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HomeMy WebLinkAboutMinutes - March 15, 2017LODI CITY COUNCIL REGULAR CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET WEDNESDAY, MARCH 15, 2017 C-1 Call to Order / Roll Call - N/A C-2 Announcement of Closed Session - N/A C-3 Adjourn to Closed Session - N/A C-4 Return to Open Session / Disclosure of Action - N/A A. Call to Order / Roll Call The Regular City Council meeting of March 15, 2017, was called to order by Mayor Kuehne at 7:00 p.m. Present: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Absent: Council Member Mounce Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Presentations B-1 Lodi Lake Nature Area Docents - 30 Years on the Trail (PRCS) Mayor Kuehne presented a certificate of recognition to Julie Giometti-Wahl, Docent Coordinator, in honor of the Lodi Lake Nature Area Docents' 30 -year anniversary. Docent Member Norm Page encouraged support for speed boat controls to ensure Pigs Lake does not continue to erode, which would negatively effect area fresh water animals. B-2 Fix a Leak Week Proclamation (PW) Mayor Kuehne presented a proclamation to Kat Garcia, Compliance Engineer, proclaiming March 20 to 26, 2017, as "Fix a Leak Week" in the City of Lodi. Ms. Garcia announced that the City will host a "Water Conservation and You" event at the Surface Water Treatment Facility on March 23, 2017, which will include information on water leaks and rebate programs and offer facility tours. Anyone interested was encouraged to contact (209) 333-6829 to reserve a spot as space is limited. B-3 Arbor Day Proclamation (PRCS) Mayor Kuehne presented a proclamation to Tree Lodi representative Gordon Schmierer proclaiming Saturday, April 1, 2017, as Arbor Day in the City of Lodi. Mr. Schmierer thanked Council, staff, and the Parks, Recreation, and Cultural Services Department for its continued support. The Arbor Day event will feature tree planting demonstrations and educational literature. B-4 DeMolay Month Proclamation (CLK) Mayor Kuehne presented a proclamation to Spencer Dayton, a representative of the local DeMolay Chapter, proclaiming March 2017 as "DeMolay Month" in the City of Lodi. Mr. Dayton announced that members were present at the meeting from as far away as Tracy, Woodland, and South San Francisco. Mitchell Walsh, representing Northern California DeMolay, explained that the organization's purpose is the improvement of young men with hands-on training and that 1 DeMolay helps members be better men, set their own goals, and pursue opportunities through their own efforts. B-5 Presentation by San Joaquin Regional Transit District (CLK) Donna DeMartino, Chief Executive Officer with San Joaquin Regional Transit District (RTD), provided a PowerPoint presentation regarding RTD. Specific topics of discussion included overview of RTD, ridership demographics, RTD accomplishments, County Transportation Center, Downtown Transit Center, Mall Transfer Station, Hammer Triangle Station, Regional Transportation Center, Metro Express, electric bus fleet, Vanpool Program, proposed Hopper Service, awards and recognition, value to Lodi community, and community outreach. In response to Mayor Pro Tempore Nakanishi, Ms. DeMartino stated that ridership is decreasing across the county, which could be the result of gas prices or the ease in obtaining drivers' licenses. She stated that the rapid transit routes appear to be drawing in more riders, most likely because it is a 10 to 15 minute service. She stated that RTD is always looking for ways to improve service and increase ridership, such as adding the vanpool program or signing with Uber and Lyft for "last mile" rides. Council Member Johnson reported that he serves as the Chairperson of the San Joaquin County Rail Commission, which addresses Altamont and commuter express issues to encourage train travel. He explained there have been disagreements the last three to four years over funding, which unfortunately spilled over to RTD and the Rail Commission, until Ms. DeMartino and Stacey Mortensen with the Rail Commission forged a collaborative effort to resolve the situation. They were able to obtain funding and put forth programs to be more efficient. He expressed appreciation to both for their collaboration and cooperation. C. Consent Calendar (Reading; Comments by the Public; Council Action) Council Member Johnson made a motion, second by Mayor Pro Tempore Nakanishi, 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 Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce C-1 Receive Register of Claims in the Amount of $3,064,598.86 (FIN) Claims were approved in the amount of $3,064,598.86. C-2 Approve Minutes (CLK) The minutes of February 15, 2017 (Regular Meeting), February 21, 2017 (Special Meeting), February 21, 2017 (Shirtsleeve Session), and February 28, 2017 (Shirtsleeve Session) were approved as written. C-3 Approve Specifications and Authorize Advertisement for Bids for 2017 Pavement Crack Sealing Project, Various Locations (PW) Approved specifications and authorized advertisement for bids for 2017 Pavement Crack Sealing Project, Various Locations. C-4 Approve Specifications and Authorize Advertisement for Bids for 2017 GrapeLine Bus Stop Accessibility and Shelter Improvements (PW) 2 Approved specifications and authorized advertisement for bids for 2017 GrapeLine Bus Stop Accessibility and Shelter Improvements. C-5 Adopt Resolution Authorizing City Manager to Accept a Donation from the Lodi Police Partners' Foundation for Purchase of a Vehicle and Appropriating Funds ($20,988.62) (PD) Adopted Resolution No. 2017-34 authorizing the City Manager to accept a donation from the Lodi Police Partners' Foundation for purchase of a vehicle and appropriating funds in the amount of $20,988.62. C-6 Adopt Resolution Authorizing City Manager to Negotiate and Purchase Three Digger/Derrick Trucks from Altec Global Rental Company, Inc., of Dixon, and Appropriating Funds ($705,100) (EU) Adopted Resolution No. 2017-35 authorizing the City Manager to negotiate and purchase three digger/derrick trucks from Altec Global Rental Company, Inc., of Dixon, and appropriating funds in the amount of $705,100. C-7 Accept Improvements Under Contract for 2016 GrapeLine Bus Stop Accessibility and Shelter Improvements (PW) Accepted improvements under the contract for 2016 GrapeLine Bus Stop Accessibility and Shelter Improvements. C-8 Adopt Resolution Authorizing City Manager to Execute Five -Year Full -Service Alarm Installation and Maintenance Agreement for Lodi Public Library with Alamo Alarm Company, Inc., of Woodbridge ($28,162) (LIB) Adopted Resolution No. 2017-36 authorizing the City Manager to execute five-year full-service alarm installation and maintenance agreement for Lodi Public Library with Alamo Alarm Company, Inc., of Woodbridge, in the amount of $28,162. C-9 Adopt Resolution Authorizing City Manager to Execute Lodi Lake Boat House Concession Agreement with Headwaters Kayak Shop (PRCS) Adopted Resolution No. 2017-37 authorizing the City Manager to execute Lodi Lake Boat House Concession Agreement with Headwaters Kayak Shop. C-10 Adopt Resolution Terminating Fiscal Year 2016-2017 Agreement for Contracted Police Services with Lodi Unified School District (LUSD) Effective March 15, 2017, and Further Authorizing City Manager to Execute a School Resource Officer Memorandum of Understanding with LUSD for Four School Resource Officers for the Period March 15, 2017 - June 30, 2017 ($301,410) (PD) Adopted Resolution No. 2017-38 terminating Fiscal Year 2016-2017 Agreement for Contracted Police Services with Lodi Unified School District (LUSD) effective March 15, 2017, and further authorizing the City Manager to execute a School Resource Officer Memorandum of Understanding with LUSD for four School Resource Officers for the period March 15, 2017 through June 30, 2017, in the amount of $301,410. C-11 Adopt Resolution Approving Amendments to City of Lodi Administrative Policy and Procedure Manual on Drug and Alcohol Testing (CM) This item was removed from the Consent Calendar at the request of Council Member Chandler for discussion purposes. In response to Council Member Chandler, Human Resources Manager Adele Post stated there has been no guidance from the State regarding medical and recreational marijuana and what 3 constitutes being under the influence. She stated the City's policy is to perform pre-employment testing and testing of current employees based on a random test or post accident. She further stated the City has a zero tolerance policy should someone test positive and that staff would take immediate action. She explained this policy is based on federal regulations, which state it is against the law to be under the influence of marijuana. City Attorney Magdich added that this policy specifically concerns the Department of Transportation, in which certain positions are subject to random drug and alcohol testing subject to current legislation. She stated that being under the influence of marijuana and impaired when working is still illegal under this policy, which is no different than being impaired from alcohol, and any employee caught doing so would be subject to testing and disciplinary action. Council Member Chandler stated he believes the recreational marijuana issue has too many gray areas and many agencies do not know how to handle it. Council Member Johnson made a motion, second by Mayor Pro Tempore Nakanishi, to adopt Resolution No. 2017-40 approving amendments to City of Lodi Administrative Policy and Procedure Manual on Drug and Alcohol Testing. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce C-12 Adopt Resolution Setting the City of Lodi Electric Utility's Energy Efficiency Program 10 - Year Target (EU) Adopted Resolution No. 2017-39 setting the City of Lodi Electric Utility's Energy Efficiency Program 10 -year target. C-13 Authorize Mayor to Provide Letter of Support for the Lodi District Chamber of Commerce's Application for the CommunityWlNS Grant Program (CD) This item was removed from the Consent Calendar at the request of Mayor Kuehne for discussion purposes. Mayor Kuehne asked for an explanation for the change of philosophy regarding Asset Based Community Development (ABCD) in addressing community issues. Neighborhood Services Manager Joseph Wood explained that the routine for cities and jurisdictions has been to address issues on a needs basis by looking at what is wrong within a community and creating a program to address the deficiency. ABCD is based on a positive outlook by focusing on a community's strengths and empowering residents to make changes important to them in a collaborative effort. The City partnered with the Chamber of Commerce and held a two-day ABCD workshop, at which 45 people attended representing a cross section of the community, and six community projects resulted from the effort. The City's role is hands off so that residents can take the lead, but the City will provide resources and assistance. Mr. Wood explained that the grant application is the next step in establishing a neighborhood leadership academy similar to the Chamber's Leadership Lodi program. Council Member Chandler made a motion, second by Council Member Johnson, to authorize the Mayor to provide letter of support for the Lodi District Chamber of Commerce's application for the CommunityWlNS Grant Program. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce 4 C-14 Receive Report Regarding Final Costs for the November 8, 2016, General Municipal Election (CLK) Received report regarding final costs for the November 8, 2016, General Municipal Election. 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. Parks, Recreation, and Cultural Services Director Jeff Hood introduced the new Deputy Director, Cathi DeGroot, who was selected as the top candidate from a national recruitment. He stated that Ms. DeGroot has an excellent record of increasing participation in recreational programs as well as departmental revenue. Ms. DeGroot thanked Mr. Hood for the vote of support and stated she looks forward to serving the residents of Lodi. Kathryn Siddle with Bike Lodi stated that the group undertook an effort to provide new bicycle racks for School Street and worked with Assistant Engineer Dorothy Kam to learn about sidewalks, tree wells, and best locations. Ms. Siddle thanked Dave Kirsten and Sam Rhemke for underwriting the bike racks, as well as Public Works staff, including Public Works Director Charlie Swimley, Transportation Manager Paula Fernandez, Transportation Planner Julia Tyack, and Assistant Engineer Kam. Ms. Siddle announced that Bike Lodi was donating six bicycle racks for School Street and unveiled an example of one of the racks. She stated five will be similar to the one presented and the sixth rack will be slightly different and placed at the Post Office. E. Comments by the City Council Members on Non -Agenda Items Mayor Kuehne stated that several months ago residents were experiencing issues with mailboxes and, due to the concern, he met with the postal inspector for the area, after which a public meeting was held at the Library. As a result of this effort, he reported that Lodi will be the first in the nation to have a post card mailed to residences explaining the pilot program to address postal theft and vandalism. Cluster mail boxes will be fitted with a red sticker listing contact information to report such incidents. The postal inspector indicated other California cities will be approached with the program because more citizens are voicing concerns over theft of mail and vandalism of mail boxes. F. Comments by the City Manager on Non -Agenda Items None. G. Public Hearings G-1 Public Hearing 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 (CD) 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 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. City Planner Craig Hoffman provided a PowerPoint presentation regarding certifying a Mitigated 5 Negative Declaration for the White Slough Water Pollution Control Facility Storage Expansion and Surface, Agricultural, and Groundwater Supply Improvement Project. Specific topics of discussion included vicinity map and project detail. In response to Mayor Pro Tempore Nakanishi, Mr. Hoffman stated this item addresses the environmental documentation for the project and explained that, if it were not for the grant component of this project, the City would construct the improvements without this process; however, State and federal funding requires the environmental documentation element. In response to Mayor Pro Tempore Nakanishi, City Manager Schwabauer explained the history behind the project, stating that wastewater is an expensive product to dispose and if the City can eliminate the need to discharge it, as well as the effect treated water has on the environment, it will save ratepayers money in the long run. For this particular project, the majority of the money is coming from a federal grant, instead of ratepayers. Mr. Schwabauer further explained that this water cannot be used for the power plant on site because that water must come straight from treatment. Council Member Chandler stated the pond will help diminish groundwater pumping and questioned if it will increase water supply and what type of pond it is. Public Works Director Charlie Swimley stated there will be a combination of benefits with the pond, including equalized storage and better utilization of recycled water supply. He stated that, during times of non - irrigation, water could be stored. Another benefit is the element of recharge that will assist the City in complying with the Groundwater Sustainability Act by creating a salinity barrier. In response to Mayor Pro Tempore Nakanishi, Mr. Swimley agreed that this facility would allow the City to more efficiently utilize the water source, but the cost of getting treated water back into town would be costly. He stated that recycled water is a commodity that will become more valuable in the future and that this facility will help the City manage it better. Mayor Kuehne opened the public hearing for public comment. Mike Lusk stated he understands this is an ongoing matter and there will be further discussion on the final project; however, he suggested the City's $750,000 commitment for this project could have been delayed a few months into the 2017-18 calendar year to ease the burden on citizens during the rate increase. He stated he would still like a discussion regarding the water and wastewater enterprise funds and how they relate to Proposition 218 because he believes there is co -mingling of funds with a wastewater capital improvement project on a general fund asset. There being no further public comments, Mayor Kuehne closed the public hearing. Mayor Pro Tempore Nakanishi made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-41 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, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce G-2 Public Hearing to Consider Resolution Adopting Pre -Approved Proposition 218 Consumer Price Index -Based Annual Adjustment to Rates for Solid Waste Collection (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 resolution adopting pre -approved Proposition 218 Consumer Price Index -based annual adjustment to rates for solid waste collection. 6 Public Works Director Charlie Swimley provided a PowerPoint presentation regarding rates for solid waste collection. Specific topics of discussion included contract, Consumer Price Index (CPI) rate adjustment factor, County gate fees, and example rate changes. Mr. Swimley added that Waste Management has been a strong partner in the community and provides excellent customer service. In response to Mayor Pro Tempore Nakanishi, Mr. Swimley explained that the Shirtsleeve Session earlier in the week was in regard to Waste Management's program to improve the rate at which its recycling and green waste cans are used appropriately because Lodi currently has a 46 percent improper usage rate of those containers, which makes it more costly to comply with State law. In response to Mayor Pro Tempore Nakanishi, Alex Oseguera with Waste Management explained that Waste Management utilizes the north county landfill because of Lodi's contract with that facility and there is also a requirement to use that facility in its franchise agreement with the City. Council Member Johnson stated this automatic adjustment goes back to the agreement made with Waste Management in 2009 and suggested the City thoroughly review the franchise agreement to analyze issues such as whether or not to use the north county landfill or if basing rate increases off of the San Francisco -Oakland -San Jose consumer price index is appropriate. City Manager Schwabauer stated staff will bring the issue back to Council for discussion. Mayor Kuehne opened the public hearing for public comment. Spencer Dayton pointed out this is another rate increase among many and that each of the incremental increases add up and hurt those on low and fixed incomes. He recognized there is a contract in place but pointed out it can be renegotiated to avoid annual increases. There being no further public comments, Mayor Kuehne closed the public hearing. Mayor Pro Tempore Nakanishi stated he is typically opposed to rate increases for the utilities, but in this case the City entered into a contract with Waste Management, it does a fine job in the community, and the City should honor its contract obligation. In response to Mayor Pro Tempore Nakanishi, City Attorney Magdich confirmed that the City is subject to the contract obligation at this time, but when the contract terminates in 2031, it can renegotiate the terms. She pointed out that Council's decision to have the franchise in effect for an extended period of time was based on the economic benefits to the community. In response to Mayor Kuehne, Management Analyst Rebecca Areida-Yadav stated the most recent contract was approved in 2008 with an extension approved in 2010 that extended the term to 2031, which was a result of Waste Management's contribution toward the Grape Bowl. Council Member Johnson pointed out that, during the discussion to renegotiate the contract, Council was also faced with the issue of whether or not to move to another company and, at that time, a new vendor made no sense. He stated the City has a positive relationship with Waste Management and that starting all over with a new company would be a mistake. Council Member Johnson made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-42 adopting the pre -approved Proposition 218 Consumer Price Index -based annual adjustment to rates for solid waste collection. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce H. Communications - None 7 1. Regular Calendar 1-1 Adopt Resolution Authorizing City Manager to Execute Third Phase Agreement for Renewable Energy Power Purchase Agreement with Northern California Power Agency (EU) Electric Utility Director Elizabeth Kirkley provided a PowerPoint presentation regarding the Antelope Solar Project. Specific topics of discussion included solar price trends, Renewables Portfolio Standard (RPS) status - current, and RPS status - Antelope. Ms. Kirkley pointed out that the City is in compliance with the 33 percent requirement for renewable energy resources. Mayor Kuehne stated that the cost of solar is continuing to trend downward and questioned if the City was buying too early on this project or if it should wait until the margin is better. Ms. Kirkley stated that the market is saturated as to where to locate a large-scale solar project and there is still a ways to go on the project. Her recommendation was to move forward before prices change that could negatively effect the project. In further response, Ms. Kirkley stated there are no geothermal opportunities at this time, but Northern California Power Agency (NCPA) is continually looking for renewable energy resources. In response to Council Member Chandler, Ms. Kirkley stated that on the Astoria project the City takes only what is generated and does not pay anything in addition to usage. City Manager Schwabauer stated that the City is obligated in the power purchase agreement to take a minimum amount of power because NCPA is funding the construction of an asset and it included a built-in reliance on the output contract with the buyer. Mr. Schwabauer stated there is an economy of scale with regard to solar because the state is forcing utilities to move toward solar and it will continue to get less expensive as more money goes into it. In response to Mayor Pro Tempore Nakanishi, Ms. Kirkley stated the initial requirement was 33 percent energy from renewable resources by 2020, but a 50 percent requirement has been instituted. Mr. Schwabauer stated that the City is able to comply now because of its historic carryover and the green power it purchased before the requirements went into effect. In further response, Mr. Schwabauer stated that, until solar power becomes competitive with other power production, this policy will drive Lodi's electric prices up. Unfortunately, power prices on the west coast of the country are higher because legislation prohibits using coal as an energy source, while the east coast can. He stated that every time voters support an environmental policy, it is a vote for more regulations and higher prices. Ms. Kirkley added that hydro power is also prohibited, which could change in the future if the current push for legislation to change the renewable requirement to 100 percent passes. In response to Paul Zarkas, Ms. Kirkley explained legislation currently requires that 50 percent of the utility's energy supply come from renewable sources. Mr. Zarkas questioned if it was possible to put forth a community investment to create a plant that would help meet the requirement, to which Ms. Kirkley replied that such a project would be too small and too expensive to reach the renewable requirement because it would not be on a City scale. She stated that NCPA is attempting to pool agencies together for large-scale community solar projects and is finding contractors to provide cheaper prices with multiple small projects. In response to Mayor Kuehne, Ms. Kirkley and Mr. Schwabauer stated that the City at one time was considering a solar farm at the Lodi Energy Center but passed on the project. Ms. Kirkley stated that typically six to seven acres per megawatt is necessary for a solar farm and, to give an example of size, the Anetlope project is a 17 megawatt plant. Council Member Chandler made a motion, second by Council Member Johnson, to adopt Resolution No. 2017-43 authorizing the City Manager to execute Third Phase Agreement for Renewable Energy Power Purchase Agreement with Northern California Power Agency. VOTE: The above motion carried by the following vote: 8 Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce RECESS At 8:35 p.m., Mayor Kuehne called for a recess, and the City Council meeting reconvened at 8:44 p.m. 1-2 Adopt Resolution Approving Fiscal Year 2016/17 Mid -Year Budget Adjustments and Authorizing the Contribution and Appropriation of Enterprise Funds and Special Revenue Funds to the PERS Rate Stabilization Fund (CM) Supervising Budget Analyst Susan Bjork provided a PowerPoint presentation regarding the 2016/17 Mid -Year Budget Review. Specific topics of discussion included General Fund overview, General Fund reserve status, departmental variances, Electric Utility, Water utility, self insurance, employee benefits, California Public Employees Retirement System (Cal -PERS) Rate Stabilization Fund, and action requested. In response to Mayor Kuehne, Mr. Schwabauer explained that Cal -PERS acknowledges its funding calculation was in error. The discount earnings rate, which is an entity's discounted payment to Cal -PERS on an amount Cal -PERS assumes it needs going forward, was assumed at 7.5 percent. Cal -PERS dropped the rate to 7 percent, which in turn increased Lodi's unfunded liability. Information provided to entities by Cal -PERS demonstrates how to calculate that drop over the next five years, which for Lodi indicates $7 million more a year than expected. Mr. Schwabauer stated that $7 million represents 40 percent of the City's payroll and that the public needs to understand that the Cal -PERS effort to shore up its fiscal health will hurt City services. He stated that the Cal -PERS increase is not an issue of politics or pro or anti union, but a matter of basic math because this and no other community can absorb a hit of 40 percent to its payroll. This is the reason for creating a Cal -PERS stabilization fund; to put the City in a situation where it can have excess revenue and provide a path to discuss with the community how to deal with the Cal -PERS crisis as it comes full force. He stated the City will be able to close the budget next year, but it will get incrementally worse year after year and it will not stop at the five-year projection. Mr. Schwabauer stated it is imperative something be done to set a buffer for this community to seriously discuss other alternatives than paying the bill. In response to Council Member Chandler, Mr. Schwabauer confirmed that the amounts listed in the PowerPoint will be committed from each enterprise account into the Cal -PERS stabilization fund. He further stated that a mid -year contribution into the stabilization fund will be dependent upon whether or not the City has another banner year such as this one; although, he does not anticipate that happening. Ms. Bjork pointed out that the budget end result will be unknown until the audit is complete, which will be in December. Mayor Pro Tempore Nakanishi stressed the importance of putting money into the Cal -PERS stabilization fund, adding that cities that prepare will be in a better position in the future; otherwise, they will be forced to make drastic decisions. In response to Mayor Pro Temopre Nakanishi, Mr. Schwabauer stated the self-insurance fund is funded through contributions from departments because they are each assessed a share of responsibility and pay on an annual basis. He stated he would get back to Council on the exact dollar amount that should be in that fund versus the current balance of $12 million. Mike Lusk stated that, when the sales tax initiatives for Parks and Public Safety were first presented to Council, it was partially for hiring additional police officers and partially for addressing the Cal -PERS debt, which will continue to increase incrementally every year. He stated he believes it would behoove the City to put forth a 1/2 percent sales tax to address the Cal -PERS crisis, which would bring in $4 million. He expressed opposition to inner City fund transfers because citizens ultimately make up the difference in rates. A sales tax increase in Lodi would still keep Lodi's sales tax lower than most nearby cities and it would ensure everyone is 9 contributing to the Cal -PERS debt. Mr. Lusk questioned the reason for the $5.4 million transfer in the water fund, to which Ms. Bjork responded the money was transferred from user accounts into the capital account, resulting in a net of nothing. It is an accounting function of where the money comes into and from where it is spent. Mr. Schwabauer added that the money stays in the account; it only moves from the operations side to the capital side. Council Member Chandler disagreed with Mr. Lusk's comment that a Cal -PERS component was rolled into the recent sales tax measure attempt, adding that the public was assured the money was not going toward the pension issue. He stated he believes a sales tax measure would fail by an even larger measure than the last one if the public was informed the 1/2 percent sales tax was for Cal -PERS because the City already received an enormous amount of negative feedback on that. Council Member Johnson disagreed with Council Member Chandler, stating that Mr. Lusk's suggestion may be worth looking into because it is imperative a solution be found to address the Cal -PERS problem; otherwise, it will ultimately devastate the City. He stated the public's concern is primarily against rate increases, but citizens should start realizing that the Cal -PERS issue will completely shatter the City if something is not done. Mayor Pro Tempore Nakanishi cautioned against raising the sales tax because other communities that have done so will have nowhere else to go if the situation worsens other than eliminating services or going bankrupt. He stated he prefers to leave the sales tax rate as an option until the time the City is forced to cut police and fire services or go bankrupt. Council Member Johnson disagreed with Mayor Pro Tempore Nakanishi, stating that waiting until the worst moment is already too late. He stated he believes it is time to make a determination on what can be done and what people are willing to pay because the Cal -PERS solution is to smooth out the problem and move it further down the road. In response to Council Member Johnson, Mr. Schwabauer confirmed that the City is competing against a moving target created by Cal - PERS because of its rolling calculations and new escalators. He stated it is likely three years from now the City will be laying off employees if nothing changes; afterward, even greater cuts will need to be made. Council Member Johnson made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-44 approving Fiscal Year 2016/17 mid -year budget adjustments and authorizing the contribution and appropriation of Enterprise Funds and Special Revenue Funds to the PERS Rate Stabilization Fund. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: Council Member Mounce 1-3 Presentation from Lodi Committee on Homelessness (CD) John Ledbetter with the Homeless Solutions Committee provided a PowerPoint presentation regarding the Committee on Homelessness' Report on Homelessness in Lodi. Specific topics of discussion included beginnings, progress, accomplishments, Short Term Solutions Sub - Committee accomplishments and goals, Long Term Solutions Sub -Committee accomplishments and goals, goals of the Committee, and credits. Pat Fehling with the Homeless Solutions Committee expanded further on the PowerPoint slides relating to the Short Term Solutions Sub -Committee's accomplishments and goals. City Manager Schwabauer applauded the Short Term Solutions Sub -Committee on its efforts and for acquiring donations to achieve its tasks. Mr. Ledbetter stated that the original Committee only had 12 to 14 members, but it has grown to over 50 volunteers, and he thanked them all for their 10 hard work. John Beckman with the Homeless Solutions Committee expanded further on the PowerPoint slides relating to the Long Term Solutions Sub -Committee's accomplishments and goals and invited the following individuals forward to further comment on their efforts to date. Cheryl Francis with Grace and Mercy Foundation reported that the Committee provided assistance with a business plan for Grace and Mercy to move forward with a day center for the homeless and the City allocated Community Development Block Grant funding for the project. She anticipates opening the day center later this year. In addition, the facility has new bathrooms and sinks, as well as an additional bathroom at the front of the facility. Ms. Francis stated this is her sixth year with Grace and Mercy, she receives no State or federal funding, and the facility depends on the citizens of Lodi to support its efforts. Jeffrey Kirst reported he is working with the City to draft a shopping cart ordinance that meets State law on the collection and return of carts and also provides responsibilities and penalties for retail business owners. City Attorney Magdich added that the ordinance will likely come before Council at it second meeting in April, after the Planning Commission reviews the draft in early April. Mr. Kirst further reported on the donation of the home at 4 West Vine Street, stating that the home will be used for either transitional housing or some other function and that the Committee is investigating options with non-profit entities to determine the best fit. Paul Zarkas, owner of the Golden Era Hotel on Main Street, stated he joined the Homeless Solutions Committee because he wants to change the negative environment at and surrounding the hotel. He submitted a proposal to the Committee called LAMP, Lodi Action Main Street Project, to clean up and revitalize the four -block area around the hotel. He introduced the concept to other area hotel owners, which is to offer housing or educational credits in return for community service, such as cleaning alleyways and picking up garbage. He stated LAMP would be a 6- to 24 -month program, during which participants would earn money for work projects or credits for vocational and career -oriented education, and he believed the budget would be set at 100 participants with revenue going back into the community. Mr. Zarkas further stressed the need for emergency shelter or transitional housing in Lodi. Council Member Chandler thanked Mr. Ledbetter for his inspirational leadership and for the efforts of the Community and he was certain the local newspaper would spread the word on the Committee's work. Mayor Pro Tempore Nakanishi also commended the Committee for its efforts. He further reminded the Committee that several years ago there was funding for a downtown restroom, but the business owners were opposed, to which Mr. Ledbetter responded that downtown business owners have had a change of heart on the matter. Council Member Johnson stated that efforts such as this often take a while to gather momentum and he was pleased the San Joaquin County Board of Supervisors agreed to coordinate the multiple agencies involved in this issue. He believed this was a great step forward in accomplishing the goal of addressing the homeless and stressed it is critical to keep the County focused on getting the administrator a point person to pull the agencies together and get their assets out to the community. Council Member Johnson stated he would ensure the San Joaquin Partnership's Business Council is aware of this effort so it can assist in moving it forward. Mayor Kuehne stated it has been a pleasure serving on the Committee and thanked Mr. Ledbetter for his leadership. Lodi Police Captain David Griffin reported that, over the past year, police calls regarding the homeless have increased 55 percent and that the Police Chief believes he can fund an officer to serve as a homeless liaison officer within the next fiscal year. In response to Mayor Kuehne, Captain Griffin stated that the Police Department has been conducting sweeps once a month at the river for many years; however, the increase in the 11 homeless population and staffing issues in the Department have made it difficult for the Police Department to conduct sweeps on a consistent basis. Mr. Schwabauer pointed out there is a trade off on the funding for the homeless liaison officer because it may come from the elimination of the auto theft task force, but Chief Patterson will explain it to Council further at a future meeting. Council Member Johnson stated he supports the concept of a homeless liaison officer, but he believes the position should be funded through the County Administrator and from its sources once all of the agencies are successfully coordinated, similar to sharing in the funding of a School Resource Officer. Mr. Schwabauer brought up the issue of the Portland Loo, a public bathroom structure, explaining there is a bidding opportunity for a used Loo, which closes next Wednesday and, if Council is interested in bidding, he could schedule a special meeting for next Tuesday. He explained this particular Loo would be less expensive than a brand new one, but the condition of the structure is unknown. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer explained that the Portland Loo is a patented product from Portland, Oregon. The City of San Diego purchased two Loos, but one of the structures became a public nuisance with drug use and crime and the city removed it. He estimated a new Portland Loo would cost $110,000 to $115,000 with taxes, and San Diego is selling its Loo under a bidding process, which would be less costly. He pointed out that staff has not inspected the structure, so the condition is unknown, and, if purchased, it would come without warranties. Mr. Schwabauer further responded that San Diego is starting the bidding at $40,000 and reminded Council that it has yet to conduct the public process to see if the public wants such a public restroom and, if so, where it should be located. Council Member Chandler agreed there should be public outreach to ascertain whether or not the public supports a downtown public restroom. June Aaker, downtown business owner and member of the Short Term Solutions Sub -Committee, stated three to four meetings were held with business and community members, Visit Lodi! representatives, Chamber of Commerce representatives, and community members regarding the concept of a public restroom in the downtown area. The majority felt a permanent structure would be too expensive, and the consensus was that a semi-permanent structure, like the Portland Loo, would be more appropriate because it is built to be virtually indestructible. She stated that San Diego removed one of its Loos because of improper location and poor usage. Ms. Aaker stated that Lodi is fast becoming a tourist destination and downtown should be a safe, clean environment. She stated the nearest public restroom facility is at the Transit Station; otherwise, visitors must patronize a business to use the facilities. She requested Council re-evaluate San Diego's Portland Loo because it is being sold at a reduced rate and there are likely no issues with the condition. Ms. Aaker encouraged the City to send staff to inspect the San Diego Loo. Mayor Pro Tempore Nakanishi commented that the previous discussion on this issue was controversial because business owners did not want a public restroom downtown, but now he is hearing they changed their minds. He stated it was likely best to make a quick decision on the Loo and save money. In response to Council Member Chandler, Ms. Aaker stated there were discussions regarding potential restroom locations at the meetings, adding that the preference is to complete a triangular section of restrooms with the Transit Station and parking garage. The ideal location is the grassy area in front of Fire Station No. 1, but there is no plumbing to accommodate a Loo. Another ideal location is the west side of Church Street near the entrance to the City Hall parking lot, which has adequate plumbing. The area would be accessible to homeless and visitors. The third location discussed is behind Blend and the former Woolworth's building, but the facility would take up a single parking space and the location is less visible to the Police and has poor lighting. Ms. Aaker stated that the Homeless Solutions Committee is committed to ensuring the Loo is well maintained at least three times a day, every day. 12 Council Member Johnson stated he still supports the concept of a downtown public restroom, but he was not in favor of chasing down a used Loo, particularly in light of the fact there has been no recent public discussion about whether or not it is wanted. He stated he heard feedback about Ms. Aaker's meetings and Visit Lodi!'s support, but it has not been sufficiently aired to reach a community consensus on the issue, including a potential location. Mayor Kuehne stated he agrees with the comments made by his fellow Council Members, but he leans toward moving forward with the Loo because it is less expensive than a brand new one and it can sit in a City lot until the issue has been thoroughly vetted by Council and the community. Mr. Schwabauer summarized that the subject of the Portland Loo and whether to bid on San Diego's used structure or not will be agendized for a special meeting on Tuesday. Public Works Director Swimley stated staff has already done some research on the Portland Loo in preparation for the Shirtsleeve Session tentatively scheduled for late April, which he will provide a presentation on Tuesday to aid in Council's decision. 1-4 Adopt Resolution Amending Traffic Resolution No. 97-148 by Approving Residential Permit Parking on York Street between Fairmont Avenue and Crescent Avenue (PW) Public Works Director Charlie Swimley provided a PowerPoint presentation regarding residential permit parking on York Street between Fairmont Avenue and Crescent Avenue. Specific topics of discussion included residents' concern over parking, program information, staff recommendation, survey results, and other residential permit parking areas. In response to Mayor Kuehne, Mr. Swimley stated that the residential parking permits successfully eased the parking troubles in both the Lodi High School and Tokay High School locations. Because people were parking in front of houses all day long, residents had no available parking for visitors or home improvement specialists during the day. In response to Council Member Chandler, Mr. Swimley explained that those with a permit can park on the street all day and the staggered timeline is to discourage all -day parking by those without a permit. He further confirmed the permit fee is $5.50 for three years. In response to Mayor Pro Tempore Nakanishi, Mr. Swimley stated staff surveyed 68 residents in this area. In further response regarding the letter from resident Mark Wilcox, Assistant Engineer Dorothy Kam stated there is no additional cost for parking enforcement as it will be handled by the Police Department Parking Enforcement Officers. If approved, residents can contact the Lodi Police Department to report vehicles parking in the neighborhood without a permit. She confirmed that visitors will be permitted to park on the street as long as it is not between 9 a.m. to 10 a.m. and 2 p.m. to 3 p.m. The other option is that residents can park on the street, leaving the driveway open for visitors. In response to Council Member Chandler, Mr. Swimley stated that he was uncertain how Lodi Memorial Hospital manages its parking spaces, but staff's indications are that the hospital has an appropriate amount of parking spaces. He added there are also other businesses in the area contributing to the on -street parking issue. Corey Wright, Orange Avenue resident, expressed concern that the decision to provide permit parking on York Street will only result in pushing cars to park on Orange Avenue, Park Street, and Windsor Drive. He suggested Council either pass this regulation for all of the streets in that neighborhood or for none at all. Mr. Swimley explained that City guidelines require at least 60 percent of residents within a proposed residential permit parking survey area be in favor of parking restrictions, and only 50 percent of the Orange Avenue residents were in favor of the restrictions. He suggested that staff monitor the area if this action is approved and conduct a subsequent survey if further complaints are received from Orange Avenue residents. Without 60 percent support from this block, staff 13 cannot recommend implementing the parking restriction for that neighborhood. Council Member Johnson stated this issue is likely the result of Lodi Memorial Hospital's expansion a number of years ago, but he questioned why the issue suddenly escalated to this level. Mr. Swimley stated that a number of residents consistently complained about the parking situation and many of them felt the City was not working fast enough for a resolution. Because of that, staff ramped up the efforts, conducted the process and survey, and is now before Council with the outcome. He stated that prior to the hospital's expansion, there may have been a different outcome. In response to Mayor Pro Tempore Nakanishi, Mr. Swimley stated that a few residents on York Street initially contacted the City about the situation, and Mr. Schwabauer added that York Street was the only street with over 60 percent support for the restriction. Chuck Kramer, York Street resident, stated that 65 percent of the residents on York Street support this effort, while several residents did not return the survey. He stressed there is a classic case of parking blight on this block that only worsened once the hospital expanded because hospital workers are parking on Fairmont Street, which in turn caused employees from Fairmont Street businesses to park on his street and further down onto Orange Avenue. He believes that Windsor Drive has a parking problem, but the residents there do not feel the same; however, he believed the situation will worsen there once the hospital expands further. He stated many of the York Street residents are elderly and have a difficult time backing out of their driveways because cars park on either side of the driveway. Mr. Kramer suggested the hospital work with the neighborhood church to allow parking during the week because it is primarily an empty lot on weekdays. In response to Mayor Kuehne, Mr. Kramer stated the neighborhood realized minimal relief in the parking situation when the Foundation opened its lot on the corner. In response to Mayor Pro Tempore Nakanishi, Mr. Kramer confirmed he is in support of staff's recommendation for parking restrictions on York Street. He recommended Council approve the item because York Street residents support the resolution and then it can address the issue for the other streets because, in a couple of months, parking will worsen in those areas due to the restriction on York Street. Council Member Chandler expressed disappointment that some residents did not return their ballots because often silence can be assumed as assent. Council Member Johnson stated he supports the proposal for York Street but questioned why the City charges a permit fee for an issue that was not created by the residents. He recognized that the fee is minimal, but this situation was created outside of residents' control. Mr. Kramer stated he was not concerned about the minimal fee amount as long as it resolves the parking issue. Jason White, Windsor Drive resident, explained that he voted against the parking restriction because he felt it was a nuisance to pay for a permit when he had nothing to do with the problem. He stated he believes the hospital is causing the parking situation, which worsened after the hospital's expansion. Mr. White stated the issues are greater than solely parking because many people block driveways with their cars, are rude when confronted, and throw cigarette butts in front of houses because they are prohibited from smoking at Fairmont Rehabilitation. He stated that, if Council enacts the restriction on York Street, it might as well approve the restriction for all of the streets because the problem will only move to the other streets. He further expressed frustration that he will need to purchase permits for all five of his cars. Mayor Pro Tempore Nakanishi stated he supports the idea of eliminating the permit fee because it is a nuisance for residents. Mr. Schwabauer stated that the fee of $5.50 for three years is minimal and does not cover the City's administrative costs, but if more neighborhoods request such restrictions, the City will be forced to dedicate resources to issue permits and monitor the 14 situation. The small amount causes people to choose whether the restriction is worth it or not. If the parking restriction is free, than many more neighborhoods will make similar requests. Daniel Wolcott, President and CEO of Lodi Memorial Hospital, apologized if any hospital employees were rude to residents because that is not the kind of values the hospital upholds. He encouraged residents to contact him with employee names if the situation arises again. Mr. Wolcott stated the hospital has outgrown the capacity of its parking and that it is currently in the master planning process to deal with its campus, including parking. He stated the hospital recognizes it contributes to the parking problem, but he believes the hospital also provides an enormous community value that is greater than the blight. Mike Lusk questioned whether the hospital's plan to create a parking structure in the future was still plausible, to which Mr. Wolcott replied in the affirmative, adding that the plan for an elevated parking structure has not been finalized, but it is still included in the master plan. Spencer Dayton pointed out that this parking restriction will likely overflow to other streets and push the problem out farther. He stated he understands the blight concern; however, he pointed out that employees must also park somewhere to get to work. Mr. Kramer stated that he believes Lodi Memorial Hospital has permission to park at the Seventh Day Adventist Church, yet no one does. He further commented that, even with a new parking garage for the hospital, employees will continue to park on York Street or Windsor Drive because it is closer. Mr. Wolcott responded that, during the electronic health record conversion project, the hospital had an extra 100 employees a day for a month. To address the influx in parking, the hospital leased the church parking lot on a temporary basis, but it no longer has that lease. Council Member Johnson suggested the hospital explore the possibility of sharing the parking lot with the church, similar to the public-private arrangement between the Baptist Church and Millsbridge School on Mills Avenue. He further suggested moving forward with the parking restrictions on York Street because residents there met the criteria set by ordinance, adding that he would accept the permit fee at this time. Council Member Chandler stated he would prefer not to handle this in a piecemeal fashion and would rather hold off on this action for the purposes of doing the entire neighborhood at one time. Mayor Pro Tempore Nakanishi agreed, stating he would not support the recommendation because further study is needed. Mayor Kuehne pointed out that the other streets are able to return to staff if the problem moves to their neighborhoods, but at this time York Street has enough support to move forward. He stated he believes if citizens ask for a solution and are willing to pay for it, the City should honor their request. Mayor Pro Temopre Nakanishi indicated he would support the request. Council Member Johnson made a motion, second by Mayor Kuehne, to adopt Resolution No. 2017-45 amending Traffic Resolution No. 97-148 by approving residential permit parking on York Street between Fairmont Avenue and Crescent Avenue. VOTE: The above motion carried by the following vote: Ayes: Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: Council Member Chandler Absent: Council Member Mounce J. Ordinances - None 15 K. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 11:00 p.m. ATTEST: Jennifer M. Ferraiolo City Clerk 16