HomeMy WebLinkAboutMinutes - March 1, 2017LODI CITY COUNCIL
REGULAR CITY COUNCIL MEETING
CARNEGIE FORUM, 305 WEST PINE STREET
WEDNESDAY, MARCH 1, 2017
C-1 Call to Order / Roll Call
The City Council Closed Session meeting of March 1, 2017, was called to order by
Mayor Kuehne at 6:02 p.m.
Present: Council Member Chandler, Council Member Johnson, Council Member Mounce,
Mayor Pro Tempore Nakanishi, and Mayor Kuehne
Absent: None
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
NOTE: Council Member Johnson participated via teleconference.
C-2 Announcement of Closed Session
a) Actual Litigation: Government Code §54956.9(a); One Case; James Smith v. City of Lodi,
U.S. District Court, Eastern District of California, Case No. 2:14-CV-01318-TLN-AC (CA)
b) Conference with Legal Counsel - Anticipated Litigation - Significant Exposure to Litigation
Regarding Homeowner Encroachment along Lodi Lake Nature Area, (APN 039-100-21),
Pursuant to Subdivision (b) of Section 54956.9, One Case; Pursuant to Government Code
54956.9(b)(3)(A) Facts, Due to Not Being Known to Potential Plaintiffs, Shall Not Be
Disclosed (PW)
c) Exposure to Litigation Pursuant to Government Code §§54956.9(d)(2) and 54956.9(e)(1);
One Case; Shall Not Be Disclosed, Due to Facts and Circumstances Not Yet Known to
Potential Plaintiffs (CA)
C-3 Adjourn to Closed Session
At 6:02 p.m., Mayor Kuehne adjourned the meeting to a Closed Session to discuss the above
matters. The Closed Session adjourned at 6:44 p.m.
C-4 Return to Open Session / Disclosure of Action
At 7:00 p.m., Mayor Kuehne reconvened the City Council meeting, and City Attorney Magdich
disclosed the following actions.
Items C -2a) and C -2b) were discussion and direction only with no reportable action.
Item C -2c) was discussion only with no reportable action.
A. Call to Order / Roll Call
The Regular City Council meeting of March 1, 2017, was called to order by Mayor Kuehne at
7:00 p.m.
Present: Council Member Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi,
and Mayor Kuehne
Absent: Council Member Johnson
Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo
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B. Presentations
B-1 National Nutrition Month Proclamation (CLK)
Mayor Kuehne presented a proclamation to Lodi Memorial Hospital Clinical Nutrition Supervisor
Chad Edwards proclaiming the month of March 2017 as "National Nutrition Month" in the City of
Lodi. Mr. Edwards stated the theme of this year's event is "Put Your Best Fork Forward," which
stresses that everyone has the ability, power, and tools in hand to make the right choices. He
further stated that Lodi Memorial Hospital will have a wellness fair for its employees next week.
C. Consent Calendar (Reading; Comments by the Public; Council Action)
Council Member Mounce made a motion, second by Council Member Chandler, 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 Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi,
and Mayor Kuehne
Noes: None
Absent: Council Member Johnson
C-1 Receive Register of Claims in the Amount of $5,072,597.43 (FIN)
Claims were approved in the amount of $5,072,597.43.
C-2 Approve Minutes (CLK)
The minutes of January 31, 2017 (Shirtsleeve Session), January 31, 2017 (Special Meeting),
February 1, 2017 (Regular Meeting), February 7, 2017 (Shirtsleeve Session), February 14, 2017
(Shirtsleeve Session), and February 14, 2017 (Special Meeting) were approved as written.
C-3 Approve Plans and Specifications and Authorize Advertisement for Bids for 2017
DeBenedetti Park Trail and Parking Lot Improvements (PW)
Approved plans and specifications and authorized advertisement for bids for 2017 DeBenedetti
Park Trail and Parking Lot Improvements.
C-4 Approve Plans and Specifications and Authorize Advertisement for Bids for 2017 Finance
Parking Lot Resurfacing Project (PW)
Approved plans and specifications and authorized advertisement for bids for 2017 Finance
Parking Lot Resurfacing Project.
C-5 Approve Plans and Specifications and Authorize Advertisement for Bids for
Lawrence Avenue Accessible Parking Improvements (PW)
Approved plans and specifications and authorized advertisement for bids for Lawrence Avenue
Accessible Parking Improvements.
C-6 Adopt Resolution Awarding Contract for Hutchins Street Square Holz Room Flooring
Replacement to Alex Business Group, Inc., dba Carpetland, of Stockton ($18,740) (PW)
Adopted Resolution No. 2017-25 awarding the contract for Hutchins Street Square Holz Room
Flooring Replacement to Alex Business Group, Inc., dba Carpetland, of Stockton, in the amount
of $18,740.
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C-7 Adopt Resolution Approving Memorandum of Understanding between City of Lodi and
San Joaquin Council of Governments for State/Federal Transit Planning and
Programming, and Authorizing City Manager to Execute Agreement (PW)
Adopted Resolution No. 2017-26 approving Memorandum of Understanding between City of Lodi
and San Joaquin Council of Governments for State/Federal Transit planning and programming,
and authorizing the City Manager to execute the agreement.
C-8 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement
for Ergonomic and Fire Suppression Upgrades for Lodi Electric Utility Operations Center
and SCADA Control Room with WMB Contractors, of Oakland ($300,000) (EU)
Adopted Resolution No. 2017-27 authorizing the City Manager to execute a Professional Services
Agreement for Ergonomic and Fire Suppression Upgrades for Lodi Electric Utility Operations
Center and SCADA Control Room with WMB Contractors, of Oakland, in the amount of $300,000.
C-9 Adopt Resolution Authorizing City Manager to Sign the Mutual Aid Agreement between
City of Lodi Fire Department and Cosumnes Community Service District Fire Department
(FD)
Adopted Resolution No. 2017-28 authorizing the City Manager to sign the Mutual Aid Agreement
between City of Lodi Fire Department and Cosumnes Community Service District Fire
Department.
C-10 Adopt Resolutions Authorizing City Manager to Execute Amended and Restated Joint
Exercise of Power Agreement Creating the San Joaquin County Regional Fire Dispatch
Authority and Appointing the Fire Chief and Alternate to Serve on the San Joaquin
Regional Fire Dispatch Authority Board of Directors (FD)
Adopted Resolution No. 2017-29 and No. 2017-30 authorizing the City Manager to execute
Amended and Restated Joint Exercise of Power Agreement creating the San Joaquin County
Regional Fire Dispatch Authority and appointing the Fire Chief and alternate to serve on the
San Joaquin Regional Fire Dispatch Authority Board of Directors.
C-11 Authorize City Attorney to Issue "Comfort Letter" to TSH, Inc., a California Corporation, in
Connection with the Purchase of Property Located at 210 West Pine Street, and 1 and
11 South Church Street (CA)
Authorized the City Attorney to issue "Comfort Letter" to TSH, Inc., a California Corporation, in
connection with the purchase of property located at 210 West Pine Street, and 1 and 11 South
Church Street.
C-12 Adopt Resolution Authorizing Destruction of Certain Citywide Records in Accordance with
the Government Code and the City's Records Management Policy (CLK)
Adopted Resolution No. 2017-31 authorizing the destruction of certain Citywide records in
accordance with the Government Code and the City's Records Management Policy.
C-13 Set Public Hearing for April 5, 2017, to Consider Adopting Resolution Reducing the
Amount of Low -Density Residential Growth Management Allocations Currently Available in
the Program (CD)
Set public hearing for April 5, 2017, to consider adopting resolution reducing the amount of Low -
Density Residential Growth Management Allocations currently available in the program.
C-14 Set Public Hearing for March 15, 2017, to Consider Adopting Resolution Certifying a
Mitigated Negative Declaration for the City of Lodi White Slough Water Pollution Control
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Facility Storage Expansion and Surface, Agricultural, and Groundwater Supply
Improvement Project (CD)
This item was removed from the Consent Calendar at the request of a member of the public.
Mike Lusk stated that the pond project at the White Slough Water Pollution Control Facility is
estimated to cost $3 million, 75 percent of which is to be paid by a State grant and the other
25 percent by the City of Lodi. He questioned how the City will pay for its 25 percent obligation,
as well as any preliminary engineering and survey costs, and whether that will go directly into the
wastewater budget or be absorbed afterwards through impact mitigation fees. He stated the pond
is being constructed for expansion of the City and the extra wastewater that will be imported into
the system; therefore, he believed it should be categorized as an impact fee. Mr. Lusk stated he
previously raised questions about the land used for this project and the potential conflict because
it is a general fund asset but a wastewater capital improvement project.
City Manager Schwabauer explained that the project is not being built to expand wastewater
capacity; rather, it is to handle existing treated wastewater, to reduce the need to discharge to the
Delta, and to create a saltwater curtain to address saltwater intrusion at the location.
Mr. Lusk stated his understanding of Proposition 218 is that the utility enterprises are to be
revenue neutral without conflicts with the general fund and he believed there was a conflict since
this land is a City general fund asset and the pond will be a wastewater fund asset.
Mr. Schwabauer stated the land has historically been used to dispose of treated wastewater by
the City without charge and the expectation is it would continue that way; therefore, he sees no
conflict. In further response, Mr. Schwabauer reiterated that the City's 25 percent responsibility for
the project will be paid out of the wastewater system, not by impact fees, because it is not related
to growth.
Council Member Mounce questioned if there will be rate increases in the future for this project, to
which Public Works Director Charlie Swimley stated that staff will return to Council in July after an
assessment of needs is completed and will bring forth a recommendation. Whatever the
recommendation, it will be in accordance with the ten-year plan. Council Member Mounce stated
that the public hearing on March 15, 2017, will be conducted while she is away on League
business and she highlighted her concern about the project, stating she believes no further
improvements should be done to the plant until the City meets with Snider Electric to discuss its
proposed energy- and cost-saving upgrades that could save the City half a million dollars a year.
She stated the City already missed an opportunity to meet with the company and to apply for
grants. Council Member Mounce stated she will submit her concerns in writing to the City Clerk to
be presented for the record at the public hearing.
Mr. Lusk further stated that the staff report for this item indicates there is no fiscal impact and he
questioned if that was a mistake. Mr. Schwabauer stated there is no fiscal impact at this time
because the recommended action is only to move forward with the environmental documentation.
Mayor Kuehne stated that the environmental documentation passed easily at the San Joaquin
Council of Governments level.
Council Member Chandler made a motion, second by Mayor Pro Tempore Nakanishi, to set
public hearing for March 15, 2017, to consider adopting resolution certifying a Mitigated Negative
Declaration for the City of Lodi White Slough Water Pollution Control Facility Storage Expansion
and Surface, Agricultural, and Groundwater Supply Improvement Project.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Chandler, Mayor Pro Tempore Nakanishi, and Mayor Kuehne
Noes: Council Member Mounce
Absent: Council Member Johnson
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C-15 Set Public Hearing for April 5, 2017, to Consider the Appeal of Wild Horses Four Wheel
Drive Regarding the Decision of the Public Works Director Relating to Construction
Application No. 20162787 at 1045 South Cherokee Lane, Lodi (CLK)
Set public hearing for April 5, 2017, to consider the appeal of Wild Horses Four Wheel Drive
regarding the decision of the Public Works Director relating to Construction Application
No. 20162787 at 1045 South Cherokee Lane, Lodi.
D. Comments by the Public on Non -Agenda Items
THE TIME ALLOWED PER NON -AGENDA ITEM FOR COMMENTS MADE BY THE
PUBLIC IS LIMITED TO FIVE MINUTES.
Public comment may only be made on matters within the Lodi City Council's jurisdiction
(Government Code Section 54954.3, Lodi City Council Protocol Manual Section 6.31). The
Council cannot take action or deliberate on items that are not on this agenda unless there
is an emergency and the need to take action on that emergency arose after this agenda
was posted (Government Code Section 54954.2(b)(2)). All other items may only be
referred for review to staff or placement on a future Council agenda.
Mike Lusk commented on the proposed budget sheets for the projected impact mitigation fees,
which were presented at the last meeting relating to water rates, stating that he felt the amounts
for the total possibility of impact fees that will be collected between now and 2019/20 were
minimal. One of the budget items listed was $2 million for the southwest water tank, and he
stated he believes this project is a result of increased construction in Lodi and should fall under
the impact mitigation fee categories. A majority of the new homes cannot be built in the next three
years, and he suggested that the fees associated with those developments be prepaid by
developers before the deadline and put into the impact mitigation fee accounts in anticipation of
next year's water rate discussion; otherwise, if the funding is not there to cover the $2 million
water tank project, he believed the project should be removed from the budget to reduce
expenditures.
Spencer Dayton announced that March is DeMolay Month and presented information relating to
the organization's "Ceremony of Light" (filed). He stated that DeMolay, which is a premier youth
organization, has been in Lodi for 98 years and he has been a member for the last seven years.
He requested the City of Lodi proclaim March as DeMolay Month. Mayor Kuehne referred the
matter to the City Clerk for handling.
Gary Ernest Troutman provided Council with his background, including employment, military, and
family history, and requested he be considered for the position of Deputy City Manager before
Council takes action on Item 1-2 to appoint Andrew Keys to the position.
Mayor Kuehne thanked Mr. Troutman for sharing his experiences and suggested he visit the
City's website for information on current job openings.
Theresa Johnson expressed complaints with the City's new utility billing system, stating that the
system has failed to record her payments, she was charged a late fee after being told the City
was not charging penalties at this time, and her mother's bills on the City's payment plan have
fluctuated drastically without a reasonable explanation, resulting in her being removed from the
plan by mistake. Because of these issues, she or her husband go into the Finance office every
month to try to resolve the problems, yet they continue to occur. She expressed frustration and
asked how she can correct the situation for both her and her mother's bills.
City Manager Schwabauer offered to meet Ms. Johnson at a time convenient for her to try to
resolve these issues and provided her with his contact information. He further made a general
statement that he hopes those who cannot find a resolution by working with the Finance
Department and its supervisors will contact him to see if he can address the problem at his level
of authority.
E. Comments by the City Council Members on Non -Agenda Items
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Council Member Mounce expressed disappointment that, during the transition from the old utility
billing system to the new one, customers were told there would be no late fees charged; however,
the system started penalizing customers. She stated there is confusion at the Finance
Department because some of the employees correct the mistake, while others do not. Council
Member Mounce stated that she believes there needs to be improved communication with
Finance Department staff to ensure consistency and continuity of service and that the City should
stick with its promise of not charging late fees if that is what it said it would do. City Manager
Schwabauer stated he would look into it. Further, Council Member Mounce thanked those
involved with the recent League of California Cities board meeting that was held in Lodi, stating
that the consensus of the attendees from across the state was that Lodi is a fine community. She
thanked Council Member Chandler for his assistance with the reception at the Wine & Visitors
Center; Cheese Central for its cheese tasting at the reception; Lodi Beer Company for the board
dinner; City Manager Schwabauer for his presentation to the board regarding the California Public
Employees Retirement System issue; and City Clerk Ferraiolo for coordinating various aspects of
the two-day event.
Mayor Kuehne stated that it has come to his attention there are concerns about bullying on the
City Council, which he takes seriously; therefore, he requested staff hire a specialist to
provide training for all Council Members by the end of this month or next since it has been over a
decade since this was last discussed.
Council Member Mounce requested that such training not occur until after tax season since this is
her busiest time.
Mayor Kuehne stated that the request was reasonable and could be accommodated.
Mayor Pro Tempore Nakanishi stated that he believes a session on bullying was unnecessary for
all Council Members to attend and instead it should be a meeting between the involved parties.
With regard to the incident at the last meeting, he stated he believed both Mayor Kuehne and
Council Member Mounce were equally responsible; therefore, those two individuals should
concentrate on working out their differences, which is more productive than requiring all five
Council Members to participate in training. He stated, however, that he would attend the
session if that is Council's direction.
Mayor Kuehne stated he will confer with the City Manager and Human Resources Manager to
determine the best approach. The training was one of a number of options, and he stated that he
wishes to be considerate of all thoughts presented.
F. Comments by the City Manager on Non -Agenda Items
None.
G. Public Hearings
G-1
Public Hearing to Consider Adopting Resolution Authorizing City Manager to Execute
Reimbursement Agreement RA -16-01 for Public Improvements for Rose Gate Unit No. 1,
Tract No. 3785, and Rose Gate Unit No. 2, Tract No. 3813 (PW)
Notice thereof having been published according to law, an affidavit of which publication is on file
in the office of the City Clerk, Mayor Kuehne called for the public hearing to consider adopting
resolution authorizing the City Manager to execute Reimbursement Agreement RA -16-01 for
Public Improvements for Rose Gate Unit No. 1, Tract No. 3785, and Rose Gate Unit No. 2, Tract
No. 3813.
Public Works Director Charlie Swimley provided a PowerPoint presentation regarding
Reimbursement Agreement RA -16-01 for Rose Gate Unit No. 1, Tract No. 3785, and Rose Gate
Unit No. 2, Tract No. 3813. Specific topics of discussion included reimbursements for APNs
027-04-001, 027-40-002, and 027-40-015; and improvements included in reimbursements for
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each parcel.
City Manager Schwabauer explained the purpose of a reimbursement agreement is to provide a
benefit to others who will ultimately gain from the improvements in the future. In this case, the
agreement will allow the developer to charge a future developer of the undeveloped parcels for
the improvements made during the course of this project. Costs for this project do not fall to the
City.
Mayor Kuehne opened the public hearing for public comment.
There being no public comments, Mayor Kuehne closed the public hearing.
Council Member Mounce made a motion, second by Council Member Chandler, to adopt
Resolution No. 2017-32 authorizing the City Manager to execute Reimbursement Agreement
RA -16-01 for Public Improvements for Rose Gate Unit No. 1, Tract No. 3785, and Rose Gate Unit
No. 2, Tract No. 3813.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi,
and Mayor Kuehne
Noes: None
Absent: Council Member Johnson
G-2 Public Hearing to Consider Introducing Ordinance Amending Lodi Municipal Code Chapter
13.20 - Electrical Service - by Repealing and Re -Enacting Article III, "Rates," in Its Entirety
(EU)
Notice thereof having been published according to law, an affidavit of which publication is on file
in the office of the City Clerk, Mayor Kuehne called for the public hearing to consider introducing
ordinance amending Lodi Municipal Code Chapter 13.20 - Electrical Service - by repealing and
re-enacting Article III, "Rates," in its entirety.
City Manager Schwabauer stated that this item is being continued to the Regular Council meeting
of April 5, 2017.
Council Member Mounce made a motion, second by Council Member Chandler, to open and
continue the public hearing to April 5, 2017, to consider introducing ordinance amending Lodi
Municipal Code Chapter 13.20 - Electrical Service - by repealing and re-enacting Article III,
"Rates," in its entirety.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi,
and Mayor Kuehne
Noes: None
Absent: Council Member Johnson
H. Communications - None
I. Regular Calendar
1-1 Provide Direction Regarding Lawrence Park Tree Impacts Associated with the Lockeford
Street Improvement Project (PW)
This item was pulled from the agenda.
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1-2 Ratification of Employment Agreement Entered into Between City Manager
Stephen Schwabauer and Deputy City Manager/Internal Services Director Andrew C. Keys
(CM)
City Manager Schwabauer provided a presentation regarding the ratification of the employment
agreement of Deputy City Manager/Internal Services Director Andrew C. Keys. He stated that the
City follows the legal process for all of its job openings, stating that this position was posted and
open for a specified period, after which the application period was closed. Staff then selected
candidates from those who applied during the publicly -posted timeframe and initiated a several -
months -long interview process. Mr. Schwabauer stated that he believes staff selected the
individual who appears to be most qualified. He reported that the contract calls for a salary of
$158,000 with a 3 percent increase after a positive review following one year. Mr. Keys comes
from the City of Elk Grove, where he held a series of increasingly responsible positions, including
Interim Deputy City Manager, and has the skills and capacity to handle the duties and
responsibilities of this position.
Council Member Mounce expressed opposition to the six-month severance clause in the contract,
stating that the City should not pay salary and health benefits for someone who has been
terminated from employment. She believed these agreements have lucrative deals in them, and
in light of the California Public Employees Retirement System (Cal -PERS) situation, she cannot
support them. She disagreed with the argument that these clauses are standard in the industry.
Mayor Pro Tempore Nakanishi stated that Council Member Mounce has a strong argument
against the severance clause; however, he also understands there should be some level of
guarantee for a new employee in a high-level position that is leaving another employer to come
work for the City that he will not be let go shortly after arriving.
Mr. Schwabauer stated, in his experience, cities that hire people at the executive management
level will typically include a severance package in the agreement; although, there are varying
types of packages with some as long as 18 months. He stated that the City's package is only paid
if the person does not get another job, it is paid monthly, and it stops when they find other
employment. He further explained the history behind the severance package concept, stating that
it started with the city manager form of government, because previously, high-level positions
would change when political appointments and direction changed. This clause provides some
form of protection against that.
City Attorney Magdich pointed out that the agreement states the severance would terminate upon
the employee securing new employment and it only takes effect if terminated without cause.
Council Member Mounce stated she works in a professional office and that employees with a
Certified Public Accounting license are not offered severance packages. She stated that she
believes government as a whole has gotten fat with lucrative retirements and severance
packages, which are unheard of in the private sector. She stated she could support such a clause
if it were three months instead of six because she believed individuals in high-level positions
should be properly set up with money and a fallback plan should they lose their job. She assured
Mr. Keys that her opposition to this matter was not against him; rather, it was against the
severance clause.
Andrew Keys expressed his excitement for the opportunity to come to Lodi and thanked
Mr. Schwabauer, Human Resources Manager Adele Post, and the recruitment team he worked
with during the interview process. He stated that he read Council Member Mounce's article
regarding the League of California Cities meeting in Lodi and he is eager to join a city that has the
exposure and leadership with the League to take on Cal -PERS. Mr. Keys stated that he is aware
of the challenges ahead and is ready to tackle them and move Lodi forward, adding that he has
worked on many of the issues brought up during the meeting.
Mayor Pro Tempore Nakanishi informed Mr. Keys that this is a key position in the City because of
the Cal -PERS issue and that his predecessor started this journey with sound recommendations
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and he will need to continue down that path. He stated he was impressed with Mr. Keys'
experience.
Council Member Chandler made a motion, second by Mayor Pro Tempore Nakanishi, to ratify the
employment agreement entered into between City Manager Stephen Schwabauer and Deputy
City Manager/Internal Services Director Andrew C. Keys.
VOTE:
The above motion carried by the following vote:
Ayes: Council Member Chandler, Mayor Pro Tempore Nakanishi, and Mayor Kuehne
Noes: Council Member Mounce
Absent: Council Member Johnson
J. Ordinances - None
K. Adjournment
There being no further business to come before the City Council, the meeting was adjourned at
8:02 p.m.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
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