HomeMy WebLinkAboutMinutes - March 7, 2007LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MARCH 7, 2007
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of March 7, 2007, was called to order by Mayor Johnson
at 5:30 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) Review of Council Appointees — City Manager and City Attorney — pursuant to Government
Code §54957
b) Conference with Blair King, City Manager, and Jim Krueger, Deputy City Manager (Acting
Labor Negotiators), regarding Maintenance and Operators and General Services Groups
pursuant to Government Code §54957.6
C) 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
d) Actual Litigation: Government Code §54956.9(a); One Case; Daniel Sanchez Garcia v. City
of Lodi, et al., San Joaquin County Superior Court, Case No. CV027800
C-3 ADJOURN TO CLOSED SESSION
At 5:30 p.m., Mayor Johnson adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 6:55 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:01 p.m., Mayor Johnson reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions.
In regard to Item C-2 (a), there was no reportable action.
In regard to Item C-2 (b), this item was not discussed.
In regard to Item C-2 (c), there was direction only.
In regard to Item C-2 (d), settlement authority was given.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of March 7, 2007, was called to order by Mayor Johnson at
7:01 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 Pastor Ellen Tanouye, St. Paul Lutheran Church.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Johnson.
Continued March 7, 2007
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 (a) Police Chief Adams presented the Silver Star award to Officer Ernie Nies for demonstrating
outstanding bravery above and beyond what is expected in the normal course of duty.
D-2 (a) Mayor Johnson presented a proclamation to George Bradley, Street & Drain Manager,
celebrating "Arbor Day (Tree City USA)" in the City of Lodi.
D-3 (a) Mayor Johnson presented a Certificate of Recognition to Boy Scout Andrew McKelvey for
obtaining the rank of Eagle Scout.
D-3 (b) City Clerk Johl provided a final report to the City Council on the City of Lodi Centennial
celebration and related funds, stating that donations and sale of souvenirs amounted to
$12,800, which was used toward costs associated with the many activities and events, as
well as for the start-up costs for souvenir sales. Carol Meehleis, representing the Centennial
Task Force, announced that, with Task Force concurrence, the remaining funds of $5,600
would be donated to the City of Lodi Parks and Recreation Department for various park
amenities and improvements to Lodi Lake Park and other locations in honor of Lodi's
Centennial celebration.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Mayor Pro Tempore Mounce, Hansen second, unanimously approved the following items hereinafter
set forth except those otherwise noted:
E-1 Claims were approved in the amount of $2,704,758.76.
E-2 The minutes of February 20, 2007 (Shirtsleeve Session), February 21, 2007 (Regular
Meeting), and February 27, 2007 (Shirtsleeve Session) were approved as written.
E-3 Received the report of sale of surplus equipment in the amount of $1,190.
E-4 Received the quarterly report of purchases between $5,000 and $20,000.
E-5 Adopted Resolution No. 2007-35 approving the addendum to the Improvement Agreement
for Public Improvements at 1125 East Pine Street and authorizing the City Manager and
City Clerk to execute the agreement on behalf of the City.
E-6 Adopted Resolution No. 2007-36 approving the equipment lease agreement and authorizing
the City Manager to execute agreement with Ray Morgan Company, of Stockton, for large
format copier, in the amount of $23,850, for the Public Works and Community Development
Departments.
E-7 "Adopt Resolution Ratifying Employment Agreement Entered into between City Manager
Blair King and Community Center Director" was removed from the Consent Calendar and
discussed and acted upon following approval of the Consent Calendar.
E-8 Adopted Resolution No. 2007-37 approving the Citywide Records Management Program
and Policy, which adopts the Secretary of State's guidelines.
E-9 "Adopt Resolution Authorizing the City Manager to 1) Accept a Grant Award for the 2005
Workforce Housing (WFH) Reward Program from the California Department of Housing and
Community Development in the Amount of $23,000 and 2) Submit New Grant Application
for the 2006 WFH Reward Program" was removed from the Consent Calendar and
discussed and acted upon following approval of the Consent Calendar.
E-10 Set public hearing for April 18, 2007, to consider resolution setting storm drainage permit
compliance inspection fees for wet season construction inspection.
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Continued March 7, 2007
ACTION ON ITEMS REMOVED FROM THE CONSENT CALENDAR
E-7 "Adopt Resolution Ratifying Employment Agreement Entered into between City Manager
Blair King and Community Center Director'
This item was pulled by Mayor Pro Tempore Mounce.
Mayor Pro Tempore Mounce stated she would not be voting in favor of the agreement
because of her concerns regarding the six-month severance pay.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Johnson second, adopted
Resolution No. 2007-38 ratifying the employment agreement entered into between City
Manager Blair King and Community Center Director James Rodems. The motion carried by
the following vote:
Ayes: Council Members — Hansen, Hitchcock, Katzakian, and Mayor Johnson
Noes: Council Members — Mounce
Absent: Council Members — None
E-9 "Adopt Resolution Authorizing the City Manager to 1) Accept a Grant Award for the 2005
Workforce Housing (WFH) Reward Program from the California Department of Housing and
Community Development in the Amount of $23,000 and 2) Submit New Grant Application
for the 2006 WFH Reward Program"
This item was pulled by Mayor Pro Tempore Mounce.
In response to Mayor Pro Tempore Mounce, Community Development Director Hatch
provided a brief presentation regarding the grant award. Specific topics of discussion
included an overview of the State -operated program, function of recognizing cities that
provide affordable housing and attempt to meet housing element goals, award of $23,000 for
previous year, current year authorization, broad utilization of the grant funds, and the
process associated with applying for the grant. Mayor Pro Tempore Mounce commended
staff for applying the funding to the Eastside Mobility Plan.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Hitchcock second,
unanimously adopted Resolution No. 2007-39 authorizing the City Manager to 1) accept a
grant avard for the 2005 Workforce Housing (WFH) Reward Program from the California
Department of Housing and Community Development in the amount of $23,000 and
2) submit new grant application for the 2006 WFH Reward Program.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
00 None
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Hansen reported on his attendance at the San Joaquin Council of
Governments meeting and specifically discussed the Smart Growth program, freeway service
patrol, funding available for Highway 12 improvements, and potential legislation being carried
through Assembly Member Lois Wolk.
oo Mayor Pro Tempore Mounce reported on her attendance at a meeting regarding the Stockton
joint recycle water plant and requested further discussion at a future Shirtsleeve Session
regarding discount alternatives.
oo Council Member Hitchcock suggested discount and rate information, including comparisons, be
provided to the public at a future Council meeting.
oo Mayor Johnson reported on his attendance at the San Joaquin Regional Rail Commission
meeting stating various county representatives and elected officials were present and focused
on commuter rail for the valley.
Continued March 7, 2007
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo City Manager King stated the discount and rate information can be provided as a part of the
quarterly report. He also thanked Interim Community Center Director Steve Baker for his
dedicated service and announced the appointment of the new director, James Rodems.
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
and approve community input and proposals for uses of the City's 2007-08 federal allocation
of Community Development Block Grant and HOME Program funds and the reallocation of
available funds from previous program years.
City Manager King briefly introduced the subject matter.
Community Improvement Manager Joseph Wood provided an overview of the City's 2007-08
Community Development Block Grant (CDBG) and HOME program funds. Specific topics
discussed included anticipated allocations, staff recommendations, and individual fund
allocations for CDBG and HOME programs
In response to Council Member Hansen, City Manager King stated funding of both Grape
Bowl projects was recommended because of the similar purpose of both projects and after
evaluating the eligibility of the other projects.
In response to Council Member Hansen, Mr. Wood stated $10,000 was recommended for
the Boys and Girls Club based on prevailing wage considerations and the ease of managing
the interior door project.
In response to Council Member Hansen, Mr. Wood stated the handicap ramp improvement
for approximately $38,000 is required for occupancy purposes.
In response to Council Member Hitchcock, Mr. Wood stated there is a review process in
which they check with the applicant prior to award to ensure the project can be carried out
in a timely fashion if the original amount requested is reduced.
In response to Council Member Hitchcock, City Manager King stated, per the blue sheet
item, Supervisor Vogel has indicated that there is not a second year of funding available for
the Grape Bowl improvements. Mr. King stated the City should not expend its $250,000
allocation from its own CDBG funds until the matching discretionary funds from the Board of
Supervisors are received.
Hearing Opened to the Public
oo Tracy Williams, LOEL Center Director, spoke in favor of the City's ongoing support of
the Center and requested reconsideration to allow for a full and/or partial allocation for
the Center. In response to Council Member Hansen, Ms. Williams stated the Center
can fundraise even if partial funding is received. Mayor Johnson stated similar property
comparisons indicated the appraisals were not out of line.
00 Norma Sautel, a LOEL Center resident, spoke in favor of the City's ongoing support of
the Center and requested reconsideration to allow for a full and/or partial allocation for
the Center.
oo Theresa Larson, LOEL Center Foundation Board Member, spoke in favor of the City's
ongoing support of the Center and requested reconsideration to allow for a full and/or
partial allocation for the Center. In response to Council Member Hansen, Council
Member Hitchcock, and Mayor Pro Tempore Mounce, Ms. Williams and Ms. Larson
stated that, while the current rent does not cover the payment, any funding will help pay
down the $485,000 outstanding loan balance to F&M Bank so that it can avoid raising
the rent.
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Continued March 7, 2007
00 Phil Pennino spoke in favor of the City's ongoing support of the Salvation Army and
requested reconsideration to allow for a partial allocation of approximately $38,000 for
the handicap ramp improvement project. He also invited the Council and public to its
Annual Dinner.
oo Dan Williams, representing the Salvation Army, spoke in favor of the City's ongoing
support of the Salvation Army and requested reconsideration to allow for a partial
allocation of approximately $38,000 for the handicap ramp improvement project, which
is necessary to complete the permitting process. In response to Council Member
Hansen, Mr. Wood stated the Building Official did note midway through the project that
the existing handicap ramp was insufficient.
00 Paul Rengh, representing the Second Harvest Food Bank, spoke in favor the City's
ongoing support and urged continued advocacy at the County and federal levels.
Council Member Hansen stated he and the Council are advocating for the CDBG
program at the local and federal levels.
Discussion ensued between Council Member Hansen, Council Member Hitchcock, Council
Member Katzakian, amd Ms. Williams regarding the LOEL Center's acquisition of units in
the target area and the financial status of the properties including lease and principal pay
down.
Public Portion of Hearing Closed
In response to Council Member Hitchcock, Mr. Prima stated the handicap retrofitting
projects are a part of the previously approved list of sites in the target area. Mr. Hatch
stated the transition plan identified City -owned areas that do not provide accessibility and
funding was going to be allocated to these projects on an annual basis. He stated they
would be in good shape if they can continue to demonstrate that progress is being made on
those projects, regardless of the exact number of projects addressed.
In response to Council Member Hitchcock, Mr. Hatch stated HOME program funds could
be applied to the LOEL Center so long as the City's grant funds are being leveraged with
matching funds from the Center. Mr. Hatch and Mr. Wood also reviewed the timing and
payment requirements for buy down situations, as now accepted by the federal government
and County.
In response to Mayor Pro Tempore Mounce, Mr. Wood stated the LOEL Center could
receive down payment assistance in the form of a forgivable loan if the requirements are
met.
Discussion ensued between Mr. Wood, Council Member Hansen, and Ms. Larson regarding
the Center's ability to survive and pay off loans from its reserves while awaiting the grant
funds.
In response to Council Member Hitchcock, City Attorney Schwabauer stated the Council
could legally allocate HOME program funds, combined with other CDBG funds, with a
representation from the LOEL Center that it could come up with the matching leverage
funds within the year.
MOTION / VOTE:
The City Council, on motion by Council Member Hansen, Mounce second, unanimously
adopted Resolution No. 2007-40 allocating $263,275 in HOME funds and $100,000 in
CDBG funds to the LOEL Center, with the understanding that the LOEL Center provides the
remainder of the originally requested funds within the current year as leveraging funds, and
$38,654 in CDBG funds to the Salvation Army, thereby reducing the handicap ramp retrofit
allocation to $54,339, and approving the remainder of the CDBG and HOME program
allocations as recommended by staff.
Continued March 7, 2007
RECESS
At 8:44 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened at
8:55 p.m.
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 Hitchcock, Mounce second,
unanimously made the following appointment:
Greater Lodi Area Youth Commission
(Adult Advisor)
Bonnie Cassel, LUSD representative Term to expire May 31, 2008
J-3 Miscellaneous — None
K. REGULAR CALENDAR
K-1 "Adopt Resolution Authorizing the City Manager to Execute a Member Agreement (Second
Phase) with the Northern California Power Agency for Financing the Planning and
Development Activities of the New Lodi Project ($1,928,605)"
City Manager King briefly introduced the subject matter.
Electric Utility Director Morrow provided a PowerPoint presentation (filed) regarding the new
Lodi project. Specific topics of discussion included a general background, new Lodi project
overview, Phase 2, participation levels, energy balance, net energy balance, Lodi power
resources, Phase 2 costs, various considerations, and a summary.
In response to Council Member Hansen, Mr. Morrow stated there will be a need to
purchase some water and amounts and pricing will be available during development.
Mr. Morrow stated early estimates are a few hundred thousand dollars.
In response to Council Member Hansen, Mr. Morrow stated there are limited, if any, options
to a natural gas power plant in California and they will have to work hard to manage gas
prices.
In response to Council Member Hitchcock, Mr. Morrow provided an overview of the
ecological pros and cons associated with the use of coal, hydro, solar, and geothermal
power. Mr. Morrow stated the proposed purchase addresses 100% of the City's base load
needs and the remaining needs are met by other sources. He also stated objection is not
anticipated from neighboring cities because the new plant will meet air quality
requirements.
City Manager King provided an overview of natural gas versus bulk power, stating that, while
the purchase may have some risk associated with it, as would any other purchase, it may
serve as a defense to market fluctuation.
PUBLIC COMMENTS:
oo Ann Cerney spoke in opposition to the proposed project based on her concerns that
she and the public need more time to review the matter.
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Continued March 7, 2007
In response to Mayor Pro Tempore Mounce, Mr. King stated the change from 12% to the
formula accounts for the $1 million reduction in the transfer amount from Electric Utility to
the General Fund.
In response to Mayor Johnson, Mr. Morrow stated an added benefit of the project is that it
would hold rates down.
In response to Ann Cerney, Mr. Morrow stated the current facility is owned by Northern
California Power Agency, is on a 50 -year lease, and the City receives rent accordingly. He
stated both plants would remain and the City would receive additional rent from the new
plant.
Discussion ensued between Council Member Hitchcock and City Manager King regarding
market cost adjustments, adjustment of base amount based on customers, and the
opportunity for additional public input through proceedings by the California Energy
Commission.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Hitchcock second, unanimously
adopted Resolution No. 2007-41 authorizing the City Manager to execute a Member
Agreement (Second Phase) with the Northern California Power Agency for financing the
planning and development activities of the new Lodi Project, in the amount of $1,928,605, to
examine the feasibility of the development of a 255 megawatt natural gas-fired power plant
to be located at Lodi's steam injected turbine site at White Slough.
K-2 "Authorize Contingency Fee Contract with Folger Levin and Kahn, LLP for the Hartford
Litigation" was pulled from the agenda and tabled.
L. ORDINANCES
None
M. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 9:51
p.m., in memory of Adil Shazaad, age 16; Nasir Shoaib, age 15; and Nasherwan Ahmad, age 18,
who tragically died in a car accident on February 27, 2007.
ATTEST:
Randi Johl
City Clerk
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