CITY OF ELK GROVE Incorporated. July 1, 2000  MINUTES OF THE CITY COUNCIL REGULAR MEETING Wednesday, October 9, 2013  CALL TO ORDER/ROLL CALL  Mayor Davis called the regular City Council meeting of October 9, 2013 to order at  6:02 p.m. Present: Absent:  Mayor Davis, Vice Mayor Detrick and Council Members Cooper, Hume  and Trigg. None  Council Member Cooper led the Pledge of Allegiance. Mayor Davis asked that a moment of silence be observed.  APPROVALOF AGENDA  Motion: M/S Hume/Detrick to approve the agenda as presented. The motion passed  by the following vote: Ayes: 5; Noes: 0; Absent: 0.  CLOSED SESSION None.  PRESENTATIONS/ANNOUNCEMENTS  4.1 Presentation on the Elk Grove Winter Sanctuary (EG WINS) by Fred Bremerman With the aid of an overhead presentation (filed) and informational flyers (filed), Mr. Bremerman reviewed the EG WINS program, a temporary, nine week emergency shelter designed for serving up to 25 homeless persons in Elk Grove. The program would be offered through a number of host churches and individuals' homes in the community, and staffed by volunteers. The program was being conducted in coordination with Sacramental Self-Help Housing and Elk Grove Food Bank Services, Ms. Strom noted the EG WINS program was recruiting volunteers and pursuing fundraising through charter memberships, noting the program currently had 20 charter members with a goal to attain 150 charter members. Afundraiser event was also being 4.2 Proclamation declaring October 2013 as Domestic Violence Awareness Month  and Linda Strom.  and supported by local businesses.  held on November 2 at the Emerald Lakes Golf Course.  presented to Julie Bornhoeft of WEAVE.  Elk Grove City Council Regular Meeting, October 9, 2013 Page 1of16    Note: Item 4.4 was heard prior to Item 4.3  4.4 Proclamation declaring October 15, 2013 as White Cane Safety Day presented 4.3 Proclamation declaring October 2013 as Disability Awareness Month presented 4.4 Preclamation-decianng.ocober5,201328WheCaane-SafelyDay  toTed Clark.  to the Disability Advisory Committee.  4.5 Recognition of the City of Elk Grove Disability Advisory Committee's 7th Annual Above and Beyond Program Accessibility Award Recipients Tina Calanchini of Project RIDE and Anne-Marie Pringle of Musical Mayhem Productions.  PUBLIC COMMENT  Jackie Lewis presented a plaque to the City Council thanking the City for its continuing Jeff Alves stated he was raising charity funds for the National Mucopolysacchandoss (MTS) Society by participating in the Ironman Arizona competition, and offered flyers Lynn Wheat stated her opposition to the Sphere of Influence (SOI) application. She provided pictures (filed) of new homes in the area, noting an abundance of homes being re-sold in such new neighborhoods, neighborhoods which she believed were poorly planned and were now falling into disarray. She believed the City would continue to approve projects that would result in failed neighborhoods, and such land use decisions were not in the best interest of residents now or as part of a future SOI area. Mike Monasky questioned the background of the company P3 International and financial history of company president Jeroen Gerrese for the Aquatic Center project. Bryan Prater stated the Tea Party Patriots of Elk Grove had been denied entry to take Mayor Davis noted the parade was not operated by the City, but the matter could be Mark Doty voiced support for continuing to provide trail amenities and trail system connections, noting his support of public comment made at the September 25 meeting for increased trails near Mosher Road and the eastern, rural section of the City.  support of the Strauss Festival of Elk Grove.  with details about the event, the MTS Society, and means to donate.  part in the Elk Grove Veterans Day Parade. discussed with the parade organizers.  GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the October 9, 2013. Administrative Report (filed).  COUNCIL COMMENTS/REPOREPORTS/FUTURE AGENDA ITEMS  Council Member Trigg participated in the disability awareness day training hosted by the Disability Advisory Committee. He attended the October 2 Sacramento Local Agency  Elk Grove City Council Regular Meeting, October 9, 2013 Page2of16    Formation Commission (LAFCo) meeting, which received a presentation from Elk Grove GRASP opposing the City of Elk Grove's SOI application, which he believed would have been more appropriately scheduled when the actual SOI application was before the LAFCO Board for consideration. Mr. Trigg stated he served on the Mayor's Volunteer Council Member Hume attended the Sacramento Regional Transit District (RT) Board meeting and the 35th anniversary celebration for Paratransit, Inc. He received a briefing from Sacramento Regional County Sanitation District Engineer Prabhakar Somavarapu on the projected costs for plant upgrades and corresponding fee increases needed to complete the project. He appreciated Public Works staff responding to inquiries on maintenance of vegetation in creeks, and assisting a business in Old Town with street lighting issues. Mr. Hume requested the Conditional Use Permit (CUP) for the prior Eden Group Home on Jetmar Way be evaluated, as he understood the facility had closed but was being transferred to different ownership, and he wanted to verify if the CUP still applied under different ownership, if the provisions to allow up to twelve beds instead of six still applied, and if the facility would continue to utilize the CUP if the new Council Member Cooper met with District Engineer Somavarapu regarding plant upgrades and corresponding fee increases that would come before the Sacramento Regional County Sanitation District Board. He attended the Cosumnes Community Services District's Giant Pumpkin Festival event. Mr. Cooper asked staff to maintain communications with the Altamont Corridor Express (ACE) train line to make Council Member Detrick attended a show by Musical Mayhem Productions Children's Musical Theatre, the Elk Grove Soap Box Derby, the Fittest of Elk Grove event, and the rotary Beef and Reef dinner. He attended the LAFCO meeting to hear the presentation from Elk Grove GRASP, and addressed the LAFCo Board to reaffirm the City Council's support of the SOI application. He noted attending fundraiser events for the Elk Grove Future Farmers of America and the Cosumnes River College Taste & Toast event, a presentation was given in the Elk Grove Library on October 5 about the Patient Protection and Affordable Heathcare Act under Covered California, and the Stop Stigmas Sacramento Speakers Bureau would be hosting a public workshop in the Council Chamber on October 10. Mr. Detrick commended Connor Aguilar, who was recognized by the Sacramento County Board of Supervisors, for his achievements representing the United States at the World Disabled Waterski Championships in Milan, Mayor Davis participated in the disability awareness day training hosted by the Disability Advisory Committee, and presented a recognition to the nurses at Dignity Health for National Emergency Room Nurses Day. Mayor Davis highlighted the Quarterly Report provided by Public Affairs staff, providing a summary of public affairs related issues.  Awards committee.  operations were meeting all requirements.  connections through the future Elk Grove multi-modal station.  Italy.  CONSENT CALENDARITEMS PUBLIC COMMENT None.  Elk Grove City Council Regular Meeting, October 9,2013 Page 30f16    Motion: M/S Detrick/Cooper to approve the Consent Calendar as presented. The Agenda Item No. 8.1: Approved City Council meeting Minutes of June 26, 2013 Agenda Item No. 8.2: Received report on City Manager approved purchases and contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and Agenda Item No. 8.3: Received report on Requests for Proposals, Qualifications, and Agenda Item No, 8.4: Adopted Ordinance No. 18-2013 amending the City of Elk Grove Zoning Map from Agricultural Residential 5-acre minimum (AR-5) to Agricultural Residential 2-acre minimum (AR-2) for the Soares Parcel Map Project (EG-13-027), Agenda Item No. 8.5: Resolution No. 2013-188 adopted amending the Fiscal Year 2013-14 Budget to provide funding for phase one of the Sheldon Commercial Agenda Item No. 8.6: Resolution No. 2013-189 adopted authorizing the Mayor to execute Amendment No. 3 to the Employment Agreement with Jason Lindgren for the Agenda Item No. 8.7: Resolution No. 2013-190 adopted approving Subdivision No. 03-493.02, Allen Ranch Village 1 and Subdivision No. 03-493.03, Allen Ranch Village 2 Final Maps, and authorizing the City Manager to execute the Subdivision Agenda Item No. 8.8: Resolution No. 2013-191 adopted approving Subdivision No. 05-977, Diamante Subdivision Final Map and authorizing the City Manager to  motion passed by the following vote: Ayes: 5; Noes: 0; Absent: 0.  special meeting  Purchasing, filed through October 2, 2013  Bids  Assessor Parcel Number 127-0280-015 (Second Reading)  Amendments  position of City Clerk  Improvement Agreements  execute the Subdivision Improvement Agreement  PUBLIC HEARINGS Agenda Item No. 9.1: APN: 132-2170-001) RECOMMENDATION: Adopt resolution:  A public hearing to consider a Determination of Public  Convenience or Necessity for sale of beer, wine, and liquor for off-site consumption (Type 21 License) for Wal-Mart store located at 10075 Bruceville Road (EG-13-051;  1) Finding the Wal-Mart PCN project (EG-13-051) exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of Division 6 of Chapter 3 of Title 14 of the California Code of Regulations (State CEQA  Guidelines); and  Elk Grove City Council Regular Meeting. October 9,2013 Page 4of16    2) Approving a Determination of Public Convenience or Necessity (PCN) for the Wal- Mart PCN project (EG-13-051) subject to the findings and conditions of approval With the aid of an overhead presentation (filed), Sarah Kirchgessner, Senior Planner, provided an overview of the staff report and recommendation. The project site was located in a census tract considered over concentrated as defined by the California Department of Alcoholic Beverage Control (ABC). ABC allowed two licenses before a census tract was considered over concentrated, three active licenses existed and the application would be the fourth. Ms. Kirchgessner display the three active licenses, two by the State Route 99 highway, and one south outside the City limits, with other retail outlets located approximately one mile north of the project site. Wal-Mart would have security measures in place and the Police Department had no public safety issues  included in the proposed resolution.  raised with this request.  Mayor Davis declared the public hearing open.  Miriam Montesinos, applicant representative on behalf of Wal-Mart, noted the location for the request was not designated a high crime area, and the majority of the census tract was residential, making the commercial site a convenience for neighboring residents. The alcohol sales area would be less than 1% of the total store area, would provide a convenience to shoppers, increase store sales, and a security plan was in  place to ensure sales were implemented in a safe and secure manner.  PUBLIC COMMENT:  Mike Monasky believed general public health should be considered when reviewing a Public Convenience or Necessity (PCN) letter, and alcohol was a factor in adverse public health outcomes. He opposed approving this PCN letter, believing there were numerous locations to purchase alcohol, and allowing additional locations provided Mark Doty cited examples of PCN letters being pursued after locations had received Miriam Montesinos responded to public comment that PCN letter requirements were tied to crime statistics and population counts in census tracts, and was not limited to health and safety concerns from a health perspective. The ABC formula established how many licenses could be issued based upon population, and a factor in obtaining a license was based on when licenses became available for sale and the state application  more exposure to the public to the restricted substance of alcohol.  their initial approvals and entitlements.  process.  Mayor Davis declared the public hearing closed.  Motion: M/S Hume/Detrick to adopt Resolution No. 2013-192 finding the Wal-Mart PCN project (EG-13-051) exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of Division 6 of Chapter 3 of Title 14 of the California Code of Regulations (State CEQA Guidelines); and approving a Determination of Public Convenience or Necessity (PCN) for the Wal-Mart PCN project  Elk Grove City Council Regular Meeting, October 9, 2013 Page 50f16    (EG-13-051) subject to the findings and conditions of approval included in the proposed resolution. The motion passed by the following vote: Ayes: 3; Noes: 2 (Davis, Agenda Item No. 9.2: A public hearing to consider a Determination of Public Convenience or Necessity for sale of beer, wine, and liquor for off-site consumption (Type 21 License) for The Fresh Market located at 7707 Laguna Boulevard #140 (EG-  Cooper); Absent: 0.  13-045; APN: 116-1160-004) RECOMMENDATION: Adopt resolution:  1) Finding The Fresh Market PCN project (EG-13-045) exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of Division 60 of Chapter 3 of Title 14 of the California Code of Regulations (State CEQA 2) Approving a Determination of Public Convenience or Necessity (PCN) for The Fresh Market PCN project (EG-13-045) subject to the findings and conditions of approval With the aid of an overhead presentation (filed), Gerald Park, Senior Planner, provided an overview of the staff report and recommendation. He noted the location was the former site of a Save Mart supermarket that closed June 2012. The project site was determined by ABC as over concentrated and high crime. ABC had ten licenses identified within the census tract, though two licenses had been surrendered they counted toward the total count (the two licenses suspended were the Save Mart license, and the Target store had a type 20 license which was upgraded to a type 21 for liquor). The count also included the' Walgreens store across the street outside the census tract.  Guidelines); and  included in the proposed resolution.  Mayor Davis declared the public hearing open.  Beth Aboulafia, applicant representative on behalf of the Fresh Market, noted the store had opened a few weeks ago in the Laguna Crossroad Shopping Center at the former Save Mart location which did have a Type 21 alcohol license for its operations. She stated the Fresh Market was a full service grocery store, and the ability to purchase alcoholic beverages at a grocery store was fairly commonplace and a convenience  customers expected. PUBLIC COMMENT:  Mike Monasky believed that though ABC was only regulated by the California Business and Professions Code, that public health considerations should be a factor in local communities deciding on a PCN letter. He felt the issue was about access to alcohol, and how such availability can affect alcoholism and adverse health outcomes, access to Beth Aboulafia responded to public comment that the issues raised related to larger social questions than the application request to provide for the ability of a full service  alcohol by minors, and increased numbers of impaired drivers.  grocery store to sell alcoholic beverages.  Elk Grove City Council Regular Meeting, October 9, 2013 Page 6 of16    Mayor Davis declared the public hearing closed.  Mayor Davis related his experience seeing a proliferation of liquor stores on Folsom Boulevard in Rancho Cordova, and stated he reviewed PCN letter requests on Council Member Cooper noted the former Save Mart had a license at the same location before, and the commercial center had multiple locations with retail liquor licenses. Motion: M/S Cooper/Hume to adopt Resolution No. 2013-193 finding The Fresh Market PCN project (EG-13-045) exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of Division 6 of Chapter 3 of Title 14 of the California Code of Regulations (State CEQA Guidelines); and approving a Determination of Public Convenience or Necessity (PCN) The Fresh Market PCN project (EG-13-045) subject to the findings and conditions of approval included in the proposed resolution The motion passed by the following vote: Ayes: 4; Noes:1 Agenda Item No. 9.3: A public hearing to consider adoption of an ordinance repealing and reenacting Chapter 17.04 of the Elk Grove Municipal Code relating to the Fire Code  individual merit but generally was inclined to vote against them.  (Davis); Absent: 0.  and adopting the 2013 Edition of the California Fire  RECOMMENDATION:  Introduce and waive the full reading, by substitution of title only, an ordinance repealing and reenacting Elk Grove Municipal Code Chapter 17.04 relating to the Fire Code and adopting by reference the 2012 Edition of the International Fire Code, as published by the International Code Council and the 2013 California Fire Code, based on the 2012  Edition of the International Fire Code The verbal staff report was waived. Mayor Davis declared the public hearing open.  PUBLIC COMMENT: None.  Mayor Davis declared the public hearing closed.  Motion: M/S Hume/Detrick to introduce and waive the full reading, by substitution of title only, Ordinance No. 19-2013 repealing and reenacting Elk Grove Municipal Code Chapter 17.04 relating to the Fire Code and adopting by reference the 2012 Edition of the International Fire Code, as published by the International Code Council and the 2013 California Fire Code, based on the 2012 Edition of the International Fire Code The  motion passed by the following vote: Ayes: 5; Noes: 0; Absent: 0. REGULAR AGENDA ACTION TEMS/RECOMMENDATIONS  Agenda Item No. 10.1: Adopt Short Range Transit Plan (SRTP) Update for Fiscal  Years 2014-2020  Elk Grove City Council Reguiar Meeting, October 9,2 2013 Page 7of16    RECOMMENDATION:  Adopt resolution adopting the Short Range Transit Plan Update for Fiscal Years 2014- With the aid of an overhead presentation (filed), Jean Foletta, Transit System Manager, presented an overview of the staff report and recommendation. In August the City partnered with Sacramento Area Council of Governments (SACOG) to commence the Short Range Transit Plan (SRTP) update. The SRTP served as a roadmap for transit systems to plan projects and services, and this cycle covered Fiscal Year 2014 through 2020. The public comments received were categorized as addressing fixed route, weekend service, and commuter services schedule modifications and connectivity to other transit systems, and efficiencies for the Purple Route. SRTP recommendations. were implementation of route efficiency in all service areas, identifying staffing roles for both City and contractor staffing, and enhancing reporting and marketing strategies. The SRTP itself did not implement any program changes, transit staff would continue to analyze the comments and the SRTP recommendations and wouid return with  2020  recommendations for service changes.  PUBLIC COMMENT:  Mike Barnbaum, representing Here We Ride, appreciated the process of the SRTP, and recommended commuter services expand to connection to the Sacramento train station toa access the Capitol Corridor, California Zephyr, and the Coast Starlight Amtrak routes, and to consider connections to the San Joaquin Station for connections to the San Joaquin route. He believed transit services should utilize Cosumnes River College and the future light rail line as a regional transit link hub, and plan to provide services in conjunction with events planned for the sports complex contemplated in downtown Terence Thompson, General Manager for e-tran provided through MV Transportation, supported the SRTP recommendations to improve transit system delivery. Ted Clark requested the Purple Route be revised and enhanced, and he recollected the City Council had directed that the Purple Line be promoted as a shadow route of commuter lines heading to Sacramento. He stated the route only runs 2 miles into Elk Grove before leaving for Sacramento, the route had ineffective pickup locations outside of Elk Grove, and the route had not been adequately advertised nor promoted. Karen Grussenmeyer supported continuation of the Purple Route, encouraging the use of the line as a shadow bus to regular commuter routes to alleviate overcrowding. Motion: M/S Detrick/Trigg to adopt Resolution No. 2013-194 adopting the Short Range Transit Plan Update for Fiscal Years 2014-2020. The motion passed by the Agenda Item No. 10.2: Presentation of the Civic Center Aquatics Complex Proposal and Resolution for Phase I Professional Services Contract with P3 International totaling  Sacramento.  following vote: Ayes: 5; Noes: 0; Absent: 0.  $695,739  Elk Grove City Council Regular Meeting. October 9, 2013 Page 8of16    RECOMMENDATION:  Receive a presentation of the Civic Center Aquatics Complex Proposal and adopt resolution authorizing the City Manager to execute the Phase I professional services contract with P3 International for the Elk Grove Aquatics Center in the amount of With the aid of an overhead presentation (filed), Rebecca Craig, Assistant City Manager presented an overview of the staff report and recommendation. The Aquatics Center would be the first amenity to be delivered at the Civic Center site, consisting of competition facilities of an Olympic pool and dive tower, bleacher seating, dressing room and concession facilities, as well as a water and adventure park on 20 acres. The proposed City portion of the funding source was restricted capital specifically for amenities at the Civic Center, and the funding could not be used for operations or amenities elsewhere in the City. A request for proposals was released July 1 and one bid was received August 16 by P3 International. The submitted proposal had an estimated cost for the project of $49 million, and did not identify funding beyond the City's contribution. The submitted conceptual business plan identified a scenario for a funding structure, suggesting revenues generated by the water and adventure parks were able to subsidize the competition facilities annually, as well pay identified debt payment, and still provide an operational profit. The environmental review for the project had commenced, and the studies were underway to align with the design work. With the aid of an overhead presentation (filed), Steve Newsom, Architect with LPA, member of the P3 International team, provided an overview of the conceptual design, noting actual architecture of the built project would not be defined at this phase. He displayed the relationship of the site plan with surrounding uses, showed placement of the competition facility and water / adventure park site, and noted a strong pedestrian access running north-south in the site to accommodate movement and serve as a potential event space as well. The competition facility implemented park space for teams to stage for events or provide for future build-out needs, and noted facility buildings were situated between the competition facilities and commercial park to collocate uses. He noted the adventure park element of the commercial facility would extend operations year round, not just the seasonal facility of a water park, and would implement materials, colors, finishes, screening elements and landscaping to minimize the appearances of the water slides and amusement aspects of the commercial park. Mr. Newsome noted the specific architecture of the facilities would be developed in Council Member Hume requested clarification on the annual management fees, and the plan of finance sources and uses as to whether the developer equity of $10 million and Jeroen Gerrese, President of P3 International, stated $10 million had been preliminarily identified, making efforts to go to $14 million. Progression through phase one of the project, which dictated the secured financing plan, would provide time to identify other sources and discuss the project with equity partners. Current projections of the current revenue stream would see the project as infeasible if costs went beyond $40 million. The annual management fees would be paid to the operator who would handle both the  $695,739  future phases of the project.  debt financing of $14 million had been secured.  Elk Grove City Council Regular Meeting, October 9,2013 Page 9 of16    aquatic center and the water and adventure park, and through further design and operational discussion during this initial phase a goal would be to price out a more accurate management fee assumption, hopefully lower than that currently contemplated. Mr. Geresse noted the operator held concerns over operation of the aquatic center, the identified losing component in the project, and recognized the significant difference between losing $200,000 to $450,000 annually, stating the conceptual plan presented an average the operator felt comfortable with at this stage for Ms. Craig listed the phase one consultant tasks and deliverables under the proposed contract that included a schematic design based from the conceptual design previewed earlier, a project development budget, an operations feasibility study conducted by an independent firm, and a financial modeling of the equity and debt scenarios. The contract did not promise any subsequent phases, but in this phase the consultant would be identifying available financial resources for the City to determine if it's willing to Council Member Hume inquired about the potential $13 million contemplated in bonded debt obligations, and whether that would be borne by the City or the project team. Ms. Craig stated the City would need to be the issuer of the bonds as the owner of the land and facilities, but the intent was for operating revenues to pass through and make the debt payments, ultimately the City as issuer would be responsible if the revenues were not sufficient as contemplated. The bonds would not be funds from the currently proposed initial City capital fund sources, they would be in addition to those funds, such  the operating cost.  proceed with the next step of financing and constructing the project.  as generally pooled obligation bonds. PUBLIC COMMENT:  Lynn Wheat disagreed with having the City obligated through a bond issuance for this project. She raised concern whether the City owned the property outright, as during a scoping session it was noted there were some liens on the property. She felt it was a conflict of interest for the same consultant group to propose a project and also conduct the feasibility study. She believed the initial discussion of the project for delivery at the Civic Center was for an Olympic, competition pool, but not a commercial water park. Ms. Wheat did not believe such a water park was what new residents to Laguna Ridge would want to pay for, nor to have the park located immediately adjacent to residential Mike Monasky raised concern about the contract award process, noting there was only a single bidder for the project. He questioned the background of P3 International and the hourly rates being charged. Mr. Monasky believed the project should be managed between the City and the Cosumnes Community Services District (CCSD), and reevaluated by both agencies to deliver a feasible, appropriately scaled project. Ms. Craig stated the land had been cleared of all liens and accepted by the City since the public outreach meeting mentioned by Ms. Wheat. She noted the CCSD was working with the City, and assisted in developing the project scope, served on the review team, and had actively participated on the scope and design to date.  homes.  Elk Grove City Council Regular Meeting. October 9, 2013 Page 10 of16    Phil Hollenback, speaking as a supporter of local swim programs, voiced support for a financially feasible aquatic center project, raising concern that there was only one proposal submitted. He believed additional parking would be needed to serve weekend crowds attending the competition facilities and the commercial park facilities. Mayor Davis noted the process to date sought proposal teams that would invest private equity into the project, and to date other teams had shown interest but were not able to assume such risk and move forward, with the current proposal from P3 International Brenda Smart supported addition of pools for the community, noting the deficit of appropriate water facilities for school team sports, competitive clubs, and recreational swim uses. She believed additional facilities would fuel continued demand, and fees for Vice Mayor Detrick stated the component of the amusement park was to generate revenues to offset the projected annual operational loss of the competition facility, which to date annual operational estimates have ranged from $150,000 to $1 million. He believed the Elk Grove Unified School District (EGUSD) had been derelict in their responsibility to provide swim facilities, and expressed disappointment that there had been no interest by the EGUSD to commit any capital investment in the Aquatic Center. Mr. Detrick expressed his preference that the competition facility be a standalone facility, and that the amusement park element would be a better option elsewhere in the Council Member Cooper believed the project was feasible if it could be made cost neutral, but noted the conceptual business plan had an initial annual operational loss of $432,000, rising to $527,000, and the City could not sustain such a facility at a deficit. He observed there were no site attractions south of the American River, and a commercial facility could generate a lot of revenue, but it would need to be sufficient Council Member Hume preferred a financing scenario of a General Fund annual subsidy under $150,000 for operations of a facility, and disagreed with $13 million in general obligation bonds creating half million dollar debt service to cover operational costs. He supported the phase one effort to garner more information to assist in evaluating delivery of the project. He noted that if the City did proceed with the water park, to consider placing the vertical components farther west on the project site, and place the less intensive uses to the east by the neighboring residences. He agreed that the parking assumptions seemed low for accommodating both the competition and commercial components. Mr. Hume suggested the City conduct further research on actual operating costs and annual subsidies of other facilities, including the unique venue of a diving platform, and the revenue from hosting tournament events. Ms. Craig confirmed that on the northern property of the Civic Center site a parking structure was expected when future facilities were provided. In the interim for the Aquatics Center, off-site parking at Cosmunes Oaks High School, with some form of  remaining.  use and competition events would sustain annual operational costs.  City, but not at the Civic Center site.  enough to cover the competition facility operational loss.  transportation Ishuttle, was considered to accommodate needs.  Elk Grove City Council Regular Meeting, October 9,2013 Page 11 of16    Mayor Davis noted his desire to see the competitive facilities delivered, but not at the cost of an infeasible financial plan or compromised design and architecture. Motion: M/S Davis/Trigg to adopt Resolution No. 2013-195 authorizing the City Manager to execute the Phase I professional services contract with P3 International for the Elk Grove Aquatics Center in the amount of $695,739. The motion passed by the Agenda Item No. 10.3: Receive and File the 2013 City of Elk Grove Pavement Quality  following vote: Ayes: 5; Noes: 0; Absent: 0. Report and Provide Direction on Policy Items  RECOMMENDATION:  Staff recommends the City Council receive the 2013 City of Elk Grove Pavement With the aid of an overhead presentation (filed), Richard Shepard, Public Works Director, presented an overview of the staff report and recommendation. The City road network comprised approximately 1,384 lane miles. Road conditions were assessed following uniform inspection standards created by the Army Corps of Engineers, with key data components for pavement management relying on deterioration rates as related to current condition and forecasting conditions if specific repair / refurbishment actions were taken (with timely surface treatments much less costly compared to full reconstruction costs). The County engineers and League of California Cities have cosponsored a report on the condition of agency and local streets within California, presenting the matter to the Legislature over the last three years to bring attention to the infrastructure quality of local streets. The City's street maintenance funding was generated from a variety of revenue sources, comprised of the following components: $2.4 million from street maintenance zones, $3 million from Measure A taxes used for maintenance, and $1.8 million from gas tax for resurfacing projects - totalling $7.2 million. On an annual basis the City spent $3.2 million to perform routine maintenance, leaving $4 million for the surface treatment program. The Pavement Management System estimated that to maintain the City street network at an average condition of 70%, the program would require $12 million annually, an $8 million shortfall. Mr. Shepard displayed citywide street conditions if the surface treatment program remained at the current funding of $4 million, showing over 20 years the average pavement condition of the street network would drop to 42%. To address the shortfall, the City should consider either closing the gap in funding through another revenue source, or change prioritization in how the City street network was maintained. Mr. Shepard detailed that maintenance could be prioritized to particular segments of the street network (between arterial, collector, and local roads), and there was the option to use concrete rather than asphalt. Concrete streets had a higher initial cost, but had lower projected lifecycle and ongoing maintenance costs. Concrete streets reflected more heat, whereas asphalt absorbed more heat, and concrete streets would assist in meeting goals of the City's Climate Action Plan. Mr. Shepard noted that combining concrete with asphalt was not a best approach, and as many arterial and collector streets had already been constructed, concrete may be a good option for residential roads (which also had an average lower lifecycle / maintenance cost compared to  Quality Report and provide direction on related policy items  Elk Grove City Council Regular Meeting. October 9, 2013 Page 12 of16    arterial and collectors roads), but there was also benefit to having concrete intersections (as intersections typically encountered more rapid deterioration due to high traffic flow). Mr. Shepard noted the Sacramento Transportation Authority (STA) was considering a New Measure A tax to add another half cent tax increase specifically for street maintenance, targeting the November 2014 election. The countywide measure would require a two thirds majority of the voting public to pass. Initial analysis of this New Measure A in Elk Grove wouid generate $6.8 million, nearly covering the $8 million shortfall identified. Staff recommended the City Council hold on any actions to close the revenue gap at this time to see if a ballot measure for New Measure A moved forward. Vice Mayor Detrick noted that concrete streets were more difficult and costly to work with when having to access underground systems, and suggested outreach be conducted to regional agencies and utility providers on implementing concrete streets. Council Member Hume questioned if lifecycle costs for concrete were actually lower, noting asphalt streets were easier to work with and that streets of patched concrete were not aesthetically pleasing. He relayed that STA staff felt they only had the funding to pursue the New Measure A tax measure once, and if initial polling did not indicate overwhelming public support for 2014, the matter may be delayed for consideration until 2016. Mr. Hume also noted legislative action was being pursued to reduce the 2/3 majority to a simple majority for specified taxes such as New Measure A.  PUBLIC COMMENT: None.  The City Council provided direction to staff to garner feedback from utility providers and regional agencies on the City's use of concrete for roadways, and to monitor the Sacramento Transportation Authority's progress on the New Measure A tax measure. Agenda Item No. 10.4: Consider adoption of a Resolution of Intention to approve an amendment to the contract between the Board of Administration of the California Employees' Retirement System (CalPERS) and the City Council of the City of Elk Grove and introduce and waive the full reading, by substitution of title only, an ordinance of the City Council of Elk Grove to amend the contract between the City of Elk Grove and  CalPERS  RECOMMENDATION:  1) Adopt resolution of intention giving notice of the City's intention to amend the contract between the City Council of the City of Elk Grove and the Board of Administration of the California Public Employees' Retirement System as allowed in Section 20516 of the Public Employees' Retirement Law (Employees Sharing Additional Cost) of 3% for all local police members in the Police Managers 2) Introduce and waive the full reading, by substitution of title only, an ordinance authorizing an amendment to the contract between the City Council of the City of Elk Grove and the Board of Administration of the California Public Employees'  Association; and  Retirement System.  Elk Grove City Council Regular Meeting, October 9, 2013 Page 130f16    Laura Brunson, Human Resources Director, presented an overview of the staff report and recommendation. The City entered into a memorandum of understanding with the Police Manager's Association (PMA) with a provision that members of this association would start paying 3% of the City's contribution toward the cost of retirement benefits. Ms. Brunson clarified all City employees currently paid 100% of the employee contributions to their benefits, the PMA had agreed to pay 3% of the employer's  contribution in addition to what they were already paying.  PUBLIC COMMENT: None.  Motion #1: M/S Hume/Detrick to adopt Resolution No. 2013-196, a Resolution of Intention giving notice of the City's intention to amend the contract between the City Council of the City of Elk Grove and the Board of Administration of the California Public Employees' Retirement System as allowed in Section 20516 of the Public Employees' Retirement Law (Employees Sharing Additional Cost) of 3% for all local police members in the Police Managers Association. The motion passed by the following vote: Motion #2: M/S Hume/Detrick to introduce and waive the full reading, by substitution of title only, Ordinance No. 20-2013 authorizing an amendment to the contract between the City Council of the City of Elk Grove and the Board of Administration of the California Public Employees' Retirement System. The motion passed by the Agenda Item No. 10.5: Consider a resolution adopting a Collections, Finance Charge and Write-off Policy to provide parameters and guidelines for collecting fees, charges, and other amounts owed to the City and administering the write-off of uncollectible  Ayes: 5; Noes: 0; Absent: 0.  following vote: Ayes: 5; Noes: 0; Absent: 0.  accounts  RECOMMENDATION:  Adopt resolution approving the Collections, Finance Charge and Write-off Policy. With the aid of an overhead presentation (filed), Andrew Keys, Accounting Manager,  presented an overview of the staff report and recommendation.  PUBLIC COMMENT: None.  Motion: M/S Hume/Detrick to adopt Resolution No. 2013-197 approving the Collections, Finance Charge and Write-off Policy. The motion passed by the Agenda Item No. 10.6: Introduce and waive the full reading by substitution of title only an ordinance amending Elk Grove Municipal Code Chapter 3.42 Concerning Contracts  following vote: Ayes: 5; Noes: 0; Absent: 0.  and Purchasing RECOMMENDATION:  Elk Grove City Council Regular Meeting, October 9. 2013 Page 14 of16    Introduce and waive the full reading, by substitution of title only, of an ordinance amending Elk Grove Municipal Code Chapter 3.42 concerning contracts and With the aid of an overhead presentation (filed), Jonathan Hobbs, City Attorney presented an overview of the staff report and recommendation. Mr. Hobbs reviewed administrative changes including: authority to execute internships and annual membership dues based on budgeted authority, revising the definition of local vendor to provide the vendor must show that they've been contributing sales tax for one year to qualify for the local vendor preference for a submittal, placing a cap of $50,000 on the 5% local vendor preference, clarification of the City's right to require product and service demonstrations, added inclusion of the City's use of online reverse auctions, placed City Manager authority for acquisition, leases, and disposition of real property in line with the City Manager's $50,000 contract authority, addressed surplus property for Police Department permitting canine handler staff to purchase retired police canines and for retiring officers to purchase their duty weapon (in both instances the purchaser would sign a release holding the City harmless), and delineating that property lawfully seized by law enforcement would be processed for surplus through the Criminal Justice Department. He noted the most fundamental changes entailed changing the definition of General Services to include both goods and services, giving the City the options to select bidders found to be the best value (purchasing of purely commodities and equipment would still be subject to a low bid), and updated provisions throughout the code to permit the Council or City Manager to dispense with proposals at any stage in the process when providing an explanation for best interest. Mr. Hobbs noted the current ordinance was interpreted by the courts that the dispensing of bidding had to Council Member Hume observed the City has had a provision to allow best value, but the issue was more about timing in that the current code mandated that best value be determined at the beginning of a bid or request for proposal process. He felt the ability for the City to dispense with a bidding process at any point could discourage bidder participation, and believed if the changes were adopted to consider doing sO on a trial  purchasing.  take place at the very outset of the process.  basis to see the effect on bidders to City proposals.  PUBLIC COMMENT:  Lynn Wheat believed the ability to dispense with the bidding process at any point was Mike Monasky opposed exceptions that allowed dispensing with the bidding process. He believed the transparency and cost driving of open bidding would be lost, and such authority gave unfair advantage to the City in the process of selecting and awarding a proposal. Mr. Monasky believed there should be increased effort to utilize local businesses, and disagreed with the one year tax revenue requirement to qualify for the Council Member Hume was in support of having best value consideration for all proposals and bids, with best value criteria better outlined and defined sO vendors know  too arbitrary and would discourage participation by businesses.  local vendor preference.  Elk Grove City Council Regular Meeting, October 9, 2013 Page 15of16    at the outset what they are being evaluated on. He believed the ability to dispense with the process at any point, and making determinations of best interest, was too broad. Mr. Hobbs noted that the criteria for any given request for proposal or bid was often different under each circumstance, and a compilation listing could be made but likely would not capture every instance for a possible determination for an exception. He noted that when the City did invoke use of an exception that reasoning would need to be explained through the transparent process of open meeting laws, and he did not Motion: M/S Detrick/Hume to introduce and waive the full reading, by substitution of title only, Ordinance No. 21-2013 amending Elk Grove Municipal Code Chapter 3.42 concerning contracts and purchasing as amended to include a sunset clause of one year and to revert as previously written if not reviewed and amended. The motion Agenda Item No. 10.7: Appointment of one member to the Disability Advisory  anticipate that best interest exceptions would be utilized often.  passed by the following vote: Ayes: 5; Noes: 0; Absent: 0.  Committee  RECOMMENDATION: Disability Advisory Committee The verbal staff report was waived. PUBLIC COMMENT: None  Receive information from Mayor Davis regarding appointment of one member to the  Mayor Davis appointed Karen Grussenmeyer to the Disability Advisory Committee.  ADJOURNMENT  With no additional business to conduct, the October 9, 2013 regular City Council  meeting was adjourned at 10:01 p.m.  JASON LINDGRENNCHY Rr  ATTEST:  GARY  1 DAVISMAYOR  Elk Grove City Council Regular Meeting, October 9, 2013 Page 16of16