Loading...
HomeMy WebLinkAboutMinutes - June 7, 2017LODI CITY COUNCIL REGULAR CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET WEDNESDAY, JUNE 7, 2017 C-1 Call to Order / Roll Call The City Council Closed Session meeting of June 7, 2017, was called to order by Mayor Kuehne at 6:05 p.m. Present: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo C-2 Announcement of Closed Session a) Prospective Sale of Real Property Located at 705 East Lodi Avenue, Lodi, California, Known as Former Fire Station 2, Owned by the City of Lodi; APN: 043-230-06; Government Code §54956.8 (CM) b) Actual Litigation: Government Code §54956.9; One Application; Lester Smith v. City of Lodi; Worker's Compensation Case No. CLMN-547485 (DOI: 8/13/2012) (CA) c) Negotiate Modification to Joint Use Agreement between City of Lodi and Lodi Unified School District (LUSD) in Regard to Use of Grape Bowl, 221 Lawrence Street, Lodi, CA; Negotiating Parties are City of Lodi and LUSD; Government Code §54956.8 (CM) d) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), Regarding AFSCME General Services and Maintenance & Operators, Pursuant to Government Code §54957.6 (CM) C-3 Adjourn to Closed Session At 6:05 p.m., Mayor Kuehne adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 6:50 p.m. C-4 Return to Open Session / Disclosure of Action At 7:02 p.m., Mayor Kuehne reconvened the City Council meeting, and City Attorney Magdich disclosed the following actions. Item C-2 a) was discussion only. Item C-2 b), c), and d) were discussion and direction only with no reportable action. Ms. Magdich further announced that, at the Special Council meeting at 5:30 p.m., Council elected not to hold the public hearing on the Community Development Block Grant (CDBG) Program (Item G-2). At the meeting, Council voted to re -set the public hearing for June 21, 2017, to consider approving the 2017/18 Draft Annual Action Plan for the CDBG Program and re -set the public hearing for July 19, 2017, to consider approving the Final 2017/18 Annual Action Plan. A. Call to Order / Roll Call The Regular City Council meeting of June 7, 2017, was called to order by Mayor Kuehne at 7:02 p.m. 1 Present: Council Member Chandler, Council Member Johnson, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Presentations B-1 Proclamation for 2017 National Dump the Pump Day (PW) Mayor Kuehne presented a proclamation to MV Transportation General Manager Jeff Kohlhepp and Transportation Planner Julia Tyack proclaiming June 15, 2017, as National Dump the Pump Day in Lodi. Mr. Kohlhepp announced that MV Transportation is donating a general public 10 -ride bus pass in celebration of Dump the Pump Day. Citizens were invited to enter the raffle at either the Transit Station, City Hall, Finance Department, Parks and Recreation office, or the Library. Lodi Transit will also offer free public transportation on June 15 and will stay open late in conjunction with the Farmers' Market. C. Consent Calendar (Reading; Comments by the Public; Council Action) Council Member Mounce made a motion, second by Council Member Chandler, to approve the following items hereinafter set forth, except those otherwise noted, in accordance with the report and recommendation of the City Manager. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member 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 $7,695,522.20 (FIN) Claims were approved in the amount of $7,695,522.20. C-2 Approve Minutes (CLK) The minutes of May 3, 2017 (Regular Meeting), May 8, 2017 (Special Meeting), May 9, 2017 (Shirtsleeve Session), May 16, 2017 (Shirtsleeve Session), and May 17, 2017 (Regular Meeting) were approved as written. C-3 Adopt Resolution Awarding Contract for 2017-2019 Sidewalk and Miscellaneous Concrete Repair Program to Popuch Concrete Contracting, Inc., of Lodi ($203,232) (PW) Adopted Resolution No. 2017-99 awarding the contract for 2017-2019 Sidewalk and Miscellaneous Concrete Repair Program to Popuch Concrete Contracting, Inc., of Lodi, in the amount of $203,232. C-4 Adopt Resolution Authorizing City Manager to Execute Change Order No. 3 to Central Plume — Mid Plume PCE/TCE Groundwater Treatment Project with Water Rock Construction Corporation, of Alameda ($143,926) and Appropriating Funds ($143,926) (PW) Adopted Resolution No. 2017-100 authorizing the City Manager to execute Change Order No. 3 to Central Plume - Mid Plume PCE/TCE Groundwater Treatment Project with Water Rock Construction Corporation, of Alameda, in the amount of $143,926 and appropriating funds in the amount of $143,926. C-5 Accept Improvements Under Contract for Water Meter Program Phase 6 (PW) 2 Accepted improvements under contract for Water Meter Program Phase 6. C-6 Accept Improvements Under Contract for Hutchins Street Square North Entrance Americans with Disabilities Act Improvements Project (PW) Accepted improvements under contract for Hutchins Street Square North Entrance Americans with Disabilities Act Improvements Project. C-7 Accept Improvements Under Contract for Beckman Park Storm Water Pump Station Improvement Project (PW) Accepted improvements under contract for Beckman Park Storm Water Pump Station Improvement Project. C-8 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with L & H Airco, LLC, of Roseville, for Building Control System Support Services and On - Call Maintenance and Repairs ($75,000) (PW) Adopted Resolution No. 2017-101 authorizing the City Manager to execute a Professional Services Agreement with L & H Airco, LLC, of Roseville, for building control system support services and on-call maintenance and repairs, in the amount of $75,000. C-9 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Terracon Consultants, Inc., of Lodi, for Construction Materials Testing and Inspection Services ($150,000) (PW) Adopted Resolution No. 2017-102 authorizing the City Manager to execute a Professional Services Agreement with Terracon Consultants, Inc., of Lodi, for construction materials testing and inspection services, in the amount of $150,000. C-10 Adopt Resolution Authorizing City Manager to Execute Amendment No. 4 to Professional Services Agreement with Crop Production Services, Inc., of Stockton, for Agronomist Support for White Slough Water Pollution Control Facility Land Application Area Monitoring ($5,760) (PW) Adopted Resolution No. 2017-103 authorizing the City Manager to execute Amendment No. 4 to Professional Services Agreement with Crop Production Services, Inc., of Stockton, for agronomist support for White Slough Water Pollution Control Facility land application area monitoring, in the amount of $5,760. C-11 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 to Professional Services Agreement with Efficiency Services Group, LLC, of Hillsboro, Oregon, for Public Benefits Program Administration ($405,125) (EU) Adopted Resolution No. 2017-104 authorizing the City Manager to execute Amendment No. 2 to Professional Services Agreement with Efficiency Services Group, LLC, of Hillsboro, Oregon, for Public Benefits Program administration, in the amount of $405,125. C-12 Adopt Resolution Authorizing City Manager to Sign Software License and Support Agreement with American Medical Response West for Multi -EMS Data System (FD) Adopted Resolution No. 2017-105 authorizing the City Manager to sign Software License and Support Agreement with American Medical Response West for Multi -EMS Data System. C-13 Adopt Resolution Ratifying City Manager's Execution of San Joaquin Valley Air Pollution Control District Public Benefit Grants Program Funding Agreement for Purchase of Two STAR EV Utillity Carts (New Alternative Fuel Vehicle Purchase) and Appropriate Funds in 2017/18 Budget ($33,922) (PD) 3 Adopted Resolution No. 2017-106 ratifying the City Manager's execution of San Joaquin Valley Air Pollution Control District Public Benefit Grants Program Funding Agreement for purchase of two STAR EV utility carts (new alternative fuel vehicle purchase) and appropriating funds in 2017/18 Budget in the amount of $33,922. C-14 Adopt Resolution Authorizing Appropriation Adjustment for Operation and Maintenance of Central Plume PCE/TCE Groundwater Extraction and Treatment System ($303,043) (PW) Adopted Resolution No. 2017-107 authorizing appropriation adjustment for operation and maintenance of Central Plume PCE/TCE Groundwater Extraction and Treatment System, in the amount of $303,043. C-15 Receive Report from City Manager on City Council Goal Progress (CM) This item was pulled from the Consent Calendar at the request of Council Member Mounce for discussion purposes. Council Member Mounce stated she agrees with most of the report; however, she took exception to the alley improvement project on Daisy and DeForce Avenues being listed as an accomplishment under the East Side Infrastructure Rehabilitation Project category because she does not consider that location to be on the east side. City Manager Schwabauer concurred with Council Member Mounce, stating it should not have been listed in the report. Council Member Mounce made a motion, second by Council Member Johnson, to accept report from City Manager on City Council goal progress. 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-16 Receive Update on Emergency Condition at Lodi Lake Nature Area, Emergency Repair of Mokelumne River Levee (PW) This item was pulled from the Consent Calendar at the request of Mayor Pro Tempore Nakanishi for discussion purposes. In response to Mayor Pro Tempore Nakanishi, City Manager Schwabauer reported that, during a routine check, a Park Maintenance Worker noticed a compromised levee that protects the Lodi Lake Nature Area from flooding. Mr. Schwabauer provided background on the Lodi Lake Nature Area, which was purchased by the City in 1975, explaining that it was originally farm land protected by levees that ultimately grew into what is the Nature Area today. The levee became compromised as a result of high flood waters in the Mokelumne River this year. Three feet of the levee remained to protect the Nature Area from flood waters, and the river remained in a flood stage until this week. The risk of flooding to the Nature Area was significant, which would have resulted in standing flood water for a long period of time and a loss of trees; therefore, Council took emergency action to repair the levee. Some of the areas were 30 feet deep, which required more rock than originally thought, and the contractor was able to use natural rock instead of rip rap. Follow-up work included rehabilitating asphalt and the trail that became compromised by construction traffic. Mr. Schwabauer stated that, after speaking to Federal Emergency Management Agency (FEMA) representatives, he feels confident the City will be reimbursed for most, if not all, of the project cost. He pointed out, however, that FEMA can take years to reimburse agencies, but ultimately the City should be reimbursed $180,000. He stated the emergency repair work is essentially completed at this time. 4 Council Member Chandler made a motion, second by Mayor Pro Tempore Nakanishi, to accept update on emergency condition at Lodi Lake Nature Area, emergency repair of Mokelumne River levee. 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 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. Mushtaq Tahirkheli stated that he recently wrote a piece in the Lodi News -Sentinel about high utility bills and expressed disappointment that he received no response from the City Council. He stressed that for many it is a struggle to pay the bill, particularly those who earn low wages. Further, Mr. Tahirkheli suggested term limits be instituted for Council Members because many of the representatives serve on Council for a long time and have greater resources to run for election, which makes it difficult for others to get elected to the City Council. He stated that, if he were elected to Council, he would ensure others get a chance to serve and work for the City. Mayor Kuehne encouraged Mr. Tahirkheli to run for Council. Mr. Tahirkheli further stated he believes big businesses in Lodi are hurting small businesses and that the City should take care of small business owners. He expressed appreciation for the Police and Fire Departments, stating firefighters and officers work hard and deserve greater benefits than they currently receive. Mr. Tahirkheli encouraged Council Members to read the Lodi News - Sentinel to be more in touch with citizens and their concerns. Pat Patrick, Executive Director of the Lodi District Chamber of Commerce, spoke on behalf of a local food truck owner to request the City Council revisit the mobile food vendor ordinance that is now outdated. The current ordinance allows for only 22 licenses in the City; however, mobile food vendors operate at special events or wine tasting functions more often than when the ordinance was first enacted, yet they are unable to do so because of the limitation on licenses. He stated he believes it is time to revisit the regulations to better address the emerging and growing business trend of mobile food trucks. Council Member Chandler expressed support for revisiting the ordinance because he believes the food truck world has drastically changed since the ordinance was first adopted. He stated he believes the matter will come back before Council and asked that Mr. Patrick share his suggestions with staff. In response to Mayor Kuehne, City Attorney Magdich stated the current Lodi Municipal Code Chapter 9.18 was adopted December 2, 2009 and became effective January 2, 2010. Council Member Mounce reminded Council the reason for the mobile food vendor ordinance was to address the east side that became inundated with food trucks, all of which provided eating locations without restrooms or other amenities needed to handle such a business. She stated she would entertain the concept of vendors at wineries, but not if amendments gave rights for vendors to park anywhere because that would be problematic for the aging part of town. 5 City Manager Schwabauer stated the primary conversation is to allow vendors to operate at tasting rooms and special event locations by changing the ordinance to allow a set number of special event licenses each year. He stated he does not believe the request is for a wholesale change; it is for a new category to allow food trucks at locations for a special event. E. Comments by the City Council Members on Non -Agenda Items Council Member Mounce reported on the League of California Cities meeting she attended in Ceres to discuss Central Valley issues and stated the League has suspended division dues for the time being because it has ample funds. She announced the League's Central Valley golf tournament will be on October 12, 2017, and invited her fellow Council Members to participate and support the event. Further, Council Member Mounce encouraged businesses interested in sponsoring a tee or participating with the League to contact her. Council Member Mounce displayed photographs (filed) that she came across on a Facebook post from Bradley Christy regarding the homeless situation near Highway 99 and north of Turner Road in which he states the homeless have been stealing items and are contaminating the river. Mr. Christy commented on his post that Council Member Mounce should tell Council it is time to address this situation; that the City should file a lawsuit against Caltrans; and that Lodians should not drink the water until the situation is rectified. Council Member Mounce stated Mr. Christy's post was shared over 500 times with 800 people commenting on it and she was displeased that he singled her out among all of the Council Members. She stated the property in question is not located in Lodi; she has no control over what other Council Members do; and Mr. Christy cannot expect the Council to solve a social problem that is occurring as a result of California legislative actions with the State releasing convicts from prison. Since Mr. Christy's post, Council Member Mounce stated she has been insulted, threatened, and harassed and has tried responding to questions and comments with information and facts regarding the growing homeless problem. She stated she believes it is time for tough love in Lodi and that homeless individuals who are addicted to drugs or alcohol that do not want to be in a program should leave this community because Lodi is trying to become a tourist destination. She stated the City is doing all it can; however, there is a lot that is beyond the City's control. She asked the City Manager to respond to the following questions: 1) who owns the property and has jurisdiction of Highway 99 near the river; 2) who is responsible for maintaining the area and preventing people from trespassing; 3) how often is the area under the freeway and surrounding the river cleaned; 4) what is the State rule for removing homeless camps; 5) what is State law on bussing people to Lodi from other communities; 6) is Lodi planning to reunite homeless people with their families; 7) what is the City Manager's opinion on a tough -love approach; 8) how are the mentally ill managed; and 9) what will the responsibilities be of new Homeless Liaison Officer Ryan Holz. City Manager Schwabauer responded that a major factor driving the increase in the homeless population is the State policy from Governor Brown and legislation relating to realignment and decriminalization of drug addiction that removes drug addicts from prisons. The theory is that, if removed from prison and treated, those addicted to drugs will have better success in eliminating their criminal behavior versus putting them in prison to learn bad habits. In addition to realignment, there is no housing or residential rehabilitation facilities for the homeless; therefore, they return to the streets when previously they were in prison. In response to Council Member Mounce's questions, Mr. Schwabauer responded as follows: 1) The jurisdiction over the bridge at Highway 99 north of Turner Road is not the City of Lodi; it falls under the San Joaquin County and is owned by Caltrans. 2) Caltrans has the responsibility for maintaining the property, but it needs support from the California High Patrol (CHP) or County Sheriff. 3) Over the last two years, the City worked on a joint program with Caltrans, Lodi Police Department, County Sheriff, and CHP to keep the highway underpasses clear. In addition, Caltrans installed concrete abutments under all of the overpasses and has been very responsive by joining the joint approaches to sweeping the area. The effort is typically done four to six times a year, it takes roughly five officers, and there is a significant expense to accomplish the task. Short of posting security guards around the clock, he stated it is a remarkable challenge to keep the area pristine. In referencing the photographs of the homeless camps, Mr. Schwabauer estimated the amount of garbage was likely two weeks worth of generation. 4) With regard to homeless camps, State law prohibits taking private property without due process of law, which requires a 72 -hour notice, posting of the property, and storage of removed property in order to give individuals an 6 opportunity to claim it, even when they are trespassing, which makes the effort more difficult and time consuming. He added there are advocacy groups that make a point of protecting the civil rights of homeless. 5) There is no State law that states whether a community can or cannot bus individuals in or out of a community; however, he believes it is a bad practice and would not recommend any community doing so. He stated that some communities who tried bussing people out only found that the individuals would return for additional vouchers that were then converted to cash. In response to Council Member Mounce, Mr. Schwabauer stated he is not opposed to the reunification program that returns homeless individuals to their families; in fact, it is recommended that the new Homeless Liaison Officer become familiar with the homeless and their problems in order to refer them to the appropriate resource (i.e. housing, mental health, willing family member, etc.). He stated that, since closing the hospital, County Mental Health does not keep patients for longer than 72 hours unless they have severe issues. 7) With regard to the tough -love approach, he stated that many in the community express their concern for the homeless in ways that are counterproductive, such as giving food and money to the homeless, but the Homeless Committee is reigning in that behavior by promoting a hand -up, not a hand-out, approach by referring homeless individuals to appropriate resources and programs instead. 8) With regard to the mentally ill, he reiterated that County Mental Health does not keep patients long and homeless individuals are typically back on the streets in a relatively short timeframe. 9) The new Homeless Liaison Officer is modeled after Manteca's program, in which the officer is assigned to patrolling for crimes committed by the homeless. He stated the problem is that the individual perpetrating the crime must be caught in the act because criminal activity must be proven beyond a reasonable doubt. This new officer will be focused on patrolling for criminal activity by the homeless and enforcing those laws, since the mere act of being homeless cannot be criminalized, as well as finding supportive services for the homeless. Council Member Mounce asked Mr. Schwabauer to respond to Mr. Christy's claim that Lodi's drinking water is contaminated by the homeless and that Lodi does not treat water for human waste. Mr. Schwabauer stated that he has been assured by the Public Works Director that the Water Treatment Plant is designed to remove human -borne pathogens. Police Chief Tod Patterson stressed the importance of the community understanding the severity of the homeless problem, which is why he recommended removing an officer from the auto theft task force to focus on the homeless situation. Chief Patterson stated CHP visited the area in question near the river and issued trespassing citations and he spoke to Mr. Christy about his concerns. The area will be posted again for cleanup; however, he pointed out that most of the homeless will remove the items they wish to keep and leave the rest to be cleaned up by enforcement agencies, only to return with their belongings. Chief Patterson stated he will introduce Officer Holz at a future Council meeting and reported that Officer Holz will be in Manteca tomorrow to shadow the Homeless Liaison Officer to fully understand the program. His goal is for Officer Holz to get to know the homeless, establish a relationship with them, and have the proper contacts to help them. Chief Patterson added that transient -related calls to the Police Department have increased 34 percent over last year, while the number of officers has not. Mayor Kuehne stated he was tagged by someone in the Facebook post referenced by Council Member Mounce and his response was to challenge the individual to become involved in one of the Homeless Committees. Council Member Chandler echoed his support for the programs described by the City Manager and thanked the Police Chief for establishing the Homeless Liaison Officer. He further reported there is a meeting at the Grape Festival grounds in Jackson Hall on June 8, 2017, hosted by Grape Festival Director Mark Armstrong. The meeting will include self introductions, a statement from the Lodi Police Department, and a discussion about the homeless problem and ways to address it. Mayor Pro Tempore Nakanishi stated he believes the City is doing its best to resolve the homeless problem, but in most cases the City does not have the jurisdiction, power, or money to address it. He suggested the public contact their representatives to fix the laws in California that are contributing to the problem. He stated the City is working with the County and he will continue to do his best on addressing the issue with Council. 7 Mr. Schwabauer reported the County is exploring turning the now -closed Honor Farm into a homeless rehabilitation residential facility. It would likely start small with 100 to 150 participants, but it would accept people from all around the area, including Lodi. The County is looking to be a major player in addressing the homelessness situation. Mayor Kuehne agreed, stating the County has been actively partnering with cities, police departments, mayors, and city managers to discuss the problem. Council Member Johnson stated he was pleased to see the County coming to the table in this regard because he felt for the longest time that it avoided responsibility on the issue and left it for communities to handle. With regard to the homelessness meeting at the Grape Festival, Council Member Johnson questioned whether it was counterproductive to have another group form on this issue because there is already a Homeless Committee actively working to address the problems and is making significant headway. He stated he believes there needs to be a cohesive effort. Council Member Chandler stated he was quoting from the meeting agenda, but stated he believes the group prefers to be attached to an existing effort. Council Member Mounce stated she appreciates the recognition for the County's efforts, adding that Supervisor Cathy Miller takes the matter very seriously. She stated the League of California Cities has fought hard and worked with Senator de Leon to pass the "No Place Like Home" bill to pay for the mentally ill. The ballot initiative passed years ago and a significant amount of money was collected; however, there was no method in place to distribute the money. She stated there is over $10 billion in Sacramento earmarked for mental health issues, and the League has worked tirelessly to release $2 billion a year to counties for housing and helping the mentally ill, which is why the County is actively preparing to address the situation. F. Comments by the City Manager on Non -Agenda Items None. G. Public Hearings G-1 Continued Public Hearing to Receive Written or Oral Protests to the City's Intention to Sell City -Owned Real Property Located at 705 East Lodi Avenue (Former Fire Station 2; APN 043-230-06), and Adopt Resolution Authorizing City Manager to Proceed with the Sale of the Property (CM) 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 continued public hearing to receive written or oral protests to the City's intention to sell City -owned real property located at 705 East Lodi Avenue (former Fire Station No. 2; APN 043-230-06), and adopt resolution authorizing the City Manager to proceed with the sale of the property. Business Development Manager Adam Brucker provided a presentation regarding the sale of City -owned real property at 705 East Lodi Avenue. Specific topics of discussion included previous action to adopt Resolution of Intention to sell the property; public hearing to receive and consider protests; ability of Council to overrule any written or oral protests by a 4/5 vote; ability of Council to authorize staff to proceed with the sale; noticing and processing of sale; and ability of Council to reject all bids or accept a bid. City Attorney Magdich pointed out that it also takes a 4/5 vote of Council to authorize the City Manager to proceed with the sale. In response to Ms. Magdich, City Clerk Ferraiolo reported that no written protests were received prior to the public hearing. Mayor Kuehne opened the public hearing for public comment. 8 There being no public comments, Mayor Kuehne closed the public hearing. Council Member Mounce made a motion, second by Mayor Pro Tempore Nakanishi, to adopt Resolution No. 2017-108 authorizing the City Manager to proceed with the sale of the City -owned property located at 705 East Lodi Avenue (former Fire Station No. 2; APN 043-230-06). 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 G-2 Public Hearing to Consider Adopting Resolution Approving 2017/18 Final Annual Action Plan for Community Development Block Grant Program and Appropriating Funds ($631,959) (CD) Pursuant to Council action at the June 7, 2017, Special City Council meeting*, the public hearing to consider adopting resolution approving 2017/18 Final Annual Action Plan for Community Development Block Grant (CDBG) Program and appropriating funds in the amount of $631,959 was pulled from the agenda. (*Council action was to set public hearing for June 21, 2017, to consider approving the 2017/18 Draft Annual Action Plan for the Community Development Block Grant Program; and set public hearing for July 19, 2017, to consider approving the Final 2017/18 Annual Action Plan for the CDBG Program.) H. Communications H-1 Appointments to Lodi Improvement Committee (CLK) Council Member Mounce made a motion, second by Council Member Chandler, to make the following appointments: Lodi Improvement Committee Doug Bojack, term to expire March 1, 2018 Rehana Zaman, term to expire March 1, 2020 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 1. Regular Calendar 1-1 Adopt Resolution Approving Fiscal Year 2017/18 Financial Plan and Budget and Approving Fiscal Year 2017/18 Appropriation Spending Limit (CM) City Manager Schwabauer recognized staff for developing a proposed balanced budget for Fiscal Year 2017/18 and reminded Council that the California Public Employees Retirement System (Cal -PERS) issue with its changes in actuary assumptions and plan to get solvent is the driving factor behind the City's budget position. He stated that, during the presentation, Council will see a five-year draw down in reserves as the Cal -PERS bill in the general fund increases from $6 million to $13.5 million and steadily worsens thereafter. The City will be forced to make serious changes in order to maintain a politically -sustainable level of services in the community. Mr. Schwabauer stated that further conversation along those lines will occur in the coming year, 9 but at this point he was pleased to present Council with a balanced budget proposal. Deputy City Manager Andrew Keys provided a PowerPoint presentation regarding the Fiscal Year 2017/18 Financial Plan and Budget. Specific topics of discussion included Council requests relating to historical general fund expenses, comparison of labor costs, utility intrafund transfers, and sewer dump fee revenues; five-year general fund forecast; revenue assumptions; expense assumptions; Cal -PERS rate assumptions; revenues; expenses; fund balance; risks and opportunities; impact of potential new revenue; City-wide positions; major capital projects; and recommended action. In response to Council Member Mounce, Mr. Schwabauer stated that Michael -David Winery and Van Ruiten Winery are the only two wineries that hooked into the City's sewer system for winery waste. Mr. Schwabauer stated that initially an agreement was approved to allow three wineries to truck waste into the White Slough Water Pollution Control Facility; thereafter, Van Ruiten built a line because its lateral ran across its own property and Michael -David did the same within the last year. They no longer truck in their waste, but Jessie's Grove Winery does. Mr. Keys confirmed the sewer dump fees are from residential customers for septic and does not include winery waste. Mayor Kuehne asked if residents are trucking their waste elsewhere and whether the City should be competitive in that regard to ensure revenue does not decrease. Mr. Keys stated the fee to dump waste is based on residential and non-residential rates and, the way the rate structure is set up, Lodi is not the most competitive in the area. In further response, Mr. Schwabauer stated he did not have a response on whether or not the City should be competitive in this area. The rate is 150 percent of the residential rate and is intended to recapture general fund support of the facility, adding that whether the City loses or gains money is a result of the cost of treatment. He stated he would discuss the matter further with staff and report back to Council. Council Member Mounce stated she expressed concern at the previous Shirtsleeve Session about the amount of money maintained at Northern California Power Agency (NCPA) in the general operating reserve (GOR) and asked if there were any footnotes or comments in the budget addressing her concern. Mr. Keys stated the budget at this time does not address taking additional money away from the GOR or NCPA's investment on those. The City has access to the fund at any time, but the investment management expertise that NCPA provides is higher than what he can provide through the City because NCPA earns a higher yield. Council Member Mounce stated her concern is the budget indicates a certain number for the GOR, but the City has more money than that held at NCPA, which is not indicated in the budget. She pointed out that Council is not presented with an annual or quarterly NCPA budget update and expressed concern that something could go wrong because it is not under the City's control. She stated she believes there should be a notation in the budget that indicates more money is held with NCPA than required. Council Member Chandler stated that, as a commissioner on the NCPA board, he can vouch for the fact that the funds are being utilized in a better fashion than what the City could do in house, but he believed her concern could be addressed in the budget. In response to Mayor Pro Tempore Nakanishi, Rates & Resources Manager Melissa Price stated the City receives an annual update from NCPA, along with a report card on the ratings for all NCPA members, and that NCPA is a meld of all its agencies. Mr. Schwabauer stated the City's rating is A- and that NCPA's rating is higher. Council Member Mounce stated she is not questioning whether the City has deemed NCPA's investment strategy better than the City's. The issue is that the City is doing something other than what the budget says it will do. She stated her job is to provide oversight for the City, not NCPA, and the budget should reflect that there is more money in the GOR than required. Mr. Keys stated a line item for NCPA investments could be incorporated on the investment report for greater transparency. Council Member Mounce reiterated the budget should reflect there is $8.6 million held at NCPA instead of $4.5 million. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer stated the money in the Cal - 10 PERS stabilization fund held with Public Agency Retirement Services (PARS) is projected to be 6.25 percent, while the Cal -PERS assumed earnings rate is higher than Lodi's. Mr. Keys added that Cal -PERS assumes it will earn 6.25 percent, however, it does not anticipate earning that over the next 10 years. He further pointed out that, if Cal -PERS earns under its assumption, it charges entities the next year; however, if it earns over the assumption, it waits two years to give the benefit. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer stated that staff will know more in the next two to four months and will provide Council information on which strategy to take regarding Cal -PERS and where to put any additional resources. He further stated that Stockton and Laguna Beach are advance paying Cal-PERs and the State of California is borrowing money under the concept that, if Cal -PERS earns 7 percent, it would see a reduction in the unfunded actuarial liability. Other entities are following that approach, and staff will discuss the options with Council to determine whether that is the correct choice or if staying with PARS is right. Council Member Mounce stated that, if the City is contemplating a sales tax measure on the 2018 ballot, the process should begin now in order to communicate the importance and value of it to the community. Mr. Keys agreed that this information must make its way into the community and stated the City will be exploring its options soon. Council Member Mounce stated she was pleased to see the budget includes training for the Police and Fire Departments because it keeps them safe and up to date on the newest life-saving efforts; however, she expressed concern with adding an Accountant position, particularly in light of complaints from the public that lines are long and there is a lack of communication in Finance. Instead of adding more Customer Service Representatives, the budget shows the number has reduced from nine to six since 2015, and she believes adding an Accountant will not address the issues brought forward about the Finance Department. Mr. Keys responded there are a number of initiatives in play that will address the issues at Finance. Within the last few weeks, all of the Customer Service Representative windows have opened and staff was cross trained to fully integrate services, which will relieve pressure on line wait times. In addition, Council will be asked to approve contracts at its next meeting that will improve e -billing and electronic services, as well as add a kiosk station to receive payments via check, cash, or credit card. The City will offer training videos to educate the public on the new system changes and have staff available to answer questions and route citizens toward the kiosks if they opt to pay via that method. Tyler Technologies staff was on-site last week to fix issues with the billing system, which was previously causing a greater number of people to come into the office, and shared the latest innovations in the program that will provide for more effective service. In further response, Mr. Keys stated he believes the on-line feature will be complete within four months; it can accommodate automatic bill payments; and it will no longer accept payments and send receipts for accounts that do not exist. Council Member Mounce stated the Customer Service Representatives are doing the best they can with the tools they have, but she believes they are lacking certain tools that would give customers a positive experience. She expressed hope that the changes discussed will improve the situation at Finance and indicated she will stop by the lobby again afterward to see if problems were resolved. Mr. Schwabauer added that the reduction in Customer Service Representatives referenced by Council Member Mounce was for full-time staff; however, two part-time Representatives were recently added. In response to Mayor Pro Tempore Nakanishi, Mr. Keys stated that a few positions were reclassified that are now assisting at the windows; the City recently added a translation assistance service for all languages at a low cost to the City, which will assist staff in communicating with customers; and minor improvements will be made to the physical layout of the lobby to address the lack of visibility and improve the atmosphere for customers. Mr. Keys pointed out that the Community Development Block Grant (CDBG) recommendations in the proposed budget is based on Council action taken in May. Because the CDBG issue is being revisited, any adjustments made by Council will be reflected in the final budget. Council Member Johnson stated he is not adverse to adopting the budget resolution, but asked Council to consider adding an item to the resolution to hire a consultant to look at possible ways 11 to outsource services or functions. In reference to the staff report, which states there are four actions that can stave off insolvency (i.e. substantial reduction in services, additional revenue equivalent to a half -cent sales tax, Cal -PERS rate increase reconsideration, and Cal -PERS legislation amendments), Council Member Johnson stated that only two of those options are within Council control and the City should explore every possible option. Many cities outsource various functions, and he stated he believes a consultant could recommend the best solutions for Lodi. If Council is amenable to the proposal, he suggested a deadline of January 2018 for the consultant's report and a deadline of June 2018 for Council to act upon recommendations. In response to Council Member Mounce, Mr. Schwabauer stated a majority of the police vehicles were replaced in the last two years and staffs feeling is the budget can absorb the Police Departments lack of participation in the Vehicle Replacement fund this year, but the Department will continue to fund the program in the long run. Police Chief Tod Patterson stated he felt this was the best opportunity this year since a number of vehicles were purchased a little over a year ago. As far as moving forward, Chief Patterson stated he would not recommend doing so again. He added that he has looked into leasing options that could lower costs in the future. Council Member Mounce stated she planned on supporting the budget with great trepidation; however, she is reconsidering due to Council Member Johnson's recommendation. She stated the League of California Cities fought hard on SB1250 to ensure the inability to outsource was taken off the table and the author removed that portion so cities were no longer included in the regulation. Council Member Mounce stated she was opposed to outsourcing all of Lodi's services and she was even more opposed to paying a consultant to tell the City where it can save money. She stated she spoke to the City Manager about an opportunity for revenue enhancement, which may mean renegotiation of certain situations and revenue from the County, and she believed that is where the City should focus its efforts. The League is making headway with Cal -PERS and will continue to do so. She reiterated she would not support the budget if the majority of Council opted to include the suggestion to hire a consultant to make recommendations on outsourcing services. Council Member Chandler added that upcoming contracts with employees may also have an effect on the budget if they share in more of the Cal -PERS burden. Mr. Schwabauer stated that will be a part of the negotiation process, adding it was premature to discuss it now. Mr. Keys pointed out the Cal -PERS burden that employees share is the normal cost; not the accrued past liability, which is the cost driver. He stated there is some potential for change there, but it must be negotiated. Mr. Schwabauer stated the Public Employee Pension Plan, Reporting and Accountability Act (PEPPRA) has a provision that councils going forward in 2017 can negotiate employees to pay up to 1 percent of pay in Miscellaneous and 1.5 to 2 percent in Safety. He stated the City can impose that if it cannot reach agreement; however, it can always negotiate with employees any number they are willing to pay toward their pensions or the unfunded actuarial liability. Council Member Chandler stated he was not opposed to considering outsourcing; however, he believed the recommendation should not be part of the budget motion. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer further expanded on the PEPPRA provision that states, at the end of 2017, cities could negotiate future contracts with an increase to the amount of the employee's share of Cal -PERS. Currently, the amount is 50 percent of "normal cost," which is 7 percent for Miscellaneous and 9 percent for Safety. The percentage of normal cost increased to 8 percent for Miscellaneous employees, which is a one point increase that can be negotiated. If an agreement cannot be reached, the City can impose the additional 1 percent cost share following the entire bargaining process in good faith. For Safety, the increase is 1 to 2 percent. Mr. Schwabauer stated he is not saying the City will definitely negotiate such a change; only that the City can legally do so. Mayor Pro Tempore Nakanishi agreed that the discussion about outsourcing is better discussed at another time. Mayor Kuehne agreed that the idea of outsourcing is worth pursuing, but it should not be a part of this motion. He further thanked the efforts of the League in amending the verbiage of SB1250, adding that Council joined the League's effort by sending a letter. He stated the talk of possible insolvency is frightening and the City must be as proactive as it can. He stated he looks forward to hearing Council Member Mounce's suggestions, adding that he has some ideas as well. 12 Council Member Chandler made a motion, second by Mayor Kuehne, to adopt Resolution No. 2017-109 approving Fiscal Year 2017/18 Financial Plan and Budget and approving Fiscal Year 2017/18 Appropriation Spending Limit. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Mounce, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: Council Member Johnson Absent: None 1-2 Adopt Resolution Approving Classification, Job Description, and Salary Range of Fleet Superintendent and Approving Reclassification of One Fleet Supervisor to Position of Fleet Superintendent (CM) Human Resources Manager Adele Post provided a presentation on the classification, job description, and salary range of Fleet Superintendent. Specific topics of discussion included classification study of Fleet Supervisor; study results showing performance of managerial work, higher level of authority and decision making, minimal oversight, and project manager duties; recommendation to place in mid -management unit; position alignment with other division managers in Public Works; proposed salary of 15 percent increase and exempt; and concurrence of mid -management bargaining group. Council Member Mounce made a motion, second by Mayor Pro Tempore Nakanishi, to adopt Resolution No. 2017-110 approving classification, job description, and salary range of Fleet Superintendent and approving reclassification of one Fleet Supervisor to position of Fleet Superintendent. 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 1-3 Adopt Resolution Approving Classification, Job Description, and Salary Range of New Customer Service Supervisor and Deleting Two Supervising Customer Service Representatives in the Internal Services Department (CM) Human Resources Manager Adele Post provided a presentation on the classification, job description, and salary range of Customer Service Supervisor. Specific topics of discussion included implementation of strategic and operational changes to improve customer service and streamline processes; cross training of all Customer Service Representatives; oversight in the division and staff; recommendation to eliminate two representatives and replace with one manager position; savings of $30,000; concurrence of mid -management bargaining group; and promotional opportunity. In response to Mayor Pro Tempore Nakanishi, Ms. Post stated that cross training the collections and billing side of the Finance Department will streamline the process, improve customer service, and eliminate duplicity. The division will be renamed to Customer Service Division and there will be one manager supervising all of the staff in the division, which will provide a one-stop shop at one window. In further response, Ms. Post stated the Supervisor position will have higher-level duties, perform as a manager, and have authority over the entire division. Council Member Mounce made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-111 approving classification, job description, and salary range of new Customer Service Supervisor and deleting two Supervising Customer Service Representatives in the Internal Services Department. 13 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. Ordinances — None K. Adjournment Council Member Mounce spoke fondly of Vern Weigum who passed away on June 3, 2017, stating her sister delivered food to him every day during his last days and that her parents worked with him at General Mills. She shared memories of Mr. Weigum and stated she had the utmost respect for him. Council Member Chandler extended his deepest sympathies to Mr. Weigum's family. There being no further business to come before the City Council, the meeting was adjourned at 9:27 p.m., in memory of Vern Weigum. ATTEST: Jennifer M. Ferraiolo City Clerk 14