Century Boulevard right-of-way/west of
Stockton Street (3.06 acres).
12
Continued February 7, 2007
In response to Council Member Hansen, Chief Pretz stated the subject properties are too
close to Station 1 for the new station site.
In response to Mayor Pro Tempore Mounce, Mr. King stated other property is being
reviewed for an animal shelter.
Mayor Johnson suggested placing the Maple Street property on the list for appraisal.
MOTION #4 / VOTE:
The City Council, on motion of Council Member Hansen, Johnson second, directed staff to
secure bids for sale of 9.09 acres at 500 South Guild Avenue. The motion carried by the
following vote:
Ayes: Council Members — Hansen, Katzakian, Mounce, and Mayor Johnson
Noes: Council Members — Hitchcock
Absent: Council Members — None
Further, the matter pertaining to the sale of conservation easements for undetermined
White Slough property (100 to 150 acres) was tabled.
VOTE TO CONTINUE WITH THE REMAINDER OF THE MEETING
The City Council, on motion of Council Member Hansen, Johnson second, voted to continue with
the remainder of the meeting following the 11:00 p.m. hour. The motion carried by the following
vote:
Ayes: Council Members — Hansen, Katzakian, Mounce, and Mayor Johnson
Noes: Council Members — Hitchcock
Absent: Council Members — None
RECESS
At 11:11 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened at
11:16 p.m.
K. REGULAR CALENDAR (Continued)
K-5 "Designate a Council Member Liaison for 2007 City Services Survey via the National Citizen
Survey Program"
In response to Council Member Hansen, City Manager King stated the proposed survey
cost is $8,400 and provides the City with an opportunity to compare scientific results with
other jurisdictions and measure results in future years in order to truly gauge the
community opinion regarding the survey questions.
Council Member Hitchcock and Mayor Pro Tempore Mounce stated a scientific survey is
important for accurate results.
In response to Council Member Hansen, Mr. King stated the survey provides a comparison
tool for future surveys at an additional cost if the City should so desire.
MOTION / VOTE:
The City Council, on motion of Mayor Johnson, Mounce second, unanimously designated
Council Member Hitchcock to work with the City Manager to review and make
recommendations with regard to the 2007 City services survey conducted via the National
Citizen Survey Program.
13
Continued February 7, 2007
K-6
K-7
"Solicit Nominations from the City Council for Persons to Serve on the Loan Advisory
Committee for the City of Lodi Revolving Loan Fund Program"
Community Improvement Manager Wood provided an overview of the proposed Loan
Advisory Committee and program. Mr. Wood stated staff is requesting the City Council
forward the names of 10 to 12 candidates, consisting of community members from the
banking and business industries, within the next 30 days through the City Clerk's Office.
In response to Council Member Hitchcock, Mr. Wood stated the Committee will be looking
at character issues, rather than financial ability, which is primarily handled through the
underwriting process that takes place before the applications are forwarded to the
Committee for review.
MOTION / VOTE:
No action was taken on this matter; Council will submit recommendations within the next
30 days.
"Approve Expenses Incurred by Outside Counsel/Consultants Relative to the Environmental
Abatement Program Litigation and Various Other Cases being Handled by Outside Counsel
($388,439.83)"
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Johnson second, unanimously
approved the expenses incurred by outside counsel/consultants relative to the
Environmental Abatement Program litigation and various other cases being hMndled by
outside counsel in the amount of $388,439.83, as detailed below:
Folger Levin & Kahn - Invoices Distribution
Matter
Invoice
Water Acct.
No.
No.
Date Description
Amount
8001
99378
11/30/2006
General Advice -Environmental
$ 487.50
8002
99377
11/30/2006
People v M&P Investments
$ 67,888.86
-975.00
8003
99380
11/30/2006
Hartford Insurance Coverage
$259,668.61
Litigation
-10,000.00
8008
99381
11/30/2006
City of Lodi v. Envision Law Group
$ 12,229.70
13969
Sept -Oct 2006
PES Environmental -Keith O'Brien
$ 4,882.50
14113
Oct -Dec 2006
PES Environmental -Keith O'Brien
$ 21,946.06
11/30/2006
Mason Investigative Group
$ 1,484.50
6542
11/30/2006
West Environmental/Peter Krasnoff
$ 19.847.50
Total
$377,460.23
Kronick Moskovitz Tiedemann & Girard - Invoices Distribution
Matter
Invoice
Date
Description
100351.7323
No.
No.
11233.001
229969
12/25/06
General advice
$ 115.60
11233.023
229969
12/25/06
City of Lodi v. Stockton
$ 12.49
11233.026
229969
12/25/06
Lodi First v. City of Lodi
$ 703.00
11233.027
229969
12/25/06
Citizens for Open Government
$ 560.20
v. City of Lodi
11233.029
229969
12/25/06
AT&T v. City of Lodi
$ 1.474.31
14
Total $ 2,865.60
Continued February 7, 2007
JAMS Mediation Services Water Acct.
0001231962-110 Nov/Dec06 People v. M&P Investments $ 3,300.00
0001241864-110 12/6/2007 People v. M&P Investments $ 4.814.00
Total $ 8,114.00
L. ORDINANCES
L-1 Following reading of the title of Ordinance No. 1792 entitled, "An Ordinance of the Lodi City
Council Repealing and Reenacting Chapter 5.32 of the Lodi Municipal Code Pertaining to
Massage Establishments," having been introduced at a regular meeting of the Lodi City
Council held January 3, 2007, the City Council, on motion of Mayor Pro Tempore Mounce,
Johnson second, waived reading of the ordinance in full and adopted and ordered it to print
by the following vote:
Ayes: Council Members — Hansen, Hitchcock, Katzakian, Mounce, and
Mayor Johnson
Noes: Council Members — None
Absent: Council Members — None
Abstain: Council Members — None
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
11:32 p.m., in memory of S. Capps Hoshour, member of First United Methodist Church and strong
supporter of the Lodi greenbelt, who passed away on January 15, 2007.
ATTEST:
Randi Johl
City Clerk
15