Loading...
HomeMy WebLinkAboutMinutes - July 19, 2017LODI CITY COUNCIL REGULAR CITY COUNCIL MEETING CARNEGIE FORUM, 305 WEST PINE STREET WEDNESDAY, JULY 19, 2017 C-1 Call to Order / Roll Call The City Council Closed Session meeting of July 19, 2017, was called to order by Mayor Kuehne at 6:36 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) Conference with Adele Post, Human Resources Manager, and Andrew Keys, Deputy City Manager (Labor Negotiators), Regarding Lodi City Mid -Management Association, AFSCME General Services and Maintenance & Operators, Police Mid -Managers, Lodi Police Officers Association, Lodi Police Dispatchers Association, Lodi Professional Firefighters, Lodi Fire Mid -Management, and International Brotherhood of Electrical Workers Pursuant to Government Code §54957.6 (CM) b) Review of Council Appointee — City Clerk to Include Compensation Evaluation (Government Code §54957 and §54957.6) C-3 Adjourn to Closed Session At 6:36 p.m., Mayor Kuehne adjourned the meeting to a Closed Session to discuss the above matters. The Closed Session adjourned at 6:55 p.m. C-4 Return to Open Session / Disclosure of Action At 7:00 p.m., Mayor Kuehne reconvened the City Council meeting. City Attorney Magdich disclosed that Item C-2 a) was direction only with no reportable action. City Manager Schwabauer disclosed that, in regard to Item C-2 b), Council granted the City Clerk a 5 percent incentive for obtaining the Master Municipal Clerk certification, which will be brought back at a future meeting for action. A. Call to Order / Roll Call The Regular City Council meeting of July 19, 2017, was called to order by Mayor Kuehne at 7:00 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 B. Presentations B-1 National Night Out Proclamation (PD) 1 Mayor Kuehne presented a proclamation to Partners Lieutenant Jan Talken proclaiming Tuesday, August 1, 2017, as National Night Out in Lodi. Ms. Talken reported there were 93 parties for the last two years and her hope was to exceed that number this year. She thanked citizens for participating in this event and encouraged residents to contact the Police Department to set up a Neighborhood Watch group and to check out the Nextdoor application. Volunteer & Crime Prevention Coordinator Chet Somera stressed the importance of National Night Out and the partnership between the community and Police, Fire, and emergency medical teams. He thanked Jan Talken and all of the volunteers for arranging the annual event and encouraged the public to contact him at (209) 333-6864 or csomera@lodi.gov to set up a party for August 1. Lodi Police Captain David Griffin also recognized Mr. Somera, the volunteers, and the community for taking an active part in National Night Out. C. Consent Calendar (Reading; Comments by the Public; Council Action) Council Member Chandler made a motion, second by Council Member Mounce, 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 $9,088,592.81 (FIN) Claims were approved in the amount of $9,088,592.81. C-2 Approve Minutes (CLK) The minutes of June 7, 2017 (Regular Meeting), June 7, 2017 (Special Meeting), June 13, 2017 (Shirtsleeve Session), June 20, 2017 (Shirtsleeve Session), June 21, 2017 (Regular Meeting), June 27, 2017 (Shirtsleeve Session), July 4, 2017 (Shirtsleeve Session), and July 5, 2017 (Regular Meeting) were approved as written. C-3 Adopt Resolution Awarding Contract for 2017-2019 Block Wall Repair Program to John D. Wait Masonry, Inc., of Lodi ($45,530) (PW) Adopted Resolution No. 2017-127 awarding the contract for 2017-2019 Block Wall Repair Program to John D. Wait Masonry, Inc., of Lodi, in the amount of $45,530. C-4 Adopt Resolution Awarding Contract for Lodi Public Library Teen Scene Project to Diede Construction, Inc., of Woodbridge ($830,000), Accepting Donation from Library Foundation ($260,000), Accepting Donation from Library Trustees ($100,000), and Appropriating Funds ($927,000) (PW) Adopted Resolution No. 2017-128 awarding the contract for Lodi Public Library Teen Scene Project to Diede Construction, Inc., of Woodbridge, in the amount of $830,000; accepting donation from Library Foundation, in the amount of $260,000; accepting donation from Library Board of Trustees, in the amount of $100,000; and appropriating funds in the amount of $927,000. C-5 Adopt Resolution Awarding Bid for Powerline Clearing and Vegetation Program Management Services to Utility Tree Service, Inc., of Stockton, and Authorizing Electric Utility Director to Execute Extensions ($750,000) (EU) 2 Adopted Resolution No. 2017-129 awarding the bid for Powerline Clearing and Vegetation Program Management Services to Utility Tree Service, Inc., of Stockton, and authorizing the Electric Utility Director to execute extensions, in the amount of $750,000. C-6 Accept Improvements Under Contract for 2017 Finance Parking Lot Resurfacing Project (PW) Accepted improvements under contract for 2017 Finance Parking Lot Resurfacing Project. C-7 Accept Improvements Under Contract for Shady Acres Stormwater Pump Replacement Project (PW) Accepted improvements under contract for Shady Acres Stormwater Pump Replacement Project. C-8 Adopt Resolution Authorizing City Manager to Execute Professional Services Agreement with Hinderliter, de Llamas and Associates for Sales Tax and Economic Analysis, Allocation Audit and Recovery, and Consulting Services ($101,847 Estimate) (CM) Adopted Resolution No. 2017-130 authorizing the City Manager to execute a Professional Services Agreement with Hinderliter, de Llamas and Associates for Sales Tax and Economic Analysis, Allocation Audit and Recovery, and Consulting Services, in the estimated amount of $101,847. C-9 Adopt Resolution Authorizing City Manager to Execute Amendment No. 1 to Professional Services Agreement with Terracon Consultants, Inc., of Lodi, for Construction Testing and Inspection Services for Grade Separation Harney Lane at Union Pacific Railroad Overhead Project ($200,000) (PW) Adopted Resolution No. 2017-131 authorizing the City Manager to execute Amendment No. 1 to Professional Services Agreement with Terracon Consultants, Inc., of Lodi, for construction testing and inspection services for Grade Separation Harney Lane at Union Pacific Railroad Overhead Project, in the amount of $200,000. C-10 Adopt Resolution Authorizing City Manager to Execute Amendment No. 2 to Professional Services Agreement with Lyons Security Services, Inc., of Orange, CA (PRCS) Adopted Resolution No. 2017-132 authorizing the City Manager to execute Amendment No. 2 to Professional Services Agreement with Lyons Security Services, Inc., of Orange. C-11 Adopt Resolution Authorizing City Manager to Execute Improvement Agreement for Reynolds Ranch Buffer Trail Improvements Along Rubicon Apartment Project Frontage (PW) Adopted Resolution No. 2017-133 authorizing the City Manager to execute Improvement Agreement for Reynolds Ranch Buffer Trail Improvements along Rubicon Apartment project frontage. C-12 Adopt Resolution Accepting The Vine at Vintner's Square Subdivision, Unit No. 1 (Tract No. 3865) Public Improvements and Amend Traffic Resolution No. 97-148 by Approving Through Street on Westgate Drive Between Kettleman Lane and Taylor Road (PW) Adopted Resolution No. 2017-134 accepting The Vine at Vintner's Square Subdivision, Unit No. 1 (Tract No. 3865) public improvements and amend Traffic Resolution No. 97-148 by approving a through street on Westgate Drive between Kettleman Lane and Taylor Road. C-13 Adopt Resolution Ratifying the City Manager's Execution of the U.S. Department of Justice Community Oriented Policing Services Grant Application; Authorizing City Manager to Execute Funding Agreement for Purchase of Virtra 100 Simulator Training System, Following Award of Grant; and Appropriating Funds in the 2017/18 Budget ($75,000) (PD) 3 Adopted Resolution No. 2017-135 ratifying the City Manager's execution of the U.S. Department of Justice Community Oriented Policing Services grant application; authorizing the City Manager to execute funding agreement for purchase of Virtra 100 Simulator Training System, following award of grant; and appropriating funds in the 2017/18 Budget in the amount of $75,000. C-14 Adopt Resolution Ratifying the Police Department's Execution of the U.S. Department of Justice Bulletproof Vest Partnership Grant Application; Authorizing City Manager to Execute Funding Agreement for Purchase of 18 Ballistic Armor Vests, Following Award of Grant; and Appropriating Funds ($5,337.86) (PD) Adopted Resolution No. 2017-136 ratifying the Police Department's execution of the U.S. Department of Justice Bulletproof Vest Partnership grant application; authorizing the City Manager to execute funding agreement for purchase of 18 ballistic armor vests, following award of grant; and appropriating funds in the amount of $5,337.86. C-15 Authorize City Attorney to Issue "Comfort Letter" to Farmers & Merchants Bank of Central California, a California Corporation, in Connection with the Purchase of Real Property Located at 233 South School Street, Lodi (CA) Authorized the City Attorney to issue "Comfort Letter" to Farmers & Merchants Bank of Central California, a California Corporation, in connection with the purchase of real property located at 233 South School Street, Lodi. C-16 Adopt Resolution Approving Downtown Shuttle Pilot Route (PW) This item was pulled from the Consent Calendar at the request of Mayor Kuehne for discussion purposes. Mayor Kuehne stated he preferred to postpone the shuttle pilot until the pilot parking meter program is in place, as he felt the two programs should run in tandem. Council Member Johnson countered that it may take a while for the pilot parking meter program to be up and running and, in the meantime, this shuttle route would alleviate parking problems downtown by encouraging people to park in the garage and use the shuttle during store hours (i.e. morning, lunchtime, and end of day). He stated he believes these two pilot programs should not be tied together. Council Members Chandler and Mounce agreed that there appeared to be no connection between the two pilot programs. Council Member Mounce made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-138 approving downtown shuttle pilot route. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Council Member Mounce, and Mayor Pro Tempore Nakanishi Noes: Mayor Kuehne Absent: None C-17 Adopt Resolution Authorizing Appropriation for the Harney Lane Grade Separation Project ($2,006,508) (PW) Adopted Resolution No. 2017-137 authorizing appropriation for the Harney Lane Grade Separation Project, in the amount of $2,006,508. C-18 Adopt Resolution Approving Arts Grants for Fiscal Year 2017/18 (PRCS) 4 This item was pulled from the Consent Calendar at the request of a member of the public. Spencer Dayton stated he was approached by an individual about one of the Arts grant recipients, Changing Faces Theater, and whether or not it qualifies to receive grant funds. After researching the company, he stated he too has concerns about the organization's operations based on his reservations that Changing Faces Theater has an Employer Identification Number, which is different than being a 501c(3) organization filed with the Secretary of State's office; it charges fees that do not qualify as tax deductible; its budget is much larger than the Stockton Civic Theater's, which puts on more shows than Changing Faces Theater; and it received two cease and desist letters until it becomes a 501c(3) organization. Mr. Dayton stated he spoke earlier to City Attorney Magdich and Arts Commission liaison Jennifer Winn about his concerns and that his purpose at the meeting was to encourage Council to look further into the matter before awarding any future grants to Changing Faces Theater. Council Member Mounce stated that, based on her experience with tax returns and filing paperwork for 501c(3) organizations, she was comfortable moving forward with the grant awards. Council Member Mounce made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-139 approving Arts grants for Fiscal Year 2017/18. 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-19 Receive Report Regarding Communication Pertaining to Senate Bill 252 (Dodd) — New Well Permits in Critically Overdrafted Basins (CLK) Received report regarding communication pertaining to Senate Bill 252 (Dodd) - New Well Permits in Critically Overdrafted Basins. C-20 Receive Report Regarding Communication Pertaining to AB 1408 (Calderon); Crimes; Supervised Release (CLK) Received report regarding communication pertaining to AB 1408 (Calderon); Crimes; Supervised Release. C-21 Set Public Hearing for August 2, 2017, to Consider Adopting Resolution Establishing New Fees Relating to Alarm Permits, Alarm Installation, and False Alarms (PD) Set public hearing for August 2, 2017, to consider adopting resolution establishing new fees relating to alarm permits, alarm installation, and false alarms. 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 spoke regarding Lodi's poor population and their difficulty in paying City utility bills. He stated he has addressed Council previously, and written articles in the Lodi News - Sentinel, about placing the topics of high utility bills, Council term limits, and directly -elected Mayor on the agenda. He commented on the agenda item relating to a grant for ballistic vests for 5 the Lodi Police Department, stating he is thankful for the Police and Fire Departments for their hard work. Further, he expressed his opinion that the Library is in need of new computers. E. Comments by the City Council Members on Non -Agenda Items Council Member Mounce reported that she attended the League of California Cities Board meeting last week, at which it passed a policy regarding State pensions in the California Public Employees Retirement System (Cal -PERS) crisis. The League previously has not taken a hard stance on pension reform, other than working with the Governor on the Public Employee Pension Plan, Reporting and Accountability Act, but in light of the looming problems facing California cities within the next five years, the League felt it was important to pass a formal approach in working with the Cal -PERS Board and the Governor. In addition, Council Member Mounce reported that Senate Bill (SB) 649, which would allow AT&T and Verizon to construct cell towers anywhere without public comment or controls, is moving quickly through the legislative process. She strongly urged citizens to contact their State Senator and Assemblymember to voice opposition to SB 649. Further, in response to a citizen concern expressed to her about Council Members traveling on behalf of the City, Council Member Mounce stated that all of her travel on behalf of the League of California Cities is paid for by the League, not the City, and that she takes personal leave from her employment to represent the City in that capacity. Council Member Johnson commented on a recent article in the Lodi News -Sentinel that all parks will be posted prohibiting alcohol, stating that, despite his strong support of parks and recreation, he is opposed to this new ruling. The Parks, Recreation, and Cultural Services Director took this action to address the increasing number of individuals who drink in the parks and cause problems. Council Member Johnson stated he is not opposed to disciplining individuals who do not follow the rules, but this action penalizes those who do not abuse the regulations. Under the new rule, park patrons could not sit on a blanket in the park on a warm evening with a glass of wine or fish at the lake and have a beer; if so, they would be fined or ticketed. Alcohol will only be allowed for those with an advance reservation or attending a City -sponsored event. He stated he understands the position the Department is in, but he believed there has to be another option that does not penalize average, rule -abiding citizens. F. Comments by the City Manager on Non -Agenda Items None. G. Public Hearings G-1 Public Hearing to Consider Adopting Resolution Approving 2017/18 Final Annual Action Plan for the Community Development Block Grant Program (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 approving 2017/18 Final Annual Action Plan for the Community Development Block Grant Program (CDBG). Patrice Clemons, CDBG Program Specialist, provided a PowerPoint presentation regarding the 2017 CDBG Program and 2014-2018 Consolidated Plan. Specific topics of discussion included 2017/18 Annual Action Plan process, supplemental funds through reallocation, 2017/18 allocation amount, public service cap, summary of citizen participation process, memorandum regarding CDBG funding to One -Eighty Teen Center, Final Action Plan document, submittal to Department of Housing and Urban Development, and recommended action. Council Member Mounce commended staff for ensuring the One -Eighty Teen Center is eligible to receive funding for its project. Further, she recognized the graffiti abatement program and officers for working quickly to take care of graffiti on the east side, adding it is a good use of CDBG funds. Mayor Kuehne opened the public hearing for public comment. 6 Vanessa Lauchland pointed out the Meals on Wheels Program did not receive its full $10,000 funding request and questioned how the City can justify approving $78,000 for fagade improvements at the Teen Center but not feed Lodi's hungry citizens. Ms. Clemons pointed out there is a public service cap, which cannot be exceeded. City Manager Schwabauer added that public funding comes with many rules, there is a restriction on service - related requests, and most of the funding goes toward capital projects. He pointed out that in previous years Lodi provided funding for several kitchens in Lodi to feed the homeless and elderly, including the LOEL Center and the Lodi Salvation Army. David Diskin presented a handout (filed) outlining his concerns regarding the proposed 2017/18 CDBG funding of the One -Eighty Teen Center, which included project scope, discrimination in use of facility, income earned from rental of facility, use of facility, and what would happen if the loan cannot be repaid. Mr. Diskin's memorandum further outlined concerns regarding prior One - Eighty Teen Center CDBG grants. Mr. Diskin expressed concern with the draft One -Eighty Teen Center calendar and use schedule prepared by staff, stating the administrative/operation hours should not be counted because there is no programming or activities during that timeframe, which would reduce the beneficiary hours by 25. He suggested the City require a co-signer on the chance the loan cannot be repaid either by not reaching established goals or by failing to pay the lease. Mr. Diskin pointed out the group was funded twice in the past and records show the Center's past performance did not reach its goals. He stated the current funding request would fund improvements to a building that only sees California Department of Housing and Urban Development (HUD) benefits 19 hours a week and receives rental income from the church while sitting idle 75 percent of the time. He encouraged Council to vote in support of the remaining CDBG applications but to hold off on funding the One -Eighty Teen Center until the matter regarding its religious activities can be addressed. Council Member Mounce pointed out that CDBG funds went to the Salvation Army in the past and questioned why Mr. Diskin did not have the same concerns since it is also a religious -based organization. Mr. Diskin responded there never was a question of separation of church and state regarding the Lodi Salvation Army because it served the public and met, and often exceeded, its goals. He stated that both the Salvation Army and LOEL Center reached a 100 percent score on its goals, while the Teen Center is at 60 percent. Council Member Johnson stated that quite a bit of data was provided in Mr. Diskin's memorandum and questioned if it is possible to award the remaining grants and hold back funding for the Teen Center while still meeting the August deadline because he was under the impression only a complete application can be submitted; not one with partial funding. Mr. Schwabauer stated, if that is the direction, Council would need to find another recipient to receive those funds and wait until next year to reconsider the Teen Center's request. Ms. Clemons confirmed the application cannot be submitted without all of the funds being allocated. She stressed that the Annual Action Plan is simply a plan and that funds are not awarded until such time that the sub -recipient agreements, which are lengthy contracts, are signed. The terms of the contract with the One -Eighty Teen Center will be vetted, analyzed, and reviewed by HUD before it is fully executed. Council Member Johnson summarized that, if Council moves forward with the One -Eighty Teen Center, it would still undergo a vetting process to address any unanswered questions or concerns, to which Ms. Clemons stated the review would deal with program income, what the consequences would be if the Center did not meet the monitoring requirements, and how the organization would pay back funds should that occur. City Attorney Magdich confirmed the issues in Mr. Diskin's memorandum, with the exception of prior grants, would be addressed in the sub -recipient agreement. Anything relating to prior grants would be addressed separately. She stated the repayments, percentage of secular versus non - secular time, and the service requirement would remain the same and the grant would be set up as a five-year forgivable loan. If the Center does not meet the requirements laid out in the agreement, it will pay back the funds, 20 percent each year for five years. Staff will collect data, which will continue to be reviewed and monitored by HUD on a regular basis. Council Member Mounce reiterated this is truly a plan and there is an opportunity to review the funding when it comes back mid -year for any reappropriations should a project cost less than 7 anticipated or not move forward as planned. She believed there will be plenty of opportunities to address any future concerns. Council Member Mounce further pointed out that this may be a moot point next year if the President eliminates CDBG funding. Ultimately, Council Member Mounce stated she felt confident the program is adhering to the regulations because, in addition to staff and City Attorney review, the CDBG program is also thoroughly reviewed by HUD, as well as the City's auditors. Mayor Pro Tempore Nakanishi read for the record the following HUD statement in its determination letter (filed): "Upon review of the summary, the Department has determined that 68 percent of the cost of the improvement is a reasonable rate to charge CDBG, subject to the five-year requirement stated at 24 CFR Section 570.503(b)(8).' There being no further public comments, Mayor Kuehne closed the public hearing. Council Member Mounce made a motion, second by Council Member Chandler, to adopt Resolution No. 2017-140 approving 2017/18 Final Annual Action Plan for the Community Development Block Grant Program. 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 Continued Public Hearing to Consider Introducing Ordinance Amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by Repealing and Reenacting Chapter 13.20.290, "Schedule EP — Energy Purchase" (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 reenacting Chapter 13.20.290, "Schedule EP - Energy Purchase." Rates and Resources Manager Melissa Price provided a PowerPoint presentation regarding the Energy Purchase (EP) Schedule. Specific topics of discussion included the EP Schedule, supporting green energy, solar power, net energy metering (NEM), challenges with NEM, post NEM solution, avoided cost, post NEM - other utilities, EP comparison, implementation schedule, and recommendation. Council Member Mounce referred to the Blue Sheet letter from citizen Ryan Wentz (filed), stating he makes the point that people who install solar are buying miniature power plants and are responsible for the cost, yet the City is able to by the power for 6 cents and sell it back for a higher price. City Manager Schwabauer responded that rate payers are funding a share of that cost. Council Member Mounce quoted the letter that the Lodi News -Sentinel reported in 2015 that the fixed monthly charge would cover the cost of distributing power and maintaining the grid and rates could be lowered; however, it could increase costs to low-energy users and discourage solar customers. Mr. Schwabauer responded that the article is not entirely accurate because staff at the time advocated for a higher fixed charge because it felt it was not adequate. Council Member Mounce questioned why the fixed rate was not increased if that was the recommendation, to which Mr. Schwabauer responded that Council did not take the staff recommendation. He further stated the City is trying to be fair to solar customers with this new approach. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer confirmed this public hearing is solely for solar rates and that the main electric rates were set for customers roughly five months ago without the solar component. Further, Mr. Schwabauer responded that this rate will reimburse a portion of the cost for Lodi's grid and represents a compromise from staffs original recommendation in that solar customers will pay a greater share, but not the full share. Mayor Pro 8 Tempore Nakanishi questioned if solar customers are receiving a greater benefit, to which Mr. Schwabauer responded they will receive a greater benefit than staffs original recommendation, but not greater than NEM, which they were receiving initially before the City reached the cap. Mayor Kuehne opened the public hearing for public comment. Dale Munsch questioned what the wholesale rate is when the City buys power from others, to which Ms. Price responded that wholesale power on the market ranges from 2 to 3 cents and is roughly $20 to $30 dollars a megawatt hour. Jeannette Warneke, in regard to an earlier comment by Council Member Mounce that her mother's PG&E bill for solar is $10 a month, questioned what her bill was prior to switching to solar, and the response was $145 a month. Chris Wilkinson with 1st Light Energy stated he appreciates the time staff put into this issue and in working with those in the solar field. He stated Lodi's proposed program is similar to Alameda's and a few others' and questioned if the percentage of solar customers dropped after implementation of their programs. Ms. Price responded that she does not have that data because many of the entities recently rolled out and implemented their programs, while Palo Alto opted to extend the solar cap program. Mr. Wilkinson stated he works for a small solar company and can report that solar interest has drastically reduced since NEM ended. Most of the customers are frustrated with the delay in the decision because they are trying to be responsible and go through proper channels, but they have been on hold while the City figures out how to proceed. In response to Mayor Pro Tempore Nakanishi, Mr. Wilkinson stated he has been with his current company for three years, solar systems generally last 20 years, and he was uncertain how expired solar systems are disposed. Don Daley expressed frustration with the delay and a lack of confidence in the new program and questioned why the City did not put a new program in place before the previous program ended. He stated he believes the City should have been prepared, knowing that NEM would end, and should have had a replacement program ready to implement. Mr. Schwabauer explained that the original proposal for a replacement program was less beneficial to solar customers and, at that time, the solar industry requested the City re-evaluate the proposal. Staff returned with a more beneficial program as a compromise. Mr. Daley responded that the frustration is the City stopped accepting applications because there was no program in place and the City should have been ready in anticipation of NEM ending. Mr. Schwabauer explained there was no way to anticipate how quickly the solar industry would advance because some solar manufacturers took up a good portion of the reserve and other customers came in with massive applications, all of which were unanticipated and resulted in the City hitting its cap more quickly than expected. Ms. Price stated that staff also needed time to set up a meter to read solar and ensure it was registering correctly and integrating smoothly with the billing system to avoid any problems on the metering or billing side. Jim Jenner with Fusion Power Design thanked Business Development Manager Adam Brucker and Ms. Price for meeting with solar industry representatives over the last seven months, listening to the concerns, and demonstrating genuine interest in the issues. He stated it is evident the City will not return to NEM, unlike PG&E which is continuing the program along with a small charge and SMUD which is continuing it as -is. Lodi, unfortunately, does not have the capability of metering time of use and charging for peak demand like PG&E and SMUD. Mr. Jenner stated his concern with the proposed program is the 6 cent avoided cost because it does not take into consideration the environmental and distributed power benefits. Solar systems generate more than the consumption and serve as miniature power plants that put power back where it should be. He felt that 6 cents does not address all solar has to offer and pushes the need for a battery. He stated that customers are willing to pay for the grid, but at a reasonable price. In response to Mayor Pro Tempore Nakanishi, Mr. Jenner stated that solar panels generally last 9 20 to 30 years and are recycled like any other electronic item. In response to Council Member Mounce, Mr. Jenner suggested 10 cents would be ideal versus the proposed 6 cents and would avoid the need to add a battery onto a system. Ms. Price thanked Mr. Jenner for his input, stating they had a productive dialog and each learned a lot in their many discussions during this process over the past several months. Ryan Wentz stated he applied for solar in January and expected to have his system in place this summer in order to experience savings over the hot months; however, NEM ended and the solar industry was put on hold. He expressed frustration in the delay, stating his high utility bills could have been payments toward a solar system instead. He stated he understands NEM cannot continue; however, he wished a replacement program had been in place as soon as it ended so customers could move forward with their projects. Mr. Wentz stated that, under the proposed program and rate, it would take 25 years to break even on a $20,000 solar system and he believed many homeowners would not remain in their homes that long. He believed the new plan will severely hurt the installations and support for solar in the City and he anticipated there will be a drastic drop in applications because the savings is no longer there. There being no further public comments, Mayor Kuehne closed the public hearing. Council Member Mounce stated the proposal does not create incentive to move forward with solar and does not begin to fix the problem; therefore, she would not support the recommendation as presented. She stated the suggestion of 10 cents for the avoided cost is more reasonable and that a monthly EP charge of $50 is too high. In response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer explained it is important to put a program in place because customers are frustrated in the delay. He suggested that, if Council cannot support the proposal, it provide direction so staff can return quickly with an alternative. With regard to $50 being too high for someone who spent $20,000 on a solar system, he stated the other factor is that ratepayers who do not have solar systems are paying the price. He stated the cost has to be collected somewhere and asked who should bear the cost. If Council would rather support solar and subsidize the cost through ratepayers, it can make that decision, but it must be made clear that it comes at a cost to someone. In further response to Mayor Pro Tempore Nakanishi, Mr. Schwabauer reiterated that this proposal is a compromise between the original proposal of full -cost recovery and no recovery at all. He stated the City must set a rate for solar energy so customers are charged under the appropriate rate schedule. In response to Council Member Mounce, Mr. Schwabauer stated the EP charge is not high enough to pay the City's fixed costs and should realistically be in the $80 range. Council Member Mounce made a motion to introduce ordinance amending Lodi Municipal Code Chapter 13.20 — Electrical Service — by repealing and reenacting Chapter 13.20.290, "Schedule EP — Energy Purchase," with the amendment of a 10 cent avoided cost (instead of 6 cents) and a $35 monthly energy purchase charge (instead of $50). The motion failed for lack of a second. Council Member Chandler made a motion, second by Council Member Johnson, to introduce Ordinance No. 1944 amending Lodi Municipal Code Chapter 13.20 - Electrical Service - by repealing and reenacting Chapter 13.20.290, "Schedule EP - Energy Purchase," as proposed. VOTE: The above motion carried by the following vote: Ayes: Council Member Chandler, Council Member Johnson, Mayor Pro Tempore Nakanishi, and Mayor Kuehne Noes: Council Member Mounce Absent: None H. Communications 10 H-1 Appointments to Greater Lodi Area Youth Commission, Lodi Arts Commission, Planning Commission, and Library Board of Trustees; and Re -Post for Remaining Vacancies on Greater Lodi Area Youth Commission and Lodi Arts Commission (CLK) Council Member Mounce made a motion, second by Mayor Pro Tempore Nakanishi, to make the following appointments and direct the City Clerk to post for the following vacancies: APPOINTMENTS: Greater Lodi Area Youth Commission Student Appointees: Hope Lorentzen, term to expire May 31, 2019 Jasmine Shukla, term to expire May 31, 2019 Davis Mahoney, term to expire May 31, 2019 Ashley Delu, term to expire May 31, 2019 Adult Advisor: Jennifer Phillips -Lorentzen, term to expire May 31, 2020 Lodi Arts Commission Catherine Metcalf, term to expire July 1, 2020 Planning Commission Debbie Olson, term to expire June 30, 2021 Mitchell Slater, term to expire June 30, 2021 Library Board of Trustees David Main, term to expire June 30, 2020 POSTINGS: Greater Lodi Area Youth Commission Adult Advisors: Daniel Valdez, term to expire May 31, 2018 Nicole Grauman, term to expire May 31, 2020 Lodi Arts Commission Edward Casillas, term to expire July 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 I. Regular Calendar 1-1 Adopt Resolution Approving Incentive Pay for Certified Playground Safety Inspector (CM) Deputy City Manager Andrew Keys provided a presentation regarding incentive pay for Certified Playground Safety Inspector. Specific topics of discussion included Health and Safety Code requirements for a certified inspector, training and knowledge for identifying and removing hazards, responsibilities previously performed by Park Superintendent who retired in 2016, recently -certified employee who will fulfill the duty, request for incentive for obtaining certification and taking on the responsibility, cost savings to incentivize employee versus hire third -party vendor, and concurrence by AFSCME bargaining group. 11 Council Member Johnson made a motion, second by Council Member Mounce, to adopt Resolution No. 2017-141 approving incentive pay for Certified Playground Safety Inspector. 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 There being no further business to come before the City Council, the meeting was adjourned at 8:56 p.m. ATTEST: Jennifer M. Ferraiolo City Clerk 12