HomeMy WebLinkAboutMinutes - October 3, 2007LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, OCTOBER 3, 2007
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of October 3, 2007, was called to order by Mayor
Johnson at 6:00 p.m.
Present: Council Members — Hansen, Hitchcock, Katzakian [excluding C -2(a)], 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) 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 a1., United States
District Court, Eastern District of California, Case No. CIV -S-00-2441 FCD JFM
b) Conference with Blair King, City Manager, Jim Krueger, Deputy City Manager, and Bill
Avery (Acting Labor Negotiators), Regarding Lodi Police Officers Association Pursuant to
Government Code §54957.6
C) Conference with Blair King, City Manager, and Jim Krueger, Deputy City Manager (Acting
Labor Negotiators), Regarding Maintenance and Operators Unit Pursuant to Government
Code §54957.6
C-3 ADJOURN TO CLOSED SESSION
At 6:00 p.m., Mayor Johnson adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 7:09 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:11 p.m., Mayor Johnson reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions.
In regard to Item C-2 (a), discussion was had and settlement direction was given.
In regard to Items C-2 (b) and C-2 (c), discussion was had and negotiating direction was given.
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of October 3, 2007, was called to order by Mayor Johnson at
7:11 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 Director Ken Owen, Christian Community Concerns.
C. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Johnson.
Continued October 3, 2007
D. AWARDS / PROCLAMATIONS / PRESENTATIONS
D-1 Awards — None
D-2 (a) Mayor Johnson presented a proclamation to Paula Grech, representing the San Joaquin
County Women's Center — Lodi Office, proclaiming the month of October 2007 as
"Domestic Violence Awareness Month" in the City of Lodi.
D-3 (a) Joe Price and Amanda Stevens with the Greater Lodi Area Youth Commission provided an
update on the activities and accomplishments of the Commission.
E. CONSENT CALENDAR
In accordance with the report and recommendation of the City Manager, Council, on motion of
Mayor Pro Tempore Mounce, Hitchcock second, unanimously approved the following items
hereinafter set forth except those otherwise noted:
E-1 Claims were approved in the amount of $2,292,791.05.
E-2 The minutes of September 18, 2007 (Shirtsleeve Session) and September 25, 2007
(Shirtsleeve Session) were approved as written.
E-3 Received quarterly report of purchases between $5,000 and $20,000.
E-4 Approved the plans and specifications and authorized advertisement for bids for Lodi Library
Lighting Retrofit Project.
E-5 Authorized advertisement for bids for 25,000 feet of 1100 kcmil 15kV underground cable and
14 units of Lodi -48 primary vaults with covers.
E-6 Adopted Resolution No. 2007-194 awarding the purchase of padmounted liquid insulated
vacuum switchgear and load/fault interrupters to Trayer Engineering Corporation, of
San Francisco, CA, in the amount of $105,776.42.
E-7 "Adopt Resolution Awarding Brokerage Services to Sell Surplus City -Owned Real Estate
Properties to Coldwell Banker Commercial, the Duncan Company, Inc., of Woodbridge, CA"
was removed from the Consent Calendar and discussed and acted upon following
approval of the Consent Calendar.
E-8 Approved Change Orders for the repair of two power transformers at Industrial Substation in
the amount of $27,431.
E-9 "Adopt Resolution Approving Improvement Deferral Agreement for 975 South Fairmont
Avenue" was removed from the Consent Calendar and discussed and acted upon
following approval of the Consent Calendar.
E-10 "Status of San Joaquin County Consideration of an Armstrong Road Agricultural/Cluster
Zoning Classification" was removed from the Consent Calendar and discussed and
acted upon following approval of the Consent Calendar.
E-11 Set public hearing for October 17, 2007, to consider adoption of the 2007 California Building
Code, Mechanical Code, Electrical Code, Plumbing Code, and Fire Code with local
amendments and revise Building Permit Fee Schedule 1A, along with fee increases for
building, mechanical, plumbing, and electrical permits.
W
Continued October 3, 2007
ACTION ON ITEMS REMOVED FROM THE CONSENT CALENDAR
E-7 "Adopt Resolution Awarding Brokerage Services to Sell Surplus City -Owned Real Estate
Properties to Coldwell Banker Commercial, the Duncan Company, Inc., of Woodbridge, CA"
Mayor Johnson pulled this item for further discussion.
Mayor Johnson stated he would abstain from the matter and left the dais and room.
In response to Council Member Hitchcock, City Attorney Schwabauer confirmed there is no
legal conflict of interest. He stated Mr. Johnson was never employed by the subject
company; although, he was employed by another company, which was owned by the same
individual who owns the subject company.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Katzakian second, adopted
Resolution No. 2007-195 awarding brokerage services to sell surplus City -owned real estate
properties to Coldwell Banker Commercial, the Duncan Company, Inc., of Woodbridge, CA.
The motion carried by the following vote:
Ayes:
Council Members
— Hansen, Hitchcock, Katzakian, and Mounce
Noes:
Council Members
— None
Absent:
Council Members
— None
Abstain:
Council Members
— Mayor Johnson
E-9 "Adopt Resolution Approving Improvement Deferral Agreement for 975 South Fairmont
Avenue"
Council Member Hitchcock pulled this item for further discussion.
In response to Council Member Hitchcock, Public Works Director Prima stated the
Environmental Impact Report indicates traffic signal light requirements and peak hour traffic
criteria have been met and staff has worked with Lodi Memorial Hospital staff regarding the
same.
In response to Council Member Hitchcock, Mr. Prima confirmed there will be improvements
on both the school and hospital sides for appearance purposes and it will take two years or
more to complete the improvements.
In response to Mayor Johnson and Mayor Pro Tempore Mounce, Mr. King stated the item
can be placed on the agenda for consideration by the 2 x 2 Committee.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
adopted Resolution No. 2007-196 approving the Improvement Deferral Agreement for 975
South Fairmont Avenue and authorizing the City Manager and City Clerk to execute the
agreement on behalf of the City.
E-10 "Status of San Joaquin County Consideration of an Armstrong Road Agricultural/Cluster
Zoning Classification"
Council Member Hitchcock pulled this item for a presentation.
Community Development Director Hatch provided an overview of the status of the
agricultural and cluster zoning classification as stated in the Council Communication and
stated the item is to be considered at a future Board of Supervisors meeting, which has not
occurred yet. Mr. King stated there may be some support for the designation area of AL -5
and staff will be verifying that theory as quickly as it can for the record.
Continued October 3, 2007
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
received the Etatus report of San Joaquin County consideration of an Armstrong Road
Agricultural/Cluster Zoning Classification.
COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
oo Georgia Potts spoke of her concerns regarding the clean-up of graffiti along the brick wall on
Lower Sacramento and Turner Road. Community Improvement Manager Wood stated staff is
continuing to work on this site and others with respect to removing the remaining graffiti shadow
after the initial clean-up.
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Hansen reported on the status of the efforts regarding Highway 12, the town
hall meeting scheduled at Hutchins Street Square for October 9, 2007, at 7:00 p.m., attendance
at the annual Northern California Power Agency conference, AB 32 legislation regarding
greenhouse gases, and the Modesto Irrigation District subscription to the new Lodi Plant.
00 Mayor Pro Tempore Mounce commended the Youth Commission and clarified that the Fall
Formal bids will be available at Carnegie Forum on October 14, 2007. She also commended
former Council Member Pinkerton for his dedicated service to the City.
oo Council Member Hitchcock reported on her attendance at the San Joaquin Council of
Governments and the Local Agency Formation Commission meetings and briefly discussed the
expansion of freeways for traffic increases and moving forward with specifics regarding
community separators.
00 Mayor Johnson commended former Council Member Pinkerton for his dedicated service to the
City and also commended Delta College on its successful event and outreach efforts in
connection with the new proposed campus.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo City Manager King stated staff is working on replacing a transmission line to the White Slough
facility as quickly as possible. He stated notification regarding the same was provided to the
property owners in the vicinity.
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
Lodi Memorial Hospital regarding issuance of tax-exempt obligations and q)proval of the
California Statewide Community Development Authority's issuance of indebtedness to
construct a new Lodi Memorial Hospital project.
City Manager King briefly introduced the subject matter, stating the City has no financial
obligation in the matter and the public hearing is a procedural requirement for the hospital to
obtain non-taxable conduit financing. Deputy City Manager Krueger confirmed the same
and added that the financing is through the California Communities Joint Powers Authority
(JPA).
Michael LaPierre, representing the California Statewide Communities Development
Authority, provided an overview of the JPA and specifically discussed the administrative
process associated with the public hearing, requirements under the Internal Revenue Code,
and debt obligations of the JPA.
In response to Mayor Johnson, Mr. Krueger stated the public hearing and hospital financing
have no affect on the City's bond rating.
al
Continued October 3, 2007
Discussion ensued between Mayor Johnson, Council Member Hansen, and City Manager
King regarding the hospital's ability to obtain non-taxable financing without the City's
participation, the ability of employees to use Lodi Memorial Hospital instead of Stockton
hospitals, the status of the insurance dispute with Blue Cross, and the similar issue with
the school district.
Roy Kreutner, Chief Financial Officer for Lodi Memorial Hospital, stated the school district
has gone with Pacificare effective October 1, 2007, and the hospital was unable to reach an
agreement with Blue Cross.
Council Member Hitchcock stated the employee issue does not apply to the matter before
the Council. She also stated the non-taxable financing is good for the hospital and
community. Mr. King stated he discussed with Mr. Harrington the possibility of a local PPO
for the employees through the hospital directly.
Hearing Ooened to the Public
None.
Public Portion of Hearing Closed
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
adopted Resolution No. 2007-197 approving the issuance of the California Statewide
Communities Development Authority insured revenue bonds (Lodi Memorial Hospital) in one
ore more series in an aggregate principal amount not to exceed $150,000,000 for the
purpose of financing and refinancing the acquisition, construction, equipping, and
improvement of certain health care facilities owned and operated by Lodi Memorial Hospital
Association, Inc. and other matters relating thereto.
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 Hansen, Mounce second,
unanimously made the following appointment:
Lodi Improvement Committee
Magda Simpson Term to expire March 1, 2008
J-3 Miscellaneous — None
RECESS
At 8:17 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened at
8:27 p.m.
K. REGULAR CALENDAR
K-1 "Authorize the City Manager to Enter into Negotiations with PAM Companies to Develop an
Affordable Housing Project"
City Manager King briefly introduced the subject matter.
Community Improvement Manager Wood provided a PowerPoint presentation regarding the
Railroad Avenue affordable housing project. Mr. Wood specifically discussed the history of
the site and the project, response to request for proposals, review of proposals, process of
site visits, Committee review and discussions, resubmitted proposals, Committee
recommendations, and the process of selecting a developer.
5
Continued October 3, 2007
In response to Mayor Pro Tempore Mounce, Fire Chief Pretz stated the Fire Department
will require proper access as part of the development of the proposed project.
In response to Mayor Pro Tempore Mounce, Public Works Director Prima stated they are
required to maintain the walkthrough for the crosswalk near the Calaveras school crossing,
but they are not required to keep right-of-way access unless the grant deed specifies
otherwise.
In response to Mayor Pro Tempore Mounce, Mr. Wood stated staff will provide the crime
statistic information of the surrounding area available to the Council.
In response to Mayor Pro Tempore Mounce, Community Development Director Hatch
stated there will be a Phase 2 environmental study and remediation will be considered if
contamination is found.
In response to Council Member Hitchcock, Community Development Director Hatch stated
the rent chart does not include Section 8 application, under which (regardless of income)
the maximum rent would be 30% of the income with the balance picked up by the
Department of Housing and Urban Development subsidies.
In response to Council Member Hitchcock, Mr. Hatch stated the developer is looking for
capital costs to build the project and on the operations side will be charging individuals
and/or obtaining assistance from federal government subsidies.
In response to Council Member Hitchcock, Ed Sido, Executive Officer of the San Joaquin
County Housing Authority, stated qualification is for the lifetime of an individual so long as
needed and the program itself will likely be funded by the federal government for some time
to come.
Mr. Wood provided an overview of the Lodi Police Department reported crimes in the area
between Washington Street, Lodi Avenue, Highway 99, and Lockeford Street.
In response to Council Member Hitchcock, Mr. Hatch stated he is not sure why Visionary
Home Builders did not look at Section 8 housing possibilities and work with the Housing
Authority regarding the same.
PUBLIC COMMENTS:
co Catherine Brown spoke of her concerns regarding the value of the property on Railroad
Avenue. Mr. Wood stated the initial appraisal for land value was $1.5 million and may
be worth more now since the land will be identified as residential. Mr. Hatch stated the
City subsidies are maxed out at $1.2 million.
co Warren Potts spoke of his concerns regarding the location of the proposed project and
the proximity of services within a walking area and bus transportation.
co Virginia Snyder spoke in favor of the proposed project, stating it will trigger overall
improvements in the area and expressed her concern regarding a walkway going
through the project.
00 Mike Boettger of PAM Companies specifically discussed fire access with knock -down
gates, tax credit application for infill properties, proximity from a bus stop and park,
market on Cherokee Lane, Smart and Final store, LOEL Center, pharmacy, points to
compete in the tax credit arena, exclusive feasibility study agreement, entitlement
application, and the need for a $150,000 deposit.
Con
Continued October 3, 2007
In response to Council Member Hitchcock, Mr. Hatch stated the next phase of the project
will include application for entitlement, tax credits, and Section 8.
In response to Council Member Hansen, Mr. King stated the authorization is to enter into
negotiations and final approval would be brought back to the Council. Mr. King also
discussed the exclusive negotiation process and conditions, site designs, the
reasonableness of the ten percent deposit amount in the industry, and obtaining site control
prior to requiring the deposit.
City Attorney Schwabauer stated the Council can proceed with entering into the agreement
with certain modifications, including the specific deposit amount and performance
information, to be determined at a later date by the City Manager, and then brought back to
Council.
In response to Mayor Johnson, Mr. Hatch stated with Phase 1 and 2 the City is up to
approximately $20,000 with staff time and design.
In response to Mayor Pro Tempore Mounce, Mr. Hatch stated the building on Rush Street
can be raised when permits are taken out and, with a suggested 18 -month negotiation
period, the project should be built over 2'h years.
Mayor Pro Tempore Mounce stated she cannot support the recommendation because she
does not believe it is the right location.
MOTION/ VOTE:
The City Council, on motion of Council Member Hansen, Hitchcock second, adopted
Resolution No. 2007-198 authorizing the City Manager to execute an exclusive feasibility
study period agreement wth PAM Development, Inc. for Railroad Avenue senior housing
project with the addendums as provided by the City Attorney. The motion carried by the
following vote:
Ayes: Council Members — Hansen, Hitchcock, Katzakian, and Mayor Johnson
Noes: Council Members — Mounce
Absent: Council Members — None
RECESS
At 9:54 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened at
9:59 p.m.
K-2 "Update from the Grape Bowl Ad Hoc Committee and Save the Grape Bowl Committee"
City Manager King and Interim Parks and Recreation Director Dutra briefly introduced the
subject matter.
Committee Member Jack Fiori provided a presentation on the efforts of the Save the Grape
Bowl Committee and specifically discussed the history of the committee, fundraising
efforts, 501(c)(3) status, the Sacramento Foundation umbrella, fundraising total to date of
$108,000, involvement of the Board of Supervisors, possibility of an extension of time, the
economy, and naming options associated with a large donation.
In response to Mayor Pro Tempore Mounce, Mr. Fiori stated the Committee is working with
Lodi-Tokay students and the public at large.
Council Member Hansen suggested the Committee look at holding an event similar to the
Hutchins Street Square Field and Fair Day. Mr. Fiori stated the Committee is looking at a
variety of fundraising options and will speak with Ken Vogel next week regarding an
extension. City Manager King stated he believes the Board will be amicable to the idea of
an extension and will follow-up.
7
Continued October 3, 2007
Richard Dean provided a presentation regarding the Ad Hoc Committee efforts and status.
Specific topics of discussion included the make-up of the Committee members and staff,
design concept, the Stockton street entrance, the approximate cost of $6 million to $B
million, Americans with Disabilities Act compliance, utilization of the facility, various funding
options, Committee recommendations, extension for agreements, Community Development
Block Grant funding, redevelopment application, partnership with the school district,
mitigation fees, and the need for the Committee to continue.
In response to the discussion about mitigation fees and/or developer fees, City Manager
King provided an overview of the types of development fees, including development impact
fees for additions, park land fees for expansion, and land mitigation fees identified in
environmental documentation and development agreements.
A brief discussion ensued between Mayor Johnson, Mayor Pro Tempore Mounce, and
Council Member Hitchcock regarding funding and utilizing the Grape Bowl so as to provide
ongoing maintenance and operation costs for the same.
MOTION / VOTE:
There was no Council action taken on this matter.
K-3 "Confirm Previously Approved Report, Adopt a Resolution to Continue the Assessment and
Programs of the Lodi Tourism Business Improvement District (LTBID), and Set a Public
Hearing for October 17, 2007"
City Manager King provided a brief overview of the process associated with submitting an
annual report, levying the assessment, and conducting a public hearing.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Katzakian second,
unanimously confirmed the previously approved report, adopted Resolution No. 2007-199 to
continue the assessment and programs of the Lodi Tourism Business Improvement District,
and set a public hearing for October 17, 2007.
K-4 "Designation of a Member of the City Council to Participate in the Rating Agency
Presentation for the Wastewater System Financing"
City Manager King provided a brief overview of the proposed presentation to the rating
agencies scheduled for October 12, 2007, and requested a Council Member be appointed
to participate in the same.
In response to Mayor Johnson, Mr. Krueger stated the representatives from Standard &
Poor's are not the same, but the representatives from Fitch may be.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Hansen second, unanimously
designated Mayor Johnson to participate in the rating agency (Fitch Ratings and Standard
& Poor's) presentation on October 12 in San Francisco for the wastewater system
financing.
K-5 "Approve Expenses Incurred by Outside Counsel/Consultants Relative to the Environmental
Abatement Program Litigation and Various Other Cases being Handled by Outside Counsel
($90,187.15)"
MOTION / VOTE:
The City Council, on motion of Mayor Johnson, Mounce second, unanimously approved the
expenses incurred by outside counsel/consultants relative to the Environmental Abatement
Program litigation and various other cases being handled by outside counsel in the amount
of $90,187.15, as detailed below:
Continued October 3, 2007
L.
Folger Levin & Kahn - Invoices Distribution
Matter Invoice
Water Acct.
No. No.
Date
Description
Amount
8003 103985
08/31/07
Hartford Insurance Coverage Litigation
$200,128.01
Contingency Fee Amount Savings
-144,036.00
8008 103986
08/31/07
City of Lodi v. Envision Law Group
$ 10,003.60
15043
06-07/1/07
PES Environmental, Inc. (Keith Obrien)
$ 8,268.44
15326
07/30/07-
PES Environmental, Inc. (Keith Obrien)
$ 8,983.25
09/02/07
08/04/07-
George Tchobanoglous, Ph.D.
$ 4,304.10
09/14/07
170907a
08/31/07-
Dr. Jim A. Field
$ 1,125.00
09/14/07
Total
$ 88,776.40
MISCELLANEOUS
Water Acct.
Invoice No.
Date
Description
Amount
08/08/07
Patrick Hassey Deposition Expenses
$ 18.00
3044
8/7/2007
Benchmark Video
$ 1.392.75
Total
$ 1,410.75
ORDINANCES
L-1 Following reading of the title of Ordinance No. 1802 entitled, 'An Ordinance of the City
Council of the City of Lodi Amending Lodi Municipal Code Title 13 — Public Services —
Adding Section 13.20.185, `Section CSS — California Solar Initiative Surcharge,"' having
been introduced at a regular meeting of the Lodi City Council held September 19, 2007, the
City Council, on motion of Mayor Johnson, Hansen 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, and Mayor Johnson
Noes: Council Members — Mounce
Absent: Council Members — None
Abstain: Council Members — None
L-2 Following reading of the title of Ordinance No. 1803 entitled, 'An Ordinance of the City
Council of the City of Lodi Amending Lodi Municipal Code Title 13 — Public Services —
Chapter 13.12, `Sewer Service,' by Repealing and Reenacting Section 13.12.150 Relating
to Connections Outside City," having been introduced at a regular meeting of the Lodi City
Council held September 19, 2007, the City Council, on motion of Mayor Pro Tempore
Mounce, Katzakian second, waived reading of the ordinance in full and adopted and ordered
it to print by the following vote:
Ayes: Council Members — Hansen, Katzakian, Mounce, and Mayor Johnson
Noes: Council Members — Hitchcock
Absent: Council Members — None
Abstain: Council Members — None
ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at
10:59 p.m.
9
ATTEST:
Randi Johl
City Clerk