HomeMy WebLinkAboutMinutes - December 20, 2006LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, DECEMBER 20, 2006
C-1 CALL TO ORDER / ROLL CALL
The City Council Closed Session meeting of December 20, 2006, was called to order by
Mayor Johnson at 5:34 p.m.
Present: Council Members — Hansen, Hitchcock, Katzakian [excluding C -2(f)], 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, Police Officers Association, Professional
Firefighters, and Fire Mid -Managers pursuant to Government Code §54957.6
b) Actual Litigation: Government Code §54956.9(a); One Case; Peter Rose, et a1. v. City of
Lodi. United States District Court, Eastern District, Case No. 2:05 -CV -2232 GEB/PAN and
Consolidated Cases
C) Prospective Acquisition of Real Property for Street Easement Deed Dedications from
Certain Property Owners Located within the Lockeford Street Widening Project Limits, Lodi,
California, for Right -of -Way; the Negotiating Parties are Michael Guddal
(APN #041-230-35); Cuong Van and Nhai Le (APN #041-230-42); Douglas A. and Susan
Larsson (APN #041-230-08); Dale and Susan Werner, Jr. (APN #041-230-34), and City of
Lodi; Government Code §54956.8 (PW)
d) Prospective Acquisition of Real Property for Street Easement Deed Dedications from
Certain Property Owners Located within the Turner Road/Lower Sacramento Road Project
Limits, Lodi, California, for Right -of -Way; the Negotiating Parties are General Mills (APN #s
015-230-31 and 015-230-40), Lodi Unified School District (APN # 015-170-10), and City of
Lodi; Government Code §54956.8 (PW)
e) Actual Litigation: Government Code §54956.9(a); One Case; Hartford Accident and
Indemnity Company, et al. v. City of Lodi, et a1.. Superior Court, County of San Francisco,
Case No. 323658
f) 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
C-3 ADJOURN TO CLOSED SESSION
At 5:35 p.m., Mayor Johnson adjourned the meeting to a Closed Session to discuss the above
matters.
The Closed Session adjourned at 6:59 p.m.
C-4 RETURN TO OPEN SESSION / DISCLOSURE OF ACTION
At 7:06 p.m., Mayor Johnson reconvened the City Council meeting, and City Attorney Schwabauer
disclosed the following actions.
In regard to Item C-2 (a), negotiating direction was given.
Item C-2 (b) was discussion only.
Items C-2 (c), C-2 (d), and C-2 (e) were not discussed.
In regard to Item C-2 (f), settlement authority was given.
Continued December 20, 2006
A. CALL TO ORDER / ROLL CALL
The Regular City Council meeting of December 20, 2006, was called to order by Mayor Johnson at
7:06 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 Dale Edwards, Century Assembly Church.
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 $1,478,257.91.
E-2 The minutes of September 12, 2006 (Shirtsleeve Session), September 14, 2006 (Special
Joint Meeting w/Lodi Planning Commission), November 28, 2006 (Shirtsleeve Session),
November 29, 2006 (Special Meeting), December 5, 2006 (Special Meeting), December 5,
2006 (Shirtsleeve Session), December 6, 2006 (Regular Meeting), and December 12, 2006
(Shirtsleeve Session) were approved as written.
E-3 Received the quarterly report of purchases between $5,000 and $20,000.
E-4 Adopted Resolution No. 2006-223 approving the City of Lodi Annual Investment Policy and
Internal Control Guidelines.
E-5 Adopted Resolution No. 2006-224 authorizing the replacement purchase of four mobile
digital computers for newly purchased patrol cars from Data 911, of Alameda, California, in
the amount of $24,936.37, from the Vehicle Theft Account.
E-6 Adopted Resolution No. 2006-225 authorizing the City Manager to execute a professional
services agreement for benefits administration consulting services for the City of Lodi with
ABD Insurance & Financial Services, in the amount of $25,000, for a three-year term with
an administrative option to renew for another one-year period.
E-7 "Adopt Resolution Approving the AB1234 Expense Reimbursement Policy" was removed
from the Consent Calendar and discussed and acted upon following approval of the
Consent Calendar.
2
Continued December 20, 2006
E-8 "Adopt Resolution Approving the Impact Mitigation Fee Program Annual Report for Fiscal
Year 2005-06" was removed from the Consent Calendar and discussed and acted upon
following approval of the Consent Calendar.
E-9 Adopted Resolution No. 2006-226 to vacate a six-foot public utility easement at 710 North
Sacramento Street.
E-10 Adopted Resolution No. 2006-227 authorizing destruction of certain records retained by the
Lodi Police Department.
E-11 Adopted Resolution No. 2006-228 requesting the San Joaquin Regional Rail Commission to
utilize the Union Pacific Railroad through Downtown Lodi for the Merced b Sacramento
commuter rail service.
E-12 Adopted Resolution No. 2006-229 declining to succeed to a Williamson Act contract within
the Reynolds Ranch area.
E-13 "Set public hearing for January 3, 2007, to consider implementation of a new Substation
and Transmission System Charge to be assessed as a development impact fee upon future
electric utility customers outside existing City boundaries and making corresponding
amendments to the applicable Electric Utility Department Rules and Regulations" was
pulled from the agenda.
ACTION ON ITEMS REMOVED FROM THE CONSENT CALENDAR
E-7 "Adopt Resolution Approving the AB1234 Expense Reimbursement Policy"
City Clerk Johl requested the item be approved with the suggested changes provided to the
Council on a blue sheet (filed). In response to Council Member Hansen's questions,
Ms. Johl stated the change on No. 5 of the blue sheet provided the official shall report on
the meeting at the next meeting he or she attends.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
adopted Resolution No. 2006-230 approving the AB1234 Expense Reimbursement Policy.
E-8 "Adopt Resolution Approving the Impact Mitigation Fee Program Annual Report for Fiscal
Year 2005-06"
In response to Council Member Hitchcock's question, Public Works Director Prima stated
the action is for previously reviewed fees, not additional fees, which will be brought back as
part of the budget process. (buncil Member Hitchcock inquired about the San Joaquin
Council of Governments fee. Mr. Prima stated the fee, along with some Measure K money,
was used for the Kettleman Lane street widening project. He also stated that the fee is
being repaid at approximately $96,000 per year.
MOTION / VOTE:
The City Council, on motion of Council Member Hitchcock, Mounce second, unanimously
adopted Resolution No. 2006-231 Epproving the Impact Mitigation Fee Program Annual
Report for Fiscal Year 2005-06.
F. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None
G. COMMENTS BY CITY COUNCIL MEMBERS ON NON -AGENDA ITEMS
oo Council Member Hansen requested staff research a resident request regarding obtaining senior
discounts through the cable company.
Continued December 20, 2006
oo Council Member Hitchcock thanked staff for a great year and wished everyone a Merry
Christmas.
00 Mayor Pro Tempore Mounce reported on her attendance at the Lodi Youth Commission
meeting, the upcoming dance, and monthly status meetings and urged resident participation
with the same. She also wished everyone a Merry Christmas and shared a City Council wish.
00 Mayor Johnson reported on his meeting with a representative from Senator Boxer's office and
requested staff contact Congressman McNerney's office.
H. COMMENTS BY THE CITY MANAGER ON NON -AGENDA ITEMS
oo City Manager King reported on the job announcement for the Community Center Director, the
International Brotherhood of Electrical Workers apprenticeship program, and efforts to contact
Congressman McNerney. In response to Mayor Johnson and Council Member Hansen,
Mr. King stated staff will contact Comcast regarding senior discounts and reported that the
current franchise agreement expires in two years. Mr. King stated they are currently collecting
3% gross revenues; although, federal law allows 5%.
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
Resolution to Vacate two public utility easements located at 1028 South School Street and
1029 South Sacramento Street.
City Engineer Sandelin provided a brief overview of the recommended action.
In response to Council Member Hitchcock's question, Mr. Sandelin stated the strip is not
owned by the City, the easement accommodated old utility lines, which are now primarily
underground, and vacating the easement, which does not carry a value with it, is primarily
to clean up the former utility appearance.
Hearing Opened to the Public
None
Public Portion of Hearing Closed
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Mounce second, unanimously
adopted Resolution No. 2006-232 to eecate a 16 -foot public utility easement at 1028 South
School Street and an 11 -foot public utility easement at 1029 South Sacramento Street.
1-2 "Public Hearing to Consider Resolution Establishing Area of Benefit and Reimbursable
Costs br Lower Sacramento Road (Kettleman Lane to Harney Lane) Improvements" was
pulled from the agenda.
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 directed the City Clerk to post for the following vacancy:
Recreation Commission
Scott Davis Term to expire December 31, 2008
0
Continued December 20, 2006
J-3 Miscellaneous
a) The City Council, on motion of Mayor Pro Tempore Mounce, Hitchcock second,
unanimously accepted the cumulative Monthly Protocol Account Report through
November 30, 2006.
K. REGULAR CALENDAR
K-1 "Adopt Resolution Implementing the Treatment and Direct Utilization of the Surface Water
Supply from the Woodbridge Irrigation District Contractual Allotment and Authorizing
Solicitation of Proposals for Technical Studies of Implementing this Option or Direct Staff in
the Alternative"
City Manager King provided a brief introduction of the subject matter.
Public Works Director Prima provided a PowerPoint presentation (filed) regarding
implementing a treatment and direct utilization of the surface water supply program.
General topics of discussion included the history and current status of the project; differing
ways to utilize the water looked at since 2003; the $1.2 million payment to the Woodbridge
Irrigation District (WID); staff recommendation of the treat and drink option; reasons for the
recommended action; previous considerations including elections, Measure H, and
ratepayer impact; and the next steps including formal studies of the program.
Discussion ensued between Council Member Hitchcock and Mr. Prima regarding the
financial impacts of both options, the possibility of a community facilities district, upfront
costs, rates until new growth comes on line, lack of information regarding financial studies,
the anticipated start-up cost of $250,000 to $500,000, and the need for additional
information regarding the studies and related costs.
In response to Mayor Johnson's request, Mr. Prima reviewed a slide from a previous
presentation illustrating the anticipated costs for both options. He specifically reviewed
recharge and direct use costs, exceptions regarding existing land usage versus new land
purchase, overlaps in costs, additional studies, special taxes on new homes and/or
landowners, and related debt service bonds.
Council Member Katzakian inquired about the initial term of the contract. Mr. Prima stated
it is a 40 -year contract plus a 4 -year option. He stated the contract does have a removal
provision if the plant was built.
Discussion ensued between Council Member Hansen and Mr. Prima regarding the financial
plan on land assessment, the treat and drink versus recharge debate, system recovery,
partnership with San Joaquin Water Authority, the time frame for the study and complete
build out in four to five years, status reports, WID extension, computer analysis on how to
move water, potential data for watershed study, and concerns regarding not using allocation
amount.
PUBLIC COMMENTS:
oo Chuck Easterling spoke in favor of the treat and drink option and building a facility,
based on his concerns regarding the overdraft situation, utilizing the allocation,
quantitative recovery, and aquifer usage.
In response to Mayor Johnson's question, City Manager King stated he had a direct
conversation with the city of Stockton and it is not interested in joint construction of a plant,
based on the fact that water is an important commodity and many entities do not want to
have joint authority over water rights.
Continued December 20, 2006
Mayor Pro Tempore Mounce stated diversity is a good option and she supports the treat
and drink option.
Council Member Hitchcock stated she is opposed to the treat and drink option based on
staffs prior recommendations, concerns regarding costs, diversity in groundwater recharge,
and water chlorination.
In response to Council Member Hansen's question, Mr. Prima stated the studies will show
the impact on ratepayers and water chlorination may occur regardless of plant construction.
MOTION / VOTE:
The City Council, on motion of Mayor Pro Tempore Mounce, Hansen second, adopted
Resolution No. 2006-233 implementing the treatment and direct utilization of the surface
water supply from the Woodbridge Irrigation District annual 6,000 acre-feet contractual
allotment and authorizing solicitation of proposals for technical studies of implementing this
option. The motion carried by the following vote:
Ayes: Council Members — Hansen, Katzakian, Mounce, and Mayor Johnson
Noes: Council Members — Hitchcock
Absent: Council Members — None
K-2 "Electric Utility, Water, and Wastewater Utility 1" Quarter Fiscal Year 2007 Financial
Reports"
Electric Utility Director Morrow provided a PowerPoint presentation (filed) regarding the
electric utility quarterly update. General topics of discussion included a summary, financial
results, power supply, electric expenses by series, operating expenditures, sales, billing
statistics, Northern California Power Agency general operating reserve, 2007 financials,
cash balance, open position, electric prices, and natural gas price curves.
In response to Council Member Hitchcock's question, Mr. Morrow stated the numbers
reflect a tilt in the actual rates based on 2005 numbers and they are moving closer to actual
cost assessments.
Council Member Hansen inquired about meeting with businesses regarding contract
expirations. Mr. Morrow stated staff has met with several businesses and most accept and
understand the financial condition of the utility. Council Member Hansen commended Mr.
Morrow on the positive status report and the benefit to citizens of keeping the lights on
while others are experiencing outages.
Deputy City Manager Krueger provided a PowerPoint presentation (filed) regarding the water
and wastewater quarterly update. General topics of discussion included water and
wastewater fund financial results, operating results, and cash balances.
In response to Mayor Pro Tempore Mounce, Mr. Krueger stated citizens can view amounts
associated with the water and sewer funds on their monthly billing.
Discussion ensued between Council Member Hansen, Mr. Krueger, and Mr. Prima
regarding the future of the two funds, allocation to deficit and mitigation funds, litigation
settlement impacts, and phases of implementing the previous rate increase.
Discussion ensued between Council Member Hitchcock and Mr. Prima regarding the plan
for the deficit, rate increases and phasing associated with PCE/TCE, and plume
settlements and impacts.
3
Continued December 20, 2006
City Manager King stated they are holding to their net $45.7 million settlement figure, the
rate adjustment was for unanticipated costs associated with PCE/TCE, mediation costs,
and litigation costs, and the costs are stabilizing as settlements are taking place.
MOTION / VOTE:
There was no Council action taken on this matter.
RECESS
At 8:55 p.m., Mayor Johnson called for a recess, and the City Council meeting reconvened
at 9:03 p.m.
K-3 "Adopt Resolution Amending the Electric Utility Department Rules and Regulations
Nos. 13, 15, and 16 to Recover the Full Cost of Expanding the Electric Distribution System
from New Electric Load to be Effective 60 Days after Adoption"
City Manager King briefly introduced the subject matter, stating a future public hearing will
take place regarding the same.
Electric Utility Director Morrow provided a PowerPoint presentation (filed) regarding the
extension of electric facilities. General topics of discussion included the current policy,
historical costs, residential subdivision costs, utility survey results, typical residential cost
comparison, summary, and staff proposal.
In response to Council rvbmber Hansen's question, Mr. Morrow stated all San Joaquin
cities excluded from the survey are served by Pacific Gas & Electric.
In response to Mayor Pro Tempore Mounce's question, Mr. King stated the resolution does
apply to newer developments, including the Reynolds Ranch, Southwest Gateway, and
Westside projects.
City Manager King provided an overview of the City's financial condition and rating status by
various ratings agencies including Standard and Poor's and Fitch. Discussion ensued
between Mr. King, Council Member Hitchcock, and Mayor Johnson regarding Standard and
Poor's upcoming visit to the City, the proposed target reserve policy, approach to increase
ratings, maintaining open communications with both agencies, and closely watching the
market conditions.
MOTION / VOTE:
The City Council, on motion of Council Member Hansen, Hitchcock second, unanimously
adopted Resolution No. 2006-234 amending the Electric Utility Department Rules and
Regulations Nos. 13, 15, and 16 to recover the full cost of expanding the electric
distribution system from new electric load to be effective 60 days after adoption.
L. ORDINANCES
None
M. ADJOURNMENT TO AGENCY MEETINGS
M-1 "Meeting of the Lodi Public Improvement Corporation"
At 9:25 p.m., Mayor Johnson adjourned the City Council meeting to conduct the meeting of
the Lodi Public Improvement Corporation. Following the call to order, Secretary Johl
recorded roll.
7
Continued December 20, 2006
MOTION / VOTE:
The Corporation, on motion of Director Hitchcock, Mounce second, unanimously adopted
Resolution No. LPIC2006-01 electing the new officers to the Lodi Public Improvement
Corporation for calendar year 2007.
There being no further business, the meeting was adjourned at 9:26 p.m.
M-2 "Meeting of the Industrial Development Authority"
At 9:26 p.m., Chairperson Johnson called to order the meeting of the Industrial
Development Authority, and Secretary Johl recorded roll.
MOTION / VOTE:
The Authority, on motion of Member Hitchcock, Hansen second, unanimously adopted
Resolution No. IDA -28 electing the new officers to the Industrial Development Authority for
calendar year 2007.
There being no further business, the meeting was adjourned at 9:26 p.m.
M-3 "Meeting of the Lodi Financing Corporation"
At 9:27 p.m., President Johnson called to order the meeting of the Lodi Financing
Corporation, and Secretary Johl recorded roll.
MOTION / VOTE:
The Corporation, on motion of Director Hansen, Johnson second, unanimously adopted
Resolution No. LFC-15 electing the new officers to the Lodi Financing Corporation for
calendar year 2007.
There being no further business, the meeting was adjourned at 9:27 p.m.
M-4 "Meeting of the City of Lodi Redevelopment Agency"
At 9:27 p.m., Chairperson Johnson called to order the meeting of the City of Lodi
Redevelopment Agency, and Secretary Johl recorded roll.
MOTION / VOTE:
The Agency, on motion of Member Hitchcock, Hansen second, unanimously adopted
Resolution No. RDA2006-01 electing the new officers to the City of Lodi Redevelopment
Agency for calendar year 2007 and vaiving compensation for the December 20, 2006,
meeting.
There being no further business, the meeting was adjourned at 9:27 p.m.
Mayor Johnson reconvened the City Council meeting at 9:27 p.m.
N. ADJOURNMENT
There being no further business to come before the City Council, the meeting was adjourned at 9:27
p.m.
ATTEST:
Randi Johl
City Clerk