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HomeMy WebLinkAboutMinutes - April 19, 2017LODI CITY COUNCIL REGULAR CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET WEDNESDAY, APRIL 19, 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 April 19, 2017, was called to order by Mayor Kuehne at 7:03 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, Deputy City Attorney Fukasawa, and City Clerk Ferraiolo NOTE: Council Member Mounce participated in the meeting via teleconference. B. Presentations B-1 National Volunteers Week Proclamation (PD) Mayor Kuehne presented a proclamation proclaiming the week of April 23-29, 2017, as National Volunteers Week in the City of Lodi. Representing the various departments were: Police Department - Police Chief Tod Patterson; Library - Caitlin Casey, Library Board Trustee; Public Works - Public Works Director Charlie Swimley; and Parks, Recreation, and Cultural Services - Parks, Recreation, and Cultural Services Director Jeff Hood. Mr. Hood recognized volunteers from Love Lodi, Tree Lodi, and the Lodi Garden Club and added these individuals wear many hats by volunteering with multiple departments. Lodi Police Department Volunteer & Crime Prevention Coordinator Chet Somera expressed pride for the volunteers, particularly the Partners volunteers who are pleasant to work with and volunteer for shifts at odd hours and in inclement weather. He gave special acknowledgement to Pat Freeman who has been volunteering with Partners since the Program's inception in 1993. Chief Patterson thanked the volunteers for their hard work and the countless hours they give back to the City. Mr. Swimley echoed the previous sentiments, adding that Lodi would not be the wonderful community it is without its core of volunteers. Watershed Program Coordinator Kathy Grant acknowledged the Storm Drain Detectives and their efforts, which received the prestigious Helen Putnam Award, as well as the Lodi Lake Docents. This year alone, 180 students participated in the Storm Drain Detectives Program and test the river twice a month. Ms. Casey recognized the many volunteers at the Lodi Public Library and gave special recognition to the two recipients of the Library Volunteer of the Year Award, Kelly Nimtz and Rick Seim. B-2 Library Volunteer of the Year Award (LIB) Mayor Kuehne presented certificates to Kelly Nimtz and Rick Seim as recipients of the Library Volunteer of the Year Award. Mr. Nimtz thanked the City, adding there are many others who are also deserving of this award 1 and stated he shares this recognition with them. Mr. Seim thanked the students for participating in the programs, as well as Library Services Director Dean Gualco, Board President Caitlin Casey, and Literacy and Volunteer Manager Yvette Herrera for all they do at the Library. B-3 Earth Day Proclamation (PW) Mayor Kuehne presented a proclamation to Watershed Program Coordinator Kathy Grant proclaiming April 22, 2017, as Earth Day in Lodi. Ms. Grant announced this is the fifth year of Earth Day, which will once again include coastal clean-up events at Lodi Lake. The event will coincide with the Love Lodi event on April 29, 2017, and this year's partners include Starbucks and a new collaborator, Constellation Brands, which is sponsoring a team -building canoe activity. Pastor Glen Barnes with First Baptist Church added that the Love Lodi projects are listed on its website, www.lovelodi.org, and include local schools and non-profit organizations and range from cleaning streets to visiting shut-ins. In all, there are 65 projects lined up for the day, and there is room for 1,000 volunteers. The day will begin at 9 a.m. with a rally at Hale Park, after which volunteers will be released to their projects until noon. Pastor Barnes stated that a number of businesses and churches are supporting the effort. Kathy Olson, representing Constellation Brands, stated they will be providing education about the watershed around Lodi Lake, in addition to the canoe rides. Mayor Kuehne recognized Greening Lodi for its transformation of the vacant lot by Busy Bee into a community garden. C. Consent Calendar (Reading; Comments by the Public; Council Action) City Manager Schwabauer announced that Item 1-1 relating to the Lawrence Park trees is being pulled from the agenda because the Senior Civil Engineer redesigned the street project to move the westbound bike path into the park, which will no longer require removing any trees. The item will come back to Council for approval of specifications and contract award for a design that will maintain the trees. Council Member Chandler 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, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None C-1 Receive Register of Claims in the Amount of $5,668,119.01 (FIN) Claims were approved in the amount of $5,668,119.01. C-2 Approve Minutes (CLK) The minutes of March 15, 2017 (Regular Meeting), March 21, 2017 (Special Meeting), March 21, 2017 (Shirtsleeve Session), and March 28, 2017 (Shirtsleeve Session) were approved as written. C-3 Approve Specifications and Authorize Advertisement for Bids for 2017-2019 Sidewalk and Miscellaneous Concrete Repair Program (PW) Approved specifications and authorized advertisement for bids for 2017-2019 Sidewalk and Miscellaneous Concrete Repair Program. 2 C-4 Approve Plans and Specifications and Authorize Advertisement for Bids for Harney Lane and Mills Avenue Traffic Signal Improvements (PW) Approved plans and specifications and authorized advertisement for bids for Harney Lane and Mills Avenue Traffic Signal Improvements. C-5 Adopt Resolution Awarding Bids for Purchase of Medium Voltage Cable from The Okonite Company, of San Ramon ($123,209.98) (EU) This item was pulled from the Consent Calendar at the request of a member of the public. Mike Lusk questioned where the cable will be placed, to which City Manager Schwabauer responded it will be used to replace existing cable and for new construction. Mr. Lusk suggested that building impact fees should be used to offset the cost of new development in the budget. Electric Utility Director Elizabeth Kirkley explained that the City bills all new development for the actual cost of labor and materials to install the needed facilities. Council Member Johnson made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-72 awarding bids for the purchase of medium voltage cable from The Okonite Company, of San Ramon, in the amount of $123,209.98. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None C-6 Adopt Resolution Awarding Contract for 2017 Finance Parking Lot Resurfacing Project to Tom Mayo Construction, Inc., of Stockton ($147,883); and Appropriating Funds ($100,000) (PW) Adopted Resolution No. 2017-60 awarding the contract for the 2017 Finance Parking Lot Resurfacing Project to Tom Mayo Construction, Inc., of Stockton, in the amount of $147,883; and appropriating funds in the amount of $100,000. C-7 Adopt Resolution Awarding Contract for Lawrence Avenue Accessible Parking Improvements to Central Valley Engineering & Asphalt, Inc., of Roseville ($59,567) (PW) Adopted Resolution No. 2017-61 awarding the contract for the Lawrence Avenue Accessible Parking Improvements to Central Valley Engineering & Asphalt, Inc., of Roseville, in the amount of $59,567. C-8 Adopt Resolution Authorizing City Manager to Execute Agreements with the Following Entities for Water Meter Program Phase 7 and Appropriating Funds ($4,983,200): A) DSS Company dba Knife River Construction, of Stockton, for Construction ($3,012,682); B) RMC Water and Environment, of Walnut Creek, for Engineering Services ($37,826); C) Terracon, of Lodi, for Construction Testing and Inspection Services ($400,000); D) Henderson Brothers Company, of Lodi, for On -Call Residential Plumbing Services ($150,000); and E) National Meter and Automation, Inc., of Santa Rosa, for Purchase of Water Meter Assemblies and Related Services ($700,000) (PW) Adopted Resolution No. 2017-62 authorizing the City Manager to execute agreements with the following entities for Water Meter Program Phase 7 and appropriating funds in the amount of $4,983,200: A) DSS Company dba Knife River Construction, of Stockton, for construction, in the amount of $3,012,682; B) RMC Water and Environment, of Walnut Creek, for engineering services, in the amount of $37,826; C) Terracon, of Lodi, for construction testing and inspection services, in the amount of $400,000; D) Henderson Brothers Company, of Lodi, for on-call residential plumbing services, in the amount of $150,000; and E) National Meter and Automation, 3 Inc., of Santa Rosa, for purchase of water meter assemblies and related services, in the amount of $700,000. C-9 Accept Improvements Under Contract for LED Luminaire Retrofit of Cobra Head Street Lights Project (EU) Accepted the improvements under the contract for the LED Luminaire Retrofit of Cobra Head Street Lights Project. C-10 Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Professional Services Agreeement with Holmes International, Inc., of Sacramento, for Wastewater Pipeline Condition Assessment Project ($57,125) (PW) Adopted Resolution No. 2017-63 authorizing the City Manager to execute Amendment No. 1 to the Professional Services Agreeement with Holmes International, Inc., of Sacramento, for the Wastewater Pipeline Condition Assessment Project, in the amount of $57,125. C-11 Adopt Resolution Authorizing City Manager to Execute Amendment No. 5 to Professional Services Agreement with Stantec Consulting Services, Inc., of Rancho Cordova, for Groundwater Monitoring and Reporting Services ($101,878) and Appropriating Funds ($101,878) (PW) Adopted Resolution No. 2017-64 authorizing the City Manager to execute Amendment No. 5 to the Professional Services Agreement with Stantec Consulting Services, Inc., of Rancho Cordova, for groundwater monitoring and reporting services, in the amount of $101,878 and appropriating funds in the amount of $101,878. C-12 Adopt Resolution Authorizing City Manager to Execute Task Order No. 40 with West Yost Associates, of Davis, for White Slough Water Pollution Control Facility Supervisory Control and Data Acquisition System Upgrade; Arc Flash Investigating and Training; and Preliminary Design of Odor Control, Electrical Building, and Ultraviolet Disinfection System Communication Improvements ($660,010) (PW) Adopted Resolution No. 2017-65 authorizing the City Manager to execute Task Order No. 40 with West Yost Associates, of Davis, for White Slough Water Pollution Control Facility Supervisory Control and Data Acquisition System upgrade; arc flash investigating and training; and preliminary design of odor control, electrical building, and ultraviolet disinfection system communication improvements, in the amount of $660,010. C-13 Adopt Resolution Authorizing City Manager to Execute Agreement with Central Valley Clean Water Association for Participation in Toxicity Special Study ($25,000) (PW) Adopted Resolution No. 2017-66 authorizing the City Manager to execute an agreement with Central Valley Clean Water Association for participation in a toxicity special study, in the amount of $25,000. C-14 Adopt Resolution Authorizing City Manager to Execute Improvement Deferral Agreement for 770 North Guild Avenue (PW) Adopted Resolution No. 2017-67 authorizing the City Manager to execute an Improvement Deferral Agreement for 770 North Guild Avenue. C-15 Adopt Resolutions Authorizing City Manager to Execute Reimbursement Agreement with Headwaters Kayak Shop and Approving Sole Source Procurement of Dock Components for Lodi Lake from Lakeshore Construction/EZ Dock, of Glenhaven, and Appropriating Funds ($26,000) (PRCS) Adopted Resolution No. 2017-68 authorizing the City Manager to execute a Reimbursement Agreement with Headwaters Kayak Shop and Resolution No. 2017-69 approving the sole -source 4 procurement of dock components for Lodi Lake from Lakeshore Construction/EZ Dock, of Glenhaven, and appropriating funds in the amount of $26,000. C-16 Adopt Resolution Terminating Agreement for Contracted Parking Citation Services with Enforcement Technologies Effective May 31, 2017, and Authorizing City Manager to Execute Agreement for Processing of Parking Citations with Turbo Data Systems, Inc., for the Period June 1, 2017 to May 31, 2020 ($6,670 First Year Cost) (PD) Adopted Resolution No. 2017-70 terminating the agreement for contracted parking citation services with Enforcement Technologies effective May 31, 2017, and authorizing the City Manager to execute an agreement for processing of parking citations with Turbo Data Systems, Inc., for the period June 1, 2017 to May 31, 2020, in the amount of $6,670 for first year costs. C-17 Adopt Resolution Terminating Delta Regional Auto Theft Team (Delta RATT) Memorandum of Understanding Effective June 1, 2017; Authorizing Reassignment of Delta RATT Police Officer (Special Assignment) to Serve as Community Resource Police Officer (Special Assignment) to Specifically Focus on Community Homeless Issues; and Authorizing Appropriation of Budgeted Part -Time Salary Funds from Police Administration to Operations to Fund that Portion of the Officer's Salary No Longer Funded by Delta RATT ($69,830) (PD) This item was pulled from the Consent Calendar at the request of Council Member Johnson for discussion purposes. Council Member Johnson stated he supports the recommendation to pull an officer off of the Delta Regional Auto Theft Team and reassign him to deal with the homeless situation; however, this eliminates the compensation the City was receiving to pay for a portion of the officers time. He stated he believes the homeless issue is a county -wide problem and the County should consider contributing toward Lodi's effort, similar to the School District's partial funding of School Resource Officers. Council Member Johnson requested the City Manager address this issue when he meets with the County Administrator. He further suggested the Mayor send a letter to each member of the County Board of Supervisors explaining the benefit the County will receive from Lodi's homeless liaison officer and proposing it contribute financially toward this effort. Mayor Kuehne stated he would take the suggestion under advisement, and Mayor Pro Tempore Nakanishi stated he supports the suggestion. Council Member Johnson made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-73 terminating Delta Regional Auto Theft Team (Delta RATT) Memorandum of Understanding effective June 1, 2017; authorizing reassignment of Delta RATT Police Officer (Special Assignment) to serve as Community Resource Police Officer (Special Assignment) to specifically focus on community homeless issues; and authorizing appropriation of budgeted part- time salary funds from Police administration to operations to fund that portion of the officer's salary no longer funded by Delta RATT in the amount of $69,830. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None C-18 Adopt Resolution Accepting Labor Compliance Program for the Purpose of Fulfilling Proposition 84 Grant Funding Requirement (PW) Adopted Resolution No. 2017-71 accepting the Labor Compliance Program for the purpose of fulfilling Proposition 84 grant funding requirement. 5 C-19 Receive Report Regarding Communication Pertaining to AB 890 (Medina) - Local Land Use Initiatives: Environmental Review (CLK) Received report regarding communication pertaining to AB 890 (Medina) - Local Land Use Initiatives: Environmental Review. C-20 Adopt Resolution Finding the Public Interest and Convenience Require the Sale of City - Owned Real Property Located at 705 East Lodi Avenue (Formerly Fire Station No. 2, APN 043-230-06) and the City's Intention to Sell the Property; and Set Public Hearing for May 17, 2017, to Receive Protests (CM) This item was pulled from the Consent Calendar at the request of a member of the public. Mike Lusk requested that, when this matter is brought back at the public hearing, staff include information regarding the revenue from the sale of this property. He stated in 2001 the City borrowed $1.9 million from the water impact fund to build Fire Station 4 on Lower Sacramento Road. He requested that revenue recovered from the sale of the old fire station be returned to the fire impact fee fund, then used to repay the loan from the water impact fee fund and the Certificate of Participation for the water treatment plant at Lodi Lake in order to save water ratepayers from a future rate increase. City Manager Schwabauer stated that is a reasonable idea; however, the money from the sale of the property is already assigned to repay the general fund capital account, which was borrowed against when Fire Station 2 was replaced. The financing plan for Fire Station 2 involved the sale of this property in order to pay back the general fund capital account. Council Member Mounce requested that information also be presented at the hearing regarding the original debt service, where the money came from, and the intention to pay back those borrowed funds. Council Member Johnson made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-74 finding the public interest and convenience require the sale of City - owned real property located at 705 East Lodi Avenue (formerly Fire Station No. 2, APN 043-230- 06) and the City's intention to sell the property; and set public hearing for May 17, 2017, to receive protests. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None C-21 Set Public Hearing for May 3, 2017, to Consider Adopting Resolution Approving the 2017/18 Draft Annual Action Plan for the Community Development Block Grant Program (CD) Set public hearing for May 3, 2017, to consider adopting resolution approving the 2017/18 Draft Annual Action Plan for the Community Development Block Grant Program. 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. 6 Robert Rasmussen expressed support for the homeless liaison officer because he lives next to the Awani Drive property near the railroad trestle and deals with homeless camping out in the area on a daily basis. He hopes the new officer will monitor the property once a week and hand out notices to vacate, rather than doing sweeps every three to four months. He shared some of his experiences with the homeless living near his home and stated that this officer should help with the problems in the area and provide another level of security. City Manager Schwabauer confirmed that the location referenced by Mr. Rasmussen will be a significant area of concentration for the homeless liaison officer. Mr. Rasmussen stated it would be beneficial having an officer report the neighborhood's concerns to the Police Department and to be a point of contact for residents. Mayor Kuehne requested Police Chief Tod Patterson describe the new homeless liaison officer's duties. Chief Patterson stated the program will be modeled after Manteca's and the officer would typically work 5 a.m. to 3 p.m. and, for the first hours of the day, roust homeless individuals away from businesses and other areas. He envisioned that the officer will have a four- or five-day schedule; will respond only to transient -related calls for service; and drive a pickup truck to take individuals to programs, drive them to the airport or bus station, or pick up abandoned shopping carts. Chief Patterson reported that transient -related calls are up 54 percent over last year and the Department feels this is the best use of an officer to address the growing problem. The Department will develop a game plan to most effectively and efficiently utilize this officer. Fernando Gallo announced the new non-profit organization in Lodi, Greening Lodi, the purpose of which is to make Lodi greener, especially in the Heritage District, by planting community gardens, painting murals, and executing other types of improvement projects. Greening Lodi was a result of the Asset Based Community Development (ABCD) meetings conducted by the Lodi District Chamber of Commerce, and he reported that the organization is run by Curt Juran, member of the Lodi Improvement Committee and Master Gardeners; Tayna Hansford who works for the Lodi Police Department; and he serves as the Vice President. Anyone interested in volunteering or making a donation was encouraged to visit www.greeninglodi.org, which is a 501(c)3 non-profit organization, or FaceBook. Greening Lodi will be participating in the Love Lodi event on April 29 with its first mural event, site dedication, and alley clean up behind Heritage School. Mayor Kuehne commented on the remarkable difference the first area made and is anxious to see the art work. He stated he was pleased the group took the ABCD concept seriously and is looking forward to working with them in the future. Elizabeth Malone, student at Bear Creek High School, stated she was attending the Council meeting for a school project and used the opportunity to express support for ratification of the employment contract and increase in pay for teachers. She urged residents, especially parents of students, to contact the Lodi Unified School District School Board to express support for the contract. E. Comments by the City Council Members on Non -Agenda Items Council Member Mounce thanked Council for allowing her to participate in the meeting via teleconference and explained she was currently in Sacramento at the League of California Cities Legislative Action Days. She reported that the Governor spoke at the opening session and acknowledged Lodi in his address. Council Member Mounce stated she was grateful and honored to serve as League President this year. Mayor Kuehne thanked Council Member Mounce for her hard work and efforts. He further reported that he participated in Arbor Day on April 1, which was hosted by Tree Lodi, and announced that Lodi has been a Tree City for 15 years. The group planted 25 trees that day in multiple locations, including Cherry Blossom trees at Kofu Park and memorial trees, and that more trees are being planted along Kettleman Lane. Mayor Kuehne recognized Tree Lodi for its hard work and for planning the wonderful Arbor Day activities. 7 Council Member Mounce thanked the City Manager, Public Works Director, and Senior Civil Engineer Sean Nathan for revisiting the Lockeford Street Improvement Project and redesigning the plan to save the trees on Lockeford Street. F. Comments by the City Manager on Non -Agenda Items None. G. Public Hearings G-1 Continued 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 announced that the portion of the public hearing concerning solar rates will be continued to July 19, 2017, because staff created a more favorable solar rate than what was before Council for approval. He stated that, if Council implements the option before it at this time, it would require solar applicants to install infrastructure for one solution and then require them to spend more money in July to install infrastructure to meet the new requirements. Staffs recommendation is to postpone the solar rates and act on it all at once so no one wastes money on infrastructure in the short term. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer confirmed the recommendation is that Council vote on all non -solar -related rates and continue the portion effecting solar rates to July 19, 2017. He further responded that this item has been continued at least twice, with the first hearing originally scheduled in December. Electric Utility Director Elizabeth Kirkley and Rates and Resources Manager Melissa Price provided a PowerPoint presentation regarding amending Lodi Municipal Code Chapter 13.20 - Electrical Service. Specific topics of discussion included background of Lodi's Electric Utility (LEU), financial challenges, costs to serve, revenue and expenses, cash reserves, current financial position, long-term capital planning, capital improvement progress, reliability - Average System Availability Index, reliability comparisons, rate actions, NCPA members and others - residential bill comparison, Lodi and surrounding communities - residential bill comparison, commercial rate comparisons, industrial rate comparisons, monthly bill impacts, maintaining financial stability, other changes, EU ten-year financial model, near-term solution to address annual deficits, and recommendation. In response to Mayor Kuehne, Ms. Kirkley stated that, in most cases, the replacement of aging infrastructure would go unnoticed by the public because it is primarily underground cable, overhead wires, replacement of utility poles, substation equipment, and transformers. In response to Mr. Schwabauer, Ms. Price stated that the last Consumer Price Index (CPI) adjustment was in 2015. Council Member Mounce stated that Council Members received a significant amount of correspondence from solar providers who are frustrated with the City's delay in making a decision on the solar issue and questioned why Council should continue the decision. Ms. Kirkley stated that Business Development Manager Adam Brucker communicated with many of the solar providers to inform them of the recommendation to continue that portion of the public hearing. By continuing the hearing, LEU will be able to provide customers with a better rate option than what is currently presented. If adopted tonight, customers would have additional charges in July to change their infrastructure to take advantage of the solar benefit. Mr. Schwabauer agreed that 8 solar businesses may be suffering because they are unable to sell their solar systems at this time; however, the City is interested in protecting the ratepayer. Council Member Johnson questioned what effect this decision could have on the City's credit rating, which at this time is positive. Mr. Schwabauer responded that the rating agencies are aware that Lodi has a capital improvement program (CIP) and that it needs revenue to fund it. If the City abandons the CIP in order to maintain reserves and survive, the agencies could downgrade the City for asking future generations to pay for the infrastructure it should be paying for today. A lower rating will drive purchase power costs up. Mayor Kuehne opened the public hearing for public comment. Mike Lusk questioned how the City can justify voting for the entire rate structure at a 2 percent increase when all of the facts and figures are not incorporated into the budget, such as the solar issue, the PG&E interconnection project that will include City expenses for upgrades, and the California Public Employee's Retirement System (Cal -PERS) deficit. Pat Patrick, President and CEO of the Lodi District Chamber of Commerce, stated that LEU addressed the Chamber Industrial Business group two years ago when it adopted the 5 percent increase and the consultant's 10 -year plan. He questioned why the plan did not predict where it would be today, only two years into it, and pointed to the significant increase in capital expenditures following the 5 percent increase. He suggested the City and the consultant missed the mark on the projection. Ms. Kirkley explained that the expenditures increased because the City had funding to implement the programs and that some projects rolled over from one fiscal year to another in the budget. She stated that, over the course of 10 years, the expenditures will even out with the plan, but it may not match the budget. Ms. Price pointed out that the forecast in 2015 included the 5 percent increase, as well as four years of 2 percent inflationary increases, and Mr. Schwabauer added that the first year CPI increase did not occur. There being no further public comments, Mayor Kuehne closed the public hearing. Mayor Pro Tempore Nakanishi commended Ms. Kirkley and LEU for Lodi's lower rates and system reliability. He stated the 5 percent increase two years ago was to assure reliability and to stop deferring needed maintenance. Residents, who are the owners of LEU, have spoken that they do not want water, wastewater, and solid waste rates raised, and the City is once again implementing a rate increase. He suggested holding off on the increase, using reserves for maintenance, and revisiting the issue in two years. In response to Mr. Lusk's earlier question, Ms. Price stated that LEU is aware of its income structure even without the solar revenue component because the proposal presented in July will be to collect the fair share from solar customers, which reduces and possibly eliminates the subsidy of solar altogether. She added there are also enough variances in the income levels and load, which is conservatively projected at a 1/2 to 1 percent increase. Regardless of the decision on solar and net energy metering, the financial situation shows those deficits will continue because it is driven by the $3.5 million to $4.5 million capital maintenance program. She stated she does not believe the decision on the solar program and compensation will have an effect on that. With regard to Mr. Lusk's earlier question regarding the 230 kV interconnection project, Mr. Schwabauer stated staff does not anticipate the project will effect Lodi's rate or cost structure for years to come. In fact, Lodi will realize a positive benefit within a 7- to 10 -year timeframe of increased revenue because of the decrease in the low -voltage transmission access charge. He explained that Lodi's cost for the 230 kV project is $22 million, which will be funded by a bond and repaid with the savings from the decrease in the low -voltage charge. He stated that 10 years from now, there will be no effect on the cost structure because, once the bond is repaid, the $3.5 million low -voltage cost goes away and the debt will have been repaid. With regard to the Cal -PERS issue, Mr. Schwabauer explained that the cost for LEU is a relatively small portion of its overall cost structure. While the Cal -PERS cost is devastating in the general fund, LEU's employee costs are only 12 percent of the overall operating costs, and Cal -PERS is 25 percent to 9 37 percent of that total, which is a small number in the utility. He added that the Cal -PERS issue does make the situation worse, which drives the need for rate increases as well. Council Member Chandler reiterated that in 2015 the City gave notice that it may increase rates for inflation by 2 percent a year for the next two to four years; however, it did not do so last year. He stated that deferred maintenance is always costly; Lodi's rates are comparable and favorable relative to other areas; and the City is committed to not skipping years in order to avoid significantly large increases in rates, preferring instead small, regular adjustments. Council Member Mounce stated that many residents are on fixed incomes and, while the increase may be miniscule for some, they compound with other increases and become a burden on citizens. She stated she would not support the motion. Mayor Pro Tempore Nakanishi stated that he is not suggesting the City defer maintenance; rather, it could tap into reserves and then revisit the situation in two years to determine whether or not rates should be raised. Deferring the increase would save ratepayers in Lodi two years of increases. Mayor Kuehne stated the argument in 2015 for the 5 percent increase and 10 -year plan was solid and he believes the argument still holds true today because deferred maintenance costs are much higher and the legislature is continually imposing and increasing mandates on cities. The City needs to be forward thinking and prepared to meet the mandates and requirements. Council Member Chandler made a motion, second by Council Member Johnson, to introduce Ordinance No. 1941 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 Johnson, and Mayor Kuehne Noes: Council Member Mounce, and Mayor Pro Tempore Nakanishi Absent: None Council Member Chandler made a motion, second by Council Member Johnson, to continue portion of public hearing to July 19, 2017, to consider Lodi Municipal Code Section 13.20.290, Schedule EP -Energy Purchase, as it relates to customer -owned generation. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, and Mayor Kuehne Noes: Council Member Mounce, and Mayor Pro Tempore Nakanishi Absent: None H. Communications H-1 Monthly Protocol Account Report (CLK) Council Member Johnson made a motion, second by Council Member Chandler, to approve the monthly Protocol Account Report through March 31, 2017. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None I. Regular Calendar 10 1-1 Provide Direction Regarding Lawrence Park Tree Impacts Associated with the Lockeford Street Improvement Project (PW) This item was pulled from the agenda pursuant to staffs request. J. Ordinances J-1 Adopt Ordinance No. 1939 Entitled, "An Uncodified Ordinance of the Lodi City Council Revising the Growth Management Ordinance by Expiring 1,056 Unused Low -Density Residential Growth Allocations" (CLK) Council Member Johnson made a motion, second by Council Member Chandler, (following reading of the title) to waive reading of the ordinance in full and adopt and order to print Ordinance No. 1939 entitled, "An Uncodified Ordinance of the Lodi City Council Revising the Growth Management Ordinance by Expiring 1,056 Unused Low -Density Residential Growth Allocations," which was introduced at a regular meeting of the Lodi City Council held April 5, 2017. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None J-2 Adopt Ordinance No. 1940 Entitled, "An Uncodified Ordinance of the Lodi City Council Levying and Apportioning the Special Tax in Territory Annexed to Community Facilities District No. 2007-1 (Public Services) (Annexation No. 5)" (CLK) Council Member Johnson made a motion, second by Council Member Chandler, (following reading of the title) to waive reading of the ordinance in full and adopt and order to print Ordinance No. 1940 entitled, "An Uncodified Ordinance of the Lodi City Council Levying and Apportioning the Special Tax in Territory Annexed to Community Facilities District No. 2007-1 (Public Services) (Annexation No. 5)," which was introduced at a regular meeting of the Lodi City Council held April 5, 2017. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: None Absent: None K. Adjournment There being no further business to come before the City Council, the meeting was adjourned at 8:57 p.m. ATTEST: Jennifer M. Ferraiolo City Clerk 11