CITY OF ELK GROVE Incorporated July 1, 2000  MINUTES OF THE CITY COUNCIL  REGULAR MEETING Wednesday, June 26, 2013  CALL TO ORDER/ROLL CALL  Vice Mayor Detrick called the regular City Council meeting of June 26, 2013 to order at  6:07 p.m. Present: Absent:  Vice Mayor Detrick and Council Members Cooper, Hume and Trigg.  Mayor Davis (arrived at 6:45 p.m.).  Council Member Hume led the Pledge of Allegiance.  Vice Mayor Detrick asked that a moment of silence be observed.  APPROVAL OF AGENDA  Motion: M/S Cooper/Hume to approve the agenda as presented. The motion  passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Davis).  CLOSED SESSION None.  PRESENTATIONSIANNOUNCEMENIS  4.1 Vice Mayor Detrick presented awards for the 2013 May is Bike Month event Sharon Anderson congratulated the award recipients, and introduced the group Elk Grove Trails Advocates which promoted bike riding and trail connectivity in Elk Grove.  activities to Rob Pucchi and Daniel Yoder.  PUBLIC COMMENT  Greg Smith, Regional Vice President with the Ray Morgan Company, submitted remarks (filed) believing Ray Morgan Company should have been awarded the contract for the lease and maintenance of multi-function copiers and laser printers considered during the May 8, 2013 regular meeting. He felt the current language regarding the award of contracts under the municipal code did not provide for proper evaluation of technology, with acquisition primarily being price driven. He believed the newly released request for proposals merely attempted to remove consideration of the technology from the process. Mr. Smith requested the original contract and specifications be utilized and awarded to Ray Morgan Company, or as an alternative that the City consider a utilizing the cooperative purchasing agreement between the Ray  Morgan Company and the University of California.  Elk Grove City Council Regular Meeting, June 26, 2013 Page1of9    Rob Grossglauser requested support for sidewalk infill projects to provide connectivity, specifically citing an area in his neighborhood for the sidewalk to be completed to connect West Camden Drive and Bond Road along Elk Grove-Florin Road. Vice Mayor Detrick agreed such infill projects should be evaluated in more detail, noting inr many instances there was a reliance on development to provide sidewalks, and in areas not fully developed it created areas lacking continuous sidewalk connectivity. He noted some areas may prove more difficult to add sidewalk connections depending on where the public right-of-way existed, or if land would have to be acquired from private Public Works Director Richard Shepard noted the requested project area was not identified in the Capital Improvement Program (CIP). Annually the CIP was evaluated toi identify all potential infill projects, which were then reviewed by the Disability Advisory Committee for prioritization. The next programming cycle commenced at the start of the new year, and this project would be included in the project candidate list. Dave Spease, speaking on behalf of the Laguna Sunrise Rotary - Interact Club, invited the community to the club's vegetable garden at 9666 Sheldon Road on the corner of  owners.  Sheldon Road and Bradshaw Road.  GENERAL ADMINISTRATION INFORMATION  City Manager Laura Gill reviewed the June 26, 2013 Administrative Report (filed). COUNCIL COMMENTS/REPOREPORTS/FUTURE AGENDA ITEMS Council Member Cooper stated he had no items to report.  Council Member Trigg attended the Sacramento Public Library Authority Summer Lunch Program kickoff event, noting the library in conjunction with the Elk Grove Unified School District would be offering free daily lunches Tuesday through Friday at the Valley High North Laguna Library throughout the summer. Mr. Trigg stated the Elk Grove Scholarship Foundation would be holding its annual fundraiser Spotlight Elk Grove on Council Member Hume stated he had no items to report from regional meetings he had attended. He expressed thanks to City staff for the rapid response to an issue with dirt and cement being collected and stored on a property causing dust issues. Vice Mayor Detrick requested future consideration to identify and address small project  September 12, 2013.  sidewalk infill around the City. CONSENT CALENDAR ITEMS PUBLIC COMMENT None.  Elk Grove City Council Regular Meeting, June: 26, 2013 Page2of9    Motion: M/S Hume/Cooper to approve the Consent Calendar as presented. The motion passed by the following vote: Ayes: 4; Noes: 0; Absent: 1 (Davis). Agenda Item No.8.1: Received May 2013 Treasurer's Report.  Agenda Item No. 8.2: Received Automatic Clearing House Nos. 6989 through 7173 dated May 1, 2013 through May 31, 2013, General Warrant Nos. 72553 through 72973, Agenda Item No. 8.3: Approved City Council Meeting Minutes: 1) April 24, 2013 special meeting; 2) May 8, 2013 special meeting; and 3) May 22, 2013 special meeting Agenda Item No. 8.4: Received report on City Manager approved purchases and contracts authorized by Elk Grove Municipal Code Chapter 3.42 Contracts and Agenda Item No. 8.5: Received report on Requests for Proposals, Qualifications, and Agenda Item No. 8.6: Ordinance No. 9-2013 adopted levying and apportioning the special tax in territory annexed to Community Facilities District No. 2006-1 (Maintenance Services) (Annexation No. 24) and amending Elk Grove Municipal Code Agenda Item No. 8.7: Ordinance No. 10-2013 adopted levying and apportioning the special tax in territory annexed to Community Facilities District No. 2003-2 (Police Services) (Annexation No. 23) and amending Elk Grove Municipal Code Section  and Electronic Fund Transfer Nos. 2013182 through 2013197  Purchasing, filed through June 19, 2013  Bids  Section 3.19.010 (Second Reading)  3.18.010 (Second Reading)  Agenda Item No. 8.8: Received the 2012 Annual Growth Report  Agenda Item No. 8.9: Resolution No. 2013-116 adopted authorizing the City Manager to execute the Subrecipient Agreement with the Sacramento Area Council of Governments (SACOG) and submit for allocation for the Rolling Stock Rehabilitation of Agenda Item No. 8.10: Resolution No. 2013-117 adopted approving the Fiscal Year 2013-14 Transportation Development Act (TDA) Claim and authorizing submission by the City Manager to the Sacramento Area Council of Governments (SACOG) for Local Agenda Item No. 8.11: Resolution No. 2013-118 adopted authorizing the City Manager to execute a contract amendment with Willdan Engineering for Public Works Services exercising a one-year extension option, adding federal regulatory requirements, creating a fixed compensation fee for reviewing development applications, providing for additional staff classifications, and other contract revisions Agenda Item No. 8.12: Resolution No. 2013-119 adopted accepting the Emergency Operations Center - Traffic, CCTV Traffic Monitoring Camera Installation Project  12 Georgia Regional Transit Administration (GRTA) buses  Transportation Funds (LTF) and State Transit Assistance Funds (STA)  Elk Grove City Council Regular Meeting, June: 26, 2013 Page3of9    (EOC002) as complete and authorizing the City Engineer to prepare and the City Clerk Agenda Item No. 8.13: Resolution No. 2013-120 adopted finding that no further environmental review is required for the Waterman Road Culvert Replacement Project Near Elk Grove Boulevard and Hudson Ranch (WDR008/ WDR009); authorizing the City Manager to execute a construction contract with F. Loduca Company in the amount of $237,993; authorizing the City Engineer to approve change orders not-to-exceed $35,882; and authorizing the City Manager to execute a construction contract with the second lowest bidder if the first lowest bidder does not meet filing obligations; and amending the Fiscal Year (FY).2012-13 Budget and FY 2012-17 Capital Improvement Agenda Item No. 8.14: Resolution No. 2013-121 adopted authorizing the City Manager to submit a grant application to the Department of Resources Recycling and Recovery (CalRecycle) for a Local Government Household Hazardous Waste 21st  to file the Notice of Completion with the Sacramento County Recorder  Program by $22,800  Cycle Grant PUBLIC HEARINGS None.  REGULAR AGENDA ACTION TEMS/REÇOMMENDATIONS  Note: City Manager Gill requested item 10.2 be heard as the first regular agenda action Agenda Item No. 10.2: Consider the draft 2013-2021 Housing Element programs and provide direction to submit the Housing Element to the State Department of Housing  item.  and Community Development for review  RECOMMENDATION: and  1) Review the draft programs for inclusion in the draft 2013-2021 Housing Element; 2) Direct staff to submit the draft 2013-2021 Housing Element to the State Department of Housing and Community Development (HCD) for review and With the aid of an overhead presentation (filed), Sarah Bontrager, Housing Program Manager, presented an overview of the staff report. She reviewed the City's Housing Element update progress, noting the item tonight was review of demographics, policies, and programs, and that the housing sites analysis would return at a future date. The Sacramento Area Council of Governments (SACOG) developed the Regional Housing Needs Allocation (RHNA) plan designating a certain number of affordable housing units to be offered by each jurisdiction in the region, which allocated 7,400 units to the City, with 3,500 of those units in the very low and low income categories, and the remainder  comment.  ini the moderate category.  Elk Grove City Council Regular Meeting, June 26, 2013 Page 4of9    Vice Mayor Detrick inquired if the RHNA gave consideration for affordable housing projects in the immediate vicinity of a jurisdiction's borders, noting the northern border of the City in areas of Sacramento County had several high density housing projects.  Note: Mayor Davis arrived at 6:45p.m.  Ms. Bontrager noted the number of total units allocated was based entirely on projected new units, not on units already constructed. The SACOG methodology was based largely on the projections for the next eight years, using projections associated with SACOG's Metropolitan Transportation Plan, with a regional equity factor targeting that all jurisdictions would have an equivalent percentage of affordable homes by the target year 2050. In terms of RHNA for Elk Grove, there was enough land zoned currently to meet moderate and above moderate income needs, but significant rezoning would be required to meet very low and low income housing needs. The specific sites to rezone would not return for City Council review until early 2014 after community outreach and Council Member Cooper emphasized the importance to conduct extensive outreach to Ms. Bontrager reviewed outreach conducted to date, and revisions proposed for the Housing Element. She noted two new programs were proposed for inclusion in the Housing Element of a Universal Design Ordinance and a Rental Housing Inspection Program, and if approved would be included as a commitment to consider the programs  review by the Planning Commission had been completed.  the citizenry when reviewing potential sites for affordable housing.  sometime within the next eight years.  PUBLIC COMMENT:  Tamie Dramer, representing the Sacramento Housing Alliance, raised concern that the RHNA sites should be identified and thoroughly analyzed before submitting the draft Housing Element and felt it was not appropriate to submit the draft prior to review of the sites. Ms. Dramer voiced support for the Universal Design Ordinance and a Rental Housing Inspection Program, noting the City of Sacramento had implemented a universal design ordinance, and both the City and County of Sacramento had successful rental housing inspection programs that were self-sustaining and being John Foley, representing Sacramento Self Help Housing, stated that Elk Grove lacked an inventory of inexpensive rental options, and appreciated the inclusion of deeply affordable units in the draft plan. Mr. Foley supported the Universal Design Ordinance and believed it was preferred to get a Rental Housing Inspection Program in place now before the general age of the housing stock started displaying more issues. The City Council approved inclusion to consider the Universal Design Program and the Rental Inspection Program and directed staff to submit the draft 2013-2021 Housing Element to the State Department of Housing and Community Development (HCD) for  considered for expansion.  review and comment.  Elk Grove City Council Regular Meeting, June 26, 2013 Page 50f9    Agenda Item No. 10.1: Consider resolution approving a conditional loan commitment of $2 million for the proposed Avery Gardens Apartments affordable housing project Adopt resolution approving a conditional loan commitment of $2 million from the City's Affordable Housing Fund and/or Very Low Income Housing Trust Fund fori the proposed Avery Gardens affordable housing project by Pacific West Communities, Inc. With the aid of an overhead presentation (filed), Sarah Bontrager, Housing Program Manager, presented an overview of the staff report. Ms. Bontrager reviewed the Avery Gardens affordable housing project proposed by Pacific West Communities, Inc., a 64- unit family apartment complex proposed to be located north of the intersection of Elk Grove Boulevard and Backer Ranch Road (adjacent to the Carlton Plaza senior living complex). Ms. Bontrager noted action was taken by the City Council at the June 26, 2013 meeting to bypass a recommendation by the Affordable Housing Loan Committee, and bring the loan term sheet for City Council review to consider a conditional commitment prior to the tax credit hearing deadline of July 3 for the Project. She reviewed the items that were missing from a typical loan application under the standard loan guidelines of the City, and offered staff and the project applicant could review  RECOMMENDATION:  requests of the terms of the loan commitment with the City Council.  PUBLIC COMMENT:  Brian Cooley, speaking on behalf of the Avery Gardens Project, noted the project differed from prior City projects that sought 4% tax credits for financing, and this project would be applying for the 9% tax credit which placed different requirements on aspects of loan terms, and construction and operational requirements. The project would be providing a deeper targeting to provide housing for lower income individuals, held a lower per unit subsidy than past projects, and the location was ideal being close to several amenities. He emphasized the importance to have the project submitted by the next tax credit allocation hearing of July 3, 2013 to remain competitive in the tax credit application process, and to expedite construction for the project as the region was seeing increasing construction costs. Mr. Cooley requested consideration to display an City Clerk Lindgren noted the overhead presentation item had been submitted by Mr. Cooley as a supplemental item and was available for viewing, but was not submitted by the 72-hour administrative deadline for use of City video equipment at public By consensus the City Council directed the overhead presentation could be utilized, and directed staff to review procedures for meeting material submittals and consider adding outreach to applicants on required timelines for submittals for use of City video With the aid of an overhead presentation (filed), Caleb Roope, President and Chief Executive Officer of The Pacific Companies, provided an overview of company, assets, financing sources utilized, and team supporting the Avery Gardens Project. He stated the requested City funds would come in after the project was built and would not be  overhead presentation as provided by the project applicant.  meetings.  equipment at public meetings.  Elk Grove City Council Regular Meeting, June 26, 2013 Page 6of9    utilized for construction. He noted the City subsidy per unit was low, primarily due to the tax credits sought, the low purchase price of the land, and deeper affordability of the units. For the tax credit financing sought, there would be additional requirements in construction, and requirements on how local funding was credited and scored under the program, precluding practices of cost savings provisions since any cost savings for a project would equally reduce the initial tax credit request. Mr. Roope submitted a letter (filed) from Wells Fargo Bank addressing the credit worthiness of his organization. He cited that from his experience terms were being placed on this loan that he had never seen from any other local government he had done business with. The construction and development costs were within standard costs and containment limits established by the tax credit agency, and noted the project was designed with improved finishes to reduce long term maintenance issues. Mr. Roope addressed City Council concerns that the developer fee could not increase once the application was submitted, and that the staff reported value of $1.9 million referred to the restricted value, but the tax credit that ran with the property held a value of $11 million (that would decrease over time as the In reply to Council Member Hume, Ms. Bontrager noted the deed restriction on the property was for 55 years, and that restriction could possibly be lifted if the property The City Council reviewed requests of the terms of the loan commitment with staff and  tax credits were utilized).  went through a foreclosure proceeding. the applicant, coming to terms as follows:  The timing of funding would be at the developer proposed 80% at the Certificate of Occupancy, 10% at cost certification, and 10% at project stabilization; Annual loan payments would be a flat amount of $5,000 for the first 15 years of the loan, and commencing in year 16 moving forward the payment would be equal to half of Residual Cash Flow or the fixed payment that increased the flat amount by $5,000 every five years, whichever amount was lower provided that the annual payment was no lower than the minimum of the previous year's Ac corporate or personal guarantee would be requested by the City from Pacific Competitive bidding would be required at the subcontractor level, but not at the Change orders of $75,000 or more would require City approval, with the provision that a change order would be deemed approved if no response from the City was received by the applicant within 10 business days after submittal; Bonding would not be required under the assumption that the City would not be The developer fee would remain as was proposed by the developer; The loan commitment by the City would terminate if the project was denied a tax credit award after three consecutive application allocation cycles.  step /figure;  West Communities, Inc. unless prohibited by law;  general contractor level;  There would be no cost savings provision; providing any funding during the construction phase;  Motion: M/S Hume/Trigg to adopt Resolution No. 2013-122 approving a conditional loan commitment of $2 million from the City's Affordable Housing Fund and/or Very Low Income Housing Trust Fund for the proposed Avery Gardens affordable housing project  Elk Grove City Council Regular Meeting, June 26, 2013 Page7of9    by Pacific West Communities, Inc. as modified per changes made to the term sheet. Note: Item 10.2 was heard as the first item of the Regular Agenda Action Items. AgendlemNe-102 Coneider-the-dra29132021-HousingEiomentprograms-and provide-direction-tono-submitthe-Housing-Element-to- sweeymday Agenda Item No. 10.3: Policy discussion of the Materials Reuse Room and Recycling  The motion passed by the following vote: Ayes: 5; Noes: 0.  C-yA-yw  Center located at the Special Waste Collection Center  RECOMMENDATION:  Staff seeks guidance from the City Council in the operating guidelines of the Materials Reuse Room and Recycle Center at the City of Elk Grove's Special Waste Collection With the aid of an overhead presentation (filed), Traci Goulart, Residential Coordinator, presented an overview of the staff report. Ms. Goulart reviewed operations and materials accepted at the future Materials Reuse Room and Recycle Center, and reviewed suggested operating guidelines. Suggested rules for the Materials Reuse Room would limit use to Elk Grove residents only, Elk Grove residents could take products free of charge, but would be limited to 10 items per calendar month per household. Suggested rules for the Recycle Center would include no fee at time of drop off for Elk Grove residents and residents of regional jurisdictions that have an established Memorandum of Understanding with the City, and for Elk Grove residents green waste would be accepted from November 1 to February 28. Ms. Goulart clarified the facilities were not a California redemption area and would not pay cash for  Center.  recyclables, and no general trash would be taken for disposal.  PUBLIC COMMENT: None.  Motion: M/S Hume/Cooper providing direction to implement the staff suggested operating guidelines of the Materials Reuse Room and Recycle Center at the City of Elk Grove's Special Waste Collection Center. The motion passed by the following vote: Agenda Item No. 10.4: Consider resolution revising the "City of Elk Grove City Council Norms and Procedures Manual" to implement a Key to the City Program  Ayes: 5; Noes: 0.  RECOMMENDATION:  Adopt resolution revising the "City of Elk Grove City Council Norms and Procedures Manual" to include guidelines for implementing a Key to the City Program, as well as Laura Gill, City Manager, presented an overview of the staff report and  minor language clarification to two sections.  recommendation.  Elk Grove City Council Regular Meeting, June 26, 2013 Page 8of9    PUBLIC COMMENT: None.  Staff noted mayoral approval as a preference to full City Council concurrence for the Key to the City Program in light of issues of timing; if items were required to go before the City Council for approval it would have to be processed in advance on agenda Mayor Davis believed the list included under the Key to the City Program provided a basis for what would automatically qualify, and offered if there was a new request that did not fit those guidelines that consideration of such recognition could be reviewed by Council Member Hume did not believe a Key to the City Program needed to be codified. Motion: M/S Detrick/Davis to adopt Resolution No. 2013-123 revising the "City of Elk Grove City Council Norms and Procedures Manual" to include guidelines for implementing a Key to the City Program, as well as minor language clarification to two sections. The motion passed by the following vote: Ayes: 4; Noes: 1 (Hume).  preparation timelines, or would require calling a special meeting.  the full City Council.  ADJOURNMENT  With no additional business to conduct, the June 26, 2013 regular City Council meeting  was adjourned at 9:13 p.m.  JASON  NTCN  LINDGREKCTYCIERK  ATTEST:  GARY DAVIS,  24  Elk Grove City Council Regular Meeting, June 26, 2013 Page 9of9