Loading...
HomeMy WebLinkAboutMinutes - February 17, 2016LODI CITY COUNCIL REGULAR CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET WEDNESDAY, FEBRUARY 17, 2016 C-1 Calf , rder /Roll Call The City Council Closed Session meeting of February 17, 2016, was called to order by Mayor Chandler at 6:34 p.m. Present: Council Member Mounce, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: Council Member Johnson, and Council Member Nakanishi Also Present: City Manager Schwabauer, City Attorney Magdich, and Deputy City Clerk Farris C-2 Announcement of Closed Session a} C-3 Adlourn W Closed Session At 6:34 p.m., Mayor Chandler adjourned the meeting to a Closed Session to discuss the above matter. The Closed Session adjourned at 6:48 p.m. C-4 ReWm to Open Session 1 Disclosure of Action At 7:00 p.m., Mayor Chandler reconvened the City Council meeting, and City Attorney Magdich disclosed the following action. Item C -2a was discussion only with no reportable action. A. Call to Qrde / Roll Call The Regular/Special Joint City Council meeting of February 17, 2016, was called to order by Mayor Chandler at 7:00 p.m. Present: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: Council Member Johnson Also Present: City Manager Schwabauer, City Attorney Magdich, and Deputy City Clerk Farris B. Presentatons - Nom: C. Consent Catera ar. Readin • CommenU by the Public, Council Action Council Member Mounce made a motion, second by Mayor Pro Tempore Kuehne, to approve the following items hereinafter set forth, except those otherwise noted, in accordance with the report and recommendation of the City Manager. VOTE: The above motion carried by the following vote: Ayes: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: None Absent: Council Member Johnson C-1 Receive Register of Claims In the Amount of $7.293.520,13b(FIN) Claims were approved in the amount of $7,293,520.85. C-2 Apl2rove Min es CLI{ The minutes of February 2, 2016 (Shirtsleeve Session) and February 3, 2016 (Regular Meeting) were approved as written. C-3 &Mt uarterlk Report of Purchases between $10.00.0 a 2O O00 (CM) Accepted the Quarterly Report of Purchases between $10,000 and $20,000. C-4 Accept Quaftrly Investment Re rt as RegulMd by the Cfty of Loi Investment Poli Accepted the Quarterly Investment Report as required by the City of Lodi Investment Policy. C-5 Acce to sAon of Mwanis Picnic Shelter at Lodi Lae Park from Kiwanis Club f Greate Lod1..{PR9-S Accepted the donation of the Kiwanis picnic shelter at Lodi Lake Park from the Kiwanis Club of Greater Lodi. C-6 Ado ResoluVon warden L:ontMe.t or zui-o w yams t LracK geanng, vv Lout. Avenue, to Telfer Pavement Technology, LLC, of McClellan ($42,83'(}(lO Adopted Resolution No. 2016-16 awarding the contract for 2016 Pavement Crack Sealing, West Lodi Avenue, to Telfer Pavement Technology, LLC, of McClellan, in the amount of $42,891. C-7 Adopt Resolution Awarding Contract for Central PI e - Mid Plum C CE Groundwater Treatment Project to Water Rock Cons ion Cv oratfon of Alameda . ($.445.Q00)_ Adopted Resolution No. 2016-17 awarding the contract for Central Plume - Mid Plume PCEITCE Groundwater Treatment Project to Water Rock Construction Corporation, of Alameda, in the amount of $445,000. C-8 Adopt Resol tion Authorizing City Ma a er to ExecuLe Task Order No. 39 with West Yost Adopted Resolution No. 2016-18 authorizing the City Manager to execute Task Order No. 39 with West Yost Associates, of Davis, for engineering design and construction management services for White Slough Water Pollution Control Facility improvements in the amount of $469,300. C-9 Adopt Resolution Authorizing City Manager to Execute Agreement with Partners for a Safer Arr-erica (PO Adopted Resolution No. 2016-19 authorizing the City Manager to execute an agreement with Partners for a Safer America. C-10 AdgtRi3tolutionAuthoiizingCLtyMtinggertogAec to Ag reementr Copy Mach ine F.guipment and Maintenance with Ricoh. USA {$104,004)_(0 0) Adopted Resolution No. 2016-20 authorizing the City Manager to execute an agreement for copy machine equipment and maintenance with Ricoh, USA, in the amount of $104,000. C-11 Mom Resolution Authorizing C11y Manager to.Apft for Grant Administered W D rtrnent of Alcoholic Beverage Control ;(PD Adopted Resolution No. 2016-21 authorizing the City Manager to apply for a grant administered by the Department of Alcoholic Beverage Control. C-12 Adopted Resolution No. 2016-22 selecting State Route 99/Turner Road Interchange Improvements as the project nomination for the San Joaquin Council of Governments' One Voice Trip. C-13 This item was pulled by Council Members Nakanishi and Mounce for comment. Council Member Nakanishi commented that the State mandates what local governments must do, but they do not provide the funding. Council Member Mounce explained that this law would enable homeless people to take up residence in city plazas, parks, and even the easements in front of homes; if the city owns the property, the homeless can live there and there is nothing the local jurisdiction can do about it. She further explained the League. of California Cities has been instrumental in bringing control back to local governments; the homeless issue is a local issue, and the City of Lodi, along with the Salvation Army, is doing an amazing job; the League of California Cities does not support the State telling cities what to do with their communities; the intent of the bill is good because it is trying to find. housing for the homeless, but the State should not dictate boW local jurisdictions police their own communities. Council Member Mounce encouraged citizens to call Senator Galgiani and urge her to vote no on SB 878. Mayor Chandler thanked Council Member Mounce for her comments and agreed that Lodi is doing a very good job making progress on homelessness. He stated that there is a Homeless Solutions Committee and it has two subcommittees, one looking at short-range solutions and the other looking at longer -range solutions, on which he and Mayor Pro Tempore Kuehne serve; they have been reaching out to other communities that have successful programs in place; and the Salvation Army and the Lodi Community Foundation have both done a terrific job. He stated that he agrees with Council Member Mounce in that the City is making good progress on its own and should have the authority to deal with this problem locally and not have State mandates thrust upon it. Council Member Mounce made a motion, second by Mayor Pro Tempore Kuehne, to authorize the Mayor, on behalf of the City Council, to send a letter of opposition for SB 876 (Liu): Enforcement of Local Ordinances. VOTE: The above motion carried by the following vote: Ayes: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: None Absent: Council Member Johnson 3 C-14 Set Pu iic Heoring for March 1.6 2016 to Consider Resolution Ado tl Pre- rave Set public hearing for March 16, 2016, to consider a resolution adopting pre -approved Proposition 218 Consumer Price IndexyBased annual adjustment to rates for solid waste collection. D. Co__Ments by the Public on Non- o nda Items THE TIME .AGENDA ITEM FOR .COMMENTS MADE BY THE PUBLH unless there is an emergency and the need to take action onthat emergency arose aver this agenda Was posted (Government Code Section 54964.2(b)12)}. All other items may only be refermed for review to staff or placement on a future _Council agenda. Michael Harris invited Council members and the public to attend Yoga in the Morning and Roots, Wine and Reggae on Saturday at noon at the Lodi Events Center. E. Comments by the City Council Members on Non-AgendaReLnns Council Member Nakanishi reported that the Stockton Record recently had an article about the City of Stockton raising water rates due to a .decrease in revenue that occurred in conjun.codon with water rationing; fortunately, the City of Lodi is not in that position; He also commented on the public perception that water is being wasted when fire hydrants are opened for cleaning, but the stagnant water must be released. He also reminded everyone that it is important to use water judiciously. City Manager Stephen Schwabauer clarified that the flushing of the City's water system is driven by the amount of time that the water sits in pipes and that it is an issue of taste and odor, not water quality. Council Member Mounce shared a complaint from a citizen regarding watering and overspray on the median located on Ham Lane, south of Kettleman Lane. She asked Interim Public Works Director Charlie Swimley to check into why the City is watering during the winter and to correct the overspray; the City should not be wasting water while asking citizens to conserve. Mr. Swimley responded that median sprinklers were turned off late in the fall but he will check into both the timers and the overspray issue. Council Member Mounce reported she received a complaint from the owner of French at Heart and Garden, a downtown business, who has been ticketed for parking longer than the permitted time, even though she is displaying a handicap placard. Council Member Mounce asked staff to investigate why this person is being ticketed and to perhaps find a better place for her to park. City Attorney Janice Magdich responded that vehicles displaying a handicap placard are not subject to the posted time limits, provided the person parking is the holder of the handicap placard; she will ask the Police Department to check on the issue. Council Member Mounce also reported that she spent yesterday morning at the Finance Department due to the concerns expressed about the level of service when paying utility bills. She stated that she spoke with the people who were in line to pay their bills and some of the things she learned were: some people pay by cash and need a receipt; the online bill -paying option does not take American Express or Discover Card; some like to talk to the clerks; but most were customers with shutoff notices. She further stated that it was not a very busy day, despite being the day after a holiday weekend; there was no line at times, although the line started to grow when someone had an issue and took a long time at the window. She reported that suggestions she received from the public included: having more clerks; not scheduling due dates on days the City is closed; and making furlough a day other than Friday. Council Member Mounce noted that 75 percent of the customers were young women with children on a fixed income. She suggested having a greeter/ombudsman to help people and direct them to the right place. Council Member Mounce further stated she will go to Finance again at lunchtime and at the end of the day. She thanked City employees and stated that they are working hard and doing a great 2 M Council Member Mounce offered congratulations for a successful Wine and Chocolate Festival. She expressed concerns that, as Lodi is promoted as a destination place, it should be a healthy place. She remarked on the growing gang issue on the east side and expressed hope that the City would be able to add police officers to keepresidents and tourists safe. She stated she spent time downtown during the festival and was concerned with homeless people who were screaming and yelling, and the clothes the homeless had left in a doorway; there are things the City could be doing better. Council Member Mounce stated that if the City is going to invite people to come, its house should be clean. comments the CRY Manager on Nan- ends Items None. G. .Public Hearin G-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 Chandler called for the public hearing to consider the appeal of Bella Terra Plaza / Rio Valley Charter School for reconsideration of the Planning Commission project indecision. Senior Planner Craig Hoffman reviewed the items provided in the staff report and explained that Rio Valley Charter School requested a Use Permit to relocate its facility to Bella Terra Plaza. He further explained the charter school is authorized by Lodi Unified School District (LUSD) and consists mostly of homeschool students who come to the site for tutoring and meetings with credentialed teachers. Mr. Hoffman noted that, on January 13, the Planning Commission held a duly -noticed public hearing at which Planning Commissioners and the public had the opportunity to ask questions about the charter school's use of the site and the current state of the proposed property. He further noted that representatives of the charter school were present at the public hearing, but, due to an emergency, the property owner's representative was unable to attend, and a number of questions and concerns regarding the property were unable to be answered. He reported that, following a robust discussion, the Planning Commission's vote ended in a three -to - three tie. Mr. Hoffman stated that staff, charter school representatives, and property owner representative were present at the Council meeting to answer questions and that he would refer any questions regarding the Alcoholic Beverage Control (ABC) license to the City Attorney. Council Member Nakanishi commented that the information presented in the staff report was very thorough, with good arguments on both sides. In response to his question regarding the ABC licenses near the proposed school, Mr. Hoffman reported that three of the Planning Commissioners felt there was not a violation and that the school could make the decision as to whether the property suited its needs. Of the other three Planning Commissioners, two were concerned about the current status of the property and Chair Heinitz had concerns about the alcohol and some of the other tenants, and ultimately those three Commissioners did not feel they had the answers to move forward with the project. Council Member Nakanishi stated he would approve the Use Permit because the charter school is Important, and the City could not be held liable because the managers of the school are responsible for placement of their school. In response to Council Member Nakanishi, Mr. Hoffman confirmed staffs recommendation was for approval of the Use Permit and staff feels the concerns regarding the condition of the property is more of an issue between the owner and tenants and not the City; the City does not get involved in their lease. Council Member Nakanishi reiterated that he would vote for approval of the Use Permit. Mayor Chandler asked for an interpretation of the ABC license issue from the City Attorney. City Attomey Janice Magdich stated the question had been. ralsed as to whether or not a school can be located within 800 feet of businesses that have alcohol licenses. She noted that alcohol 5 licenses are issued by the ABC, not by the City, although the City does issue Use Permits for alcohol. She further noted there is nothing in State law or Lodi Municipal Code to prohibit the charter school from locating within any parameter of a business with an alcohol license; the sale of alcohol and the type of businesses selling alcohol, whether it be a liquor store or a restaurant selling alcohol in conjunction with serving food, are issues to take into account, along with the other issues of traffic control, noise, etc., in deciding if the proposed use of a charter school is compatible with the current uses. In response to the City Attorney's opinion, Mr. Hoffman added that the restaurants that serve alcohol are open for lunch and dinner but the charter school closes by 3:00 p.m. Mayor Chandler opened the hearing for public comment. Rocky Bianchi, a resident of Chianti Drive, stated he has concerns regarding the condition of the building; tenants have made improvements to the building which are not necessarily to code; the second floor windows are required to be obscured glass but currently there is clear glass; there is a sliding glass door on the second floor; the recent winter storm caused a roof leak at Impact Sports, which is adjacent to the proposed site; the attorney at the Planning Commission stated that a tie vote is a "no" vote; if the school is located near a business serving alcohol, parents may drink while waiting for their children; neighbors are concerned that students will be loitering; at the Planning Commission meeting, Dr. Grill stated students need to be signed in and out by the parents, but the parent handbook makes it seem students are able to sign themselves in and out of the school; the handbook also states that students' schedules vary, and staff is not responsible for students' behavior once they leave the campus; the Use Permit is requesting 40 to 50 parking spaces, which is going to be a challenge; and residents do not want parking in the neighborhood. Yvonne Sheffield, a resident on Chianti Drive, stated she has worked in public education in the past and is concerned about the alcohol issue; the rule seems contradictory; rules and laws should not be broken; and she would rather see the students somewhere with less temptation. In response to Mayor Chandler, Ms. Magdich clarified that the Business and Professions Code, which regulates the issuance of licenses by the ABC, states that it is discretionary to issue a license for alcohol sales within 600 feet of a school; it is not a prohibition. The Lodi Municipal Code does not have a prohibition either. In further response, Mr. Hoffman stated there have been conditions added to the project to address some of the concerns of neighbors - the second story windows will need to be obscured prior to occupancy, dropping students off in the alley is prohibited, loitering is prohibited - and failure to comply with these conditions can cause the Use Permit to be referred back to the Planning Commission; the Planning Commission can ask to check on the Use Permit at any time; and the permit can be revoked for violation of the conditions. Council Member Nakanishi stated this is a difficult situation, but the school board has made the decision and Council should not go against it. He suggested the citizens go to the LUSD school board with their concerns. In response to Mayor Pro Tempore Kuehne, Mr. Hoffman clarified the Planning Commission is able to review compliance with the Use Permit conditions at any time and that a particular time frame is not set forth in the permit. Susan Sheffield, a Chianti Drive resident, stated she was at the Planning Commission meeting but her question relates to a recent article in the Lodi News -Sentinel in which the charter school principal stated she wants the school at Bella Terra Plaza because it is near the bus lines. Ms. Sheffield questioned why the bus lines are needed if parents are dropping off their students. Ms. Sheffield also stated the attorney at the Planning Commission meeting informed them that a tie was the same as a "no" vote. She expressed concerned about the school, in not knowing how it is run; about the bus lines; about the lack of supervision of the students; and about the ages of children attending the school. 2 Ms. Magich confirmed that the three-to-three tie is a "no" vote, but the applicants are appealing that decision. Dr. Marcie Grill, principal of Rio Valley Charter School, spoke in favor of the Use Permit. She stated there are many misconceptions about charter schools and the type of children served. She stressed the school is not a continuation school; it is a publicly-funded charter school authorized for the past five years by LUSD and recently authorized for another five years; it offers Advanced Placement courses through Pacific Charter Institute; it gives students and families a choice and it is not her job to judge why students do not choose traditional school; and it serves students outside of the county as well. Dr. Grill further explained the school serves as a tutoring center and has 300 students, but half are home-schooled and come to the facility only to sign up for classes or for testing. She explained the school began looking fora new site as its facility was divided into two buildings at the old site, and the Chamber of Commerce suggested Bella Terra Plaza, which previously housed Venture Academy, a charter school operated through San Joaquin County. Dr. Grill stressed that Rio Valley Charter School wants to be part.of making Lodi better and would love to be part of the challenge of cleaning up the center. She further explained the school serves a diverse population, with many immigrant families and young mothers, and some of the students ride the bus. Dr. Grill noted'the.school has not recelved complaints of .fights or loitering in the last five years; they would be glad to be part of a tenant association and willing to be part of a discussion regarding hiring a security guard; she envisions Bella Terra Plaza as being family friendly; and Impact Sports is very supportive of the school moving to the center. She expressed confusion at the alcohol licenses being such an issue as the Children's Museum is located adjacent to bars, as opposed to restaurants, and additionally, the charter school students are gone before the restaurant patrons arrive in the evening. Dr. Grill explained parking is not a problem; on most days only 17 cars would be at the school, and for the once-a-month conference days, there would be a maximum of 22 to 25 cars. Shawn Nejad, representative for the property owner, spoke in favor of the Use Permit. He explained that he was out of the country at the time of the Planning Commission meeting, and the representative who had planned to attend was called away at the last minute for a family emergency. He stated he has managed the property for the last elght years. In response to complaints about the condition of the property, he stated they investigated passible mold issues at Bella Terra Plaza, but no mold was found; the second story windows will be fined and hewill submit copies of the bids; one tenant had trouble with the roof leaking following the recent rain, but it is being repaired; large centers will have problems but the center is in excellent condition; the massage parlor has been located in the center for five years and there have been no issues with the law; the property owner has 100 centers; and the site in question was previously a gym with a substantial number of clients, so the parking demand was greater with the previous tenant than with the proposed charter school. He submitted corroborating documents (filed). Council Member Mounce commented the neighbors of Bella Terra Plaza are unhappy, and they would not be unhappy if the center had been managed properly, as there are issues with the windows, doors, and leaky roofs. In response to Council Member Mounce, Mr. Hoffman stated the center was developed with four parking spaces per 1,000 feet of maintained space. Mr. Bianchi spoke again regarding the parking. He stated when the center first opened, there were approximately 200 parking spaces, but some are currently fenced off for use by Caltrans staff. He questioned the current number of parking spaces. He commented the maintenance of the buildings in the center is a very sensitive subject and that he does not feel the relationship between the property management and the neighborhood is as strong as it once was. There being no further public comments, Mayor Chandler closed the public hearing. Mayor Pro Tempore Kuehne commented he has sic children and his family has experienced a variety of different types of schools, including home, public, :private, charter, etc. He further stated his former spouse ran Venture Academy and no complaints were received from the tenants of iiella Tena Plaza. He noted Rio Valley Charter School is accredited and has been in operation for a while; and he is impressed with the information he received about the school, particularly the math lab, tutoring center, and dance and art programs. Mayor Pro Tempore 7 Kuehne stated he sees no problem with the use, as there was no problem with the previous charter school at that location. Council Member Mounce stated she fives close to Joseph Serna Charter School and there are traffic issues, so she appreciates the concern of neighbors. :Sheacknowledged the school is doing outstanding work. In response to Council Member Mounce's .question, Dr. Grill responded the school is already partially "homeless" as itwas already supposed to have taken possession of the proposed site; one of the two suites has already been leased so a, new tenant, so it has lost approximately 1,800 square Beet; and It is renting the remaining suite: 00 a temporary basis. at a higher rate. Council Member Mounce stated the neighbors were there first, so they must be kept happy. She further stated she is concerned about the parking and other problems and cannot support the Use Permit until these issues are resolved. Mayor Chandler stated he has no further comments other than to thank the Planning Commission and the people attending. Council Member Nakanishi stated he would vote against the school's Use Permit if the issue is brought back to Council for failure to maintain the Use Permit conditions. City Manager Schwabauer clarified that LUSD does not weigh in on the locations of charter schools, as that is the City's responsibility. He noted that every school that has applied for a Use Permit in a neighborhood has been appealed to Council, but once approved, the schools have not been a problem. There being no further public comments, Mayor Chandler closed the public hearing. Mayor Pro Tempore Kuehne made a motion, second by Mayor Chandler, to adopt Resolution No. 2016-23 approving the request of Bella Terra Plaza, LLC, for a Use Permit to allow the Rio Valley Charter School in an existing tenant space at 1110 West Kettleman Lane. VOTE: The above motion carried by the following vote: Ayes: Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: Council Member Mounce Absent: Council Member Johnson H. Communig 'ons H-1 Monthly Protocol Account Repo) Council Member Mounce made a motion, second by Mayor Pro Tempore Kuehne, to approve the Monthly Protocol Account Report through January 31, 2016. VOTE: The above motion carried by the following vote: Ayes: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: None Absent: Council Member Johnson Regular Calendar 1-1 Receive and File:CiVs Annual Financial Report (Fiscal. Y ar 0141 W M rias Gini O'Connell, LLP jChfi Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the 2014/15 Comprehensive Annual Financial Report (CAFR). Specific topics ofd€scussion included auditor's 8 opinion,, audit process, status of City's financial position, highlights of financial records, impact of Government Accounting Standards Board (GASB) 68, single audit, and management letter. Mr.. Ayers stated the CAFR is a report on the actual revenues and expenses that were recorded for last year. He offered his thanks. and congratulations to Financial Services Manager Ruby Paste, Supervising Accountant Den'ick Cotton, and Scott Brunner, of Macias, Gini & O'Connell, who served as the lead auditor. Mr. Ayers explained there were some difficulties putting together the information this year due to switching to: the Tyler Financial System, but the process will be much easier moving forward. In response to Council Member Mounce, Mr. Ayers agreed that the State mandated reimbursement of $963,000 was a big driver in the revenues coming in stronger. In response to Mayor Pro Tempore Kuehne, Mr. Ayers responded that the vehicle license. fee is the tax on license fees on vehicles registered within the City. City Manager Stephen Schwabauer clarified that is the annual fee on vehicles. Mr. Ayers noted the Transient Occupancy Tax was higher the past year, due in part to the Amgen tour, which is estimated to have brought in approximately $45,000. In response to the information relating to new GASB reporting regulations, Council Member Mounce commented that, some years ago, a board member from GASB interviewed the League of California Cities board members regarding the most prudent way to reflect pension liabilities, and the general consensus of the League representatives was they wanted it on financial statements; it adds a level of transparency. Mr. Ayers clarified this information has been included in the past, but it was listed in the notes, rather than on the face of the balance sheet. In response to Council Member Nakanishl, Mr. Ayers stated that, in the existing rate model, the City projects what expenses.should be, and CaIPERS has provided estimates of the City's rates through either 2020 or 2021; that is an hereasing expense. Council Member Nakanishi questioned if Lodi is in a better position than most cities, in relation to pension liability. Mr. Schwabsuer responded that he cannot speak to where other communities are but a community's unfunded pension liability will be tied to items that might not seem obvious; the obligation is referred to in CaIPERS terms as either a "high volatility city" or a "low volatility city." He explained that a low volatility city is a young city that does not have years of pension liabilities and that changed earlier to 3 percent at 50 for safety retirements. Lodi went to 3 percent at 50 in the early 2000s, so there are 9011 long-time employees whose pensions were paid at 2 1/2 percent at 50 who will now retire at 3 percent at 50. Lodi is an old community and went to 3 percent at 50 later, so it is probably on the higher end due to both of those things. Council Member Mounce commented that a report was done rating all California cities on pension liabilities and Lodi was rated in the top 100 - at 98, but still on the list. She stated the reason it is experiencing such a huge slope in pension liability through 2021 is due to the smoothing concept by which CaIPERS Is trying to fund its backlog of unfunded liability. She noted CaIPERS states its return on investment is 7 1/2 percent but it has not reached 4 percent. Council Member Nakanishi commented that all cities will have to handle this crisis; it is a matter of how Lodi handles it; and Lodi has been very prudent in financial management. Mr. Schwabauer agreed that Council has been fiscally responsible; the City has no lifetime medical or significant deferred liability. He further stated PERS is a deferred liability, that all cities in the State of California are dealing with and ultimately cities are counting on the State: to deal with the issue on a greater level than it has. He agreed the Council has made sound decisions that have put Lodi in a position where it will be able to deal with this issue. Council Member Mounce commented she is pleased the City is taking care of issues she has brought up in the past, and while she is still concerned with Information Technology disaster preparedness, she is pleased with the progress so far. She stated she is also pleased the City paid down $7.5 million of its bond debt this year. She noted the process of implementing new 0J software this year has been difficult and staff is doing an outstanding job. In response to Council Member Mounce's question regarding the outlook of the City's new software, Mr. Brunner stated, as indicated by Mr. Ayers, staff had some issues getting the information they needed, which delayed the completion of the CAFR, but it should be more timely in the future. Council Member Mounce commented she believes it is important for the public to know that when outside auditors do this type of work, it is important they have a sense of what our community is about, so she is supportive of taking advantage of the opportunity to stay with Macias, Gini & O'Connell, as well as having its Information Technology department review the City's new software. In response to Council Member Nakanishi, Mr. Ayers stated the undesignated $620,000 is available for Council discretion. In response to Mayor Pro Tempore Kuehne, Mr. Ayers stated a Request for Proposal process was used three years ago, and Macias, Gini & O'Connell was selected as the City's auditor at that point; the same firm was used for the prior eight years; the three-year contract is now ending, but there is the option of two one-year extensions. Alex Aliferas commented he is concerned because the stock market and other financial indicators are not looking good, and if the market continues at the current rate, then CalPERS is not going to meet the target return rate. He also expressed his desire to see pension reform. Mayor Pro Tempore Kuehne made a motion, second by Council Member Mounce, to receive and file the City's Annual Financial Report (Fiscal Year 2014/15) by Macias, Gini & O'Connell, LLP. VOTE: The above motion carried by the following vote: Ayes: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: None Absent: Council Member Johnson 1-2 Adopt Resolutions and Approve Documents and Actions Regardincl the Partial Advance Refunding of the 2007 Series A Wastewater Certificates of Participation: Mayor Chandler announced Item No. 1-2 is a joint action of the Lodi City Council and the Lodi Public Financing Authority. Deputy City Manager Jordan Ayers introduced the Wastewater Fund 2007 Series A refinancing team of financial advisor Alex Pop-Lazic, of Lamont Financial Services; bond counsel Chris Lynch, of Jones Hall; and underwriter Juan Fernandez, of JP Morgan. Mr. Ayers stated the bonds the City is working to refinance are the Wastewater 2007 Series A Certificates of Participation, which were issued in 2007 to refund some prior bonds, as well as create some new money for some improvements at the treatment plant. He further stated the original issue amount was $30.3 million with $29.3 currently outstanding, with payoff in 2037. He explained that of the outstanding amount, the City is able to refund approximately $21.4 million, with lower rates but the same payoff timeline; the preliminary estimates are for approximately $3.5 million in savings to the City's wastewater users. Council Member Nakanishi expressed his support. Council Member Mounce made a motion, second by Mayor Pro Tempore Kuehne, to adopt Resolution No. 2016-24 of the City Council approving documents and actions related to the refinancing of the 2007 Series A Wastewater Certificates of Participation and the City's related wastewater revenue installment obligation and to adopt Resolution No. LPFA2016-01 of the Lodi Public Financing Authority authorizing the issuance and sale of 2016 Refunding Wastewater Revenue Bonds to partially advance refund the 2007 Series A Wastewater Certificates of 10 Participation and the City's related wastewater revenue installment payment obligation, and approving related documents and official actions. VOTE: The above motion carried by the following vote: Ayes: Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Noes: None Absent: Council Member Johnson J. Ordinances - Nate K. A[f�0 nt1�e��t There being no further business to come before the City Council, the meeting was adjourned at 8:55 p.m. ATTEST: Pamela M. Farris Deputy City Clerk 11